Question 1

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

Accepted Answer

A single channel member who manages and coordinates the activities of the other members in the distribution channel is called a vertical marketing system. This member has the power to make decisions for the channel, including setting prices, promoting products, and managing inventory levels. By doing so, they can achieve low-cost, efficient distribution to satisfy the needs of the target market.

Question 2

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

The answer of Because the iPhone is such a popular...

Question 3

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

Accepted Answer

Cooperation is essential in achieving common goals in a channel. Without cooperation, conflicts and disagreements may arise, hindering the achievement of goals. Therefore, cooperation is a critical element in channel management that ensures the success of the overall channel goals and individual channel member goals.

Question 4

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 5

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

Accepted Answer

Exclusive distribution is most appropriate for luxury goods or high-end products where the manufacturer wants to maintain a certain level of exclusivity and control over the distribution channels. Rolls Royce automobiles are expensive and luxurious and therefore, exclusive distribution would be the best fit for them.

Question 6

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

Accepted Answer

Channel power refers to the ability of one member of a marketing channel to influence the goals or actions of another member. This can occur through various means such as control of resources, access to information, or the ability to impose penalties. Channel power dynamics can affect the behavior of all members of the channel and impact outcomes such as profitability and customer satisfaction.

Question 7

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

Accepted Answer

Exclusive distribution is the best choice for expensive, high-quality products that are purchased infrequently. This strategy limits the number of retailers who can sell the product, creating a certain level of exclusivity and prestige. It also allows the manufacturer to control the distribution and ensure that the product is only available in select locations that are specifically chosen to match the brand's image and target market. This approach is commonly used for luxury brands, high-end electronics, and other premium products.

Question 8

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

Accepted Answer

A single leader who controls and organizes a marketing channel is called a channel captain. This individual is responsible for coordinating the activities of the channel members and ensuring that the channel operates efficiently and effectively to serve customers. They may also be responsible for developing relationships with channel partners, negotiating contracts and agreements, and resolving conflicts that arise within the channel.

Question 9

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 10

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 involves the ownership of different levels of the distribution channel, such as a manufacturer owning its own retail outlets. Therefore, Warner Bros. selling its merchandise through its own retail outlets is an example of vertical channel integration.

Question 11

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 level of control over the promotion, display, and sale of its products indicates that they act as the "captain" in the channel. The captain has the most control and influence over the channel members and overall distribution strategy.

Question 12

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 offering larger discounts to retailers and auto repair service businesses for the Pennzoil brand of oil over the Quaker State brand of oil, IMA Wholesalers is likely to create channel conflict. This is because retailers may feel pressured to switch to Pennzoil to take advantage of the higher discounts, potentially causing issues with the suppliers of Quaker State and disrupting the balance of the channel.

Question 13

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

Accepted Answer

A tightly controlled and bureaucratic management style is not a reason why a vertically integrated channel can be more effective against competition. In fact, this type of management style can often hinder efficiency and innovation. The other options - 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.

Question 14

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

Accepted Answer

Inefficient communication between channel members can cause misunderstandings, frustration, and poorly coordinated strategies. This can lead to channel conflict, which can negatively impact the entire marketing channel. Therefore, it is important to have effective communication and coordination strategies in place to prevent channel conflict.

Question 15

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' new product, Fudge-Dipped Strawberries, is targeted toward upscale consumers, meaning the company is likely focusing on exclusivity and a high-end image. An exclusive distribution strategy would limit the number of retailers who can carry the product, reinforcing the idea that it is a high-end, luxury item.

Question 16

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

Accepted Answer

Bypassing wholesalers and selling directly to retailers is likely to create channel conflict between Dole and these wholesalers. Wholesalers may view this as a threat to their business and may react negatively, potentially damaging their relationship with Dole.

Question 17

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 18

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

The answer of Few supermarkets would try to replace a...

Question 19

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

By forcing Kroger's grocery chain to place all of its products in the stores' most favorable locations, Ralston Purina is exercising channel power. This means that Ralston Purina is using its influence and power within the channel to persuade or pressure Kroger's to do what they want. This could create tension or conflict within the channel if Kroger's disagrees or resents the demand.

Question 20

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...

Quiz 15: Marketing Channels and Supply Chain Management