Question 1

________ involves conflict between members at the same level within the channel.

Accepted Answer

A)  Multichannel conflict 
B)  Lateral channel conflict 
C)  Circular channel conflict 
D)  Horizontal channel conflict 
E)  Vertical channel conflict

Question 2

Facilitators neither negotiate contracts or prices nor take title or possession of the goods but facilitate the orderly transfer of product from producer to consumer.

Accepted Answer

A) True 
 B)False

Question 3

Harley-Davidson's entry into the Web for their parts and accessory business, called for them to "protect" their retailers by referring customers to the local Harley-Davidson dealer. One additional strategy available to firms wishing to protect their channels of distribution yet capitalize on Internet sales is to

Accepted Answer

A)  sell identical brands/products. 
B)  offer offline partners higher commission rates. 
C)  not allow customers to order through/off of the Web site. 
D)  offer fewer services to Web customers than retail customers. 
E)  offer online partners higher commission rates.

Question 4

Contractual VMSs now constitute one of the most significant developments in the economy and come in three types. Which of the following is a type of contractual VMS?

Accepted Answer

A)  specialty stores 
B)  vending machines 
C)  catalog stores 
D)  kiosks stores 
E)  franchise organizations

Question 5

A marketing channel performs the work of moving goods from producers to consumers. It overcomes the time, place, and ________ gaps that separate goods and services from those who need or want them.

Accepted Answer

A)  retail 
B)  policies 
C)  buyers 
D)  possession 
E)  consumers

Question 6

When a company makes the statement "wherever there is a cash transaction" as its distribution policy, they are emphasizing a(n)

Accepted Answer

A)  intensive distribution. 
B)  maximum distribution. 
C)  blanket distribution. 
D)  selective distribution. 
E)  exclusive distribution.

Question 7

Regarding distribution systems, one of the most difficult decisions that a firm must make at some time is whether to ________ the channel strategy.

Accepted Answer

A)  scrap 
B)  discontinue 
C)  decrease members in 
D)  increase members in 
E)  revise

Question 8

A soft drink concentrate producer makes 20 percent margin on its regular soda and 25 percent on its diet version of the same drink. The soft drink bottlers, however, are required to sell both the regular and diet versions to the retailers at the same price. This is a classic example of

Accepted Answer

A)  channel coordination. 
B)  unclear roles and rights. 
C)  channel conflict. 
D)  direct conflict. 
E)  goal incompatibility.

Question 9

By adding more channels, companies can gain three important benefits. First, they can increase their market coverage, second, they can lower channel costs by moving to a lower cost channel, and third they can provide

Accepted Answer

A)  effective dollar costs/sale. 
B)  more customized selling. 
C)  increased volume of sales. 
D)  increased volume of potential customers. 
E)  increased exposure.

Question 10

In competitive markets with low entry barriers, the optimal channel structure will inevitably ________ over time.

Accepted Answer

A)  increase 
B)  stay the same 
C)  harden 
D)  change 
E)  become cumbersome

Question 11

As a recent college graduate, you dream of opening up your own business. You have explored franchising. In fact, one of the company's that you are strongly interested in is a service organization (fast food) that has a whole system designed to bring its service efficiently to consumers. This is an example of

Accepted Answer

A)  retailer cooperatives. 
B)  service firms-sponsored retailer franchise. 
C)  national retailer. 
D)  wholesaler-sponsored voluntary chains. 
E)  manufacturer-sponsored retailer franchise.

Question 12

Channel conflict is generated when one channel member's actions prevent the channel from achieving its goal.

Accepted Answer

A) True 
 B)False

Question 13

A value network includes a firm's suppliers and its suppliers' suppliers, and its immediate customers and their end

Accepted Answer

A)  shoppers. 
B)  customers. 
C)  marketers. 
D)  procedures. 
E)  retailers.

Question 14

A manufacturer selling a physical product and related services might require three channels: a sales channel, a delivery channel, and a service channel.

Accepted Answer

A) True 
 B)False

Question 15

A hybrid channel is one in which the manufacturer uses two or more marketing channels to reach customer segments.

Accepted Answer

A) True 
 B)False

Question 16

________ occurs when a single firm uses two or more marketing channels to reach one or more customer segments.

Accepted Answer

A)  Exclusive marketing 
B)  Diversified marketing 
C)  Multichannel marketing 
D)  Multimarket marketing 
E)  Integrated marketing

Question 17

Which element in the trade-relations mix refers to payment terms and producer guarantees?

Accepted Answer

A)  conditions of sale 
B)  territorial rights 
C)  specific services 
D)  channel conflict 
E)  price policies

Question 18

Your product has low brand loyalty in its category; brand choice is often made by the consumer in the store, often at the very moment of purchase. Which promotion strategy would hold the greatest opportunity for incremental sales for your product based upon the consumer criteria above?

Accepted Answer

A)  push 
B)  pull 
C)  branding 
D)  hybrid 
E)  channel

Question 19

When the producer wants to maintain control over the service level and outputs offered by the resellers it most likely will use ________ distribution.

Accepted Answer

A)  competitive 
B)  intensive 
C)  exclusive 
D)  extensive 
E)  selective

Question 20

Which of the following is one of the most significant inhibitors of online shopping?

Accepted Answer

A)  easy-to-navigate websites 
B)  lack of social interaction 
C)  lack of selection 
D)  ease of ordering 
E)  credit card security

Exam 15: Designing and Managing Integrated Marketing Channels

________ involves conflict between members at the same level within the channel.

Facilitators neither negotiate contracts or prices nor take title or possession of the goods but facilitate the orderly transfer of product from producer to consumer.

Contractual VMSs now constitute one of the most significant developments in the economy and come in three types. Which of the following is a type of contractual VMS?

A marketing channel performs the work of moving goods from producers to consumers. It overcomes the time, place, and ________ gaps that separate goods and services from those who need or want them.

When a company makes the statement "wherever there is a cash transaction" as its distribution policy, they are emphasizing a(n)

Regarding distribution systems, one of the most difficult decisions that a firm must make at some time is whether to ________ the channel strategy.

A soft drink concentrate producer makes 20 percent margin on its regular soda and 25 percent on its diet version of the same drink. The soft drink bottlers, however, are required to sell both the regular and diet versions to the retailers at the same price. This is a classic example of

By adding more channels, companies can gain three important benefits. First, they can increase their market coverage, second, they can lower channel costs by moving to a lower cost channel, and third they can provide

In competitive markets with low entry barriers, the optimal channel structure will inevitably ________ over time.

Channel conflict is generated when one channel member's actions prevent the channel from achieving its goal.

A value network includes a firm's suppliers and its suppliers' suppliers, and its immediate customers and their end

A manufacturer selling a physical product and related services might require three channels: a sales channel, a delivery channel, and a service channel.

A hybrid channel is one in which the manufacturer uses two or more marketing channels to reach customer segments.

________ occurs when a single firm uses two or more marketing channels to reach one or more customer segments.

Which element in the trade-relations mix refers to payment terms and producer guarantees?

Your product has low brand loyalty in its category; brand choice is often made by the consumer in the store, often at the very moment of purchase. Which promotion strategy would hold the greatest opportunity for incremental sales for your product based upon the consumer criteria above?

When the producer wants to maintain control over the service level and outputs offered by the resellers it most likely will use ________ distribution.

Which of the following is one of the most significant inhibitors of online shopping?