Exam 10: Marketing Channels: Delivering Customer Value 

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 website to sell its books. This change in channel organization is called .

Supply chain management involves managing both upstream and downstream value-added flows of materials.

What is a contractual vertical marketing system? Give an example of a type of business that works as a contractual VMS.

What is disintermediation? With a suitable example, explain the opportunities and problems that disintermediation presents for producers and resellers.

When setting channel objectives, it is important to first consider .

Mary Kay Cosmetics and The Pampered Chef sell their products through home and office sales parties, online websites, and social media. Both companies use a(n) _ channel to distribute their offerings.

Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is toward insofar as product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones.

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.

is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of the producer's merchandise.

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

All the institutions in a channel are connected by several types of flows. Canadian retailers like Sobey's and Loblaws provide key sales information to their wholesalers. This is an example of .

Which type of channel arrangement is a retailer like Home Depot likely to follow?

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

In a logistics system, minimizing distribution costs most likely involves .

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

Full-line forcing is considered an illegal arrangement that violates the Competition Act.

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?

Disintermediation occurs when product or service producers cut out intermediaries and sell directly to final buyers.

Jupiter Steel is the chief provider of metals to Greystone Motors. Greystone Motors has two models of cars-one for commercial and regular consumers and another for professional car racing teams. Greystone Motors has designated dealers to sell its commercial cars to consumers, while racing cars are sold directly to the racing teams. In such a distribution channel, which of the following would be considered a horizontal conflict?

Using , a company uses one or more levels of intermediaries to help bring its products to final buyers. Examples: most of the things you buy-everything from toothpaste to cameras to cars.