Questions with Verified
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When businesses want to make their products available to customers but do not want to over-
distribute their goods and services, they are seeking
A. ideal market exposure. C. direct distribution capabilities. B. exclusive marketing channels. D.
intense segment coverage. - Answer: Ideal market exposure. When a business takes steps to
ensure that a product is available to the target market without over-distributing the product, it
is seeking ideal market exposure. If product supply is higher than demand, the business loses
money on the unsold products. Therefore, businesses strive to obtain ideal market exposure to
satisfy demand but not have a surplus of goods. Exclusive and intensive are distribution
patterns. The type of distribution pattern that a business uses depends on its ideal market
exposure. Direct distribution is a type of distribution channel in which goods and services move
directly from the producer to the consumer or industrial user.
Which of the following is an example of vertical conflict within a distribution channel:
A. A producer uses a short distribution channel to move its perishable goods.
B. A manufacturer wants to distribute its products through all available channels in a certain
area.
C. A large electronics retailer offers a popular item at an extremely low price to attract
customers.
D. A retail chain develops a private brand to compete with the national brands that it sells. -
Answer: A retail chain develops a private brand to compete with the national brands that it
sells. Vertical conflict occurs between channel members at different levels within the same
distribution channel. A retailer that develops and markets a private line of products (e.g., CVS
over-the-counter medications) is selling products that compete with the national brands it
carries (e.g., Tylenol, Zyrtec, and Advil). Most often, the private brand is less expensive than
, national brands because the retailer does not spend as much money for packaging and
advertising as the national brands do. This can cause conflict with the national brand
manufacturers because the private brand has the potential to take some of their market share.
A retailer that offers a popular item at an extremely low price to attract customers is using a
loss-leader technique, which may cause horizontal conflict. A business that distributes its
products through all available channels in a certain area is using an intensive distribution
strategy, which is a common distribution strategy for many consumer goods (e.g., candy bars
and bubble gum). Using a short distribution channel to move perishable goods is unlikely to
cause ongoing channel conflict.
PRD Manufacturing quickly realigned its production processes to meet a sudden rise in
customer demand for its products. What characteristic of an adaptable organization did the
manufacturing company exhibit?
A. Culture intelligence C. Innovation
B. Agility D. Competitive aggression - Answer: Agility. Agility is the ability to change quickly. Agile
organizations are to anticipate changes in the marketplace and align their resources effectively
to implement the changes quickly. Because agility requires flexibility, organizations use different
strategies to stay flexible, including innovative management and competitive aggression.
Cultural intelligence, which involves a high level of cultural sensitivity and awareness, is another
characteristic of adaptable organizations.
Which of the following is a reason why someone might have trouble adapting to new
circumstances: A. Missed opportunities C. Contentment
B. Objectivity D. Empathy - Answer:
The primary purpose of building political relationships in the workplace is to
A. create a competitive environment. B. get ahead at any cost.
C. influence others' behavior. D. reduce internal conflict. - Answer: Influence others' behavior.
Political relationships involve gaining influence within the organization by building alliances with
managers and colleagues. Employees who build positive political relationships in the workplace
are in a better position to persuade others to adopt organizational changes. People tend to
distrust individuals who use unethical or negative tactics to get ahead. Negative "office politics"
tend to create conflict and an overly competitive work environment.