Marketing Chapter 12

A restaurateur buying produce from a grower at a farmers' market is an example of

A direct-marketing channel

Which of the following is the least expensive distribution channel for hotel rooms?

Brand.com

The chances of succeeding are the highest if you

Buy a franchise

Which of the following is not a marketing intermediary?

Concierges

Supranational, Logis de France, and Leading Hotels of the World are examples of

Consortia

Coordination and conflict management are attained through common ownership at different levels in the channel in a(n)

Corporate vertical marketing system

Franchising is an example of a corporate VMS.

False

Franchising works well in the restaurant industry but has had limited success in the hotel industry.

False

To date, the restaurant industry has had little use for the Internet as a distribution channel.

False

Vertical conflict in a channel occurs between firms at the same level in the channel.

False

________ are computerized reservation systems that serve as a product catalog for travel agents and other distributors of hospitality products.

Global distribution systems

When two or more companies at one level join to follow a new marketing opportunity, it is termed a

Horizontal Marketing System

All of the following are considered marketing intermediaries except

Independent Contractors

One function of the distribution channel is ________, which involves gathering and distributing marketing research and intelligence.

Information

Distribution specialists that serve the casino industry as intermediaries for premium players are called

Junket reps

Using sales representatives offers _____ control than building your own sales force.

Less

Which of the following is NOT a function of the distribution channel?

Linking

________ provide incentive travel for employees and distributors.

Motivational Houses

Distribution specialists that provide incentive travel offered to employees or distributors as a reward for their efforts are called

Motivations houses

When a single firm sets up two or more marketing channels to reach one or more customer segments, it is termed a

Multichannel Marketing System

Which of the following is the most expensive channel for hotel rooms?

OTA

In hotel rooms distribution channels, OTA stands for

Online Travel Agencies

A direct marketing channel has no intermediary level.

True

Alliances are informal agreements between two organizations that stand to benefit from each other's strengths.

True

Priceline is an example of a company that uses a system where the buyer cannot specify any particular brand of hotel or airline.

True

The primary reason for the use of intermediaries is their superior efficiency in making goods available and accessible to target markets.

True

There are several types of flows that connect all the institutions in the channel.

True

What is good for one member of the channel may not be good for another.

True

The first step in selecting a location for a hotel is

Understanding the target market of the company

A _______________________________ consists of producers, wholesalers, and retailers acting as a unified system.

Vertical Marketing System

In channel conflicts, conflicts between different levels of the same channel are termed

Vertical conflict

In a supply chain, "downstream" from the company is a set of firms that

Provide a connection between the firm and its customers

What is not a function of the distribution channel?

Provide consulting on feasibility of new products

In a supply chain, "upstream" from the company is a set of firms that

Provide expertise in product creation

Which of the following is not an advantage of a franchise to the franchisee?

Royalties