marketing management ch 15 Flashcards


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1

1) ________ are sets of interdependent organizations participating in the process of making a product or service available for use or consumption.

  1. A) Marketing channels

Page Ref: 415

2

2) Which of the following entities in the marketing channel is a merchant?

  1. A) wholesalers

Page Ref: 416

3

3) A(n) ________ is a facilitator who assists in the distribution process.

  1. A) advertising agency

Page Ref: 416

4

4) A manufacturer uses the company's sales force and trade promotions to carry, promote, and sell products to end users. Which of the following strategies is this manufacturer using?

  1. C) push strategy

Page Ref: 416

5

5) Total Beverages, a maker of fruit juices and health drinks, recently launched a new brand of packaged drinking water called AquaPure. In order to induce distributors to carry the product, Total offers all its intermediaries a free refrigerator to store bottles of AquaPure. This is an example of a ________.

  1. B) push strategy

Page Ref: 416

6

6) Spike Inc. is a sportswear manufacturer that recently launched its new line of customizable running shoes. The shoes come with a digital component that allows them to adapt to the runner's biomechanics. To promote this new product, Spike launches an advertising campaign and also ropes in a famous athlete to endorse the product. This is an example of a ________.

  1. D) pull strategy

Page Ref: 416

7

7) When is a pull strategy appropriate?

  1. B) when consumers are able to perceive differences between brands

Page Ref: 416

8

8) Using the push strategy is most appropriate when ________.

  1. B) the product being sold is an impulse item

Page Ref: 416

9

9) A firm uses its sales force to sell to large accounts and outbound telemarketing to sell to medium-sized accounts. The firm is using ________ marketing.

  1. A) hybrid

Page Ref: 416

10

10) A computer manufacturing company allows customers to place orders online, which they can later pick up from a convenient retail location. Which of the following terms best represents this practice?

  1. A) channel integration

Page Ref: 417

11

11) Which of the following is the most accurate description of a value network?

  1. A) A system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings.

Page Ref: 417

12

12) Companies should first think of the target market and then design the supply chain backward from that point. This strategy is called ________.

  1. A) demand chain planning

Page Ref: 417

13

13) Which of the following channel functions constitute only a backward flow?

  1. B) placing orders with manufacturers

Page Ref: 418

14

14) Identify the channel function that constitutes both backward and forward flow.

  1. A) obtaining funds for financing

Page Ref: 418

15

15) Producers often shift some functions to intermediaries. Which of the following is the most significant benefit of doing this?

  1. D) It lowers the producer's costs and prices.

Page Ref: 419

16

) Which of the following is an example of a zero-level channel?

) A company takes online orders from customers and ships the products to them.

Page Ref: 420

17

17) Which of the following entities is present in a zero-level marketing channel?

  1. A) consumers

Page Ref: 420

18

18) A direct marketing channel is a ________.

  1. C) zero-level channel

Page Ref: 420

19

19) A jobber in a three-level marketing channel is a(n) ________.

  1. A) small-scale wholesaler

Page Ref: 421

20

20) Which of the following activities is a reverse-flow channel of marketing?

  1. B) product recycling

Page Ref: 421

21

21) Toyota has an advantage over Lexus due to the fact that there are more Toyota dealers, which helps customers save on transportation and search costs in buying and repairing an automobile. Which of the following service outputs relates to this competitive advantage?

  1. A) spatial convenience

Page Ref: 422

22

22) As a service output produced by marketing channels, product variety refers to the ________.

  1. B) assortment provided by the marketing channel

Page Ref: 423

23

23) Which of the following terms refers to the add-on services, such as credit, delivery, installation, and repairs, provided by a marketing channel?

  1. A) service backup

Page Ref: 423

24

24) Atburex is a furniture manufacturing company in the United States. The company provides a sixty day credit period and EMI options to customers and also offers on-site delivery and installation. These special benefits refer to which of the following service outputs?

  1. A) good service backup

Page Ref: 423

25

25) Which of the following types of distribution involves severely limiting the number of channel intermediaries?

  1. A) exclusive

Page Ref: 424

26

26) Which of the following allows a firm to maintain control over the service level and obtain more dedicated and knowledgeable selling?

  1. D) exclusive distribution

Page Ref: 424

27

27) Which of the following channel alternatives is most suited to handle complex products and transactions?

  1. A) sales forces

Page Ref: 424

28

28) Which of the following is a major disadvantage of using the Internet as a marketing channel?

  1. A) It is less effective for complex products.

Page Ref: 424

29

29) Armon Apparels designs, manufactures, and distributes athletic apparel and accessories for men and women. The company has only nine distributors across the United States. These distributors control a nationwide network of 600 retailers. The company does not sell its products through other channels. This is an example of ________ distribution.

  1. A) selective

Page Ref: 425

30

30) Exclusive dealing arrangements are mainly used by companies looking for an edge in markets increasingly driven by ________.

