Ch 17 Review, Ch 11 Review, Ch 10 Review

10) To what does the term inventory refer? 10) ______ A) It refers to the amount of goods being stored. B) It refers to minimizing storage costs. C) It refers to the quality of goods being stored. D) It refers to the amount of goods being sold. E) It refers to the marketing function of holding goods.

A

103) From a producer's viewpoint, which of the following is an advantage of intensive distribution over selective distribution? 103) _____ A) Intermediaries' facilities will be more convenient for customers. B) Intermediaries can be required to carry larger stocks. C) Better service can be required from intermediaries. D) More aggressive selling can be expected from intermediaries. E) Intermediaries' price-cutting may be reduced

A

103) From a producer's viewpoint, which of the following is an advantage of intensive distribution over selective distribution? 103) _____ A) Intermediaries' facilities will be more convenient for customers. B) Intermediaries can be required to carry larger stocks. C) Better service can be required from intermediaries. D) More aggressive selling can be expected from intermediaries. E) Intermediaries' price-cutting may be reduced.

A

13) Channel systems in which the various channel members make little or no effort to cooperate with each other are called ______________ systems. 13) ______ A) traditional channel B) administered channel C) franchising D) direct-to-customer channel E) vertically integrated

A

17) Which of the following do firms using value pricing tend to avoid? 17) ______ A) Setting a high price only because consumers already know the brand name B) Establishing a price level that gives the target market superior customer value C) Focusing on customer requirements and adopting a relevant marketing mix D) Delivering unexpected services which haven't been stated to the customer E) Building a relationship with a customer which raises their expectations

A

2) Trying to get the "cream" of a market (i.e., the top of a demand curve) at a high price before aiming at the more price-sensitive customers is consistent with a(an) ________. 2) _______ A) skimming pricing policy B) sales-oriented pricing policy C) penetration pricing policy D) flexible-price policy E) introductory price dealing policy

A

20) Which of the following is NOT a Place decision? 20) ______ A) Recruiting, selecting and managing the sales force. B) Degree of market exposure desired. C) Customer service level desired. D) Types of intermediaries needed. E) Type of distribution channel to use.

A

26) Which of the following is a disadvantage of flexible pricing? 26) ______ A) It can cause discontent among customers who realize they have paid a higher price than others. B) It allows a salesperson to adjust the price in response to competition. C) It allows a salesperson to adjust the price depending on his customer. D) It results in broadcasting a price that the competition can undercut. E) It leaves opportunities for sales by not adjusting to customers.

A

27) Which of the following statements about direct-to-customer channels is False? 27) ______ 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) Service firms often use direct-to-customer channels. D) "Direct marketing" does not mean that a firm uses direct-to-customer channels. E) Many business products are sold via direct-to-customer channels.

A

32) Which of the following is a SALES-ORIENTED pricing objective? 32) ______ A) Growth in market share B) Target return C) Meeting competition D) Nonprice competition E) Satisfactory profits

A

34) _____ distribution is commonly used for convenience products and business supplies. 34) ______ A) Intensive B) Internal C) Selective D) Specialized E) Exclusive

A

38) Which of the following pricing policies involves entering a market with a single low price and not significantly increasing the price even upon gaining a major market share? 38) ______ A) Penetration price policy B) Zone pricing policy C) Introductory price dealing D) Skimming price policy E) Temporary price cut policy

A

47) Which of the following statements about Place decisions is True? 47) ______ A) Different market segments may require separate Place arrangements. B) The product life cycle is not related to Place objectives. C) Place decisions are the same for any market. D) Place decisions are short-term decisions that are easy to change. E) Product classes are not related to Place objectives.

A

48) Ravi Singh is working his way through college as an independent distributor of the Rapier Knife Co. The Rapier product line includes kitchen knives, hunting knives, and other special-purpose cutlery. Ravi makes sales presentations to potential customers in their homes. If a customer wants to make a purchase, Ravi buys the knives from Rapier and sells them to the customer at a markup. For example, Rapier's most popular knife is a chef's knife that Ravi buys for $25 and resells to the consumer for $50. Ravi: 48) ______ A) Is engaged in direct selling, but is part of an indirect channel. B) Is engaged in direct marketing. C) Is part of a direct-to-customer channel. D) None of these alternatives is correct.

A

5) A rebate is 5) _______ A) a refund paid to consumers after a purchase. B) a temporary price cut to attract customers. C) a document detailing pricing changes. D) a temporary discount from the price list. E) a reduction in price to encourage buyers to pay their bills quickly.

A

5) ______________ means selling a product only through those intermediaries who will give the product special attention. 5) _______ A) Selective distribution B) Intensive distribution C) Multichannel distribution D) Exclusive distribution E) Administered distribution

A

56) With respect to consumer products, which of the following is the most common system for distributing consumer products in the U.S.? 56) ______ A) Vertical marketing systems B) Direct channel systems C) Traditional channel systems D) Horizontal marketing systems E) None of these is a good answer

A

58) ______________ (as a way to enter foreign markets) means selling the right to use some process, trademark, patent, or other right for a fee. 58) ______ A) licensing B) Direct investment C) Management contracting D) Joint venturing E) Exporting

A

60) Intensive distribution at the retail level would probably be most appropriate for: 60) ______ A) Batteries B) Sports coats C) 10 speed bicycles D) 35mm cameras E) Tennis rackets

A

66) In a retailer-led channel system, strategy decisions ________. 66) ______ A) on Promotion are handled by retailers B) on Product are handled by retailers C) on Price are completely handled by producers D) on Place are not a concern for retailers E) on target customers are handled by producers

