Question 1

Reciprocity and tying contracts are legally accepted practices.

Accepted Answer

A) True 
 B)False  False

Question 2

Briefly describe the ways in which firms develop and manage integrated distribution systems.

Accepted Answer

Firms attempt to develop and manage integrated distribution systems in one of four ways: (1)a corporate VMS,which involves a vertically integrated system(2)a contractual VMS,which formulates agreements spelling out a coordinated set of rights and obligations for members of the system(3)an administered VMS,in which one firm uses its economic position or expertise to provide inducements for cooperation from other members;or (4)a relational VMS,where cooperation between two or more channel partners is based on norms of mutual trust and the expectation that cooperation will increase the total system's success and thereby make all members better off in the long term.

Question 3

Harper Inc.manufactures microwave ovens,washing machines,iron boxes,and coffee makers.Which of the following strategies would be most appropriate for the distribution of their products?

Accepted Answer

A)  Intensive distribution
B)  Selective distribution
C)  High-involvement product distribution
D)  Exclusive distribution B

Question 4

When a manufacturer requires that an independent retailer sell only the manufacturer's products it is called a(n):

Accepted Answer

A)  refusal to deal.
B)  tying contract.
C)  exclusive dealing.
D)  promotional allowance.

Question 5

Which of the following is a popular channel,particularly for products targeted at two-wage-earner households?

Accepted Answer

A)  Producer-retailer-consumer
B)  Producer-agent-retailer-user
C)  Producer-agent-user
D)  Producer-consumer

Question 6

Middlemen who sell goods directly to final consumers for their personal non-business use are known as:

Accepted Answer

A)  wholesalers.
B)  agent middlemen.
C)  sales agents.
D)  retailers.

Question 7

Which of the following is an example of nonstore retailing?

Accepted Answer

A)  Costco
B)  Lands' End
C)  Walmart
D)  Ikea

Question 8

Which of the following statements is true of promotional effort and market information?

Accepted Answer

A)  It is easy to control the behaviors of many independent middlemen.
B)  It is easy to find acceptable replacements for those who perform poorly.
C)  It is easier to control a company salesforce and company-owned warehouses,retail outlets,or websites.
D)  Firms can control activities relating to achieving high levels of promotional effort within a channel by using indirect and horizontally integrated channels.

Question 9

Feedback is crucial for firms pursuing prospector business strategies.

Accepted Answer

A) True 
 B)False

Question 10

Contractual entry modes are equity arrangements that involve the transfer of technology and/or skills to an entity in a foreign country.

Accepted Answer

A) True 
 B)False

Question 11

Services often require physical distribution activities.

Accepted Answer

A) True 
 B)False

Question 12

A sole ownership investment entry strategy involves setting up a production facility in a foreign country.

Accepted Answer

A) True 
 B)False

Question 13

Channel management decisions involve the development of policies and procedures to gain and maintain the cooperation of the various institutions within the channel.

Accepted Answer

A) True 
 B)False

Question 14

When a company measures a supermarket's display of its product in terms of the percentage of available shelf space devoted to the product weighted by the importance of the store,it is measuring:

Accepted Answer

A)  retail coverage.
B)  promotion scope.
C)  in-store positioning.
D)  display frequency.

Question 15

The main purpose of _____ is to bring buyers and sellers together for an exchange.

Accepted Answer

A)  sales agents
B)  manufacturers' agents
C)  brokers
D)  intermediaries

Question 16

When the brand holds a small relative share of the total market,the firm may have to offer extra incentives and inducements to wholesalers or retailers to achieve an adequate product availability.

Accepted Answer

A) True 
 B)False

Question 17

Splurge Inc. ,sells exquisite perfumes,bags,and designer wear.It is associated with high quality,prestige,and excellent customer service.Which of the following forms of distribution would be most appropriate for Splurge Inc.?

Accepted Answer

A)  Cost-effective distribution
B)  Intensive distribution
C)  Selective distribution
D)  Exclusive distribution

Question 18

Franchising is the simplest way to enter a foreign market because it involves the least commitment and risk.

Accepted Answer

A) True 
 B)False

Question 19

A _____ entry strategy involves setting up a production facility in a foreign country.

Accepted Answer

A)  licensing
B)  sole ownership investment
C)  countertrade
D)  franchising

Question 20

Identify some of the incentives that can be provided to increase personal selling effort.

Accepted Answer

The answer of Identify some of the incentives that can...

Exam 12: Distribution Channel Decisions

Reciprocity and tying contracts are legally accepted practices.

Briefly describe the ways in which firms develop and manage integrated distribution systems.

Harper Inc.manufactures microwave ovens,washing machines,iron boxes,and coffee makers.Which of the following strategies would be most appropriate for the distribution of their products?

When a manufacturer requires that an independent retailer sell only the manufacturer's products it is called a(n) :

Which of the following is a popular channel,particularly for products targeted at two-wage-earner households?

Middlemen who sell goods directly to final consumers for their personal non-business use are known as:

Which of the following is an example of nonstore retailing?

Which of the following statements is true of promotional effort and market information?

Feedback is crucial for firms pursuing prospector business strategies.

Contractual entry modes are equity arrangements that involve the transfer of technology and/or skills to an entity in a foreign country.

Services often require physical distribution activities.

A sole ownership investment entry strategy involves setting up a production facility in a foreign country.

Channel management decisions involve the development of policies and procedures to gain and maintain the cooperation of the various institutions within the channel.

When a company measures a supermarket's display of its product in terms of the percentage of available shelf space devoted to the product weighted by the importance of the store,it is measuring:

The main purpose of _____ is to bring buyers and sellers together for an exchange.

When the brand holds a small relative share of the total market,the firm may have to offer extra incentives and inducements to wholesalers or retailers to achieve an adequate product availability.

Splurge Inc. ,sells exquisite perfumes,bags,and designer wear.It is associated with high quality,prestige,and excellent customer service.Which of the following forms of distribution would be most appropriate for Splurge Inc.?

Franchising is the simplest way to enter a foreign market because it involves the least commitment and risk.

A _____ entry strategy involves setting up a production facility in a foreign country.

Identify some of the incentives that can be provided to increase personal selling effort.