  1. A) price

Page Ref: 425

31

31) An intensive distribution strategy serves well for ________.

  1. E) newspapers

Page Ref: 425

32

32) Which of the following products is most likely to be sold using an exclusive distribution strategy?

  1. A) designer luggage

Page Ref: 425

33

33) Which of the following covers payment terms and producer guarantees?

  1. A) conditions of sale

Page Ref: 426

34

34) ________ call(s) for the producer to establish a schedule of discounts and allowances that intermediaries see as equitable and sufficient.

  1. D) Price policy

Page Ref: 426

35

35) Electrobar, a European manufacturer of industrial kitchenware, sells to industrial canteens, restaurants, hotels, and so forth. The company provides a one-year warranty on all products and also allows customers to pay in installments–they pay fifty percent on delivery and the rest as equal installments. This refers to which element in the "trade-relations mix"?

  1. B) conditions of sale

Page Ref: 426

36

36) Which of the following channels is associated with the lowest cost per transaction?

  1. A) Internet

Page Ref: 426

37

37) Which marketing channel is associated with the highest value added per sale?

  1. B) sales force

Page Ref: 426

38

38) Which of the following problems is most likely when a sales agency is used instead of company salespeople?

  1. A) The company will find it difficult to control the sales process.

Page Ref: 427

39

Use of Power (Scenario)

Broomer manufactures fashion apparel for women, men, and children. Its products are in high demand and apparel stores are more than willing to carry and sell Broomer's garments. The company recently introduced a new clothing line named "Inducer", targeted at the youth. However, the new line is not well-received by the market, and sales fail to take off even three months after its launch.

39) In an effort to boost sales, Broomer offers its retailers a higher margin for promoting and selling products from the "Inducer" line to customers. This is an example of ________ power.

  1. B) reward

Page Ref: 428

40

Use of Power (Scenario)

Broomer manufactures fashion apparel for women, men, and children. Its products are in high demand and apparel stores are more than willing to carry and sell Broomer's garments. The company recently introduced a new clothing line named "Inducer", targeted at the youth. However, the new line is not well-received by the market, and sales fail to take off even three months after its launch.

Because of the acceptance that the other Broomer products have in the market, retailers are willing to stock items from the new "Inducer" line of clothing. This is an example of ________ power.

  1. A) referent

Page Ref: 428

41

Use of Power (Scenario)

Broomer manufactures fashion apparel for women, men, and children. Its products are in high demand and apparel stores are more than willing to carry and sell Broomer's garments. The company recently introduced a new clothing line named "Inducer", targeted at the youth. However, the new line is not well-received by the market, and sales fail to take off even three months after its launch.

Broomer threatens to withdraw all its other products from the retailers' stores if they are unwilling to push products from the "Inducer" line. This is an example of ________ power.

  1. B) coercive

Page Ref: 428

42

________ power can be effective, but its exercise produces resentment and can lead the intermediaries to organize countervailing power.

  1. A) Coercive

Page Ref: 428

43

43) A manufacturer offers its intermediaries an extra benefit for performing a promotional activity. This is an example of the use of ________ power.

  1. A) reward

Page Ref: 428

44

44) A manufacturer is using legitimate power when it ________.

  1. A) requests a behavior that is warranted under the selling contract

Page Ref: 428

45

45) Hewlett-Packard is a highly respected brand. Many retailers want to be associated with the brand because of this reputation. What kind of power does Hewlett-Packard obtain due to this reputation?

  1. A) referent

Page Ref: 428

46

46) Which of the following types of power is objectively observable?

  1. A) coercive power

Page Ref: 428

47

47) A new firm typically starts as a local operation selling in a fairly circumscribed market by ________.

  1. B) using a few existing intermediaries

Page Ref: 429

48

48) Who will most likely be willing to pay for high-value-added channels?

  1. A) early buyers of a product

Page Ref: 429

49

49) A producer must modify its channel design and arrangements if ________.

  1. A) consumer buying patterns change

Page Ref: 429

50

What is the major difference between a conventional marketing channel and a vertical marketing system (VMS)?

  1. A) Elements in a conventional marketing channel act as separate businesses whereas the elements in a VMS act as a unified system.

Page Ref: 431

51

51) A(n) ________ includes the producer, wholesaler(s), and retailer(s) acting as a unified system.

  1. B) vertical marketing system

Page Ref: 431

52

52) A(n) ________ vertical marketing system combines successive stages of production and distribution under single ownership.

  1. A) corporate

Page Ref: 432

53

53) The most advanced supply-distributor arrangements for ________ vertical marketing systems rely on distribution programming.

  1. B) administered

Page Ref: 432

54

54) Rotter Garder Inc. is a large-scale paint manufacturer and is known for its wide range of decorative paint products and industrial coatings. In addition to making paints, the company also owns and operates the retail stores which sell its products. This is an example of a(n) ________ vertical marketing system.

  1. D) corporate

Page Ref: 432

55

55) An administered VMS coordinates successive stages of production and distribution through ________.

