Marketing Final Exam

Markets require fewer intermediaries d new firms in

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Unformatted text preview: of the following statements concerning how market factors affect channel decisions is true? a. Industrial customers tend to buy in larger quantities and require more customer service. b. Geographically concentrated target markets should be served with an indirect sales force. c. Widely dispersed markets require fewer intermediaries. d. New firms in extremely competitive markets will be more successful if they use indirect channels. e. A very large market requires fewer intermediaries. ANS: A Industrial customers’ buying habits are very different from those of consumers, and they tend to buy in larger quantities and require more customer service. PTS: 1 REF: 209 Thinking KEY: CB&E Model Distribution OBJ: 13-4 TOP: AACSB Reflective MSC: BLOOMS Evaluation 51. Canesta Company has developed a virtual keyboard out of light to be used with cell phones and PDAs. The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user’s digital device. When introduced to the market, the device will sell for less than $50. If, in choosing its channel, Canesta is most concerned about the life cycle of the device, then its choice of channels will largely be influenced by: a. factors of production b. customer characteristics c. ownership factors d. product factors e. market factors ANS: D Stage of the product life cycle is a product factor. PTS: 1 REF: 209 Thinking KEY: CB&E Model Distribution OBJ: 13-4 TOP: AACSB Reflective MSC: BLOOMS Application 52. Canesta Company has developed a virtual keyboard out of light to be used with cell phones and PDAs. The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user’s digital device. When introduced to the market, the device will sell for less than $50. If, in choosing its channel, Canesta is most concerned about its lack of financial, managerial, and marketing resources to support the product’s introduction, then its choice of channels will largely be influenced by: a. factors of ownership b. market factors c. producer factors d. product factors e. internal environmental characteristics ANS: C Financial, managerial, and marketing issues are producer factors. PTS: 1 REF: 209 Thinking KEY: CB&E Model Distribution OBJ: 13-4 TOP: AACSB Reflective MSC: BLOOMS Application 53. _____ is distribution aimed at maximum market coverage. It is used for many convenience goods and supplies that need to be available in every outlet where the potential customer might want to buy them. a. Selective distribution b. Channel franchising c. Intensive distribution d. Horizontal channeling e. Exclusive distribution ANS: C The objective of intensive distribution is to achieve mass-market selling. PTS: 1 REF: 210 Thinking KEY: CB&E Model Distribution OBJ: 13-4 TOP: AACSB Reflective MSC: BLOOMS Knowledge 54. Chewing gum and soft drinks are sold in grocery stores, service stations, convenience stores, d...
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This document was uploaded on 09/29/2013.

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