Question 1

One important reason channel members are included between producers and end users is to overcome discrepancies.Name and briefly describe four discrepancies channel members overcome.

Accepted Answer

The answer of One important reason channel members are included...

Question 2

As products move through the marketing channel,channel members provide specialization and division of labor,overcome discrepancies,and provide contact efficiency.

Accepted Answer

A) True 
 B)False

Question 3

_____ channel relationships include non-equity agreements such as franchising and licensing,as well as equity-based joint ventures and strategic alliances.

Accepted Answer

A)  Arm's Length 
B)  Functional 
C)  Cooperative 
D)  Hierarchical 
E)  Integrated

Question 4

The major characteristic that is used to differentiate among types of intermediaries is whether they:

Accepted Answer

A)  install exchange barriers such as location, time, and quantity 
B)  create specialization of labor 
C)  create economies of scale 
D)  take title to the products they sell 
E)  raise profit margins for independent middlemen

Question 5

Redbox
Movie DVD sales represent a $16 billion market, and rentals make up another $7.5 billion. Naturally, production studios would prefer consumers purchase DVDs rather than rent them. Production studios like Twentieth-Century Fox, Warner Bros, and General Electric refused to sell new releases to Redbox, a DVD vending machine company, until almost a month after new releases arrived in stores. Redbox, the ubiquitous DVD rental red kiosks found in- and outside of convenience stores, grocery stores, drugstores, fast-food restaurants, and Wal-Mart, is cutting in on production companies' profits. These studios are tangled in lawsuits with Redbox. Sony, Paramount, and Lionsgate, on the other hand, permit distribution through Redbox, and Disney allows third-party distribution to Redbox. With more than 20,000 kiosks now in operation, Redbox ranks fifth in DVD rental revenues, which is impressive considering the rental fee is only $1.00. But Blockbuster is trying to steal vending market share by allowing NCR Corporation, known for ATM machines, to license its name to place Blockbuster Express kiosks in similar types of locations.
-Refer to Redbox. Video stores that distribute DVDs usually also sell popcorn,candy,soft drinks,and entertainment publications. Basically,they overcome discrepancies of quantity and assortment by combining products into collections or assortment that consumers want available in one place. Which channel function does this describe?

Accepted Answer

A)  logistical functions 
B)  transactional functions 
C)  facilitating functions 
D)  purchasing functions 
E)  secondary functions

Question 6

_____ is the efficient and cost-effective forward and reverse flow and storage of goods,services,and related information,into,through,and out of channel member companies.

Accepted Answer

A)  Disintermediation 
B)  Logistics 
C)  Materials handling 
D)  Intermodal transportation 
E)  Contract logistics

Question 7

_____ distribution channel relationships are situations where one company or several companies acting as one perform all channel functions.

Accepted Answer

A)  Arm's Length 
B)  Functional 
C)  Cooperative 
D)  Hierarchical 
E)  Integrated

Question 8

Companies selling standardized items of moderate or low value to other businesses (not to consumers)often use:

Accepted Answer

A)  retailers 
B)  industrial distributors 
C)  wholesalers 
D)  bulk breakers 
E)  industrial resellers

Question 9

Highly integrated channel relationships are the preferred relationship because there is no large outlay of assets required to keep the channel members all working toward the same results.

Accepted Answer

A) True 
 B)False

Question 10

Channel conflict:

Accepted Answer

A)  always has an adverse effect on the members of the channel 
B)  is not caused by ideological differences because such differences would prevent the members from ever operating as a channel 
C)  is often caused by an inability of some channel members to keep up with the changing times 
D)  can appear as either internal or external 
E)  does not occur when multiple distribution channels are used

Question 11

Which of the following types of distribution channel relationships is considered to be temporary?

Accepted Answer

A)  Arm's Length 
B)  functional 
C)  cooperative 
D)  hierarchical 
E)  integrated

Question 12

A marketing channel is a business structure composed of interdependent organizations that reach from the point of product origin to the final consumer.