A

71) ________ conflict occurs between firms at the same level in the channel of distribution. 71) ______ A) Horizontal B) Cyclical C) Diagonal D) Parallel E) Vertical

A

75) When Fresh Produce Wholesaler Inc. buys fruits and vegetables from a variety of different farmers, and then takes large bushels and breaks them into smaller package sizes, Fresh Produce is addressing ________. 75) ______ A) discrepancies of quantity B) discrepancies of need C) discrepancies of assortment D) discrepancies of time E) discrepancies of place

A

76) Which of the following favors low-cost retailers? 76) ______ A) Homogeneous shopping goods B) Household shopping goods C) Specialty shopping goods D) Heterogeneous shopping goods E) Physical shopping goods

A

85) The regrouping activity which involves collecting products from many small producers so that the products can be handled more economically further along in the channel is called: 85) ______ A) accumulating. B) sorting. C) assorting. D) bulk-breaking. E) wholesaling.

A

93) Strategy "Place" decisions would NOT include: 93) ______ A) how to train wholesalers' salespeople. B) type of physical distribution facilities. C) degree of market exposure desired. D) distribution customer service level. E) type of channel of distribution.

A

96) Small farmers in the mountains of Peru pick coffee beans by hand, obtaining only a bucket a day. Then they sell them to buyers who put the beans in large bags to be shipped to processors. This regrouping activity is called: 96) ______ A) Accumulating B) Sorting C) Assorting D) Wholesaling E) Bulk-breaking

A

97) Dividing large quantities into smaller quantities as products get closer to the final market is called ________. 97) ______ A) bulk-breaking B) sorting C) dividing D) assorting E) accumulating

A

1) The physical distribution ________________________ is how rapidly and dependably a firm can deliver merchandise in demand through the appropriate channels. 1) _______ A) trade-offs service level B) customer service level C) efficiency service level D) product service level E) standard service level

B

10) 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 ________. 10) ______ A) international distribution B) selective distribution C) exclusive distribution D) multichannel distribution E) intensive distribution

B

10) Trying to sell a firm's new product to a large market at one low price is known as ________. 10) ______ A) a skimming pricing policy B) a penetration pricing policy C) introductory price dealing D) a flexible-pricing policy E) nonprice competition

B

101) The text suggests that a "channel captain" should be: 101) _____ A) a strong wholesaler. B) any of these-i.e. whoever can provide leadership. C) a large retailer. D) a market-oriented producer.

B

11) When Renault Motor Co. builds a new production facility in Venezuela and it is the sole owner of the facility, this is an example of a(n) ________ investment approach. 11) ______ A) licensing B) direct C) management contracting D) indirect E) joint venture

B

11) Which of the following is LEAST LIKELY to be in the "something of value" part of the "price equation" for CHANNEL MEMBERS? 11) ______ A) promotion aimed at customers B) rebates C) price-level guarantees D) service-repair facilities E) convenient packaging for handling

B

12) A marketing manager may choose a pricing objective that is 12) ______ A) status quo oriented. B) any of these-depending on the situation. C) profit oriented. D) sales oriented.

B

14) Which of the following is NOT one of the degrees of market exposure? 14) ______ A) Multichannel distribution B) Selective distribution C) Intensive distribution D) Exclusive distribution

B

16) A vertical marketing system owned and operated by a single firm is called a ________ channel system. 16) ______ A) nonprofit B) traditional C) corporate D) contractual E) administered

B

20) Regarding alternative transporting modes: 20) ______ A) waterways are slow, costly, and unable to handle a variety of shipments. B) trucks are good for speed, frequency, dependability, and number of locations served. C) pipelines are slower and less dependable than water transport, but also less expensive and able to serve more locations. D) airways are faster, cheaper, and more dependable than railways.

B

22) Considering weight, the most expensive cargo transporting mode is ________. 22) ______ A) trucks B) airfreight C) railroads D) inland waterways E) pipelines

B

22) The owners of all the Chrysler auto dealerships in a large metropolitan area have an informal meeting during a golf outing. During the meeting, they agree to limit their orders of a new model of automobile that has received excellent reviews from the trade press for its styling and handling characteristics. Restricting orders will permit the dealers to sell these models at a price that will be at or above the manufacturer's suggested retail price for the vehicle. As a result, the dealers will make more profit on each vehicle sold due to the high demand for the new model. This type of agreement would be viewed by the courts as: 22) ______ A) An exclusive distribution arrangement that is legal. B) Horizontal collusion that is illegal. C) Horizontal collusion that is legal. D) Vertical collusion that is legal. E) Vertical collusion that is illegal.

B

23) "Price fixing" means ________. 23) ______ A) selling products of like grade and quality to different buyers at different prices B) competitors getting together to raise, lower, or stabilize prices C) changing a price that was set at the wrong level by the financial manager D) a firm consciously setting its prices E) pricing a product that will be sold in a foreign market at a level below the cost of production

B

25) An "all the traffic will bear" pricing objective is called ________ objective. 25) ______ A) target return B) profit maximization C) nonprice competition D) meeting competition E) growth in market share

B

26) To minimize its own risks, the Boomtown Petroleum Corp. of Houston, Texas, operates a South American oil refinery that is owned by residents of that country. Boomtown is engaged in an activity known as: 26) ______ A) exporting. B) management contracting. C) licensing. D) direct investment. E) a joint venture.

