119) Franchising is one form of a(n)
A) corporate vertical marketing system.
B) horizontal marketing system.
C) administered vertical marketing system.
D) wholesaler-sponsored voluntary system.
E) contractual vertical marketing system.
120) There are four popular types of franchising, one of which is
A) service-sponsored retail franchise systems.
B) manufacturer-sponsored wholesale franchise systems.
C) horizontal-marketing franchise systems.
D) contractual-sponsored franchise systems.
E) customer-oriented franchise systems.
121) The four most popular types of franchise arrangements are
A) service-sponsored franchise systems, service-sponsored retail franchise systems,
manufacturer-sponsored wholesale franchise systems, and manufacturer-sponsored retail
franchise systems.
B) service-sponsored retail franchise systems, corporate vertical marketing systems, wholesaler-
sponsored voluntary chains, and service-sponsored franchise systems.
C) manufacturer-sponsored wholesale franchise systems, service-sponsored retail franchise
systems, corporate vertical marketing systems, and wholesaler-sponsored voluntary chains.
D) manufacturer-sponsored retail franchise systems, service-sponsored retail franchise systems,
corporate vertical marketing systems, and wholesaler-sponsored voluntary chains.
E) administered vertical marketing systems, service-sponsored retail franchise systems, corporate
vertical marketing systems, and wholesaler-sponsored voluntary chains.
122) Ford uses a(n) ________, whereby the company licenses dealers in North America to sell
Ford automobiles subject to various sales and service conditions.
A) service-sponsored producer franchise system
B) service-sponsored retail franchise system
C) manufacturer-sponsored wholesale franchise system
D) manufacturer-sponsored retail franchise system
E) administered vertical marketing system
123) Jacob has developed a lawn care service that will revolutionize the lawn care industry.
Jacob has limited operating capital and yet he still wants a wide distribution of his new product.
Which of the following options would be the best choice for Jacob?
A) He should develop an administered vertical marketing system.
B) He should establish a corporate vertical marketing system.
C) He should open branch offices around the country to provide the exposure he needs.
D) He should establish a wholesaler-sponsored voluntary chain.
E) He should establish a service-sponsored retail franchise system.
124) A(n) ________ is common in the soft drink industry where the manufacturer sells its
concentrate to wholesalers, that carbonate it and market the finished product to retailers.
A) service-sponsored franchise system
B) service-sponsored retail franchise system
C) manufacturer-sponsored wholesale franchise system
D) manufacturer-sponsored retail franchise system
E) administered vertical marketing system
125) Firms that have designed a unique approach for performing a service and wish to profit by
selling the franchise to others employ a(n)
A) customer-generated franchising system.
B) service-sponsored retail franchise system.
C) manufacturer-sponsored wholesale franchise system.
D) manufacturer-sponsored retail franchise system.
E) administered vertical marketing systems.
126) A(n) ________ exists when a franchisor licenses individuals or firms to dispense a service
under a trade name and specific guidelines.
A) service-sponsored retail franchise system
B) manufacturer-sponsored wholesale franchise system
C) manufacturer-sponsored retail franchise system
D) administered vertical marketing system
E) service-sponsored franchise system
127) A(n) ________ is common in the employment services and tax services industries where
franchisors license individuals or firms to dispense a service under a trade name and specific
guidelines.
A) service-sponsored franchise system
B) service-sponsored retail franchise system
C) manufacturer-sponsored wholesale franchise system
D) manufacturer-sponsored retail franchise system
E) administered vertical marketing system
128) The type of vertical marketing system that achieves coordination at successive stages of
production and distribution by the size and influence of one channel member rather than through
ownership is referred to as a(n)
A) corporate vertical marketing system.
B) integrated vertical marketing system.
C) contractual vertical marketing system.
D) administered vertical marketing system.
E) interactive vertical marketing system.
129) An administered vertical marketing system is a marketing system
A) that achieves coordination at successive stages of production and distribution by contractual
agreements between channel members.
B) that achieves coordination at successive stages of production and distribution by cooperation
and consensus among all members of the marketing chain.
C) that achieves coordination at successive stages of production and distribution by the size and
influence of one channel member rather than through ownership.
