EXAM-3-Spring 2003

There are 53 questions. You will get credit for a maximum of 50 correct responses. Total points = 200 ( 50 x4)

Identify the letter of the choice that best completes the statement or answers the question. If you feel that a particular question is confusing, please give an explanation why you think so and indicate the "your" correct answer on the reverse of the first page of the exam. No credit will be given if a written explanation is not provided.

Write the test no: given on the top right hand corner of this sheet on your Scantron. Without a test no your Scantron will be returned ungraded.

Multiple Choice

Identify the letter of the choice that best completes the statement or answers the question.

1. A major advantage of a brand extension is that a

a.	poor product will not adversely affect sales of an existing product.
b.	new market segment can be attracted.
c.	It is easier to come up with new products
d.	new product can move from nonrecognition to recognition in the brand decision process.

2. The use of a package as a point-of-sale display to increase sales in a self-service environment is an example of what packaging function?

a.	New-product planning	c.	Containment and protection
b.	Usage	d.	Communication

3. No independent intermediaries are used in which type of distribution channel?

a.	Indirect	c.	Vertical
b.	Direct	d.	Horizontal

4. Convenience products should utilize ____ distribution.

a.	intensive	c.	exclusive
b.	dual	d.	selective

5. There is an old saying, "You can eliminate the middleman, but you cannot eliminate the ________."

a.	profit lost	c.	time lost
b.	lost customers	d.	middleman's functions

6. Chewing gum is stocked in many outlets in the same market or community; in fact, it is placed in as many outlets as possible. This is an example of ________ distribution.

a.	selective	c.	exclusive
b.	multichannel	d.	intensive

7. Which of these is NOT a channel function?

a.	Marketing research	d.	Customer services
b.	Buying	e.	All are channel functions
c.	New product testing

8. A product's placement in the convenience, shopping, and specialty product classification system is based primarily on a

a.	consumer's degree of innovation.	c.	consumer's degree of search.
b.	product's degree of tangibility.	d.	product's degree of fashion.

9. Which consumer product is generally purchased with the LEAST degree of information search?

a.	Convenience products	c.	Tangible products
b.	Shopping products	d.	Generic products

10. What type of product mix is required by a firm that seeks to be the single source for all of its customers' needs?

a.	Integrated	c.	Deep and wide
b.	Consistent	d.	Deep and narrow

11. An advantage of a consistent product mix to a marketer is the

a.	encouragement of one-stop shopping.
b.	ability to meet all of a customer's needs within a product segment.
c.	ability to satisfy the needs of a diverse group of customers.
d.	development and maintenance of a strong image.

12. Availability at competing retailers, high brand awareness, and high levels of advertising are strategies typically associated with

a.	generic brands.	c.	dealer brands.
b.	manufacturer brands.	d.	private brands.

13. In comparison with dealer brands, manufacturer brands

a.	attract loyalty to the manufacturer.
b.	provide retailers with higher profit margins.
c.	are available in fewer outlets.
d.	account for a small percentage of supermarket sales.

14. In comparison with manufacturer brands, dealer brands allow retailers to

a.	utilize vendor promotional materials.
b.	utilize cooperative advertising programs.
c.	decrease consumer perceived risk.
d.	establish store loyalty.

15. A wholesaler or retailer has the greatest degree of channel control with which type of branding philosophy?

a.	Manufacturer	c.	Private
b.	Generic	d.	Multiple

16. Which pair of branding strategies is most similar?

a.	Dealer branding and manufacturer branding
b.	The battle of the brands and generic branding
c.	Family branding and brand extension
d.	Mixed branding and individual branding

17. Which branding strategy works best with a differentiated marketing strategy?

a.	Generic branding	c.	Family branding
b.	Private branding	d.	Individual branding

18. The assorting element of the sorting process enables

a.	small shipments to be transported economically.
b.	products to be graded by color, size, and quality.
c.	independent distributors to work together to achieve a common goal.
d.	consumers to have a broad selection of products.

19. An important characteristic of a direct channel of distribution is

a.	a contractual channel arrangement.
b.	low capital requirements.
c.	a high level of channel control.
d.	control over the channel by the dominant channel member.

