Question 1

The most difficult problem with making the financial approach to choosing a channel structure operational is:

Accepted Answer

A)   The reluctance on the part of firms to use it.
B)   Obtaining accurate estimates of future revenues and costs from alternative channel structures.
C)   The great expense involved in employing this method.
D)   The inadequate capacity of existing computer systems to handle the mass of data involved.
E)   Poor attitudes on the part of managers toward using it.

Question 2

In practice,the channel manager is usually not able to choose an optimal channel structure in the strict sense of the term for all of the following reasons except:

Accepted Answer

A)   He/she is often unable to know what all of the alternative structures are.
B)   Maximizing long-term profits can be achieved with a number of alternative channel structures.
C)   The time involved would often be prohibitive.
D)   Precise methods generally do not exist for calculating the payoffs associated with each of the alternative structures.
E)   The costs involved are very high.

Question 3

According to Aspinwall,short channels are expected for products with a:

Accepted Answer

A)   High replacement rate.
B)   High gross margin.
C)   Low time of consumption.
D)   Low adjustment needs.
E)   Low searching time.

Question 4

Given five possible channel structures,two degrees of intensity,and four different types of intermediaries,the maximum number of possible channel alternatives would be:

Accepted Answer

A)   11.
B)   40.
C)   22.
D)   14.
E)   100.

Question 5

Product variables affecting channel structure include all of the following except:

Accepted Answer

A)   Availability of inputs/supplies.
B)   Perishability.
C)   Degree of standardization.
D)   Newness.
E)   Unit value.

Question 6

The perspective used by producers and manufacturers with respect to channel design is one of a firm looking:

Accepted Answer

A)   Down the channel toward the market.
B)   Up the channel away from the market.
C)   Both down and up the channel.
D)   Toward and away from the market.
E)   At changes in the environment.

Question 7

Using channel design __________ should be uppermost in the channel manager's thinking.

Accepted Answer

A)   to accommodate changes in channel variables
B)   as a means for gaining differential advantage
C)   to reduce channel costs
D)   to increase the intensity of distribution
E)   to increase profits

Question 8

For distant manufacturers it can be generalized that:

Accepted Answer

A)   The use of intermediaries will increase distribution costs.
B)   The use of intermediaries will decrease distribution costs.
C)   A direct channel from distant manufacturer to consumer is most efficient with the lowest distribution costs.
D)   The use of intermediaries increase product costs because of increased trucking/shipping expenses.
E)   Profits are constant regardless of the use of intermediaries because all distribution costs are passed onto the consumer.

Question 9

Which of the following is not an example of a well-stated distribution objective?

Accepted Answer

A)   Our distribution objective is to ensure all do-it-yourselfers have the opportunity to buy our hand tools 75% of the time they shop for home maintenance and repair materials.
B)   Our distribution objective is to ensure our customers have as many opportunities as possible to purchase our carpeting and curtains.
C)   Our distribution objective is to assure that half of all high school varsity swimmers have at least one opportunity per season to purchase our swimwear.
D)   Our distribution objective is to ensure that every consumer with children under the age of 10 has the opportunity to buy our candies.
E)   Our distribution objective is to broaden our penetration in the school and college markets and use exclusive contracts where schools agree to sell only our food product.

Question 10

The distribution costing approach to choosing channel structure:

Accepted Answer

A)   Requires almost no managerial judgment.
B)   Requires specific factors to be identified.
C)   Requires that management make some cost and revenue estimates.
D)   Will, if done well, generally yield an optimal channel choice.
E)   Assumes a three-level distribution structure.

Question 11

There are generally considered to be _______ reasons for making channel design decisions.

Accepted Answer

A)   10
B)   15
C)   18
D)   20
E)   an indefinite number of

Question 12

The Internet has affected the number of levels in a channel by:

Accepted Answer

A)   Adding a fifth level to the current three and four level channels.
B)   Allowing manufacturers to add a direct two level channel to their existing options.
C)   Increasing the level of product saturation available to manufacturers and producers.
D)   Fixing the number of levels available to manufacturers.
E)   Changing the environment such that manufacturers are unable to identify the possible number of levels available.

