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49. ABC Company is having trouble keeping merchandise in stock because its suppliers are unreliable. ABC
needs to deal with its
a. channel members.
b. supply chain management.
c. customer distribution route.
d. downstream partners.
50. The downstream partners that help a company reach consumers comprise the
a. supply chain.
b. logistics.
c. distribution channel.
d. channel members.
51. Tech Gadgets Co. is revamping its distribution strategy. If the goods manufactured by Tech Gadgets Co. are
simple, inexpensive, and easily transported, it is typical that they would be distributed widely and
a. selectively.
b. comparatively.
c. intensively.
d. pushed.
52. Tech Gadgets Co. distributes complex and relatively expensive goods, with customers typically requiring
assistance before purchasing. The channels for these types of products are often structured to be
a. comparative.
b. intensive.
c. pulled.
d. selective.
53. Most consumers wouldn’t drive very far to buy a pack of gum since it’s a lost-cost item that is often bought
on impulse. Therefore, this product needs to be distributed
a. intensively.
b. selectively.
c. paradoxically.
d. partially.
54. Automobiles are complicated and expensive and require the help of a salesperson for a customer to make a
purchase decision. Therefore, they need to be distributed
a. intensively.
b. selectively.
c. extensively.
d. upstream.
55. What term refers to the extreme case of selectivity?
a. distribution channel
b. exclusive channel
c. monopolistic channel
d. intensively channel
56. In push marketing, the manufacturer targets __________ rather than __________.
a. consumers, channel members
b. channel members, consumers
c. men, women
d. women, men
57. Channel design is an integral part of all of the following EXCEPT
a. marketing.
b. strategy.
c. positioning.
d. pricing.
58. Consumers are said to pull goods through the channel, whereas trading partners __________ the goods from
the manufacturer on down the food chain.
a. hold
b. throw
c. push
d. select
59. __________ strategies are incentives a manufacturer offers to its distribution partners such as dealers,
wholesalers, retailers, and the like to sell products to the end users.
a. Pull marketing
b. Marketing
c. Promotion marketing
d. Push marketing
60. A perspective by which the benefits a company brings to its partners (beyond cost reductions) are
emphasized is referred to as
a. transaction value analysis.
b. transaction cost analysis.
c. production cost.
d. governance cost.
61. Costs of __________ are the relational issues incurred by trying to coordinate the enterprise and control
one’s partners.
a. governance
b. government
c. goods
d. services
62. What phrase refers to the fact that conflict can be squashed if one player is inherently more powerful than
another?
a. right makes fight
b. fight makes right
c. right makes might
d. might makes right
63. Channel members Grigor and Caster frequently bicker over prices. Grigor wants high prices and Caster
wants lower prices. The best way for channel members to handle conflict is to
a. ignore the conflict.
b. use power to win the conflict.
c. hire someone to do arbitration.
d. talk to each other.
64. Bling, Inc. produces jewelry that it sells to retail jewelry stores. One of Bling’s customers is Ice Jewels, a
chain of jewelry stores with locations in dozens of malls across the United States. Both Bling, Inc. and Ice
Jewels want to make a profit off the merchandise manufactured by Bling, Inc. This scenario is best described as
a. greed.
b. double marginalization.
c. compromising.
d. dual marketing.
65. ABC Groceries sells private label pastries and pastries made by a local bakery that is a channel partner. This
is an example of __________ competition.
a. vertical
b. horizontal
c. breadth
d. unfair
66. ABC Uniforms currently buys uniforms and customizes them for specific teams. The uniform manufacturer
is hard to deal with and has refused to negotiate a reasonable price. ABC Uniforms already has the equipment to
customize the uniforms. Perhaps the company should begin to make the basic uniforms in-house. What term
a. buy vs. sell
b. make vs. buy
c. sell vs. make
d. integrate vs. manufacturer
67. Apple used to be in the business of manufacturing only, but then it opened Apple stores. This is an example
of which of the following?
a. revenue sharing
b. forward integration
c. franchising
d. backward integration
68. Amazon used to simply sell books. Now, it also publishes books. This is an example of which of the
following?
a. revenue sharing
b. forward integration
c. push marketing
d. backward integration
69. When different types of retailers are competing, it’s called __________ competition.
a. vertical
b. horizontal
c. sideways
d. upward
70. Which channel function is most visible to the customer?
a. retailing
b. manufacturing
c. distributing
d. transporting
71. Specialty stores carry __________ but not __________.
b. goods, services
c. depth, breadth
d. variety, customization
72. A lot of research has demonstrated that there is a relationship between the __________ of employees and
that of customers.
a. income
b. age
c. extraversion
d. satisfaction
73. A grocery store that decides to add a florist is expanding by offering an additional
a. segment.
b. service.
c. site.
d. good.
74. Which of the following identifies a major class of franchising?
a. market franchising
b. product franchising
c. in-house franchising
d. retail franchising
75. Sheila owns a small boutique. She wants to move on to other things. She thinks she might be comfortable
giving up complete ownership of the business but would still like to maintain some control over it. Which of
these is she considering?
a. franchising
b. multisite expansion
c. push marketing
d. finding additional segments
76. Which of the following is NOT one of the biggest B2C catalogers?
b. JCPenney
c. Williams-Sonoma
d. The Limited
77. When a retailer is planning for its sales force, it starts with the question, “How many salespeople should we
have?” What is the next question it should ask?
a. Where should we find the salespeople?
b. What kind of salespeople are we looking for?
c. How should salespeople be compensated for their efforts?
d. Should we even have salespeople?
78. BizCo is a B2B firm specializing in selling highly complex computer networking systems and software that
allow clients to work more efficiently. Mark is the VP of Sales at BizCo and is concerned about some of the
complaints he’s received from customers and prospective customers. Which of the following is one of the
complaints Mark is MOST likely to hear?
a. “The salesperson never sought my business.”
b. “The product I purchased was not delivered on time.”
c. “The salesperson is not compensated enough.”
d. “The salesperson isn’t following my company’s buying process.”
79. The determination of the size of a sales force is usually done via some estimation of expected
a. price point.
b. expense.
c. workload.
d. quality of the sales representatives.
80. When the decisions seem overwhelming, we should simplify and remember that the key to marketing is to
think about the
a. sales force.
b. bottom line.
c. customer.
d. mission statement.
81. Describe push and pull strategies.
82. Many consumer packaged goods are distributed intensively. Why?
83. Define forward integration and backward integration and provide examples of each.
84. Identify three advantages of private labels.
85. Describe three possible growth strategies for retailers.
86. Explain what “location, location, location” means.
87. Identify and explain at least three ways that retailers can be categorized.
88. Explain the two major classes of franchising.
89. Discuss the role of catalog sales in the current world of e-commerce.
90. What are the three biggest complaints about salespeople by B2B buyers?