20. Typical positioning strategy would be to

a.	meet the competition's strong points head on.
b.	stress the consumer benefits that differentiate the brand from competitor's products.
c.	provide products that complement each other in the consumer's mind.
d.	offer products at various price ranges to allow flexibility in various homogeneous markets.
e.	find those products that your competitors have not yet introduced.

21. Channel length refers to the

a.	acquisition of companies at another channel stage.
b.	diversity of channel members at any level.
c.	levels of independent members along a distribution channel.
d.	extent of horizontal integration.

22. Channel width refers to the

a.	diversity of channel members at any stage of distribution.
b.	levels of independent members along a channel.
c.	diversity of products carried by any channel member.
d.	number of independent channel members at any stage of distribution.

23. Which of these are major characteristics of exclusive distribution?

a.	The highest degree of channel control, but limited sales potential
b.	Moderate market coverage and difficulty in carving out a distinctive market niche
c.	Widespread market coverage and limited channel control
d.	Moderate number of distribution intermediaries and good sales and profits

24. Which of these are major characteristics of intensive distribution?

a.	The highest degree of channel control, but limited sales potential
b.	Moderate market coverage and difficulty in carving out a distinctive market niche
c.	Widespread market coverage and limited channel control
d.	Moderate number of distribution intermediaries and good sales and profits

25. Functional discounts reflect deductions from list price for

a.	implementing test markets.
b.	immediate or early payment.
c.	large-volume purchases.
d.	performing storage, in-store promotions, and other tasks.

26. Which of these illustrates channel conflict?

a.	A manufacturer granting retailers a cooperative advertising allowance
b.	A manufacturer training a retailer's salespeople in proper sales techniques
c.	A retailer making late payments to a vendor
d.	A retailer adhering to a manufacturer's suggested list price

27. With which distribution approach would a company first seek to generate final consumer demand and then secure dealer support?

a.	Horizontal integration	c.	Pulling strategy
b.	Vertical integration	d.	Pushing strategy

28. The transportation method with the lowest shipping cost may not be selected due to its high inventory-carrying costs. This illustrates

a.	economic order quantity calculations.	c.	the total-cost approach.
b.	distribution standards.	d.	customer service.

29. The tire manufacturer wishes to minimize retail price competition among retailers. It should utilize ____ distribution.

a.	dual channels of	c.	selective
b.	intensive	d.	exclusive

30. For a manufacturer, the training of a wholesaler's sales personnel, providing of promotional materials, and offering a special sales contest for the wholesaler's sales personnel are important elements in which type of distribution strategy?

a.	Pushing	c.	Administered channel
b.	Pulling	d.	Dual channel

31. Product planning involves the following functions:

a.	Development of products	d.	Management of products
b.	Branding	e.	All the choices are correct
c.	Packaging

32. A well structured product plan of a firm would enable the company to, except:

a.	Develop appropriate marketing programs	d.	delete undesirable products
b.	coordinate a mix of products	e.	develop top management compensation plans
c.	reapprise or evaluate faltering products

33. A generic product concept centers on what the product means to the customer. The following are examples of generic product concept, except:

a.	Cosmetics sell hope	c.	Pharmaceuticals represent cures
b.	Computers represent solutions	d.	Generic drugs are better than brand-name drugs

34. The following are attributes that distinguish services from goods:

a.	Intangibility	d.	Variability in quality
b.	Perishability	e.	All of the choices are correct
c.	Inseparability

35. Consumer staples, impulse goods, emergency goods are kinds of:

a.	convenience goods	c.	leisure goods
b.	shopping goods	d.	specialty goods

36. Which of the following statements is not true:

a.	convenience goods are generally distributed widely and intensively	d.	exclusive distribution is generally used for specialty goods
b.	Mass promotions are normally used for convenience goods	e.	Specialty goods are normally available for lower prices than convenience and shopping goods
c.	shopping goods generally use selective distribution strategy

37. Tim buys a lawn mower for use in a business owned by him. This lawn mower may be best classified as a:

a.	consumer product	c.	household product
b.	industrial product	d.	specialty product

38. A deep product mix of a company has the following advantages or disadvantages, except:

a.	satisfy several market segments	d.	may cost higher in inventory and storage costs
b.	covers a range of prices	e.	All of the choices are either advantages or disadvantages of a deep product mix.
c.	maximizes retail shelf space