Question 13

More channel levels and more intermediaries are expected for:

Accepted Answer

A)   Markets requiring many contacts.
B)   Markets requiring personalized contacts.
C)   Markets and producers that have no quantity discrepancies.
D)   Markets and producers with very little spatial separation.
E)   Technically complex products.

Question 14

In general,the more geographically dispersed the market:

Accepted Answer

A)   The shorter the channel structure.
B)   The more direct is distribution.
C)   The fewer the number of intermediaries that will likely have to be used.
D)   The more difficult and expensive is distribution.
E)   The more selective is distribution.

Question 15

The allocation of distribution tasks should include consideration of all of the following except:

Accepted Answer

A)   Number of levels in the channel.
B)   The saturation at the various levels.
C)   The number of channel managers at each level.
D)   Types of intermediaries at each level.
E)   The selective number of intermediaries at various levels.

Question 16

Approaches that attempt to identify all channel structure variables explicitly and then attempt to express the relationships among them in quantitative terms were referred to in the text as:

Accepted Answer

A)   Management science approaches.
B)   Heuristic approaches.
C)   Bayesian approaches.
D)   Distribution costing approaches.
E)   Financial analysis approaches.

Question 17

The longest channels are expected for all of the following except:

Accepted Answer

A)   Consumer markets.
B)   Geographically dispersed markets.
C)   Seasonally consumed products.
D)   Goods bought in small quantities.
E)   Goods purchased online by consumers.

Question 18

Which of the following is not one of the basic phases of the paradigm of the channel design decision?

Accepted Answer

A)   Evaluating the variables affecting channel structure
B)   Choosing the "best" channel structure
C)   Recognizing the need for a channel design decision
D)   Developing specialization and division of labor
E)   Setting and coordinating distribution objectives

Question 19

Which of the following is not a step in the channel design decision process?

Accepted Answer

A)   Forecast changes in the environment.
B)   Develop alternative channel structures.
C)   Choose the "best" channel structure.
D)   Recognize the need for channel design decisions.
E)   Set and coordinate distribution objectives.

Question 20

As a dimension of channel structure,types of intermediaries really pertains to:

Accepted Answer

A)   The classifications of the Census of Wholesale Trade and the Census of Retail Trade.
B)   The basic types of distribution tasks performed.
C)   Traditional industry terminology.
D)   The leadership style of channel managers.
E)   The many different retail outlets at which customers buy products.

Exam 6: Designing Marketing Channels

Given five possible channel structures,two degrees of intensity,and four different types of intermediaries,the maximum number of possible channel alternatives would be:

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The longest channels are expected for all of the following except:

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For distant manufacturers it can be generalized that:

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According to Aspinwall,short channels are expected for products with a:

Correct AnswerverifiedShow Answer

In practice,the channel manager is usually not able to choose an optimal channel structure in the strict sense of the term for all of the following reasons except:

Correct AnswerverifiedShow Answer

Which of the following is not one of the basic phases of the paradigm of the channel design decision?

Correct AnswerverifiedShow Answer

There are generally considered to be _______ reasons for making channel design decisions.

Correct AnswerverifiedShow Answer

Using channel design __________ should be uppermost in the channel manager's thinking.

Correct AnswerverifiedShow Answer

The perspective used by producers and manufacturers with respect to channel design is one of a firm looking:

Correct AnswerverifiedShow Answer

Approaches that attempt to identify all channel structure variables explicitly and then attempt to express the relationships among them in quantitative terms were referred to in the text as:

Correct AnswerverifiedShow Answer

The allocation of distribution tasks should include consideration of all of the following except:

Correct AnswerverifiedShow Answer

As a dimension of channel structure,types of intermediaries really pertains to:

Correct AnswerverifiedShow Answer

More channel levels and more intermediaries are expected for:

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The Internet has affected the number of levels in a channel by:

Correct AnswerverifiedShow Answer

In general,the more geographically dispersed the market:

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The most difficult problem with making the financial approach to choosing a channel structure operational is:

Correct AnswerverifiedShow Answer

The distribution costing approach to choosing channel structure:

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Which of the following is not an example of a well-stated distribution objective?

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Product variables affecting channel structure include all of the following except:

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Which of the following is not a step in the channel design decision process?

Correct AnswerverifiedShow Answer

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