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  lOMoAR cPSD| 60692662
CHAPTER 7: MARKETING CHANNEL STRATEGIES 
1) Producing a product or service and making it available to buyers requires building 
relationships not only with customers but also with key suppliers and resellers in the company's  ________.  A) upstream partnerships  B) marketing channels v  C) inventory providers  D) supply chain  E) downstream partnerships  Answer: D 
2) The sets of firms that supply companies with the raw materials, components, parts, 
information, finances, and expertise needed to create products or services are known as  ________.  A) retailers  B) upstream partners  C) distributors  D) downstream partners  E) distribution channels  Answer: B 
3) Which of the following terms refers to the wholesalers and retailers that form a vital link 
between the firm and its customers?  A) factory-supply networks  B) downstream partners  C) resource banks  D) upstream partners  E) supply channels  Answer: B 
4) The term supply chain is considered limited because it ________.  
A) ignores the make-and-sell aspect of the market    lOMoAR cPSD| 60692662
B) suggests that planning begins with raw materials and factory capacity 
C) takes a step-by-step, linear view of purchase-production-consumption activities 
D) takes a sense-and-respond view of the market 
E) suggests that planning starts with identifying the needs of target customers  Answer: B 
8) ________ play an important role in matching supply and demand by providing consumers 
with a broad assortment of products in small quantities.  A) Virtual banks  B) Intermediaries  C) Price consultants  D) Uniform-delivery networks  E) Upstream partners  Answer: B 
10) A ________ is a set of interdependent organizations that help make a product or service 
available for use or consumption by the consumer or business user.  A) product line  B) product delivery network 
C) marketing channel (kênh phân phối)  D) consumer base  E) resource bank  Answer: C 
13) ________ play an important role in efficiently making products available to target markets in 
the needed varieties and quantities.  A) Virtual banks  B) Intermediaries  C) Price consultants  D) Uniform-delivery networks  E) Upstream partners    lOMoAR cPSD| 60692662 Answer: B 
1) ________ includes all the activities involved in selling products or services  directly to final consumers 
 for their personal, nonbusiness use.  A) Franchising  B) Retailing  C) Brokering  D) Wholesaling  E) Disintermediation  Answer: B 
1) ________ includes all the activities involved in selling products or services to those buying for  resale or business use  B) Retailing  C) Brokering  D) Wholesaling  E) Disintermediation  Answer: D 
15) A ________ is a layer of intermediaries that performs some work in 
bringing the product and its ownership closer to the final buyer.  A) product platform  B) channel level  C) resource bank  D) contact center  E) customer franchise  Answer: B  16) In a(n) ________ channel,  the same member  both produces and 
distributes a product or service to consumers.  A) tiered  B) direct    lOMoAR cPSD| 60692662 C) platform  D) vertical  E) exclusive  Answer: B 
18) At its most basic form, a marketing channel consists of the producer and the ________.  A) retailer  B) sales agent  C) competitor  D) processor  E) consumer  Answer: E 
19) A marketing channel that consists of one or more intermediaries is known as a(n) ________  marketing channel.  A) cyclic  B) upstream  C) looped  D) direct  E) indirect  Answer: E 
20) Plasticine Palace supplies its products exclusively to Arts & Crafts, a chain of stationery 
stores across the country. The chain then makes the plasticine available to end consumers. This  is an example of ________.  A) a direct marketing channel  B) intensive distribution 
C) an indirect marketing channel  D) disintermediation  E) extensive distribution  Answer: C    lOMoAR cPSD| 60692662
42) Conflict that occurs among firms at the same level of the marketing channel is known as  ________ conflict.  A) multitiered  B) horizontal  C) vertical  D) prolonged  E) financial  Answer: B 
43) Conflict that occurs between different levels of the same marketing channel is known as  ________ conflict.  A) horizontal  B) vertical  C) multitiered  D) equilateral  E) communal  Answer: B 
45) The management of two Panizza restaurants has an ongoing disagreement over the discount 
rate given to students from the local high school. This is an example of ________ conflict.  A) intensive  B) selective  C) exclusive  D) horizontal  E) vertical  Answer: D 
48) A(n) ________ consists of one or more independent producers, wholesalers, and 
retailers, each seeking to maximize its own profits, sometimes even at the expense of the  system as a whole.  A) multitiered supply chain  B) conventional  distribution channel    lOMoAR cPSD| 60692662 C) intrinsic market matrix  D) resource bank  E) product platform  Answer: B 
49) Which of the following is true of conventional distribution channels? A) Channel 
members have complete control over each other.  B) Channel members  seek to maximize  their own profits. 
C) Channel conflict is governed by formal mechanisms. 
D) Channel members are assigned roles according to a clearly defined framework. 
E) Channel members work exclusively for the good of the organization.  Answer: B 
50) A(n) ________ marketing system consists of producers, wholesalers, and retailers acting as a  unified system.  A) horizontal  B) communal  C) multitiered  D) vertical  E) equilateral  Answer: D 
51) Which of the following is true of vertical marketing systems? 
A) Producers, wholesalers, and retailers act as a  unified system  . 
B) Channel members have no control over each other. 
C) Channel conflict is governed by informal mechanisms. 
D) The system is dominated by the consumer. 
E) Channel members work independently with no cooperation from other members.  Answer: A 
52) Which of the following is a major type of vertical marketing system?    lOMoAR cPSD| 60692662 A) corporate   B) conventional  C) multilevel  D) intrinsic  E) extrinsic  Answer: A 
53) A ________ VMS integrates successive stages of production and 
distribution under single ownership.  A) contractual  B) contingency  C) corporate  D) conventional  E) communal  Answer: C 
54) A ________ VMS consists of independent firms at different levels of production and 
distribution who join together through formal agreements to obtain more economies or sales 
impact than each could achieve alone.  A) corporate  B) contingency  C) contractual  D) communal  E) conventional  Answer: C 
55) The ________ organization is the most common type of contractual relationship.  A) franchise  B) horizontal  C) conventional  D) multi-national    lOMoAR cPSD| 60692662 E) entrepreneurial  Answer: A 
58) In a(n) ________, leadership is assumed not through common ownership or contractual ties 
but through the size and power of one or a few dominant channel members. 
A) horizontal marketing system  B) administered VMS  C) corporate VMS  D) contractual VMS  E) conventional VMS  Answer: B 
59) ________ VMS is a vertical marketing system that coordinates successive stages of 
production and distribution through the size and power of one of the parties.  A) Contingent  B) Aligned  C) Corporate  D) Contractual  E) Administered  Answer: E 
60) In a(n) ________, two or more companies at one level join together to 
follow a new marketing opportunity. 
A) administered vertical marketing system 
B) horizontal marketing system 
C) corporate vertical marketing system  D) hybrid distribution system 
E) conventional marketing system  Answer: B 
62) When McDonald's offers its products inside of a Walmart store, it is using a(n) ________. 
A) conventional marketing system    lOMoAR cPSD| 60692662 B) corporate VMS  C) contractual VMS  D) administered VMS 
E) horizontal marketing system  Answer: E 
3) A(n) ________ system involves a single firm setting up two or more marketing channels to 
reach one or more customer segments.  A) conventional distribution 
B) corporate vertical marketing  C) horizontal marketing 
D) administered vertical marketing  E) multichannel distribution  Answer: E 
4) Atlas Imports and Exports sells products directly to consumers via the Atlas Web site, and 
through local retailers as well. Which of the following is evident here? 
A) corporate vertical marketing system 
B) horizontal marketing system 
C) multichannel distribution system 
D) administered vertical marketing system 
E) conventional distribution channel  Answer: C 
66) Which of the following is an advantage of adding new channels in a 
multichannel distribution system? A) limiting market complexity 
B) reducing control over the system 
C) expanding sales and market coverage 
D) decreasing marketing needs and costs 
E) minimizing mass customization of products    lOMoAR cPSD| 60692662 Answer: C 
68) ________ occurs when 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) Extensive distribution  B) Multichannelization  C) Disintermediation   D) Inclusive distribution  E) Cross merchandising  Answer: C 
88) Which of the following should be a manufacturer's first step when designing an effective  marketing channel?  A) set channel objectives  B) analyze consumer needs 
C) identify channel alternatives 
D) evaluate channel alternatives 
E) establish strategic alliances  Answer: B 
89) Which of the following is NOT a step in designing an effective marketing channel? 
A) evaluating the channel alternatives 
B) identifying major channel alternatives  C) analyzing consumer needs 
D) determining pricing policy for channel members  E) setting channel objectives  Answer: D 
97) For which product would a company use an exclusive distribution strategy?  A) luxury cars  B) newspapers    lOMoAR cPSD| 60692662 C) chewing gum  D) dairy products  E) soft drinks  Answer: A 
99) ________ distribution involves the use of more than one but fewer than all of the 
intermediaries who are willing to carry a company's products.  A) Exclusive  B) Selective  C) Intensive  D) Indirect  E) Corporate  Answer: B 
100) Craftsman Furniture Company offers its bedroom and living room furniture through 
independent and smaller chain furniture stores, not through every store that sells furniture. It  uses ________ distribution.  A) intensive  B) direct  C) corporate  D) selective  E) exclusive  Answer: D 
115) ________ management calls for selecting, managing, and motivating individual channel 
members and evaluating their performance over time.  A) Inventory  B) Marketing channel  C) Brand image  D) Customer experience  E) Brand content    lOMoAR cPSD| 60692662 Answer: B 
116) To help recruit, train, organize, manage, motivate, and evaluate relationships with channel 
partners, companies are now installing integrated high-tech ________ systems. 
A) advertiser-funded programming 
B) customer segmentation network  C) brand content management 
D) partnership relationship management  E) closed loop marketing  Answer: D