Question 1

Which of the following types of distribution involves severely limiting the number of channel intermediaries?

Accepted Answer

A)  exclusive 
B)  selective 
C)  intensive 
D)  aggressive 
E)  retail

Question 2

Hewlett-Packard is a highly respected brand. Many retailers want to be associated with the brand because of this reputation. What kind of power does Hewlett-Packard obtain due to this reputation?

Accepted Answer

A)  referent 
B)  functional 
C)  legitimate 
D)  coercive 
E)  reward

Question 3

Broomer threatens to withdraw all its other products from the retailers' stores if they are unwilling to push products from the "Inducer" line. This is an example of ________ power.

Accepted Answer

A)  reward 
B)  coercive 
C)  legitimate 
D)  expert 
E)  referent

Question 4

When a manufacturer requests a behavior that is warranted under the contract, the manufacturer is using coercive power.

Accepted Answer

A) True 
 B)False

Question 5

A manufacturer is using legitimate power when it ________.

Accepted Answer

A)  requests a behavior that is warranted under the selling contract 
B)  threatens to withdraw a resource or terminate a relationship 
C)  offers intermediaries an extra benefit for performing specific acts or functions 
D)  makes the intermediaries sell more of a particular product by offering rewards 
E)  sells more products by making use of its reputation in the market

Question 6

Which of the following channel functions constitute only a backward flow?

Accepted Answer

A)  movement of physical goods 
B)  placing orders with manufacturers 
C)  persuasive communication 
D)  storage of physical goods 
E)  overseeing actual transfer of ownership

Question 7

How does American Express utilize m-commerce?

Accepted Answer

The answer of How does American Express utilize m-commerce?...

Question 8

________ power can be effective, but its exercise produces resentment and can lead the intermediaries to organize countervailing power.

Accepted Answer

A)  Coercive 
B)  Reward 
C)  Legitimate 
D)  Expert 
E)  Referent

Question 9

True Value is a retailer-owned cooperative with over 4,000 independent retail locations worldwide. Members of True Value own their individual stores and operate independently. True Value helps its members procure materials at a low cost. What kind of marketing system is True Value? Explain briefly.

Accepted Answer

The answer of True Value is a retailer-owned cooperative with...

Question 10

Because of the acceptance that the other Broomer products have in the market, retailers are willing to stock items from the new "Inducer" line of clothing. This is an example of ________ power.

Accepted Answer

A)  referent 
B)  passive 
C)  legitimate 
D)  coercive 
E)  reward

Question 11

An intensive distribution strategy serves well for products such as snack foods and soft drinks.

Accepted Answer

A) True 
 B)False

Question 12

Co-optation is an effort by one organization to win the support of the leaders of another by ________.

Accepted Answer

A)  including them in advisory councils 
B)  engaging in mediation and arbitration 
C)  encouraging joint memberships in trade associations 
D)  encouraging employee exchanges 
E)  offering strategic justifications

Question 13

Crafted Jewels is a jewelry manufacturer that sells its designs to various jewelry retailers. The retailers often complain that the company's online store acts as a competitor and reduces their profitability. What type of conflict is this? Briefly explain.

Accepted Answer

The answer of Crafted Jewels is a jewelry manufacturer that...

Question 14

Explain the three distribution strategies based on the number of intermediaries.

Accepted Answer

The answer of Explain the three distribution strategies based on...

Question 15

Differentiate between pure-click companies and brick-and-click companies.

Accepted Answer

The answer of Differentiate between pure-click companies and brick-and-click companies....

Question 16

Producers often shift some functions to intermediaries. Which of the following is the most significant benefit of doing this?

Accepted Answer

A)  It increases customer loyalty. 
B)  It provides the producer with greater control over operations. 
C)  It reduces the amount of direct customer interaction. 
D)  It lowers the producer's costs and prices. 
E)  It ensures greater information security.

Question 17

A pull strategy is particularly appropriate when there is low brand loyalty in a category, brand choice is made in the store, the product is an impulse item, and product benefits are well understood.

Accepted Answer

A) True 
 B)False

Question 18

A franchise organization is an example of a(n) ________ vertical marketing system.

Accepted Answer

A)  corporate 
B)  administered 
C)  contractual 
D)  regulatory 
E)  controlled

Question 19

Which of the following is the most accurate description of a value network?

Accepted Answer

A)  a system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings 
B)  a system of organizations and resources involved in moving a product from supplier to customer 
C)  an arrangement whereby an organization transforms inputs into finished goods 
D)  a network that allows an organization take the finished products to the end-users 
E)  a communication network that allows an organization to transfer information to end-customers

Question 20

If a producer wants to achieve rapid market penetration through a low-price policy, while a dealer wants to work with high margins to pursue short-run profitability, the source of the channel conflict is ________.

Accepted Answer

A)  unclear roles and rights 
B)  goal incompatibility 
C)  differences in perception 
D)  intermediaries' dependence on the manufacturer 
E)  strategic justification

Exam 17: Designing and Managing Integrated Marketing Channels

Which of the following types of distribution involves severely limiting the number of channel intermediaries?

Hewlett-Packard is a highly respected brand. Many retailers want to be associated with the brand because of this reputation. What kind of power does Hewlett-Packard obtain due to this reputation?

Broomer threatens to withdraw all its other products from the retailers' stores if they are unwilling to push products from the "Inducer" line. This is an example of ________ power.

When a manufacturer requests a behavior that is warranted under the contract, the manufacturer is using coercive power.

A manufacturer is using legitimate power when it ________.

Which of the following channel functions constitute only a backward flow?

How does American Express utilize m-commerce?

________ power can be effective, but its exercise produces resentment and can lead the intermediaries to organize countervailing power.

True Value is a retailer-owned cooperative with over 4,000 independent retail locations worldwide. Members of True Value own their individual stores and operate independently. True Value helps its members procure materials at a low cost. What kind of marketing system is True Value? Explain briefly.

Because of the acceptance that the other Broomer products have in the market, retailers are willing to stock items from the new "Inducer" line of clothing. This is an example of ________ power.

An intensive distribution strategy serves well for products such as snack foods and soft drinks.

Co-optation is an effort by one organization to win the support of the leaders of another by ________.

Crafted Jewels is a jewelry manufacturer that sells its designs to various jewelry retailers. The retailers often complain that the company's online store acts as a competitor and reduces their profitability. What type of conflict is this? Briefly explain.

Explain the three distribution strategies based on the number of intermediaries.

Differentiate between pure-click companies and brick-and-click companies.

Producers often shift some functions to intermediaries. Which of the following is the most significant benefit of doing this?

A pull strategy is particularly appropriate when there is low brand loyalty in a category, brand choice is made in the store, the product is an impulse item, and product benefits are well understood.

A franchise organization is an example of a(n) ________ vertical marketing system.

Which of the following is the most accurate description of a value network?

If a producer wants to achieve rapid market penetration through a low-price policy, while a dealer wants to work with high margins to pursue short-run profitability, the source of the channel conflict is ________.