MARK 201 – Extra Multiple Choice Questions (Chapter 10)

1/ Which of the following channel designs are chosen for specialty products or services like
high-end sports vehicles, exclusive women's jewelry, and yachts because only one retail outlet
in a specified geographical area carries these products?

a/ Intensive distribution
b/ Selective distribution
c/ Exclusive distribution (XX)
d/ Dual distribution

Exclusive distribution is chosen for such high-end products. Exclusive distribution is typically
chosen for specialty products or services such as specialty automobiles, some women's
fragrances, men's and women's apparel and accessories, and yachts.
References
Multiple Choice. Difficulty: Medium
TB 10-69 Which of the following channel designs are c...Learning Objective: 10-03 Describe
factors that marketing executives consider when selecting and managing a marketing channel.

2/ Morton Watches, an exclusive brand of watches, are sold through independent retailers.
Now Morton has started selling its watches directly to consumers through its own stores. It
offers special discounts and promotions in its exclusive stores. The retailers are filing a lawsuit
against Morton because their sales are getting hurt. This practice in which Morton has
bypassed the retailers to sell directly to consumers is called:
a/ a vertical conflict
b/ disintegration
c/ disintermediation (XX)
d/ a horizontal conflict

Another type of vertical conflict arises when a channel member bypasses another member and
sells directly to consumers, a practice called disintermediation.
References
Multiple ChoiceDifficulty: Hard
TB 10-80 Morton Watches, an exclusive brand of watche...Learning Objective: 10-03 Describe
factors that marketing executives consider when selecting and managing a marketing channel.

3/ A supermarket chain buys fruits and vegetables from different sources, transfers them to its
stores, and arranges them for its customers. Which of the following functions is the store
performing as an intermediary?
a/ Transactional function

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b/ Informational function
c/ Logistical function (XX)
d/ Facilitating function

The store is performing the logistical function. Gathering, sorting, and dispersing products are
some of the logistical functions of the intermediary.
References
Multiple ChoiceDifficulty: Hard
TB 10-35 A supermarket chain buys fruits and vegetabl...Learning Objective: 10-01 Explain what
is meant by a marketing channel and the value created by intermediaries.

4./ Omni-channel retailing is:

a/ another term for multichannel marketing.

Omni-channel retailing creates a seamless experience among all available shopping channels.
online, catalogue, or in-store buyer using website design elements.
References
Multiple ChoiceDifficulty: Easy
TB 10-52 Omni-channel retailing is:Learning Objective: 10-02 Distinguish among traditional
marketing channels, electronic marketing channels and different types of vertical marketing
systems.

5./ Mocha Jive coffee shops operate their own cafés and have a subsidiary company, Perfect
Cookies, that produces a wide variety of cookies and snacks for their stores. This is an example
of:
a./ dual distribution
b./ selective distribution
c./ backward integration (XX)
d./ horizontal marketing system

This is an example of backward integration at Mocha Jive. A retailer might own a manufacturing
operation, a practice called backward integration.
References
Multiple ChoiceDifficulty: Medium
TB 10-58 Mocha Jive coffee shops operate their own ca...Learning Objective: 10-02 Distinguish
among traditional marketing channels, electronic marketing channels and different types of
vertical marketing systems.

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6./ Cocorich chocolates aim to place their chocolates products "within an arm's reach " of their
customers. They ensure that their products are placed in as many stores as possible. This is an
example of:

a/ diversification
b/ exclusive distribution
c/ intensive distribution (XX)
d/ selective distribution

Intensive distribution means that a firm tries to place its products and services in as many
outlets as possible.

7./ Tez, an energy drink brand, has a disagreement with one of the major wholesalers of its
products over the price of its drinks. What kind of conflict is reflected in this scenario?

a/ Disintermediation
b/ Vertical conflict (XX)
c/ Horizontal conflict
d/ Selective conflict

Vertical conflict occurs between different levels in a marketing channel; for example, between a
manufacturer and a wholesaler or between a manufacturer and a retailer.
References
Multiple ChoiceDifficulty: Hard
TB 10-86 Tez, an energy drink brand, has a disagreeme ...Learning Objective: 10-03 Describe
factors that marketing executives consider when selecting and managing a marketing channel.

8./ Which is the BEST example of reverse logistics?

a./ H&M accepts used clothing in its stores. H&M then recycles the clothing to make new
textiles. (XX)
b./ Co-op purchases products from local farmers to sell in its grocery stores.
c./ Apple ships its products directly to customers from its online store.
d./ Zara hosts a promotional event to launch the opening of a new store where guests are given
a tote bag.

Reverse logistics is a process of reclaiming recyclable and reusable materials, returns, and
reworks from the point of consumption or use for repair, remanufacturing, redistribution, or
disposal.

References
Multiple ChoiceDifficulty: Medium

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TB 10-97 Which is the BEST example ...Learning Objective: 10-04 Discuss supply chain and
logistics management and how they relate to marketing strategy.

9./ Which product category is MOST likely to use exclusive distribution?

a./ Specialty products. (XX)

Exclusive distribution is chosen for such high-end products. Exclusive distribution is typically
chosen for specialty products or services such as specialty automobiles, some women's
fragrances, men's and women's apparel and accessories, and yachts.

References
Multiple ChoiceDifficulty: Medium
TB 10-100 Which product category is MOST likely t...Learning Objective: 10-03 Describe factors
that marketing executives consider when selecting and managing a marketing channel.

10./ When a company uses intermediaries like wholesalers and retailers to distribute its
products, it is following which distribution strategy?

a./ Direct
b./ Indirect (XX)
c./ Online
d./ Indeterminant

In indirect marketing channels, intermediaries are inserted between the producer and
consumers and perform numerous channel functions.

References
Multiple ChoiceDifficulty: Easy
TB 10-94 When a company uses intermediaries like...Learning Objective: 10-02 Distinguish
among traditional marketing channels, electronic marketing channels and different types of
vertical marketing systems.