Question 1

Because the iPhone is such a popular product and the company is so powerful,Apple,Inc.is in a position to exert considerable control over channel structures and the way the iPhone is marketed.This is an illustration of channel ____ in the distribution channel.

Accepted Answer

Apple's ability to control channel structures and marketing strategies for the iPhone demonstrates channel leadership, where a dominant company influences the actions and decisions of other channel members.

Question 2

Goodyear allows companies like Sears and Discount Tire to distribute and discount its tires.This action significantly increases the possibility of channel ____ with independent Goodyear dealers.

Accepted Answer

Allowing multiple distributors to sell the same product can lead to competition among channels, potentially causing disagreements or disputes, hence channel conflict.

Question 3

Durable goods such as television sets and appliances generally reach their target markets through ____;goods such as car batteries and tires generally reach their target markets through _____.

Accepted Answer

The answer of Durable goods such as television sets and...

Question 4

The reasons a vertically integrated channel can be more effective against competition is because of all of the following except

Accepted Answer

The tightly controlled and bureaucratic management style is not a reason why a vertically integrated channel can be more effective against competition. In fact, such a management style can often hinder communication and responsiveness, making the channel less effective. The other choices - consolidation of power, ability to inhibit competitors, sharing of responsibilities and information, and increased bargaining power - are all potential advantages of a vertically integrated channel over competitors.

Question 5

When a single channel member manages an integrated marketing channel to achieve low-cost,efficient distribution for satisfying target markets,____ exists.

Accepted Answer

A vertical marketing system refers to a channel arrangement in which a single channel member, typically a manufacturer or a retailer, coordinates and manages the entire channel to achieve efficient and cost-effective distribution. This type of system allows for closer control and coordination of marketing activities from production to sales, leading to better communication, higher efficiency, and lower costs. Therefore, the situation described in the question is an example of a vertical marketing system.

Question 6

Product and target market characteristics usually determine the type of coverage a product receives.For which of the following products is selective distribution most appropriate?

Accepted Answer

The answer of Product and target market characteristics usually determine...

Question 7

When produce companies such as Dole Bananas bypass wholesalers and sell directly to retailers,it is likely to _____

Accepted Answer

When produce companies such as Dole Bananas bypass wholesalers and sell directly to retailers, it is likely to create channel conflict between Dole and these wholesalers. Wholesalers may feel threatened by the manufacturer's decision to bypass them and sell directly to retailers, causing conflict in the channel.

Question 8

Honey Farms is a maker of fine chocolates.The company's latest product,Fudge-Dipped Strawberries,is the premier product in its Fudge-Dipped line.The product is very expensive and targeted to upscale consumers.Which form of distribution would Honey Farms be likely to use for its new product?

Accepted Answer

Honey Farms is targeting upscale consumers with an expensive product, so it is likely that they will use exclusive distribution. This form of distribution is characterized by limited availability and is often used for luxury products, such as high-end fashion items, jewelry, and exotic cars. By using exclusive distribution, Honey Farms can cultivate an aura of exclusivity around their Fudge-Dipped Strawberries and command higher prices for them.

Question 9

Overall channel goals and individual channel member goals cannot be achieved together without

Accepted Answer

Cooperation is essential in achieving both overall channel goals and individual channel member goals without conflict. It requires each member to work together towards a common goal, communicate effectively, and support each other in their respective roles. Without cooperation, achieving these goals will be challenging and may lead to conflict within the channel.

Question 10

Vertical channel integration

Accepted Answer

Vertical channel integration occurs when a company expands its operations into areas that are at different points on the same production path, such as when a retailer purchases a wholesaler or a manufacturer. This is often achieved by purchasing the operations of a link in the channel, thereby integrating different stages of production and distribution under a single management.

Question 11

IMA Wholesalers is a distributor of car repair parts and supplies,selling to both retailers and auto repair service businesses.Recently,IMA has been promoting the Pennzoil brand of oil over the Quaker State brand of oil by offering larger discounts to the channel members.If IMA continues to do this,____ is likely to result.

