Question 1

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.

Accepted Answer

A conventional distribution channel consists of independent producers, wholesalers, and retailers who are in competition with each other to maximize their profits, sometimes without regard for the efficiency of the overall system. This can lead to inefficiencies and other problems within the distribution channel.

Question 2

Stylize, Inc. opened an online store that triggered disagreements between headquarters and the firm's exclusive dealers. This type of a disagreement is known as a(n) ________ conflict.

Accepted Answer

This conflict is between the headquarters (the top of the hierarchy) and the exclusive dealers (lower level in the hierarchy) making it a vertical conflict.

Question 3

The ________ organization is the most common type of contractual relationship.

Accepted Answer

Franchise is the most common type of contractual relationship where a company allows another company or individual to use its name, products, and processes in exchange for a fee. This is a popular way of expanding a company's reach without taking on the risks and costs of opening new locations.

Question 4

Conflict which occurs between different levels of the same marketing channel is known as ________ conflict.

Accepted Answer

Vertical conflict occurs between different levels of the same marketing channel, such as between a manufacturer and a retailer or between a wholesaler and a retailer. Horizontal conflict occurs between the same level of the marketing channel, such as between two retailers or two wholesalers. Multitiered, equilateral, and communal conflict are not commonly used terms in marketing channel terminology.

Question 5

________ are complex behavioral systems in which people and companies interact to accomplish individual, company, and channel goals.

Accepted Answer

Distribution channels are complex behavioral systems where individuals and companies interact to achieve their goals. The distribution channel includes producers, wholesalers, retailers, and consumers, and it helps companies to reach their customers efficiently. Business matrices may refer to a company's portfolio of products and markets, resource banks may refer to financial institutions, consumer bases may refer to a company's customer demographic, and product platforms may refer to a company's technology ecosystem. None of these options suit the description of the question as well as distribution channels.

Question 6

Which of the following is true of channel members?

Accepted Answer

Channel members are given specialized roles in the distribution process to ensure efficient and effective delivery of products or services. They work together as a team and are therefore accountable to each other for the success of the channel. The specialization allows for each member to bring value to the overall process.

Question 7

A ________ integrates successive stages of production and distribution under single ownership.

Accepted Answer

A corporate VMS integrates successive stages of production and distribution under single ownership, allowing for greater control and efficiency in the supply chain. The other options do not involve single ownership of the stages of production and distribution.

Question 8

Which of the following is a major type of vertical marketing system (VMS)?

Accepted Answer

Corporate VMS involves a single entity (typically the manufacturer or parent company) owning and controlling all levels of distribution, from production to retail. This type of VMS allows for greater control and coordination of marketing efforts throughout the chain. Conventional and multilevel VMS involve multiple independent entities working together, while intrinsic and extrinsic are not types of VMS.

Question 9

Fire Up makes fireproof clothing material and licenses select stores around the world to use its material to make finished products with the Fire Up logo. Which of the following types of franchising is evident here?

Accepted Answer

The answer of Fire Up makes fireproof clothing material and...

Question 10

When KFC came into conflict with its franchisees over the brand's "Unthink KFC" repositioning, which emphasized grilled chicken over its traditional Kentucky fried chicken, KFC experienced ________ conflict.

Accepted Answer

The answer of When KFC came into conflict with its...

Question 11

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.

Accepted Answer

In an administered VMS, leadership is assumed by one or a few dominant channel members who have the size and power to coordinate the activities of the other members without necessarily having common ownership or contractual ties.

Question 12

Conflict which occurs among firms at the same level of the marketing channel is known as ________ conflict.

Accepted Answer

Horizontal conflict occurs between firms at the same level of the marketing channel, such as two retailers competing for the same customers. Multitiered conflict occurs between firms at different levels of the marketing channel, such as a retailer and a wholesaler. Vertical conflict occurs between firms at different levels of the marketing channel, such as a manufacturer and a retailer. Equilateral conflict and exterior conflict are not recognized terms in the field of marketing channels.

Question 13

A(n) ________ marketing system consists of producers, wholesalers, and retailers acting as a unified system.

Accepted Answer

A vertical marketing system is a unified system consisting of producers, wholesalers, and retailers working together to maximize efficiency and profits. This can include a corporate chain, franchise network, or contractual agreement among the different levels of the supply chain. Horizontal marketing systems involve two or more companies at the same level of the supply chain cooperating to achieve their goals. Multitiered marketing systems involve multiple levels of intermediaries between the producer and the consumer. Communal and equilateral marketing systems are not commonly used terms in marketing.

Question 14

Which of the following is true of vertical marketing systems?

Accepted Answer

In a vertical marketing system, producers, wholesalers, and retailers act as a unified system to meet consumer needs. This requires significant cooperation and coordination between all members of the system.

Question 15

Which of the following is true of conventional distribution channels?

Accepted Answer

In conventional distribution channels, channel members are often independent entities seeking to maximize their own profits, rather than working exclusively for the good of the organization. While roles may be defined, channel members may not always have complete control over each other, and conflicts may not always be governed by formal mechanisms.

Question 16

Which of the following is a type of flow that connects all institutions in a marketing channel?

Accepted Answer

Payment flow is the type of flow that connects all institutions in a marketing channel. It refers to the transfer of money between channel members for goods or services exchanged. This includes payments from retailers to wholesalers and manufacturers, and from end customers to retailers.

Question 17

Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ________ conflict.

Accepted Answer

The conflict between the two Imperial Hotels is horizontal as it is between two entities at the same level in the organization or industry.

Question 18

The management of two Panizza restaurants have an ongoing disagreement over the discount rate given to students from the local high school. This is an example of ________ conflict.

Accepted Answer

Horizontal conflict occurs between entities at the same level in a distribution channel, such as two restaurants in the same chain.

Question 19

A ________ 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.

Accepted Answer

The description provided refers to a contractual VMS in which independent firms join together through formal agreements to achieve more economies and sales impact than they could alone. A corporate VMS involves a single corporation owning and controlling multiple levels of production and distribution, a contingency VMS is a temporary collaboration of firms to address a specific opportunity or challenge, a communal VMS involves a group of companies with shared ownership and control over production and distribution, and a conventional VMS involves independent firms at different levels working together on an informal basis.

Question 20

Ford and its network of independent franchised dealers is an example of a ________.

Accepted Answer

Ford is a manufacturer that has established a network of independent franchised dealers to sell its cars, making it a manufacturer-sponsored retailer franchise system.

Quiz 12: Marketing Channels: Delivering Customer Value