Marketing 410 Test: chapters 7,8,9,10,11,12

An item cost $20 to produce. The retailer sold the product for $79. It had cost the retailer $50. The wholesaler had paid $34 for the product. The list price of the product was $100. The total of the dollar gross margins received by the manufacturer, wholesaler, and retailer amounts to:

$59

Which company in the text advertised in a trade magazine offering a "Category Management Partner" program as an inducement to potential channel members?

3m

If a wholesaler can buy an item for $38 that has a list price of $95, the trade discount percentage available to the wholesaler is:

60%

A fundamental but long-term strategic channel management option that should be considered during the maturity stage of the product life cycle is:

A change in the channel structure

Distribution programming may be defined as:

A comprehensive program for the promotion of a product through the channel

A distribution programming approach to motivating channel members means:

A comprehensive set of policies for the promotion of product through the channel

The most typical strategy used for promotional allowances is to offer channel members:

A percentage of purchases on particular products

Which of the following is most likely to have the effect of moving price points downward for a product category?

Advancing technology

Which of the following is true regarding manufacturers' attempt to uncover channel members' views on the manufacturer's pricing strategies?

All of the above

In highly intensive distribution, the selection criteria for channel members:

Amount to "Can they pay their bills?"

Trade discounts:

Are reductions from list price.

Before the channel manager can successfully motivate the channel members, he or she must:

Attempt to learn about channel member needs and problems

Which of the following would not be considered a differentiated product?

Bic Pens

Which of the following is not an example of displays and/or selling aids?

Billboards

The set of people who participate in industrial buying decisions and are responsible for the consequences resulting from the decision are known as:

Buying center

The belief underlying the so-called pull strategy is?

By building strong consumer demand for their products, manufacturers pressure channel members to promote these products.

Which of the following is not an example of in-store promotion?

Cardboard Cutouts

Which of the following is not one of the methods suggested for learning about channel member needs and problems?

Channel inspection tours

For samples to be an effective in-store promotion, it is suggested that:

Channel managers and retailers will need to be more clever and develop situational sampling

Which of the following is a false statement about when a manufacturer is developing new products and involvement of channel members?

Channel members should have experts at the manufacturer's plant during product development

Bruce Computer Software, in developing its new products, must recognize that its intermediaries will be enthusiastic only if the new products:

Complement the intermediaries' current assortment

The opportunity to achieve a relatively high level of customer service at low cost is higher in more:

Concentrated markets than in more dispersed markets

Which of the following is not a factor that should normally be included in developing pricing strategies?

Consumer income

Manufacturers are often concerned about their products being involved in the gray market for all of the following reasons except:

Consumers may stop buying the product because of a perceived decrease in value

People in industrial organizations who have the power to decide on product requirements and/or suppliers are known as:

Deciders

When the maturity stage of the product life cycle is reached, the sales turnover experienced by many of the channel members for the product in question is likely to:

Decrease

Generally, as the channel structure grows longer and the degree of control exercised by the manufacturer:

Decreases

Differing perceptions of price incentives between the consumers and channel members' viewpoints stem from:

Differing price elasticities

Before automatically passing price increases through the channel, the manufacturer should:

Do whatever it can do to mitigate the negative effects of the increase on channel members

When reviewing the margins offered to different classes of channel members, the channel manager should consider all of the following functions except:

Does the channel member offer guarantees and repair warranties?

___________ is the term used to describe strategic alliances that are formed as a part of an Internet strategy.

E-alliances

When channel members load up on discounted products featured in the manufacturer's promotion but pass on the lower price for just a portion of the amount purchased to their customers, they are most likely to be engaged in:

Forward buying

In attempting to gain price control in the channel, the manufacturer should use:

Friendly persuasion

Which of the following is not an issue that needs to be addressed in e-alliances?

Gathering information about alliance members' operations

During the __________ stage of the product life cycle, manufacturers must be especially mindful of channel member actions with respect to competitive products.

Growth

With inter-firm relationships, channel members become strategically integrated because they:

Have an explicit and acknowledged stake in the other's success

Amazon.com has begun to pressure manufacturers to use less wasteful packaging because:

Having a large advertising budget

The selection of channel members:

Is sometimes necessary even though the basic channel structure remains the same

In general, a good cooperative program has all of the following components except:

It does not need to include retail channel members

Which of the following is not a feature of the Evergreen and Ivy display for candles?

