MKG 300 Test 3
Which of the following is NOT an agent wholesaler? A. A drop-shipper B. An auction company C. A selling agent D. A broker E. A manufacturers' agent
A. A drop-shipper
Distribution centers: A. Are designed to facilitate the flow of products through the channel. B. Are the same as public warehouses. C. Are not places where regrouping activities—such as bulk- breaking—are performed. D. Increase storing costs. E. All of the above.
A. Are designed to facilitate the flow of products through the channel.
Which of the following is NOT a full-service merchant wholesaler? A. Broker B. Single-line wholesaler C. General-line wholesaler D. General merchandise wholesaler E. Specialty wholesaler
A. Broker
. In which of the following distribution channels is the firm most likely to maintain control of the marketing mix? A. Direct B. Indirect C. Cooperative D. Layered E. Horizontal
A. Direct
. ______________ means selling a product through only one wholesaler or retailer in a particular geographic area. A. Exclusive distribution B. Direct distribution C. Intensive distribution D. Multichannel distribution E. Selective distribution
A. Exclusive distribution
_____ means selling the right to use some process, trademark, patent, or other right for a fee or royalty. A. Licensing B. Management contracting C. Joint venturing D. Exporting E. Direct investment
A. Licensing
9. Which of the following is LESS LIKELY to happen as a product moves through the later stages of the product life cycle? A. Place - move toward selective distribution. B. Promotion - build selective demand. C. Price - meet competition. D. Competitive situation - Heading toward pure competition. E. Product - Some drop out.
A. Place - move toward selective distribution.
. When a department store manager decides to make a personal shopper available to its career-oriented female shoppers, this is a decision about: A. Product B. Place C. Promotion D. Price
A. Product
8. In the market introduction stage of a fast product life cycle, _____ helps develop loyal customers early and keeps competitors out. A. a low initial penetration price B. intensive distribution C. promotion that builds selective demand D. promotion that reminds E. a market skimming price
A. a low initial penetration price
A limited-line store is to a single-line store as A. a tennis shop is to a sporting goods store. B. a paint store is to a drugstore. C. quality is to price. D. a CD and tape store is to a movie theater. E. full service is to self-service.
A. a tennis shop is to a sporting goods store.
The regrouping activity which involves putting together a variety of products to give a target market what it wants is called: A. assorting. B. bulk-breaking. C. wholesaling. D. accumulating. E. sorting.
A. assorting.
More freight is carried more miles _____ than any other mode of transportation. A. by railroads B. by air C. by pipeline D. by trucks E. over water
A. by railroads
Supercenters are also known as A. hypermarkets. B. mass-merchandisers. C. discount houses. D. supermarkets. E. single-line mass merchandisers.
A. hypermarkets.
. A channel of distribution: A. is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user. B. is only needed when products must be stored. C. must include one or more intermediaries. D. is only needed when products are sold indirectly. E. Both B and C.
A. is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.
When the Rosco International chain of restaurants enters foreign markets, locals own the restaurant facilities, but look to Rosco to provide expertise in management and marketing. Rosco uses the _______ approach to enter international markets. A. management contracting B. direct investment C. exporting D. joint venture E. licensing
A. management contracting
5. Health Care Products Company has noticed that in one of its product-markets industry sales have leveled off and competition has been getting tougher. This product-market appears to be in the ____ stage of the product life cycle. A. market maturity B. market introduction C. market growth D. sales decline E. market decline
A. market maturity
Discrepancies of quantity" occur because 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 the above.
A. producers seek economies of scale.
Inventory refers to A. the amount of goods being stored. B. minimizing storage costs. C. the amount of goods being sold. D. the marketing function of holding goods. E. the quality of goods being stored.
A. the amount of goods being stored.
At least ________ percent of all freight shipped in the United States moves by trucks--at least part of the way--from producer to user. A. 20 B. 75 C. 15 D. 5 E. 10
B. 75
Which of the following best illustrates adjusting "discrepancies of assortment?" A. General Motors makes Hummer for one product-market and Chevrolet for another product-market. B. A hardware store sells all the hardware items wanted by most people. C. Over 309 million U.S. consumers are served by around 351,000 manufacturers. D. RCA sold more than 2,000,000 TVs last year. E. Three firms produce over 60 percent of all the DVD players sold in the United States.
