multiple ques data bank general

Chapter 15:

Designing and Managing Integrated Marketing Channels

GENERAL CONCEPT QUESTIONS

Multiple Choice

1. Intermediaries who buy, take title to, and resell the merchandise are called ________.

a. retailers

b. facilitators

c. marketers

d. agents

e. merchants

2. Companies that search for customers and may negotiate on the producer’s behalf but do not take title to the goods are called ________.

a. marketers

b. merchants

c. facilitators

d. agents

e. none of the above

3. Transportation companies, independent warehouses, banks, and advertising agencies that assist in the distribution process but neither take title to goods nor negotiate purchases or sales are called ________.

a. marketers

b. facilitators

c. agents

d. merchants

e. none of the above

4. One of the chief roles of marketing channels is to convert potential buyers into profitable ________.

a. sales

b. marketers

c. customers

d. orders

e. consumers

5. A marketing channel system is the particular set of ________ employed by a firm. Decisions about the marketing channel system are among the most critical facing a firm.

a. marketing channels

b. distribution/warehouse channels

c. finance channels

d. management channels

e. advertising channels

6. A ________ strategy involves the manufacturer using its sales force and trade promotion money to induce intermediaries to carry, promote, and sell the product to end users.

a. push

b. pull

c. promote

d. provide

e. none of the above

7. A ________ strategy creates consumer demand through promotions and advertising as a way to induce intermediaries to carry the product.

a. push

b. pull

c. promote

d. provide

e. none of the above

8. Today customers expect channel integration to work smoothly. Which of the following is NOT one of the characteristics of channel integration?

a. The ability to order the product online and pick it up at a retail location

b. The ability to return an online purchase at the retail location

c. The right to receive discounts based on total online and off-line purchases

d. Offering gift certificates that can be redeemed online and off-line

e. None of the above are characteristics of channel integration

9. Generally speaking, buyers fall into four categories. Which of the following is NOT one of these categories?

a. Habitual shoppers

b. High-value deal seekers

c. Low-involvement shoppers

d. Variety-loving shoppers

e. High-involvement shoppc

10. Shoppers who primarily seek stores that suit people like themselves or members of groups they aspire to join are known as ________.

a. price/value customers

b. affinity customers

c. service/quality customers

d. variety-loving shoppers

e. high-value deal seekers

11. A supply chain view of a firm sees markets as destination points and amounts to a linear view of the flow. The company should first think of the target market and then design the supply chain backward from that point. This view is called ________.

a. value network

b. demand chain planning

c. demand retail planning

d. customer planning

e. none of the above

12. A value network includes a firm’s suppliers and its suppliers’ suppliers, and its immediate customers and their end ________.

a. retailers

b. marketers

c. shoppers

d. customers

e. procedures

13. Through their contacts, experience, specialization, and scale of operation, intermediaries help firms _______ in making goods widely available.

a. achieve superior products

b. achieve superior use of technology

c. achieve superior efficiency

d. achieve superior contacts

e. achieve superior distribution channels

14. A marketing channel overcomes the time, place, and ________ gaps that separate goods and services from those who need or want them.

a. possession

b. retail

c. consumers

d. policies

e. buyers

Physical functions, title functions, and promotional functions are example of ________ flow of activity from the company to the customer.

f. lateral

g. forward

h. backward

i. sidewise

j. none of the above

15. The question regarding the various channel functions is not whether or not they need to be performed but who is to perform them. All channel functions have three things in common. Which of the following is NOT one of these channel functions?

a. They use up scarce resources.

b. They can often be performed better through specialization.

c. They can be shifted among channel members.

d. They require substantial investments by the producer.

e. None of the above

16. A ________ channel consists of a manufacturer selling directly to the final customer.

a. three-level

b. two-level

c. zero-level

d. multiple-level

e. one-level

17. Designing a marketing channel system involves analyzing customer needs, ________, identifying major channel alternatives, and evaluating major channel alternatives.

a. establishing channel partners

b. establishing channel costs

c. establishing channel members

d. establishing channel budgets

e. establishing channel objectives

18. In designing the marketing channel, the marketer must understand the service output levels desired by the target customers. Channels produce five service outputs. Which of the following is NOT one of these outputs?

a. Product variety

b. “Entertainment shopping experience”

c. Spatial convenience

d. Waiting and delivery time

e. Lot size

19. Channel objectives should be stated in terms of ________ service output levels.

a. efficient

b. budgeted

c. targeted

d. affordable

e. none of the above

20. A channel alternative is described by three elements: the types of available business intermediaries, the number of intermediaries needed, and the ________.

a. area of expertise of each channel member

b. terms and responsibilities of each channel member

c. quality of the channel member organization

d. size of each channel member

e. depth of commitment of each channel member

21. Companies deciding on the number of intermediaries to use at each channel level have three strategies available to them. They can use exclusive distribution, ________ distribution, and intensive distribution.

a. selective

b. extensive

c. self-selecting

d. competitive

e. collective

22. When the producer wants to maintain control over the service level and outputs offered by the resellers, it most likely will use ________ distribution.

a. competitive

b. extensive

c. intensive

d. exclusive

e. selective

23. By granting ________, the producer hopes to obtain more dedicated and knowledgeable selling.

a. selective distribution

b. intensive distribution

c. extensive distribution

d. random distribution

e. exclusive distribution

24. With ________, the company does not need to worry about too many outlets; it can gain adequate market coverage with more control and less cost that intensive distribution.

a. selective distributio

b. normal distribution

c. extensive distribution

d. random distribution

e. exclusive distribution

25. Manufacturers are constantly tempted to move from exclusive or selective distribution to more intensive distribution in order to ________.