B

29) A trade discount is also called a ________. 29) ______ A) cumulative quantity discount B) functional discount C) stock discount D) seasonal discount E) noncumulative quantity discount

B

33) Which of the following pricing objectives is a producer seeking when the producer tries to obtain some percent return on his investment? 33) ______ A) Meeting competition B) Target return C) Status quo D) Profit maximization E) Growth in market share

B

35) A one price policy means ________. 35) ______ A) offering the same price to customers, but the price depends on the store which is selling the product B) offering the same price to all customers who purchase products under the same conditions and in the same quantities C) equating price with the per-unit cost of production D) offering the same price on all its products irrespective of the manufacturing, designing, and marketing costs E) offering the same price to distributors, retailers, and customers

B

35) What do business product classes reflect? 35) ______ A) what intermediaries think about the products and how they should be marketed B) what buyers think about the products and how they are used C) what distributors think about the products and how they must be distributed D) what customers think about the products and how they must be priced E) what producers think about the products and how they are promoted

B

4) Considering weight, which one of the following transporting modes usually has the LOWEST cost? 4) _______ A) Railroads B) Waterways C) Trucks D) Pipelines E) Airways

B

40) The vertical marketing system in which control is maintained via informal cooperation among the channel members is a(n): 40) ______ A) Channel captain system. B) Administered channel system. C) Franchise channel system. D) Corporate channel system. E) Contractual channel system.

B

43) Traditional channel systems: 43) ______ A) Have channel members that look out for each other's best interest. B) Exhibit little cooperation between channel members. C) Have members that go to great lengths to cooperate with each other. D) Are characterized by strong ties between channel members. E) Usually feature a strong product-market commitment that is shared by all of the members of the channel

B

45) In "traditional channel systems," the channel members: 45) ______ A) consider traditional values-like cooperation and respect-as central to their relationship. B) make little or no effort to cooperate with each other. C) are integrated. D) have franchise contracts. E) usually have a common product-market commitment.

B

5) Use this information for question that refer to the United Tools case. Terry Harter is marketing manager for United Tools and Mike O'Reilly is the firm's logistics manager. They work together to make decisions about how to get United's hand and power tools to its customers-a mix of manufacturing plants and final consumers (who buy United tools at a hardware store). United Tools does not own its own transport facilities and it works with wholesalers to reach its business customers. Together, Harter and O'Reilly try to coordinate transporting, storing, and product handling activities to minimize cost while still achieving the customer service level their customers and intermediaries want. This usually requires that United keep an inventory of most of its products on hand, but demand for its products is fairly consistent over time so inventory is easy to manage. Harter has identified four options for physical distribution systems she could use to reach two of her key wholesalers, Ralston Supply and Ricotta Tool Co. The total cost for each option-and the distribution service levels that can be achieved-are as follows: Main feature of system Total Cost Distribution Service Level 1. Airfreight $1,000,000 95 percent 2. Inland Waterways $300,000 60 percent 3. Trucks $500,000 70 percent 4. Rail and regional warehouses $650,000 80 percent Ralston Supply expects a very high level (90 percent) of distribution customer service. Ricotta Tool Co. is willing to settle for a 70 percent customer service level, even if that means some products will occasionally be out of stock, if it gets products at a lower price. For its large retail hardware customers (like Home Depot), United regularly ships smaller orders directly to individual stores or in some cases to the retail chain's warehouses. Cross-country shipments usually go by rail while regional shipments usually go by truck. United's shipments to international markets often rely on containerization. The likely reason for this is that 5) _______ A) containerization allows a firm to carry less inventory. B) it makes it easier to move shipments between different transportation modes. C) the tools are shipped by airfreight. D) containerization is very useful for small, frequent shipments. E) all of these are benefits of containerization.

B

6) Use this information for question that refer to the United Tools case. Terry Harter is marketing manager for United Tools and Mike O'Reilly is the firm's logistics manager. They work together to make decisions about how to get United's hand and power tools to its customers-a mix of manufacturing plants and final consumers (who buy United tools at a hardware store). United Tools does not own its own transport facilities and it works with wholesalers to reach its business customers. Together, Harter and O'Reilly try to coordinate transporting, storing, and product handling activities to minimize cost while still achieving the customer service level their customers and intermediaries want. This usually requires that United keep an inventory of most of its products on hand, but demand for its products is fairly consistent over time so inventory is easy to manage. Harter has identified four options for physical distribution systems she could use to reach two of her key wholesalers, Ralston Supply and Ricotta Tool Co. The total cost for each option-and the distribution service levels that can be achieved-are as follows: Main feature of system Total Cost Distribution Service Level 1. Airfreight $1,000,000 95 percent 2. Inland Waterways $300,000 60 percent 3. Trucks $500,000 70 percent 4. Rail and regional warehouses $650,000 80 percent Ralston Supply expects a very high level (90 percent) of distribution customer service. Ricotta Tool Co. is willing to settle for a 70 percent customer service level, even if that means some products will occasionally be out of stock, if it gets products at a lower price. For its large retail hardware customers (like Home Depot), United regularly ships smaller orders directly to individual stores or in some cases to the retail chain's warehouses. Cross-country shipments usually go by rail while regional shipments usually go by truck. It appears that United Tools 6) _______ A) works to provide just-in-time delivery to both of its wholesalers. B) is implementing the physical distribution concept. C) uses the distribution system with the lowest transportation cost. D) needs to buy its own fleet of trucks. E) all of these alternatives are logical.