39. A company having a consistent product mix has the following advantages, except:

a.	ease in managing distribution	d.	none of the choices are correct
b.	strong image for the company	e.	all the choices are correct
c.	less vulnerable to environmental threats

40. HP (Hewlett Packard) having already developed a line of ink jet printers developing a line of ink-jet printer cartridges is an example of capitalizing on the concept of:

a.	cross selling	d.	line filling
b.	line stretching	e.	none of the choices are correct
c.	line elimination

41. Dove soap example we discussed in class may be "positioned" based on the following criteria:

a.	product based attributes	d.	all the choices are correct
b.	product based benefits	e.	none of the choices are correct
c.	product based beliefs and values

42. TCBY yogurt products are positioned based on:

a.	The country's best yogurt	d.	This can be yours
b.	This cup be yummy	e.	none of the choices are correct
c.	The case of balanced yield

43. Which of the following statements is true:

a.	trademarks are legally protected	c.	brandmarks enjoy wider appeal than trademarks for most companies
b.	trademarks can be a symbol or a sign, whereas brandmarks are not	d.	trademarks enjoy legal protection in all countries of the Globe

44. Craftsman brand of goods in SEARS stores is an example of:

a.	Family branding	d.	none of the choices are correct
b.	Individual branding	e.	all the choices are correct
c.	Multiple branding

45. When trademarked brand names become too popular or descriptive of a product category, they run the risk of becoming__________________ names.

a.	generic category	c.	functional
b.	popular	d.	private

46. The Universal Product Code on a good consists of information regarding, except:

a.	The general category of the good (e.g. drug or grocery)	d.	None of the choices are correct
b.	The manufacturer of the good	e.	All the choices are correct
c.	The country of origin of the good

47. The following are channel functions typically performed by the distribution channel members, except:

a.	sales promotion	d.	customer contact
b.	inventory management	e.	all choices are correct
c.	price determination

48. The main utility of assortment function performed by the channel member is:

a.	To create variety so that customer can save money and time in shopping	d.	none of the choices are correct
b.	To create satisfaction from high quality products	e.	all the choices are correct
c.	To create customer relationships with strong loyalty

49. Direct marketing practices of companies like AVON are adversely affected mainly because of the following change:

a.	Changes in consumer characteristics	d.	Changes in technology
b.	Changes in the competition	e.	None of the choices are correct
c.	Changes in legalities

50. An example of "Legalities" that has influenced the choice of the Internet as a distribution channel is:

a.	Laws that govern sales tax	d.	None of the choices are correct
b.	Laws that govern customer complaints	e.	All the choices are correct
c.	Laws that govern print advertising

51. Which of the following statements is false:

a.	Sales through company-owned stores are direct channel sales	d.	Direct channel offers close customer contact
b.	Sales of Mcdonald's franchises are considered indirect channel sales for McDonald's.	e.	A direct channel generally is more profitable for the manufacturer than an indirect channel.
c.	Direct channel sales offer more control

52. As a consumer product evolves in its product life cycle from a growth phase to maturity or decline, the distribution strategy should ideally change from:

a.	Intensive to selective	d.	None of the choices is correct
b.	Selective to Intensive	e.	Selective to exclusive
c.	Exclusive to Intensive

53. Value of a product is shaped through:

a.	The price of close substitutes or alternatives available	d.	Shared cost of the product (remember the college tuition example)
b.	Intangible features like service, warranty, etc.	e.	All the choices are correct
c.	Cost or value of end-benefit (remember the polishing wax example for Rolls Royce)

EXAM-3-Spring 2003

Answer Section

MULTIPLE CHOICE

1. D

2. D

3. B

4. A

5. D

6. D

7. E

8. C

9. A

10. C

11. D

12. B

13. A

14. D

15. C

16. C

17. D

18. D

19. C

20. B

21. C

22. D

23. A

24. C

25. D

26. C

27. C

28. C

29. D

30. A

31. E

32. E

33. D

34. E

35. A

36. E

37. D

38. E

39. C

40. A

41. D

42. A

43. A

44. A

45. A

46. C

47. E

48. A

49. A

50. A

51. E

52. B

53. E