Question 1

Orion Steels is the chief provider of metals to the Accline Car Company.The Accline Car Company has two models of car-one for commercial and ordinary consumers,and another for professional car racing teams.The Accline Car Company has designated dealers to sell their commercial cars to consumers,while racing cars are sold directly to the racing teams.In such a distribution channel,which of the following would be considered a horizontal conflict?
A)conflicts between Orion Steels and the Accline Car Company
B)conflicts between Orion Steels and Accline dealers
C)conflicts between two Accline consumer car dealers
D)conflicts between sellers of the Accline consumer cars and racing cars
E)conflicts between the Accline Car Company and its dealers

Accepted Answer

Horizontal conflicts occur between entities at the same level of distribution. In this case, two Accline consumer car dealers would be at the same level of distribution and could potentially compete against each other, making it a horizontal conflict. The other options either involve conflicts between entities at different levels of distribution or conflicts involving suppliers, which are not horizontal conflicts.

Question 2

Which of the following is an example of a marketing intermediary?
A)business customer
B)producer
C)supplier
D)retailer
E)consumer

Accepted Answer

A retailer is an example of a marketing intermediary, as they help to distribute products from producers to consumers. They can provide services such as selling, advertising, and holding inventory. Business customers, producers, suppliers, and consumers are not intermediaries in the same sense.

Question 3

Crowbar Records used to sell its music,in CDs,through a network of retail outlets,record stores,and music dealers.After the advent of MP3 technology,it decided to shift from using any of these agents and sell its music independently from the company's Web site,using personal mail,and other social networking techniques to inform potential customers about upcoming music and promotions.Which of the following types of marketing systems has Crowbar newly adopted?
A)administered vertical marketing system
B)contractual vertical marketing system
C)horizontal marketing system
D)direct marketing channel
E)vertical marketing channel

Accepted Answer

Crowbar has adopted a direct marketing channel where it sells its music independently through its website and uses personal mail and social networking techniques to inform potential customers.

Question 4

Mintel Agros provides raw materials in the form of agricultural products to the Kiltmark Food Company.Kiltmark produces flour-based edible products,which it distributes to a wholesale company called Krackstar Trading.Krackstar Trading then sells Kiltmark products to the discount retailers,Stroos.Stroos then sells it to consumers.Which of the following is considered a marketing intermediary in these transactions?
A)Kiltmark Food Company
B)only Stroos
C)only Krackstar Trading
D)both Krackstar Trading and Stroos
E)Mintel Agros

Accepted Answer

Krackstar Trading and Stroos are both marketing intermediaries as they are involved in the distribution process between the producer (Kiltmark) and the end consumer. Mintel Agros is the supplier of raw materials and not directly involved in the distribution and sale of the final product. Kiltmark is the producer and not a marketing intermediary.

Question 5

A ________ is made up of the company,suppliers,distributors,and,ultimately,customers who "partner" with each other to improve the performance of the entire system.
A)supply chain
B)distribution center
C)demand chain
D)value delivery network
E)disintermediation system

Accepted Answer

A value delivery network includes the company, suppliers, distributors, and customers who work together to improve the performance of the entire system.

Question 6

________ are a set of interdependent organizations that help make the product or service of the company available for use or consumption by the consumer or business user.
A)Research and development channels
B)Upstream channels
C)Marketing channels
D)Raw materials suppliers
E)Backward integration chains

Accepted Answer

Marketing channels, also known as distribution channels, involve all the intermediaries such as wholesalers, retailers, and agents, that help in delivering the product from the manufacturer to the consumer or business user. These intermediaries play a critical role in making the product or service available, accessible, and affordable to the target audience. The marketing channels can be direct or indirect and involve both physical and digital channels.

Question 7

Orion Steels is the chief provider of metals to the Accline Car Company.The Accline Car Company has two models of vehicles-one for commercial and ordinary consumers,and another providing public transport under a contract with the government.The Accline Car Company has designated dealers to sell their commercial cars to consumers,while public transport vehicles are sold directly to the government.In such a distribution channel,which of the following would be considered a vertical conflict?
A)conflicts between Orion Steels and the Accline Car Company
B)conflicts between Orion Steels and Accline dealers
C)conflicts between two Accline consumer car dealers
D)conflicts between sellers of the consumer cars and sellers of the public transport vehicles
E)conflicts between the Accline Car Company and its dealers

Accepted Answer

Vertical conflict occurs between different levels of the same channel, such as between a manufacturer and its dealers.

