Chapter 8

Question 1

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What is the term for the specific route a seller uses to make a finished good or service available for purchase? a) Supply chain b) Logistics network c) Marketing channel d) Distribution logistics

Answer 1

c) Marketing channel

Question 2

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Why are marketing channel decisions considered as important as decisions about product features and prices? a) Because they solely determine the cost of goods. b) Because they are easier to change than product features. c) Because consumers are demanding and will buy competing products if the product isn’t available when, where, and how they want it. d) Because they are regulated more heavily than product features.

Answer 2

c) Because consumers are demanding and will buy competing products if the product isn’t available when, where, and how they want it.

Question 3

How do supply chains differ from marketing channels, according to the text? a) Supply chains focus only on the flow of information, while marketing channels focus on the flow of goods. b) Marketing channels include only upstream partners, while supply chains include only downstream partners. c) Supply chains encompass all the organizations that contribute to the creation of a product, including suppliers, while marketing channels focus on making the finished good available for purchase. d) There is no significant difference between supply chains and marketing channels.

Answer 3

c) Supply chains encompass all the organizations that contribute to the creation of a product, including suppliers, while marketing channels focus on making the finished good available for purchase.

Question 4

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Which of the following is a primary way intermediaries in a marketing channel create efficiencies? a) By increasing the number of transactions required. b) By solely focusing on promotion activities. c) By streamlining the number of transactions an organisation must make. d) By increasing the overall cost of the product.

Answer 4

c) By streamlining the number of transactions an organisation must make

Question 5

What is the process of managing and refining supply chains to make them as efficient as possible called? a) Channel management b) Distribution strategy c) Supply chain management d) Inventory control

Answer 5

c) Supply chain management

Question 6

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Which type of wholesaler takes title to the goods they handle? a) Brokers b) Manufacturers’ agents c) Merchant wholesalers d) Sales agents

Answer 6

c) Merchant wholesalers

Question 7

What is the role of an industrial distributor in a B2B marketing channel? a) They sell products directly to consumers for personal use. b) They act as agents who do not take title to goods. c) They sell products that businesses or government departments use but do not resell. d) They primarily focus on marketing and promotion activities for manufacturers.

Answer 7

c) They sell products that businesses or government departments use but do not resell.

Question 8

Which of the following describes a situation where a producer sells directly to the ultimate consumer without using any intermediaries? a) Indirect marketing channel b) Multi-channel marketing c) Direct marketing channel d) Selective distribution

Answer 8

c) Direct marketing channel

Question 9

What is the term for the elimination of intermediaries in a marketing channel? a) Channel integration b) Disintermediation c) Channel conflict d) Vertical marketing system

Answer 9

b) Disintermediation

Question 10

Which of the following is a potential advantage for a company using multiple marketing channels? a) Reduced customer loyalty due to inconsistent experiences. b) Simplification of inventory management. c) Increased customer loyalty as customers utilise more channels. d) Decreased market reach and customer base.

Answer 10

c) Increased customer loyalty as customers utilise more channels.

Question 11

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What is an omnichannel experience in marketing channels? a) Using a large number of different marketing channels without coordination. b) Prioritising online sales channels over physical stores. c) Fully integrating all of a company’s selling channels to offer a seamless and consistent customer experience. d) Focusing on a single dominant marketing channel for all customer interactions.

Answer 11

c) Fully integrating all of a company’s selling channels to offer a seamless and consistent customer experience.

Question 12

What is a key characteristic of a “push” strategy in marketing channels? a) It focuses primarily on the needs and wants of the end users. b) It involves pushing products through the channel to resellers (wholesalers and retailers). c) It relies on creating strong consumer demand to “pull” products through the channel. d) It typically involves direct-to-consumer sales.

Answer 12

. b) It involves pushing products through the channel to resellers (wholesalers and retailers).

