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marketing management ch 15

front 1 1) ________ are sets of interdependent organizations participating in the process of making a product or service available for use or consumption.	back 1 A) Marketing channels Page Ref: 415
front 2 2) Which of the following entities in the marketing channel is a merchant?	back 2 A) wholesalers Page Ref: 416
front 3 3) A(n) ________ is a facilitator who assists in the distribution process.	back 3 A) advertising agency Page Ref: 416
front 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?	back 4 C) push strategy Page Ref: 416

front 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 ________.	back 5 B) push strategy Page Ref: 416
front 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 ________.	back 6 D) pull strategy Page Ref: 416
front 7 7) When is a pull strategy appropriate?	back 7 B) when consumers are able to perceive differences between brands Page Ref: 416
front 8 8) Using the push strategy is most appropriate when ________.	back 8 B) the product being sold is an impulse item Page Ref: 416

front 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.	back 9 A) hybrid Page Ref: 416
front 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?	back 10 A) channel integration Page Ref: 417
front 11 11) Which of the following is the most accurate description of a value network?	back 11 A) A system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings. Page Ref: 417
front 12 12) Companies should first think of the target market and then design the supply chain backward from that point. This strategy is called ________.	back 12 A) demand chain planning Page Ref: 417

front 13 13) Which of the following channel functions constitute only a backward flow?	back 13 B) placing orders with manufacturers Page Ref: 418
front 14 14) Identify the channel function that constitutes both backward and forward flow.	back 14 A) obtaining funds for financing Page Ref: 418
front 15 15) Producers often shift some functions to intermediaries. Which of the following is the most significant benefit of doing this?	back 15 D) It lowers the producer's costs and prices. Page Ref: 419
front 16 ) Which of the following is an example of a zero-level channel?	back 16 ) A company takes online orders from customers and ships the products to them. Page Ref: 420

front 17 17) Which of the following entities is present in a zero-level marketing channel?	back 17 A) consumers Page Ref: 420
front 18 18) A direct marketing channel is a ________.	back 18 C) zero-level channel Page Ref: 420
front 19 19) A jobber in a three-level marketing channel is a(n) ________.	back 19 A) small-scale wholesaler Page Ref: 421
front 20 20) Which of the following activities is a reverse-flow channel of marketing?	back 20 B) product recycling Page Ref: 421

front 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?	back 21 A) spatial convenience Page Ref: 422
front 22 22) As a service output produced by marketing channels, product variety refers to the ________.	back 22 B) assortment provided by the marketing channel Page Ref: 423
front 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?	back 23 A) service backup Page Ref: 423
front 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?	back 24 A) good service backup Page Ref: 423

front 25 25) Which of the following types of distribution involves severely limiting the number of channel intermediaries?	back 25 A) exclusive Page Ref: 424
front 26 26) Which of the following allows a firm to maintain control over the service level and obtain more dedicated and knowledgeable selling?	back 26 D) exclusive distribution Page Ref: 424
front 27 27) Which of the following channel alternatives is most suited to handle complex products and transactions?	back 27 A) sales forces Page Ref: 424
front 28 28) Which of the following is a major disadvantage of using the Internet as a marketing channel?	back 28 A) It is less effective for complex products. Page Ref: 424

front 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.	back 29 A) selective Page Ref: 425
front 30 30) Exclusive dealing arrangements are mainly used by companies looking for an edge in markets increasingly driven by ________.	back 30 A) price Page Ref: 425
front 31 31) An intensive distribution strategy serves well for ________.	back 31 E) newspapers Page Ref: 425
front 32 32) Which of the following products is most likely to be sold using an exclusive distribution strategy?	back 32 A) designer luggage Page Ref: 425

front 33 33) Which of the following covers payment terms and producer guarantees?	back 33 A) conditions of sale Page Ref: 426
front 34 34) ________ call(s) for the producer to establish a schedule of discounts and allowances that intermediaries see as equitable and sufficient.	back 34 D) Price policy Page Ref: 426
front 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"?	back 35 B) conditions of sale Page Ref: 426
front 36 36) Which of the following channels is associated with the lowest cost per transaction?	back 36 A) Internet Page Ref: 426

front 37 37) Which marketing channel is associated with the highest value added per sale?	back 37 B) sales force Page Ref: 426
front 38 38) Which of the following problems is most likely when a sales agency is used instead of company salespeople?	back 38 A) The company will find it difficult to control the sales process. Page Ref: 427
front 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.	back 39 B) reward Page Ref: 428
front 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.	back 40 A) referent Page Ref: 428

