MRKT 305 Exam 3 Ch 14

Facial recognition technology allows multiple retailers to sell products to consumers through social media sites. a. True b. False

False

In exclusive distribution, a manufacturer tries to have a product available in every outlet where potential consumers might want to buy it. a. True b. False

False

Intensive distribution is a form of distribution aimed at minimum market coverage. a. True b. False

False

. Retailers are those firms in a marketing channel that sell directly to consumers as their primary function. a. True b. False

True

M-commerce enables consumers using wireless mobile devices to connect to the Internet and shop. a. True b. False

True

Retailers simplify distribution by cutting the number of transactions required by consumers, making an assortment of goods available in one location. a. True b. False

True

Which of the following is a difference between a retailer channel and a wholesaler channel? a. A retailer channel is most common when the retailer is large and can buy in large quantities, while a wholesaler channel is commonly used for low-cost items that are frequently purchased. b. A retailer channel must be organized and managed as a group, while a wholesaler channel must be managed individually. c. A retailer channel helps differentiate a firm's final product from the competition, while a wholesaler channel does not. d. A retailer channel enables a retailer to use another manufacturer's already-established product, while a wholesaler channel does not.

a. A retailer channel is most common when the retailer is large and can buy in large quantities, while a wholesaler channel is commonly used for low-cost items that are frequently purchased.

Which of the following is a difference between vertical conflict and horizontal conflict? a. Vertical conflict occurs between different levels in a marketing channel, while horizontal conflict occurs among channel members on the same level. b. Vertical conflict is found when manufacturers practice multiple distribution strategies, while horizontal conflict is found when manufacturers practice a single distribution strategy. c. Vertical conflict occurs when a wholesaler chooses to bypass a producer, while horizontal conflict occurs when a producer chooses to bypass a wholesaler. d. Vertical conflict is primarily characterized by lying and breaking contractual agreements, while horizontal conflict is primarily characterized by hiding and withholding information.

a. Vertical conflict occurs between different levels in a marketing channel, while horizontal conflict occurs among channel members on the same level.

___ negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving a product from themanufacturer into the hands of the final consumer.​ a. ​Channel members b. ​Laggards c. ​Millennials d. ​Early adopters

a. channel members

Phoenix Automated Retail Servicesspecializes in DVD rentals via automated retail kiosks. If consumers want a particular DVD, they can rent it from Phoenix instead of searching for itinvariousproduction studios. Phoenixtherefore provides _____ for both consumers and the production studios.​ a. ​contact efficiency b. ​reciprocity c. ​synergy d. ​forward integration

a. contact efficiency

Roubov Inc. is a chain of American department stores that sells clothing, furniture, home appliances, and toys.It buys its goods in large quantities directly from a manufacturer. Based on this information, Roubov Inc. most likely makes use of a(n) _____.​ a. ​retailer channel b. ​wholesaler channel c. ​agent channel d. ​directchannel

a. retailer channel

Which of the following is true of channel conflict? a. It always has a negative effect on the members of a channel. b. It is often caused by an unwillingness of traditional channel members to keep up with the changing times. c. It mixes elements of cooperation and competition between two partners who work together on the same initiative. d. It does not occur when multiple distribution channels are used.

b. It is often caused by an unwillingness of traditional channel members to keep up with the changing times.

Retailers play a role in making distribution simpler by reducing the number of transactions required by consumersto make a purchase and by making an assortment of goods available in one location. Thisis called _____. a. ​forward integration b. ​contact efficiency c. ​sorting d. ​reciprocity

b. contact efficiency

Indigo Blue Inc. is a distributor of equipment, component parts, and supplies in the United States. It has an ownership title to all its products.These products are stocked in both national and regional warehouses to guarantee product availability and quick service to the many manufacturers who are its customers. Based on this information, Indigo Blue Inc. is an example of a(n) _____.​ a. ​agent b. ​merchant wholesaler c. ​retailer d. ​government buyer

b. merchant wholesaler

_____ occurs when a firm refuses to meet specific obligations or fails to change when new situations arise.​ a. ​Intensive distribution b. ​Passive opportunism c. ​Co-opetition d. ​Cooperation

b. passive opportunism

A _____ channel enables a consumer to return a product when it reaches the end of its useful life. a. ​gray marketing b. ​reverse c. ​nontraditional d. ​traditional

b. reverse

Red Chilly Productions, a production studio based in the United States, decides to make a major change in its distribution strategy. It withdraws contracts from its retail partners and beginsto operate its own rental store. This results in its retail partners filing several lawsuits against the company. This scenario is an example of _____.​ a. ​bilateral monopoly b. ​dual distribution c. ​horizontal conflict d. ​retailer monopoly

c. horizontal conflict

Which of the following is true of the facilitating function performed by intermediaries? a. It involves explaining a product's features, advantages, and benefits. b. It includes transportation and storage of assets. c. It includes research and financing. d. It involves communicating with prospective buyers to make them aware of existing products.

c. it includes research and financing

Mezjo Inc. is a video store that sells DVDs and also sells popcorn, candy, soft drinks, and entertainment publications. It stores all of these products in separate warehouses and uses different modes of transportation to deliver them. Which of the following functions is described in this scenario? a. Transactional functions b. Research functions c. Logistical functions d. Financing functions

c. logistical functions

__________negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving a product from the manufacturer into the hands of the final consumer.

channel members

Phoenix Automated Retail Services specializes in DVD rentals via automated retail kiosks. If consumers want a particular DVD, they can rent it from Phoenix instead of searching for it in various production studios. Phoenix therefore provides__________for both consumers and the production studios.

contact efficiency

Retailers play a role in making distribution simpler by reducing the number of transactions required by consumers to make a purchase and by making an assortment of goods available in one location. This is called__________.

contact efficiency

The major characteristic that is used to differentiate intermediaries from one another is whether they: a. create specialization of labor. b. create economies of scale. c. raise profit margins for independent middlemen. d. take title to the products they sell.

d. take title to the products they sell

Which of the following is true of nontraditional channels? a. They detract from the profitability of the primary and secondary channels controlled by a business. b. They are used to sell stolen or counterfeited products. c. They enable a consumer to return a product when it reaches the end of its useful life. d. They help differentiate a firm's product from the competition.

d. they help differentiate a firm's product from the competition

A _____ is a business structure of interdependent organizations that reaches from the point of production to the consumer and facilitates the downstream physical movement of goods through the supply chain.​ a. ​market grouping b. ​common trade alliance c. ​retailer monopoly d. ​marketing channel

d. ​marketing channel

Red Chilly Productions, a production studio based in the United States, decides to make a major change in its distribution strategy. It withdraws contracts from its retail partners and begins to operate its own rental store. This results in its retail partners filing several lawsuits against the company. This scenario is an example of__________.

horizontal conflict

A__________is a business structure of interdependent organizations that reaches from the point of production to the consumer and facilitates the downstream physical movement of goods through the supply chain.

marketing channel

Indigo Blue Inc. is a distributor of equipment, component parts, and supplies in the United States. It has an ownership title to all its products. These products are stocked in both national and regional warehouses to guarantee product availability and quick service to the many manufacturers who are its customers. Based on this information, Indigo Blue Inc. is an example of a(n)__________.

merchant wholesaler

__________occurs when a firm refuses to meet specific obligations or fails to change when new situations arise.

passive opportunism

Roubov Inc. is a chain of American department stores that sells clothing, furniture, home appliances, and toys. It buys its goods in large quantities directly from a manufacturer. Based on this information, Roubov Inc. most likely makes use of a(n)__________.

retailer channel

A__________channel enables a consumer to return a product when it reaches the end of its useful life.

reverse