Question 1

General Motors' executives work for a short time in some dealerships, and some dealership owners work in GM's dealer policy department. This strategy helps the company avoid conflicts with its dealers. This is an example of the ________ strategy.

Accepted Answer

A)  employee exchange 
B)  dual compensation 
C)  joint membership 
D)  co-optation 
E)  diplomacy

Question 2

Who will most likely be willing to pay for high-value-added channels?

Accepted Answer

A)  early buyers of a product 
B)  internal customers of a company 
C)  small and matured buyers of an industry 
D)  consumers of low involvement products 
E)  repeat customers of a product

Question 3

DMM Industries, a manufacturer of composite metal products, sells its products using a conventional marketing channel. The company decides to adopt a vertical marketing system to improve its performance. What advantages could this provide?

Accepted Answer

The answer of DMM Industries, a manufacturer of composite metal...

Question 4

Ravake is a manufacturer of high-end designer apparel. Competition in the apparel industry is severe and the market is driven by price. What distribution strategy would be best suited to help Ravake obtain an edge over its competitors?

Accepted Answer

The answer of Ravake is a manufacturer of high-end designer...

Question 5

When Estee Lauder set up a Web site to sell its Clinique and Bobbi Brown brands, Dayton Hudson reduced space for Estee Lauder products in its department stores in response to the ________ conflict.

Accepted Answer

A)  horizontal channel 
B)  multichannel 
C)  vertical channel 
D)  grid channel 
E)  end-customer

Question 6

Manufacturers can obtain greater control over the selling process by using a sales agency.

Accepted Answer

A) True 
 B)False

Question 7

What is channel power? Explain the various types of channel power.

Accepted Answer

The answer of What is channel power? Explain the various...

Question 8

Briefly explain the various levels of marketing channels.

Accepted Answer

The answer of Briefly explain the various levels of marketing...

Question 9

A group of entrepreneurs is planning to start a food processing company. Comment on the likely evolution of the company's marketing channels.

Accepted Answer

The answer of A group of entrepreneurs is planning to...

Question 10

Dual compensation pays existing channels for sales made through new channels.

Accepted Answer

A) True 
 B)False

Question 11

A manufacturer uses the company's sales force and trade promotions to carry, promote, and sell products to end users. Which of the following strategies is this manufacturer using?

Accepted Answer

A)  personalization strategy 
B)  tailoring strategy 
C)  push strategy 
D)  pull strategy 
E)  consumer promotion strategy

Question 12

Vertical marketing systems achieve economies through size, bargaining power, and elimination of duplicated services.

Accepted Answer

A) True 
 B)False

Question 13

The redemption rate for paper coupons (10 percent) far exceeds that of mobile coupons (1 percent).

Accepted Answer

A) True 
 B)False

Question 14

Which marketing channel is associated with the highest value added per sale?

Accepted Answer

A)  retail stores 
B)  sales force 
C)  distributors 
D)  Internet 
E)  telemarketing

Question 15

Atburex is a furniture manufacturing company in the United States. The company provides a 60-day credit period and also offers on-site delivery and installation. These special benefits refer to which of the following service outputs?

Accepted Answer

A)  service backup 
B)  large product variety 
C)  spatial convenience 
D)  large lot size 
E)  short waiting time

Question 16

Altrudex Inc. is involved in the manufacture, distribution, and sale of consumer electronics. The company sources over half the products it sells from companies it partly or wholly owns. It also owns a large retail chain and sells its products through them. What marketing system is Altrudex using?

Accepted Answer

The answer of Altrudex Inc. is involved in the manufacture,...

Question 17

What is a vertical marketing system (VMS)? What are the various types of VMSs?

Accepted Answer

The answer of What is a vertical marketing system (VMS)?...

Question 18

Garolds Stores operates as a low price retailer. It offers home fashion products, such as wall decor, frames, candles, bath and bedding products, furniture, home accents, and kitchen products. The firm has showrooms and retail stores across United States. Customers can buy products in three different ways: (1) they can place orders online and have the products shipped to their homes; (2) they can buy directly from the showrooms and retail outlets; or (3) they can place orders online and pick them up from the nearest showroom. What are the benefits that Garolds Stores could achieve by using various channels to sell to customers?

Accepted Answer

The answer of Garolds Stores operates as a low price...

Question 19

Cortron Consultants provides business consulting services for startups. It helps customers design their supply chains by first evaluating the target market and then proceeds backward from that point. What is this strategy of reverse design called? Briefly explain.

Accepted Answer

The answer of Cortron Consultants provides business consulting services for...

Question 20

When economic conditions are depressed, producers want to move goods to market using longer channels.

Accepted Answer

A) True 
 B)False

Exam 17: Designing and Managing Integrated Marketing Channels

General Motors' executives work for a short time in some dealerships, and some dealership owners work in GM's dealer policy department. This strategy helps the company avoid conflicts with its dealers. This is an example of the ________ strategy.

Who will most likely be willing to pay for high-value-added channels?

DMM Industries, a manufacturer of composite metal products, sells its products using a conventional marketing channel. The company decides to adopt a vertical marketing system to improve its performance. What advantages could this provide?

Ravake is a manufacturer of high-end designer apparel. Competition in the apparel industry is severe and the market is driven by price. What distribution strategy would be best suited to help Ravake obtain an edge over its competitors?

When Estee Lauder set up a Web site to sell its Clinique and Bobbi Brown brands, Dayton Hudson reduced space for Estee Lauder products in its department stores in response to the ________ conflict.

Manufacturers can obtain greater control over the selling process by using a sales agency.

What is channel power? Explain the various types of channel power.

Briefly explain the various levels of marketing channels.

A group of entrepreneurs is planning to start a food processing company. Comment on the likely evolution of the company's marketing channels.

Dual compensation pays existing channels for sales made through new channels.

A manufacturer uses the company's sales force and trade promotions to carry, promote, and sell products to end users. Which of the following strategies is this manufacturer using?

Vertical marketing systems achieve economies through size, bargaining power, and elimination of duplicated services.

The redemption rate for paper coupons (10 percent) far exceeds that of mobile coupons (1 percent).

Which marketing channel is associated with the highest value added per sale?

Atburex is a furniture manufacturing company in the United States. The company provides a 60-day credit period and also offers on-site delivery and installation. These special benefits refer to which of the following service outputs?

Altrudex Inc. is involved in the manufacture, distribution, and sale of consumer electronics. The company sources over half the products it sells from companies it partly or wholly owns. It also owns a large retail chain and sells its products through them. What marketing system is Altrudex using?

What is a vertical marketing system (VMS)? What are the various types of VMSs?

Cortron Consultants provides business consulting services for startups. It helps customers design their supply chains by first evaluating the target market and then proceeds backward from that point. What is this strategy of reverse design called? Briefly explain.

When economic conditions are depressed, producers want to move goods to market using longer channels.