Question 8

Which of the following creates the shortest distribution channel between the producer and the customer?
A)retailer channels
B)indirect marketing channels
C)reseller channels
D)direct marketing channels
E)wholesaler channels

Accepted Answer

Direct marketing channels create the shortest distribution channel between the producer and the customer as the producer sells directly to the end-user without any intermediaries involved.

Question 9

Which of the following is true of downstream channels in a company's supply chain?
A)They provide their expertise in product design and production.
B)They produce the products and services of the company.
C)They supply raw materials and components to the company.
D)They contribute financially to the company during production.
E)They form an intermediary link between the company and its customers.

Accepted Answer

Downstream channels in a company's supply chain typically form an intermediary link between the company and its customers. They are responsible for distributing the products or services to the end-users or the target market of the company. Examples of downstream channels include retailers, wholesalers, and e-commerce platforms.

Question 10

Which of the following is an example of horizontal conflict in the distribution channel?
A)a Nike shoe dealer complaining that the shoes provided to the dealer are defective
B)a Ford car dealer complaining that another Ford dealer is overpricing customers for the same car model
C)a FedEx agent complaining that a DHL agent is cutting off its business
D)a Walmart executive complaining to a Pepsi executive for not replenishing stocks
E)a Gucci executive complaining to Gucci's suppliers of delay in shipping consignments

Accepted Answer

Horizontal conflict occurs between channel members at the same level. In this case, the Ford car dealer is complaining about another Ford dealer, which is at the same level in the distribution channel. The other options are either examples of vertical conflict (A, D, E) or competition between companies in different distribution channels (C).

Question 11

Producers use marketing intermediaries because they ________.
A)create greater efficiency in making goods available to target markets
B)supply cheaper raw materials for the production of products and services
C)provide technical expertise and know-how for faster production
D)help monitor day-to-day activities during production
E)form a part of the company's direct channel selling chain

Accepted Answer

Producers use marketing intermediaries to create greater efficiency in making goods available to target markets. Marketing intermediaries help to distribute products to retailers, wholesalers or directly to consumers, which saves time and resources for the producer. They also provide market information, financial support and contacts with other businesses, which can help reduce costs and increase sales.

Question 12

Which of the following is true of a conventional distribution channel?
A)It has each channel member acting as a separate business unit trying to maximize its own profits.
B)It consists of the producer selling its product directly to the customer without the use of intermediaries.
C)It has one channel member owning the other channel members.
D)It is a distribution channel where the producer is owner of all other channel members.
E)It has all members of the channel acting as a unified unit.

Accepted Answer

A conventional distribution channel is characterized by each channel member acting as a separate business unit trying to maximize its own profits. It is a fragmented system in which each member along the distribution chain seeks to extract maximum value from the transaction.

Question 13

In which of the following does the producer have maximum control over the way its products are sold?
A)horizontal marketing system
B)direct marketing channel
C)administered marketing system
D)contractual marketing system
E)corporate marketing channel

Accepted Answer

In a direct marketing channel, the producer has maximum control over the way its products are sold because it sells directly to the end consumers without any intermediaries. The producer can design and implement marketing strategies, control the distribution process, and interact directly with customers. In other marketing systems like a contractual marketing system or administered marketing system, the producer has to work with intermediaries like wholesalers or retailers, and their influence on the marketing strategies and sales process can reduce the producer's control.

Question 14

Which of the following guarantees full control to the producer over selling their products?
A)adopting an indirect marketing channel
B)adopting a direct marketing channel
C)adopting a traditional distribution channel
D)adopting a horizontal marketing system
E)adopting a vertical marketing system

Accepted Answer

Adopting a direct marketing channel allows producers to have full control over selling their products. In this channel, producers sell directly to consumers without involving any intermediaries, giving them complete control over the marketing and selling process.