B. A hardware store sells all the hardware items wanted by most people.
Identify the characteristics of vending machines and door-to-door retailing. A. Expanded assortment, reduced margins, and more information. B. Added convenience and higher than conventional margins, usually reduced assortment. C. Expanded assortment and/or reduced margins and service. D. Expanded assortment and service. E. Expanded assortment and service, and more information.
B. Added convenience and higher than conventional margins, usually reduced assortment.
The main difference between agent wholesalers and merchant wholesalers is: A. the kind of selling they do. B. that agent wholesalers do not own the products they sell--while merchant wholesalers do. C. that no agent wholesalers physically handle products--while all merchant wholesalers do. D. their attitudes regarding the marketing concept. E. There is no difference--an agent wholesaler IS a merchant wholesaler.
B. An auction company
Which of the following is NOT a limited function merchant wholesaler? A. A truck wholesaler B. A general-line wholesaler C. A rack jobber D. A drop-shipper E. A catalog wholesaler
B. Catalog wholesalers
. _____ means giving employees the authority to correct a problem without first checking with management. A. Responsibility adjustment B. Empowerment C. Training D. Induction E. Benchmarking
B. Empowerment
. From a producer's viewpoint, which of the following is an advantage of INTENSIVE DISTRIBUTION over selective distribution? A. Intermediaries' price-cutting may be reduced. B. Intermediaries' facilities will be more convenient for customers. C. Intermediaries can be required to carry larger stocks. D. More aggressive selling can be expected from intermediaries. E. Better service can be required from intermediaries.
B. Intermediaries' facilities will be more convenient for customers.
Regarding airfreight, which of the following statements is NOT true? A. Airfreight may reduce the total cost of distribution. B. Inventory costs usually increase, since only small quantities can be shipped at a time. C. Very bulky items cannot be shipped economically. D. Airfreight is opening up new markets for many perishable items. E. There are usually fewer problems from theft and damage with airfreight
B. Inventory costs usually increase, since only small quantities can be shipped at a time.
. Which of the following is NOT one of the degrees of market exposure? A. Selective distribution B. Multichannel distribution C. Intensive distribution D. Exclusive distribution E. None of the above, i.e. all are degrees of market exposure.
B. Multichannel distribution
When a supermarket manager decides to offer online ordering at the store's Web site, this is a decision about: A. Product B. Place C. Promotion D. Price
B. Place
Which of the following statements about Place is true? A. Most consumer products and most business products are sold to intermediaries who then sell them to final customers. B. Place decisions are usually harder to change than other marketing mix decisions. C. There is always one Place arrangement that is "best" for a product. D. A series of individuals who aid in the flow of goods and services from producer to final customer is called a distribution network. E. None of the above is true
B. Place decisions are usually harder to change than other marketing mix decisions.
. Regarding product life cycles, which is TRUE? A. Industry sales and profits tend to reach their maximum during the market maturity stage. B. Product life cycles describe industry sales and profits within some product-market. C. Product life cycles are generally getting shorter and cannot be extended. D. Every new brand must pass through all four stages of the product life cycle. E. All of the above are true.
B. Product life cycles describe industry sales and profits within some product-market.
. ______________ means selling a product only through those intermediaries who will give the product special attention. A. Multichannel distribution B. Selective distribution C. Administered distribution D. Exclusive distribution E. Intensive distribution
B. Selective distribution
_____ means separating products into grades and qualities desired by different target markets. A. Bulk-breaking B. Sorting C. Accumulating D. Assorting E. Discrepancy of quality
B. Sorting
Compared to conventional retailers, which of the following types of retailers offer a wider product assortment but less service? A. Convenience stores. B. Supermarkets. C. Telephone order retailers. D. Department stores. E. Limited-line stores.
B. Supermarkets.
7. Which of the following observations concerning the product life cycle is NOT TRUE? A. Product life cycles describe industry sales and profits for a product idea within a particular product-market. B. The sales and profits of an individual brand follow the life-cycle pattern. C. A product idea may be in a different life-cycle stage in different markets. D. Product life cycles should be related to specific markets. E. A given firm may introduce or drop a specific product during any stage of the product life cycle.
