Question 1

Selective distribution:
A) is likely to reduce high administrative expenses caused by a large proportion of small orders.
B) may be suitable for all categories of products.
C) is becoming more popular.
D) is a good idea if some of the available intermediaries are not financially solid.
E) All of these alternatives are correct.

Accepted Answer

Selective distribution may be suitable for all categories of products. A selective policy doesn't use intermediaries that place orders which are too small. It also doesn't use intermediaries that have poor credit ratings. Selective distribution is becoming more popular.

Question 2

______________ means selling a product only through those intermediaries who will give the product special attention.
A) Multichannel distribution
B) Selective distribution
C) Administered distribution
D) Exclusive distribution
E) Intensive distribution

Accepted Answer

Selective distribution is selling through only those intermediaries who will give the product special attention.

Question 3

"Exclusive distribution" means selling through:
A) the most prestigious retail outlets.
B) only one wholesaler or retailer in a particular geographic area.
C) only responsible and suitable retailers or wholesalers.
D) retailers that handle specialty products.
E) only those wholesalers or retailers who will give the product special attention.

Accepted Answer

Exclusive distribution is selling through only one intermediary in a particular geographic area.

Question 4

Which of the following is true of selective distribution?
A) It is commonly needed for convenience products and business supplies used by all offices.
B) It is selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.
C) It is selling through only one intermediary in a particular geographic area.
D) It is making a product available widely enough to satisfy target customers' needs but not exceed them.
E) It is selling through only those intermediaries who will give the product special attention.

Accepted Answer

Selective distribution is selling through only those intermediaries who will give the product special attention.

Question 5

Which of the following statements about ideal market exposure is true?
A) As a firm goes from exclusive to intensive distribution, it loses progressively more control over price and service offered by retailers.
B) A producer usually should seek maximum market exposure.
C) Intensive distribution means trying to sell through all retail stores.
D) It is necessary to get almost 100 percent market exposure to justify national promotion.
E) All of these statements about ideal market exposure are true.

Accepted Answer

As a firm moves from exclusive to intensive distribution, it loses more and more control over price and the service offered in a channel. In essence, it is trading control (in exclusive) for exposure (in intensive).

Question 6

Legal concerns about channel of distribution arrangements are most likely to arise when:
A) a traditional channel system is involved.
B) there are horizontal arrangements between firms at the same level of the channel.
C) the firm is using intensive distribution.
D) a firm uses multichannel distribution to reach its target markets.
E) a corporate channel system is involved.

Accepted Answer

Horizontal arrangements among competing retailers, wholesalers, or producers to limit sales by customer or territory have consistently been ruled illegal by the U.S. Supreme Court.

Question 7

When McDonald's corporate headquarters offers a local McDonald's franchise to a franchisee on Bourbon Street in New Orleans,this is an example of ___________ distribution.
A) intensive
B) operational
C) selective
D) exclusive
E) administered

Accepted Answer

Exclusive distribution is used when the firm selects only one wholesaler or retailer in each geographic area. Franchisors like McDonald's offer franchisees exclusive territories.

Question 8

If a producer has a technically superior and expensive product-which has achieved brand preference-and wants retailers to provide aggressive promotion and maximum customer service,this producer should seek:
A) Multichannel distribution
B) Exclusive distribution
C) Administered distribution
D) Intensive distribution
E) Selective distribution

Accepted Answer

Producers may use exclusive distribution to help control prices and the service offered in a channel.

Question 9

Selling through only one wholesaler or retailer in a particular geographic area is called:
A) Ideal market distribution
B) Intensive distribution
C) Selective distribution
D) Exclusive distribution
E) Equivalent distribution

Accepted Answer

Exclusive distribution is selling through only one intermediary in a particular geographic area.

Question 10

If a producer's marketing manager wants intermediaries to take over all responsibility for promoting his product he probably should use
A) exclusive distribution.
B) selective distribution.
C) intensive distribution.
D) a vertically integrated distribution system.
E) any of these, since every channel member must support a product with promotion.

Accepted Answer

In exclusive distribution, a firm selects only one wholesaler or retailer in each geographic area, giving them all responsibility for promoting their product.

Question 11

________ means selling a product through only one wholesaler or retailer in a particular geographic area.
A) Exclusive distribution
B) Direct distribution
C) Intensive distribution
D) Multichannel distribution
E) Selective distribution

Accepted Answer

Exclusive distribution is selling through only one intermediary in a particular geographic area.

Question 12

Intermediaries are needed MOST when the desired degree of market exposure is:
A) selective.
B) intensive.
C) exclusive.
D) administered.
E) none of these is a good answer.

Accepted Answer

Intensive distribution is selling a product through all responsible and suitable wholesalers or retailers (intermediaries) who will stock or sell the product.

Question 13

Intermediaries are needed LEAST when the desired degree of market exposure is:
A) intensive.
B) ideal.
C) selective.
D) exclusive.
E) none of these choices is correct.

