Question 1

There are three forms of franchise: manufacturer sponsored retailer franchise; manufacturer- sponsored wholesaler franchise and service- firm- sponsored franchise.

Accepted Answer

This statement is true.

Question 2

Most consumers are unable to tell the difference between contractual and corporate VMS.

Accepted Answer

This statement is true. Most consumers are not aware of the difference between contractual and corporate VMS (Video Management System).

Question 3

Warehousing has long been considered the primary function of wholesaling. How has the development of distribution centres altered the traditional wisdom? Why does this approach represent a total system effort?

Accepted Answer

The answer of Warehousing has long been considered the primary...

Question 4

If a marketer chooses to use a vertical marketing network (VMNs), he or she has three versions from which to choose. Describe the three types of VMNs.

Accepted Answer

The answer of If a marketer chooses to use a...

Question 5

Explain why some degree of channel conflict is inevitable in some distribution systems. Use examples to illustrate your answer.

Accepted Answer

The answer of Explain why some degree of channel conflict...

Question 6

Companies must make a decision on how many marketing intermediaries to use at any level of marketing distribution. This is especially critical at the retail level. Name and identify the three strategies that are available with respect to number of marketing intermediaries. Give an example of each form.

Accepted Answer

The answer of Companies must make a decision on how...

Question 7

Characterise a horizontal marketing network and provide an illustration of such a network.

Accepted Answer

The answer of Characterise a horizontal marketing network and provide...

Question 8

In shipping goods to its customers, a company can choose from among five transportation forms. List and characterise each of these forms.

Accepted Answer

The answer of In shipping goods to its customers, a...

Question 9

Taupo Manufacturing Inc. has opted for direct distribution even though it knows that it would be cheaper to use intermediaries. Identify as many possible reasons as you can to support this decision.

Accepted Answer

The answer of Taupo Manufacturing Inc. has opted for direct...

Question 10

Two recent trends evident in the distribution of goods and services are the replacement of conventional channels with vertical marketing networks and disintermediation.

Accepted Answer

Vertical marketing networks refer to the use of intermediaries to create a closer relationship between manufacturers and retailers, while disintermediation refers to the removal of intermediaries altogether, often with the use of online platforms. Both trends are increasingly evident in the distribution of goods and services.

Question 11

Disintermediation involves removing a marketing channel.

Accepted Answer

Disintermediation refers to the elimination of intermediaries in a distribution channel. It involves removing a marketing channel to enable direct interaction between producers and consumers.

Quiz 13: Marketing Channels and Logistics Networks