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Worksheets[B2B MUL] CHAP 11
Total questions: 44
Worksheet time: 24mins
1. The channel strategy that does not utilize any manufacturers' representatives, industrial distributors, or other kinds of middlemen is referred to as:
indirect distribution.
selective distribution.
direct distribution.
exclusive distribution.
restrictive distribution.
2. The channel strategy that involves the utilization of one or more middlemen is referred to as:
indirect distribution.
direct distribution.
selective distribution.
exclusive distribution.
restrictive distribution.
3. The most appropriate channel of distribution for an industrial product is:
direct
indirect
one that relies on the firm's sales force
a combination of direct and indirect
dependent upon a host of product, company, market, and competitive conditions
4. The need to employ more than one type of industrial channel of distribution arises as a result of:
different target markets sought by the firm.
a geographically concentrated market.
different marketing tasks associated with different products produced by the firm.
5. The largest proportion of sales handled by industrial channel members is accounted for by:
brokers and jobbers.
brokers and commission merchants.
manufacturers' representatives and industrial distributors.
jobbers and industrial distributors.
brokers and distributors.
6. Service provided by industrial distributors includes:
repair.
credit.
maintenance.
all of the above
(b) and (c) only
The industrial distributor:
takes title to the product sold.
occasionally does some assembly and manufacturing work.
provides delivery.
all of the above
(a) and (b) only
9. Generally, manufacturers' reps:
take title to the products handled.
are restricted to a limited geographical area.
hold inventory.
provide customers with prompt delivery.
all of the above
10. Manufacturers' reps:
possess expert product knowledge.
sell non-competing but complementary products.
take title to the goods handled.
11. Concerning the compensation of manufacturers' representatives, the business marketer compensates them on the following basis:
percentage commission.
a salary.
salary plus commission.
varies by product category.
varies by SIC industry.
12. A business marketer who places the highest priority on achieving control in the channel of distribution should use:
a direct channel.
a channel which includes numerous industrial distributors.
a channel which includes numerous manufacturers' representatives.
a channel which includes numerous commission merchants.
an indirect channel.
13. The first step in the channel design process is to:
determine channel design constraints.
consider the availability of good intermediaries.
outline key channel alternatives.
determine the tasks to be performed by the channel.
define customer segments
14. Which of the following statements concerning the selection of industrial channel structures is(are) true?
Frequently, the manager has little flexibility in the selection because of trade, competitive, company, and environmental factors.
The channel should be viewed as a set of channel institutions rather than as a sequence of activities to be performed.
Competitors often have the better intermediaries "locked up."
15. In specifying channel alternatives, which of the following issues is(are) involved?
determining the levels to be included in the channel
determining the number of channel intermediaries at each level of the channel
determining the types of intermediaries to employ
all of the above
(a) and (b) only
16. Industrial products that are complex, unique and made to order are more frequently sold through:
direct channels.
indirect channels.
manufacturers' representatives.
industrial distributors.
merchant wholesalers.
17. Factors that contribute to the use of more than one distribution channel for the same product include:
various market segments are served.
the needs and buying processes employed by prospective customers varies.
conflict between competing channels is relatively rare.
18. Which of the following channels would give the business marketer the greatest amount of channel control?
a channel consisting of merchant wholesalers
a channel composed of industrial distributors
a channel consisting of both manufacturers' reps and distributors
a channel composed of jobbers
a channel consisting of manufacturers' reps
19. The compensation provided to industrial channel members should reflect:
the length of service of the channel member.
the nature of the marketing tasks performed by the channel member.
the loyalty of the channel member.
the amount of market potential available in the territory.
all of the above
20. Manufacturers who wish to strengthen the dependence that channel members have on them could:
increase commissions.
encourage channel members to carry the firm's full product line.
increase promotion to enhance the profitability of channel members.
all of the above
(b) and (c) only
21. Robert Morgan and Shelby Hunt suggest that relationship commitment and trust develop when:
firms align themselves with partners that have distinctly different corporate values.
firms share valuable information on expectations, markets, and performance.
firms offer benefits and resources that are superior to what other partners could offer.