Accepted Answer

By promoting one brand over another through larger discounts, IMA Wholesalers may create channel conflict with retailers or auto repair service businesses who prefer the Quaker State brand. This can lead to resentment and even a breakdown in the relationship between IMA and its channel members.

Question 12

Marketing channel members are likely to experience misunderstandings,frustration,and poorly coordinated strategies as a result of

Accepted Answer

Inefficient communication between channel members is a common cause of channel conflict, which can lead to misunderstandings, frustration, and poorly coordinated strategies among the different members of the channel. This is because each member may have their own goals, incentives, and preferences, which may not align with those of the other members. Misunderstandings can occur when there is a lack of clarity or transparency about each member's role, responsibilities, and expectations. Frustration can arise when there are conflicting demands, delays, or errors in the fulfillment of orders or services. Poorly coordinated strategies can result in wasted resources, lost sales, or damaged reputation. Therefore, it is important for channel members to establish effective communication channels, such as regular meetings, joint planning sessions, and shared data systems, to minimize the risk of channel conflict and improve channel performance.

Question 13

When one company in a marketing channel has the ability to influence another member's goal achievement,the company has

Accepted Answer

The company has channel power when it has the ability to influence another member's goal achievement. Channel power is the ability of one member of a marketing channel to influence the actions of other channel members.

Question 14

For which of the following products would exclusive distribution be most appropriate?

Accepted Answer

Exclusive distribution is a strategy in which a manufacturer chooses to distribute its products through a limited number of outlets in a particular geographic area. The Rolls Royce automobile is a luxury car with a target market of high-income consumers. The brand image is associated with exclusivity and high status. Therefore, exclusive distribution is the most appropriate strategy for Rolls Royce to maintain its brand image and target its desired customer base.

Question 15

A single leader who controls and organizes a marketing channel is called a

Accepted Answer

The single leader who controls and organizes a marketing channel is known as a channel captain. The channel captain is usually the manufacturer, producer, or a dominant player in the channel, and is responsible for coordinating the activities and facilitating communication among the various channel members to achieve the most efficient and effective distribution of goods and services. The channel captain is also responsible for solving conflicts, managing channel performance, and making strategic decisions for the channel.

Question 16

Warner Bros.sells cookie jars,puzzles,photo albums,and other items featuring its popular cartoon characters directly through its own retail outlets.This is an example of

Accepted Answer

Vertical channel integration refers to a situation where a manufacturer and retailer own the same company, as both the manufacturer (Warner Bros.) and retailer (its own retail outlets) are owned by the same parent company. This allows for seamless integration and coordination between the production and distribution of the merchandise featuring its popular cartoon characters.

Question 17

Expensive,high-quality products that are purchased infrequently often reach consumers through

Accepted Answer

Expensive, high-quality products that are purchased infrequently are often distributed exclusively to a select few retailers to maintain a certain level of prestige and exclusivity. This is known as exclusive distribution.

Question 18

If Ralston Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations,it would be

Accepted Answer

Ralston Purina would be exercising channel power by leveraging its position as the supplier to Kroger's and forcing them to place their products in the most favorable locations in the store. This demonstrates Ralston Purina's ability to influence the actions of Kroger's and highlights the power dynamics within the channel relationship.

Question 19

Few supermarkets would try to replace a national brand of baby food with their own brand.Assuming that this is true,we have a good example of channel leadership by

Accepted Answer

Producers of national brands often have strong brand recognition and consumer loyalty, which gives them channel leadership and makes it difficult for retailers to replace them with their own brands.

Question 20

Nike maintains a good deal of control over how its products are promoted,displayed,and sold.Because of this control,Nike would be appropriately described as the channel

Accepted Answer

Nike's control over how its products are promoted, displayed, and sold makes it the captain of its distribution channel, as it exercises a high degree of influence on the marketing and distribution of its products.

Quiz 15: Marketing Channels and Supply-Chain Management