Question 1

Once a company has added channels, it becomes very hard to reduce the number of channels because

Accepted Answer

A)  of competitive activity. 
B)  of bad publicity. 
C)  customers have become used to them. 
D)  customers make more transactions. 
E)  of operational silos. 
A)  of competitive activity. 
B)  of bad publicity. 
C)  customers have become used to them. 
D)  customers make more transactions. 
E)  of operational silos.

Question 2

To overcome weaknesses in its marketing mix, Papa John's was one of the first pizza companies to introduce

Accepted Answer

A)  instantly redeemable coupons. 
B)  a two-for-one pizza offering. 
C)  excessive price drops. 
D)  front-door delivery. 
E)  online ordering. 
A)  instantly redeemable coupons. 
B)  a two-for-one pizza offering. 
C)  excessive price drops. 
D)  front-door delivery. 
E)  online ordering.

Question 3

To migrate customers to the preferred channel, ING, the Dutch online bank

Accepted Answer

A)  offers multiple channels. 
B)  offers customers an incentive. 
C)  advertises only the lower-cost channel. 
D)  penalizes customers who use the lower-cost channel. 
E)  matches all competitive offerings. 
A)  offers multiple channels. 
B)  offers customers an incentive. 
C)  advertises only the lower-cost channel. 
D)  penalizes customers who use the lower-cost channel. 
E)  matches all competitive offerings.

Question 4

The cost of going to market (the combined cost of sales and marketing expenses across all channels) is often a company's single largest expense.

Accepted Answer

A) True 
 B)False

Question 5

An important part of any channel strategy is

Accepted Answer

A)  mitigating conflict. 
B)  segmenting customers. 
C)  identifying new opportunities. 
D)  focusing on low-cost channels. 
E)  conducting customer research. 
A)  mitigating conflict. 
B)  segmenting customers. 
C)  identifying new opportunities. 
D)  focusing on low-cost channels. 
E)  conducting customer research.

Question 6

To reduce channel conflict, Sony makes it hard for the consumer to comparison shop by tweaking features on each item so different channels are not really competing to sell the "same" product.

Accepted Answer

A) True 
 B)False

Question 7

The major problem associated with offering customers a choice of channels is that customers will often

Accepted Answer

A)  use multiple channels. 
B)  be exposed to competitive messages. 
C)  choose the lower-cost channel. 
D)  choose the higher-cost channel. 
E)  be confused. 
A)  use multiple channels. 
B)  be exposed to competitive messages. 
C)  choose the lower-cost channel. 
D)  choose the higher-cost channel. 
E)  be confused.

Question 8

In the channel design process, channel economics examines

Accepted Answer

A)  customer needs. 
B)  product characteristics. 
C)  profitability. 
D)  the brand strategy. 
E)  the firm's overall strategy. 
A)  customer needs. 
B)  product characteristics. 
C)  profitability. 
D)  the brand strategy. 
E)  the firm's overall strategy.

Question 9

Formulating channel strategy often results in

Accepted Answer

A)  new product development. 
B)  increased customer research. 
C)  hiring additional sales representatives. 
D)  increased channel costs. 
E)  conflict among channel members. 
A)  new product development. 
B)  increased customer research. 
C)  hiring additional sales representatives. 
D)  increased channel costs. 
E)  conflict among channel members.

Question 10

A company will likely lose market share if it does not closely align its channel mix to

Accepted Answer

A)  customer needs. 
B)  supply chain needs. 
C)  retailer needs. 
D)  competitive activity. 
E)  its marketing communications strategy. 
A)  customer needs. 
B)  supply chain needs. 
C)  retailer needs. 
D)  competitive activity. 
E)  its marketing communications strategy.

Question 11

W. W. Grainger, a leading supplier of facilities maintenance products, successfully switched its customers to a web-based ordering system and ensured a high degree of customer satisfaction by

Accepted Answer

A)  offering incentives. 
B)  using disincentives. 
C)  managing the fears of its sales force. 
D)  increasing channel costs. 
E)  eliminating commissions. 
A)  offering incentives. 
B)  using disincentives. 
C)  managing the fears of its sales force. 
D)  increasing channel costs. 
E)  eliminating commissions.

Question 12

Mismatching a customer's channel preferences with the company's channel strategy has little or no impact on market share.

Accepted Answer

A) True 
 B)False

Question 13

List the six steps in the channel design process.

