Question 1

Direct-to-customer channels are rarely used in business markets because they are much more expensive and less efficient than using intermediaries.

Accepted Answer

A) True 
 B)False

Question 2

Intensive distribution is selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.

Accepted Answer

A) True 
 B)False

Question 3

Consumer product companies such as Tupperware that appear to be selling direct may not be because their salespeople are independent distributors, not company employees.

Accepted Answer

A) True 
 B)False

Question 4

In "traditional channel systems," the channel members:

Accepted Answer

A)   consider traditional values-like cooperation and respect-as central to their relationship.
B)   have franchise contracts.
C)   usually have a common product-market commitment.
D)   make little or no effort to cooperate with each other.
E)   are integrated.F) D) and E)
G) B) and E)

Question 5

Business products tend to be sold direct to customers because compared to consumer products:

Accepted Answer

A)   business markets have more transactions.
B)   orders are smaller in size.
C)   e-commerce systems can efficiently handle orders once relationships are established.
D)   customers are usually widely dispersed across geographic areas.
E)   business products always use direct distribution.F) B) and C)
G) A) and B)

Question 6

A manufacturer prefers to produce and ship in large quantities to take advantage of economies of scale. Final consumers often want to purchase in small quantities. This difference between the producer and consumer is a:

Accepted Answer

A)   Discrepancy of assortment.
B)   Discrepancy of quantity.
C)   Regrouping activity.
D)   Discrepancy adjustment.
E)   Marketing discrepancy.F) A) and E)
G) All of the above

Question 7

Producers who consider handling the entire distribution job themselves may be especially inclined to do so because:

Accepted Answer

A)   many customers have established buying patterns that don't include buying direct from producers.
B)   many customers have a preference for shopping at their favorite locations and won't be likely to change.
C)   direct distribution usually requires a significant investment in facilities, people, and information technology.
D)   a channel partner (intermediary)  is not available or will not cooperate.
E)   intermediaries often serve customer needs better than producers and at lower cost.F) B) and D)
G) B) and E)

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

A convenience product would probably be sold using:

Accepted Answer

A)   Intensive distribution.
B)   Exclusive distribution.
C)   Selective distribution.
D)   Extensive distribution.
E)   Sole-source distribution.F) A) and C)
G) B) and E)

Question 10

Intermediaries are needed MOST when the desired degree of market exposure is:

Accepted Answer

A)   selective.
B)   intensive.
C)   exclusive.
D)   administered.
E)   None of these is a good answer.F) A) and D)
G) B) and C)

Question 11

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

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements about Place is FALSE?

Accepted Answer

A)   Place variations are required when target markets have different needs.
B)   Product classes suggest Place objectives.
C)   Place decisions have relatively little impact on competition in a product-market.
D)   Place decisions have longer-run implications than Price decisions.
E)   Place decisions need to consider when customers want products.F) None of the above
G) A) and E)

Question 14

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

Question 15

A manufacturer may be forced to use multichannel distribution because a big retail chain wants to deal directly with it instead of wholesalers.

Accepted Answer

A) True 
 B)False

Question 16

A good "channel captain" knows that:

Accepted Answer

A)   direct-to-customer channels usually cost less and perform more efficiently than indirect channels.
B)   marketing functions can be shifted and shared within a channel-but they cannot be completely eliminated.
C)   a traditional channel system works best.
D)   some marketing functions can usually be completely eliminated by using short channels instead of long channels.
E)   None of these alternatives is correct.F) A) and B)
G) B) and D)

Question 17

To reduce conflicts in channels, a firm should:

Accepted Answer

A)   Offer different products through each channel.
B)   Provide some compensation to members of the older channel.
C)   Treat channel partners fairly even when one partner is more powerful.
D)   Focus on segments not currently served by existing channels.
E)   All of these alternatives are correct.F) A) and B)
G) A) and C)

Question 18

Producers can positively manage channel conflict using all the following tactics except:

Accepted Answer

A)   offer different products through different channels.
B)   serve different market segments through different channels.
C)   limit channel member relationships to buying and selling activity.
D)   compensate participating channel members when conflict exists.
E)   identify a channel captain.F) C) and D)
G) A) and E)

Question 19

A wholesaler might help a producer by reducing the producer's need for market research.

Accepted Answer

A) True 
 B)False

Question 20

______________ means selling a product through only one wholesaler or retailer in a particular geographic area.

Accepted Answer

A)   Exclusive distribution
B)   Direct distribution
C)   Intensive distribution
D)   Multichannel distribution
E)   Selective distributionF) B) and C)
G) A) and E)

Exam 10: Place and Development of Channel Systems

Consumer product companies such as Tupperware that appear to be selling direct may not be because their salespeople are independent distributors, not company employees.

Correct AnswerverifiedShow Answer

A manufacturer prefers to produce and ship in large quantities to take advantage of economies of scale. Final consumers often want to purchase in small quantities. This difference between the producer and consumer is a:

Correct AnswerverifiedShow Answer

To reduce conflicts in channels, a firm should:

Correct AnswerverifiedShow Answer

Intermediaries are needed MOST when the desired degree of market exposure is:

Correct AnswerverifiedShow Answer

Direct-to-customer channels are rarely used in business markets because they are much more expensive and less efficient than using intermediaries.

Correct AnswerverifiedShow Answer

Producers can positively manage channel conflict using all the following tactics except:

Correct AnswerverifiedShow Answer

A manufacturer may be forced to use multichannel distribution because a big retail chain wants to deal directly with it instead of wholesalers.

Correct AnswerverifiedShow Answer

A good "channel captain" knows that:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Strategy "Place" decisions would NOT include:

Correct AnswerverifiedShow Answer

A convenience product would probably be sold using:

Correct AnswerverifiedShow Answer

Which of the following statements about Place is FALSE?

Correct AnswerverifiedShow Answer

A wholesaler might help a producer by reducing the producer's need for market research.

Correct AnswerverifiedShow Answer

In "traditional channel systems," the channel members:

Correct AnswerverifiedShow Answer

______________ means selling a product through only one wholesaler or retailer in a particular geographic area.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Producers who consider handling the entire distribution job themselves may be especially inclined to do so because:

Correct AnswerverifiedShow Answer

Business products tend to be sold direct to customers because compared to consumer products:

Correct AnswerverifiedShow Answer

Intensive distribution is selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.

Correct AnswerverifiedShow Answer

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