Question 1

_____ is a manager who helps directs the activities of a whole channel and tries to avoid or solve channel conflicts.

Accepted Answer

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

Question 2

Manufacturers are sometimes forced to use "multichannel distribution" because their present channels are doing a poor job or are not reaching some potential customers.

Accepted Answer

A) True 
 B)False

Question 3

"Discrepancies of assortment" means:

Accepted Answer

A)   there are more producers than consumers.
B)   consumers want more output than producers make.
C)   the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users.
D)   there are more consumers than producers.
E)   the difference between the quantity of products the typical producer makes and the quantity wanted by individual consumers.

Question 4

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

Accepted Answer

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

Question 5

Indirect channels are probably a better choice than direct channels when:

Accepted Answer

A)   the firm has limited financial resources.
B)   the product is a consumer product instead of a business product.
C)   target customers already have established buying patterns for where to search for the product.
D)   retailers are already conveniently located where consumers shop.
E)   All of these make indirect channels a better choice.

Question 6

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.
If American Tennis Ball adds more retail outlets, which of the following would help it to manage channel conflict:

Accepted Answer

A)   assign the channel captain role to the largest retail chain.
B)   sell a different brand of tennis ball through the new retailers than what it sells through current retailers.
C)   select new retail outlets that target the same customers as those who buy from its current retailers.
D)   choose new retailers in the same geographic market as its current retailers but who sell at lower prices.
E)   drop its national advertising and leave it to retailers to promote its tennis balls.

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

Horizontal arrangements among competing retailers, wholesalers, or producers to limit sales by customer or territory have consistently been

Accepted Answer

A)   shown to increase competition.
B)   a regular practice in the U.S.
C)   encouraged in the U.S. but not in many international markets.
D)   a successful strategy for entering international markets.
E)   ruled illegal by the U.S. Supreme Court.

Question 9

A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time. But a bookstore orders only a few copies of each book since its customers want to select from a wide variety. This example shows

Accepted Answer

A)   why discrepancies of quantity occur.
B)   why both discrepancies of quantity and assortment occur.
C)   neither discrepancies of assortment or quantity.
D)   why discrepancies of assortment occur.
E)   multichannel distribution.

Question 10

Small farmers in the mountains of Peru pick coffee beans by hand, obtaining only a bucket a day. Then they sell them to buyers who put the beans in large bags to be shipped to processors. This regrouping activity is called:

Accepted Answer

A)   Assorting.
B)   Wholesaling.
C)   Bulk-breaking.
D)   Sorting.
E)   Accumulating.

Question 11

With respect to consumer products, which of the following is the most common system for distributing consumer products in the U.S.?

Accepted Answer

A)   Direct channel systems.
B)   Vertical marketing systems.
C)   Traditional channel systems.
D)   Horizontal marketing systems.
E)   None of these is a good answer.

Question 12

Channel conflict often results when a manufacturer opens a new distribution channel, especially if it directly competes with its existing intermediaries.

Accepted Answer

A) True 
 B)False

Question 13

Place decisions make goods and services available in the right quantities and locations, when customers want them.

Accepted Answer

A) True 
 B)False

Question 14

"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 15

Distribution agreements which limit sales by customer or territory:

Accepted Answer

A)   are always illegal.
B)   may be legal if they are horizontal agreements between producers and intermediaries.
C)   are definitely illegal if they are horizontal agreements among competing producers or intermediaries, but may be legal if they are vertical agreements.
D)   are definitely illegal if they are vertical agreements between producers and intermediaries.
E)   None of these alternatives is correct.

Question 16

Bulk-breaking

Accepted Answer

A)   means putting together a variety of products to give a target market what it wants.
B)   involves collecting products from many small producers.
C)   involves dividing larger quantities into smaller quantities as products get closer to the final market.
D)   means separating products into grades and qualities desired by different target markets.
E)   is most important with specialized producers of professional services.

Question 17

Some firms are forced to use direct distribution when they can't find intermediaries willing to carry innovative, new products.

Accepted Answer

A) True 
 B)False

Question 18

Intensive distribution is often very appropriate for:

Accepted Answer

A)   shopping products and convenience products.
B)   convenience products and business supplies.
C)   business products of all classes.
D)   unsought products and specialty products.
E)   shopping, specialty, and unsought products.

