Question 1

Compared to intensive distribution,selective distribution gives a producer a greater opportunity for profit but usually makes it more difficult for intermediaries to make a profit.

Accepted Answer

A) True 
 B)False

Question 2

"Discrepancies of quantity" occur because

Accepted Answer

A)   producers seek economies of scale.
B)   most intermediaries specialize in selected product lines and buy in large enough quantities to get a good price.
C)   adding intermediaries in a channel of distribution increases the cost of getting products to consumers.
D)   consumers want the convenience of buying many different types of products at one time.
E)   all of these reasons are correct.F) B) and E)
G) A) and D)

Question 3

Yukon Sportswear,a manufacturer of textile products,bought out the wholesaler that had been handling its distribution in Canada.This is an example of:

Accepted Answer

A)   dual distribution.
B)   reverse distribution.
C)   a contractual channel system.
D)   vertical integration.
E)   accumulating.F) A) and E)
G) A) and C)

Question 4

Channel specialists use the regrouping activities of sorting and assorting to resolve ________.

Accepted Answer

A)   discrepancies of time
B)   discrepancies of quantity
C)   discrepancies of assortment
D)   discrepancies of place
E)   discrepancies of needF) A) and C)
G) C) and D)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Question 7

A type of vertical integration system that develops by acquiring firms at different levels of channel activity is called:

Accepted Answer

A)   Corporate
B)   Traditional
C)   Administered
D)   Contractual
E)   TechnicalF) B) and E)
G) A) and C)

Question 8

Which of the following best illustrates "discrepancies of quantity"?

Accepted Answer

A)   Michelin makes tires, but most consumers also want a large selection of car-care services.
B)   Some stores sell large quantities of Michelin tires, but only small quantities of tires made by other companies.
C)   There are over 310 million consumers in the U.S. but only a small portion buy tires in any given year.
D)   Four firms make over 90 percent of all the tires sold in the United States.
E)   Michelin made millions of tires last year-but most customers bought only one set.F) D) and E)
G) A) and B)

Question 9

Which degree of market exposure would probably be most suitable for a heterogeneous shopping product which has achieved brand preference and sells for about $300?

Accepted Answer

A)   Concentrated distribution
B)   Selective distribution
C)   Administered distribution
D)   Intensive distribution
E)   Exclusive distributionF) A) and E)
G) B) and C)

Question 10

Selective distribution is growing in popularity because it provides 100 percent coverage of the market.

Accepted Answer

A) True 
 B)False

Question 11

Roscoe Hardware carries stock on the complete line of Ever-Green Push Lawn Mowers.Its competitor down the street sells the same mowers at a special price by special order but does not carry any inventory.This situation creates ________.

Accepted Answer

A)   vertical conflict
B)   exclusive distribution rights
C)   competitive discrepancy
D)   horizontal conflict
E)   reverse channelsF) A) and E)
G) A) and D)

Question 12

Multichannel distribution:

Accepted Answer

A)   may involve using both direct and indirect channels simultaneously.
B)   may offer producers a way to reach customers they would not be able to reach with a single channel.
C)   is becoming more common.
D)   may create channel conflict.
E)   All of these alternatives are correct.F) A) and D)
G) A) and E)

Question 13

Reverse channels may be used to retrieve products from:

Accepted Answer

A)   business customers
B)   intermediaries
C)   business customers and intermediaries
D)   final consumers
E)   all of theseF) C) and E)
G) B) and E)

Question 14

General Motors (GM),a U.S.automotive manufacturer,has an arrangement with Isuzu Motors of Japan in which the Isuzu Ascender is produced at the same GM manufacturing plant as the Chevrolet TrailBlazer and GMC Envoy.All three vehicles use the same basic platform and engine.This is an example of licensing.

Accepted Answer

A) True 
 B)False

Question 15

Reverse channels are used when multichannel distribution fails.

Accepted Answer

A) True 
 B)False

Question 16

"Discrepancies of assortment" means:

Accepted Answer

A)   some producers can produce more products than others.
B)   some consumers buy more products than others.
C)   consumers want more output than producers can make.
D)   there are more producers than wholesalers.
E)   the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users.F) C) and E)
G) None of the above

Question 17

_____ distribution is commonly used for convenience products and business supplies.

Accepted Answer

A)   Internal
B)   Intensive
C)   Selective
D)   Specialized
E)   ExclusiveF) B) and C)
G) A) and D)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements about direct-to-customer channels is False?