B

68) 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: 68) ______ A) multichannel distribution B) selective distribution C) international distribution D) exclusive distribution E) intensive distribution

B

69) For homogeneous shopping goods, marketers favor low-cost retailers primarily because ________. 69) ______ A) low-cost retailers provide extensive customer support B) customers focus on low prices C) customers focus on low quality D) low-cost retailers have many outlets close to customers E) customers focus on broad product assortments

B

7) If a firm's involvement in international marketing is limited to managing others' production facilities, it is using ________. 7) _______ A) direct investment B) management contracting C) exporting D) joint venturing E) licensing

B

72) A channel of distribution: 72) ______ A) is only needed when products are sold indirectly. B) is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user. C) must include one or more intermediaries. D) is only needed when products must be stored. E) None of these alternatives is a good answer.

B

74) Yukon Sportswear, a manufacturer of textile products, bought out the wholesaler that had been handling its distribution in Canada. This is an example of: 74) ______ A) reverse distribution. B) vertical integration. C) dual distribution. D) accumulating. E) a contractual channel system.

B

78) Intermediaries are needed MOST when the desired degree of market exposure is: 78) ______ A) administered. B) intensive. C) exclusive. D) selective. E) none of these is a good answer.

B

8) Which of the following is a status quo pricing objective? 8) _______ A) Maximize profits B) Meeting competition C) Growth in sales D) Satisfactory profits E) Growth in market share

B

81) Producers can positively manage channel conflict using all the following tactics except: 81) ______ A) serve different market segments through different channels. B) limit channel member relationships to buying and selling activity. C) identify a channel captain. D) offer different products through different channels. E) compensate participating channel members when conflict exists.

B

59) Reverse channels may be used to retrieve products from: 59) ______ A) intermediaries B) business customers and intermediaries C) business customers D) final consumers E) all of these

E

82) The regrouping activity which involves collecting products from many small producers so that the products can be handled more economically further along in the channel is called ________. 82) ______ A) sorting B) accumulating C) assorting D) wholesaling E) bulk-breaking

B

83) In which of the following distribution channels is the firm most likely to maintain control of the marketing mix? 83) ______ A) Horizontal B) Direct C) Layered D) Indirect E) Cooperative

B

87) In a _____ the whole channel focuses on the same target market at the end of the channel. 87) ______ A) parallel marketing system B) vertical marketing system C) linear marketing system D) diagonal marketing system E) horizontal marketing system

B

9) Some customers encourage the use of ________ by paying more attention to supposed price discounts than to the actual prices (and values). 9) _______ A) fix prices B) phony list prices C) fair trade prices D) unchanging list prices E) basic list prices

B

92) Using the ________ approach to entering international markets gives a firm complete control of marketing strategy planning in the foreign market. 92) ______ A) exporting B) direct investment C) management contracting D) joint venture E) licensing

B

1) A marketing manager might offer a cash discount to channel members to 1) _______ A) encourage them to buy in larger quantities. B) increase sales during a slow period. C) encourage buyers to pay their bills quickly. D) reduce shipping or selling costs. E) All of these alternatives are correct.

C

1) Which of the following is true of a producer-led channel system? 1) _______ A) Intermediaries select the target market, while producers develop the product. B) The system is effective when a producer's brand requires penetration pricing. C) The intermediaries do not support the producer at any stage. D) Producers fix the prices of their offerings. E) The system is implemented when producers are small.

C

12) About what percentage of the cost of hospital supplies in the U.S. is the result of logistics? 12) ______ A) 15 percent B) 25 percent C) 33 percent D) 40 percent E) 20 percent

C

13) Final customers or users are normally asked to pay ________ prices for products they buy. 13) ______ A) phony list B) wholesale list C) basic list D) discounted E) unchanging list

C

14) A manufacturer that transports products to retail outlets directly instead of using a distribution center is most likely to encounter which of the following? 14) ______ A) Slower delivery speed at equivalent cost B) Slower delivery speed at lower cost C) Faster delivery speed at higher cost D) Equivalent delivery speed at lower cost E) Faster delivery speed at equivalent cost

C

14) A(n) ________ involves making small payments for a product over time—usually with interest payments built in. 14) ______ A) rebate B) stocking allowance C) installment D) quantity discount E) investment

C

15) 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: 15) ______ A) Marketing discrepancy. B) Discrepancy of assortment. C) Discrepancy of quantity. D) Discrepancy adjustment. E) Regrouping activity.

C

15) Speeding the flow of products and avoiding unnecessary storing costs is the primary function of a ________. 15) ______ A) private warehouse B) commodity warehouse C) distribution center D) merchant wholesaler E) public warehouse

C

18) When a supplier's computer automatically processes an online order from a customer, schedules production activities for the order, and then sets up delivery of the finished product to the customer, what approach is being used? 18) ______ A) Contractual method B) Fast-schedule method C) Electronic data interchange (EDI) D) Just-in-time (JIT) delivery systems E) Containerization technique

C

2) If a large furniture retailer were to purchase Drexel (a manufacturer of sofas and chairs), this would be an example of: 2) _______ A) an administered channel system. B) a tying contract. C) vertical integration. D) horizontal integration. E) internal expansion.

C

21) "Discrepancies of quantity" occur because 21) ______ A) adding intermediaries in a channel of distribution increases the cost of getting products to consumers. B) most intermediaries specialize in selected product lines and buy in large enough quantities to get a good price. C) producers seek economies of scale. D) consumers want the convenience of buying many different types of products at one time. E) all of these reasons are correct.

