MKTG FINAL— Marketing Channels pt 1

1) Which of the following is NOT a typical supply chain member?
A) reseller
B) supplier
C) wholesaler
D) retailer’s creditor
E) government agency
E) government agency
2) ________ the manufacturer or service provider is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service.
A) Downstream from
B) Upstream from
C) Separated from
D) Congruous to
E) Parallel with
E) Parallel with
3) Another term for the supply chain that suggests a sense-and-respond view of the market is ________.
A) supply and demand chain
B) demand chain
C) channel of distribution
D) distribution channel
E) physical distribution
E) physical distribution
4) When suppliers, distributors, and customers partner with each other to improve the performance of the entire system, they are participating in a ________.
A) value delivery network
B) channel of distribution
C) supply chain
D) demand chain
E) supply and demand chain
A) value delivery network
5) Most producers today sell their goods to ________.
A) final users
B) final users and marketing members
C) intermediaries
D) the government
C) intermediaries
6) A company’s channel decisions directly affect every ________.
A) channel member
B) marketing decision
C) customer’s choices
D) employee in the channel
E) competitor’s actions
B) marketing decision
7) Distribution channel decisions often involve ________ with other firms, particularly those that involve contracts or relationships with channel partners.
A) short-term commitments
B) long-term commitments
C) major problems
D) financial losses
E) disagreements
B) long-term commitments
8) Joe Blanco, like other producers, has discovered that his intermediaries usually offer his firm more than it can achieve on its own. Which of the following is most likely an advantage that Joe creates by working with intermediaries?
A) financial support
B) fast service
C) scale of operation
D) working relationships with foreign distributors
E) strategy development
C) scale of operation
9) From the economic system’s point of view, the role of marketing intermediaries is to transform the assortment of products made by producers into the assortment of products wanted by ________.
A) channel members
B) distributors
C) consumers
D) manufacturers
E) marketers
C) consumers
10) Producers benefit from using intermediaries because they ________.
A) offer greater efficiency in making goods available to target markets
B) bring a fresh point of view to strategy development
C) eliminate risk
D) are generally backlogged with orders
E) refuse to store products for longer than a few days
A) offer greater efficiency in making goods available to target markets
11) Intermediaries play an important role in matching ________.
A) dealer with customer
B) supply and demand
C) strategy and product
D) manufacturer to product
E) information and promotion
B) supply and demand
12) Channel members add value by bridging the major gaps of ________ that separate goods and services from those who would use them.
A) time, place, and form
B) place, possession, and form
C) time, place, and possession
D) place, time, and need
E) place, need, and distribution
C) time, place, and possession
13) Which of the following is NOT a key function that intermediaries play in completing transactions?
A) promotion
B) information
C) negotiation
D) financing
E) matching
D) financing
14) Which of the following is NOT a key function that intermediaries play in helping to fulfill a completed transaction?
A) physical distribution
B) promotion
C) financing
D) risk taking
E) storing goods
B) promotion
15) In marketing terms, we say that the number of intermediary levels indicates the ________ of a channel.
A) depth
B) complexity
C) involvement
D) length
E) width
D) length
16) To a producer of goods, a greater number of channel levels means ________ and greater channel complexity.
A) less distance between producer and end consumer
B) less control
C) more potential ideas
D) higher taxes
E) fewer channel members
B) less control
17) All of the institutions in a channel are connected by flows, including physical flow, flow of ownership, payment flow, information flow, and ________ flow.
A) promotion
B) acquisition
C) customer
D) return product
E) by-product
A) promotion
18) A distribution channel is more than a collection of firms connected by various flows; it is a(n) ________ in which people and companies interact to accomplish individual, company, and channel goals.
A) added value chain
B) complex behavioral system
C) corporate marketing system
D) vertical marketing system
E) multichannel system
B) complex behavioral system
19) One advantage of using a channel of distribution over selling direct to consumers is that each channel member plays a ________ in the channel.
A) time-saving part
B) specialized role
C) decisional role
D) informational role
E) disciplinary role
B) specialized role
20) ________ conflict, which occurs between different levels of the same channel, is more common than ________ conflict, which occurs among firms at the same level of the channel.
A) Horizontal; vertical
B) Vertical; horizontal
C) Contractual; corporate
D) Corporate; franchise
E) Wholesaler; retailer
B) Vertical; horizontal
21) Historically, ________ have lacked the leadership to assign member roles and manage conflict.
A) corporate vertical marketing systems
B) contractual vertical marketing systems
C) conventional distribution channels
D) administered vertical marketing systems
E) conventional vertical marketing systems
C) conventional distribution channels
22) A conventional distribution channel consists of one or more ________ producers, wholesalers, and retailers.
A) product-related
B) independent
C) contract
D) franchised
E) hybrid
B) independent
23) A channel consisting of one or more independent producers, wholesalers, or retailers each seeking to maximize its own profitseven at the expense of profits for the channel as a wholeis a(n) ________.
A) vertical marketing system
B) conventional distribution channel
C) independent channel allocation
D) corporate VMS
E) administered vertical marketing system
B) conventional distribution channel
24) An advantage of a vertical marketing system (VMS) over a conventional distribution channel is that it acts as a ________ system.
A) unified
B) democratic
C) socially responsible
D) customer-driven
E) task-driven
A) unified
25) A corporate VMS has the advantage of controlling the entire distribution chain under ________.
A) a profit-maximizing strategic plan
B) single ownership
C) mass distribution
D) a few intermediaries
E) franchise agreements
B) single ownership
26) Which of the following are the three major types of vertical marketing systems?
A) corporate, contractual, and chain
B) contractual, corporate, and independent
C) corporate, contractual, and administered
D) administered, independent, and franchised
E) corporate, contractual, and task
C) corporate, contractual, and administered
27) A distinguishing feature of a contractual VMS is that coordination and conflict management among the independent members of the channel are attained through ________.
A) agents and brokers
B) working partnerships
C) limited liability incorporation
D) contractual agreements
E) natural competitive forces
D) contractual agreements
28) The most common type of contractual VMS agreement in business is the ________.
A) franchise organization
B) multichannel marketing system
C) conventional marketing channel
D) corporate VMS
E) administered VMS
A) franchise organization
29) Leadership in which type of marketing system is assumed not through common ownership or contractual ties, but through the size and power of one or a few dominant channel members?
A) horizontal marketing system
B) administered VMS
C) corporate VMS
D) conventional marketing channel
E) multichannel distribution system
B) administered VMS
30) In a ________, two or more companies at one level join together to follow a new marketing opportunity.
A) franchise
B) corporate VMS
C) horizontal marketing system
D) multichannel distribution system
E) conventional distribution channel
C) horizontal marketing system
31) Hybrid marketing systems are also called ________.
A) dual distribution systems
B) multichannel distribution systems
C) administered franchises
D) horizontal multichannel systems
E) contractual marketing systems
B) multichannel distribution systems
32) As marketing manager for Globe Imports and Exports, you want to start reaping the benefits of a multichannel distribution system. You will likely enjoy all of the following EXCEPT which one?
A) expanded sales
B) expanded market coverage
C) selling at a higher gross margin
D) opportunities to tailor products and services to the needs of diverse segments
E) A and C
C) selling at a higher gross margin
33) Which of the following is the most likely disadvantage of adding new channels in a multichannel distribution system?
A) decreasing understanding of complex markets
B) decreasing control over the system
C) fewer opportunities for franchising
D) increasing disintermediation
E) reducing conflict among channel members
B) decreasing control over the system
34) Which of the following is a major disadvantage of a multichannel system?
A) channel conflict
B) less net profit
C) fewer domestic sales
D) inefficiencies
E) declining employee morale
A) channel conflict
35) Due in a large part to advances in technology, ________ is a major trend whereby product and service producers are bypassing intermediaries and going directly to final buyers, or radically new types of channel intermediaries are emerging to displace traditional ones.
A) the vertical marketing system
B) the corporate marketing system
C) disintermediation
D) the corporate merger
E) the hostile takeover
C) disintermediation
36) In many industries, traditional intermediaries are dropping by the wayside because of changes in ________ and the growth of ________ marketing.
A) federal laws; business-to-business
B) state and local laws; target
C) franchise structure; independent
D) technology; direct and online
E) channel design; retail
D) technology; direct and online
37) Marketing channel design calls for analyzing consumer needs, setting channel objectives, ________, and evaluating them.
A) establishing budget guidelines
B) identifying major channel alternatives
C) seeking approval from regulators
D) seeking legal recommendations
E) measuring objectives
B) identifying major channel alternatives
38) Which of the following should be the first step in designing a marketing channel?
A) identifying channel objectives
B) identifying what consumers want from the channel
C) analyzing channel alternatives
D) evaluating intermediaries
E) exploring international opportunities
B) identifying what consumers want from the channel
39) To increase a channel’s service level, the channel must provide a greater assortment of products, more add-on services, and ________.
A) stable prices
B) less control
C) faster delivery
D) better customer communication
E) follow-up
C) faster delivery
40) Companies should state their channel objectives in terms of targeted levels of ________.
A) advertising
B) efficiency
C) customer service
D) conflict reduction
E) profitability
C) customer service
41) Which type of product might require a more direct marketing channel to avoid delays and too much handling?
A) lower-priced products
B) perishable products
C) high-priced products
D) products in their maturity stage
E) products in their decline stage
B) perishable products
42) When a company is identifying its major channel alternatives, it should consider its choices in terms of types, number, and ________ of intermediaries.
A) size
B) power
C) responsibilities
D) capacity
E) none of the above
C) responsibilities
43) When a company determines the number of channel members to use at each level, three strategies are available: intensive, exclusive, and ________ distribution.
A) multichannel
B) selective
C) international
D) direct
E) extensive
B) selective
44) Sometimes a producer chooses only a few dealers in a territory to distribute its products or services. Generally these dealers are given a right to ________ distribution.
A) exclusive
B) selected
C) intensive
D) administered
E) corporate
A) exclusive
45) Which type of distribution is used when the producer wants more than one, but fewer than all, of the intermediaries who are willing to carry its products?
A) exclusive
B) selective
C) intensive
D) dual
E) multichannel
B) selective
46) When establishing the responsibilities of channel members, the producer establishes a list price, gives a fair set of discounts for intermediaries, and defines each channel member’s ________.
A) sales volume
B) territory
C) legal rights
D) customers
E) mission
B) territory
47) Channel members should be evaluated using all of the following criteria EXCEPT which one?
A) economic factors
B) control issues
C) adaptability criteria
D) channel leadership
E) none of the above
D) channel leadership
48) When a company compares the likely sales, costs, and profitability of different channel alternatives, it is using ________ criteria to evaluate its channel options.
A) selective
B) adaptability
C) economic
D) control
E) distribution
C) economic
49) It is common for international marketers to ________ their channel strategies for each country in which they do business.
A) extend
B) adapt
C) restrict
D) seek approval for
E) eliminate
B) adapt
50) China and India each contain more than one billion people. However, companies can access only a small percentage of these potential markets due to ________.
A) inadequate distribution systems
B) indifference toward Western products
C) insurmountable language barriers
D) high regional taxes
E) the religious caste system
A) inadequate distribution systems