B. The sales and profits of an individual brand follow the life-cycle pattern.
A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location, but the supermarket manager refuses to give that valuable real estate to this producer. This is an example of __________ conflict. A. Contractual B. Vertical C. Corporate D. Horizontal E. Administered
B. Vertical
"Intensive distribution" means selling through: A. only one channel of distribution. B. all responsible and suitable retailers or wholesalers. C. only one intermediary in a particular geographic area. D. only those intermediaries who give the product special attention. E. all retail outlets.
B. all responsible and suitable retailers or wholesalers.
Storing: A. is related to Place--but has no effect on Price. B. is necessary because production does not always match consumption. C. must be performed by all members of a channel system. D. decreases the value of products. E. All of the above are true statements.
B. is necessary because production does not always match consumption.
When planning physical distribution, the marketing manager should: A. set the customer service level so that every customer can get the product exactly when he wants it. B. minimize the cost of distribution for a given customer service level. C. minimize the cost of transportation. D. maximize the speed of delivery. E. make use of a distribution center.
B. minimize the cost of distribution for a given customer service level.
Direct _____ involves personal sales contact between a representative of the company and an individual consumer. A. marketing B. selling C. distribution D. servicing E. pricing
B. selling
Sandi Barefoot sells the entire output of several small companies based in Silicon Valley. Each of the companies designs and produces remote control devices. Sandi has almost complete control of pricing and selling--because the engineers who started the companies are mainly interested in inventing things. In addition, Sandi often provides working capital to the producers, who have very limited financial resources. Sandi is paid a substantial commission on all sales. Sandi is a: A. broker. B. selling agent. C. field warehouser. D. manufacturers' agent. E. factor.
B. selling agent.
A grocery store or mass-merchandiser might rely on a _____ to decide which paperback books or magazines it sells. A. catalog wholesaler B. rack jobber C. truck wholesaler D. drop-shipper E. specialty wholesaler
B. that agent wholesalers do not own the products they sell--while merchant wholesalers do.
A direct-to-customer channel A. includes a retailer but not a wholesaler. B. usually helps the producer to be more aware of changes in final customer attitudes. C. eliminates some of the marketing functions. D. is typical to reach final consumer markets. E. is most suitable when a large number of transactions are required in the channel or when orders are smaller.
B. usually helps the producer to be more aware of changes in final customer attitudes.
. A manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts is a: A. Channel director. B. Channel coordinator. C. Channel captain. D. Channel ombudsman. E. Channel troubleshooter.
C. Channel captain.
Which of the following products would have the lowest transporting costs as a percentage of the selling price? A. Electronic equipment. B. Chemicals and plastics. C. Pharmaceuticals. D. Sand and gravel. E. Manufactured food.
C. Pharmaceuticals.
Which of the following statements about Place is FALSE? A. Place variations are required when target markets have different needs. B. Product classes suggest Place objectives. C. Place decisions have relatively little impact on competition in a product-market. D. Place decisions have longer-run implications than Price decisions. E. Place decisions need to consider when customers want products.
C. Place decisions have relatively little impact on competition in a product-market.
When a department store manager decides to offer its female shoppers a free trial of Clinique's new skin cream, this is a decision about: A. Product B. Place C. Promotion D. Price
C. Promotion
__________ are a type of limited-function wholesaler that owns products they sell, but do not actually handle, stock, or deliver them. A. Rack jobbers B. Catalog wholesalers C. Drop-shippers D. Truck wholesalers E. Cash-and-carry wholesalers
C. Truck wholesaler
Which of the following transportation modes is "best" at handling a variety of goods? A. Truck B. Rail C. Water D. Air E. Pipeline
C. Water
Sony manufactures clock radios in quantities of more than 100,000 in a given time period -- but the average consumer wants only one clock radio at a time. This difference is an example of A. a regrouping activities. B. a discrepancy of assortment. C. a discrepancy of quantity. D. a sorting error. E. re-assorting.
C. a discrepancy of quantity.
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: A. sorting. B. wholesaling. C. accumulating. D. assorting. E. bulk-breaking.