C

21) The ________ concept says that all transporting, storing, and product-handling activities of a business and a channel system should be thought of as part of one system—one system that seeks to minimize the cost of distribution for a given customer service level. 21) ______ A) PERT B) product-market C) physical distribution D) unique marketing E) distribution center

C

24) The ________ bans "unfair or deceptive acts in commerce." 24) ______ A) Trade Name Amendment B) Excessive Punishment Act C) Wheeler-Lea Amendment D) Excessive Bail Act E) Emblems Act

C

27) What is the objective of a target return strategy? 27) ______ A) A specific share of competitors' sales. B) A specific mindshare of consumers. C) A specific level of profit. D) A specific share of the market. E) A specific sales volume.

C

29) Coca-Cola's carbonated soft drinks are available in millions of locations worldwide. This is an example of ____________ distribution. 29) ______ A) horizontal B) exclusive C) intensive D) selective E) administered

C

31) A firm acquiring another firm at a different level of activity within a channel of distribution is called ________. 31) ______ A) a regrouping activity B) dual distribution C) vertical integration D) horizontal integration E) a tying contract

C

31) A flexible-price policy means offering ________. 31) ______ A) the same product and different quantities to different customers at same prices B) different products and quantities to different customers at different prices C) the same product and quantities to different customers at different prices D) different products and quantities to different customers at same prices E) the same product and quantities to different customers at same prices

C

33) Sunkist sells foreign companies the right to use the Sunkist brand on soft drinks and citrus juices sold outside the United States. Sunkist gets both an initial fee and a royalty on the sale of goods bearing its brand name. Sunkist is engaged in: 33) ______ A) management contracting. B) exporting. C) licensing. D) joint venturing. E) None of these is a good answer.

C

34) A one-price policy means 34) ______ A) setting a price at the "right" level from the start and never changing it. B) selling to different customers at different prices. C) offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities. D) never using temporary sales or rebates. E) None of these alternatives is correct.

C

36) Offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities is a ______________ policy. 36) ______ A) value pricing B) skimming pricing C) one-price D) penetration pricing E) flexible-price

C

37) A discount that is offered to encourage buyers to stock earlier than present demand requires is ________. 37) ______ A) a credit discount B) a cash discount C) a seasonal discount D) a quantity discount E) "push money"

C

38) Channel specialists provide value to producers in the following circumstance ________. 38) ______ A) when the assortment and quantity of products customers want matches the assortment and quantity of products companies produce B) when customers prefer online purchasing C) when producers are located far from their customers and may not know how best to reach them D) when customers are well informed about their product choices E) when producers and customers exist in the same location

C

42) A channel system in which the various members agree by contract to cooperate with each other is called a(n) ________ system. 42) ______ A) multichannel distribution B) administered channel C) contractual channel D) vertically integrated channel E) traditional channel

C

44) Producers who consider handling the entire distribution job themselves may be especially inclined to do so because ________. 44) ______ A) intermediaries often serve customer needs better than producers and at lower cost B) direct distribution usually requires a significant investment in facilities, people, and information technology C) a channel partner (intermediary) is not available or will not cooperate D) many customers have established buying patterns that don't include buying direct from producers E) many customers have a preference for shopping at their favorite locations and won't be likely to change

C

63) Which of the following statements does not accurately characterize place decisions? 63) ______ A) Place decisions must analyze when customers will want or need products. B) Place decisions involve stocking the right quantities of products. C) Place decisions are easier to change compared to price, promotion, and product decisions. D) Place decisions involve identifying appropriate locations for products. E) Place decisions typically involve channel partners.

C

67) Intermediaries in indirect channels of distribution: 67) ______ A) Do not provide additional convenience to consumers. B) Make it necessary for producers to carry more inventories. C) Often perform functions that producers cannot perform efficiently by themselves. D) Increase the need for producers to make large investments in distribution facilities and personnel. E) None of these alternatives is correct.

C

7) Logistics decisions include all of the following except: 7) _______ A) distribution service level. B) storage of goods. C) prices to charge for delivery. D) handling of goods. E) transporting of goods.

C

8) Which of the following problems led to the development of electronic data interchange (EDI)? 8) _______ A) International telecommunication difficulties B) Firms using different transportation modes C) Computer system differences among firms D) Differences in product output and quality levels E) Differences in order fulfillment processes

C

9) A(n) _____ is a special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs. 9) _______ A) shopping mall B) gateway for inventory C) distribution center D) UPC storage facility E) RFID warehouse

C

98) ________ decisions are often long-run effects and are harder to change. 98) ______ A) People B) Promotion C) Price D) Product E) Production

C

100) In _____ channel systems, the channel members agree by contract to cooperate with each other. 100) _____ A) administered B) selective C) traditional D) contractual E) corporate

D

102) Direct _____ involves personal sales contact between a representative of the company and an individual consumer. 102) _____ A) servicing B) marketing C) pricing D) selling E) distribution

D

13) The complete set of firms, facilities and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers is called the ________. 13) ______ A) logistics partnership B) physical distribution group C) Strategic logistics partnership D) supply chain E) just-in time team

D

15) Teenagers and young adults with no income and few assets are sometimes prime targets for credit card companies. In response, Congress in 2009 passed the Credit CARD Act, which requires that anyone under age ____ must have a cosigner or prove they can repay any debt. 15) ______ A) 23 B) 25 C) 17 D) 21 E) 18

D

16) Using temporary price cuts to speed a producer's new product into a market is known as ________. 16) ______ A) a penetration pricing policy B) a meeting competition pricing policy C) a skimming pricing policy D) introductory price dealing E) a flexible-price policy

D

17) A _____ is the complete set of firms, facilities, and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers. 17) ______ A) just-in time group B) physical distribution group C) logistics partnership D) supply chain E) none of these alternatives is a good answer

D

17) Raymond Weil, a European manufacturer of premium watches, is trying to compete in the U.S. market with other fine watch brands. Its corporate website contains the following notice: "RAYMOND WEIL products are sold by official dealers only. The RAYMOND WEIL International Guarantee is offered exclusively to consumers in possession of a watch purchased from an official dealer...." In the United States, Raymond Weil watches are not available in every jewelry or department store. For example, in large cities such as Boston, Washington, D.C., and San Francisco, there are only three retailers in each city that are official Raymond Weil dealers. Raymond Weil seems to be using: 17) ______ A) intensive distribution. B) selective distribution. C) limited distribution. D) exclusive distribution. E) extensive distribution.

