kotler - chapter12(3)

38) Which of the following should be the first step in designing a marketing channel? A) identifying channel objectives

B) identifying what consumers want from the channel C) analyzing channel alternatives D) evaluating intermediaries

E) exploring international opportunities Answer: B Diff: 2 Page Ref: 349 Skill: Concept Objective: 12-3

39) To increase a channel's service level, it must provide a greater assortment of products, more add-on services, and ________. A) lower prices B) more efficiency C) faster delivery D) better terms E) follow-up Answer: C Diff: 3 Page Ref: 349 Skill: Concept Objective: 12-3

40) Companies should state their channel objectives in terms of targeted levels of ________. A) co-op advertising B) efficiency

C) customer service D) conflict reduction E) profitability Answer: C Diff: 2 Page Ref: 350 AACSB: Communication Skill: Concept Objective: 12-3

41) When a company is identifying its major channel alternatives, it should consider its choices in terms of types, number, and ________ of intermediaries. A) size B) power

C) responsibilities D) capacity

E) none of the above Answer: C Diff: 2 Page Ref: 350 Skill: Concept Objective: 12-3

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42) Which type of product might require a more direct marketing channel to avoid delays and too much handling?

A) lower-priced products B) perishable products C) high-priced products

D) products in their maturity stage E) products in their decline stage Answer: B Diff: 2 Page Ref: 350 Skill: Concept Objective: 12-3

43) When determining the number of channel members to use at each level, three strategies are available: intensive, exclusive, and ________ distribution. A) multichannel B) selective C) international D) direct E) extensive Answer: B Diff: 1 Page Ref: 350 Skill: Concept Objective: 12-3

44) Sometimes a producer chooses only a few dealers in a territory to distribute its products or services. Generally these dealers are given a right to ________ distribution. A) exclusive B) selective C) intensive D) administered E) corporate Answer: A Diff: 1 Page Ref: 351 Skill: Concept Objective: 12-3

45) Which type of distribution is used when the producer wants more than one, but fewer than all, of the intermediaries who are willing to carry its products? A) exclusive B) selective C) intensive D) administered E) corporate Answer: B Diff: 1 Page Ref: 351 Skill: Concept Objective: 12-3

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46) When establishing the responsibilities of channel members, the producer establishes a list price, sets discounts for intermediaries, and defines each channel member's ________. A) sales volume B) territory C) legal rights D) customers E) mission Answer: B Diff: 2 Page Ref: 351 Skill: Concept Objective: 12-3

47) Channel members should be evaluated using all of the following criteria EXCEPT which one? A) economic factors B) control

C) adaptive criteria D) channel leadership E) none of the above Answer: D Diff: 3 Page Ref: 351 Skill: Concept Objective: 12-3

48) When a company compares the likely sales, costs, and profitability of different channel alternatives, it is using ________ criteria to evaluate its channel options. A) selective B) adaptive C) economic D) control E) distribution Answer: C Diff: 2 Page Ref: 351 Skill: Concept Objective: 12-3

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49) It is common for international marketers to ________ their channel strategies for each country. A) extend B) adapt C) restrict

D) seek approval for E) eliminate Answer: B Diff: 1 Page Ref: 352

AACSB: Multicultural and Diversity Skill: Concept Objective: 12-3

50) China and India each contain more than one billion people. However, companies can access only a small percentage of these potential markets due to ________. A) inadequate distribution systems

B) indifference toward Western products C) high regional taxes

D) the religious caste system

E) insurmountable language barriers Answer: A Diff: 3 Page Ref: 352

AACSB: Multicultural and Diversity Skill: Concept Objective: 12-3

51) Marketing channel management calls for selecting, managing, ________, and evaluating channel members over time. A) reducing conflict B) reducing waste C) motivating D) pruning

E) all of the above Answer: C Diff: 2 Page Ref: 352 Skill: Concept Objective: 12-4

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52) A company should think of its intermediaries as both its ________ and ________. A) competitors; partners B) customers; partners C) competitors; marketers D) customers; employees E) competitors; customers Answer: B Diff: 2 Page Ref: 353 Skill: Concept Objective: 12-4

53) Most companies practice strong PRM to forge long-term relationships with channel members. What does PRM stand for?

A) primary relationship management B) potential relationship management C) perennial relationship management D) partner relationship management E) personnel roster maintenance Answer: D Diff: 1 Page Ref: 353 AACSB: Communication Skill: Concept Objective: 12-4

54) Sometimes a seller requires its dealers to abstain from handling competitors' products in an arrangement called ________. A) exclusive distribution B) exclusive dealing C) selective distribution D) exclusive pricing E) disintermediation Answer: B Diff: 2 Page Ref: 356 AACSB: Ethical Reasoning Skill: Concept Objective: 12-4

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