Question 1

Horizontal agreements to limit sales by territory or customer are always illegal according to the Supreme Court.

Accepted Answer

A) True 
 B)False

Question 2

The regrouping activity which involves putting together a variety of products to give a target market what it wants is called:

Accepted Answer

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

Question 3

Ravi Singh is working his way through college as an independent distributor of the Rapier Knife Co. The Rapier product line includes kitchen knives, hunting knives, and other special-purpose cutlery. Ravi makes sales presentations to potential customers in their homes. If a customer wants to make a purchase, Ravi buys the knives from Rapier and sells them to the customer at a markup. For example, Rapier's most popular knife is a chef's knife that Ravi buys for $25 and resells to the consumer for $50. Ravi:

Accepted Answer

A)   Is part of a direct-to-customer channel.
B)   Is engaged in direct marketing.
C)   Is engaged in direct selling, but is part of an indirect channel.
D)   None of these alternatives is correct.E) B) and C)
F) All of the above

Question 4

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) B) and C)
G) None of the above

Question 5

Management contracting is a relatively low risk way of entering foreign markets, since no commitment is made to fixed facilities.

Accepted Answer

A) True 
 B)False

Question 6

When Fresh Produce Wholesaler Inc. buys fruit and vegetables from a variety of different farmers and 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 need.F) B) and C)
G) B) and D)

Question 7

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)   nonprofitF) All of the above
G) A) and C)

Question 8

Exporting is often the first step into international marketing.

Accepted Answer

A) True 
 B)False

Question 9

Since music, movies, books, and TV programs now exist in digital form, such products:

Accepted Answer

A)   have the same distribution methods as physical products.
B)   have lower distribution costs.
C)   do not require "intermediaries."
D)   do not need distribution.
E)   do not face discrepancies of quantity or assortment.F) A) and B)
G) A) and E)

Question 10

Accumulating involves collecting products from many small producers-often as a way to get lower transportation rates.

Accepted Answer

A) True 
 B)False

Question 11

When a warehouse is rearranged to speed up order processing, "regrouping activities" are being performed.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

Which of the following statements about ideal market exposure is true?

Accepted Answer

A)   As a firm goes from exclusive to intensive distribution, it loses progressively more control over price and service offered by retailers.
B)   A producer usually should seek maximum market exposure.
C)   Intensive distribution means trying to sell through all retail stores.
D)   It is necessary to get almost 100 percent market exposure to justify national promotion.
E)   All of these statements about ideal market exposure are true.F) D) and E)
G) C) and D)

Question 15

Retail stores that sell "seconds" and "irregular" products at discount prices are flourishing all over the country. These stores are needed because of what regrouping activity?

Accepted Answer

A)   Accumulating
B)   Bulk-breaking
C)   Sorting
D)   Assorting
E)   None of these is a good answer.F) B) and C)
G) A) and E)

Question 16

Some channel conflict may

Accepted Answer

A)   be inevitable when channel members have different objectives.
B)   be useful if that is what it takes for customers at the end of the channel to receive better value.
C)   be avoided when a producer does not sell identical products through different (competing)  channels.
D)   be reduced if there is a channel captain who thinks about all of the members of a channel and helps to direct their activities.
E)   All of these alternatives are correct.F) B) and D)
G) All of the above

Question 17

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

Question 18

When selecting the degree of market exposure for a firm's products, it's important to remember that:

Accepted Answer

A)   vertical arrangements between producers and intermediaries which limit sales by customer or territory are definitely illegal.
B)   the Federal Trade Commission prohibits exclusive distribution.
C)   vertical arrangements between producers and intermediaries which limit sales by customer or territory may be legal according to a recent Supreme Court ruling.
D)   horizontal arrangements among competing producers or intermediaries which limit sales by customer or territory are generally considered legal.
E)   None of these alternatives is correct.F) C) and E)
G) A) and E)

Question 19

"Selective distribution" means selling through:

Accepted Answer

A)   retailers but not wholesalers.
B)   multichannel distribution.
C)   all responsible and suitable wholesalers.
D)   only those wholesalers and retailers who give the product special attention.
E)   only one wholesaler or retailer in each geographic area.F) A) and B)
G) B) and D)

Question 20

Reverse channels are used when multichannel distribution fails.

Accepted Answer

A) True 
 B)False

Exam 10: Place and Development of Channel Systems

When a warehouse is rearranged to speed up order processing, "regrouping activities" are being performed.

Correct Answer
verified

Accumulating involves collecting products from many small producers-often as a way to get lower transportation rates.

Correct Answer
verified

The regrouping activity which involves putting together a variety of products to give a target market what it wants is called:

Correct Answer
verified

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

Correct Answer
verified

Retail stores that sell "seconds" and "irregular" products at discount prices are flourishing all over the country. These stores are needed because of what regrouping activity?

Correct Answer
verified

A good reason for developing or joining a vertical marketing system

Correct Answer
verified

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

Correct Answer
verified

Reverse channels are used when multichannel distribution fails.

Correct Answer
verified

Which of the following statements about ideal market exposure is true?

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

"Selective distribution" means selling through:

Correct Answer
verified

Horizontal agreements to limit sales by territory or customer are always illegal according to the Supreme Court.

Correct Answer
verified

Management contracting is a relatively low risk way of entering foreign markets, since no commitment is made to fixed facilities.

Correct Answer
verified

Some channel conflict may

Correct Answer
verified

Correct Answer
verified

When selecting the degree of market exposure for a firm's products, it's important to remember that:

Correct Answer
verified

Exporting is often the first step into international marketing.

Correct Answer
verified

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

Correct Answer
verified

Since music, movies, books, and TV programs now exist in digital form, such products:

Correct Answer
verified

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

Correct Answer
verified

Exam 10: Place and Development of Channel Systems

When a warehouse is rearranged to speed up order processing, "regrouping activities" are being performed.

Correct AnswerverifiedShow Answer

Accumulating involves collecting products from many small producers-often as a way to get lower transportation rates.

Correct AnswerverifiedShow Answer

The regrouping activity which involves putting together a variety of products to give a target market what it wants is called:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Retail stores that sell "seconds" and "irregular" products at discount prices are flourishing all over the country. These stores are needed because of what regrouping activity?

Correct AnswerverifiedShow Answer

A good reason for developing or joining a vertical marketing system

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Reverse channels are used when multichannel distribution fails.

Correct AnswerverifiedShow Answer

Which of the following statements about ideal market exposure is true?

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

"Selective distribution" means selling through:

Correct AnswerverifiedShow Answer

Horizontal agreements to limit sales by territory or customer are always illegal according to the Supreme Court.

Correct AnswerverifiedShow Answer

Management contracting is a relatively low risk way of entering foreign markets, since no commitment is made to fixed facilities.

Correct AnswerverifiedShow Answer

Some channel conflict may

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When selecting the degree of market exposure for a firm's products, it's important to remember that:

Correct AnswerverifiedShow Answer

Exporting is often the first step into international marketing.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Since music, movies, books, and TV programs now exist in digital form, such products:

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

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