Marketing Channels Exam 1

Ten manufacturers of wallpaper all sell through one wholesaler to five retailers. The number of contacts needed for all of the manufacturers to contact all of the retailers is: 1. 2 2. 16 3. 6 4. 50 5. 15

15

In general, basic decisions in channel strategy usually __________ operating decisions in logistics management. 1. follow 2. precede 3. occur simultaneously with 4. are less important than 5. are more important than

Precede

The federal act that specifically prohibits price discrimination in most cases is: 1. Sherman Act 2. Clayton Act 3. Celler-Kefauver Act 4. Robinson-Patman Act 5. Patman-Morgan Act

Robinson-Patman Act

A multi-channel strategy means: 1. a firm uses multiple promotional strategies to reach customers. 2. a firm advertises its products or services on many television stations. 3. numerous intraorganizational activities are used to provide products and services to customers. 4. a product has many features that are desired by customers. 5. a company reaches its customers through more than one channel.

a company reaches its customers through more than one channel.

The channel manager must analyze the external environment in terms of its impact on: 1. target markets. 2. facilitating agencies. 3. intermediaries. 4. all channel participants. 5. retailers and brokers.

all channel participants.

In recent years, trends in wholesaling are showing a tendency towards: 1. consolidation 2. a decrease in average size. 3. becoming more like retailers than wholesalers. 4. operating only in cyberspace. 5. an increase in profitability.

consolidation

As consumer spending slows down in recessionary periods, marketing channels for __________ usually feel the impact earliest. 1. consumer packaged goods 2. consumer durable goods 3. health services 4. tobacco and alcohol products 5. none of the above

consumer durable goods

Competition between Kmart and Wal-Mart is an example of: 1. horizontal competition. 2. intertype competition. 3. vertical competition. 4. channel system competition. 5. horizontal-vertical competition.

horizontal competition

Intermediaries cost curves of distribution tend to be ____________ than those of manufacturers. 1. higher than 2. lower than 3. the same as 4. longer than 5. shorter than

lower than

The U.S. population is expected to become ________ by the year 2050. 1. less ethnically diverse 2. more ethnically diverse 3. mostly immigrants 4. ethnically stable 5. more homogeneous

more ethnically diverse

Channel members are classified as: 1. buyers and sellers. 2. buyers, sellers and facilitators. 3. consumer and industrial markets. 4. producers and manufacturers; intermediaries; and final users. 5. contractual organizations and non-contractual organizations.

producers and manufacturers; intermediaries; and final users.

A well-designed and managed marketing channel 1. will be able to eliminate conflict among channel members 2. will have mechanisms for detecting and dealing with channel conflict 3. will have contracts among channel members that prevent conflict before it arises 4. will have to deal with conflict on an ad-hoc basis as nothing else can be done. 5. will only have conflict of the type that does not impact channel efficiency

will have mechanisms for detecting and dealing with channel conflict

Merchant wholesalers perform which of the following functions 1. processing orders 2. providing market coverage 3. holding inventory 4. both A) and C) 5. All of the above

All of the above

refers to the wholesaler's ability to bring together an assortment of products from a variety of manufacturers. 1. Breaking bulk 2. Technical support 3. Order processing 4. Assortment convenience 5. Product line analysis

Assortment convenience

Clayton Tennis Equipment, a manufacturer, cannot perform distribution tasks efficiently so it uses Jackson Sports Equipment as a wholesaler to distribute its products in the Midwest. Clayton likely is less efficient than Jackson in performing distribution tasks because: 1. Jackson is better positioned to select and use facilitating agencies. 2. Clayton's fixed costs are too high. 3. Jackson can amortize (spread) its fixed costs across products from multiple manufacturers. 4. Clayton's marginal revenue exceeds its marginal costs. 5. Clayton has low average production costs.

Jackson can amortize (spread) its fixed costs across products from multiple manufacturers.

_________ is defined as when a channel member exerts control or influence over the behavior of another channel member. 1. Aggressiveness 2. Opposition 3. Marketing channel power 4. Leadership 5. Charisma

Marketing channel power

The large number of people in the United States exposed to higher education is likely to result in: 1. a broader range of tastes 2. more knowledgeable and more demanding consumers 3. more demands for services 4. all of the above 5. none of the above

all of the above

Which of the following generalizations about conflict is not true? 1. conflict is an inevitable behavioral problem in any channel 2. conflict is a pervasive phenomenon in channels 3. conflict resolution mechanisms are necessary for effective channel management 4. conflict may have positive, negative, or no effect on channel efficiency 5. all of the above are true

all of the above are true

Retailers like to sell their own brands because 1. gross margins are higher. 2. they like to control their own destiny. 3. competitive comparisons are more difficult. 4. they are exclusive to the retailer. 5. all of the above.

all of the above.

