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Basic Marketing A Strategic Marketing Planning Approach 19th Edition by Perreault TB

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  • ISBN-10 ‏ : ‎ 0078028981
  • ISBN-13 ‏ : ‎ 978-0078028984

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SKU:tb1002040

Basic Marketing A Strategic Marketing Planning Approach 19th Edition by Perreault TB

Chapter 10
Place and Development of Channel Systems

True / False Questions

1. Place decisions make goods and services available in the right quantities and locations, when customers want them.

True False

2. Place is concerned with the selection and use of marketing specialists—intermediaries and collaborators—and making goods and services available in the right quantities and locations when customers want them.

True False

3. A channel of distribution is a series of firms or individuals participating in the flow of products from the producer to the consumer.

True False

4. Product classes help marketing managers understand how much market exposure will be needed in each geographic area.

True False

5. Place decisions are easier to change in the short-run than Product, Price, and Promotion decisions.

True False

6. The Internet is making it possible for firms to reach customers that were impossible to reach before.

True False

7. With the Internet, even very small specialized firms can draw customers from all over the world.

True False

8. The Internet gives large firms access to repeat customers, but it does little for small firms trying to develop an initial base of customers.

True False

9. Firms that use direct distribution can usually adjust their marketing mixes faster than firms that use indirect distribution.

True False

10. Aggressive, market-oriented intermediaries are almost always available and eager to handle the distribution of innovative, new products.

True False

11. Some firms are forced to use direct distribution when they can’t find intermediaries willing to carry innovative, new products.

True False

12. Selling direct-to-customer is more common with business products than consumer products.

True False

13. Direct-to-customer channels are rarely used in business markets because they are much more expensive and less efficient than using intermediaries.

True False

14. Many business products are sold direct, but hardly any services are.

True False

15. Consumer product companies such as Tupperware that appear to be selling direct may not be because their salespeople are independent distributors, not company employees.

True False

16. The terms “direct marketing” and “direct distribution” mean the same thing.

True False

17. Firms that use direct marketing promotion may or may not use direct distribution.

True False

18. Direct marketing is primarily concerned with Promotion, not Place.

True False

19. A producer who wants to reach certain customers may have no choice about which wholesaler to use.

True False

20. A wholesaler might help a producer by reducing the producer’s need to carry large inventory stocks.

True False

21. A wholesaler might help a producer by reducing the producer’s need for market research.

True False

22. The most important reason to use indirect channels is if intermediaries can help serve customers better and at lower cost.

True False

23. Discrepancies of quantity occur because individual producers want to produce large quantities of products while individual consumers prefer to buy products in small quantities.

True False

24. Discrepancies of assortment occur because individual producers tend to specialize in producing a large assortment of products while individual consumers prefer to buy a small assortment of products.

True False

25. Discrepancies of quantity and assortment occur because individual producers find it economical to produce and sell small quantities of a large assortment of products while individual consumers prefer to buy large quantities of a small assortment of products.

True False

26. Discrepancy of quantity means the difference between the lines a typical producer makes and the assortment final consumers want.

True False

27. “Regrouping activities” involve adjusting the quantities or assortments of products handled at each level in a channel of distribution.

True False

28. When a warehouse is rearranged to speed up order processing, “regrouping activities” are being performed.

True False

29. Accumulating involves dividing larger quantities into smaller quantities as products get closer to the final market.

True False

30. Accumulating involves collecting products from many small producers—often as a way to get lower transportation rates.

True False

31. Bulk-breaking means separating products into grades and qualities desired by different target markets.

True False

32. “Sorting” means separating products into grades and qualities desired by different target markets.

True False

33. Assorting activities involve putting together a variety of products to give a target market what it wants.

True False

34. Assorting means separating products into grades and qualities desired by different target markets.

True False

35. Distribution costs can be very low for digital products because there is often no physical good to distribute.

True False

36. Digital products cost more to distribute than physical products.

True False

37. In an indirect channel of distribution, both vertical conflict and horizontal conflict may arise.

True False

38. Channel conflict often results when a manufacturer opens a new distribution channel, especially if it directly competes with its existing intermediaries.

True False

39. A new channel is more likely to prompt conflict if it focuses on segments not already served by current channels.

True False

40. One way for a producer to reduce conflict with channel partners is to offer different products in each different channel.

True False

41. A “channel captain” is a manager who helps direct the activities of a whole channel.

True False

42. A channel captain helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.

True False

43. Most traditional channel systems don’t have a channel captain.

True False

44. According to the text, it’s best for the “channel captain” to be a producer rather than a wholesaler or retailer.

True False

45. Because wholesalers and retailers are closer to the final user, they are in an ideal position to assume the channel captain role.

True False

46. Horizontal marketing systems are channel systems in which the whole channel focuses on the same target market at the end of the channel.

True False

47. In administered channel systems, vertical cooperation is achieved by acquiring firms at different levels of activity.

True False

48. Administered and contractual channel systems are vertical marketing systems which depend on informal agreements—or contracts between channel members—to cooperate.

True False

49. Any contractual channel system—by definition—is also an administered channel system.

True False

50. Vertical marketing systems account for a majority of U.S. retail sales.

True False

51. Vertical marketing systems are growing in the U.S., but declining in the rest of the world.

True False

52. Traditional channel systems are growing faster than vertical marketing systems.

True False

53. Firms that cooperate to build vertical marketing systems typically share a longer-term commitment.

True False

54. “Ideal market exposure” should make a product widely enough available to satisfy target customers’ needs, but not exceed them.

True False

55. “Ideal market exposure” means selling a product through all intermediaries willing to stock and sell it.

True False

56. Intensive distribution is selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.

True False

57. Intensive distribution is selling through only those intermediaries who will give the product special attention.

True False

58. Intensive distribution covers the broad area of market exposure between selective and exclusive distribution.

True False

59. Selective distribution is becoming more popular than intensive distribution as firms see that they do not need 100 percent coverage of a market to support national advertising.

True False

60. Selective distribution is growing in popularity because it provides 100 percent coverage of the market.

True False

61. The “80/20 rule” is more likely to apply to a firm that uses intensive distribution than a firm that uses selective distribution.

True False

62. Compared to intensive distribution, selective distribution gives a producer a greater opportunity for profit but usually makes it more difficult for intermediaries to make a profit.

True False

63. Exclusive distribution is selling through only one intermediary in each geographic area.

True False

64. Horizontal agreements to limit sales by territory or customer are always illegal according to the Supreme Court.

True False

65. Vertical agreements to limit sales by customer or territory are always illegal, while horizontal agreements may be legal sometimes.

True False

66. Exclusive distribution is more likely to involve a more formal arrangement than is selective or intensive distribution.

True False

67. A manufacturer that uses several competing channels to reach the same target market is using “multichannel distribution.”

True False

68. Multichannel distribution occurs when a producer uses several competing channels to reach the same target market perhaps using several intermediaries in addition to selling directly.

True False

69. A manufacturer may be forced to use multichannel distribution because a big retail chain wants to deal directly with it instead of wholesalers.

True False

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