Question 1

Integrated channel relationships tend to be more flexible than cooperative relationships.

Accepted Answer

Cooperative relationships are the more flexible.

Question 2

A consumer stopped by the convenience store to buy a bag of charcoal briquettes.She only needs one bag,but the manufacturer produces millions of bags.For consumers,the convenience store overcomes a discrepancy of dimensions.

Accepted Answer

The store overcomes the discrepancy of quantity.

Question 3

Carl represents a manufacturer of floor coverings and gets paid a commission for finding buyers and linking them up with the manufacturer.Carl is an example of a merchant wholesaler

Accepted Answer

This defines an agent or broker.

Question 4

LoneStar Bar & Grill is a small chain of restaurants that feature marinated steaks.The marinade is so popular that LoneStar sells it at its restaurants and also sells it at Kroger supermarkets.This is an example of intensive distribution.

Accepted Answer

This is an example of dual distribution (multiple distribution),which occurs when a producer selects two (or more)channels to distribute the same product to target markets.To be intensive distribution,LoneStar would have to offer the product through discount stores,drugstores,supermarkets,and so on.

Question 5

A merchant wholesaler is an institution that buys goods from manufacturers and resells them to businesses,government agencies,and other wholesalers or retailers.

Accepted Answer

A merchant wholesaler is defined as an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers, making the statement true.

Question 6

The three basic functions a channel intermediary provides are transactional,logistical,and facilitating functions.

Accepted Answer

This statement is true. Channel intermediaries provide transactional functions such as order taking and payment processing, logistical functions such as transportation and warehousing, and facilitating functions such as market research and promotion.

Question 7

Tammy Bowles makes handmade,wooden children's toys,which she sells online to end users.Tammy does not use channel intermediaries,which means she uses a direct channel.

Accepted Answer

Tammy is using a direct channel by selling her handmade, wooden toys online to end users without the use of intermediaries.

Question 8

Highly integrated channel relationships are the preferred relationship because there is no large outlay of assets required to keep the channel members all working toward the same results.

Accepted Answer

Highly integrated channel relationships require significant costs and/or risks.

Question 9

Metallurgical Designs makes gold and silver charms for necklaces and bracelets.It markets its charms to a few retailers in any one region and promotes them intensively to those retailers.This is an example of intensive distribution.

Accepted Answer

Intensive distribution means the product is available in every outlet the potential customer might want to buy it,not to just a few retailers.

Question 10

A marketing channel is a set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.

Accepted Answer

This is the definition of a marketing channel as stated by the American Marketing Association.

Question 11

Reciprocal conflict occurs among channel members on the same level,such as two or more different wholesalers or two or more different retailers that handle the same manufacturer's brands.

Accepted Answer

This is referred to as horizontal conflict.

Question 12

Transactional functions include contacting potential customers and assuming the risk of owning inventory.

Accepted Answer

Transactional functions involve activities such as selling, promoting, and marketing products or services to potential customers. Assuming the risk of owning inventory is also considered a transactional function as it involves managing the flow of goods and services in the supply chain.

Question 13

The direct channel is used more often in consumer markets than in business-to-business markets.

Accepted Answer

The direct channel is used more often in business-to-business markets than in consumer markets.

Question 14

As products move through the marketing channel,channel members provide specialization and division of labor,overcome discrepancies,and provide contact efficiency.

Accepted Answer

This statement is true as channel members play significant roles in providing specialization and division of labor, minimizing discrepancies between different stages of the channel, and ensuring efficient contact and communication between different parties involved in the marketing process.

Question 15

An international consumer products manufacturer requires all of its suppliers to provide the lowest possible cost and to adhere to a just-in-time inventory system.Wholesalers and manufacturers generally yield to the authority of this large manufacturer.This consumer products manufacturer exercises channel power.

Accepted Answer

The use of a just-in-time inventory system and a demand for the lowest possible cost indicates that the consumer products manufacturer has significant power over its suppliers, suggesting the use of channel power.

Question 16

Exclusive distribution increases direct competition among retailers.

Accepted Answer

An exclusive distribution arrangement shields a dealer from direct competition and enables it to be the main beneficiary of the manufacturer's promotion efforts in that geographic area.

Question 17

Shopping goods are usually distributed selectively.Consumers are willing to look around for them but may not be willing to search or travel extensively to acquire the product.

Accepted Answer

Shopping goods are typically products that consumers are willing to shop around for or compare various options, but they are not generally willing to go to extreme lengths to acquire them. Examples of shopping goods include clothing, electronics, and furniture.

Question 18

Consider a scenario in which there are five manufacturers,no intermediaries,and four consumers.Twenty transactions would be required for each consumer to receive products from each manufacturer.The introduction of one intermediary reduces the required number of transactions to four and demonstrates the idea of contact efficiency.

Accepted Answer

Introducing one intermediary reduces the required number of transactions to nine.

Question 19

The Beistle Company manufactures Halloween decorations year-round,but customer demand is concentrated only during the month of October.By maintaining inventories of the Beistle Company's products,marketing channels overcome this spatial discrepancy.

Accepted Answer

This is an example of overcoming a temporal discrepancy.

Question 20

At one end of the channel relationship continuum is the "Arm's-Length" relationship.

Accepted Answer

In an arm's-length relationship, there is limited or no collaboration or communication between the parties and each operates independently.

Quiz 13: Marketing Channels