Question 1

American Hospital Supply helps its customers (hospitals) manage inventory and streamline order processing for hundreds of medical supplies. The source of American Hospital Supply's power is its

Accepted Answer

American Hospital Supply's power lies in its expertise in managing inventory and streamlining order processing for medical supplies, which is a valuable service for its customers (hospitals).

Question 2

Disintermediation refers to channel conflict that arises when

Accepted Answer

Disintermediation occurs when a channel member bypasses another member and sells or buys products directly. This can cause channel conflict as the bypassed member may feel cut out or threatened by the direct transaction.

Question 3

Bombardier is the leading marketer of corporate jets. Its brand name is well known and respected in the corporate jet market. The aircraft company relies on outside suppliers for design support and to share development costs and market risks, but Bombardier is considered the leader in determining design and marketing of its planes. For its newest plane, Bombardier has about 30 prime suppliers, and about 10 of those have been involved since the initial design phase. Bombardier is an example of a

Accepted Answer

Bombardier's role in determining the design and marketing of its planes, as well as its reliance on outside suppliers, indicates that it functions as a channel captain. The 30 prime suppliers, with 10 involved from the initial design phase, suggest that Bombardier has significant control over its supply chain and is able to coordinate the efforts of its suppliers to achieve its overall goals.

Question 4

A channel captain is

Accepted Answer

A channel captain is a member of a distribution channel that coordinates, directs, and supports other channel members. They may be a producer, wholesaler, or retailer and are responsible for ensuring that all members of the channel work together to achieve common goals. The other options provided do not accurately describe the role of a channel captain.

Question 5

Conflict occurring between intermediaries at the same level in a marketing channel, such as between two or more retailers that carry the same manufacturer's brands, is referred to as

Accepted Answer

Horizontal conflict occurs between intermediaries at the same level in a marketing channel, such as between retailers carrying the same manufacturer's brands. Corporate conflict refers to conflict within a single company. Vertical conflict occurs between different levels in a marketing channel, such as between a manufacturer and a retailer. Lateral conflict is not a commonly used term in marketing. Contractual conflict refers to conflict arising from disagreements over the terms of a contract.

Question 6

Walmart is a channel captain because of its strong image, number of outlets, and purchasing volume. The source of Walmart's power is its

Accepted Answer

Walmart's power as a channel captain primarily comes from its financial ability to reward other members due to its large purchasing volume and extensive network of outlets.

Question 7

Two sources of horizontal conflict are common, including when

Accepted Answer

The answer of Two sources of horizontal conflict are common,...

Question 8

A channel member (producer, wholesaler, or retailer) who coordinates, directs, and supports other channel members is referred to as a

Accepted Answer

A channel captain is a channel member who takes on a leadership role in coordinating and directing other members of the channel. They provide support, guidance, and assistance to ensure that the overall performance of the channel is strong.

Question 9

Activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost are referred to as

Accepted Answer

Logistics specifically deals with the planning and execution of activities related to the efficient and effective movement of goods and materials, including inventory management, transportation, and distribution. Vertical integration refers to the strategy of acquiring and managing companies that are involved in different stages of the same supply chain, while disintermediation involves eliminating intermediaries in a supply chain. Direct selling refers to the strategy of selling products directly to consumers without the use of intermediaries, and warehousing involves the storage and management of goods in a facility. Therefore, C is the best choice.

Question 10

Logistics is most closely related to which element of the marketing mix?

Accepted Answer

Logistics, which involves the transportation, warehousing, and distribution of products, is most closely related to the "place" element of the marketing mix. Place refers to the channels through which a product is made available to customers, and logistics plays a crucial role in ensuring that products are delivered to the right place at the right time.

Question 11

A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms, one of which is

Accepted Answer

Economic power is the ability to control resources and is a common way for a firm to become the channel captain. This economic power can come from factors such as having a large market share, being a large buyer, or having exclusive access to resources.

Question 12

Clothing manufacturers may compete to sell their offerings at prestigious retailer Neiman Marcus. The source of Neiman Marcus' power is ________ since distribution with this retailer may increase the status of a smaller brand.

Accepted Answer

Neiman Marcus' power comes from the channel members' desire for identification with it, as being associated with a prestigious retailer can enhance a brand's status and appeal.

Question 13

Goodyear Tire dealers became irate when Goodyear Tire Co. decided to sell its brands through Sears, Walmart, and Sam's Club. Many switched to competing tire makers. This is an example of

Accepted Answer

The answer of Goodyear Tire dealers became irate when Goodyear...

