Question 1

_____ 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 2

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 3

Exclusive distribution

Accepted Answer

A)   should generally be used only if it is not possible to generate intermediary interest in intensive distribution.
B)   is legal as long as it does not involve vertical channel arrangements.
C)   arrangements between a producer and intermediary are illegal for most types of products, and thus they are not very common in the U.S.
D)   usually involves intermediaries who are willing to take over all responsibility for promoting the producer's product.
E)   None of these alternatives are correct.

Question 4

If a producer's marketing manager wants intermediaries to take over all responsibility for promoting his product he probably should use

Accepted Answer

A)   exclusive distribution.
B)   selective distribution.
C)   intensive distribution.
D)   a vertically integrated distribution system.
E)   any of these, since every channel member must support a product with promotion.

Question 5

Producers often have to use "multichannel distribution":

Accepted Answer

A)   because they want to sell both direct with a website and indirectly through intermediaries.
B)   because big retail chains want to deal directly with producers.
C)   because competitors use a variety of channels.
D)   because present channel members are doing a poor job.
E)   All of these are valid reasons for producers to use multichannel distribution.

Question 6

A producer who wants to reach certain customers may have no choice about which wholesaler to use.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is NOT one of the degrees of market exposure?

Accepted Answer

A)   Selective distribution
B)   Multichannel distribution
C)   Intensive distribution
D)   Exclusive distribution
E)   None of these, i.e. all are degrees of market exposure

Question 8

Assorting means separating products into grades and qualities desired by different target markets.

Accepted Answer

A) True 
 B)False

Question 9

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 of the members of the channel.

Question 10

In _____ channel systems, the channel members agree by contract to cooperate with each other.

Accepted Answer

A)   contractual
B)   traditional
C)   selective
D)   corporate
E)   administered

Question 11

Reverse channels may be used to retrieve products from:

Accepted Answer

A)   business customers
B)   intermediaries
C)   business customers and intermediaries
D)   final consumers
E)   all of these

Question 12

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 13

Consumer product companies such as Tupperware that appear to be selling direct may not be because their salespeople are independent distributors, not company employees.

Accepted Answer

A) True 
 B)False

Question 14

Place decisions are easier to change in the short-run than Product, Price, and Promotion decisions.

Accepted Answer

A) True 
 B)False

Question 15

"Exclusive distribution" means selling through:

Accepted Answer

A)   the most prestigious retail outlets.
B)   only one wholesaler or retailer in a particular geographic area.
C)   only responsible and suitable retailers or wholesalers.
D)   retailers that handle specialty products.
E)   only those wholesalers or retailers who will give the product special attention.

Question 16

If Walmart purchases a manufacturing plant to produce nothing but Walmart's dealer brand of laundry detergent, Walmart is engaging in:

Accepted Answer

A)   Monopoly.
B)   Vertical integration.
C)   Intertype competition.
D)   A contractual channel system.
E)   An administered channel system.

Question 17

InterContinental Hardware Co. buys carload quantities of bolts, screws, nuts, washers, and other hardware from a large producer in the Netherlands, breaks these shipments into smaller quantities, and sells them to other wholesalers and retail chains. This "regrouping activity" is called:

Accepted Answer

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

Question 18

A manufacturer prefers to produce and ship in large quantities to take advantage of economies of scale. Final consumers often want to purchase in small quantities. This difference between the producer and consumer is a:

Accepted Answer

A)   Discrepancy of assortment.
B)   Discrepancy of quantity.
C)   Regrouping activity.
D)   Discrepancy adjustment.
E)   Marketing discrepancy.

Question 19

A vertical marketing system owned and operated by a single firm is called a _____ channel system.

Accepted Answer

A)   traditional
B)   administered
C)   contractual
D)   corporate
E)   nonprofit

Question 20

Use this information for question that refer to the World Tennis Ball (WTB)  Company case. World Tennis Ball Co. (WTB)  makes tennis balls and sells them only in the U.S. Raul Fernandez, the firm's marketing manager, is comparing his firm's distribution with two major competitors.
1)  WTB sells its products through four regional distributors who then sell to 22 sporting goods wholesalers. The wholesalers sell to a total of 7,000 retail outlets. From its website, WTB also sells directly to any customer who will purchase a minimum quantity of 24 tennis balls. WTB cooperates with members of its channel, but maintains some control through its economic power and leadership. It helps to direct the activities of the whole channel and tries to avoid or resolve channel conflicts.
2)  American Tennis Ball (ATB)  is a competitor that sells through two distributors-each with half the country. The distributors then sell through 6 sporting goods wholesalers, and they, in turn, sell to 1,000 retail outlets (split between two national sporting goods chains and two general merchandise stores) . ATB and its channel make little effort to work together. However, because of a relatively low level of competition between the distributors, the wholesalers, or the retail stores, each member of the channel gives the product special attention.
3)  National Tennis Ball (NTB)  sells its products through only three tennis specialty wholesalers that sell only to tennis clubs. NTB actually owns the wholesale firms that handle its products. NTB's balls are only available at certain tennis clubs and NTB limits coverage to only one club in a particular geographic area.
Which of the following appears to best describe ATB's channel arrangements?