C. accumulating.
Using the ______ approach to entering international markets gives a firm complete control of marketing strategy planning in the foreign market. A. joint venture B. management contracting C. direct investment D. licensing E. exporting
C. direct investment
As a product moves into the market maturity stage of its life cycle, the marketing manager should: A. try to build primary demand. B. move toward exclusive distribution. C. expect the market to move toward pure competition. D. All of the above are true. E. None of the above is true.
C. expect the market to move toward pure competition.
Most conventional retailers in the U.S. are: A. supermarkets. B. mass-merchandisers. C. limited-line stores. D. specialty stores. E. department stores.
C. limited-line stores.
According to the FTC, for a producer to call a product "new," the product: A. must be no more than two months old. B. must have achieved brand insistence. C. must be entirely new or changed in a functionally significant or substantial respect. D. must have been changed in some way during the last year. E. None of the above is a correct answer.
C. must be entirely new or changed in a functionally significant or substantial respect.
A supply chain: A. is part of a broader network of relationships called a channel of distribution. B. is most effective when the objectives of the manufacturer at the beginning of the chain guide the activities of all other firms in the chain. C. requires skill in coordinating activities among different firms, and this has prompted many firms to seek help from outside experts. D. focuses on procuring materials needed for production, so its main weakness is that it ignores customer needs. E. concerns only direct relationships between producers, but a channel of distribution may involve intermediaries.
C. requires skill in coordinating activities among different firms, and this has prompted many firms to seek help from outside experts.
"Scrambled merchandising" refers to: A. retailers shifting from one product-market to another (e.g., a food retailer shifting to clothing). B. limited-line retailers carrying wide assortments. C. retailers carrying any product lines they can sell profitably. D. displays of impulse products in supermarkets. E. incompatible price and promotion policies.
C. retailers carrying any product lines they can sell profitably.
A _________ aims at a carefully defined target market by offering a unique product assortment, knowledgeable salesclerks, and better service. A. general store B. mass-merchandising shop C. specialty shop D. department store E. convenience store
C. specialty shop
It is difficult to maintain consistent quality in services because A. services are nonperishable. B. as opposed to products, services are tangible in nature. C. the server is inseparable from the service. D. variability is reduced as more humans are involved in delivery. E. it requires minimum human interaction.
C. the server is inseparable from the service.
All of the following are true of brokers except A. they bring buyers and sellers together. B. they are especially useful when buyers and sellers do not come into the market very often. C. they usually have a permanent relationship with the buyer and seller. D. the broker's product is information about what buyers need and what supplies are available. E. they earn commissions based on completion of transactions between buyers and sellers
C. they usually have a permanent relationship with the buyer and seller.
Which of the following statements best reflects a marketing-oriented approach to physical distribution? A. "We should create a position of inventory manager and give that person authority to coordinate all physical distribution activities to minimize the firm's total inventory costs." B. "We should aim to keep our customers fully satisfied 100 percent of the time as this will increase our sales and give us a competitive advantage." C. "We should replace our warehouses with distribution centers to speed the flow of products and eliminate all storage." D. "We should choose the physical distribution alternative that will minimize the total cost of achieving the level of customer service our target market requires." E. All are equally "marketing-oriented."
D. "We should choose the physical distribution alternative that will minimize the total cost of achieving the level of customer service our target market requires."
Which of the following would be considered a retailing "category killer"? A. Petsmart (pet supplies) B. Circuit City (electronics) C. Home Depot (home improvements) D. All of the above E. None of the above
D. All of the above
Department stores: A. are basically a group of limited-line stores under one roof. B. are decreasing in number, average sales per store, and share of retail business. C. usually aim at customers seeking shopping products. D. All of the above are true. E. Only B and C are true.
D. All of the above are true.
Which of the following statements about retailing on the Internet is(are) true? A. More product information is readily available. B. Product assortments available are not limited by the customer's location. C. Price comparisons are easy. D. All of the above are true. E. None of the above is true.
D. All of the above are true.
10. According to your text, which of the following is an example of a "new product"? A. An existing product that has been modified in some way. B. An existing product for which new uses have been found in other product-markets. C. An existing product being offered to new markets. D. All of the above. E. None of the above
D. All of the above.
5. Physical distribution decisions interact with which other marketing mix decisions? A. Price decisions. B. Promotion decisions. C. Product decisions. D. All of the above. E. None of the above.
