Question 1

Compared to intensive distribution, selective distribution gives a producer a greater opportunity for profit but usually makes it more difficult for intermediaries to make a profit.

Accepted Answer

A) True 
 B)False

Question 2

Firms that cooperate to build vertical marketing systems typically share a longer-term commitment.

Accepted Answer

A) True 
 B)False

Question 3

"Regrouping activities" involve adjusting the quantities or assortments of products handled at each level in a channel of distribution.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements about Place is true?

Accepted Answer

A)  Most consumer products and most business products are sold to intermediaries who then sell them to final customers. 
B)  Place decisions are usually harder to change than other marketing mix decisions. 
C)  There is always one Place arrangement that is "best" for a product. 
D)  A series of individuals who aid in the flow of goods and services from producer to final customer is called a distribution network. 
E)  None of these statements about Place is true.

Question 5

Oceanside Tools, Inc. of Newport, Rhode Island has agreed to work with a Thai company to produce and sell chemicals in Thailand. The U.S. firm will provide technical and marketing know-how, while its Thai partner will provide knowledge of Thai markets and political connections. The partners will share the costs and profits 50/50. This type of international involvement is called:

Accepted Answer

A)  direct investment. 
B)  management contracting. 
C)  licensing. 
D)  multinational marketing. 
E)  joint venturing.

Question 6

_____ means selling the right to use some process, trademark, patent, or other right for a fee or royalty.

Accepted Answer

A)  Licensing 
B)  Management contracting 
C)  Joint venturing 
D)  Exporting 
E)  Direct investment

Question 7

The vertical marketing system that typically has the greatest amount of cooperation among channel members is a(n):

Accepted Answer

A)  Traditional channel system. 
B)  Administered channel system. 
C)  Contractual channel system. 
D)  Franchise channel system. 
E)  Corporate channel system.

Question 8

A type of vertical integration system that develops by acquiring firms at different levels of channel activity is called:

Accepted Answer

A)  Corporate. 
B)  Traditional. 
C)  Administered. 
D)  Contractual. 
E)  Technical.

Question 9

When an online intermediary like Hulu scans thousands of hours of programming each week and groups these programs into categories of digital programs (e.g. sports, crime, etc.), this is an example of:

Accepted Answer

A)  Vertical integration. 
B)  Sorting. 
C)  Bulk-breaking. 
D)  Assorting. 
E)  Licensing.

Question 10

AsianArt4U.com brings together the art produced by many different Asian painters and sculptors-and offers them for sale on its website. This is an example of

Accepted Answer

A)  accumulating 
B)  sorting 
C)  a franchise channel 
D)  a discrepancy intermediary 
E)  bulk-breaking

Question 11

Consumers usually want to shop for milk, meat, vegetables, and fruits at one convenient location. Grocery stores that offer all of these products help to alleviate this ___________.

Accepted Answer

A)  discrepancy of quantity 
B)  accumulation deficit 
C)  sorting error 
D)  discrepancy of assortment 
E)  bulk-breaking

Question 12

Any contractual channel system-by definition-is also an administered channel system.

Accepted Answer

A) True 
 B)False

Question 13

A "channel captain" is a manager who helps direct the activities of a whole channel.

Accepted Answer

A) True 
 B)False

Question 14

The "80/20 rule" is more likely to apply to a firm that uses intensive distribution than a firm that uses selective distribution.

Accepted Answer

A) True 
 B)False

Question 15

Many business products are sold direct, but hardly any services are.

Accepted Answer

A) True 
 B)False

Question 16

Intensive distribution is selling through only those intermediaries who will give the product special attention.

Accepted Answer

A) True 
 B)False

Question 17

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)  a direct investment. 
E)  exporting.

Question 18

______________ means selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.

Accepted Answer

A)  Selective distribution 
B)  Multichannel distribution 
C)  Exclusive distribution 
D)  Intensive distribution 
E)  Aggressive distribution

Question 19

Direct marketing is

Accepted Answer

A)  personal sales contact between a representative of the company and an individual consumer. 
B)  primarily concerned with the degree of market exposure. 
C)  direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling. 
D)  an effort to sell through only one intermediary. 
E)  a strategy that works best when a producer has little working capital.

Question 20

The CBS network offers consumers hundreds of hours of television viewing each month, but the typical consumer wants to watch only a few programs. What type of discrepancy does this create?

Accepted Answer

A)  Discrepancy of assortment 
B)  Discrepancy of quality 
C)  Discrepancy of image 
D)  Discrepancy of variety 
E)  Discrepancy of quantity

Exam 10: Place and Development of Channel Systems

Compared to intensive distribution, selective distribution gives a producer a greater opportunity for profit but usually makes it more difficult for intermediaries to make a profit.

Firms that cooperate to build vertical marketing systems typically share a longer-term commitment.

"Regrouping activities" involve adjusting the quantities or assortments of products handled at each level in a channel of distribution.

Which of the following statements about Place is true?

_____ means selling the right to use some process, trademark, patent, or other right for a fee or royalty.

The vertical marketing system that typically has the greatest amount of cooperation among channel members is a(n) :

A type of vertical integration system that develops by acquiring firms at different levels of channel activity is called:

When an online intermediary like Hulu scans thousands of hours of programming each week and groups these programs into categories of digital programs (e.g. sports, crime, etc.) , this is an example of:

AsianArt4U.com brings together the art produced by many different Asian painters and sculptors-and offers them for sale on its website. This is an example of

Consumers usually want to shop for milk, meat, vegetables, and fruits at one convenient location. Grocery stores that offer all of these products help to alleviate this ___________.

Any contractual channel system-by definition-is also an administered channel system.

A "channel captain" is a manager who helps direct the activities of a whole channel.

The "80/20 rule" is more likely to apply to a firm that uses intensive distribution than a firm that uses selective distribution.

Many business products are sold direct, but hardly any services are.

Intensive distribution is selling through only those intermediaries who will give the product special attention.

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

______________ means selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.

Direct marketing is

The CBS network offers consumers hundreds of hours of television viewing each month, but the typical consumer wants to watch only a few programs. What type of discrepancy does this create?