Exam 2 part 5

Which of the following is true of conventional distribution channels?

Channel members seek to maximize their own profits

Movie Giants offers DVD rentals through its Web site. It also offers DVD rentals via Star City stores. This is an example of a(n)________ distribution system.

Multi channel

A(n) ________ marketing system consists of producers, wholesalers, and retailers acting as a unified system.

Vertical

When KFC came into conflict with its franchisees over the brand's "Unthink KFC" repositioning, which emphasized grilled chicken over its traditional Kentucky fried chicken, KFC experienced ________ conflict.

Vertical

Plasticine Palace supplies its products exclusively to Arts & Crafts, a chain of stationery stores across the country. The chain then makes the plasticine available to end-consumers. This is an example of ________.

An indirect marketing channel

Lifebelt Insurance sells insurance only through its door-to-door salespeople. What type of marketing channel does Lifebelt use?

Direct

The greater the number of channel levels in a marketing channel, the ________.

Greater the channel complexity

Conflict which occurs among firms at the same level of the marketing channel is known as

Horizontal

Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ________ conflict.

Horizontal

Which of the following is a disadvantage of adding new channels in a multi channel distribution system?

decreasing control over the system