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Basic Marketing, 10th Canadian Edition
Basic Marketing: A Global Managerial Approach, 10/e
Stanley J. Shapiro
Kenneth B. Wong, Queens School of Business
William D. Perreault, University of North Carolina
E. Jerome McCarthy, Michigan State University

Place and Development of Channel Systems

Quiz Questions


"Regrouping activities" involve adjusting the quantities and/or assortments of products handled at each level in a channel of distribution.

One way to evaluate the potential of any e-commerce business is by considering the range of "universal marketing functions" they perform electronically.

Producers who wish to lead their channel must spend considerable resources to research customer needs and preferences.

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

Reverse channels are used when dual distribution fails.

In a pure subsistence economy:
A)there is no need for intermediaries.
B)no marketing takes place.
C)the standard of living is relatively low.
D)each family unit is self-sufficient.
E)all of the above.

Using intermediaries:
A)is economically inefficient because each one adds a markup.
B)was used a long time ago in simple markets and is not relevant today.
C)reduces the number of transactions for each participant in a market.
D)takes more time and effort than dealing directly with producers.
E)discourages specialization.

An intermediary is LEAST likely to provide:
A)economic utility.
B)form utility.
C)possession utility.
D)time utility.
E)place utility.

Public warehouses, advertising agencies, and financial institutions are examples of:
B)central markets.
D)vertical integration.
E)exclusive distribution.

Which of the following is LEAST likely to be considered as a marketing facilitator?
A)CP Rail
B)Evans Research
C)J. Walter Thompson Advertising
D)Bank of Nova Scotia
E)Cyanamid Chemical

The primary purpose of the transporting and storing functions of marketing is to overcome:
A)spatial separation.
B)discrepancies of assortment.
C)separation of values.
D)the need for marketing specialists.
E)high prices.

A)involves distributing products to many small consumers.
B)is important in situations where there are many small producers.
C)is a useful practice only for very large producers.
D)means dividing larger quantities into smaller quantities as products get closer to the final market.
E)means the same as bulk-breaking.

The universal functions of marketing:
A)create form utility.
B)create various separations and discrepancies between producers and consumers.
C)can be eliminated in advanced MACRO-marketing systems.
D)are performed differently and by different parties in different economic systems.
E)all of the above.

The standardization and grading function of marketing involves:
A)sorting products according to size and quality.
B)looking for and evaluating goods and services.
C)collection, analysis and distribution of marketing information.
D)movement of goods from one place to another.
E)promoting goods and services.

"Place" decisions:
A)are harder to change than product, promotion, or price decisions.
B)may focus on the location of retail stores and wholesale facilities.
C)can be aided by knowing about product classes.
D)may focus on the selection and use of intermediaries and facilitators.
E)all of the above.

A disadvantage of direct to customer channels is that:
A)they require the producer to co-ordinate with many retailers.
B)they are not suitable when the number of transactions is small or when orders are large.
C)they make it more difficult to serve buyers who want to lease rather than buy products.
D)they are illegal in business and organizational markets.
E)none of the above.

Burlington Mills, a manufacturer of textile products, bought out the wholesaler that had been handling its distribution in Canada. This is an example of:
A)vertical integration.
C)a contractual channel system.
D)dual distribution.
E)reverse distribution.

A computer manufacturer runs training programs for its co-operating retailers' salespeople as well as providing newspaper advertising layouts, point-of-purchase materials, and sales manuals. This is an example of:
A)vertically integrated corporate channel system.
B)a franchising system.
C)a traditional channel system.
D)an administered channel system.
E)a contractual channel system.

Which of the following is NOT one of the degrees of market exposure?
A)exclusive distribution
B)selective distribution
C)intensive distribution
D)dual distribution
E)none of the above, i.e. all are degrees of market exposure

Legal concerns about channel of distribution arrangements are likely to arise when:
A)a firm uses dual distribution to reach its target markets.
B)a corporate channel system is involved.
C)a traditional channel system is involved.
D)the firm is using intensive distribution.
E)there are horizontal arrangements between firms at the same level of the channel.