Question 15

Which of the following exemplifies vertical conflicts that occur in a distribution channel?
A)conflicts that occur between same levels in the same channel
B)conflicts that occur between different levels of the same channel
C)conflicts that occur between same levels of different channels
D)conflicts that occur between a supplier and a producer
E)conflicts that occur between two suppliers over meeting the demands of a producer

Accepted Answer

Vertical conflicts occur between different levels of the same distribution channel. Option A describes horizontal conflicts, option C describes interchannel conflicts, and options D and E describe conflicts beyond the scope of a distribution channel.

Question 16

Which of the following is an example of a firm practicing direct marketing for selling its products?
A)a firm that uses only one marketing intermediary to sell its products
B)a firm that sells its products through retailers
C)a firm that sells its products through wholesalers
D)a firm that sells its products through more than one intermediary
E)a firm that sells its products through the company Web site

Accepted Answer

Direct marketing involves directly selling products to customers without any intermediaries. Therefore, a firm that sells its products through its own website is an example of direct marketing.

Question 17

Which of the following is true of using direct marketing channels?
A)It decreases the number of channel transactions between the producer and customer.
B)It is used by firms that sell their products through intermediaries.
C)It is a distributing channel that does not use intermediaries.
D)It gives the least amount of control to the producer over selling their product.
E)It creates a complex distributional channel with several types of flows.

Accepted Answer

Direct marketing channels are distribution channels that do not use intermediaries; the producer sells directly to the customer.

Question 18

Kevin Pinker is a freelance computer programmer who writes computer algorithms for SoftStars.SoftStars uses these algorithms to make specific softwares based on online market research.SoftStars' programs are then sold to the online retailer,Abundon,which then sells it to consumers and businesses.Which of the following is a marketing intermediary in this chain?
A)only SoftStars
B)both Abundon and SoftStars
C)both Kevin Pinker and SoftStars
D)only Abundon
E)only Kevin Pinker and Abundon

Accepted Answer

Abundon acts as a marketing intermediary in this chain as it buys the software programs from SoftStars and then sells it to consumers and businesses. Kevin Pinker is a freelance computer programmer and SoftStars is the company that uses his algorithms to make specific softwares, but neither of them act as a marketing intermediary in this chain.

Question 19

Which of the following would be considered an upstream partner in a company's supply chain?
A)a firm that resells the finished product and shares the net sales with the producer
B)a firm that provides technical expertise in the production of the product
C)a firm that helps in marketing the product to consumers through the use of media
D)a firm that buys products in wholesale from the company
E)a firm that helps to exclusively market to other businesses

Accepted Answer

An upstream partner in a company's supply chain refers to a supplier or vendor of raw materials or components necessary for the production of the product. Option B, which provides technical expertise in the production of the product, is the most appropriate as an upstream partner.

Question 20

From the economic system's point of view,the role of marketing intermediaries is to ________.
A)facilitate the production of products without direct customer feedback
B)help the company develop a direct channel selling system
C)buy small quantities of products from producers and break them down into narrow assortments for customers
D)create a streamlined distribution channel between the company and its suppliers
E)transform the assortments of products made by producers into the assortments wanted by consumers

Accepted Answer

Marketing intermediaries play a critical role in transforming the assortments of products made by producers into the assortments wanted by consumers. They do this by buying large quantities of products from producers and breaking them down into smaller quantities for customers. This process helps to ensure that products are available where and when consumers want them, which is essential for the success of any product in the market.

Quiz 10: Marketing Channels Delivering Customer Value

Which of the following is an example of a marketing intermediary?

A ________ is made up of the company,suppliers,distributors,and,ultimately,customers who "partner" with each other to improve the performance of the entire system.

________ are a set of interdependent organizations that help make the product or service of the company available for use or consumption by the consumer or business user.

Which of the following creates the shortest distribution channel between the producer and the customer?

Which of the following is true of downstream channels in a company's supply chain?

Which of the following is an example of horizontal conflict in the distribution channel?

Producers use marketing intermediaries because they ________.

Which of the following is true of a conventional distribution channel?

In which of the following does the producer have maximum control over the way its products are sold?

Which of the following guarantees full control to the producer over selling their products?

Which of the following exemplifies vertical conflicts that occur in a distribution channel?

Which of the following is an example of a firm practicing direct marketing for selling its products?

Which of the following is true of using direct marketing channels?

Which of the following would be considered an upstream partner in a company's supply chain?

From the economic system's point of view,the role of marketing intermediaries is to ________.