Question 1

The regrouping activity that involves breaking carload or truckload shipments into smaller quantities as products get closer to final customers is called
A)sorting.
B)retailing.
C)assorting.
D)accumulating.
E)bulk-breaking.

Accepted Answer

Bulk-breaking involves dividing larger quantities into smaller quantities as products get closer to the final market.

Question 2

When an online intermediary like Hulu scans thousands of hours of programming each week and groups these programs into categories of digital programs (e.g.sports,crime,etc.),it is an example of
A)vertical integration.
B)sorting.
C)bulk-breaking.
D)assorting.
E)licensing.

Accepted Answer

Sorting means separating products into grades and qualities as desired by different target markets.

Question 3

________ means separating products into grades and qualities as desired by different target markets.
A)Bulk-breaking
B)Sorting
C)Accumulating
D)Assorting
E)Discrepancy of quality

Accepted Answer

Sorting means separating products into grades and qualities as desired by different target markets.

Question 4

Costco is a warehouse store that sells groceries,household items,and business products.Purchase quantities tend to be larger than in traditional stores that serve final consumers.For example,soft drinks are only sold in 24-can cases,not in 6-packs.Coffee is sold in 3-pound cans instead of 1-pound foil packs.Which regrouping activity is Costco shifting to the consumer?
A)accumulating
B)adjusting discrepancies
C)assorting
D)bulk-breaking
E)sorting

Accepted Answer

Bulk-breaking involves dividing larger quantities into smaller quantities as products get closer to the final market.

Question 5

InterContinental Hardware Co.buys carload quantities of bolts,screws,nuts,washers,and other hardware from a large producer in the Netherlands,breaks these shipments into smaller quantities,and sells them to other wholesalers and retail chains.This regrouping activity is called
A)assorting.
B)wholesaling.
C)accumulating.
D)bulk-breaking.
E)sorting.

Accepted Answer

Bulk-breaking involves dividing larger quantities into smaller quantities as products get closer to the final market.

Question 6

Channel systems in which the various channel members make little or no effort to cooperate with each other are called ________ systems.
A)traditional channel
B)vertically integrated
C)direct-to-customer channel
D)franchising
E)administered channel

Accepted Answer

In traditional channel systems,the various channel members make little or no effort to cooperate with each other.

Question 7

Lacey Springs Apple Co.buys fresh apples in truckload quantities,regroups the heterogeneous commodities into homogeneous lots according to grade and quality,and then sells them to retailers.This regrouping activity is called
A)accumulating.
B)bulk-breaking.
C)sorting.
D)wholesaling.
E)assorting.

Accepted Answer

Sorting means separating products into grades and qualities as desired by different target markets.

Question 8

The desirability of a common product-market commitment is based on the idea that
A)each member of the channel should focus on a different target market.
B)the whole channel is competing with other channel systems.
C)the producer should always be the channel captain.
D)a channel can eliminate the marketing functions.
E)All of these ideas are relevant.

Accepted Answer

In a shared product-market commitment,all members focus on the same target market at the end of the channel and share the various marketing functions in appropriate ways.This desirability is based on the idea that the whole channel is competing with other channel systems.

Question 9

Traditional channels of distribution
A)do not perform bulk-breaking activities.
B)are usually preferred to other distribution arrangements.
C)are easier to control than corporate channel systems.
D)may involve little or no cooperation among channel members.
E)are usually controlled through strong legal contracts.

Accepted Answer

In traditional channel systems,the various channel members make little or no effort to cooperate with each other.

Question 10

A wholesaler selling golf carts and mowers to golf courses might also carry grass seed and grass fertilizer.This would be an example of
A)bulk-breaking.
B)sorting.
C)accumulating.
D)assorting.
E)discrepancy of quantity.

Accepted Answer

Assorting means putting together a variety of products to give a target market what it wants.

Question 11

Every morning,Sycamore Dairy picks up milk that farmers have "milked" that morning.The dairy processes the milk and separates the cream from the milk.Some of the cream is then made into butter and packaged in various sizes of containers.The milk and remaining cream are blended into various products; sealed in pint,quart,and half-gallon containers; and then delivered to supermarkets in the quantities and assortments ordered.Sycamore Dairy is engaged in which regrouping activity?
A)assorting
B)accumulating
C)sorting
D)bulk-breaking
E)All these answers are correct.

Accepted Answer

Regrouping activities adjust the quantities or assortments of products handled at each level in a channel of distribution.In this example,Sycamore Dairy is involved in all four regrouping activities: accumulating,bulk-breaking,sorting,and assorting.

Question 12

Which of the following is NOT a common cause of conflict between producers and channel partners in a channel system?
A)lack of communication
B)different objectives
C)independent operations
D)lack of a channel captain
E)different target customers

Accepted Answer

Common causes of channel conflict between producers and intermediaries include differing objectives,lack of communication,independent operations,and lack of a channel captain.Ideally,producers and intermediaries in a channel system are united in the goal of selling to the same target customers.