D) where a channel member (producer, wholesaler, or retailer) is elected to coordinate, direct,
and support all other channel members.
E) that is run and coordinated completely outside the traditional chain of distribution by a firm
that specializes in that industry’s specific logistics needs.
130) Which of the following statements best describes the difference between a corporate
vertical marketing system and an administered vertical marketing system?
A) Administered vertical marketing systems gain power through ownership while corporate
vertical marketing systems gain power through contractual agreement.
B) Administered vertical marketing systems gain power through the size and influence of one
channel member and through ownership, rather than through contractual arrangement.
C) Administered vertical marketing systems gain power through contractual agreements and
ownership rather than through size.
D) Administered vertical marketing systems are usually larger and more profitable than
corporate vertical marketing systems.
E) Administered vertical marketing systems achieve coordination at successive stages of
production and distribution by the size and influence of one channel member rather than through
ownership.
131) Procter & Gamble can obtain cooperation from supermarkets in terms of displaying,
promoting, and pricing its products, given its broad assortment of brand-name products. Which
type of vertical marketing system does Procter & Gamble represent?
A) corporate vertical marketing system
B) integrated vertical marketing system
C) contractual vertical marketing system
D) administered vertical marketing system
E) forward integration vertical marketing system
132) Walmart can obtain cooperation from manufacturers in terms of product specifications,
price levels, and promotional support, given its position as the world’s largest retailer. Walmart is
an example of a(n)
A) service-sponsored retail system.
B) administered vertical marketing system.
C) retailer-sponsored cooperative.
D) administered cooperative system.
E) manufacturer-sponsored cooperative.
133) When choosing a marketing channel or intermediary, it is important to ask several key
questions, including which of these?
A) How many of the firm’s competitors will be using the same channels?
B) Which channels have strategic channel alliances with other resellers?
C) How long have the channel members and intermediaries been in business?
D) Who is responsible for negotiating the channel or intermediary contracts?
E) Which channel and intermediaries will provide the best coverage of the target market?
134) In terms of target market coverage, density refers to the number of ________ in a
geographical area.
A) target market customers
B) competitors
C) wholesalers
D) retail stores
E) stakeholders
135) In marketing, ________ describes the number of stores in a geographical area.
A) density
B) breadth
C) depth
D) mass
E) concentration
136) The three degrees of distribution density are
A) intensive, extensive, and selective.
B) extensive, concentrated, and selective.
C) intensive, exclusive, and selective.
D) extensive, pervasive, and concentrated.
E) concentrated, exclusive, and intensive.
137) When a firm tries to place its products or services in as many outlets as possible, the density
of distribution is referred to as
A) intensive distribution.
B) extensive distribution.
C) selective distribution.
D) exclusive distribution.
E) concentrated distribution.
138) Intensive distribution refers to
A) the distribution of products or services in markets where there are currently no other
competitors.
B) the distribution of products or services where the producer owns the entire channel of
distribution.
C) the density of distribution whereby a firm tries to place its products or services with only one
retail outlet in a specified geographical area.
D) the density of distribution whereby a firm tries to place its products or services in as many
outlets as possible.
E) the density of distribution whereby a firm chooses to place its products or services in very few
retail outlets in a specific area to generate excitement.
139) Candy bars most likely would be sold using which type of target market coverage?
A) exclusive distribution
B) direct distribution
C) intensive distribution
D) dual distribution
E) selective distribution
140) Snack foods, bottled water, and batteries most likely would use which type of distribution
density?
A) extensive distribution
B) intensive distribution
C) selective distribution
D) exclusive distribution
E) concentrated distribution
141) When only one retailer in a geographical area carries a firm’s products, the density of
distribution is referred to as
A) intensive distribution.
B) extensive distribution.
C) selective distribution.
D) concentrated distribution.
E) exclusive distribution.
142) Exclusive distribution refers to
A) the distribution of products or services in markets where there are currently no other
competitors.
B) the distribution of products or services where the producer owns the entire channel of
distribution.
C) the density of distribution whereby a firm tries to place its products or services with only one
retail outlet in a specified geographical area.
D) the density of distribution whereby a firm tries to place its products or services in as many
outlets as possible.