D

19) A convenience product would probably be sold using ________. 19) ______ A) Extensive distribution B) Selective distribution C) Sole-source distribution D) Intensive distribution E) Exclusive distribution

D

20) ________ are reductions from list price that are given by a seller to a buyer who either gives up some marketing function or provides the function himself. 20) ______ A) Spiffs B) PMs C) Markups D) Discounts E) Phony prices

D

22) Why should pricing objectives be explicitly stated? 22) ______ A) Explicitly stating objectives provides legal protection for the firm. B) Most state laws require explicitly stating legal objectives. C) Firms should always choose profit-oriented pricing objectives. D) They have a direct effect on pricing policies and the methods used to set the price. E) It provides direction for company-level objectives.

D

25) Costco is a warehouse store that sells groceries, household items, and business products. Purchase quantities tend to be larger than in traditional stores that serve final consumers. For example, soft drinks are only sold in 24-can cases, not in 6-packs. Coffee is sold in 3-pound cans instead of one-pound foil packs. Which regrouping activity is Costco shifting to the consumer? 25) ______ A) Sorting B) Accumulating C) Adjusting discrepancies D) Bulk-breaking E) Assorting

D

28) "Discrepancies of assortment" means ________. 28) ______ A) some producers can produce more products than others B) some consumers buy more products than others C) there are more producers than wholesalers D) the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users E) consumers want more output than producers can make

D

28) When individual firms set their own prices-sometimes holding them steady for long periods of time-rather than letting daily market forces determine prices, such prices are called ________ 28) ______ A) parallel prices B) flexible prices C) fixed prices D) administered prices E) equilibrium prices

D

30) A one-price policy means offering the same price 30) ______ A) for all types of merchandise. B) all four seasons of the year. C) for store brands and national brands. D) to all customers. E) for individual consumers and organizational buyers.

D

36) A producer using several competing channels to distribute its products to its target market is using ________ distribution. 36) ______ A) horizontal B) intensive C) administered D) multichannel E) selective

D

37) Retail stores that sell "seconds" and "irregular" products at discount prices are flourishing all over the country. These stores are needed because of what regrouping activity? 37) ______ A) Accumulating B) Bulk-breaking C) Wholesaling D) Sorting E) Assorting

D

39) The Robinson-Patman Act says that to be legal, price differences must be based on: 39) ______ A) transportation differences B) a reasonable profit margin as determined by the FTC C) freight costs D) a need to meet competition and cost differences E) None of these alternatives is correct.

D

4) "Unfair trade practice acts" ________. 4) _______ A) prohibit intermediaries from taking excessive markups B) make price fixing illegal C) eliminate price competition on manufacturers' brands D) put a lower limit on prices, especially at the wholesale and retail levels E) require different types of retailers to charge different retail prices

D

50) ________ conflict occurs between firms at different levels in the channel of distribution. 50) ______ A) Horizontal B) Diagonal C) Cyclical D) Vertical E) Parallel

D

55) ______________ means selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product. 55) ______ A) Multichannel distribution B) Selective distribution C) exclusive distribution D) Intensive distribution E) Aggressive distribution

D

6) Strategy "Place" decisions would NOT include: 6) _______ A) type of intermediaries/collaborators. B) type of physical distribution facilities. C) degree of market exposure desired. D) geographic pricing policy. E) type of channel of distribution.

D

6) Which of the following laws focuses specifically on price discrimination? 6) _______ A) Federal Trade Commission Act B) Magnuson-Moss Act C) Sherman Act D) Robinson-Patman Act E) Wheeler-Lea Act

D

62) The regrouping activity which involves putting together a variety of products to give a target market what it wants is called ________. 62) ______ A) sorting B) accumulating C) bulk-breaking D) assorting E) wholesaling

D

64) Which of the following best illustrates adjusting "discrepancies of assortment?" 64) ______ A) Over 310 million U.S. consumers are served by approximately 330,000 manufacturers. B) General Motors makes Hummer for one product-market and Chevrolet for another product-market. C) Three firms produce over 60 percent of all the DVD players sold in the United States. D) A hardware store sells all the hardware items wanted by most people. E) RCA sold more than 2,000,000 TVs last year.

D

77) ________ is a manager who helps directs the activities of a whole channel and tries to avoid or solve channel conflicts. 77) ______ A) A channel executive B) A distribution manager C) A channel captain D) Distribution leader E) Channel coordinator

D

80) A large food retailer acquiring a cheese factory is an example of: 80) ______ A) horizontal integration. B) dual distribution. C) internal expansion. D) vertical integration. E) a tying contract.

D

84) Product recalls, returns, and recycling plans require some firms to use ________. 84) ______ A) contractual channel systems B) vertical integration C) exclusive distribution D) reverse channels E) selective distribution

D

89) Intermediaries are needed LEAST when the desired degree of market exposure is: 89) ______ A) selective. B) intensive. C) ideal. D) exclusive. E) none of these choices is correct.

