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51. The primary advantage of an intensive distribution strategy is that:

A. there is better retailer support as more retailers are involved in the channel.

B. the company doesn’t rely on a single channel member for success.

C. product availability is maximized.

D. the manufacturer can choose retailers whose clientele match its target market.

 

 

52. Splurge Inc., sells exquisite perfumes, bags, and designer wear. It is associated with high quality, prestige, and excellent customer service. Which of the following forms of distribution would be most appropriate for Splurge Inc.?

A. Cost-effective distribution

B. Intensive distribution

C. Selective distribution

D. Exclusive distribution

 

 

53. The major disadvantage of using an exclusive distribution strategy from the viewpoint of the manufacturer is the:

A. risk involved in relying on a single retailer for success of the product’s distribution.

B. high cost of maintaining customer service in this strategy.

C. lack of market coverage.

D. lack of cooperation between retailer and manufacturer once the relationship has been established.

 

 

54. Which of the following has limited retail coverage and is an appropriate strategy for shopping goods?

A. Intensive distribution

B. Exclusive distribution

C. High-involvement product distribution

D. Selective distribution

 

 

55. Harper Inc. manufactures microwave ovens, washing machines, iron boxes, and coffee makers. Which of the following strategies would be most appropriate for the distribution of their products?

A. Intensive distribution

B. Selective distribution

C. High-involvement product distribution

D. Exclusive distribution

 

 

56. Which of the following statements is true of promotional effort and market information?

A. It is easy to control the behaviors of many independent middlemen.

B. It is easy to find acceptable replacements for those who perform poorly.

C. It is easier to control a company salesforce and company-owned warehouses, retail outlets, or websites.

D. Firms can control activities relating to achieving high levels of promotional effort within a channel by using indirect and horizontally integrated channels.

 

 

57. The theory of transaction cost analysis (TCA) argues that when substantial transaction specific assets are involved:

A. the cost of using independent channel members is lower than the cost of managing a company salesforce.

B. the cost of using independent channel members is higher than the cost of managing a company salesforce.

C. cost is not a consideration.

D. cost should be evaluated for each individual transaction.

 

 

58. Which of the following is the easiest way to enter a foreign market?

A. Sole ownership

B. Franchising

C. Exporting

D. Contractual entry modes

 

 

59. In _____, a firm offers the right to use its intangible assets in exchange for royalties or some other form of payment.

A. licensing

B. exporting

C. contract manufacturing

D. coproduction

 

 

60. Which of the following grants the right to use the company’s name, trademarks, and technology?

A. Exporting

B. Franchising

C. Contract manufacturing

D. Coproduction

 

 

 

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