Chapter 12

________ occurs when channel members experience disagreements and their relationship becomes strained.

Channel conflict

________ means the shortening or collapsing of marketing channels due to the elimination of one or more intermediaries, which is common in the electronic channel.

Disintermediation

Customers, both end users and those within a channel, are often considered by organizations as unimportant members of the value network.

False

Disintermediation is common in the machining channel.

False

________ is one of the most commonly provided channel intermediary activities.

Storage

Many firms are using outsourcing or third-party logistics to better focus on their core business.

True

The value chain portrays a mixture of primary and support activities utilized by an organization to design, produce, market, deliver, and support its products.

True

With a push strategy, much of the intensive promotional activities take place from the manufacturer downward through the channel of distribution.

True

In a(n) ________ vertical marketing system, one channel member may be placed in a position of channel control.

administered

It is possible that a(n) ________ vertical marketing system can be more formally structured through strategic alliances and partnership agreements among channel members that agree to work in mutual cooperation. An example of this is the relationship between Walmart and Procter & Gamble.

administered

In an administered vertical marketing system, the sheer size and power of one of the intermediaries places it in a position of control. The lead player in such situations may be referred to as the ________.

channel captain

When a supplier creates a restrictive agreement that prohibits intermediaries that handle its product from selling competing firms' products, ________ has occurred.

exclusive dealing

Financing, market research, risk-taking, and other services are considered to be ________ functions.

facilitating

In the context of the distribution channel, which of the following takes title to a product?

merchant intermediaries

When a channel member is respected, admired, or revered based on one or more attributes, that member enjoys ________ power within the channel.

referent

Local Farmers of Tampa Bay sell their produce in the market every day. They band together to gain cost and operating economies of scale in the market for selling their produce. This is an example of a ________.

retailer cooperative

The motivating force for suppliers to work with large chain stores is that the stores can offer huge ________ power in the form of writing big orders.

reward

In deciding on the right balance between control and flexibility in a channel, marketing managers must consider ________.

the type of products involved

E-commerce is not generally a central part of most firms' marketing strategies.

False

In an ideal supply chain, materials of all kinds are handled as many times as possible.

False

Intensive distribution is typically associated with low-cost ________.

convenience goods

A ________ is the highest-potential start-up and growth mechanism for small-business owners, and it is an effective way to expand a distribution channel quickly and efficiently.

franchise operation

Jenn, a production manager at a company, has decided to take a value network approach to create a competitive advantage over the company's competitors. In the context of network organizations, this approach will make the company's operations more ________.

nimble

Channel members add their value by bridging gaps in form, time, place, and ownership that naturally exist between ________.

producers and consumers