Accepted Answer

1. Define realistic channel ra

Question 14

Rather than taking a strategic approach to channel design, managers often spend the majority of their time

Accepted Answer

A)  guiding customers to channels. 
B)  touching customers at each point. 
C)  mitigating channel conflict. 
D)  defining a realistic channel range. 
E)  focusing on low-cost channels. 
A)  guiding customers to channels. 
B)  touching customers at each point. 
C)  mitigating channel conflict. 
D)  defining a realistic channel range. 
E)  focusing on low-cost channels.

Question 15

The prime purpose of a channel is to effectively

Accepted Answer

A)  provide a source for customer research. 
B)  keep production costs low. 
C)  fend off competitive activity. 
D)  maintain tight delivery and production schedules. 
E)  deliver the customer value proposition. 
A)  provide a source for customer research. 
B)  keep production costs low. 
C)  fend off competitive activity. 
D)  maintain tight delivery and production schedules. 
E)  deliver the customer value proposition.

Question 16

The sequence from raw material to sale is known as the supply chain.

Accepted Answer

A) True 
 B)False

Question 17

By properly understanding customer needs and channel dynamics, a business can

Accepted Answer

A)  build a competitive advantage. 
B)  introduce new products. 
C)  increase the acquisition costs of its products. 
D)  reduce advertising spending. 
E)  compensate for product weaknesses. 
A)  build a competitive advantage. 
B)  introduce new products. 
C)  increase the acquisition costs of its products. 
D)  reduce advertising spending. 
E)  compensate for product weaknesses.

Question 18

The cost of going to market is often

Accepted Answer

A)  a fraction of product development costs. 
B)  less than 3% of the advertising budget. 
C)  equal to retail markup costs. 
D)  a company's single largest expense. 
E)  a company's smallest expense. 
A)  a fraction of product development costs. 
B)  less than 3% of the advertising budget. 
C)  equal to retail markup costs. 
D)  a company's single largest expense. 
E)  a company's smallest expense.

Question 19

Zara, a popular fashion retailer, has developed a channel strategy that is successful because it

Accepted Answer

A)  relies on traditional advertising. 
B)  is very responsive to market information flowing through its channels. 
C)  has a single focus in its product offering. 
D)  enjoys lower production and distribution costs. 
E)  maintains a long production cycle and is unresponsive to trends. 
A)  relies on traditional advertising. 
B)  is very responsive to market information flowing through its channels. 
C)  has a single focus in its product offering. 
D)  enjoys lower production and distribution costs. 
E)  maintains a long production cycle and is unresponsive to trends.

Question 20

With changing customer needs and market conditions, channel strategies have to

Accepted Answer

A)  be driven by costs. 
B)  add additional channels. 
C)  have buy-in from the sales force. 
D)  remain unchanged over time. 
E)  evolve. 
A)  be driven by costs. 
B)  add additional channels. 
C)  have buy-in from the sales force. 
D)  remain unchanged over time. 
E)  evolve.

Exam 35: Channel Strategies

Once a company has added channels, it becomes very hard to reduce the number of channels because

To overcome weaknesses in its marketing mix, Papa John's was one of the first pizza companies to introduce

To migrate customers to the preferred channel, ING, the Dutch online bank

The cost of going to market (the combined cost of sales and marketing expenses across all channels) is often a company's single largest expense.

An important part of any channel strategy is

To reduce channel conflict, Sony makes it hard for the consumer to comparison shop by tweaking features on each item so different channels are not really competing to sell the "same" product.

The major problem associated with offering customers a choice of channels is that customers will often

In the channel design process, channel economics examines

Formulating channel strategy often results in

A company will likely lose market share if it does not closely align its channel mix to

W. W. Grainger, a leading supplier of facilities maintenance products, successfully switched its customers to a web-based ordering system and ensured a high degree of customer satisfaction by

Mismatching a customer's channel preferences with the company's channel strategy has little or no impact on market share.

List the six steps in the channel design process.

Rather than taking a strategic approach to channel design, managers often spend the majority of their time

The prime purpose of a channel is to effectively

The sequence from raw material to sale is known as the supply chain.

By properly understanding customer needs and channel dynamics, a business can

The cost of going to market is often

Zara, a popular fashion retailer, has developed a channel strategy that is successful because it

With changing customer needs and market conditions, channel strategies have to

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