Question 13

Retail stores that sell "seconds" and "irregular" products at discount prices are flourishing all over the country.These stores are needed because of which regrouping activity?
A)accumulating
B)bulk-breaking
C)sorting
D)wholesaling
E)assorting

Accepted Answer

Sorting means separating products into grades and qualities as desired by different target markets.

Question 14

When an online intermediary like Hulu scans all the episodes of the TV show NCIS and then offers them to its customers one episode at a time,it is an example of
A)sorting.
B)assorting.
C)vertical integration.
D)bulk-breaking.
E)horizontal integration.

Accepted Answer

Bulk-breaking involves dividing larger quantities into smaller quantities as products get closer to the final market.

Question 15

Some sporting goods manufacturers do not make a "full line" of equipment,so the Sports World retail chain carefully selects the brands of several manufacturers to sell.This regrouping activity is called
A)accumulating.
B)assorting.
C)retailing.
D)bulk-breaking.
E)sorting.

Accepted Answer

Assorting means putting together a variety of products to give a target market what it wants.

Question 16

Bulk-breaking
A)means putting together a variety of products to give a target market what it wants.
B)involves collecting products from many small producers.
C)involves dividing larger quantities into smaller quantities as products get closer to the final market.
D)means separating products into grades and qualities desired by different target markets.
E)is most important with specialized producers of professional services.

Accepted Answer

Bulk-breaking involves dividing larger quantities into smaller quantities as products get closer to the final market.

Question 17

Regarding the distribution of digital products,which of the following statements is accurate?
A)Regrouping activities by a channel specialist can add value to the distribution of digital products.
B)Digital products do not require distribution.
C)Distribution of digital products can be very costly.
D)Digital products do not face the same discrepancies as tangible goods.
E)There would never be a need for channel specialist to handle the distribution of digital products.

Accepted Answer

Virtual products often face the same discrepancies and separations as tangible goods.Channel specialists can add value to the distribution of digital products by performing regrouping activities.

Question 18

Marketers need to foster cooperation with various members of a channel system to prevent
A)channel competition.
B)channel confusion.
C)channel conflict.
D)channel changing.
E)channel surfing.

Accepted Answer

Because members of traditional channel systems often have different objectives and different ideas about how things should be done,channel conflict is common.Ideally,all the members of a channel system should have a shared product-market commitment,with all members focusing on the same target market at the end of the channel and sharing the various marketing functions.

Question 19

The regrouping activity that involves putting together a variety of products to give a target market what it wants is called
A)assorting.
B)bulk-breaking.
C)wholesaling.
D)accumulating.
E)sorting.

Accepted Answer

Assorting means putting together a variety of products to give a target market what it wants.

Question 20

The regrouping activity that involves grading or sorting products into the grades and qualities desired by different target markets is called
A)assorting.
B)sorting.
C)wholesaling.
D)accumulating.
E)allocation.

Accepted Answer

Sorting means separating products into grades and qualities as desired by different target markets.

Quiz 10: Place and Development of Channel Systems

The regrouping activity that involves breaking carload or truckload shipments into smaller quantities as products get closer to final customers is called

When an online intermediary like Hulu scans thousands of hours of programming each week and groups these programs into categories of digital programs (e.g.sports,crime,etc.) ,it is an example of

________ means separating products into grades and qualities as desired by different target markets.

InterContinental Hardware Co.buys carload quantities of bolts,screws,nuts,washers,and other hardware from a large producer in the Netherlands,breaks these shipments into smaller quantities,and sells them to other wholesalers and retail chains.This regrouping activity is called

Channel systems in which the various channel members make little or no effort to cooperate with each other are called ________ systems.

Lacey Springs Apple Co.buys fresh apples in truckload quantities,regroups the heterogeneous commodities into homogeneous lots according to grade and quality,and then sells them to retailers.This regrouping activity is called

The desirability of a common product-market commitment is based on the idea that

Traditional channels of distribution

A wholesaler selling golf carts and mowers to golf courses might also carry grass seed and grass fertilizer.This would be an example of

Which of the following is NOT a common cause of conflict between producers and channel partners in a channel system?

Retail stores that sell "seconds" and "irregular" products at discount prices are flourishing all over the country.These stores are needed because of which regrouping activity?

When an online intermediary like Hulu scans all the episodes of the TV show NCIS and then offers them to its customers one episode at a time,it is an example of

Some sporting goods manufacturers do not make a "full line" of equipment,so the Sports World retail chain carefully selects the brands of several manufacturers to sell.This regrouping activity is called

Bulk-breaking

Regarding the distribution of digital products,which of the following statements is accurate?

Marketers need to foster cooperation with various members of a channel system to prevent

The regrouping activity that involves putting together a variety of products to give a target market what it wants is called

The regrouping activity that involves grading or sorting products into the grades and qualities desired by different target markets is called