D. All of the above.
The Consumer Product Safety Commission can: A. order costly repairs of "unsafe products." B. back up its orders with fines or jail sentences. C. set safety standards for products. D. All of the above. E. Both A and C--but NOT B.
D. All of the above.
1. The product life cycle has four stages. Which of the following is not one of these? A. Market introduction B. Market growth C. Market maturity D. Economic competition E. Sales decline
D. Economic competition
Expanded assortment, reduced margins, and more information are characteristics of A. club stores. B. specialty shops. C. mail order. D. Internet. E. department stores.
D. Internet.
Which of the following is NOT a separate stage of the new-product development process? A. Idea generation. B. Screening. C. Idea evaluation. D. Marketing Research. E. Commercialization.
D. Marketing Research.
When the manager of a Radio Shack electronics store decides to accept American Express credit cards from its customers, this is a decision about: A. Product B. Place C. Promotion D. Price
D. Price
. Electronic data interchange: A. puts information in a standardized format. B. makes inventory information more accessible. C. is common in both domestic and international markets. D. all of the above. E. both A and B, but not C
D. all of the above.
A "channel captain" A. might be any member of the channel (that is, at any level in the channel). B. views the members of the channel as a unit. C. should help to make the channel more efficient by reducing conflict. D. all of the above. E. none of the above.
D. all of the above.
2. As a product moves through its product life cycle: A. a firm should change its target market--but not its marketing mix. B. the competitive situation moves toward monopoly. C. industry profits keep increasing along with industry sales. D. customers' needs and attitudes may change. E. All of the above are true.
D. customers' needs and attitudes may change.
Most catalog retailers, like Macy's and L.L. Bean, now use a multichannel approach but when they mail catalogs to potential customers' homes, they are using ___________ retailing. A. online B. virtual C. door-to-door D. direct-mail E. e-commerce
D. direct-mail
3. During the market introduction stage of the product life cycle: A. considerable money is spent on promotion while place development is left until later stages. B. products usually show large profits if marketers have successfully carved out new markets. C. most potential customers are quite anxious to try out the new-product concept. D. funds are being invested in marketing with the expectation of future profits. E. product and promotion are more important than place and price.
D. funds are being invested in marketing with the expectation of future profits.
According to the text, product life cycles are: A. getting longer. B. speeding up in the later stages. C. now about the same length as 100 years ago. D. getting shorter. E. slowing down in the early stages.
D. getting shorter.
. Intensive distribution: A. gives a retailer more incentive to promote a product than he would have with exclusive distribution. B. is not very likely to be used in combination with multichannel distribution. C. is more likely to be used with relatively high priced products than with low priced products. D. is often used for convenience products and business supplies. E. none of the above.
D. is often used for convenience products and business supplies.
The "Wheel of Retailing" theory suggests that: A. retail stores do not have life cycles. B. retailing profits tend to be cyclical. C. only the largest retailers have a chance to survive in a fast-moving economy. D. new types of retailers enter as low-price operators and eventually begin to offer more services and charge higher prices. E. only discounters can survive in the long run.
D. new types of retailers enter as low-price operators and eventually begin to offer more services and charge higher prices.
The main difference between merchant wholesalers and other wholesalers is that they: A. are more aggressive at selling than agent wholesalers. B. offer fewer wholesaling functions. C. have the lowest operating expenses as a percent of sales. D. own (take title to) the products they handle. E. are willing to perform retailing functions also.
D. own (take title to) the products they handle.
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 which should seek to minimize the cost of distribution for a given customer service level. A. PERT B. product-market C. distribution center D. physical distribution E. marketing
D. physical distribution
Vending machine A. sales now account for almost 20 percent of consumer spending. B. retailing requires a lower margin to cover costs than for comparable products sold in stores. C. retailing has been declining. D. sales now include higher-margin products like digital cameras and bathing suits. E. None of the above is true.
D. sales now include higher-margin products like digital cameras and bathing suits.
The two basic types of merchant wholesalers are: A. single-line and limited function. B. agents and merchants. C. service and general line. D. service and limited function. E. single-line and general line.
