Exam 10: Channels of Distribution

Transaction cost analysis is a model that does not consider channel members' marketing costs and governance costs because they are ideally minimized.

Which channel function is most visible to the customer?

When a manufacturer gives an incentive to a retailer as a part of push marketing, the retailer has to pass that incentive on to the customer.

Wanting to please the customer but being unable to do so is an example of role conflict.

Explain what "location, location, location" means.

The channel design does not need to be consistent with all the other marketing elements (i.e., it is a stand-alone process).

Consumers are said to pull goods through the channel, whereas trading partners __________ the goods from the manufacturer on down the food chain.

Explain the two major classes of franchising.

Pixar makes fun movies.What role does the movie theater play in the distribution channel?

Executives at Inspiron Company disagree as to which channel partners are the best fit for their business.One executive says that a particular channel partner's interactions with customers are not in sync with Inspiron Company's vision and mission statement.When channel partners differ in their opinions on how to please customers and maximize profit, such as the case between Inspiron Company and its channel partner, conflict can arise.