Question 1

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

Accepted Answer

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

Question 2

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 between the producer and the consumer. In this case, The Bookworm eliminated the brick-and-mortar companies and started delivering books directly to customers through mail.

Question 3

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 uses both direct and indirect channels to reach its customers, which makes it a multichannel distribution system.

Question 4

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

Movie Giants is using multiple channels to distribute their DVD rentals. They are using their website as well as physical stores (Star City stores) to reach a wider range of customers. This is an example of a multichannel distribution system.

Question 5

________ 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 refers to the process of eliminating intermediaries in the distribution channel, either by going directly to final buyers or by replacing traditional intermediaries with new ones. This can happen due to various factors such as technological advancements or changes in consumer behavior.

Question 6

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 can expand sales and market coverage. This allows the company to reach a wider customer base and increase revenue potential.

Question 7

What is a conventional distribution channel?

Accepted Answer

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

Question 8

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

Accepted Answer

Toyota's network of independent franchised dealerships is a classic example of a manufacturer-sponsored retailer franchise system. Toyota provides the product (cars) to the franchisees who sell them, while adhering to specific guidelines and standards set by the manufacturer. The other options listed are not necessarily manufacturer-sponsored retailer franchise systems. McDonald's, Pizza Hut, Starbucks, Ritz Carlton, and Shangri-La are all examples of franchised retailers, but their brands are owned by corporations that are not necessarily manufacturers. Bottlers of soft drinks are not necessarily franchisees, but rather suppliers to retailers.

Question 9

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 accurately describes the nature of a conventional distribution channel. Each member of the channel is primarily focused on maximizing their own profits, which can sometimes create conflicts or inefficiencies within the overall system.

Question 10

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 it does best, it leads to greater efficiency and effectiveness in delivering products or services to the end consumer. This is because each channel member can leverage its strengths and expertise to add value to the entire process, resulting in a better customer experience and increased profits for all members involved.

Question 11

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 from different levels of the supply chain (such as manufacturers, wholesalers, and retailers) work together to create a unified and coordinated marketing approach.

Question 12

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

Accepted Answer

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

Question 13

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

Accepted Answer

The growth of the Internet has led to the rise of e-commerce and the possibility of disintermediation, where traditional brick-and-mortar companies may be cut out of the distribution channel. This poses a threat to companies that have not adapted to the changing landscape. The other options are not true: developing new channels can often cause conflict with established channels, product and service producers may need to use multiple channels to remain competitive, companies have more channel options due to technology, and advances in technology have actually increased the number of channels available to entrepreneurial firms.

Question 14

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

Accepted Answer

Vertical conflict occurs among firms at different levels of the channel, such as between manufacturers and wholesalers, or between wholesalers and retailers.

Question 15

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 16

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

Accepted Answer

The answer of Horizontal conflicts are conflicts between different levels...

Question 17

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

Accepted Answer

The answer of A non-corporate VMS integrates successive stages of...

Question 18

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

Accepted Answer

The answer of Which of the following is a disadvantage...

Question 19

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

Accepted Answer

Disintermediation refers to the process of eliminating traditional intermediaries in a distribution channel by introducing new types of intermediaries, often enabled by new technologies. This can lead to significant changes in the way products and services are bought and sold.

Question 20

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

Accepted Answer

A multichannel distribution system involves a single firm setting up two or more marketing channels to reach one or more customer segments. This can include selling through retail stores, online, through wholesalers, and more. This allows the firm to reach a wider range of customers and offer more convenience and options to those customers.

Quiz 12: Marketing Channels: Delivering Customer Value