It handles product that comes in one size.

Customers will often forgo ambiance and atmosphere in favor of ___________ when shopping for toys or computers.

Lower prices or one-stop shopping

Manufacturers have to exert a lot of effort to gain channel member acceptance of new products because of all the following except

Manufacturers are experts in identifying what customers want

According to the text, the most complex market dimension is:

Market behavior

The fact that South East Asia, as well as the former Eastern Bloc countries of Central and Eastern Europe have become important locations for emerging markets is most closely related to which dimension of the Framework for Market Analysis discussed in the text?

Market geography

The __________ variables are the most fundamental variables in channel design.

Market variables

The major strategic emphasis for channel managers to make possible changes to the channel structure or to select different types of intermediaries occurs in the _______ product life cycle stage

Maturity

Consultants such as SymphonyIRIGroup have made it feasible for manufacturers to:

Measure the effects of promotional programs more accurately

During the growth stage of the product life cycle, two overriding issues for channel management are:

Monitoring competitive products and providing for adequate product availability

A manufacturer risks creating its own competition when it adopts a product strategy of:

National and private brands

One of the most critical channel management tasks during the introductory stage of the product life cycle is to

Obtain adequate market coverage

Marketing channel communications systems:

Often need to be supplemented by other approaches for learning channel members' needs and problems

It is now easier for manufacturers to measure the effect of promotional allowances because of:q

Outside consulting firms

Channel members are often reluctant to support advertising programs if they feel there is too much emphasis on the manufacturer's products and not enough emphasis on:

Patronage appeals

Product line expansion and contraction is becoming even more challenging for channel managers because

Power retailers are emphasizing store-by-store category management

Virtually all of the policy options for developing a distribution programming arrangement can be categorized into the following three major groups:

Price concessions, financial assistance, and protection

For some product categories, customers simply have come to expect finding products priced at customary levels. The "expected" prices for such products are referred to as:

Price points.

In a marketing channel communication system, indirect-flow information media include all of the following except:

Product catalogs

In a pull and push promotional strategy, the three main flows involved are:

Product, negotiation, and promotion

Which of the following is not an advantage of using trade shows as a promotional strategy?

Provides an opportunity to advise and give technical assistance to channel members

According to the text, research studies dealing with channel members conducted by the manufacturer are:

Relatively rare

Which of the following is a common abuse of cooperative advertising money by retailers?

Retailers buying newspaper space at rates lower than what they bill manufacturers

The effectiveness of the overall promotional strategy depends on how successful the manufacturer is in:

Securing cooperation from independent channel members in implementing the promotional strategy

The underlying concept behind the push promotional strategy is:

Securing mutual effort and cooperation between manufacturers and channel members in the use of promotion

Product service:

Should be considered as an important strategic issue

Sales quotas for channel members:

Should be set in conjunction with the channel member

_______ are payments made by manufacturers to encourage channel members to display and stock new products.

Slotting allowances

Ideally, the channel manager should set the margins offered the channel members:

So that margins would vary in direct proportion to the functions performed by the different classes of channel members

The relationships between Procter & Gamble and Wal-Mart, Black & Decker and its distributors, and Rust-Oleum and its distributors all are examples of:

Strategic alliances

A basic tenet of virtually all programs of channel member support should be:

That they emphasize the specific needs and problems of the channel members

In the context of the marketing channel, control may be defined as:

The ability to predict events or to achieve a desired outcome

In using in-store promotions, the most critical factor for the channel manager to consider in judging the probable effectiveness of the promotion is:

The benefits of the program as perceived by retailers

At the beginning stage of managing the marketing channel, it is assumed that:

The channel design decision process has already taken place

A product positioning strategy includes all of the following except:

The cost to manufacture the product.

In the text's example on marketing channel structures in Japan, the principal causes of the long channel structures in Japan are:

The market behavior of the Japanese consumer and the historical background of Japanese society

Market density refers to

The number of buyers in a geographic unit

K&B Manufacturing, in developing its new products, must recognize that its intermediaries will judge the acceptability of the new products based on:

The product's profit potential in terms of meeting established margin structures

A customer buying a branded product from a low-priced distributor likely is:

There is no way to tell from the information given

To a channel manager, the elements of the marketing mix do all of the following except:

They do not affect the performance of other channel members

Which of the following is not typically mentioned as an advantage of distributor advisory councils?