D

9) "Discrepancies of quantity" means: 9) _______ A) some consumers buy more products than others. B) there are more consumers than producers. C) that demand is greater than what a company can supply. D) the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers or users. E) some manufacturers can produce more products than others.

D

95) Josh Adams runs a large cattle farm in Texas. In order to take advantage of higher prices for beef in Europe compared to the United States, he has started selling cattle overseas by using an agent wholesaler who specializes in finding European customers for U.S. firms. He ships the cattle to Europe by water transport. Josh is involved in: 95) ______ A) joint venturing. B) licensing. C) management contracting. D) exporting. E) franchising.

D

99) Distribution agreements which limit sales by customer or territory: 99) ______ A) are definitely illegal if they are vertical agreements between producers and intermediaries. B) may be legal if they are horizontal agreements between producers and intermediaries. C) are always illegal. D) are definitely illegal if they are horizontal agreements among competing producers or intermediaries, but may be legal if they are vertical agreements. E) None of these alternatives is correct.

D

¬¬¬ 3) To help producers manage discrepancies between what gets produced and what customers need, channel specialists perform ________ activities, such as accumulating, bulk-breaking, sorting, and assorting. 3) _______ A) direct marketing B) channel C) selective distribution D) regrouping E) promotion

D

11) Regarding alternative transporting modes, which of the following statements is TRUE? 11) ______ A) Airways are quickest. B) Rail C) Waterways usually provide the lowest cost way of shipping heavy freight. D) Pipelines offer reliability in moving oil and natural gas. E) All of these statements are TRUE.

E

12) Channel specialists use the regrouping activities of sorting and assorting to resolve ________. 12) ______ A) discrepancies of quantity B) discrepancies of time C) discrepancies of need D) discrepancies of place E) discrepancies of assortment

E

16) At least ________ percent of all freight shipped in the United States moves by trucks at least part of the way from producer to user. 16) ______ A) 5 B) 10 C) 20 D) 15 E) 75

E

18) The "regrouping activity" which involves breaking carload or truckload shipments into smaller quantities as products get closer to final customers is called: 18) ______ A) retailing. B) accumulating. C) sorting. D) assorting. E) bulk-breaking.

E

18) Which of the following is a profit-oriented pricing objective? 18) ______ A) Sales growth B) Meeting competition C) Nonprice competition D) Growth in market share E) Target return

E

19) Some manufacturers give ________ to retailers to pass on to the retailers' salesclerks to encourage aggressive selling of specific items or lines. 19) ______ A) slotting allowances B) advertising allowances C) quantity discounts D) cash discounts E) "push money"

E

19) Which of the following statements is true regarding alternative transporting modes? 19) ______ A) Railways provide the lowest cost considering weight. B) Waterways serve the most locations. C) Most cities in the United States are less than 200 miles from a major petroleum pipeline. D) Pipelines in the U.S. are located mostly in the Northeast. E) Airways offer the most expensive transporting mode.

E

2) To what does the physical distribution customer service level refer? 2) _______ A) It refers to the effort put in by channel members to meeting customer needs. B) It refers to the costs to carry a product in inventory. C) It refers to the length of time a product is stored in inventory. D) It refers to the location of distribution centers. E) It refers to the ability of a firm to deliver rapidly and dependably what customers want.

E

21) Almost any business transaction in a modern economy involves ________. 21) ______ A) "dumping" B) an exchange in which price serves as a measure of quality C) an exchange at a list price D) a loss of consumer surplus E) an exchange of money-the money being the Price-for something of value

E

23) The regrouping activity which involves grading or sorting products into the grades and qualities desired by different target markets is called ________. 23) ______ A) accumulating B) allocation C) assorting D) wholesaling E) sorting

E

23) Why would Coca-Cola want to encourage its customers to store product in their homes? 23) ______ A) It refers to the marketing function of holding goods. B) Shipping costs to transport the product are reduced C) The sales price of the product decreases D) Shipping time to transport the product is reduced E) More of the product is used or consumed

E

24) All of the following are regrouping activities EXCEPT 24) ______ A) assorting. B) bulk-breaking. C) sorting. D) accumulating. E) channeling.

E

3) Strategy planning for Price is concerned with 3) _______ A) how flexible prices will be. B) how transportation costs will be handled. C) at what level prices will be set over the product life cycle. D) to whom and when discounts and allowances will be given. E) All of these alternatives are correct.

E

3) Which of the following products would have the lowest transporting costs as a percentage of the selling price? 3) _______ A) Electronic equipment B) Chemicals and plastics C) Manufactured food D) Sand and gravel E) Pharmaceuticals

E

30) ________ means selling a product through only one wholesaler or retailer in a particular geographic area. 30) ______ A) Multichannel distribution B) Selective distribution C) Direct distribution D) Intensive distribution E) Exclusive distribution

E

32) In general, marketers that seek greater control over their marketing mixes in the international environment will: 32) ______ A) set up traditional global channels. B) use intensive distribution. C) choose to export or license. D) hire more marketing managers. E) invest more financial resources and take greater risks.

E

39) Which of the following is a function that an intermediary is likely to provide for customers? 39) ______ A) provide delivery B) reduce inventory costs C) regroup products D) grant credit E) All of these are functions provided for customers.