Accepted Answer

A)   Most consumer products are sold via direct-to-customer channels.
B)   Producers must sometimes use direct-to-customer channels because suitable intermediaries are not available.
C)   Many business products are sold via direct-to-customer channels.
D)   Service firms often use direct-to-customer channels.
E)   "Direct marketing" does not mean that a firm uses direct-to-customer channels.F) D) and E)
G) All of the above

Question 20

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) A) and E)
G) A) and B)

Exam 12: Place and Development of Channel Systems

Which degree of market exposure would probably be most suitable for a heterogeneous shopping product which has achieved brand preference and sells for about $300?

Correct Answer
verified

Yukon Sportswear,a manufacturer of textile products,bought out the wholesaler that had been handling its distribution in Canada.This is an example of:

Correct Answer
verified

Compared to intensive distribution,selective distribution gives a producer a greater opportunity for profit but usually makes it more difficult for intermediaries to make a profit.

Correct Answer
verified

A type of vertical integration system that develops by acquiring firms at different levels of channel activity is called:

Correct Answer
verified

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 Answer
verified

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

Correct Answer
verified

Reverse channels are used when multichannel distribution fails.

Correct Answer
verified

Correct Answer
verified

Roscoe Hardware carries stock on the complete line of Ever-Green Push Lawn Mowers.Its competitor down the street sells the same mowers at a special price by special order but does not carry any inventory.This situation creates ________.

Correct Answer
verified

Multichannel distribution:

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

Correct Answer
verified

"Discrepancies of assortment" means:

Correct Answer
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Which of the following statements about direct-to-customer channels is False?

Correct Answer
verified

Reverse channels may be used to retrieve products from:

Correct Answer
verified

Selective distribution is growing in popularity because it provides 100 percent coverage of the market.

Correct Answer
verified

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 Answer
verified

_____ distribution is commonly used for convenience products and business supplies.

Correct Answer
verified

Channel specialists use the regrouping activities of sorting and assorting to resolve ________.

Correct Answer
verified

"Discrepancies of quantity" occur because

Correct Answer
verified

Which of the following best illustrates "discrepancies of quantity"?

Correct Answer
verified

Exam 12: Place and Development of Channel Systems

Which degree of market exposure would probably be most suitable for a heterogeneous shopping product which has achieved brand preference and sells for about $300?

Correct AnswerverifiedShow Answer

Yukon Sportswear,a manufacturer of textile products,bought out the wholesaler that had been handling its distribution in Canada.This is an example of:

Correct AnswerverifiedShow Answer

Compared to intensive distribution,selective distribution gives a producer a greater opportunity for profit but usually makes it more difficult for intermediaries to make a profit.

Correct AnswerverifiedShow Answer

A type of vertical integration system that develops by acquiring firms at different levels of channel activity is called:

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

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

Correct AnswerverifiedShow Answer

Reverse channels are used when multichannel distribution fails.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Roscoe Hardware carries stock on the complete line of Ever-Green Push Lawn Mowers.Its competitor down the street sells the same mowers at a special price by special order but does not carry any inventory.This situation creates ________.

Correct AnswerverifiedShow Answer

Multichannel distribution:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

"Discrepancies of assortment" means:

Correct AnswerverifiedShow Answer

Which of the following statements about direct-to-customer channels is False?

Correct AnswerverifiedShow Answer

Reverse channels may be used to retrieve products from:

Correct AnswerverifiedShow Answer

Selective distribution is growing in popularity because it provides 100 percent coverage of the market.

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

_____ distribution is commonly used for convenience products and business supplies.

Correct AnswerverifiedShow Answer

Channel specialists use the regrouping activities of sorting and assorting to resolve ________.

Correct AnswerverifiedShow Answer

"Discrepancies of quantity" occur because

Correct AnswerverifiedShow Answer

Which of the following best illustrates "discrepancies of quantity"?

Correct AnswerverifiedShow Answer

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