22. A direct sales force is best used for:
highly standardized solutions.
small customers.
simple transactions.
complex products.
23. The industrial distributor's primary responsibilities include:
contact.
repair.
product availability.
all of the above.
(a) and (c) only.
24. _____ cater to a broad array of industrial goods.
Specialists
General-line distributors
A combination house.
none of the above.
25. There is a trend toward _____ as a result of increasing technical complexity of products.
general-line distributors
specialists
combination houses
none of the above
26. A recent poll asked distributors which business strategies would have the largest impact on them in the future. The top two factors were:
collaboration with supply chain partners.
new information technologies.
the increase in general-line distributors
27. Manufacturer reps are most likely used:
by large firms.
when there is unlimited market potential.
to eliminate significant overhead costs.
all of the above.
(a) and (c) only.
28. The manufacturer-rep channel is generally used when the:
gross margin is large.
product is not technically complex.
product is not standard, but is closer to made-to-order.
all of the above.
29. The primary reason for using more than one type of intermediary for the same product is:
the gross margin is not
large.
the product tends toward technical complexity.
different market segments require different channel structures.
the product is not standard, but is closer to made-to-order.
30. When evaluating alternative channels, the critical element is to compare both systems on the basis of:
customer service.
performance.
structure.
costs.
all of the above.
31. When evaluating channel alternatives, if the existing channel is about as good as it can be and if customer satisfaction is low,:
an alternative channel should be utilized.
the fault is not with the channel design, it is with poor management.
the existing system can be changed without sacrificing management goals.
none of the above.
32. When evaluating channel alternatives, if the feasible system lies between the ideal and existing system,
the existing system can be changed without sacrificing management goals.
relaxing management constraints might produce even greater benefits.
the fault is not with the channel design, it is with poor management.
33. Techniques for motivating individual channel members include all of the following except:
dealer advisory councils.
competitive compensation.
building trust.
better planning by the business marketer.
product training for channel members.
34. Which of the following are tasks that are performed by channels of distribution?
Arranging financing.
Storage.
Transportation.
All of the above.
Only b and c.
35. Use of a direct sales force is best for:
highly customized solutions.
smaller customers.
complex products.
36. E-channels can be used by business marketing firms for:
information platforms.
transaction platforms.
customer relationship
management platforms.
All of the above.
Only b and c.
37. What percentage of U.S. Gross Domestic Product is sold through indirect distribution channels?
10%
25%
40%
60%
80%
38. _____ are generally small, independent businesses serving narrow geographic markets.
Distributors
Channel partners
Manufacturers’ representatives
Broker houses
Field offices
39. Responsibilities for distributors include:
making products available.
repair.
providing service and technical advice.
All of the above.
Only a and b.
40. In the classification of distributors, _____ focus on one line or on a few related lines.
general-line distributors
specialists
combination houses
brokers
41. Manufacturers’ representatives are used:
by smaller firms that cannot afford their own sales force.
when a manufacturer’s market potential is limited.
to help reduce overhead costs.
All of the above.
Only a and c.
42. _____ is the dynamic process of developing new channels where none existed and modifying existing channels.
Channel structure
Channel design
Channel choice
Channel partnering
Supply chain management
43. Channel length decreases:
when the purchase becomes more significant.
when market or industry concentration increases.
when customer potential increases.
All of the above.
Only a and b.
44. When motivating channel members, the primary motivating device tends to be:
dealer advisory councils.
trust
compensation.
strong relationships.
training.
45. Selecting the best channel of distribution to accomplish objectives can be difficult because:
the alternatives are so numerous.
marketing goals differ.
separate channels must often be used concurrently.
All of the above.
Only a and b.
