Use This Information for Questions That Refer to the World

question 199

Multiple Choice

Use this information for questions that refer to the World Tennis Ball (WTB) Company case. World Tennis Ball Co.(WTB) makes tennis balls and sells them only in the United States.Raul Fernandez,the firm's marketing manager,is comparing his firm's distribution with two major competitors.
1) WTB sells its products through four regional distributors,who then sell to 22 sporting goods wholesalers.The wholesalers sell to a total of 7,000 retail outlets.From its website,WTB also sells directly to any customer who will purchase a minimum quantity of 24 tennis balls.WTB cooperates with members of its channel but maintains some control through its economic power and leadership.It helps to direct the activities of the whole channel and tries to avoid or resolve channel conflicts.
2) American Tennis Ball (ATB) is a competitor that sells through two distributors-each with half the country.The distributors then sell through six sporting goods wholesalers,and they,in turn,sell to 1,000 retail outlets (split between two national sporting goods chains and two general merchandise stores) .ATB and its channel make little effort to work together.However,because of a relatively low level of competition between the distributors,the wholesalers,or the retail stores,each member of the channel gives the product special attention.
3) National Tennis Ball (NTB) sells its products through only three tennis specialty wholesalers that sell only to tennis clubs.NTB actually owns the wholesale firms that handle its products.NTB's balls are only available at certain tennis clubs and NTB limits coverage to only one club in a particular geographic area.
National Tennis Ball's channel arrangement

• A)is called horizontal distribution.
• B)is an example of intensive distribution.
• C)illustrates a traditional channel system.
• D)relies on exclusive distribution.
• E)is likely to be characterized by a high level of conflict between channel members.

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Definitions:

Price Rise

An increase in the cost of goods or services over a period.

Communal Meal

A meal shared among a group of people, often emphasizing social connection and community.

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A colorless volatile liquid, chemically denoted as ethanol or ethyl alcohol, commonly found in beverages and used as a solvent or fuel.

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Substances used for medical treatment, or those that affect the mind or body when consumed.