Chapter 10
e) vertical marketing system
1. 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
d) value delivery network
1. 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
a) disintermediation
1. 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
e) the company Web site
1. 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
c) intensive
1. Producers of convenience products typically use ______ distribution. a) franchise b) direct c) intensive d) selective e) exclusive
d) horizontal marketing system
1. 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
d) value delivery network
1. 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
a) channel level
1. 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
b) exclusive dealing
1. 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
b) disintermediation
1. 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
b) a direct marketing channel
1. 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
a) Administered VMS
1. 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
b) multichannel distribution system
1. 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
b) disintermediation
1. 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
b) corporate vertical
1. 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
e) corporate VMS
1. 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
c) the number of intermediary levels
1. 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
e) A franchise
1. 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
b) targeted levels of customer service
1. 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
d) Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
1. 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.
c) A Ford dealer complaining that another Ford dealer is advertising in its territory.
1. 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) It strives to make products available where and when consumers want them.
1. 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.