Marketing Chapter 10
Which of the following is an example of horizontal channel conflict? a) A consumer complaining to a retailer about the service he received. b) A retailer complaining about receiving damaged goods from a wholesaler. c) A Ford dealer complaining that another Ford dealer is advertising in its territory. d) A consumer complaining to a producer about the quality of a product. E.A retailer complaining about a producer's pricing.
A ford dealer complaining that another Ford dealer is advertising in its territory
What is the most common type of a contractual VMS? a) A retailer b) A wholesaler c) A supplier d) A channel intermediary e) A franchise
A franchise
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent? a) Administered VMS b) Franchise c) Corporate VMS d) Contractual VMS e) Conventional distribution channel
Administered VMS
Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) _________. a) contractual VMS b) administered VMS c) vertical marketing system d) conventional distribution channel e) corporate VMS
Corporate VMS
Owning the entire distribution chain - from its own design and manufacturing operations to distribution through its own managed stores - has turned French sunglasses chain Air Optics into the world's fastest-growing glasses retailer. This is an example of a(n) ________ marketing system. a) contractual vertical b) corporate vertical c) administered vertical d) horizontal e) direct
Corporate vertical
In which of the following situations is a producer guaranteed full control over product sales? a) a corporate marketing channel b) a direct marketing channel c) a contractual distribution channel d) a horizontal marketing system e) an administered marketing system
Direct marketing channel
Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is toward ________ insofar as product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones. a) intermediation b) disintermediation c) vertical marketing systems d) horizontal marketing systems e) corporate vertical marketing systems
Disintermediation
Online marketers taking business from traditional brick-and-mortar retailers is an example of _____. a) vertical conflict b) disintermediation c) franchising d) an administered VMS e) horizontal conflict
Disintermediation
Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman Gray's products at their outlets. What kind of marketing strategy has Bateman Gray adopted with its car dealers? a) direct marketing b) exclusive dealing c) disintermediation d) horizontal integration e) vertical integration
Exclusive dealing
A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ________. a) corporate vertical marketing system b) contractual vertical marketing system c) direct marketing system d) horizontal marketing system e) administered vertical marketing system
Horizontal marketing system
Producers of convenience products typically use ______ distribution. a) franchise b) direct c) intensive d) selective e) exclusive
Intensive
Which of the following is true of an intensive distribution strategy? a) It strives to make products available where and when consumers want them. b) Compared with other distribution strategies, it uses the least number of intermediaries to sell products. c) Compared with other distribution strategies, it provides the best support for dealers of luxury products. d) It discards traditional intermediaries and uses direct marketing to reach customers. e) It gives sole rights to select dealers in a given area.
It strives to make products available where and when consumers want them
Which of the following is a reason that producers use marketing channels and channel intermediaries? a) Marketing channel decisions only require a short-term commitment. b) The reduced costs of using channel intermediaries offsets the inefficiencies of marketing channels. c) Using channel intermediaries increases the number of contacts with customers. d) Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers. e) Using marketing channels allows producers to retain control over how and to whom they sell their products.
Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
When setting channel objectives, companies should state the objectives in terms of ______. a) the length of the channel b) targeted levels of customer service c) exclusive distribution arrangements d) expected profitability e) competitor's objectives
Targeted levels of customer service
A firm that uses direct marketing would most likely sell its products through ________. a) one marketing intermediary b) big box retailers c) large wholesalers d) multiple intermediaries e) the company Web site
The company website
The length of a channel is indicated by ___________. a) the number of wholesalers in the channel b) the number of final consumers c) the number of intermediary levels d) the number of retailers in the channel e) the number of producers
The number of intermediary levels
A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system. a) manufacturing chain b) distribution center c) marketing intermediary d) value delivery network e) disintermediation system
Value delivery network
A(n) _______ is made up of the company, suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system. a) marketing channel b) contact c) channel level d) value delivery network e) supply chain
Value delivery network
A ________ consists of producers, wholesalers, and retailers acting as a unified system. The system can be dominated by any one of the interdependent members. a) direct marketing system b) horizontal distribution channel c) lateral marketing system d) conventional distribution channel e) vertical marketing system
Vertical marketing system
A(n)_______ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to find the final buyer. a) channel level b) supply chain c) value delivery network d) contact e) marketing channel
channel level
For over 10 years, Choppy, a publishing and educational company that produces college textbooks, has been selling its books through off-campus bookstores. Recently, it stopped selling its books through retail stores and set up its own Web site to sell its books. This change in channel organization is called ________. a) disintermediation b) intensive distribution c) brokering d) franchising e) selective distribution
disintermediation
Maddie's Sneakers, a manufacturer of fine sneakers, sells its products through its online Web site, a catalogue, and specialty boutiques that target women. Which kind of channel arrangement does Maddie's Sneakers employ to distribute its products? a) horizontal marketing system b) multichannel distribution system c) administered vertical marketing system d) contractual vertical marketing system e) corporate vertical marketing system
multichannel distribution system