Question 1

Downstream vertical integration is LEAST necessary when ________.

Accepted Answer

A)  sales teams are important in creating a strong brand image 
B)  channel members lack financial incentives to implement brand strategies 
C)  brand equity among consumers is independent of channel member actions 
D)  after-sales support of the branded product is necessary to ensure customer satisfaction 
E)  brand strategy requires a level of cooperation that overrides the decision-making discretion of channel members 
A)  sales teams are important in creating a strong brand image 
B)  channel members lack financial incentives to implement brand strategies 
C)  brand equity among consumers is independent of channel member actions 
D)  after-sales support of the branded product is necessary to ensure customer satisfaction 
E)  brand strategy requires a level of cooperation that overrides the decision-making discretion of channel members

Question 2

A marketing channel system in which the channels have some properties of both owned and independent channels is most likely engaged in ________.

Accepted Answer

A)  offshoring 
B)  vertical integration 
C)  horizontal integration 
D)  quasi-vertical integration 
E)  classical market contracting 
A)  offshoring 
B)  vertical integration 
C)  horizontal integration 
D)  quasi-vertical integration 
E)  classical market contracting

Question 3

According to the text,Manoukian experienced poor results with vertical integration because the firm failed to________.

Accepted Answer

A)  recognize the service outputs demanded by most end-users 
B)  realize the expertise power of independent retailers 
C)  apply the equity principle to all channel members 
D)  take control of distribution decisions 
E)  offer enough product variations 
A)  recognize the service outputs demanded by most end-users 
B)  realize the expertise power of independent retailers 
C)  apply the equity principle to all channel members 
D)  take control of distribution decisions 
E)  offer enough product variations

Question 4

Company X,which has substantial specificities,is facing a highly volatile but very promising market.What is the best option for Company X?

Accepted Answer

A)  engaging in forward vertical integration 
B)  increasing performance ambiguity 
C)  redefining channel functions 
D)  relying on local wholesalers 
E)  outsourcing distribution 
A)  engaging in forward vertical integration 
B)  increasing performance ambiguity 
C)  redefining channel functions 
D)  relying on local wholesalers 
E)  outsourcing distribution

Question 5

The LEAST likely reason that manufacturers vertically integrate is to ________.

Accepted Answer

A)  handle thin markets 
B)  learn from customers 
C)  achieve economies of scale 
D)  reduce performance ambiguity 
E)  cope with environmental uncertainty 
A)  handle thin markets 
B)  learn from customers 
C)  achieve economies of scale 
D)  reduce performance ambiguity 
E)  cope with environmental uncertainty

Question 6

According to the author,which of the following best explains the lack of multinational business activity in sub-Saharan Africa?

Accepted Answer

A)  non-standard market practices and procedures 
B)  nonexistent distribution infrastructures 
C)  uneducated, unskilled labor pools 
D)  low economic development 
E)  significant political risk 
A)  non-standard market practices and procedures 
B)  nonexistent distribution infrastructures 
C)  uneducated, unskilled labor pools 
D)  low economic development 
E)  significant political risk

Question 7

Why are third-party distributors typically able to provide better market coverage than vertically integrated manufacturers?

Accepted Answer

It is difficult for manufacturers to dup

Question 8

What is most likely essential to just-in-time supply arrangements?

Accepted Answer

A)  strong brand equity for consumers and downstream channel members 
B)  close relationships between manufacturers and channel members 
C)  use of two-way communication between end-users and retailers 
D)  management of general-purpose and idiosyncratic assets 
E)  knowledge of site specific capabilities and facilities 
A)  strong brand equity for consumers and downstream channel members 
B)  close relationships between manufacturers and channel members 
C)  use of two-way communication between end-users and retailers 
D)  management of general-purpose and idiosyncratic assets 
E)  knowledge of site specific capabilities and facilities

Question 9

Gordon Industries,a large manufacturer,pays outside firms to perform certain channel functions.What is the most common way for Gordon Industries to express the price of performing channel functions?

Accepted Answer

A)  expenses 
B)  royalties 
C)  lump sum payments 
D)  functional discounts 
E)  future considerations 
A)  expenses 
B)  royalties 
C)  lump sum payments 
D)  functional discounts 
E)  future considerations

Question 10

Alvin Electronics sells televisions,surround sound systems,and stereo components made by firms such as Sony,Bose,and Samsung.By selling a broad range of brands in the home entertainment product category,Alvin Electronics is most likely able to achieve ________.