Accepted Answer

A) True 
 B)False

Question 13

Kayak.com is a company that allows customers to efficiently search databases to find the best airline and hotel deals all over the Web. Kayak does not make bookings,but rather provides recommendations for the best travel plans.Travel providers pay Kayak a commission when customers click through to their sites. Kayak.com,travelers,the airlines,and the hotels are all part of a:

Accepted Answer

A)  facilitating agency 
B)  marketing mix intermediary 
C)  selective promotion channel 
D)  marketing channel or channel of distribution 
E)  transportation channel or channel of movement

Question 14

What is a marketing channel? What type of business make up a marketing channel?

Accepted Answer

The answer of What is a marketing channel? What type...

Question 15

Chewing gum and soft drinks are sold in grocery stores,service stations,convenience stores,drugstores,discount stores,and motel vending machines.This is a example of a(n)_____ distribution strategy.

Accepted Answer

A)  exclusive 
B)  reciprocal 
C)  selective 
D)  horizontal 
E)  intensive

Question 16

Shopping goods are usually distributed selectively.Consumers are willing to look around for them but may not be willing to search or travel extensively to acquire the product.

Accepted Answer

A) True 
 B)False

Question 17

At one end of the channel relationship continuum is the "Arm's Length" relationship.

Accepted Answer

A) True 
 B)False

Question 18

YKK slide fasteners (zippers)are made in Macon,Georgia,yet manufactures all over the world use zippers to manufacture,clothes,luggage,shoes,and other items.Wholesalers around the world primarily help to overcome a(n)_____ discrepancy.

Accepted Answer

A)  creation 
B)  temporal 
C)  assortment 
D)  spatial 
E)  ownership

Question 19

Marketing channels make distribution simpler by reducing the number of transactions required to get products from manufacturers to consumers.This is called:

Accepted Answer

A)  forward integration 
B)  contact efficiency 
C)  elimination of temporal discrepancies 
D)  sorting 
E)  reciprocity

Question 20

Canesta Company has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants (PDAs).The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device.When introduced to the market,the device will sell for less than $50.If,in choosing its channel,Canesta is most concerned about the life cycle of the device,then its choice of channels will largely be influenced by:

Accepted Answer

A)  factors of production 
B)  customer characteristics 
C)  ownership factors 
D)  product factors 
E)  market factors

Exam 13: Marketing Channels

One important reason channel members are included between producers and end users is to overcome discrepancies.Name and briefly describe four discrepancies channel members overcome.

As products move through the marketing channel,channel members provide specialization and division of labor,overcome discrepancies,and provide contact efficiency.

_____ channel relationships include non-equity agreements such as franchising and licensing,as well as equity-based joint ventures and strategic alliances.

The major characteristic that is used to differentiate among types of intermediaries is whether they:

_____ is the efficient and cost-effective forward and reverse flow and storage of goods,services,and related information,into,through,and out of channel member companies.

_____ distribution channel relationships are situations where one company or several companies acting as one perform all channel functions.

Companies selling standardized items of moderate or low value to other businesses (not to consumers) often use:

Highly integrated channel relationships are the preferred relationship because there is no large outlay of assets required to keep the channel members all working toward the same results.

Channel conflict:

Which of the following types of distribution channel relationships is considered to be temporary?

A marketing channel is a business structure composed of interdependent organizations that reach from the point of product origin to the final consumer.

What is a marketing channel? What type of business make up a marketing channel?

Chewing gum and soft drinks are sold in grocery stores,service stations,convenience stores,drugstores,discount stores,and motel vending machines.This is a example of a(n) _____ distribution strategy.

Shopping goods are usually distributed selectively.Consumers are willing to look around for them but may not be willing to search or travel extensively to acquire the product.

At one end of the channel relationship continuum is the "Arm's Length" relationship.

YKK slide fasteners (zippers) are made in Macon,Georgia,yet manufactures all over the world use zippers to manufacture,clothes,luggage,shoes,and other items.Wholesalers around the world primarily help to overcome a(n) _____ discrepancy.

Marketing channels make distribution simpler by reducing the number of transactions required to get products from manufacturers to consumers.This is called: