Deck 11: Marketing Channels

Question 1

A company's channel decisions directly affect every ________.
channel member
marketing decision
customer's choices
employee in the channel
competitor's actions

Answer 1

marketing decision

Question 2

Which of the following are the three major types of vertical marketing systems?
corporate, contractual, and chain
contractual, corporate, and independent
corporate, contractual, and administered
administered, independent, and franchised
corporate, contractual, and task

Answer 2

corporate, contractual, and administered

Question 3

Distribution channel decisions often involve ________ with other firms, particularly those that involve contracts or relationships with channel partners.
short-term commitments
long-term commitments
major problems
financial losses
disagreements

Answer 3

long-term commitments

Question 4

Producers benefit from using intermediaries because they ________.
offer greater efficiency in making goods available to target markets
bring a fresh point of view to strategy development
eliminate risk
are generally backlogged with orders
refuse to store products for longer than a few days

Question 5

Channel conflict can ________ different levels of the same channel or ________ firms at the same level of the channel.
overlook; include
be between; among
contractualize; corporatize
overcome; eliminate
damage; bring together

Question 6

Channel members add value by bridging the major gaps of ________ that separate goods and services from those who would use them.
time, place, and form
place, possession, and form
time, place, and possession
place, time, and need
place, need, and distribution

Question 7

A channel consisting of one or more independent producers, wholesalers, or retailers each seeking to maximize its own profits-even at the expense of profits for the channel as a whole-is a(n) ________.
vertical marketing system
conventional distribution channel
independent channel allocation
corporate VMS
administered vertical marketing system

Question 8

An advantage of a vertical marketing system (VMS) over a conventional distribution channel is that it acts as a ________ system.
unified
democratic
socially responsible
customer-driven
task-driven

Question 9

All of the institutions in a channel are connected by flows, including physical flow, flow of ownership, payment flow, information flow, and ________ flow.
promotion
acquisition
customer
return product
by-product

Question 10

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 ________.
channel members
distributors
consumers
manufacturers
marketers

Question 11

A corporate VMS has the advantage of controlling the entire distribution chain under ________.
a profit-maximizing strategic plan
single ownership
mass distribution
a few intermediaries
franchise agreements

Question 12

Most producers today sell their goods to ________.
final users
final users and marketing members
intermediaries
the government at various levels
competitors

Question 13

A conventional distribution channel consists of one or more ________ producers, wholesalers, and retailers.
product-related
independent
contract
franchised
hybrid

Question 14

Intermediaries play an important role in matching ________.
dealer with customer
supply and demand
strategy and product
manufacturer to product
information and promotion

Question 15

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.
added value chain
complex behavioural system
corporate marketing system
vertical marketing system
multichannel system

Question 16

In marketing terms, we say that the number of intermediary levels indicates the ________ of a channel.
depth
complexity
involvement
length
width

Question 17

To a producer of goods, a greater number of channel levels means ________ and greater channel complexity.
less distance between producer and end consumer
less control
more potential ideas
higher taxes
fewer channel members

Question 18

When suppliers, distributors, and customers partner with each other to improve the performance of the entire system, they are participating in a ________.
value delivery network
channel of distribution
supply chain
demand chain
supply and demand chain

Question 19

Historically, ________ have lacked the leadership to assign member roles and manage conflict.
corporate vertical marketing systems
contractual vertical marketing systems
conventional distribution channels
administered vertical marketing systems
conventional vertical marketing systems

Question 20

________ 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.
Downstream from
Upstream from
Separated from
Congruous to
Parallel with

Question 21

Hybrid marketing systems are also called ________.
dual distribution systems
multichannel distribution systems
administered franchises
horizontal multichannel systems
contractual marketing systems

Question 22

When a company determines the number of channel members to use at each level, three strategies are available: intensive, exclusive, and ________ distribution.
multichannel
selective
international
direct
extensive

Question 23

Which of the following is the most likely disadvantage of adding new channels in a multichannel distribution system?
decreasing understanding of complex markets
decreasing control over the system
fewer opportunities for franchising
increasing disintermediation
reducing conflict among channel members

Question 24

The difference between distribution centres and storage warehouses is that distribution centres are designed to ________.
store goods for longer periods
hold larger volumes
move goods rather than just store them
primarily be owned by the manufacturer
be automated

Question 25

In a ________, two or more companies at one level join together to follow a new marketing opportunity.
franchise
corporate VMS
horizontal marketing system
multichannel distribution system
conventional distribution channel

Question 26

Which of the following is a major disadvantage of a multichannel system?
channel conflict
less net profit
fewer domestic sales
inefficiencies
declining employee morale

Question 27

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?
horizontal marketing system
administered VMS
corporate VMS
conventional marketing channel
multichannel distribution system

Question 28

In many industries, traditional intermediaries are dropping by the wayside because of changes in ________ and the growth of ________ marketing.
federal laws; business-to-business
provincial/territorial and local laws; target
franchise structure; independent
technology; direct and online
channel design; retail

Question 29

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.
exclusive
selected
intensive
administered
corporate