E

4) Multichannel distribution: 4) _______ A) is becoming more common. B) may involve using both direct and indirect channels simultaneously. C) may create channel conflict. D) may offer producers a way to reach customers they would not be able to reach with a single channel. E) All of these alternatives are correct.

E

40) Which act prohibits price discrimination unless it is based on cost differences or the need to meet competition? 40) ______ A) Wheeler-Lea Act B) Sherman Act C) Federal Trade Commission Act D) Magnuson-Moss Act E) Robinson-Patman Act

E

41) Producers often have to use "multichannel distribution": 41) ______ A) because big retail chains want to deal directly with producers. B) because present channel members are doing a poor job. C) because competitors use a variety of channels. D) because they want to sell both direct with a website and indirectly through intermediaries. E) All of these are valid reasons for producers to use multichannel distribution.

E

41) Which of the following is not an example of price? 41) ______ A) apartment rent B) college tuition C) interest on a loan D) doctor's fee E) All of these are examples of price.

E

46) A channel system in which the various members informally agree to cooperate with each other is called a(n) ________ system. 46) ______ A) traditional channel B) franchising C) dual distribution D) contractual channel E) administered channel

E

49) If Walmart purchases a manufacturing plant to produce nothing but Walmart's dealer brand of laundry detergent, Walmart is engaging in ________. 49) ______ A) A contractual channel system B) An administered channel system C) Intertype competition D) Monopoly E) Vertical integration

E

51) A selective distribution policy might be used to avoid selling to wholesalers or retailers that: 51) ______ A) Make too many returns. B) Have poor credit. C) Place orders that are too small. D) Request too much service. E) All of these alternatives are correct.

E

52) "Discrepancies of assortment" means: 52) ______ A) there are more producers than wholesalers. B) consumers want more output than producers can make. C) some consumers buy more products than others. D) some producers can produce more products than others. E) the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users.

E

53) Which of the following is typically the lowest risk approach for moving into international markets? 53) ______ A) management contracting B) direct investment C) joint venturing D) licensing E) exporting

E

57) Which of the following is not a benefit that an intermediary is likely to provide for producer-suppliers? 57) ______ A) reduce the need to store inventory B) reduce credit risk C) reduce the need for working capital D) reduce the need for marketing research E) All of these are likely benefits provided to suppliers.

E

65) _____ means separating products into grades and qualities as desired by different target markets. 65) ______ A) Assorting B) Accumulating C) Bulk-breaking D) Discrepancy of quality E) Sorting

E

7) Which of the following laws specifically makes illegal any price discrimination which injures competition? 7) _______ A) Magnuson-Moss Act B) Sherman Act C) Wheeler-Lea Act D) FTC Act E) Robinson-Patman Act

E

70) Every morning, Sycamore Dairy picks up milk that farmers have "milked" that morning. The dairy processes the milk and separates the cream from the milk. Some of the cream is then made into butter and packaged in various size containers. The milk and remaining cream are blended into various products, sealed in pint, quart, and half-gallon containers, and then delivered to supermarkets in the quantities and assortments ordered. The dairy is providing what regrouping activity? 70) ______ A) Assorting B) Sorting C) Bulk-breaking D) Accumulating E) All of these regrouping activities are being provided by Sycamore Dairy.

E

73) For heterogeneous shopping goods, marketers should ________. 73) ______ A) sell through low-cost retailers B) avoid selling through online stores C) provide limited customer support as customers focus mostly on low prices D) keep the level of salesforce in the retail stores to the lowest level possible E) utilize knowledgeable salespeople who can provide insights about different brands and models

E

79) Selling products manufactured in the United States to foreign customers-often without any product changes-is called ________. 79) ______ A) licensing B) importing C) joint ventures D) contract manufacturing E) exporting

E

8) The vertical marketing system that typically has the greatest amount of cooperation among channel members is a(n): 8) _______ A) Administered channel system. B) Franchise channel system. C) Traditional channel system. D) Contractual channel system. E) Corporate channel system.

E

86) Marketers need to foster cooperation with various members of a channel system to prevent ________. 86) ______ A) channel confusion B) channel competition C) channel surfing D) channel changing E) channel conflict

E

88) Direct ________ involves personal sales contact between a representative of the company and an individual consumer. 88) ______ A) pricing B) marketing C) servicing D) distribution E) selling

E

90) A disadvantage of direct-to-customer channels is that they 90) ______ A) make it more difficult to serve buyers who want to lease rather than buy products. B) are not suitable when the number of transactions is small or when orders are large. C) require the producer to coordinate with many retailers. D) are illegal in business and organizational markets. E) None of these is a disadvantage of direct-to-customer channels.

E

91) "Place" decisions: 91) ______ A) may focus on the selection and use of intermediaries and collaborators. B) may focus on the location of retail stores and wholesale facilities. C) can be aided by knowing about the product classes. D) are harder to change than Product, Promotion, or Price decisions. E) All of these choices are correct.

E

94) A manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts is a: 94) ______ A) Channel director. B) Channel coordinator. C) Channel troubleshooter. D) Channel ombudsman. E) Channel captain.

E

54) ________ means selling the right to use some process, trademark, patent, or other right for a fee or royalty. 54) ______ A) Exporting B) Direct investment C) licensing D) Joint venturing E) Management contracting

c

61) In a channel where retailers lead, intermediaries that gather, analyze, and interpret big data that generates insights about their customers' needs will ________. 61) ______ A) lose their power to influence pricing B) take a back seat in a producer-dominated channel system C) seek out producers who can meet those needs with products at reasonable prices D) lose their bargaining power against suppliers and customers E) stop playing the role of a channel captain

c