Accepted Answer

A)  idiosyncratic knowledge 
B)  zero-based channels 
C)  economies of scale 
D)  vertical integration 
E)  site specificity 
A)  idiosyncratic knowledge 
B)  zero-based channels 
C)  economies of scale 
D)  vertical integration 
E)  site specificity

Question 11

Return on investment is best defined as the ________.

Accepted Answer

A)  percentage of equity in the firm 
B)  ratio of expenses to direct costs 
C)  revenues that accrue under integration 
D)  ratio of net effectiveness to overhead 
E)  variable costs incurred after integration 
A)  percentage of equity in the firm 
B)  ratio of expenses to direct costs 
C)  revenues that accrue under integration 
D)  ratio of net effectiveness to overhead 
E)  variable costs incurred after integration

Question 12

Which term refers to the revenues that accrue under vertical integration minus the direct costs incurred after integrating?

Accepted Answer

A)  overhead 
B)  variable costs 
C)  fixed costs 
D)  net effectiveness 
E)  return on investment 
A)  overhead 
B)  variable costs 
C)  fixed costs 
D)  net effectiveness 
E)  return on investment

Question 13

Overhead refers to the revenues that accrue under vertical integration minus the direct costs incurred after integrating.

Accepted Answer

A) True 
 B)False

Question 14

What is performance ambiguity? What are the potential causes and effects of performance ambiguity?

Accepted Answer

Performance ambiguity occurs when it is

Question 15

ACE Clothing Company makes and sells trendy clothes that appeal to teenagers.If ACE is vertically integrated,which of the following statements is most likely true?

Accepted Answer

A)  ACE clothing is sold through department stores that carry many brands. 
B)  Independent wholesalers manage ACE product distribution efforts. 
C)  ACE clothing is sold exclusively through company-owned stores. 
D)  Manufacturers' representatives sell most ACE products. 
E)  ACE clothing is promoted through social media tools. 
A)  ACE clothing is sold through department stores that carry many brands. 
B)  Independent wholesalers manage ACE product distribution efforts. 
C)  ACE clothing is sold exclusively through company-owned stores. 
D)  Manufacturers' representatives sell most ACE products. 
E)  ACE clothing is promoted through social media tools.

Question 16

Customized physical facilities,dedicated capacity levels,and site specificities are firm-specific assets that all have ________.

Accepted Answer

A)  low values for alternative uses 
B)  generic channel functions 
C)  intangible service outputs 
D)  low distribution costs 
E)  high cost gaps 
A)  low values for alternative uses 
B)  generic channel functions 
C)  intangible service outputs 
D)  low distribution costs 
E)  high cost gaps

Question 17

Which of the following would most likely be best for a manufacturer with low specificity in a highly volatile market?

Accepted Answer

A)  engaging in forward vertical integration 
B)  customizing physical facilities 
C)  acquiring competitors 
D)  expanding globally 
E)  outsourcing 
A)  engaging in forward vertical integration 
B)  customizing physical facilities 
C)  acquiring competitors 
D)  expanding globally 
E)  outsourcing

Question 18

A manufacturer that performs all functions in a channel is most likely engaged in ________

Accepted Answer

A)  outsourcing 
B)  relationalism 
C)  target marketing 
D)  vertical integration 
E)  classical market contracting 
A)  outsourcing 
B)  relationalism 
C)  target marketing 
D)  vertical integration 
E)  classical market contracting

Question 19

Research indicates that under normal circumstances in developed economies,vertical integration is more efficient than outsourcing and should be viewed as the default option for most firms.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is most likely a characteristic of relational governance?

Accepted Answer

A)  employees monitored and motivated completely by a third party 
B)  major decisions formed and implemented by a third party 
C)  costs and benefits shared by a third party and the principal 
D)  brand equity established and maintained by a third party 
E)  risks and responsibilities controlled by the principal 
A)  employees monitored and motivated completely by a third party 
B)  major decisions formed and implemented by a third party 
C)  costs and benefits shared by a third party and the principal 
D)  brand equity established and maintained by a third party 
E)  risks and responsibilities controlled by the principal

Downstream vertical integration is LEAST necessary when ________.

A marketing channel system in which the channels have some properties of both owned and independent channels is most likely engaged in ________.

According to the text,Manoukian experienced poor results with vertical integration because the firm failed to________.

Company X,which has substantial specificities,is facing a highly volatile but very promising market.What is the best option for Company X?

