Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Traditional channels of distribution

Accepted Answer

A)   do not perform bulk-breaking activities.
B)   are usually preferred to other distribution arrangements.
C)   are easier to control than corporate channel systems.
D)   may involve little or no cooperation among channel members.
E)   are usually controlled through strong legal contracts.F) A) and B)
G) A) and C)

Question 3

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

Question 4

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

Question 5

In which of the following distribution channels is the firm most likely to maintain control of the marketing mix?

Accepted Answer

A)   Direct
B)   Indirect
C)   Cooperative
D)   Layered
E)   HorizontalF) A) and B)
G) A) and C)

Question 6

Which of the following statements about Place is not true?

Accepted Answer

A)   Most consumer products move from producer to intermediaries to final customer.
B)   A series of participants in the flow of goods and services from producer to final customer is called a channel of distribution.
C)   There is always one Place arrangement that is "best" for a product.
D)   Intermediaries develop to adjust discrepancies in quantity and assortment.
E)   All of these statements about Place are true.F) None of the above
G) A) and B)

Question 7

Intensive distribution is

Accepted Answer

A)   selling through only those wholesalers or retailers who will give the product special attention.
B)   selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.
C)   selling through only one wholesaler or retailer in a particular geographic area.
D)   making a product available widely enough to satisfy target customers' needs but not exceed them.
E)   used to gain some of the advantages of exclusive distribution-while still achieving fairly widespread market coverage.F) B) and C)
G) B) and D)

Question 8

Firms that use direct distribution can usually adjust their marketing mixes faster than firms that use indirect distribution.

Accepted Answer

A) True 
 B)False

Question 9

Distribution costs can be very low for digital products because there is often no physical good to distribute.

Accepted Answer

A) True 
 B)False

Question 10

The "80/20 rule" is more likely to apply to a firm that uses intensive distribution than a firm that uses selective distribution.

Accepted Answer

A) True 
 B)False

Question 11

Exclusive distribution is more likely to involve a more formal arrangement than is selective or intensive distribution.

Accepted Answer

A) True 
 B)False

Question 12

Strategy "Place" decisions would NOT include:

Accepted Answer

A)   type of physical distribution facilities.
B)   type of channel of distribution.
C)   degree of market exposure desired.
D)   distribution customer service level.
E)   how to train wholesalers' salespeople.F) C) and D)
G) D) and E)

Question 13

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 answerF) A) and B)
G) A) and C)

Question 14

A disadvantage of direct-to-customer channels is that

Accepted Answer

A)   most organizational buyers are used to relying on intermediaries to serve as their purchasing advisors.
B)   they require producers to shift many marketing functions to others.
C)   this approach makes it hard to achieve coordination among the required marketing activities.
D)   they make it more difficult to get information about changing needs of the market.
E)   None of these is a disadvantage of direct-to-customer channels.F) All of the above
G) A) and B)

Question 15

A joint venture is:

Accepted Answer

A)   a firm that provides only management skills, while others own the production and distribution facilities.
B)   a firm selling the right to use some process, trademark, or other right for a fee.
C)   a separate firm owned by a parent company.
D)   a domestic firm entering into a partnership with a foreign firm.
E)   a firm getting rid of surplus inventory.F) D) and E)
G) A) and D)

Question 16

Which of the following is not a common cause of conflict between producers and channel partners in a channel system?

Accepted Answer

A)   lack of communication.
B)   different objectives.
C)   independent operations.
D)   lack of a channel captain.
E)   different target customers.F) A) and D)
G) B) and E)

Question 17

A channel of distribution:

Accepted Answer

A)   is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.
B)   is only needed when products must be stored.
C)   must include one or more intermediaries.
D)   is only needed when products are sold indirectly.
E)   None of these alternatives is a good answer.F) A) and D)
G) D) and E)

Question 18

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 C)
G) All of the above

Question 19

Yakima Valley Produce, Inc. buys artichokes from many small farmers, assembles them into larger quantities, and ships in carload quantities to a central market where they are sold to large food processors. This "regrouping activity" is called:

Accepted Answer

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

Question 20

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.F) B) and E)
G) A) and B)

Exam 10: Place and Development of Channel Systems

Which of the following statements about channel systems is true?

Correct AnswerverifiedShow Answer

Yakima Valley Produce, Inc. buys artichokes from many small farmers, assembles them into larger quantities, and ships in carload quantities to a central market where they are sold to large food processors. This "regrouping activity" is called:

Correct AnswerverifiedShow Answer

Intensive distribution is

Correct AnswerverifiedShow Answer

The "80/20 rule" is more likely to apply to a firm that uses intensive distribution than a firm that uses selective distribution.

Correct AnswerverifiedShow Answer

Distribution costs can be very low for digital products because there is often no physical good to distribute.

Correct AnswerverifiedShow Answer

In which of the following distribution channels is the firm most likely to maintain control of the marketing mix?

Correct AnswerverifiedShow Answer

Which of the following statements about exporting is NOT TRUE?

Correct AnswerverifiedShow Answer

A joint venture is:

Correct AnswerverifiedShow Answer

Which of the following statements about Place is not true?

Correct AnswerverifiedShow Answer

A channel of distribution:

Correct AnswerverifiedShow Answer

Exclusive distribution is more likely to involve a more formal arrangement than is selective or intensive distribution.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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

Traditional channels of distribution

Correct AnswerverifiedShow Answer

Which of the following is not a common cause of conflict between producers and channel partners in a channel system?

Correct AnswerverifiedShow Answer

Firms that use direct distribution can usually adjust their marketing mixes faster than firms that use indirect distribution.

Correct AnswerverifiedShow Answer

Strategy "Place" decisions would NOT include:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A disadvantage of direct-to-customer channels is that

Correct AnswerverifiedShow Answer

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