Question 1

Explain the advantages of using an intermediary.

Accepted Answer

The answer of Explain the advantages of using an intermediary....

Question 2

A pull strategy utilizes customers to convince businesses to sell a product.

Accepted Answer

A pull strategy involves creating demand for a product among customers, who then request the product from retailers or businesses, thus pulling the product through the distribution channels. This can encourage businesses to carry the product and sell it to meet customer demand.

Question 3

A(n)_____ is formed when two parties agree to share their profits,losses,and control with one another in an economic activity they jointly undertake.
A) strategic alliance
B) direct foreign investment
C) joint venture
D) franchising
E) exporting

Accepted Answer

A joint venture is the only option that involves two parties agreeing to share profits, losses, and control in an economic activity they jointly undertake. Strategic alliances involve a partnership for a specific purpose or project, but profits and control may not necessarily be shared equally. Direct foreign investment involves a company investing in a foreign market without necessarily partnering with another company. Franchising involves a company licensing its brand and business model to another party in exchange for royalties, but profits and control are not necessarily shared. Exporting involves a company selling its products in a foreign market without necessarily partnering with another company.

Question 4

Disintermediation involves granting an independent operator the right to use your manufacturing processes,trade secrets,patents,and trademarks for a certain amount of time in exchange for a fee.

Accepted Answer

Disintermediation is the process of bypassing intermediaries such as distributors or retailers to sell directly to the end customer. It does not involve granting rights to manufacturing processes, trade secrets, patents, or trademarks to an independent operator.

Question 5

Acquiring part or all of a foreign company is a common strategy for companies known as _____.
A) strategic alliance
B) direct foreign investment
C) joint venture
D) franchising
E) exporting

Accepted Answer

Direct foreign investment involves acquiring part or all of a foreign company. Strategic alliances, joint ventures, franchising, and exporting do not necessarily involve the acquisition of a foreign company.

Question 6

The clout of the various organizations in its marketing channel can affect the contract terms.

Accepted Answer

The clout of organizations within a marketing channel can impact the terms of contracts, specifically in terms of negotiating power and the ability to influence pricing and other contract details.

Question 7

Cutting middlemen out of the channel is known as:
A) disintermediation.
B) restructuring.
C) strategic distribution.
D) dismemberment.
E) rearranging.

Accepted Answer

Disintermediation refers to the process of eliminating intermediaries (middlemen) in a distribution channel. This is often done to cut costs, improve efficiency or have more control over the distribution process.

Question 8

Identify and describe five channels utilized by firms attempting to enter a foreign market.

Accepted Answer

The answer of Identify and describe five channels utilized by...

Question 9

_____ grants an independent operator the right to use a company's business model,techniques,and trademarks for a fee.

Accepted Answer

The answer of _____ grants an independent operator the right...

Question 10

Which of the following is the least risky global entry strategy?
A) Strategic alliance
B) Direct foreign investment
C) Joint venture
D) Franchising
E) Exporting

Accepted Answer

Exporting is generally the least risky global entry strategy as it involves minimal investment and allows for testing the waters in a foreign market before committing to more complex strategies.

Question 11

The problem with a pull strategy is that it doesn't focus on the needs of the actual users of products.

Accepted Answer

A pull strategy focuses on creating demand for a product or brand at the end-user level, which inherently aims to meet the needs and preferences of the actual users to encourage them to seek out the product.

Question 12

A push strategy primarily involves creating consumer demand.

Accepted Answer

A push strategy primarily involves supplying products to retailers in order to persuade them to promote and sell them to consumers, rather than creating consumer demand directly.

Question 13

Explain some barriers for companies trying to expand their offerings into foreign markets.

Accepted Answer

The answer of Explain some barriers for companies trying to...

Question 14

A(n)_____ is an entity that is created when two parties agree to share their profits,losses,and control with one another.

Accepted Answer

The answer of A(n)_____ is an entity that is created...

Question 15

____ grants a firm the right to use another firm's manufacturing processes,trade secrets,patents,and trademarks for a certain period of time.

Accepted Answer

The answer of ____ grants a firm the right to...

Question 16

Explain why companies utilize multiple channels.

Accepted Answer

The answer of Explain why companies utilize multiple channels....

Question 17

A channel that includes one or more _____ is known as an indirect channel.

Accepted Answer

The answer of A channel that includes one or more...

Question 18

Different organizations in a marketing channel are responsible for different value-adding activities.

Accepted Answer

Different organizations within a marketing channel, like manufacturers, wholesalers, and retailers, all perform different tasks that add value to the products being sold. For example, manufacturers produce products, wholesalers help to distribute them to retailers, and retailers sell them to end consumers. Each organization's value-adding activities contribute to the overall success of the marketing channel.

Question 19

_____ is an agreement formed by two or more firms to deliver their products via a channel.

Accepted Answer

The answer of _____ is an agreement formed by two...

Question 20

_____ are intermediary firms that sell products that businesses or government departments and agencies use but don't resell.
A) Online retailers
B) Warehouse clubs
C) Industrial distributors
D) Category killers
E) Specialty stores

Accepted Answer

Industrial distributors sell products to businesses and government agencies for their own use, unlike online retailers, warehouse clubs, category killers, or specialty stores, which may sell to individual consumers or resell to other businesses.

Quiz 8: Using Marketing Channels to Create Value for Customers