Question 19

Multichannel distribution:

Accepted Answer

A)   May involve using both direct and indirect channels simultaneously.
B)   May offer producers a way to reach customers they would not be able to reach with a single channel.
C)   Is becoming more common.
D)   May create channel conflict.
E)   All of these alternatives are correct.

Question 20

The role of "channel captain":

Accepted Answer

A)   should be taken by producers because they have more power.
B)   is to force other channel members to accept the channel captain's plan.
C)   should be taken by retailers because they are closer to consumers.
D)   may not be necessary if the channel members are satisfied with the "status-quo."
E)   is to help a channel system compete more effectively with other channel systems.

Exam 10: Place and Development of Channel Systems

Small farmers in the mountains of Peru pick coffee beans by hand, obtaining only a bucket a day. Then they sell them to buyers who put the beans in large bags to be shipped to processors. This regrouping activity is called:

Correct Answer
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Distribution agreements which limit sales by customer or territory:

Correct Answer
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With respect to consumer products, which of the following is the most common system for distributing consumer products in the U.S.?

Correct Answer
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Intensive distribution is often very appropriate for:

Correct Answer
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Correct Answer
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"Discrepancies of assortment" means:

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

Correct Answer
verified

Indirect channels are probably a better choice than direct channels when:

Correct Answer
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"Exclusive distribution" means selling through:

Correct Answer
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The role of "channel captain":

Correct Answer
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Place decisions make goods and services available in the right quantities and locations, when customers want them.

Correct Answer
verified

A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time. But a bookstore orders only a few copies of each book since its customers want to select from a wide variety. This example shows

Correct Answer
verified

Some firms are forced to use direct distribution when they can't find intermediaries willing to carry innovative, new products.

Correct Answer
verified

Manufacturers are sometimes forced to use "multichannel distribution" because their present channels are doing a poor job or are not reaching some potential customers.

Correct Answer
verified

Multichannel distribution:

Correct Answer
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_____ is a manager who helps directs the activities of a whole channel and tries to avoid or solve channel conflicts.

Correct Answer
verified

Horizontal arrangements among competing retailers, wholesalers, or producers to limit sales by customer or territory have consistently been

Correct Answer
verified

Bulk-breaking

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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Channel conflict often results when a manufacturer opens a new distribution channel, especially if it directly competes with its existing intermediaries.

Correct Answer
verified

Exam 10: Place and Development of Channel Systems

Small farmers in the mountains of Peru pick coffee beans by hand, obtaining only a bucket a day. Then they sell them to buyers who put the beans in large bags to be shipped to processors. This regrouping activity is called:

Correct AnswerverifiedShow Answer

Distribution agreements which limit sales by customer or territory:

Correct AnswerverifiedShow Answer

With respect to consumer products, which of the following is the most common system for distributing consumer products in the U.S.?

Correct AnswerverifiedShow Answer

Intensive distribution is often very appropriate for:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

"Discrepancies of assortment" means:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Indirect channels are probably a better choice than direct channels when:

Correct AnswerverifiedShow Answer

"Exclusive distribution" means selling through:

Correct AnswerverifiedShow Answer

The role of "channel captain":

Correct AnswerverifiedShow Answer

Place decisions make goods and services available in the right quantities and locations, when customers want them.

Correct AnswerverifiedShow Answer

A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time. But a bookstore orders only a few copies of each book since its customers want to select from a wide variety. This example shows

Correct AnswerverifiedShow Answer

Some firms are forced to use direct distribution when they can't find intermediaries willing to carry innovative, new products.

Correct AnswerverifiedShow Answer

Manufacturers are sometimes forced to use "multichannel distribution" because their present channels are doing a poor job or are not reaching some potential customers.

Correct AnswerverifiedShow Answer

Multichannel distribution:

Correct AnswerverifiedShow Answer

_____ is a manager who helps directs the activities of a whole channel and tries to avoid or solve channel conflicts.

Correct AnswerverifiedShow Answer

Horizontal arrangements among competing retailers, wholesalers, or producers to limit sales by customer or territory have consistently been

Correct AnswerverifiedShow Answer

Bulk-breaking

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Channel conflict often results when a manufacturer opens a new distribution channel, especially if it directly competes with its existing intermediaries.

Correct AnswerverifiedShow Answer

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