Question 13

In a marketing channel, who generally assumes ownership risk if products are damaged during transit? a) Only the manufacturer. b) Only the retailer. c) It is distributed among channel members depending on their contracts and FOB provisions. d) Usually the transportation company bears all the risk.

Answer 13

c) It is distributed among channel members depending on their contracts and FOB provisions.

Question 14

What does the acronym FOB (free on board) refer to in the context of marketing channels? a) A marketing strategy focused on offering free shipping to customers. b) A type of intermediary that facilitates international transactions. c) A contract term that designates which party is responsible for shipping costs and owns the title to the goods and when. d) A common type of packaging used for transporting goods.

Answer 14

c) A contract term that designates which party is responsible for shipping costs and owns the title to the goods and when.

Question 15

Which channel selection factor considers how customers prefer to purchase products? a) Type of product b) Channel partner capabilities c) Type of customer d) Competitive environment

Answer 15

c) Type of customer

Question 16

Perishable and fragile products often require which type of marketing channel? a) Longer marketing channels with many intermediaries. b) Intensive distribution through as many outlets as possible. c) Shorter marketing channels with fewer intermediaries. d) Exclusive distribution to maintain a premium image.

Answer 16

c) Shorter marketing channels with fewer intermediaries.

Question 17

What is an intensive distribution strategy? a) Selling products through only one or a very limited number of outlets. b) Selling products at select outlets in specific locations. c) Selling a product in as many outlets as possible. d) Primarily focusing on online sales channels.

Answer 17

c) Selling a product in as many outlets as possible.

Question 18

Upscale products often prefer exclusive distribution to: a) Increase overall sales volume. b) Make the products easily accessible to all consumers. c) Control the image of their products and the prices at which they are sold. d) Reduce marketing costs by focusing on a wide network.

Answer 18

c) Control the image of their products and the prices at which they are sold.

Question 19

What is channel power in a marketing channel? a) The total number of intermediaries involved in distributing a product. b) The legal authority that governs the relationships between channel members. c) The ability of one channel member to influence the behaviour of other channel members. d) The collective marketing budget of all channel partners.

Answer 19

c) The ability of one channel member to influence the behaviour of other channel members.

Question 20

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A dispute between two different types of members in a marketing channel (e.g., a manufacturer and a retailer) is known as: a) Horizontal conflict b) Vertical conflict c) Channel power struggle d) Disintermediation dispute

Answer 20

b) Vertical conflict

Question 21

What is a horizontal conflict in a marketing channel? a) A disagreement between a producer and a consumer. b) A disagreement that occurs between organisations of the same type in a channel (e.g., two competing retailers). c) A conflict arising from the elimination of a channel member. d) A conflict over the allocation of channel power.

Answer 21

. b) A disagreement that occurs between organisations of the same type in a channel (e.g., two competing retailers).

Question 22

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Which of the following is a way channel leaders like Amazon and Walmart often resolve channel conflicts? a) By ignoring the concerns of smaller channel members. b) By always siding with the manufacturer. c) By leveraging their influence to mediate and enforce agreements. d) By completely taking over the functions of other channel members.

Answer 22

c) By leveraging their influence to mediate and enforce agreements.

Question 23

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What is a vertical marketing system? a) A distribution strategy that involves selling products directly to consumers online. b) A system in which channel members located at different levels within a channel formally agree to cooperate with one another. c) A marketing approach focused on intensive distribution through a large number of retailers. d) A method for resolving conflicts between competing wholesalers.

Answer 23

b) A system in which channel members located at different levels within a channel formally agree to cooperate with one another.

Question 24

When a channel member takes over the functions of another member, this form of disintermediation is known as: a) Horizontal integration b) Channel stuffing c) Vertical integration d) Forward integration

Answer 24

c) Vertical integration

Question 25

Franchises can be considered a type of: a) Horizontal marketing system b) Intensive distribution strategy c) Vertical marketing system d) Gray market operation

Answer 25

c) Vertical marketing system