Business Marketing Management B2B 10th Edition By Michael D. Hutt – Test Bank

Chapter 11—Managing Business Marketing Channels

MULTIPLE CHOICE

1. The channel strategy that does not utilize any manufacturers’ representatives, industrial distributors, or other kinds of middlemen is referred to as:
a. indirect distribution.
b. selective distribution.
c. direct distribution.
d. exclusive distribution.
e. restrictive distribution.

ANS: C PTS: 1
NAT: AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing strategy & innovation

2. The channel strategy that involves the utilization of one or more middlemen is referred to as:
a. indirect distribution.
b. direct distribution.
c. selective distribution.
d. exclusive distribution.
e. restrictive distribution.

ANS: A PTS: 1
NAT: AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing strategy & innovation

3. The most appropriate channel of distribution for an industrial product is:
a. direct.
b. indirect.
c. one that relies on the firm’s sales force.
d. a combination of direct and indirect.
e. dependent upon a host of product, company, market, and competitive conditions.

ANS: E PTS: 1
NAT: AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing strategy & innovation

4. The need to employ more than one type of industrial channel of distribution arises as a result of:
a. different target markets sought by the firm.
b. a geographically concentrated market.
c. different marketing tasks associated with different products produced by the firm.
d. both (a) and (c)
e. all of the above

ANS: D PTS: 1
NAT: AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing strategy & innovation

5. The largest proportion of sales handled by industrial channel members is accounted for by:
a. brokers and jobbers.
b. brokers and commission merchants.
c. manufacturers’ representatives and industrial distributors.
d. jobbers and industrial distributors.
e. brokers and distributors.

ANS: C PTS: 1
NAT: AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing strategy & innovation

6. Service provided by industrial distributors includes:
a. repair.
b. credit.
c. maintenance.
d. all of the above
e. (b) and (c) only

ANS: D PTS: 1
NAT: AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing strategy & innovation

7. The industrial distributor:
a. takes title to the product sold.
b. occasionally does some assembly and manufacturing work.
c. provides delivery.
d. all of the above
e. (a) and (b) only

ANS: D PTS: 1
NAT: AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing strategy & innovation

8. A distributor classification, the combination house:
a. operates in two sectors of the industrial market.
b. operates a chain of distributorships.
c. operates in both the industrial and consumer markets.
d. does not take title to the goods handled.
e. is paid on a commission basis.

ANS: C PTS: 1
NAT: AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing strategy & innovation

9. Generally, manufacturers’ reps:
a. take title to the products handled.
b. are restricted to a limited geographical area.
c. hold inventory.
d. provide customers with prompt delivery.
e. all of the above

ANS: B PTS: 1
NAT: AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing strategy & innovation

10. Manufacturers’ reps:
a. possess expert product knowledge.
b. sell non-competing but complementary products.
c. take title to the goods handled.
d. all of the above
e. (a) and (b) only

ANS: E PTS: 1
NAT: AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing strategy & innovation