MKT 3301 EXAM 3 (CH 10-14) QUESTIONS AND
VERIFIED ANSWERS
A channel of distribution
- cannot include use of direct distribution from a website
- is a model that helps manufacturers track how final consumers distribute their income
among various needs
- describes the method through which a product is shipped to a customer
- must have at least three members—a manufacturer, a wholesaler, and a retailer
- is a series of firms or individuals who participate in the flow of products from producer
to final user or consumer - Answers - is a series of firms or individuals who participate in
the flow of products from producer to final user or consumer
In the context of the relationship between consumer product classes and ideal Place
objectives, which of the following statements is true?
- Marketers should avoid selling heterogeneous shopping goods through online stores
- Widespread distribution is necessary for specialty goods
- Marketers should avoid selling unsought products at locations where other, related
products are sold
- Accessory equipment and MRO supplies only require selective distribution
- Homogeneous shopping goods favor low-cost retailers - Answers - Homogeneous
shopping goods favor low-cost retailers
When producers want to handle the distribution job entirely by themselves, they
- sell directly to wholesalers
- operate their own stores or sell directly to customers through a website
- sell directly to retailers
- expect to have less control over the marketing mix
,- coordinate marketing mixes with channel partners - Answers - operate their own stores
or sell directly to customers through a website
Which of the following is not true regarding channels of distribution?
- Service firms often use direct channels because services are usually performed on the
spot, in the presence of customers
- Consumer products that businesses sell through intermediaries may still make use of
"direct marketing"
- Most consumer products are sold directly to consumers by the products' producers
- Many business products are sold direct-to-customer because business markets have
fewer transactions
- Direct distribution usually requires a significant investment in facilities - Answers - Most
consumer products are sold directly to consumers by the products' producers
When a firm's target market is accustomed to shopping at certain retailers or
wholesalers, that firm will probably need to use ______ channels of distribution to reach
its desired customers.
- heterogeneous
- direct
- homogeneous
- indirect
- online - Answers - indirect
Which of the following best explains the concept of "discrepancies" in the marketplace?
- The assortment and quantity of products required by a customer may be different from
those produced by a manufacturer
- Price is not always a reliable measure of a product's quality
- Supply and demand is no longer determined by market forces because "big business"
is more powerful than the individual consumer
- Firms produce what they want to sell rather than what customers want to buy
,- There are many more consumers than producers in the marketplace - Answers - The
assortment and quantity of products required by a customer may be different from those
produced by a manufacturer
Accumulating, bulk-breaking, sorting, and assorting are _____ activities performed by
channel specialists to adjust discrepancies.
- liquidating
- reversing
- corrective
- regrouping
- tallying - Answers - regrouping
In the market environment, discrepancies of quantity occur because
- there are more consumers in the marketplace than producers
- consumers demand more product variety than producers can make
- individual producers often make larger quantities of products than individual
consumers normally want to buy
- some consumers have more money than others
- individual producers tend to focus on quality, while individual consumers only want
large quantities of products at low prices - Answers - individual producers often make
larger quantities of products than individual consumers normally want to buy
Why is the assortment process beneficial?
- Different target markets are typically looking for goods of varying quality
- Gathering similar products together from many small producers creates bulk quantities
that are attractive to many buyers
- Producers can save money by producing items in large quantities, but consumers
often want to buy goods in small quantities
- Consumers often find it convenient to shop for products created by many different
firms all in one place
, - Selling directly to consumers saves money for producers and helps them to control the
marketing message - Answers - Consumers often find it convenient to shop for products
created by many different firms all in one place
When a channel has a shared "product-market commitment"
- channel members focus on the same target market at the end of the channel
- channel members need not cooperate with each other
- competition among channel members is completely absent
- marketers of consumer products compete against service companies
- All of these alternatives are correct - Answers - channel members focus on the same
target market at the end of the channel
Traditional channel systems are characterized by channel partners who
- pursue a common set of objectives
- lack a shared product-market commitment
- do not buy and sell from each other
- seek cooperation among all members
- do not view other members as competitors - Answers - lack a shared product-market
commitment
Vibgyor Phones Inc., a cell phone manufacturer, expects its retailers not to sell other
brands of cell phones in their stores. However, most retailers disagree with this, arguing
that their profitability is reduced when they carry only one brand. Such conflicts are
referred to as ______ conflicts.
- spiral
- circular
- horizontal
- vertical
- nonlinear - Answers - vertical
A channel captain is best described as a manager who
VERIFIED ANSWERS
A channel of distribution
- cannot include use of direct distribution from a website
- is a model that helps manufacturers track how final consumers distribute their income
among various needs
- describes the method through which a product is shipped to a customer
- must have at least three members—a manufacturer, a wholesaler, and a retailer
- is a series of firms or individuals who participate in the flow of products from producer
to final user or consumer - Answers - is a series of firms or individuals who participate in
the flow of products from producer to final user or consumer
In the context of the relationship between consumer product classes and ideal Place
objectives, which of the following statements is true?
- Marketers should avoid selling heterogeneous shopping goods through online stores
- Widespread distribution is necessary for specialty goods
- Marketers should avoid selling unsought products at locations where other, related
products are sold
- Accessory equipment and MRO supplies only require selective distribution
- Homogeneous shopping goods favor low-cost retailers - Answers - Homogeneous
shopping goods favor low-cost retailers
When producers want to handle the distribution job entirely by themselves, they
- sell directly to wholesalers
- operate their own stores or sell directly to customers through a website
- sell directly to retailers
- expect to have less control over the marketing mix
,- coordinate marketing mixes with channel partners - Answers - operate their own stores
or sell directly to customers through a website
Which of the following is not true regarding channels of distribution?
- Service firms often use direct channels because services are usually performed on the
spot, in the presence of customers
- Consumer products that businesses sell through intermediaries may still make use of
"direct marketing"
- Most consumer products are sold directly to consumers by the products' producers
- Many business products are sold direct-to-customer because business markets have
fewer transactions
- Direct distribution usually requires a significant investment in facilities - Answers - Most
consumer products are sold directly to consumers by the products' producers
When a firm's target market is accustomed to shopping at certain retailers or
wholesalers, that firm will probably need to use ______ channels of distribution to reach
its desired customers.
- heterogeneous
- direct
- homogeneous
- indirect
- online - Answers - indirect
Which of the following best explains the concept of "discrepancies" in the marketplace?
- The assortment and quantity of products required by a customer may be different from
those produced by a manufacturer
- Price is not always a reliable measure of a product's quality
- Supply and demand is no longer determined by market forces because "big business"
is more powerful than the individual consumer
- Firms produce what they want to sell rather than what customers want to buy
,- There are many more consumers than producers in the marketplace - Answers - The
assortment and quantity of products required by a customer may be different from those
produced by a manufacturer
Accumulating, bulk-breaking, sorting, and assorting are _____ activities performed by
channel specialists to adjust discrepancies.
- liquidating
- reversing
- corrective
- regrouping
- tallying - Answers - regrouping
In the market environment, discrepancies of quantity occur because
- there are more consumers in the marketplace than producers
- consumers demand more product variety than producers can make
- individual producers often make larger quantities of products than individual
consumers normally want to buy
- some consumers have more money than others
- individual producers tend to focus on quality, while individual consumers only want
large quantities of products at low prices - Answers - individual producers often make
larger quantities of products than individual consumers normally want to buy
Why is the assortment process beneficial?
- Different target markets are typically looking for goods of varying quality
- Gathering similar products together from many small producers creates bulk quantities
that are attractive to many buyers
- Producers can save money by producing items in large quantities, but consumers
often want to buy goods in small quantities
- Consumers often find it convenient to shop for products created by many different
firms all in one place
, - Selling directly to consumers saves money for producers and helps them to control the
marketing message - Answers - Consumers often find it convenient to shop for products
created by many different firms all in one place
When a channel has a shared "product-market commitment"
- channel members focus on the same target market at the end of the channel
- channel members need not cooperate with each other
- competition among channel members is completely absent
- marketers of consumer products compete against service companies
- All of these alternatives are correct - Answers - channel members focus on the same
target market at the end of the channel
Traditional channel systems are characterized by channel partners who
- pursue a common set of objectives
- lack a shared product-market commitment
- do not buy and sell from each other
- seek cooperation among all members
- do not view other members as competitors - Answers - lack a shared product-market
commitment
Vibgyor Phones Inc., a cell phone manufacturer, expects its retailers not to sell other
brands of cell phones in their stores. However, most retailers disagree with this, arguing
that their profitability is reduced when they carry only one brand. Such conflicts are
referred to as ______ conflicts.
- spiral
- circular
- horizontal
- vertical
- nonlinear - Answers - vertical
A channel captain is best described as a manager who
