Question 1

Marketers using multichannels gain sales with each new channel but also risk offending existing channels.

Accepted Answer

Marketers using multichannels can gain sales by being available to customers through different channels, but they also risk offending existing channels if they do not manage their channels effectively. For example, if a customer receives a different offer or discount through one channel compared to another, they may feel unfairly treated and be less likely to engage with that channel in the future. Marketers must ensure that their messaging is consistent across all channels and that customers are not being treated differently based on the channel they use.

Question 2

A major role played by intermediaries is to buy large quantities of products from many producers and break them down into the smaller quantities and broader assortments wanted by consumers.

Accepted Answer

This statement is true. Intermediaries such as wholesalers and retailers often purchase products in bulk from producers and then redistribute them in smaller quantities to consumers with a variety of product options.

Question 3

Marketing channels are a major part of any marketing logistics network and involve the interaction of ________ to bring the goods and services to the marketplace.

Accepted Answer

The answer of Marketing channels are a major part of...

Question 4

When the dry cleaners and the laundromat in your home town join forces to follow a new marketing opportunity,they are forming a horizontal marketing network.

Accepted Answer

The dry cleaners and laundromat are complementary businesses that can work together to attract more customers. By forming a horizontal marketing network, they can combine their resources and expertise to offer a more convenient and comprehensive laundry experience to their customers.

Question 5

In a direct marketing channel,which has no intermediary levels,the company sells directly to consumers.

Accepted Answer

In a direct marketing channel, the company sells directly to consumers without any intermediary levels.

Question 6

The manager of the local McDonald's franchise in Bankstown had recently had her request to participate in cooperative advertising,like the other McDonald's in her district,refused by Head Office.Now she is irritated and demands fairness in treatment.This is an example of horizontal conflict.

Accepted Answer

This is an example of vertical conflict, as it involves a disagreement between different levels of the same organization (the local franchise manager and the Head Office), rather than between entities at the same level (which would be horizontal conflict).

Question 7

A(n)________ VMN is a vertical marketing network that combines successive stages of production and distribution under single ownership;channel leadership is established through common ownership.

Accepted Answer

The answer of A(n)________ VMN is a vertical marketing network...

Question 8

A marketing ________ is a set of interdependent organisations involved in the process of making a product or service available to users.

Accepted Answer

The answer of A marketing ________ is a set of...

Question 9

The use of intermediaries largely reflects their greater ________ in making goods available to target markets.

Accepted Answer

The answer of The use of intermediaries largely reflects their...

Question 10

A(n)________ marketing network is one in which two or more companies at one level join together to follow a new marketing opportunity.

Accepted Answer

The answer of A(n)________ marketing network is one in which...

Question 11

Disintermediation involves restructuring marketing channels to deal more directly with customers.

Accepted Answer

Disintermediation involves removing intermediaries in marketing channels and dealing more directly with customers.

Question 12

The three main types of franchises are manufacturer-sponsored retailers,manufacturer-sponsored wholesalers and service-firm-sponsored retailers.

Accepted Answer

This statement correctly identifies the three main types of franchises.

Question 13

In a conventional distribution channel,no channel member has much control over the other members,and no formal means exists for assigning roles and resolving channel conflict.

Accepted Answer

The answer of In a conventional distribution channel,no channel member...

Question 14

Although channel members are dependent on one another,disagreements can and do occur.Such disagreements are known as channel ________.

Accepted Answer

The answer of Although channel members are dependent on one...

Question 15

________ conflict is conflict between firms at the same level of the channel.

Accepted Answer

The answer of ________ conflict is conflict between firms at...

Question 16

Members of the marketing channel may help a company complete transactions by performing key functions such as promotion and negotiation.

Accepted Answer

Members of the marketing channel, such as wholesalers and retailers, can assist a company in completing transactions by conducting promotional activities and negotiating deals with customers.

Question 17

Allfarmers Produce Company has a route selling to more than 100 groceries,schools and restaurants at wholesale prices.Last week the owners opened up a walk-in discounted consumer produce outlet in the local town.It is now using a multichannel network.

Accepted Answer

The statement mentions that Allfarmers Produce Company opened up a walk-in discounted consumer produce outlet, which adds a new channel to their existing network of selling to groceries, schools, and restaurants. Therefore, the statement is true, and the company is now using a multichannel network.

Question 18

The producer and the final consumer are part of every type of marketing channel.

Accepted Answer

Both the producer and the final consumer are essential participants in any marketing channel, as the producer creates the product and the final consumer ultimately purchases and uses it.

Question 19

Channel conflict is always damaging and managers should do all they can to eradicate it altogether.

Accepted Answer

Channel conflict is not always damaging and may even be beneficial in certain situations. For example, healthy competition between channels can lead to better performance and increased sales. However, managers should work to minimize and manage any negative effects of channel conflict, such as customer confusion or channel partner resentment.

Question 20

When Haynes,a Ballarat paint manufacturer,has single ownership of integrated,successive stages of production and distribution,it has created a corporate VMS.

Accepted Answer

A corporate vertical marketing system (VMS) occurs when a single entity owns and manages multiple stages of the supply chain, such as production, distribution, and retail. In this scenario, Haynes has single ownership over the production and distribution processes, indicating the presence of a corporate VMS.

Quiz 10: Pricing Strategies: Understanding and Capturing Customer Value