Question 1

In a direct channel marketing system,________.

Accepted Answer

In a direct channel marketing system, the manufacturer retains title of all products until they are delivered to the customer. This means that the manufacturer is responsible for the product until it is sold to the end customer, allowing them to have greater control over the distribution process, quality control, and customer service.

Question 2

________ buy components from manufacturers and assemble them to make their own products.

Accepted Answer

Original equipment manufacturers (OEMs) are known for purchasing components from manufacturers and assembling them to create their own final products.

Question 3

Which of the following marketing channels has the most potential for expanding customer reach at the lowest cost?

Accepted Answer

Digital marketing has the most potential for expanding customer reach at the lowest cost compared to other marketing channels. It allows businesses to reach a large audience through various online platforms such as social media, email marketing, and search engine optimization, which can be done at low or no cost. Additionally, digital marketing provides better targeting options than other channels, allowing businesses to reach specific customer segments more effectively.

Question 4

Which of the following is true of cash-and-carry wholesalers?

Accepted Answer

Cash-and-carry wholesalers do not offer credit facilities to customers. They require payment in full at the time of purchase, making it necessary for customers to carry the product themselves.

Question 5

Which of the following factors determines that a marketing channel is an indirect channel rather than a direct channel?

Accepted Answer

An indirect channel is defined by the presence of intermediaries who take ownership of the products and control distribution. In a direct channel, products are sold directly from the manufacturer to the end consumer without any intermediaries. The other factors listed do not necessarily determine whether a channel is direct or indirect.

Question 6

Which of the following is an example of an indirect B2C marketing channel?

Accepted Answer

The answer of Which of the following is an example...

Question 7

Which of the following statements is true of marketing channels?

Accepted Answer

A direct marketing channel involves selling directly to the end-user customer, which means higher margins but also higher marketing expenses that the business must bear. An indirect marketing channel involves using intermediaries such as wholesalers or retailers, which can limit the number of customers a business can reach but can also reduce expenses such as marketing costs. Small purchases can be profitably served with a direct channel as well, but this is not the defining characteristic of a direct marketing channel. OEMs can be part of either a direct or an indirect marketing channel system, so statement E is not necessarily true.

Question 8

Which of the following is the best example of a mixed marketing channel?

Accepted Answer

GTB Computers is using both its own sales force and external local dealers to sell its products, making it an example of a mixed marketing channel. Options A and E are examples of direct marketing channels, while option C is an example of a distribution channel. Option D is an example of an online retail channel.

Question 9

Which of the following is true of an indirect channel system?

Accepted Answer

In an indirect channel system, an intermediary takes over ownership and sales, making option E the correct choice. Option A is incorrect, as ownership typically transfers to the intermediary. Option B is also incorrect, as the cost of indirect sales contact is generally lower than the cost of direct sales contact. Option C is partially correct, as telemarketing and digital marketing are examples of indirect marketing channels, but it is not a complete description of an indirect channel system. Option D is incorrect, as both direct and indirect channel systems can be effective for specialized and technological products.

Question 10

Which of the following types of marketing intermediaries assumes the selling responsibility for a business and receives a commission when a sale occurs,as part of a direct channel system?

Accepted Answer

Brokers assume the selling responsibility for a business and receive a commission when a sale occurs, as part of a direct channel system. Retailers and dealers also sell products directly to consumers, but they typically own the inventory and assume greater risk. Wholesalers and commercial distributors play a role in distributing products to retailers and may not assume the selling responsibility.

Question 11

Why might a business use a combination of direct,indirect,and mixed marketing channel systems?

Accepted Answer

A combination of direct, indirect, and mixed marketing channel systems allows a business to reach different target markets cost-effectively and to deliver the service level expected by target customers. Direct channels can offer personalized service, while indirect channels allow the business to reach a wider audience. Mixed channels offer the advantages of both direct and indirect channels. This approach can help a business achieve maximum profits at minimum cost by targeting different customer segments with the most effective distribution channels.

Question 12

Which of the following benefits with respect to a customer's service needs and expectations must a business consider to determine if a channel system is viable?

Accepted Answer

Availability and delivery are directly related to a customer's service needs and expectations. If a business cannot provide the product in a timely and efficient manner, it may not be a viable channel system for customers. The other options listed are important factors to consider in general for a business, but they may not have as much impact on a customer's service needs and expectations.

Question 13

A channel system that accommodates the customers' credit needs,terms of payment,warranty needs,desire for delivery at no charge,and easy return of faulty products is satisfying the quality of ________.

Accepted Answer

Transaction services refer to the various services provided to facilitate the purchase process, including credit terms, payment options, delivery, and return policies.

Question 14

A channel system that provides a wide range of products required in order to achieve the desired level of customer appeal is satisfying the product performance factor of ________.

Accepted Answer

Assortment refers to the variety of products offered by a channel system. Providing a wide range of products can help satisfy the product performance factor of customer appeal, as customers are more likely to find what they are looking for and have a positive shopping experience.

Question 15

________ purchase a variety of equipment from several manufacturers and package them as a system.

Accepted Answer

Value-added resellers purchase equipment from various manufacturers and then add value by packaging the equipment as a complete system. They also provide additional services, such as customer support and maintenance, to enhance the value of the product to the end-user.

Question 16

In which of the following situations is a business most likely to opt for a direct rather than an indirect marketing channel system for product distribution?

Accepted Answer

When a business wants to maintain complete control over its marketing messages and the collection of payments for its products, it is more likely to opt for a direct marketing channel system. Direct marketing channel allows the business to have more control over distribution, sales and marketing activities.

Question 17

Which of the following is true of marketing using a direct marketing channel system?

Accepted Answer

C) Telemarketing allows for direct communication with potential customers, offering a personalized approach to sales. However, it requires a significant investment in human resources, making it more labor-intensive and costly compared to other direct marketing strategies.

Question 18

Pell buys disk drives from Leagate and computer chips from Lentel to incorporate into the computer systems it manufactures.Which company or companies would be considered an original equipment manufacturer (OEM)?

Accepted Answer

An original equipment manufacturer (OEM) is a company that produces parts or products that are used in another company's end product. In this scenario, Pell is the company that produces end products (computer systems) that incorporate parts from other companies (disk drives from Leagate and computer chips from Lentel). Therefore, Pell is the OEM in this situation.

Question 19

Which type of marketing channel allows a manufacturer to have the highest degree of control over service quality?

Accepted Answer

Direct marketing channels involve the manufacturer selling directly to the end consumer, bypassing any intermediaries. With this approach, the manufacturer has the highest degree of control over service quality, as they are directly responsible for providing the service.

Question 20

Paterson Inc.is a business that purchases computers,printers,modems,fax machines,software,and telecommunications equipment from several manufacturers and markets them as complete (bundled)customized systems to small businesses to meet their specific needs.What type of channel intermediary is Paterson Inc.?

Accepted Answer

Paterson Inc. adds value to the products it purchases from manufacturers by bundling them into customized systems for small businesses. This makes them a value-added reseller. A wholesaler simply purchases and resells products without adding any additional value or customization. Original equipment manufacturers are the ones who manufacture the products, not the ones who purchase and resell them. Sales agents typically do not purchase and resell products themselves, but rather facilitate sales between a manufacturer and a buyer. Distributors also typically purchase and resell products, but they do not necessarily add value or customization like Paterson Inc. does.

Quiz 9: Marketing Channels and Channel Mapping