The LEAST likely reason that manufacturers vertically integrate is to ________.

According to the author,which of the following best explains the lack of multinational business activity in sub-Saharan Africa?

Why are third-party distributors typically able to provide better market coverage than vertically integrated manufacturers?

What is most likely essential to just-in-time supply arrangements?

Gordon Industries,a large manufacturer,pays outside firms to perform certain channel functions.What is the most common way for Gordon Industries to express the price of performing channel functions?

Alvin Electronics sells televisions,surround sound systems,and stereo components made by firms such as Sony,Bose,and Samsung.By selling a broad range of brands in the home entertainment product category,Alvin Electronics is most likely able to achieve ________.

Return on investment is best defined as the ________.

Which term refers to the revenues that accrue under vertical integration minus the direct costs incurred after integrating?

Overhead refers to the revenues that accrue under vertical integration minus the direct costs incurred after integrating.

What is performance ambiguity? What are the potential causes and effects of performance ambiguity?

ACE Clothing Company makes and sells trendy clothes that appeal to teenagers.If ACE is vertically integrated,which of the following statements is most likely true?

Customized physical facilities,dedicated capacity levels,and site specificities are firm-specific assets that all have ________.

Which of the following would most likely be best for a manufacturer with low specificity in a highly volatile market?

A manufacturer that performs all functions in a channel is most likely engaged in ________

Research indicates that under normal circumstances in developed economies,vertical integration is more efficient than outsourcing and should be viewed as the default option for most firms.

Which of the following is most likely a characteristic of relational governance?

Understanding Channel Strategies

End-User Analysis: Segmenting and Targeting

Channel Analysis: Auditing Marketing Channels

Designing Channel Structures and Strategies

Retailing Structures and Strategies

Wholesaling Structures and Strategies

Franchising Structures and Strategies

Emerging Channel Structures and Strategies

Managing Channel Power

Managing Channel Conflict

Managing Channel Relationships

Managing Channel Policies and Legalities

Managing Channel Logistics

Filters

Exam 4: Make Versus Buy Channel Analysis

Downstream vertical integration is LEAST necessary when ________.

A marketing channel system in which the channels have some properties of both owned and independent channels is most likely engaged in ________.

According to the text,Manoukian experienced poor results with vertical integration because the firm failed to________.

Company X,which has substantial specificities,is facing a highly volatile but very promising market.What is the best option for Company X?

The LEAST likely reason that manufacturers vertically integrate is to ________.

According to the author,which of the following best explains the lack of multinational business activity in sub-Saharan Africa?

Why are third-party distributors typically able to provide better market coverage than vertically integrated manufacturers?

What is most likely essential to just-in-time supply arrangements?

Gordon Industries,a large manufacturer,pays outside firms to perform certain channel functions.What is the most common way for Gordon Industries to express the price of performing channel functions?

Alvin Electronics sells televisions,surround sound systems,and stereo components made by firms such as Sony,Bose,and Samsung.By selling a broad range of brands in the home entertainment product category,Alvin Electronics is most likely able to achieve ________.

Return on investment is best defined as the ________.

Which term refers to the revenues that accrue under vertical integration minus the direct costs incurred after integrating?

Overhead refers to the revenues that accrue under vertical integration minus the direct costs incurred after integrating.

What is performance ambiguity? What are the potential causes and effects of performance ambiguity?

ACE Clothing Company makes and sells trendy clothes that appeal to teenagers.If ACE is vertically integrated,which of the following statements is most likely true?

Customized physical facilities,dedicated capacity levels,and site specificities are firm-specific assets that all have ________.

Which of the following would most likely be best for a manufacturer with low specificity in a highly volatile market?

A manufacturer that performs all functions in a channel is most likely engaged in ________

Research indicates that under normal circumstances in developed economies,vertical integration is more efficient than outsourcing and should be viewed as the default option for most firms.

Which of the following is most likely a characteristic of relational governance?

Understanding Channel Strategies

End-User Analysis: Segmenting and Targeting

Channel Analysis: Auditing Marketing Channels

Designing Channel Structures and Strategies

Retailing Structures and Strategies

Wholesaling Structures and Strategies

Franchising Structures and Strategies

Emerging Channel Structures and Strategies

Managing Channel Power

Managing Channel Conflict

Managing Channel Relationships

Managing Channel Policies and Legalities

Managing Channel Logistics

Filters