D. service and limited function.
. Channels of distribution: A. that include intermediaries result in higher distribution costs than channels without intermediaries. B. should be designed to increase discrepancies of quantity between producers and consumers. C. usually do not involve conflicts as long as each channel member has profit as a goal. D. usually require longer-term planning than other market mix elements because channel decisions are more difficult to change quickly. E. are always characterized by conflict among channel members.
D. usually require longer-term planning than other market mix elements because channel decisions are more difficult to change quickly.
Business firms that sell to retailers and other merchants, and/or to industrial, institutional, and commercial users--but which do not sell in large amounts to final consumers--are: A. retailers. B. collaborators. C. producers. D. wholesalers. E. intermediaries.
D. wholesalers.
When a channel has a "product-market commitment": A. all members focus on the same target market at the end of the channel. B. its members attempt to share the various marketing functions in appropriate ways. C. there is no need for a channel captain to develop. D. all of the above. E. A and B above--but not C.
E. A and B above--but not C.
Which of the following is a function that an intermediary is likely to provide for customers? A. reduce inventory costs B. regroup products C. provide delivery D. grant credit E. All of the above are functions provided for customers
E. All of the above are functions provided for customers
Franchisors: A. leave it to franchisees to carry out the strategy in their own units. B. often help franchisees by providing purchasing power and promotion support. C. usually receive fees and commissions from the franchise holder. D. reduce the risk of starting a new retailing business because a good strategy has already been developed and tested. E. All of the above are true statements.
E. All of the above are true statements.
. Regarding discount houses, which of the following statements is TRUE? A. The early discount houses emphasized hard goods. B. While some conventional retailers cut price on competitive items, discount houses regularly sell all of their products at smaller markups. C. As early discounters were able to offer full assortments, they also sought "respectability" and moved to better locations. D. Discount houses are fast-turnover, price-cutting operations. E. All of the above are true.
E. All of the above are true.
Some channel conflict may A. be inevitable when channel members have different objectives. B. be useful if that is what it takes for customers at the end of the channel to receive better value. C. be avoided when a producer does not sell identical products through different (competing) channels. D. reduced if there is a channel captain who thinks about all of the members of a channel and helps to direct their activities. E. All of the above are true.
E. All of the above are true.
The need for reverse channels may arise in all of the following situations EXCEPT A. a consumer buys something in error and wants to return it. B. a firm makes an error in completing an order. C. a product is recalled for safety reasons. D. a consumer changes her mind after purchasing a product. E. All of the above create a need for reverse channels.
E. All of the above create a need for reverse channels.
A manufacturers' agent: A. sells noncompeting products for several manufacturers in a limited territory. B. is often replaced by a manufacturer's own sales force when sales rise. C. is paid a commission on sales. D. can be especially useful to a small manufacturer with a narrow line of new products. E. All of the above.
E. All of the above.
Multichannel distribution: 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 the above.
E. All of the above.
To reduce conflicts in channels, a firm should: A. Offer different products through each channel. B. Provide some compensation to members of the older channel. C. Treat channel partners fairly even when one partner is more powerful. D. Focus on segments not currently served by existing channels. E. All of the above.
E. All of the above.
Which of the following is an effective source of ideas at the idea generation stage of the new-product development process? A. Customer complaints. B. Lead-users of the product. C. Competitors' products. D. Products found in overseas markets. E. All of the above.
E. All of the above.
A merchant wholesaler is considering four physical distribution systems and estimates the total cost and customer service level for each as follows: The best alternative is: A. truck. B. airfreight. C. rail and warehouse. D. inland waterways. E. Cannot be determined without knowing how the target customers feel about the customer service level
E. Cannot be determined without knowing how the target customers feel about the customer service level
Which of the following is true of selective distribution? A. It is commonly needed for convenience products and business supplies used by all offices. B. It is selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product. C. It is selling through only one intermediary in a particular geographic area. D. It is making a product available widely enough to satisfy target customers' needs but not exceed them. E. It is selling through only those intermediaries who will give the product special attention.
E. It is selling through only those intermediaries who will give the product special attention.
Regarding wholesalers, which of the following is the most numerous? A. Service wholesalers. B. Agent wholesalers. C. Limited-function wholesalers. D. Manufacturers' sales branches. E. Merchant wholesalers.