Accepted Answer

When a firm selects only one wholesaler or retailer in each geographic area, exclusive distribution is used.

Question 14

Quiet Drive Mufflers are sold only through Car Parts Now retailers.This retailer has only one store in any given geographic area to minimize competition between stores.Quiet Drive Mufflers uses _____ distribution.
A) intensive
B) ideal
C) selective
D) specialized
E) exclusive

Accepted Answer

Exclusive distribution is used when the firm selects only one wholesaler or retailer in each geographic area.

Question 15

Exclusive distribution
A) should generally be used only if it is not possible to generate intermediary interest in intensive distribution.
B) is legal as long as it does not involve vertical channel arrangements.
C) arrangements between a producer and intermediary are illegal for most types of products, and thus they are not very common in the U.S.
D) usually involves intermediaries who are willing to take over all responsibility for promoting the producer's product.
E) None of these alternatives are correct.

Accepted Answer

In exclusive distribution, a firm selects only one wholesaler or retailer in each geographic area, giving them all responsibility for promoting their product.

Question 16

"Selective distribution" means selling through:
A) retailers but not wholesalers.
B) multichannel distribution.
C) all responsible and suitable wholesalers.
D) only those wholesalers and retailers who give the product special attention.
E) only one wholesaler or retailer in each geographic area.

Accepted Answer

Selective distribution is selling through only those intermediaries who will give the product special attention.

Question 17

Horizontal arrangements among competing retailers,wholesalers,or producers to limit sales by customer or territory have consistently been
A) shown to increase competition.
B) a regular practice in the U.S.
C) encouraged in the U.S. but not in many international markets.
D) a successful strategy for entering international markets.
E) ruled illegal by the U.S. Supreme Court.

Accepted Answer

Horizontal arrangements among competing retailers, wholesalers, or producers to limit sales by customer or territory have consistently been ruled illegal by the U.S. Supreme Court.

Question 18

The 80/20 rule-that 80 percent of a company's sales often come from just 20 percent of its customers-is a good reason for marketers to use ________.
A) selective distribution
B) intensive distribution
C) exclusive distribution
D) international distribution
E) multichannel distribution

Accepted Answer

Many firms recognize that they don't need 100 percent coverage of a market (intensive distribution), as the majority of sales come from relatively few customers, and the others buy too little compared to the cost of working with them. This is called the 80/20 rule-80 percent of a company's sales often come from only 20 percent of its customers until it becomes more selective in choosing customers. This "rule" inclines many marketers to use selective distribution.

Question 19

Which degree of market exposure would probably be most suitable for a heterogeneous shopping product which has achieved brand preference and sells for about $300?
A) Concentrated distribution
B) Selective distribution
C) Administered distribution
D) Intensive distribution
E) Exclusive distribution

Accepted Answer

Selective distribution may be suitable for all categories of products. Only the best intermediaries are used and the company is able to sell the product where it sells best.

Question 20

A selective distribution policy might be used to avoid selling to wholesalers or retailers that:
A) Place orders that are too small.
B) Make too many returns.
C) Request too much service.
D) Have poor credit.
E) All of these alternatives are correct.

Accepted Answer

A selective policy might be used to avoid selling to wholesalers or retailers that: place orders that are too small; make too many returns; request too much service; or have a poor credit rating.

Quiz 12: Place and Development of Channel Systems

Selective distribution:

______________ means selling a product only through those intermediaries who will give the product special attention.

"Exclusive distribution" means selling through:

Which of the following is true of selective distribution?

Which of the following statements about ideal market exposure is true?

Legal concerns about channel of distribution arrangements are most likely to arise when:

When McDonald's corporate headquarters offers a local McDonald's franchise to a franchisee on Bourbon Street in New Orleans,this is an example of ___________ distribution.

If a producer has a technically superior and expensive product-which has achieved brand preference-and wants retailers to provide aggressive promotion and maximum customer service,this producer should seek:

Selling through only one wholesaler or retailer in a particular geographic area is called:

If a producer's marketing manager wants intermediaries to take over all responsibility for promoting his product he probably should use

________ means selling a product through only one wholesaler or retailer in a particular geographic area.

Intermediaries are needed MOST when the desired degree of market exposure is:

Intermediaries are needed LEAST when the desired degree of market exposure is:

Quiet Drive Mufflers are sold only through Car Parts Now retailers.This retailer has only one store in any given geographic area to minimize competition between stores.Quiet Drive Mufflers uses _____ distribution.

Exclusive distribution

"Selective distribution" means selling through:

Horizontal arrangements among competing retailers,wholesalers,or producers to limit sales by customer or territory have consistently been

The 80/20 rule-that 80 percent of a company's sales often come from just 20 percent of its customers-is a good reason for marketers to use ________.

Which degree of market exposure would probably be most suitable for a heterogeneous shopping product which has achieved brand preference and sells for about $300?

A selective distribution policy might be used to avoid selling to wholesalers or retailers that: