Question 1

A manufacturer utilizing an exclusive form of distribution coverage:

Accepted Answer

A)  manufactures products that are characterized by low unit value and high frequency of purchase.
B)  attempts to gain exposure through as many wholesalers and retailers as possible.
C)  severely limits distribution,and intermediaries are provided exclusive rights within a particular territory.
D)  limits the use of intermediaries to the ones believed to be the best available in the geographic area.

Question 2

Which of the following is an example of a direct channel of distribution?

Accepted Answer

A)  Wholesaling
B)  Catalog selling
C)  Agent selling
D)  Retailing

Question 3

In the context of marketing intermediaries,a(n) _____ is defined as a business unit that negotiates purchases,sales,or both but does not take title to the goods in which it deals.

Accepted Answer

A)  middleman
B)  agent
C)  initiator
D)  wholesaler

Question 4

A manufacturer utilizing an intensive form of distribution coverage:

Accepted Answer

A)  usually produces products that require certain specialized selling effort or investment in unique facilities.
B)  manufactures products that are characterized by a low unit value and a high frequency of purchase.
C)  severely limits distribution and provides intermediaries with exclusive rights within a territory.
D)  limits the use of intermediaries to the ones believed to be the best available in the geographic area.

Question 5

One of the limitations of franchising is that it:

Accepted Answer

A)  provides less opportunities for additional profits through supplies sold to franchisees.
B)  depends heavily on franchisees for financial success without full control of them.
C)  requires many company managers and employees,thus increasing costs.
D)  prevents expansion requiring more capital,resulting in slower market penetration.

Question 6

_____ manufacturers are most likely to use intensive distribution.

Accepted Answer

A)  Personal computer
B)  Laser printer
C)  Home furnishings
D)  Soda

Question 7

Anchor Inc.is a retailer that acts as an intermediary for buyers and sellers.As a marketing intermediary,it serves several functions that include buying,selling,and assuming title risks for a manufacturer's products.Apart from them,it has to serve the function of facilitating a purchase order.In order to do so,which of the following should the company do?

Accepted Answer

A)  Inspect,test,and judge products to assign them a quality grade.
B)  Create product assortments from several sources to serve customers.
C)  Physically move products to customers.
D)  Assemble products at a convenient location to offer better customer service.

Question 8

_____ is a manufacturer's purchase of wholesalers or retailers who distribute its products.

Accepted Answer

A)  Forward integration
B)  Contractual marketing
C)  A manufacturer-sponsored voluntary chain
D)  A franchising program

Question 9

_____ is the purchase by wholesalers or retailers of channel members above them.

Accepted Answer

A)  Backward integration
B)  Contractual marketing
C)  Parallel ownership
D)  Franchising system

Question 10

A _____ is the combination of institutions through which a seller markets products to organizational buyers or ultimate consumers.

Accepted Answer

A)  marketing node
B)  channel of distribution
C)  sales consortium
D)  logistics conduit

Question 11

In the context of channels of distribution,_____ are used in organizational markets when there is a large number of buyers but each purchases a small amount of a product.

Accepted Answer

A)  wholesalers
B)  distributors
C)  agents
D)  retailers

Question 12

A retail cooperative organization,a wholesaler-sponsored voluntary chain,and various franchising programs are the three major types of _____ vertical marketing systems.

Accepted Answer

A)  administered
B)  contractual
C)  structured
D)  corporate

Question 13

Online retailing provides an advantage for marketers by:

Accepted Answer

A)  being very effective in business-to-consumer markets than in business-to-business markets.
B)  being extremely cost-efficient by reducing the need for paper catalogs.
C)  providing high entry barriers,leading e-marketers to overemphasize order-taking.
D)  expanding the markets to people who are willing and able to purchase electronically.

Question 14

GreenFizz,a popular beverage manufacturer,licenses wholesalers in various markets to buy its syrup concentrate.These wholesalers are then allowed to process it further by carbonating and packaging GreenFizz's products to sell to retailers in their local markets.In this case,GreenFizz is participating in a(n) _____ vertical marketing system.

Accepted Answer

A)  selective
B)  administered
C)  corporate
D)  contractual

Question 15

In the context of channels of distribution,_____ are used in organizational markets in cases where manufacturers do not wish to have their own sales forces.

Accepted Answer

A)  facilitators
B)  distributors
C)  agents
D)  jobbers

Question 16

In which of the following forms of distribution coverage does the manufacturer attempt to gain exposure through as many wholesalers and retailers as possible?

Accepted Answer

A)  Focused distribution
B)  Intensive distribution
C)  Exclusive distribution
D)  Selective distribution

Question 17

Which of the following is true of catalogs and direct mail?

Accepted Answer

A)  They serve to increase overhead costs.
B)  They facilitate in-depth descriptions of specialty merchandise goods.
C)  They are considered ineffective channels for targeting unique markets that are geographically dispersed.
D)  They offer better visual display of products than television home shopping.

Question 18

Which of the following is true of mass merchandisers?