Distribution tasks that were formerly the province of the wholesaler or manufacturer have increasingly 1. been shifted to facilitating agencies 2. been shifted to smaller wholesalers 3. been neglected by manufacturers and wholesalers 4. been taken over by large retailers 5. none of the above

been taken over by large retailers

Agents and brokers: 1. do not take title to goods 2. are not considered members of the channel 3. do become involved in negotiatory functions 4. both 1) and 3) are correct 5. all of the above are correct

both 1) and 3) are correct

Stores that dominate a particular line of merchandise and have large shares of the market are often referred to as: 1. diversified retailers. 2. specialty retailers. 3. category killers 4. department stores. 5. mass merchandisers.

category killers

SEA Publishing and Kate's Bookstores are embroiled in conflict over who should be responsible to establish retail prices. The conflict is likely the result of: 1. communication difficulty 2. decision domain disagreements 3. goal incompatibility 4. perceptual differences 5. role incongruencies

decision domain disagreements

All of the following are reasons for retailers gaining power in the marketing channels except: 1. growing size of retailers. 2. use of advanced technology. 3. increased expertise of managers. 4. increased use of marketing concepts. 5. decrease in economic growth.

decrease in economic growth.

K&B Products, a producer of perfumes prohibits its intermediaries from selling competitive perfume products. K&B is engaged in 1. selective distribution 2. full-line forcing 3. exclusive dealing 4. refusal to deal 5. pushing

exclusive dealing

Many manufacturers will listen to retailers' product demands because retailers are knowledgeable about consumer needs. Such retailers are in a good position to empahisize the use of: 1. reward power 2. expert power 3. coercive power 4. referent power 5. legitimate power

expert power

The fundamental determinant of whether a firm is a member of a marketing channel is: 1. if the firm performs distribution tasks. 2. if the firm is considered to be important to the channel manager. 3. if the firm performs negotiatory functions. 4. if the firm performs tasks necessary to make products or services available to ultimate buyers. 5. none of these.

if the firm performs negotiatory functions.

To deal with recession, channel managers may want to do all of the following except: 1. take responsibility to help intermediaries weather the situation. 2. have contingency plans that they are prepared to implement when bad economic conditions warrant. 3. increase spending on advertising. 4. use special trade promotions. 5. increase production and inventory.

increase production and inventory.

Management of the marketing channel frequently involves all of the following except: 1. interorganizational management. 2. the setting of distribution objectives. 3. operating the channel. 4. intraorganizational management. 5. negotiatory functions such as buying and selling

intraorganizational management.

All of the following are advantages of using arbitration for resolving channel conflict except: 1. it lessens secrecy. 2. it is less expensive than litigation. 3. it confronts problems in their incipient stages. 4. it is relatively fast. 5. it often involves industry experts.

it lessens secrecy.

Franchisors have the right to tell franchisees how to market products because the right is specified in the franchise contract. In this case, franchisors can often emphasize the use of: 1. referent power. 2. reward power. 3. legitimate power. 4. coercive power.

legitimate power.

Increased conflict between Amazon.com and its suppliers (book publishers) will most likely arise when Amazon: 1. increases its product line breadth. 2. increases its listing fees. 3. allows more banner ads on its Web site. 4. makes greater efforts to sells used books instead of new books. 5. improves its profit margins.

makes greater efforts to sells used books instead of new books.

Which of the following was not mentioned as a factor that has caused an increase in emphasis to marketing channel strategy? 1. the decreasing importance of marketing channels 2. Whic growing power of distributors 3. need to reduce distribution costs 4. Whic difficulty of gaining sustainable competitive advantage 5. increasing role of technology

the decreasing importance of marketing channels

The marketing channel may be defined as A. the intraorganizational system for moving goods and services to their markets. B. the external contactual organization that management operates to achieve its distribution objectives. C. the path taken by goods or services as they flow from producer to final user. D. all firms outside of the organization that are involved in performing marketing functions. E. the infrastructure used to move goods from manufacturer to retailer.

the external contactual organization that management operates to achieve its distribution objectives.

When the value of the U.S. dollar is high: 1. the prices of U.S. products decrease relative to foreign products. 2. the price of foreign (imported) products decrease relative to US products. 3. it takes fewer foreign dollars to buy U.S. products. 4. U.S. products become more competitive in foreign markets. 5. it takes more U.S. dollars to buy foreign products.

the price of foreign (imported) products decrease relative to US products.

With regards to coercive power, available evidence suggests that 1. coercive power should be used to force channel members to stay within designated territories 2. coercive power should be the first type of power used to obtain channel member cooperation 3. the use of coercive power is likely to lead to increased channel conflict 4. the use of coercive power is likely to increase the stability and viability of the channel 5. none of the above

the use of coercive power is likely to lead to increased channel conflict

In a recession intermediaries at greatest risk if: 1. they cannot sell their heavy inventories 2. they do not reduce prices to final consumers 3. they do not increase promotional spending 4. they do not expand their product lines 5. none of the above

they cannot sell their heavy inventories