They enable channel members to engage in price maintenance

Which of the following is a false statement about Oxenfeldt's set of eight classic guidelines for developing pricing strategies?

They guarantee results

Giant retail chains such as Home Depot and Lowe's, demand lower prices from manufacturers because:

They perform many wholesaler functions

Securing the prospective channel members as actual channel members is usually the:

Third step in the selection process

All of the following are direct-flow information media in a channel communication system except:

Trade journals

When Levi Strauss Co. introduced its Levi Strauss Signature brand jeans, it was engaging in a(n) __________ strategy.

Trading down

All of the following are cooperative programs usually aimed at retailers except:

Training salespeople

Why does it make sense to sell high-priced and exclusive merchandise such as diamonds, rare Cognac, or Waterford Crystal, through warehouse club channels?

Two-thirds of the shoppers at a warehouse club are business owners, many of whom are successful and affluent

Which of the following statements about channel member selection criteria lists is true?

a changing environment may require the firm to alter its emphasis

By 2010, consumer online sales reached approximately what level of sales?

about $175 billion

The trade magazine advertisement for Snyder's pretzel manufacturer offers _______ as an inducement to prospective channel members.

advertising support

The selection of channel members:

an occur even when channel structure is not altered

Trade shows and conventions:

are generally useful sources for finding new channel members

Generalized lists of channel member selection criteria:

can help channel member to develop his or her own specialized list

Less prime retail locations may be offset somewhat through all of the following except:

close to home convenience

The best way for the manufacturer to obtain information about potential intermediaries from customers is by _______________ to learn customers' views about distributors in their market area.

conducting surveys

Yeoh and Calantone identify six categories of selection criteria that reflect the _________ distributors must possess to be effective representatives in foreign markets.

core competencies

A channel member uses __________ as a source for prospective channel members for firsthand appraisal of the actual performance of the prospective channel members.

customers

Which of the following purchase roles is the most difficult to analyze?

decider

The __________ often causes a problem with price promotions.

differing price elasticities of consumers and retailers

Congested markets promote efficiency in the performance of all of the following distribution tasks except:

efficiency is promoted for all of the above

The list of selection criteria offered by Pegram may be described as:

empirically based

In the selection of foreign distributors as laid out by Yeoh and Calantone, which of the following criteria was not cited in a study of foreign distributors' selection processes mentioned in the textbook?

ethnicity

When pursuing a trading up or trading down product strategy, the most critical issue a channel manager must consider whether:

existing channel members provide adequate market coverage of the high or low end of the market

According to the text, the most important source for finding prospective channel members is:

field sales organizations

What presents the most formidable challenges for distribution channels when firms deal with distant markets by selling products on the Internet?

fulfillment logistics and customer service

One of the main issues Proctor & Gamble (P&G) Company had with its Max Factor is:

giant mass market U.S. retailers were not willing to give more shelf space to Max Factor

Slotting fees are most commonly used in the ________ industry

grocery

As a general rule, each channel participant wants a price that provides a __________ sufficient to cover its __________ and provide a contribution to __________.

gross margin; expenses; profit

Acceptance of a new product by channel members __________ its acceptance by final users

is necessary for

The selection criterion that refers to __________ reflects the degree to which there is a continuity of management if the principal dies.

management succession

The first step in developing a distribution program is an analysis by the manufacturer of __________ and the level of support the manufacturer needs from channel members.

marketing objectives

It is the __________ that should drive channel design.

needs and wants of the market being targeted

The manufacturer's salespeople are often able to do all of the following except:

provide objective evaluations of channel member

A significant problem with using the sales force to find prospective channel members is that:

sales people may not devote much effort to finding new channel members because they may not be adequately rewarded for doing so

It is expected that ________ may become the most dominant form of promotional allowance demanded by large retailers.

slotting fees

Which of the following is not considered to be an example of the "how" subdimension of buyer behavior?

taking time to browse rather than quickly making a purchase

Key published sources for locating markets include all of the following except:

the international business guide to distributors

The "price" paid to gain channel member support must emphasize:

the job performed by the channel members

A prospective wholesaler channel member's sales strength can be measured by:

the number and quality of its sales reps

Which of the following is an incorrect statement about manufacturers and producers choosing a two-level channel structure?

they need to develop specific criteria to evaluate channel members