Exam 10: Marketing Channels: Delivering Customer Value

Which of the following is an advantage of exclusive dealing between a seller and a dealer?

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n)________.

Most producers sell their goods directly to final users.

Which of the following is true of an exclusive dealing arrangement between a producer and a dealer?

Integrating the entire distribution chain - from its own design and manufacturing operations to distribution through its own managed stores - has turned Spanish clothing chain Zara into the world's fastest-growing fast-fashion retailer. This is an example of a(n)________ marketing system.

Which of the following is true of a conventional distribution channel?

In exclusive dealing, a producer may agree not to sell to other dealers in a given area.

Historically, conventional distribution channels have provided channel leadership and have had the power to assign roles and manage conflict.

Producers of convenience products and common raw materials typically seek ________ distribution - a strategy in which they stock their products in as many outlets as possible

Which mode of transportation is best for carrying perishable goods to distant markets?

For over 10 years, Erudite, a publishing and educational company that produces college textbooks, has been selling its books online through studysmart.com, a popular online retailer that sells textbooks published by different companies. Recently, Erudite stopped selling its books through studysmart.com and set up its own Web site to sell its books. This change in channel organization is called ________.

Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber's lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the tires and its expertise on the racing industry. Which term best describes Faber's channel arrangements?

In an administered VMS, the producer assumes the leadership position in a distribution channel by default.

High-end luxury brands like Bentley for cars, Louis Vuitton for handbags, and Rolex for watches use ________ distribution, giving a limited number of dealers the sole right to sell products in a specified geographic territory.

In a just-in-time logistics system, ________.

Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It invites proposals from independent dealers who are willing to set up exclusive showrooms that only sell Rage's superbikes. Chosen dealers will sell and service the superbikes, and Rage will oversee national advertising. This is most likely an example of a(n)________.

The franchise organization is an example of a corporate vertical marketing system.

Performance Inc. sells its newest athletic shoe styles to The Sneaker Store and distributes dated or slightly defective merchandise through Sports Discounters. Performance Inc.'s main competitor is Topnotch Manufacturers. Performance Inc. also markets its products through the company Web site. They decide to offer a short-term online promotion to encourage consumers to buy their newest athletic shoes, promoting a 20 percent discount off current retail prices. In such a distribution channel, which of the following would be considered a vertical conflict?

In which of the following situations is a producer guaranteed full control over product sales?