Exam 11: Distribution

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Soda is distributed in selective distribution intensity.

(True/False)
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If an orthopedic group decided to open its own freestanding surgical center, the hospital CEO would view this as a source of what type of conflict?

(Multiple Choice)
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The Internet of Things can result in greater disintermediation within health care.

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The middleman can always be eliminated, but the functions they provide cannot be; they just shift.

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When a middleman links the end user to the provider, it is considered:

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Organizations establish hybrid channels to broaden market coverage.

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An administered vertical marketing system is best represented by which of the following programs?

(Multiple Choice)
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Kaiser, a large multispecialty clinic, made the strategic decision in some of their locations to open and operate their own hospitals. In this instance, Kaiser was integrating:

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Offering consumers the opportunity to pay with a credit card provides the value of possession utility.

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In the retail positioning matrix, the ideal position is a high value-added, broad product line.

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If a manufacturer pays large margins, this can lead to it becoming a channel commander.

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Which entity in the distribution channel can form a vertical marketing system?

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Walmart tends to be a channel commander because it has a:

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The Mayo Clinic is well known nationally and internationally as a major healthcare provider. This institution might be said to have referent power.

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A hospital has decided to develop and operate primary care satellite clinics. This is an example of backward integration in the channel of distribution.

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A major tertiary center has decided to open several ambulatory clinics in the region as well as primary care satellites throughout the state in which it operates. This is an example of forward integration.

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When a tertiary care organization opens primary care satellites, it can be said to be integrating:

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In deciding the level of distribution intensity for any product or service, the key determinant is how much effort the consumer will spend in searching for the product or service.

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Disintermediation in the healthcare channel would be represented by a company such as TelaDoc.

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Gaining incentive to cooperate by another channel member can often be accomplished through the use of reward power.

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