Question 30

The most common type of contractual VMS agreement in business is the ________.
franchise organization
multichannel marketing system
conventional marketing channel
corporate VMS
administered VMS

Question 31

A company should think of its intermediaries as both its ________ and ________.
competitors; partners
customers; partners
competitors; marketers
customers; employees
customers; competitors

Question 32

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?
exclusive
selective
intensive
dual
multichannel

Question 33

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.
the vertical marketing system
the corporate marketing system
disintermediation
the corporate merger
the hostile takeover

Question 34

Marketing channel management calls for selecting, managing, ________, and evaluating channel members over time.
reducing conflict
reducing waste
motivating
terminating
reinstating

Question 35

Marketing logistics involves which of the following distribution flows?
outbound and inbound
outbound, inbound, and reverse
outbound and reverse
inbound and reverse
outbound

Question 36

To reduce inventory management costs, many companies use a system called ________, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation.
reduction-inventory management
just-in-time logistics
limited inventory logistics
supply chain management
economic order quantity

Question 37

Using ________, retailers can share real-time data on sales and current inventory levels with suppliers who take responsibility for ordering and delivering products to retailers, thereby saving time and money.
dual distribution modes
continuous inventory replenishment systems
the Internet
their own trucking and distribution systems
integrated distribution

Question 38

A distinguishing feature of a contractual VMS is that coordination and conflict management among the independent members of the channel are attained through ________.
agents and brokers
working partnerships
limited liability incorporation
contractual agreements
natural competitive forces

Question 39

Through the use of ________, or "smart tag" technology, a company is able to locate exactly where a product is within the supply chain.
RFID
PRM
VMS
IT
3PL

Question 40

Which type of product might require a more direct marketing channel to avoid delays and too much handling?
lower-priced products
perishable products
high-priced products
products in their maturity stage
products in their decline stage

Question 41

Which of the following is an example of a manufacturer-sponsored retailer franchise system?
fast-food restaurants such as McDonald's and Burger King
Starbucks operating within Target stores
Ford and its network of independent franchised dealers
licensed bottlers that bottle and sell Coca-Cola to retailers
motels such as Holiday Inn and Ramada Inn

Question 42

Steve's Physco Skates sells its products to Walmart, which then sells them to consumers.This is an example of a(n) ________.
direct marketing channel
producer channel
indirect marketing channel
retailer channel
corporate vertical marketing system

Question 43

Specialty stores carry ________ with ________ within them.
convenience items; mostly staples
narrow product lines; deep assortments
narrow product lines; shallow assortments
wide product lines; shallow assortments
wide product lines; deep assortments

Question 44

Which type of store is much larger than regular supermarkets and offers a large assortment of routinely purchased food products, nonfood items, and services?
category killer
chain
factory outlet
superstore
off-price

Question 45

Which of the following is an example of a multichannel distribution system?
Walmart locating to several countries
Sears' catalog and retail store sales
Avon's door-to-door distribution
Starbuck's location inside of book stores
a hotel providing guest privileges at a health spa across the street

Question 46

Staples Office Supply opened an online store that created competition with many of its dealers.The corporate office created a(n) ________ conflict.
channel
problematic
functional
horizontal
intermediation

Question 47

Which type of stores usually carry more specialty goods for which customers like to be "waited on" and have much higher operating costs, which are passed along to the customer?
self-service stores
category killer stores
full-service stores
independent stores
off-price stores

Question 48

When Amazon began delivering Books directly to customers through delivery instead of using a brick-and-mortar system, Amazon was following the trend of ________.
indirect marketing
disintermediation
a franchise system
exclusive distribution
selective distribution

Question 49

Which product will most likely be exclusively distributed?
BMW cars
Levi's blue jeans
Bazooka bubble gum
Prairie Farms yogurt
Coca-Cola

Question 50

Which product(s) will most likely be intensively distributed?
Olympus digital cameras
BMW cars
Guess blue jeans
Coca-Cola
Nike running shoes

Question 51

Which of the following retailers likely put the most emphasis on salespeople assisting customers?
limited-service retailers
full-service retailers
self-service retailers
megaretailers
off-price retailers

Question 52

Max Samuelson is a high-end Montreal-based fashion designer who markets his clothing lines through a limited number of highly reputable retailers.Max uses ________.
exclusive distribution
exclusive dealing
exclusive territorial agreements
full-line forcing
tying agreements

Question 53

Tiffany & Co jewelry can only be found in a limited number of intermediaries.This is an example of ________.
exclusive distribution
intensive distribution
quality distribution
high-end distribution
independent distribution

Question 54

________ is the basis of all discount operations and is typically used by sellers of convenience goods.Retailers offering this level of service require customers to perform their own "locate-compare-select" process in order to save money.
Limited-service
Self-service
Full-service
Specialty-service
Wholesale

Question 55

________, such as Sears, provide more sales assistance because they carry more shopping goods about which customers need information.Their increased operating costs result in higher prices.
Self-service retailers
Full-service retailers
Off-price retailers
Limited-service retailers
Specialty-service retailers

