Question 1

Selling through only one wholesaler or retailer in a particular geographic area is called:

Accepted Answer

A)   Ideal market distribution.
B)   Intensive distribution.
C)   Selective distribution.
D)   Exclusive distribution.
E)   Equivalent distribution.

Question 2

Most traditional channel systems don't have a channel captain.

Accepted Answer

A) True 
 B)False

Question 3

Place is concerned with the selection and use of marketing specialists-intermediaries and collaborators-and making goods and services available in the right quantities and locations when customers want them.

Accepted Answer

A) True 
 B)False

Question 4

The main reason that vertical marketing systems are becoming more common is:

Accepted Answer

A)   firms realize that working independently has advantages for channel members.
B)   firms increasingly understand that competition among channel members is profitable.
C)   it's easy for multiple firms to coordinate a single marketing mix for a common target market.
D)   firms recognize that coordination among channel members can increase sales for each channel member.
E)   only vertical marketing systems perform activities that adjust the quantities or assortments of products handled at each level in a channel of distribution.

Question 5

Which of the following is NOT a Place decision?

Accepted Answer

A)   Types of intermediaries needed.
B)   Degree of market exposure desired.
C)   Recruiting, selecting and managing the sales force.
D)   Type of distribution channel to use.
E)   Customer service level desired.

Question 6

Discrepancies of assortment occur because individual producers tend to specialize in producing a large assortment of products while individual consumers prefer to buy a small assortment of products.

Accepted Answer

A) True 
 B)False

Question 7

With the Internet, even very small specialized firms can draw customers from all over the world.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements about channel systems is true?

Accepted Answer

A)   Traditional channel systems are more efficient because of their greater freedom.
B)   Vertical integration works best when discrepancies of quantity are large.
C)   Most corporate channel systems use multichannel distribution.
D)   Some administered channel systems obtain the advantages of vertically integrated systems while still retaining flexibility.
E)   All of these statements about channel systems are true.

Question 9

"Discrepancies of assortment" means:

Accepted Answer

A)   some producers can produce more products than others.
B)   some consumers buy more products than others.
C)   consumers want more output than producers can make.
D)   there are more producers than wholesalers.
E)   the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users.

Question 10

Dividing large quantities into smaller quantities as products get closer to the final market is called _____.

Accepted Answer

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

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

In international markets, a firm can sell its management and marketing know-how while letting locals own the production and distribution facilities by using

Accepted Answer

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

Question 13

A producer using several competing channels to distribute its products to its target market is using ______________ distribution.

Accepted Answer

A)   multichannel
B)   intensive
C)   administered
D)   horizontal
E)   selective

Question 14

Throughout the world, Sony sells its televisions through retailers. Which of the following is probably a reason for using this indirect distribution strategy?

Accepted Answer

A)   Sony's customers prefer to buy direct from Sony.
B)   Sony's customers do not know which intermediaries sell its televisions.
C)   Sony has limited financial resources.
D)   Sony could more effectively serve customers by selling to them through its website.
E)   Sony believes that some intermediaries can serve customer needs better than Sony and at lower cost.

Question 15

Discrepancies of quantity and assortment occur because individual producers find it economical to produce and sell small quantities of a large assortment of products while individual consumers prefer to buy large quantities of a small assortment of products.

Accepted Answer

A) True 
 B)False

Question 16

In a _____ the whole channel focuses on the same target market at the end of the channel.

Accepted Answer

A)   vertical marketing system
B)   horizontal marketing system
C)   parallel marketing system
D)   diagonal marketing system
E)   linear marketing system

Question 17

Midwest Tools, Inc. of Indianapolis, Indiana owns a plant in Poland for manufacturing and selling machine tools in Europe. This type of international involvement is called:

Accepted Answer

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

Question 18

Which of the following statements about exporting is NOT TRUE?

Accepted Answer

A)   Intermediaries can handle the arrangements as products are shipped outside the country.
B)   Channel relationships in international markets take time to build and shouldn't be treated lightly.
C)   Exporting requires a firm to establish permanent relationships with international partners.
D)   A firm often invests a minimum amount of time and money.
E)   None of these; i.e. all of these statements about exporting are TRUE.

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 of the members of the channel.

Question 20

Marketers need to foster cooperation with various members of a channel system to prevent:

Accepted Answer

A)   channel competition.
B)   channel confusion.
C)   channel conflict.
D)   channel changing.
E)   channel surfing.

Exam 10: Place and Development of Channel Systems

Midwest Tools, Inc. of Indianapolis, Indiana owns a plant in Poland for manufacturing and selling machine tools in Europe. This type of international involvement is called:

Correct AnswerverifiedShow Answer

Place is concerned with the selection and use of marketing specialists-intermediaries and collaborators-and making goods and services available in the right quantities and locations when customers want them.

Correct AnswerverifiedShow Answer

Most traditional channel systems don't have a channel captain.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements about exporting is NOT TRUE?

Correct AnswerverifiedShow Answer

Discrepancies of assortment occur because individual producers tend to specialize in producing a large assortment of products while individual consumers prefer to buy a small assortment of products.

Correct AnswerverifiedShow Answer

A producer using several competing channels to distribute its products to its target market is using ______________ distribution.

Correct AnswerverifiedShow Answer

With the Internet, even very small specialized firms can draw customers from all over the world.

Correct AnswerverifiedShow Answer

Which of the following is NOT a Place decision?

Correct AnswerverifiedShow Answer

In international markets, a firm can sell its management and marketing know-how while letting locals own the production and distribution facilities by using

Correct AnswerverifiedShow Answer

Which of the following statements about channel systems is true?

Correct AnswerverifiedShow Answer

The main reason that vertical marketing systems are becoming more common is:

Correct AnswerverifiedShow Answer

Selling through only one wholesaler or retailer in a particular geographic area is called:

Correct AnswerverifiedShow Answer

In a _____ the whole channel focuses on the same target market at the end of the channel.

Correct AnswerverifiedShow Answer

Throughout the world, Sony sells its televisions through retailers. Which of the following is probably a reason for using this indirect distribution strategy?

Correct AnswerverifiedShow Answer

"Discrepancies of assortment" means:

Correct AnswerverifiedShow Answer

Marketers need to foster cooperation with various members of a channel system to prevent:

Correct AnswerverifiedShow Answer

Dividing large quantities into smaller quantities as products get closer to the final market is called _____.

Correct AnswerverifiedShow Answer

Discrepancies of quantity and assortment occur because individual producers find it economical to produce and sell small quantities of a large assortment of products while individual consumers prefer to buy large quantities of a small assortment of products.

Correct AnswerverifiedShow Answer

Traditional channel systems:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified