Question 1

If a product has low unit value and high frequency of purchase with customer expectation of convenience,it is most likely to require a(n) _____ form of distribution.

Accepted Answer

A)   focused
B)   intensive
C)   exclusive
D)   selectiveE) B) and D)
F) A) and B)

Question 2

Which of the following is true about a contractual vertical marketing system?

Accepted Answer

A)   It unites independent retailers for the purposes of pool buying to improve their competitive position.
B)   It has a strong channel leader at or near the end of the channel.
C)   It is exemplified by the Dunkin' donuts franchise system.
D)   It involves single ownership of two or more levels of a channel.E) None of the above
F) A) and D)

Question 3

A computer manufacturer sells computers through a variety of methods which include telemarketing,catalog selling,cable selling,and online selling.Which of the following channels is the manufacturer using?

Accepted Answer

A)   Horizontal channel
B)   Direct channel
C)   Peer-to-peer marketing
D)   Administered marketingE) A) and B)
F) A) and C)

Question 4

Which of the following is an example of backward integration?

Accepted Answer

A)   A coffee producer acquiring a chain of coffee shops.
B)   A car manufacturer acquiring an automobile spare parts manufacturer.
C)   A cigarette manufacturer buying a convenience store.
D)   A fleece fabric manufacturer buying a maker of winter clothing.E) C) and D)
F) All of the above

Question 5

In terms of distribution costs,the total system should be designed to minimize costs for a given level of service.Which of the following is a major distribution cost that needs to be minimized?

Accepted Answer

A)   Product mix cost
B)   Depreciation cost
C)   Packaging cost
D)   New customer costE) All of the above
F) None of the above

Question 6

A manufacturer utilizing a selective form of distribution coverage:

Accepted Answer

A)   gains the maximum degree of control over wholesalers and retailers.
B)   attempts to gain exposure through as many wholesalers and retailers as possible.
C)   severely limits distribution; intermediaries are provided exclusive rights within a territory.
D)   limits the use of intermediaries to the ones believed to be the best available in the geographic area.E) B) and C)
F) None of the above

Question 7

Which of the following is a nonstore method of retailing?

Accepted Answer

A)   Warehousing
B)   Mass merchandising
C)   Electronic exchanges
D)   Category killersE) A) and B)
F) A) and C)

Question 8

While uses of _____ for airline insurance and concert and game tickets are not unusual,this method has limited potential for most products.

Accepted Answer

A)   catalogs and direct mail
B)   vending machines
C)   direct sales
D)   the InternetE) None of the above
F) C) and D)

Question 9

_____ carry broad product assortments and compete on the basis of offering a good selection in a number of different product categories and offering lower prices on products in their large assortments.

Accepted Answer

A)   Specialty stores
B)   Mass merchandisers
C)   Convenience stores
D)   Category killersE) A) and B)
F) None of the above

Question 10

_____ vertical marketing systems involve single ownership of two or more levels of a channel.

Accepted Answer

A)   Administered
B)   Contractual
C)   Structured
D)   CorporateE) A) and B)
F) C) and D)

Question 11

Sears obtains over 50 percent of the goods it sells in its retail stores from companies that it partially or wholly owns.Sears participates in a _____ vertical marketing system.

Accepted Answer

A)   retail cooperative
B)   contractual
C)   selective
D)   corporateE) A) and B)
F) A) and C)

Question 12

If a product requires certain specialized selling effort or investment in unique facilities or large inventories,the _____ distribution arrangement is usually selected.

Accepted Answer

A)   exclusive
B)   geodemographic
C)   intensive
D)   selectiveE) B) and D)
F) A) and D)

Question 13

Under which of the following conditions may a manufacturer wish to have its own sales force?

Accepted Answer

A)   The manufacturer is a small player in its category.
B)   The market for its products is geographically concentrated.
C)   The products require minimal presale and postsale services.
D)   The market consists of many small customers.E) A) and B)
F) C) and D)

Question 14

Which of the following is a reason for organizations to use the direct channel for distributing organizational goods?

Accepted Answer

A)   Structure of most organizational markets often have relatively few and small customers.
B)   Manufacturers' lack of economic power for hiring intermediaries.
C)   Their markets are geographically dispersed.
D)   Many organizational products need a great deal of presale and postsale services.E) None of the above
F) All of the above

Question 15

A manufacturer utilizing an intensive form of distribution coverage:

Accepted Answer

A)   gains the maximum degree of control over wholesalers and retailers.
B)   attempts to gain exposure through as many wholesalers and retailers as possible.
C)   severely limits distribution; intermediaries are provided exclusive rights within a territory.
D)   limits the use of intermediaries to the ones believed to be the best available in the geographic area.E) All of the above
F) A) and B)

Question 16

The manufacturer of which of the following products is most likely to use selective distribution?

Accepted Answer

A)   Paper clips
B)   Microwave oven
C)   Nail clippers
D)   Aerated drinksE) All of the above
F) A) and D)

Question 17

A _____ is the combination of institutions through which a seller markets products to the user.

Accepted Answer

A)   marketing node
B)   distribution channel
C)   sales consortium
D)   logistics organizationE) B) and D)
F) B) and C)

Question 18

Which of the following views of distribution channels recognizes that much can be gained by developing long-term commitments and harmony among channel members?

Accepted Answer

A)   Channel integration
B)   Vertical marketing
C)   Relationship marketing
D)   Conflict resolutionE) C) and D)
F) B) and D)

Question 19

Appliances,home furnishings,and better clothing are usually distributed _____.

Accepted Answer

A)   geodemographically
B)   intensively
C)   exclusively
D)   selectivelyE) A) and C)
F) B) and C)

Question 20

Which of the following is an example of forward integration?

Accepted Answer

A)   A chain of coffee shops acquiring a coffee producer.
B)   A car manufacturer acquiring an automobile spare parts manufacturer.
C)   A cigarette manufacturer buying a convenience store.
D)   A laptop manufacturer buying a computer chip maker.E) A) and D)
F) B) and D)

Exam 10: Distribution Strategy

Which of the following is an example of forward integration?

Correct AnswerverifiedShow Answer

Which of the following views of distribution channels recognizes that much can be gained by developing long-term commitments and harmony among channel members?

Correct AnswerverifiedShow Answer

_____ carry broad product assortments and compete on the basis of offering a good selection in a number of different product categories and offering lower prices on products in their large assortments.

Correct AnswerverifiedShow Answer

Which of the following is an example of backward integration?

Correct AnswerverifiedShow Answer

The manufacturer of which of the following products is most likely to use selective distribution?

Correct AnswerverifiedShow Answer

In terms of distribution costs,the total system should be designed to minimize costs for a given level of service.Which of the following is a major distribution cost that needs to be minimized?

Correct AnswerverifiedShow Answer

Sears obtains over 50 percent of the goods it sells in its retail stores from companies that it partially or wholly owns.Sears participates in a _____ vertical marketing system.

Correct AnswerverifiedShow Answer

While uses of _____ for airline insurance and concert and game tickets are not unusual,this method has limited potential for most products.

Correct AnswerverifiedShow Answer

Appliances,home furnishings,and better clothing are usually distributed _____.

Correct AnswerverifiedShow Answer

Which of the following is true about a contractual vertical marketing system?

Correct AnswerverifiedShow Answer

Under which of the following conditions may a manufacturer wish to have its own sales force?

Correct AnswerverifiedShow Answer

A manufacturer utilizing an intensive form of distribution coverage:

Correct AnswerverifiedShow Answer

A manufacturer utilizing a selective form of distribution coverage:

Correct AnswerverifiedShow Answer

If a product requires certain specialized selling effort or investment in unique facilities or large inventories,the _____ distribution arrangement is usually selected.

Correct AnswerverifiedShow Answer

A _____ is the combination of institutions through which a seller markets products to the user.

Correct AnswerverifiedShow Answer

Which of the following is a nonstore method of retailing?

Correct AnswerverifiedShow Answer

If a product has low unit value and high frequency of purchase with customer expectation of convenience,it is most likely to require a(n) _____ form of distribution.

Correct AnswerverifiedShow Answer

_____ vertical marketing systems involve single ownership of two or more levels of a channel.

Correct AnswerverifiedShow Answer

Which of the following is a reason for organizations to use the direct channel for distributing organizational goods?

Correct AnswerverifiedShow Answer

A computer manufacturer sells computers through a variety of methods which include telemarketing,catalog selling,cable selling,and online selling.Which of the following channels is the manufacturer using?

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