14 Aug Chapter 15: Designing and Managing Integrated Marketing Channels GENERAL CONC

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 producers 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 firms 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
members 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 companys business.
a. E-business
b. E-commerce
c. E-purchasing
d. E-marketing
e. None of the above
Chapter 15: Designing and Managing Integrated
Marketing ChannelsGENERAL
CONCEPT QUESTIONSMultiple
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 producers behalf but do not take title to the goods are
called ________. a. marketers b. merchantsc. facilitators d. agentse. 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. marketersb. facilitatorsc. agentsd. merchantse. none of the above4. One of the chief roles of marketing
channels is to convert potential buyers into profitable ________. a. sales b. marketers c. customersd. orderse. 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 channelsb. distribution/warehouse channelsc. finance channelsd. management channelse. advertising channels6. 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. pullc. promoted. 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. pushb. pullc. promoted. providee. 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-linee. None of the above are characteristics of
channel integration9. Generally speaking, buyers fall into four
categories. Which of the following is NOT
one of these categories?a. Habitual shoppersb. High-value deal seekersc. Low-involvement shoppersd. Variety-loving shopperse. 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 customersb. affinity customersc. service/quality customersd. variety-loving shopperse. high-value deal seekers11. 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 planninge. none of the above 12. A value network includes a firms suppliers
and its suppliers suppliers, and its immediate customers and their end
________. a. retailers b. marketersc. 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 efficiencyd. achieve superior contactse. achieve superior distribution channels14. A marketing channel overcomes the time,
place, and ________ gaps that separate goods and services from those who need
or want them. a. possessionb. retailc. consumersd. policies e. buyersf. lateral g. forwardh. backwardi.
sidewisej.
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-levelc. zero-level d. multiple-levele. 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 costsc. establishing channel membersd. establishing channel budgetse. 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 timee. Lot size 19. Channel objectives should be stated in
terms of ________ service output levels.a. efficient b. budgetedc. targetedd. affordablee. none of the above20. 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 membere. 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. extensivec. self-selectingd. 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. extensivec. intensived. exclusive e. selective 23. By granting ________, the producer hopes to
obtain more dedicated and knowledgeable selling.a. selective distributionb. intensive distributionc. extensive distributiond. random distributione. exclusive distribution24. 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 distributiob. normal distributionc. extensive distributiond. random distributione. exclusive distribution25. Manufacturers are constantly tempted to
move from exclusive or selective distribution to more intensive distribution in
order to ________. a. increase coverage and salesb. decrease coverage and salesc. enter the marketd. 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. Intensived. Shotgune. Scattered27. 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 policiesb. distribution policies c. service policiesd. credit policiese. territorial rights 28. Each channel alternative needs to be
evaluated against ________, control, and adaptive criteria. a. economic b. manufacturing c. delivery d. financiale. 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 profitsd. maximize profitse. none of the above 30. After a company has chosen a channel
alternative, individual intermediaries must be ________, trained, motivated,
and evaluated. a. selectedb. researchedc. compensatedd. 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 fromc. are not d. are e. look like32. ________ can be defined as the ability to
alter channel members behavior so that they take actions they would not have
taken otherwise. a. Marketingb. Superior products c. Channel powerd. Channel relationshipse. Channel concerns33. 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. positionc. coercived. referente. reward34. In competitive markets with low entry
barriers, the optimal channel structure will inevitably ________ over time. a. become cumbersome b. hardenc. stay the samed. increasee. 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 ofd. increasing
members ofe. scrapping 36. A conventional marketing channel comprises
a(n) ________, wholesaler(s), and retailer(s), each acting in his own
self-interest.a. brokerb. manufacturing agentc. manufacturing representatived. merchant wholesalere. independent producer 37. A(n) ________ comprises the producer,
wholesaler(s), and retailers(s) acting as a unified system. a. corporate VMS b. distributor relationshipc. vertical marketing systemd. distribution systeme. 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 VMSb. distributor VMSc. administered VMSd. vertical marketing system e. none of the above 39. Which of the following is a type of
contractual VMS? a. Specialty storesb. Franchise organizationsc. Kiosks storesd. Catalog storese. None of the above40. When two or more unrelated
companies put together resources or programs to exploit an emerging marketing
opportunity, it is called a ________. a. coop marketing systemb. horizontal marketing systemc. financial marketing systemd. vertical marketing systeme. cross-marketing system41. ________ occurs when a single firm uses two
or more marketing channels to reach one or more customer segments. a. Multichannel marketing b. Multimarket marketingc. Diversified marketing d. Integrated marketing e. None of the above42. 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 customersd. increased volume of salese. more customized selling43. ________ is generated when one channel
members actions prevent another channel from achieving its goal. a. Channel power b. Channel conflictc. Channel coordination d. Channel advertisemente. None of the above 44. ________ involves conflict between members
at the same level within the channel. a. Vertical channel conflictb. Circular channel conflict c. Multichannel conflictd. Horizontal channel conflicte. None of the above 45. ________ means conflict between different
levels within the same channel. a. Vertical channel conflictb. Circular channel conflict c. Multichannel conflictd. Horizontal channel conflicte. None of the above 46. ________ exists when the manufacturer has
established two or more channels that sell to the same market. a. Vertical channel conflictb. Circular channel conflict c. Multichannel conflictd. Horizontal channel conflicte. None of the above47. ________ occurs when channel members are
brought together to advance the goals of the channel, as opposed to their own
potentially incompatible goals. a. Channel coordinationb. Channel cooperation c. Channel conflictd. 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 switchingb. superordinate goalsc. co-optationd. diplomacye. 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-optationb. Diplomacyc. Superordinate goalsd. Mediatione. Arbitration 51. ________ means resorting to a neutral third
party who is skilled in conciliating the two parties interests. a. Co-optation b. Negotiationc. Mediationd. Arbitratione. Diplomacy52. 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. EDLPsb. laddering c. tying agreements d. reciprocal agreements e. trade-offs 53. ________ describes the use of electronic
means and platforms to conduct a companys business. a. E-business b. E-commercec. E-purchasing d. E-marketing e. None of the above

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