Question 56

Today, a growing number of firms now outsource some or all of their logistics to ________.
cross-functional teams
intermediaries
channel members
third-party logistics providers
competitors

Question 57

Which type of store carries a wide variety of product lines and differentiates itself through service, but has been squeezed in recent years between more focused and flexible specialty stores on the one hand and more efficient, lower-priced discounters on the other?
chain
department
factory outlet
merchant wholesaler
independents

Question 58

Chewing gum is stocked in many outlets in the same market or community; in fact, it is placed in as many outlets as possible.This is an example of ________ distribution.
exclusive
selective
multichannel
intensive
disintermediated

Question 59

Proud Pets, a producer of clothing and accessories for pets, has recently partnered with a regional chain of pet stores.Which of the following would Proud Pets be LEAST likely to expect from its new channel member?
promoting its products through advertising
assembling and packaging its products for final sale
distributing relevant marketing research information
identifying raw materials and other productive inputs
negotiating on its products' prices

Question 60

When McDonald's offers its products inside of a Walmart store, it is acting as part of a ________.
conventional distribution channel
direct marketing channel
disintermediated system
administered VMS
horizontal marketing system

Question 61

Touch-screen kiosks, customer-loyalty cards, handheld shopping assistants, and self-scanning checkout systems are all examples of how retailers use technology to ________.
maintain inventory costs
send information between stores
interact with suppliers
decrease the need for promotions
meet consumers' technological expectations

Question 62

________ are the largest group of wholesalers.The group can be divided into the two broad types of full-service and limited-service.
Brokers
Manufacturer sellers
Agents
Merchant wholesalers
Specialty wholesalers

Question 63

A growing number of outlet malls now feature upscale brands such as Coach, Polo Ralph Lauren, Dolce & Gabbana, and Giorgio Armani.Which of the following are most likely to protest about this trend to the manufacturers of these brands?
membership warehouses
agents
brokers
department stores
factory outlets

Question 64

McDonald's, Subway, and Pizza Hut are all examples of a ________.
voluntary chain
retailer cooperative
franchise
full-service retailer
power centre

Question 65

Overstock.com, a web seller that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices and then charges customers less than retail, is a(n) ________.
discount store
independent off-price retailer
factory outlet
wholesale club
category killer

Question 66

GameStop sells video games and systems, offering a narrow product line with a deep assortment within that line.GameStop is a(n)________.
department store
convenience store
specialty store
category killer
off-price retailer

Question 67

________ buy mostly from producers and sell to retailers and industrial consumers.
Independents
Factory outlets
Wholesalers
Discount stores
Megaretailers

Question 68

________ and ________ do not take title to goods, and they perform only a few channel functions.
Full-service wholesalers; limited-service wholesalers
Brokers; agents
Branches; office
Power centres; independent wholesalers
Independent wholesalers; off-price retailers

Question 69

Which type of store carries a deep assortment, has knowledgeable staff, and might actually be viewed as a giant specialty store?
category killer
chain
factory outlet
shopping center
independent

Question 70

________ includes all activities involved in selling goods and services to those buying for resale or business use.
Wholesaling
Retailing
Franchising
Discounting
Disintermediation

Question 71

________ represent a buyer or seller on a more permanent basis.
Brokers
Franchises
Agents
Retailers
Intermediaries

Question 72

7-Eleven, Stop-N-Go, and Macs, small stores that traditionally have had a primary market of young, blue-collar men, are examples of ________.
specialty stores
department stores
convenience stores
supermarkets
category killers

Question 73

Like retailers, wholesalers must ________ their target markets and ________ themselves effectively, for they cannot serve everyone.
define; position
position; define
discount; franchise
franchise; discount
identify; compare

Question 74

At Neiman Marcus, a first-class department store, customers shop for specialty products and have come to expect assistance in every phase of the shopping process.Neiman Marcus is a ________.
self-service retailer
limited-service retailer
full-service retailer
specialty store
power centre

Question 75

________ have filled the ultralow-priced, high-volume gap by buying at less than regular wholesale prices and charging consumers less than retail.
Off-price retailers
Discount stores
Convenience stores
Chain store
Limited-service retailers

Question 76

________ operate in warehouse-like facilities, sell a limited selection of items, and offer few frills.Customers pay annual membership fees and are able to purchase goods at deep discounts.
Warehouse clubs
Independent off-price retailers
Factory outlets
Discount stores
Superstores

Question 77

Which of the following is most likely the greatest factor in the increasingly short life cycle of new retail forms?
changes in technology
economic swings
import and export regulations
stagnating retail convergence
global expansion of major retailers

Question 78

________ are sometimes several stores grouped together.These stores offer prices as low as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular items.
Category killers
Factory outlets
Specialty stores
Superstores
Power centers

Question 79

________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume.
Merchant wholesalers
Discount stores
Full-service retailers
Limited-service retailers
Factory outlets

Question 80

A(n) ________ brings buyers and sellers together and assists in negotiations.
agent
broker
retailer
wholesaler
retail convergence