front 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.	back 41 B) coercive Page Ref: 428
front 42 ________ power can be effective, but its exercise produces resentment and can lead the intermediaries to organize countervailing power.	back 42 A) Coercive Page Ref: 428
front 43 43) A manufacturer offers its intermediaries an extra benefit for performing a promotional activity. This is an example of the use of ________ power.	back 43 A) reward Page Ref: 428
front 44 44) A manufacturer is using legitimate power when it ________.	back 44 A) requests a behavior that is warranted under the selling contract Page Ref: 428

front 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?	back 45 A) referent Page Ref: 428
front 46 46) Which of the following types of power is objectively observable?	back 46 A) coercive power Page Ref: 428
front 47 47) A new firm typically starts as a local operation selling in a fairly circumscribed market by ________.	back 47 B) using a few existing intermediaries Page Ref: 429
front 48 48) Who will most likely be willing to pay for high-value-added channels?	back 48 A) early buyers of a product Page Ref: 429

front 49 49) A producer must modify its channel design and arrangements if ________.	back 49 A) consumer buying patterns change Page Ref: 429
front 50 What is the major difference between a conventional marketing channel and a vertical marketing system (VMS)?	back 50 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
front 51 51) A(n) ________ includes the producer, wholesaler(s), and retailer(s) acting as a unified system.	back 51 B) vertical marketing system Page Ref: 431
front 52 52) A(n) ________ vertical marketing system combines successive stages of production and distribution under single ownership.	back 52 A) corporate Page Ref: 432

front 53 53) The most advanced supply-distributor arrangements for ________ vertical marketing systems rely on distribution programming.	back 53 B) administered Page Ref: 432
front 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.	back 54 D) corporate Page Ref: 432
front 55 55) An administered VMS coordinates successive stages of production and distribution through ________.	back 55 E) the size and power of one of the members Page Ref: 432
front 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.	back 56 B) contractual Page Ref: 433

front 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) ________.	back 57 A) retailer cooperative Page Ref: 433
front 58 58) In a retailer cooperative, ________.	back 58 B) members plan their advertising jointly Page Ref: 433
front 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?	back 59 A) contractual Page Ref: 433
front 60 60) A franchise organization is an example of a(n) ________ vertical marketing system.	back 60 C) contractual Page Ref: 433

front 61 61) In a ________ marketing system, two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity.	back 61 C) horizontal Page Ref: 433
front 62 62) Which of the following is a major advantage of adding more channels for selling?	back 62 It helps the company increase its market coverage. Page Ref: 434
front 63 63) ________ channel conflict occurs between channel members at the same level.	back 63 A) Horizontal Page Ref: 435
front 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.	back 64 C) vertical Page Ref: 436

front 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.	back 65 D) multichannel Page Ref: 436
front 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 ________.	back 66 A) goal incompatibility Page Ref: 436
front 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.	back 67 A) employee exchange Page Ref: 437
front 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?	back 68 A) dual compensation Page Ref: 437

front 69 69) Co-optation is an effort by one organization to win the support of the leaders of another by ________.	back 69 A) including them in advisory councils Page Ref: 437
front 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?	back 70 D) co-option Page Ref: 437
front 71 71) Which of the following channel conflict resolution techniques is used only if everything else proves ineffective?	back 71 A) legal recourse Page Ref: 438
front 72 72) Which of the following is the most complete and accurate description of a pure-click company?	back 72 A) These are companies that launch a Web site without any previous existence as a firm. Page Ref: 439

front 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.	back 73 E) brick-and-click Page Ref: 439
front 74 74) An Internet service provider (ISP) is a(n) ________ company.	back 74 A) pure-click Page Ref: 439
front 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) ________.	back 75 D) market maker Page Ref: 439
front 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	back 76 A) infomediary Page Ref: 439

front 77 77) Consumer surveys suggest that one of the most significant inhibitors of online shopping is the absence of ________.	back 77 A) pleasurable experiences Page Ref: 439
front 78 78) Which of the following is a major threat facing the brick-and-mortar manufacturers when they add an e-commerce channel?	back 78 A) It creates the possibility of a backlash from the existing intermediaries. Page Ref: 440
front 79 79) Which of the following is an example of a brick-and-click company?	back 79 A) IFB Industries, a company that sells products using various channels such as Internet, retailers, direct outlets, and franchisees.
front 80 80) M-commerce refers to ________.	back 80 A) conducting business using mobile channels Page Ref: 441