Accepted Answer

A)   Intensive distribution
B)   Exclusive distribution
C)   Selective distribution
D)   Global distribution
E)   Direct distribution

Exam 10: Place and Development of Channel Systems

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

Correct Answer
verified

A manufacturer prefers to produce and ship in large quantities to take advantage of economies of scale. Final consumers often want to purchase in small quantities. This difference between the producer and consumer is a:

Correct Answer
verified

Producers often have to use "multichannel distribution":

Correct Answer
verified

InterContinental Hardware Co. buys carload quantities of bolts, screws, nuts, washers, and other hardware from a large producer in the Netherlands, breaks these shipments into smaller quantities, and sells them to other wholesalers and retail chains. This "regrouping activity" is called:

Correct Answer
verified

Direct marketing is

Correct Answer
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Exclusive distribution

Correct Answer
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Correct Answer
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Which of the following is NOT one of the degrees of market exposure?

Correct Answer
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If a producer's marketing manager wants intermediaries to take over all responsibility for promoting his product he probably should use

Correct Answer
verified

A producer who wants to reach certain customers may have no choice about which wholesaler to use.

Correct Answer
verified

Reverse channels may be used to retrieve products from:

Correct Answer
verified

A vertical marketing system owned and operated by a single firm is called a _____ channel system.

Correct Answer
verified

Discrepancy of quantity is

Correct Answer
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In _____ channel systems, the channel members agree by contract to cooperate with each other.

Correct Answer
verified

Traditional channel systems:

Correct Answer
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"Exclusive distribution" means selling through:

Correct Answer
verified

If Walmart purchases a manufacturing plant to produce nothing but Walmart's dealer brand of laundry detergent, Walmart is engaging in:

Correct Answer
verified

Place decisions are easier to change in the short-run than Product, Price, and Promotion decisions.

Correct Answer
verified

Consumer product companies such as Tupperware that appear to be selling direct may not be because their salespeople are independent distributors, not company employees.

Correct Answer
verified

Assorting means separating products into grades and qualities desired by different target markets.

Correct Answer
verified

Exam 10: Place and Development of Channel Systems

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

Correct AnswerverifiedShow Answer

A manufacturer prefers to produce and ship in large quantities to take advantage of economies of scale. Final consumers often want to purchase in small quantities. This difference between the producer and consumer is a:

Correct AnswerverifiedShow Answer

Producers often have to use "multichannel distribution":

Correct AnswerverifiedShow Answer

InterContinental Hardware Co. buys carload quantities of bolts, screws, nuts, washers, and other hardware from a large producer in the Netherlands, breaks these shipments into smaller quantities, and sells them to other wholesalers and retail chains. This "regrouping activity" is called:

Correct AnswerverifiedShow Answer

Direct marketing is

Correct AnswerverifiedShow Answer

Exclusive distribution

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is NOT one of the degrees of market exposure?

Correct AnswerverifiedShow Answer

If a producer's marketing manager wants intermediaries to take over all responsibility for promoting his product he probably should use

Correct AnswerverifiedShow Answer

A producer who wants to reach certain customers may have no choice about which wholesaler to use.

Correct AnswerverifiedShow Answer

Reverse channels may be used to retrieve products from:

Correct AnswerverifiedShow Answer

A vertical marketing system owned and operated by a single firm is called a _____ channel system.

Correct AnswerverifiedShow Answer

Discrepancy of quantity is

Correct AnswerverifiedShow Answer

In _____ channel systems, the channel members agree by contract to cooperate with each other.

Correct AnswerverifiedShow Answer

Traditional channel systems:

Correct AnswerverifiedShow Answer

"Exclusive distribution" means selling through:

Correct AnswerverifiedShow Answer

If Walmart purchases a manufacturing plant to produce nothing but Walmart's dealer brand of laundry detergent, Walmart is engaging in:

Correct AnswerverifiedShow Answer

Place decisions are easier to change in the short-run than Product, Price, and Promotion decisions.

Correct AnswerverifiedShow Answer

Consumer product companies such as Tupperware that appear to be selling direct may not be because their salespeople are independent distributors, not company employees.

Correct AnswerverifiedShow Answer

Assorting means separating products into grades and qualities desired by different target markets.

Correct AnswerverifiedShow Answer

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