Question 1

Lacey Springs Apple Co.buys fresh apples in truckload quantities,regroups the heterogeneous commodities into homogeneous lots according to grade and quality,and then sells them to retailers.This regrouping activity is called

Accepted Answer

A) accumulating. 
B) bulk-breaking. 
C) sorting. 
D) wholesaling. 
E) assorting.

Question 2

In Europe,auto manufacturers are required by law to allow owners of their brands to give the cars back to the manufacturers at the end of their useful life.The manufacturers must then recycle and reuse at least 85 percent of any vehicle made after 2004.This is an example of a(n)

Accepted Answer

A) integration law. 
B) horizontal law. 
C) contractual law. 
D) vertical law. 
E) "take back" law.

Question 3

An indirect channel is probably a better choice than a direct channel if a producer wants to

Accepted Answer

A) provide special technical service. 
B) make it easier to do marketing research. 
C) be more sensitive to coming changes in customer needs and attitudes. 
D) obtain a very aggressive selling effort. 
E) adjust large discrepancies of quantity and assortment.

Question 4

Traditional channels of distribution

Accepted Answer

A) do not perform bulk-breaking activities. 
B) are usually preferred to other distribution arrangements. 
C) are more easily controlled than corporate channel systems. 
D) may involve little or no cooperation among channel members. 
E) are usually controlled through strong legal contracts.

Question 5

Which of the following is a function that an intermediary is likely to provide for customers?

Accepted Answer

A) reducing inventory costs 
B) regrouping products 
C) providing delivery 
D) granting credit 
E) All these answers are correct.

Question 6

Discrepancy of quantity is

Accepted Answer

A) the difference between the lines a typical producer makes and the assortment final consumers or users want. 
B) adjusting the quantities of products handled at each level in a channel of distribution. 
C) collecting products from many small producers. 
D) the difference between the quantities of products that it is economical for a producer to make and the quantity final users or consumers normally want. 
E) usually seen with producers who specialize by product.

Question 7

Assorting activities involve putting together a variety of products to give a target market what it wants.

Accepted Answer

A) True 
 B)False

Question 8

A ________ is a manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.

Accepted Answer

A) channel executive 
B) channel captain 
C) distribution manager 
D) channel coordinator 
E) distribution leader

Question 9

In traditional channel systems,the channel members

Accepted Answer

A) consider traditional values-like cooperation and respect-as central to their relationship. 
B) have franchise contracts. 
C) usually have a common product-market commitment. 
D) make little or no effort to cooperate with each other. 
E) are integrated.

Question 10

The lowest-cost and lowest-risk way to enter a foreign market is through

Accepted Answer

A) a joint venture. 
B) licensing. 
C) management contracting. 
D) direct investment. 
E) exporting.

Question 11

Strategy decisions concerning Place would NOT include

Accepted Answer

A) type of physical distribution facilities. 
B) type of channel of distribution. 
C) degree of market exposure desired. 
D) distribution customer service level. 
E) how to train wholesalers' salespeople.

Question 12

Which of the following is typically the lowest-risk approach for moving into international markets?

Accepted Answer

A) licensing 
B) exporting 
C) joint venturing 
D) direct investment 
E) management contracting

Question 13

Specialists are often involved in how they come together to form a channel of distribution.

Accepted Answer

A) True 
 B)False

Question 14

Rizzo Shoes has informal agreements with its wholesalers and retailers,and they cooperate pretty well by placing orders and sharing inventory and sales information over a computer network.Rizzo Shoes sells through a(n)________ channel system.

Accepted Answer

A) contractual 
B) traditional 
C) power leadership 
D) corporate 
E) administered

Question 15

Intermediaries in indirect channels of distribution

Accepted Answer

A) often perform functions that producers cannot perform efficiently by themselves. 
B) do not provide additional convenience to consumers. 
C) increase the need for producers to make large investments in distribution facilities and personnel. 
D) make it necessary for producers to carry more inventory. 
E) None of these answers is correct.

Question 16

Distribution costs can be very low for digital products because there is often no physical good to distribute.

Accepted Answer

A) True 
 B)False

Question 17

Direct investment in a foreign market involves the biggest commitment and the biggest risk.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following best illustrates adjusting discrepancies of assortment?

Accepted Answer

A) General Motors makes Hummer for one product-market and Chevrolet for another product-market. 
B) A hardware store sells all the hardware items wanted by most people. 
C) Over 310 million U.S.consumers are served by approximately 330,000 manufacturers. 
D) RCA sold more than 2,000,000 TVs last year. 
E) Three firms produce over 60 percent of all the DVD players sold in the United States.

Question 19

Traditional channel systems

Accepted Answer

A) are characterized by strong ties between channel members. 
B) exhibit little cooperation between channel members. 
C) have channel members that look out for each other's best interest. 
D) have members that go to great lengths to cooperate with each other. 
E) usually feature a strong product-market commitment that is shared by all the members of the channel.

Question 20

Intensive distribution means selling through

Accepted Answer

A) only one channel of distribution. 
B) all responsible and suitable retailers or wholesalers. 
C) only one intermediary in a particular geographic area. 
D) only those intermediaries that give the product special attention. 
E) all retail outlets.

Exam 10: Place and Development of Channel Systems

Lacey Springs Apple Co.buys fresh apples in truckload quantities,regroups the heterogeneous commodities into homogeneous lots according to grade and quality,and then sells them to retailers.This regrouping activity is called

In Europe,auto manufacturers are required by law to allow owners of their brands to give the cars back to the manufacturers at the end of their useful life.The manufacturers must then recycle and reuse at least 85 percent of any vehicle made after 2004.This is an example of a(n)

An indirect channel is probably a better choice than a direct channel if a producer wants to

Traditional channels of distribution

Which of the following is a function that an intermediary is likely to provide for customers?

Discrepancy of quantity is

Assorting activities involve putting together a variety of products to give a target market what it wants.

A ________ is a manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.

In traditional channel systems,the channel members

The lowest-cost and lowest-risk way to enter a foreign market is through

Strategy decisions concerning Place would NOT include

Which of the following is typically the lowest-risk approach for moving into international markets?

Specialists are often involved in how they come together to form a channel of distribution.

Rizzo Shoes has informal agreements with its wholesalers and retailers,and they cooperate pretty well by placing orders and sharing inventory and sales information over a computer network.Rizzo Shoes sells through a(n) ________ channel system.

Intermediaries in indirect channels of distribution

Distribution costs can be very low for digital products because there is often no physical good to distribute.

Direct investment in a foreign market involves the biggest commitment and the biggest risk.

Which of the following best illustrates adjusting discrepancies of assortment?

Traditional channel systems

Intensive distribution means selling through