Question 1

Of the five basic kinds of involvement in international marketing, exporting is the least permanent.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following best illustrates adjusting "discrepancies of assortment?"

Accepted Answer

A)   General Motors makes Hummer for one product-market and Chevrolet for another product-market.
B)   A hardware store sells all the hardware items wanted by most people.
C)   Over 310 million U.S. consumers are served by approximately 330,000 manufacturers.
D)   RCA sold more than 2,000,000 TVs last year.
E)   Three firms produce over 60 percent of all the DVD players sold in the United States.F) A) and C)
G) A) and B)

Question 3

In Europe, auto manufacturers are required by law to allow owners of their brands to give the cars back to the manufacturers at the end of their useful life. The manufacturers must then recycle and reuse at least 85 percent of any vehicle made after 2004. This is an example of a(n) :

Accepted Answer

A)   integration law
B)   horizontal law
C)   contractual law
D)   vertical law
E)   take back lawF) C) and D)
G) A) and E)

Question 4

Intensive distribution is selling through only those intermediaries who will give the product special attention.

Accepted Answer

A) True 
 B)False

Question 5

In a licensing agreement, the licensee takes most of the risk because it must invest some capital to use the right granted by the licensor.

Accepted Answer

A) True 
 B)False

Question 6

A channel system in which the various members informally agree to cooperate with each other is called a(an)  ______________ system.

Accepted Answer

A)   contractual channel
B)   dual distribution
C)   traditional channel
D)   administered channel
E)   franchisingF) All of the above
G) B) and E)

Question 7

Which of the following is NOT an advantage of vertical integration?

Accepted Answer

A)   Lower executive overhead
B)   Better control of distribution
C)   Easier adjustment of discrepancies of quantity and assortment
D)   Greater buying power
E)   Stable sources of suppliesF) A) and E)
G) A) and D)

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

A selective distribution policy might be used to avoid selling to wholesalers or retailers that:

Accepted Answer

A)   Place orders that are too small.
B)   Make too many returns.
C)   Request too much service.
D)   Have poor credit.
E)   All of these alternatives are correct.F) B) and D)
G) C) and D)

Question 10

Firms that use direct marketing promotion may or may not use direct distribution.

Accepted Answer

A) True 
 B)False

Question 11

In ______ channel systems, ordering is routinized, inventory and sales information is shared over computer networks, accounting is standardized, and promotion efforts are coordinated.

Accepted Answer

A)   contractual
B)   traditional
C)   administered
D)   integrated
E)   corporateF) A) and C)
G) D) and E)

Question 12

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 E)
G) A) and D)

Question 13

______________ means selling a product only through those intermediaries who will give the product special attention.

Accepted Answer

A)   Multichannel distribution
B)   Selective distribution
C)   Administered distribution
D)   Exclusive distribution
E)   Intensive distributionF) B) and E)
G) None of the above

Question 14

Which of the following statements about direct channel systems is FALSE?

Accepted Answer

A)   There is no reliance on independent intermediaries whose objectives may be different from the producer's objectives.
B)   Suitable intermediaries are always available even when they're needed at the last minute.
C)   The producer can be more aware of changes in customer attitudes.
D)   Direct channels are more typical with business products than with consumer products.
E)   None of these statements about direct channel systems is FALSE.F) C) and E)
G) None of the above

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A producer that enters into a licensing agreement with a foreign company to better reach foreign customers is most likely selling the rights to use its:

Accepted Answer

A)   production facilities.
B)   brand name.
C)   channels of distribution.
D)   sales force.
E)   Any of these are equally likely.F) None of the above
G) A) and D)

Question 17

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) C) and D)
G) C) and E)

Question 18

Many business products are sold direct, but hardly any services are.

Accepted Answer

A) True 
 B)False

Question 19

AsianArt4U.com brings together the art produced by many different Asian painters and sculptors-and offers them for sale on its website. This is an example of

Accepted Answer

A)   accumulating.
B)   sorting.
C)   a franchise channel.
D)   a discrepancy intermediary.
E)   bulk-breaking.F) A) and B)
G) D) and E)

Question 20

Vertical marketing systems are growing in the U.S., but declining in the rest of the world.

Accepted Answer

A) True 
 B)False

Exam 10: Place and Development of Channel Systems

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

A selective distribution policy might be used to avoid selling to wholesalers or retailers that:

Correct AnswerverifiedShow Answer

In Europe, auto manufacturers are required by law to allow owners of their brands to give the cars back to the manufacturers at the end of their useful life. The manufacturers must then recycle and reuse at least 85 percent of any vehicle made after 2004. This is an example of a(n) :

Correct AnswerverifiedShow Answer

A producer that enters into a licensing agreement with a foreign company to better reach foreign customers is most likely selling the rights to use its:

Correct AnswerverifiedShow Answer

Of the five basic kinds of involvement in international marketing, exporting is the least permanent.

Correct AnswerverifiedShow Answer

Intensive distribution is selling through only those intermediaries who will give the product special attention.

Correct AnswerverifiedShow Answer

Which of the following statements about direct channel systems is FALSE?

Correct AnswerverifiedShow Answer

Firms that use direct marketing promotion may or may not use direct distribution.

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Many business products are sold direct, but hardly any services are.

Correct AnswerverifiedShow Answer

In ______ channel systems, ordering is routinized, inventory and sales information is shared over computer networks, accounting is standardized, and promotion efforts are coordinated.

Correct AnswerverifiedShow Answer

A channel system in which the various members informally agree to cooperate with each other is called a(an) ______________ system.

Correct AnswerverifiedShow Answer

______________ means selling a product only through those intermediaries who will give the product special attention.

Correct AnswerverifiedShow Answer

AsianArt4U.com brings together the art produced by many different Asian painters and sculptors-and offers them for sale on its website. This is an example of

Correct AnswerverifiedShow Answer

In a licensing agreement, the licensee takes most of the risk because it must invest some capital to use the right granted by the licensor.

Correct AnswerverifiedShow Answer

Vertical marketing systems are growing in the U.S., but declining in the rest of the world.

Correct AnswerverifiedShow Answer

Which of the following best illustrates adjusting "discrepancies of assortment?"

Correct AnswerverifiedShow Answer

Which of the following is NOT an advantage of vertical integration?

Correct AnswerverifiedShow Answer

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