Question 1

Compare a conventional distribution channel with a vertical marketing system (VMS).

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Question 2

What is horizontal conflict? Illustrate your answer with an example.

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Question 3

A conventional distribution channel consists of one or more independent producers, wholesalers, and retailers; each seeking to maximize its own profits, perhaps even at the expense of the system as a whole.

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A conventional distribution channel consists of independent firms, which means each firm is trying to maximize its own profits. This can sometimes lead to conflicts of interest and competition within the channel.

Question 4

Which of the following is true of changes in the organization of distribution channels?

Accepted Answer

The growth of the Internet has provided new channels for distribution and has also threatened traditional brick-and-mortar companies with disintermediation by allowing producers to sell directly to consumers. The other options are incorrect as they do not reflect the current trend in the organization of distribution channels.

Question 5

A non-corporate VMS integrates successive stages of production and distribution under single ownership.

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Question 6

How can a firm benefit from participating in a horizontal marketing system?

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Question 7

Explain channel power in a vertical marketing system.

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Question 8

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.
-What distribution strategy does Giant Beanstalks use?

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Question 9

What is vertical conflict? Illustrate your answer with an example.

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Question 10

Vertical conflict occurs among firms at the same level of the channel.

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Vertical conflict occurs between different levels of the channel, such as between manufacturers and wholesalers or between wholesalers and retailers. Conflict among firms at the same level of the channel is called horizontal conflict.

Question 11

Give an example of a multichannel distribution system.

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Question 12

What is a conventional distribution channel?

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Question 13

The Bookworm began delivering books directly to customers through mail instead of selling through brick-and-mortar companies. This is an example of ________.

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Disintermediation refers to the removal of intermediaries, such as brick-and-mortar companies, from a distribution channel. In this case, The Bookworm is delivering books directly to customers, bypassing the need for intermediaries.

Question 14

________ occurs when product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones.

Accepted Answer

Disintermediation occurs when producers bypass intermediaries and sell directly to final buyers, or when new types of intermediaries replace traditional ones. This is often facilitated by advancements in technology, such as online marketplaces and e-commerce platforms.

Question 15

Disintermediation occurs when radically new types of channel intermediaries displace traditional ones.

Accepted Answer

Disintermediation refers to the process where new intermediaries in channels of distribution displace the traditional ones. This usually happens due to technological advances, such as the rise of e-commerce and direct-to-consumer models that eliminate the need for middlemen.

Question 16

Which of the following is a disadvantage of adding new channels in a multichannel distribution system?

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Question 17

Horizontal conflicts are conflicts between different levels of the same channel.

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Question 18

How can a firm benefit from involvement in a contractual VMS?

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Question 19

In a vertical marketing system, two or more companies at one level join together to take advantage of a new marketing opportunity.

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In a vertical marketing system, companies at different levels of the supply chain (such as manufacturers, wholesalers, and retailers) join together to achieve greater efficiency and coordination.

Question 20

What are the advantages of multichannel distribution systems?

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Quiz 12: Marketing Channels: Delivering Customer Value