E. Merchant wholesalers.
Regarding supermarkets, which of the following statements is TRUE? A. They average less than $5 million a year in sales. B. Net profits after taxes usually amount to about 3 percent of sales. C. Compared to super warehouse stores, they offer lower prices and more service. D. All of the above are true. E. None of the above is true.
E. None of the above is true.
_____ as a mode of transport serves a very limited number of locations but has a high dependability in meeting schedules. A. Trucks B. Railroads C. Waterways D. Airfreight E. Pipelines
E. Pipelines
6. Midway, Inc. has seen most of its competitors drop out of its product-market due to declining industry sales and profits. But Midway still has much demand for its product from a small group of loyal customers. This product-market is in which product life cycle stage? A. Market introduction B. Market maturity C. Market development D. Market growth E. Sales decline
E. Sales decline
Which of the following statements is NOT TRUE? A. Storing is a marketing function. B. Storing allows producers and intermediaries to keep stocks at convenient locations. C. Storing allows the producer to achieve economies of scale in production. D. Storing is necessary when production of goods doesn't match consumption. E. Storing can increase the value of goods, but does not involve costs.
E. Storing can increase the value of goods, but does not involve costs.
Which of the following statements about the transporting function is TRUE? A. Among transportation modes, an advantage of air transport is its ability to handle a variety of goods. B. Because transportation costs are less than 1 percent of costs for most products, marketing managers do not need to consider them when making strategy decisions. C. Pipelines are generally one of the fastest modes of transportation. D. In most countries, government plays little role in transportation. E. Transporting costs can be a large part of the total cost for heavy products that are low in value.
E. Transporting costs can be a large part of the total cost for heavy products that are low in value.
INDIRECT channels are probably a better choice than direct channels when: A. the firm has limited financial resources. B. the product is a consumer product instead of a business product. C. target customers already have established buying patterns for where to search for the product. D. none of the above. E. all of the above.
E. all of the above.
The "regrouping activity" which involves breaking carload or truckload shipments into smaller quantities as products get closer to final customers is called: A. sorting. B. retailing. C. assorting. D. accumulating. E. bulk-breaking.
E. bulk-breaking.
All of the following are regrouping activities EXCEPT A. accumulating. B. bulk-breaking. C. sorting. D. assorting. E. channeling.
E. channeling.
Selling products manufactured in the United States to foreign customers--often without any product changes--is called: A. joint ventures. B. licensing. C. importing. D. contract manufacturing. E. exporting.
E. exporting.
The lowest cost and lowest risk way to enter a foreign market is through A. a joint venture. B. licensing. C. management contracting. D. a direct investment. E. exporting.
E. exporting.
Oceanside Tools, Inc. of Newport, Rhode Island has agreed to work with a Thai company to produce and sell chemicals in Thailand. The U.S. firm will provide technical and marketing know-how, while its Thai partner will provide knowledge of Thai markets and political connections. The partners will share the costs and profits 50/50. This type of international involvement is called: A. direct investment. B. management contracting. C. licensing. D. multinational marketing. E. joint venturing.
E. joint venturing.
. If a firm's involvement in international marketing is limited to managing others' production facilities, it is using: A. exporting. B. licensing. C. direct investment. D. joint venturing. E. management contracting.
E. management contracting.
4. Total industry profits reach their maximum during the __________ stage of the product life cycle. A. market maturity B. sales decline C. market development D. market introduction E. market growth
E. market growth
Horizontal arrangements among competing retailers, wholesalers, or producers to limit sales by customer or territory have consistently been A. shown to increase competition. B. a regular practice in the U.S. C. encouraged in the U.S. but not in many international markets. D. a successful strategy for entering international markets. E. ruled illegal by the U.S. Supreme Court.
E. ruled illegal by the U.S. Supreme Court.
All of the following are advantages of using trucks EXCEPT: A. flexibility. B. fast delivery speed. C. reliability in meeting delivery schedules. D. handling a variety of goods. E. serving a limited number of locations.
E. serving a limited number of locations.
Discrepancies of assortment" means: 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.
E. the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users.