Chapter 12 Quiz

________ means the shortening or collapsing of marketing channels due to the elimination of one or more intermediaries, which is common in the electronic channel. Creating assortments Disintermediation Channel integration Outsourcing Reducing transactions

Disintermediation

Each intermediary in the channel of distribution ______ is considered a wholesaler reduces costs for the ultimate consumer complicates the buying process for the consumer adds value in terms of the functions it performs

adds value in terms of the functions it performs

A soft drink company has been working with the same trucking company for ten years. Recently, their relationship has become strained as their contract comes up for renewal. The soft drink company wants to renew the contract with similar terms, while the trucking company wants to renegotiate rates to take into account rising gas prices. This is an example of outsourcing. disintermediation. vertical integration. channel conflict. stock-out.

channel conflict.

Power that involves an explicit or implicit threat that a channel captain will invoke negative consequences on a channel member if it does not comply with the leader's request or expectations is called ______. legitimate power referent power reward power expert power coercive power

coercive power

A(n) _____ channel allows ultimate consumers to deal with producers instead of intermediaries for purchases. exclusive primary direct indirect

direct

Logistics that starts with sourcing materials and knowledge inputs from external suppliers and goes to the point at which production begins is called ______ logistics. outbound pull push Inbound

inbound

Which of the following is NOT a major type of intermediary? agent retailer wholesaler middleman producer

producer

A contractual vertical marketing system is one in which ______. channel members are controlled through the power of a dominant channel partner relationships among channel members are governed by contracts channel members each pursue their own objectives independently all channel members are part of the same corporation

relationships among channel members are governed by contracts

A food wholesaler purchases different fruits from local farmers and then sells them to local restaurants and retailers. If the fruits spoil before the wholesaler sells them, it takes the loss. As an intermediary, the wholesaler is performing the function of _____, risk-taking. financing. sorting. channeling. market research.

risk-taking.

As part of a push strategy, a _____ is when a manufacturer pays wholesalers or retailers an extra incentive to get them to place their products into inventory. channel incentive merchant incentive slotting allowance push allowance

slotting allowance