Question 1

Atlas Imports and Exports sells products directly to consumers via the Atlas Web site, and through local retailers as well. Which of the following is evident here?

Accepted Answer

Atlas Imports and Exports is using a multichannel distribution system by selling products directly to consumers through their website and also through local retailers.

Question 2

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

Accepted Answer

Adding new channels in a multichannel distribution system can lead to decreased control over the system, as managing multiple channels often complicates coordination and consistency across the distribution network.

Question 3

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

Accepted Answer

The answer of What is vertical conflict? Illustrate your answer...

Question 4

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

Accepted Answer

Vertical conflict actually occurs between different levels in the distribution channel, such as a manufacturer and a retailer.

Question 5

A marketing channel works most effectively when each channel member performs the tasks it does best.

Accepted Answer

When each channel member performs the tasks that they do best, it leads to a more efficient and effective marketing channel. This is because each member can focus on their area of expertise, reducing errors and optimizing their contribution to the overall success of the channel.

Question 6

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

Accepted Answer

In a vertical marketing system, companies at different levels of the distribution channel (e.g. manufacturer, wholesaler, retailer) join together to achieve more efficient and effective marketing operations.

Question 7

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

Accepted Answer

Disintermediation refers to the removal of traditional intermediaries between producers and consumers, often due to the introduction of new technologies or business models. These new intermediaries can completely replace the traditional ones or significantly alter the roles and power dynamics within the channel.

Question 8

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

Accepted Answer

Horizontal conflicts occur between firms at the same level of the channel, such as two retailers or two wholesalers, not between different levels.

Question 9

When McDonald's offers its products inside of a Walmart store, it is using a(n) ________.

Accepted Answer

The answer of When McDonald's offers its products inside of...

Question 10

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

Accepted Answer

A non-corporate VMS (Vertical Marketing System) involves coordination among members at different stages of production and distribution through contractual agreements or cooperative programs, not single ownership.

Question 11

Movie Giants offers DVD rentals through its Web site. It also offers DVD rentals via Star City stores. This is an example of a(n)________ distribution system.

Accepted Answer

This is an example of a multichannel distribution system as Movie Giants offers DVD rentals through both its website and physical Star City stores.

Question 12

What is a conventional distribution channel?

Accepted Answer

The answer of What is a conventional distribution channel?...

Question 13

A(n) ________ system involves a single firm setting up two or more marketing channels to reach one or more customer segments.

Accepted Answer

Multichannel distribution involves a single firm setting up two or more marketing channels to reach one or more customer segments. The other options are not specific to this scenario or entail different types of marketing systems.

Question 14

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

Accepted Answer

Disintermediation refers to the elimination of intermediaries, such as brick-and-mortar companies, and directly delivering products or services to customers. Therefore, The Bookworm's decision to deliver books through mail instead of selling through physical stores is an example of disintermediation.

Question 15

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

Accepted Answer

The answer of What is horizontal conflict? Illustrate your answer...

Question 16

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.

Accepted Answer

This statement is true. Each member of the conventional distribution channel is motivated by their own profit goals and may prioritize their own interests over the success of the entire system.

Question 17

________ 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 can be facilitated by the growth of online retailing and e-commerce platforms.

Question 18

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

Accepted Answer

Adding new channels in a multichannel distribution system leads to the expansion of sales and market coverage. This is because additional channels create more opportunities for customers to purchase products and thus expand the reach of the company.

Question 19

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

Accepted Answer

The growth of the internet has allowed for new types of distribution channels to be created, such as e-commerce websites and online marketplaces. This has led to the threat of disintermediation for traditional brick-and-mortar companies who may struggle to compete with these new channels.

Question 20

Which of the following is most likely a manufacturer-sponsored retailer franchise system?

Accepted Answer

Toyota and its network of independent franchised dealers is the most likely example of a manufacturer-sponsored retailer franchise system. In this system, the manufacturer (Toyota) grants licenses to independent dealers to sell its products. The dealers are typically required to follow specific marketing and operational guidelines set by the manufacturer, and they may receive various forms of support or assistance from the manufacturer. This is in contrast to other options listed, such as licensed bottlers (D) who operate under the authorization of the manufacturer but are not directly franchised by the manufacturer.

Quiz 12: Marketing Channels: Delivering Customer Value