Question 1

When Fresh Produce Wholesaler Inc.buys fruits and vegetables from a variety of different farmers,and then takes large bushels and breaks them into smaller package sizes,Fresh Produce is addressing ________.

Accepted Answer

A)   discrepancies of time
B)   discrepancies of quantity
C)   discrepancies of assortment
D)   discrepancies of place
E)   discrepancies of needF) A) and B)
G) B) and C)

Question 2

______________ 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 distributionF) A) and D)
G) B) and C)

Question 3

Exporting is often the first step into international marketing.

Accepted Answer

A) True 
 B)False

Question 4

Legal concerns about channel of distribution arrangements are most likely to arise when:

Accepted Answer

A)   a traditional channel system is involved.
B)   there are horizontal arrangements between firms at the same level of the channel.
C)   the firm is using intensive distribution.
D)   a firm uses multichannel distribution to reach its target markets.
E)   a corporate channel system is involved.F) A) and D)
G) None of the above

Question 5

The 80/20 rule-that 80 percent of a company's sales often come from just 20 percent of its customers-is a good reason for marketers to use ________.

Accepted Answer

A)   selective distribution
B)   intensive distribution
C)   exclusive distribution
D)   international distribution
E)   multichannel distributionF) A) and C)
G) A) and D)

Question 6

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)   dividingF) A) and B)
G) A) and C)

Question 7

A good reason for developing or joining a vertical marketing system

Accepted Answer

A)   is that the whole channel focuses on the same target market at the end of the channel and seems to be more effective.
B)   market competition at each level of the channel eliminates inefficient firms and serves consumers' needs better.
C)   is that no member of the channel has to bear the costs of the regrouping activities.
D)   is that no member of the channel has to plan for the whole channel since good decisions at each level run the channel.
E)   All of these are good reasons for developing or joining a vertical marketing system.F) D) and E)
G) B) and E)

Question 8

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.F) A) and D)
G) C) and D)

Question 9

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.F) None of the above
G) A) and B)

Question 10

Which of the following is true of direct distribution?

Accepted Answer

A)   It requires a significant investment in facilities.
B)   It reduces a producer's need for working capital.
C)   Direct distribution always serves customer needs better and at a lower cost.
D)   Most firms selling consumer products rely on direct distribution.
E)   It is easy to change customer buying patterns from indirect distribution to direct distribution.F) A) and E)
G) B) and E)

Question 11

Vertical agreements to limit sales by customer or territory are always illegal,while horizontal agreements may be legal sometimes.

Accepted Answer

A) True 
 B)False

Question 12

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 13

Which of the following favors low-cost retailers?

Accepted Answer

A)   Homogeneous shopping goods
B)   Specialty shopping goods
C)   Heterogeneous shopping goods
D)   Physical shopping goods
E)   Household shopping goodsF) B) and C)
G) C) and D)

Question 14

Administered and contractual channel systems are vertical marketing systems which depend on informal agreements-or contracts between channel members-to cooperate.

Accepted Answer

A) True 
 B)False

Question 15

A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location,but the supermarket manager refuses to give that valuable real estate to this producer.This is an example of __________ conflict.

Accepted Answer

A)   contractual
B)   vertical
C)   corporate
D)   horizontal
E)   administeredF) B) and C)
G) A) and B)

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.F) A) and B)
G) A) and C)

Question 17

A new channel is more likely to prompt conflict if it focuses on segments not already served by current channels.

Accepted Answer

A) True 
 B)False

Question 18

When an online intermediary like Hulu scans all of the episodes of NCIS and then offers them to its customers one episode at a time,this is an example of:

Accepted Answer

A)   Sorting
B)   Assorting
C)   Vertical integration
D)   Bulk-breaking
E)   Horizontal integrationF) A) and B)
G) B) and E)

Question 19

Exporting is sometimes just a way for a firm to get rid of surplus products.

Accepted Answer

A) True 
 B)False

Question 20

"Ideal market exposure" should make a product widely enough available to satisfy target customers' needs,but not exceed them.

Accepted Answer

A) True 
 B)False

Exam 12: Place and Development of Channel Systems

Exporting is sometimes just a way for a firm to get rid of surplus products.

Correct AnswerverifiedShow Answer

"Ideal market exposure" should make a product widely enough available to satisfy target customers' needs,but not exceed them.

Correct AnswerverifiedShow Answer

Bulk-breaking

Correct AnswerverifiedShow Answer

Administered and contractual channel systems are vertical marketing systems which depend on informal agreements-or contracts between channel members-to cooperate.

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

Exporting is often the first step into international marketing.

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

A good reason for developing or joining a vertical marketing system

Correct AnswerverifiedShow Answer

A new channel is more likely to prompt conflict if it focuses on segments not already served by current channels.

Correct AnswerverifiedShow Answer

Which of the following is true of direct distribution?

Correct AnswerverifiedShow Answer

Vertical agreements to limit sales by customer or territory are always illegal,while horizontal agreements may be legal sometimes.

Correct AnswerverifiedShow Answer

The 80/20 rule-that 80 percent of a company's sales often come from just 20 percent of its customers-is a good reason for marketers to use ________.

Correct AnswerverifiedShow Answer

A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location,but the supermarket manager refuses to give that valuable real estate to this producer.This is an example of __________ conflict.

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

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

Correct AnswerverifiedShow Answer

When Fresh Produce Wholesaler Inc.buys fruits and vegetables from a variety of different farmers,and then takes large bushels and breaks them into smaller package sizes,Fresh Produce is addressing ________.

Correct AnswerverifiedShow Answer

Which of the following favors low-cost retailers?

Correct AnswerverifiedShow Answer

When an online intermediary like Hulu scans all of the episodes of NCIS and then offers them to its customers one episode at a time,this is an example of:

Correct AnswerverifiedShow Answer

Legal concerns about channel of distribution arrangements are most likely to arise when:

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