Question 14

Channel conflict occurred when American Airlines decided to terminate its relationship with Orbitz and Expedia, two online ticketing and travel sites, and sell directly through AA Direct Connect. This is an example of

Accepted Answer

This situation is an example of disintermediation, which occurs when a company bypasses traditional intermediaries (in this case, Orbitz and Expedia) to sell directly to customers. The termination of the relationship with these sites is the result of the potential conflict between American Airlines' desire to have more control over the pricing and sale of its tickets and the online travel agency's desire to maintain its control and infrastructure over this process. By eliminating these intermediaries, American Airlines can more effectively compete with other airlines and improve its customer service by offering more personalized travel options.

Question 15

Horizontal conflict refers to conflict that occurs between

Accepted Answer

Horizontal conflict occurs between two members in the same level of a marketing channel, such as two retailers or two wholesalers competing for the same customers.

Question 16

Two sources of horizontal conflict are common, including when

Accepted Answer

The answer of Two sources of horizontal conflict are common,...

Question 17

Sports Port, a motorcycle and fishing boat retailer located in a small northern Minnesota town, was the world's largest dealer for Crestliner fishing boats. To meet the demand of his many customers, the owner of Sports Port works with a wide variety of channel members, ranging from the manufacturer of the boats to trucking firms, other retailers, and even detailers (firms that clean, polish, and wax boats). Such a diverse channel of distribution often resulted in channel conflict. However, due to his strong consumer following, the owner of Sports Port had the power to resolve disputes between channel members. The owner of Sports Port serves as the ________ in the channel of distribution.

Accepted Answer

The owner of Sports Port serves as the channel captain in the channel of distribution by coordinating and directing the activities of various channel members towards achieving common goals.

Question 18

Logistics refers to

Accepted Answer

Logistics is primarily concerned with the planning, coordination, and execution of activities involved in getting goods and services from the point of origin to the point of consumption or resale. This includes managing the movement, storage, and handling of physical goods, as well as the associated information flows and financial transactions. The goal of logistics is to ensure that products are available in the right quantity, quality, and location, at the right time, and at the lowest possible cost. Option D describes this concept the most accurately. The other answer choices describe specific aspects of logistics but do not capture its full scope.

Question 19

All of the following sources produce channel conflict except which?

Accepted Answer

Vendor-managed inventory is a collaborative strategy where the supplier manages the inventory levels for the retailer, which typically reduces conflict by improving efficiency and communication.

Question 20

A marketing channel relies on ________ to make products available to consumers and industrial users.

Accepted Answer

Logistics are the physical movements of materials and goods in the supply chain. Marketing channels rely on logistics to ensure that products are available to consumers and industrial users. This includes transportation, warehousing, and inventory management.

Quiz 12: Managing Marketing Channels and Supply Chains

American Hospital Supply helps its customers (hospitals) manage inventory and streamline order processing for hundreds of medical supplies. The source of American Hospital Supply's power is its

Disintermediation refers to channel conflict that arises when

A channel captain is

Conflict occurring between intermediaries at the same level in a marketing channel, such as between two or more retailers that carry the same manufacturer's brands, is referred to as

Walmart is a channel captain because of its strong image, number of outlets, and purchasing volume. The source of Walmart's power is its

Two sources of horizontal conflict are common, including when

A channel member (producer, wholesaler, or retailer) who coordinates, directs, and supports other channel members is referred to as a

Activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost are referred to as

Logistics is most closely related to which element of the marketing mix?

A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms, one of which is

Clothing manufacturers may compete to sell their offerings at prestigious retailer Neiman Marcus. The source of Neiman Marcus' power is ________ since distribution with this retailer may increase the status of a smaller brand.

Goodyear Tire dealers became irate when Goodyear Tire Co. decided to sell its brands through Sears, Walmart, and Sam's Club. Many switched to competing tire makers. This is an example of

Channel conflict occurred when American Airlines decided to terminate its relationship with Orbitz and Expedia, two online ticketing and travel sites, and sell directly through AA Direct Connect. This is an example of

Horizontal conflict refers to conflict that occurs between

Two sources of horizontal conflict are common, including when

Logistics refers to

All of the following sources produce channel conflict except which?

A marketing channel relies on ________ to make products available to consumers and industrial users.