Accepted Answer

A)  They handle deep assortments in a limited number of product categories.
B)  They compete on the basis of providing variety in different product categories and low-priced products in their large assortments.
C)  They are retailers whose primary advantages to consumers are suitable location,close-in parking,and easy entry and exit.
D)  They are large,low-priced limited-line retail chains that attempt to capitalize and establish themselves in a single product category.

Question 19

Which of the following is an example of forward integration in a corporate vertical marketing system?

Accepted Answer

A)  A car manufacturer acquiring a retail showroom
B)  A car dealer achieving a direct channel of distribution without ownership
C)  A grocery wholesaler buying a sugar manufacturer
D)  A laptop distributor buying a computer chip maker

Question 20

Which of the following is true of the direct sales method of retailing?

Accepted Answer

A)  It is ineffective in providing detailed information about a product.
B)  It is not suited for marketing products like home appliances and kitchenware.
C)  It is quite expensive,and consumers do not want to pay the higher prices needed to cover the high costs of this method of retailing.
D)  It is the fastest-growing type of retailing and is an alternative to the setting up of virtual stores that incur more costs.

Exam 10: Distribution Strategy

In the context of marketing intermediaries,a(n) _____ is defined as a business unit that negotiates purchases,sales,or both but does not take title to the goods in which it deals.

Correct Answer
verified

_____ is a manufacturer's purchase of wholesalers or retailers who distribute its products.

Correct Answer
verified

A retail cooperative organization,a wholesaler-sponsored voluntary chain,and various franchising programs are the three major types of _____ vertical marketing systems.

Correct Answer
verified

Which of the following is true of catalogs and direct mail?

Correct Answer
verified

In the context of channels of distribution,_____ are used in organizational markets in cases where manufacturers do not wish to have their own sales forces.

Correct Answer
verified

_____ is the purchase by wholesalers or retailers of channel members above them.

Correct Answer
verified

Which of the following is an example of forward integration in a corporate vertical marketing system?

Correct Answer
verified

Online retailing provides an advantage for marketers by:

Correct Answer
verified

A _____ is the combination of institutions through which a seller markets products to organizational buyers or ultimate consumers.

Correct Answer
verified

A manufacturer utilizing an exclusive form of distribution coverage:

Correct Answer
verified

_____ manufacturers are most likely to use intensive distribution.

Correct Answer
verified

A manufacturer utilizing an intensive form of distribution coverage:

Correct Answer
verified

Which of the following is true of the direct sales method of retailing?

Correct Answer
verified

One of the limitations of franchising is that it:

Correct Answer
verified

Which of the following is an example of a direct channel of distribution?

Correct Answer
verified

Correct Answer
verified

In the context of channels of distribution,_____ are used in organizational markets when there is a large number of buyers but each purchases a small amount of a product.

Correct Answer
verified

In which of the following forms of distribution coverage does the manufacturer attempt to gain exposure through as many wholesalers and retailers as possible?

Correct Answer
verified

Correct Answer
verified

Which of the following is true of mass merchandisers?

Correct Answer
verified

Exam 10: Distribution Strategy

In the context of marketing intermediaries,a(n) _____ is defined as a business unit that negotiates purchases,sales,or both but does not take title to the goods in which it deals.

Correct AnswerverifiedShow Answer

_____ is a manufacturer's purchase of wholesalers or retailers who distribute its products.

Correct AnswerverifiedShow Answer

A retail cooperative organization,a wholesaler-sponsored voluntary chain,and various franchising programs are the three major types of _____ vertical marketing systems.

Correct AnswerverifiedShow Answer

Which of the following is true of catalogs and direct mail?

Correct AnswerverifiedShow Answer

In the context of channels of distribution,_____ are used in organizational markets in cases where manufacturers do not wish to have their own sales forces.

Correct AnswerverifiedShow Answer

_____ is the purchase by wholesalers or retailers of channel members above them.

Correct AnswerverifiedShow Answer

Which of the following is an example of forward integration in a corporate vertical marketing system?

Correct AnswerverifiedShow Answer

Online retailing provides an advantage for marketers by:

Correct AnswerverifiedShow Answer

A _____ is the combination of institutions through which a seller markets products to organizational buyers or ultimate consumers.

Correct AnswerverifiedShow Answer

A manufacturer utilizing an exclusive form of distribution coverage:

Correct AnswerverifiedShow Answer

_____ manufacturers are most likely to use intensive distribution.

Correct AnswerverifiedShow Answer

A manufacturer utilizing an intensive form of distribution coverage:

Correct AnswerverifiedShow Answer

Which of the following is true of the direct sales method of retailing?

Correct AnswerverifiedShow Answer

One of the limitations of franchising is that it:

Correct AnswerverifiedShow Answer

Which of the following is an example of a direct channel of distribution?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the context of channels of distribution,_____ are used in organizational markets when there is a large number of buyers but each purchases a small amount of a product.

Correct AnswerverifiedShow Answer

In which of the following forms of distribution coverage does the manufacturer attempt to gain exposure through as many wholesalers and retailers as possible?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is true of mass merchandisers?

Correct AnswerverifiedShow Answer

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