a. increase coverage and sales

b. decrease coverage and sales

c. enter the market

d. leave the market

e. none of the above

26. ________ distribution consists of the manufacturer placing his goods and services in as many outlets as possible.

a. Selective

b. Exclusive

c. Intensive

d. “Shotgun”

e. Scattered

27. The main elements in the “trade-relations mix” are price policies, conditions of sale, ________, and specific services to be performed by each party.

a. competitive policies

b. distribution policies

c. service policies

d. credit policies

e. territorial rights

28. Each channel alternative needs to be evaluated against ________, control, and adaptive criteria.

a. economic

b. manufacturing

c. delivery

d. financial

e. timing issues

29. One of the control issues of using a sales agency as a channel partner is that the sales agency is an independent firm seeking to ________.

a. find new customers

b. increase sales

c. lower its costs and profits

d. maximize profits

e. none of the above

30. After a company has chosen a channel alternative, individual intermediaries must be ________, trained, motivated, and evaluated.

a. selected

b. researched

c. compensated

d. induced

e. none of the above

31. It is important for the company to select its channel members carefully because to the customers, the channels _________ the company.

a. are independent entrepreneurs of

b. distance themselves from

c. are not

d. are

e. look like

32. ________ can be defined as the ability to alter channel members’ behavior so that they take actions they would not have taken otherwise.

a. Marketing

b. Superior products

c. Channel power

d. Channel relationships

e. Channel concerns

33. The five types of power available to the producer to elicit cooperation from channel members includes all of the following EXCEPT ________ power.

a. expert

b. position

c. coercive

d. referent

e. reward

34. In competitive markets with low entry barriers, the optimal channel structure will inevitably ________ over time.

a. become cumbersome

b. harden

c. stay the same

d. increase

e. change

35. Regarding distribution systems, one of the most difficult decision that a firm must make at some time involves ________ the channel strategy.

a. discontinuing

b. revising

c. decreasing members of

d. increasing members of

e. scrapping

36. A conventional marketing channel comprises a(n) ________, wholesaler(s), and retailer(s), each acting in his own self-interest.

a. broker

b. manufacturing agent

c. manufacturing representative

d. merchant wholesaler

e. independent producer

37. A(n) ________ comprises the producer, wholesaler(s), and retailers(s) acting as a unified system.

a. corporate VMS

b. distributor relationship

c. vertical marketing system

d. distribution system

e. administered system

:

38. A(n) ________ consists of independent firms at different levels of production and distribution integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone.

a. contractual VMS

b. distributor VMS

c. administered VMS

d. vertical marketing system

e. none of the above

39. Which of the following is a type of contractual VMS?

a. Specialty stores

b. Franchise organizations

c. Kiosks stores

d. Catalog stores

e. None of the above

40. When two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity, it is called a ________.

a. coop marketing system

b. horizontal marketing system

c. financial marketing system

d. vertical marketing system

e. cross-marketing system

41. ________ occurs when a single firm uses two or more marketing channels to reach one or more customer segments.

a. Multichannel marketing

b. Multimarket marketing

c. Diversified marketing

d. Integrated marketing

e. None of the above

42. By adding more channels, companies can gain three important benefits. First, they can increase their market coverage; second, they can lower channel costs; and third, they can provide ________.

a. effective dollar costs/sale

b. increased exposure

c. increased volume of potential customers

d. increased volume of sales

e. more customized selling

43. ________ is generated when one channel member’s actions prevent another channel from achieving its goal.

a. Channel power

b. Channel conflict

c. Channel coordination

d. Channel advertisement

e. None of the above

44. ________ involves conflict between members at the same level within the channel.

a. Vertical channel conflict

b. Circular channel conflict

c. Multichannel conflict

d. Horizontal channel conflict

e. None of the above

45. ________ means conflict between different levels within the same channel.

a. Vertical channel conflict

b. Circular channel conflict

c. Multichannel conflict

d. Horizontal channel conflict

e. None of the above

46. ________ exists when the manufacturer has established two or more channels that sell to the same market.

a. Vertical channel conflict

b. Circular channel conflict

c. Multichannel conflict

d. Horizontal channel conflict

e. None of the above

47. ________ occurs when channel members are brought together to advance the goals of the channel, as opposed to their own potentially incompatible goals.

a. Channel coordination

b. Channel cooperation

c. Channel conflict

d. Channel advertisement

e. None of the above

48. Causes of channel conflict include all of the following, EXCEPT________.

a. goal incompatibility

b. differences in perception

c. dependency

d. unclear goals and rights

e. channel power usage

49. There are several mechanisms for effective channel conflict management. These include the following, EXCEPT ________.

a. frequent vendor switching

b. superordinate goals

c. co-optation

d. diplomacy

e. mediation

50. ________ is an effort by one organization to win the support of the leaders of another organization by including them in advisory councils, board of directors, and the like.

a. Co-optation

b. Diplomacy

c. Superordinate goals

d. Mediation

e. Arbitration

51. ________ means resorting to a neutral third party who is skilled in conciliating the two parties’ interests.

a. Co-optation

b. Negotiation

c. Mediation

d. Arbitration

e. Diplomacy

52. Producers of strong brands sometimes sell them to dealers only if the dealers will take some or all of the rest of the line. This practice is called full-line forcing or ________.

a. EDLPs

b. laddering

c. tying agreements

d. reciprocal agreements

e. trade-offs

53. ________ describes the use of electronic means and platforms to conduct a company’s business.

a. E-business

b. E-commerce

c. E-purchasing

d. E-marketing

e. None of the above