Question 1

Conflict that occurs between different levels of the same marketing channel is known as ________ conflict.

Accepted Answer

Vertical conflict refers to disagreement or discord that arises between members of the same marketing channel but operate on different levels of the distribution chain (such as between manufacturers and wholesalers, or between wholesalers and retailers). Horizontal conflict, on the other hand, refers to tension and competition that sometimes arises between members at the same level of the distribution chain (such as between multiple retailers carrying the same product). Multitiered, equilateral, and communal conflict are not commonly used terms in marketing and do not apply to this scenario.

Question 2

Downstream marketing channel partners, such as wholesalers and retailers, form a vital link between the firm and its customers.

Accepted Answer

Downstream marketing channel partners play an important role in reaching the end consumers and delivering value to them through the products and services offered by the firm. They help in distributing, promoting, and pricing the products, thereby increasing their availability and accessibility to the target audience. Hence, they form a critical link in the marketing channel that connects the company with its customers.

Question 3

Provide an example of a company that has used an imaginative distribution system to gain a competitive advantage.

Accepted Answer

The answer of Provide an example of a company that...

Question 4

Refer to the scenario below to answer the following question(s).
Giant Beanstalks is a company based in Maryland that processes and cans vegetables. It has contracts with several large farms in Riverdale, 80 miles away from the factory, that agree to sell their produce to Giant Beanstalks. The company's products are available to the public only through Greenleaf, a grocery chain with 38 stores in the country.
-Which of the following is Giant Beanstalks' upstream partner?

Accepted Answer

Giant Beanstalks' upstream partner is the farmers of Riverdale, who supply the raw produce to the company for processing and canning.

Question 5

Conflict that occurs among firms at the same level of the marketing channel is known as ________ conflict.

Accepted Answer

Horizontal conflict occurs among firms at the same level of the marketing channel, such as between two retailers or two manufacturers. Multitiered conflict occurs between different levels of the marketing channel, vertical conflict occurs between a manufacturer and a retailer, and prolonged conflict is not a recognized type of marketing conflict. Financial conflict is not a commonly used term in marketing, although financial disagreements could lead to other types of conflict.

Question 6

Producers use intermediaries because they create greater efficiency in making goods available to target markets.

Accepted Answer

Intermediaries help producers in reaching their target markets by providing distribution channels, marketing expertise, and inventory management which results in greater efficiency and effectiveness in making goods available to the target markets.

Question 7

The number of products supplied indicates the length of a channel.

Accepted Answer

The number of products supplied does not necessarily indicate the length of a channel. A channel can consist of a few or many products depending on the specific distribution strategy or product offering.

Question 8

When KFC came into conflict with its franchisees over the brand's Unthink KFC repositioning, which emphasized grilled chicken over its traditional Kentucky fried chicken, KFC experienced ________ conflict.

Accepted Answer

Vertical conflict occurs between different levels of the same channel, such as between a franchisor and its franchisees, as in the case of KFC and its franchisees.

Question 9

How do intermediaries add value to a marketing system?

Accepted Answer

The answer of How do intermediaries add value to a...

Question 10

In a direct marketing channel, the producer sells directly to the intermediaries, who in turn sell directly to the customers.

Accepted Answer

In a direct marketing channel, the producer sells directly to the customers without any intermediaries involved.

Question 11

Each layer of marketing intermediaries that performs some work in bringing the product and its ownership closer to the final buyer is a channel level.

Accepted Answer

This statement is true. Each layer of marketing intermediaries, such as wholesalers or retailers, plays a role in getting the product to the final buyer, which makes up a channel level. The more channel levels there are, the longer the distribution channel and the more intermediaries involved in the process.

Question 12

Which of the following is true of channel members?

Accepted Answer

Channel members play specialized roles in the distribution process, with each member adding value to the overall system. These roles can include manufacturers, wholesalers, retailers, and other intermediaries who work together to move products from the manufacturer to the end consumer. It is important for these members to work together and coordinate their activities in order to ensure the smooth functioning of the distribution channel.

Question 13

The management of two Panizza restaurants has an ongoing disagreement over the discount rate given to students from the local high school. This is an example of ________ conflict.

Accepted Answer

The answer of The management of two Panizza restaurants has...

Question 14

The role of marketing intermediaries is to transform the assortments of products made by retailers into the assortments wanted by producers.

Accepted Answer

The role of marketing intermediaries is to transform the assortments of products made by producers into the assortments wanted by retailers and ultimately, consumers.

Question 15

Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ________ conflict.

Accepted Answer

The conflict described in the scenario is between two hotels within the same chain, therefore it is a horizontal conflict.

Question 16

________ are complex behavioral systems in which people and companies interact to accomplish individual, company, and channel goals.

Accepted Answer

Distribution channels are the systems in which people and companies interact to accomplish individual, company, and channel goals. Customer relationship management systems, partner relationship systems, consumer bases, and buying centers all play a role within distribution channels, but they are not the same as distribution channels themselves.

Question 17

Why is the term value delivery network a more relevant expression to use than the term supply chain or demand chain ?

Accepted Answer

The answer of Why is the term value delivery network...

Question 18

Which of the following is a type of flow that connects all institutions in a marketing channel?

Accepted Answer

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Question 19

A company's channel decisions directly affect the prices of its products.

Accepted Answer

The channel decisions made by a company can impact the costs associated with distributing its products, which can in turn affect the price of the product. For example, choosing to sell through expensive retail channels versus selling online through a cost-effective platform can lead to differences in pricing strategies.

Question 20

What are the key functions that members of the marketing channel perform?

Accepted Answer

The answer of What are the key functions that members...

Quiz 12: Marketing Channels: Delivering Customer Value