E) the density of distribution whereby a firm tries to place its products or services in a few retail
outlets in a specific area.
143) There are three degrees of distribution density, one of which is intensive distribution. What
would best be considered the opposite of this degree of distribution density?
A) exhaustive distribution
B) thorough distribution
C) selective distribution
D) concentrated distribution
E) exclusive distribution
144) Retailers and industrial distributors prefer exclusive distribution for two reasons. One is that
A) it is the most common form of distribution intensity.
B) it eliminates channel conflict.
C) it is usually chosen for convenience.
D) it has market coverage benefits.
E) it limits head-to-head competition for an identical product.
145) Retailers and industrial distributors prefer exclusive distribution for two reasons. One is that
A) it provides a point of difference for a retailer or distributor.
B) it eliminates channel conflict.
C) it is usually chosen for convenience.
D) it has market coverage benefits.
E) it is the most common form of distribution intensity.
146) John Deere manufactures and distributes industrial and farm equipment. This type of
equipment is considered to be a specialty product. Which type of market coverage does John
Deere most likely use?
A) intensive distribution
B) exclusive distribution
C) extensive distribution
D) selective distribution
E) private label distribution
147) Bentley Motors makes one of the world’s most prestigious automobile brands, targeting the
ultra-luxury segment. Which type of market coverage does Bentley most likely use?
A) intensive distribution
B) extensive distribution
C) selective distribution
D) exclusive distribution
E) private label distribution
148) Which type of distribution density does Piaget use when the maker of fine jewelry and
watches distributes its products through a single retailer in select cities in the United States?
A) intensive distribution
B) extensive distribution
C) selective distribution
D) exclusive distribution
E) private label distribution
149) Manufacturers most likely would use exclusive distribution for which of the following
products?
A) Timex watches, Hanes underwear, and Nike shoes
B) Chanel perfume, Steinway pianos, and Baccarat crystal
C) Oreos, Teddy Grahams, and Nilla Wafers
D) paper clips, light bulbs, and file folders
E) Stouffer’s meals, Breyer’s Ice Cream, and Coca-Cola
150) A level of distribution density whereby a firm tries to place its products in a few retail
outlets in a specific geographical area is referred to as
A) intensive distribution.
B) extensive distribution.
C) selective distribution.
D) exclusive distribution.
E) concentrated distribution.
151) Selective distribution refers to
A) the density of distribution whereby a firm tries to place its products or services in as many
outlets as possible.
B) the distribution of products or services in markets where there are currently no other
competitors.
C) the distribution of products or services where the producer owns the entire channel of
distribution.
D) the density of distribution whereby a firm tries to place its products or services with only one
retail outlet in a specified geographical area.
E) the density of distribution whereby a firm tries to place its products or services in a few retail
outlets in a specific area.
152) Which type of distribution lies between the two distribution extremes and means that a firm
selects a few retail outlets in a specific geographical area to carry its products?
A) intensive distribution
B) extensive distribution
C) exclusive distribution
D) selective distribution
E) concentrated distribution
153) The distribution intensity associated with products such as Dell personal computers is
referred to as
A) intensive distribution.
B) selective distribution.
C) extensive distribution.
D) exclusive distribution.
E) concentrated distribution.
154) Which is the most common form of distribution intensity used today?
A) selective distribution
B) intensive distribution
C) extensive distribution
D) exclusive distribution
E) concentrated distribution
155) In choosing the appropriate marketing channel, a firm should consider the interests that
buyers might want fulfilled. These interests fall into four broad categories, one of which is
A) profitability.
B) convenience.
C) quality.
D) brand name recognition.
E) availability.
156) All of the following are buyer requirements for choosing a marketing channel except
which?
A) pre- or postsale services
B) convenience
C) variety
D) ownership
E) information
157) The most important consideration in choosing a marketing channel when buyers have
limited knowledge or desire specific data about a product or service is to provide
A) postsale services.
B) seller adaptability.
C) information.
D) convenience.
E) presale services.
158) Which buyer requirement would be most important in choosing a channel for a financial
service for a novice investor who is interested in setting up a retirement account?
A) information
B) context
C) variety
D) pre- and postsale services
E) adaptation