Deck 14: Marketing Channels

Question 1

Which of the following is a difference between vertical conflict and horizontal conflict?

A)Vertical conflict occurs between different levels in a marketing channel,while horizontal conflict occurs among channel members on the same level.
B)Vertical conflict is found when manufacturers practice multiple distribution strategies,while horizontal conflict is found when manufacturers practice a single distribution strategy.
C)Vertical conflict occurs when a wholesaler chooses to bypass a producer,while horizontal conflict occurs when a producer chooses to bypass a wholesaler.
D)Vertical conflict is primarily characterized by lying and breaking contractual agreements,while horizontal conflict is primarily characterized by hiding and withholding information.

Answer 1

A

Question 2

Phoenix Automated Retail Services specializes in DVD rentals via automated retail kiosks.If consumers want a particular DVD,they can rent it from Phoenix instead of searching for it in various production studios.Phoenix therefore provides__________for both consumers and the production studios.

Answer 2

contact efficiency

Question 3

Retailers simplify distribution by cutting the number of transactions required by consumers,making an assortment of goods available in one location.

Answer 3

True

Question 4

Indigo Blue Inc.is a distributor of equipment,component parts,and supplies in the United States.It has an ownership title to all its products.These products are stocked in both national and regional warehouses to guarantee product availability and quick service to the many manufacturers who are its customers.Based on this information,Indigo Blue Inc.is an example of a(n)__________.

Question 5

Roubov Inc.is a chain of American department stores that sells clothing,furniture,home appliances,and toys.It buys its goods in large quantities directly from a manufacturer.Based on this information,Roubov Inc.most likely makes use of a(n)__________.

Question 6

Which of the following is true of the facilitating function performed by intermediaries?

A)It involves explaining a product's features,advantages,and benefits.
B)It includes transportation and storage of assets.
C)It includes research and financing.
D)It involves communicating with prospective buyers to make them aware of existing products.

Question 7

M-commerce enables consumers using wireless mobile devices to connect to the Internet and shop.

Question 8

__________occurs when a firm refuses to meet specific obligations or fails to change when new situations arise.

Question 9

Red Chilly Productions,a production studio based in the United States,decides to make a major change in its distribution strategy.It withdraws contracts from its retail partners and begins to operate its own rental store.This results in its retail partners filing several lawsuits against the company.This scenario is an example of__________.

Question 10

Which of the following is a difference between a retailer channel and a wholesaler channel?

A)A retailer channel is most common when the retailer is large and can buy in large quantities,while a wholesaler channel is commonly used for low-cost items that are frequently purchased.
B)A retailer channel must be organized and managed as a group,while a wholesaler channel must be managed individually.
C)A retailer channel helps differentiate a firm's final product from the competition,while a wholesaler channel does not.
D)A retailer channel enables a retailer to use another manufacturer's already-established product,while a wholesaler channel does not.

Question 11

A__________channel enables a consumer to return a product when it reaches the end of its useful life.

Question 12

Which of the following is true of nontraditional channels?

A)They detract from the profitability of the primary and secondary channels controlled by a business.
B)They are used to sell stolen or counterfeited products.
C)They enable a consumer to return a product when it reaches the end of its useful life.
D)They help differentiate a firm's product from the competition.

Question 13

Retailers are those firms in a marketing channel that sell directly to consumers as their primary function.

Question 14

Intensive distribution is a form of distribution aimed at minimum market coverage.

Question 15

Which of the following is true of channel conflict?

A)It always has a negative effect on the members of a channel.
B)It is often caused by an unwillingness of traditional channel members to keep up with the changing times.
C)It mixes elements of cooperation and competition between two partners who work together on the same initiative.
D)It does not occur when multiple distribution channels are used.

Question 16

The major characteristic that is used to differentiate intermediaries from one another is whether they:

A)create specialization of labor.
B)create economies of scale.
C)raise profit margins for independent middlemen.
D)take title to the products they sell.

Question 17

__________negotiate with one another,buy and sell products,and facilitate the change of ownership between buyer and seller in the course of moving a product from the manufacturer into the hands of the final consumer.

Question 18

Facial recognition technology allows multiple retailers to sell products to consumers through social media sites.

Question 19

Mezjo Inc.is a video store that sells DVDs and also sells popcorn,candy,soft drinks,and entertainment publications.It stores all of these products in separate warehouses and uses different modes of transportation to deliver them.Which of the following functions is described in this scenario?

A)Transactional functions
B)Research functions
C)Logistical functions
D)Financing functions

Question 20

In exclusive distribution,a manufacturer tries to have a product available in every outlet where potential consumers might want to buy it.

Question 21

​Retailers play a role in making distribution simpler by reducing the number of transactions required by consumersto make a purchase and by making an assortment of goods available in one location.Thisis called _____.

A)forward integration
B)​contact efficiency
C)​sorting
D)reciprocity

Question 22

Phoenix Automated Retail Servicesspecializes in DVD rentals via automated retail kiosks.If consumers want a particular DVD,they can rent it from Phoenix instead of searching for itinvariousproduction studios.Phoenixtherefore provides _____ for both consumers and the production studios.​

A)contact efficiency
B)​reciprocity
C)​synergy
D)forward integration

Question 23

Indigo Blue Inc.is a distributor of equipment,component parts,and supplies in the United States.It has an ownership title to all its products.These products are stocked in both national and regional warehouses to guarantee product availability and quick service to the many manufacturers who are its customers.Based on this information,Indigo Blue Inc.is an example of a(n)_____.​

A)agent
B)​merchant wholesaler
C)​retailer
D)government buyer

Question 24

Why have many companies begun employing multichannel marketing strategies?

Question 25

Roubov Inc.is a chain of American department stores that sells clothing,furniture,home appliances,and toys.It buys its goods in large quantities directly from a manufacturer.Based on this information,Roubov Inc.most likely makes use of a(n)_____.​

A)retailer channel
B)​wholesaler channel
C)​agent channel
D)directchannel

Question 26

​A _____ channel enables a consumer to return a product when it reaches the end of its useful life.

A)gray marketing
B)​reverse
C)​nontraditional
D)traditional

Question 27

_____ negotiate with one another,buy and sell products,and facilitate the change of ownership between buyer and seller in the course of moving a product from themanufacturer into the hands of the final consumer.​

A)Channel members
B)​Laggards
C)​Millennials
D)Early adopters

Question 28

A__________is a business structure of interdependent organizations that reaches from the point of production to the consumer and facilitates the downstream physical movement of goods through the supply chain.

Question 29

_____ occurs when a firm refuses to meet specific obligations or fails to change when new situations arise.​

A)Intensive distribution
B)​Passive opportunism
C)​Co-opetition
D)Cooperation

Question 30

Red Chilly Productions,a production studio based in the United States,decides to make a major change in its distribution strategy.It withdraws contracts from its retail partners and beginsto operate its own rental store.This results in its retail partners filing several lawsuits against the company.This scenario is an example of _____.​

A)bilateral monopoly
B)​dual distribution
C)​horizontal conflict
D)retailer monopoly

Question 31

Why are many companies transitioning to omnichannel distribution operations?

Question 32

A _____ is a business structure of interdependent organizations that reaches from the point of production to the consumer and facilitates the downstream physical movement of goods through the supply chain.​

A)market grouping
B)​common trade alliance
C)​retailer monopoly
D)marketing channel

Question 33

Retailers play a role in making distribution simpler by reducing the number of transactions required by consumers to make a purchase and by making an assortment of goods available in one location.This is called__________.