  1. E) the size and power of one of the members

Page Ref: 432

56

56) A(n) ________ VMS 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.

  1. B) contractual

Page Ref: 433

57

57) A group of small sellers take the initiative and organize a new business entity to carry on wholesaling and possibly some production. This initiative is called a(n) ________.

  1. A) retailer cooperative

Page Ref: 433

58

58) In a retailer cooperative, ________.

  1. B) members plan their advertising jointly

Page Ref: 433

59

59) A group of small grocery shops forms a new business entity to buy products directly from manufacturers. The group buys products in bulk which are then distributed among members. This helps the shops obtain better profit margins. Which of the following types of vertical marketing system can be observed here?

  1. A) contractual

Page Ref: 433

60

60) A franchise organization is an example of a(n) ________ vertical marketing system.

  1. C) contractual

Page Ref: 433

61

61) In a ________ marketing system, two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity.

  1. C) horizontal

Page Ref: 433

62

62) Which of the following is a major advantage of adding more channels for selling?

It helps the company increase its market coverage.

Page Ref: 434

63

63) ________ channel conflict occurs between channel members at the same level.

  1. A) Horizontal

Page Ref: 435

64

64) Alcart Solutions is a large distributor of Aldor phones in Canada. The company distributes products to various retailers in the New Brunswick province. Recently Aldor received several complaints from its retailers that their orders are not delivered on time. They also complain that Alcart offers preferential treatment to some of the other retailers in the region. This is an example of ________ conflict.

  1. C) vertical

Page Ref: 436

65

65) A franchisee owner is unsatisfied because the manufacturer provides more benefits to a wholesaler. This conflict is an example of a(n) ________ conflict.

  1. D) multichannel

Page Ref: 436

66

66) A manufacturer wants to achieve rapid market penetration through a low-price policy. However, its dealers prefer to work with high margins and pursue short-run profitability. The major reason for this conflict is ________.

  1. A) goal incompatibility

Page Ref: 436

67

67) General Motors' executives work for a short time in some dealerships, and some dealership owners work in GM's dealer policy department. This strategy helps the company avoid conflicts with its dealers. This is an example of the ________ strategy.

  1. A) employee exchange

Page Ref: 437

68

68) RX Corp. is a large manufacturer of electronic goods and sells its products through distributors and retailers. In order to keep pace with the growing use of the Internet, the company decides to start selling online. The company faces stiff opposition from its retailers as they believe that this will significantly reduce their profits. The company attempts to eliminate this resistance by offering its retailers commissions for processing and delivering orders received via the Web. This is an example of which of the following conflict resolution strategies?

  1. A) dual compensation

Page Ref: 437

69

69) Co-optation is an effort by one organization to win the support of the leaders of another by ________.

  1. A) including them in advisory councils

Page Ref: 437

70

70) Winstar is a large scale manufacturer which has more than a hundred partners across the globe. When making decisions concerning distribution and channel optimization, the company invites members from its channel partners to be part of its advisory committee. This helps the company maintain harmony with its partners. Which of the following conflict resolution techniques is Winstar using?

  1. D) co-option

Page Ref: 437

71

71) Which of the following channel conflict resolution techniques is used only if everything else proves ineffective?

  1. A) legal recourse

Page Ref: 438

72

72) Which of the following is the most complete and accurate description of a pure-click company?

  1. A) These are companies that launch a Web site without any previous existence as a firm.

Page Ref: 439

73

73) A large retail chain in the United States decides to expand its operations by adding an online site for e-commerce. This is called a(n) ________ company.

  1. E) brick-and-click

Page Ref: 439

74

74) An Internet service provider (ISP) is a(n) ________ company.

  1. A) pure-click

Page Ref: 439

75

75) JSE Securities Exchange is the largest stock exchange in Africa. The JSE provides a market where securities can be traded freely under a regulated procedure. The company acts as an intermediary between the traders. JSE is an example of a(n) ________.

  1. D) market maker

Page Ref: 439

76

76) Exxon Consulting, works as an agent on behalf of business consumers to collect information on various industrial products. When faced with buying decisions, businesses can approach Exxon to obtain detailed information on the various options available to them. The company earns revenue by selling such information to various customers. Marten Consulting can be called

  1. A) infomediary

Page Ref: 439

77

77) Consumer surveys suggest that one of the most significant inhibitors of online shopping is the absence of ________.

  1. A) pleasurable experiences

Page Ref: 439

78

78) Which of the following is a major threat facing the brick-and-mortar manufacturers when they add an e-commerce channel?

  1. A) It creates the possibility of a backlash from the existing intermediaries.

Page Ref: 440

79

79) Which of the following is an example of a brick-and-click company?

  1. A) IFB Industries, a company that sells products using various channels such as Internet, retailers, direct outlets, and franchisees.
80

80) M-commerce refers to ________.

  1. A) conducting business using mobile channels

Page Ref: 441