Question 1

Describe the legal aspects of exclusive arrangements such as exclusive dealing and exclusive distribution.

Accepted Answer

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Question 2

Which of the following is true of an exclusive dealing arrangement between a producer and a dealer?

Accepted Answer

Exclusive dealing arrangements restrict the dealer from purchasing products from other producers, thus not allowing other producers to sell to that dealer.

Question 3

Exclusive dealing that creates a monopoly comes under the scope of the Clayton Act of 1914.

Accepted Answer

Exclusive dealing is a practice where a buyer is obliged to buy all or a substantial amount of its requirements of a particular product or service from a particular seller. If this practice creates a monopoly or tends to create a monopoly, it falls under the scope of the Clayton Act of 1914. The Clayton Act prohibits exclusive dealing agreements that substantially lessen competition or tend to create a monopoly.

Question 4

Outbound logistics refers to moving .

Accepted Answer

Outbound logistics involves the processes related to the movement of finished products from the factory to resellers and ultimately to customers.

Question 5

is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of the producer's merchandise.

Accepted Answer

Full-line forcing is a practice where a producer requires a dealer to sell its entire line of products as a condition for selling a particular brand.

Question 6

Full-line forcing is considered an illegal arrangement that violates the Competition Act.

Accepted Answer

Full-line forcing is not inherently illegal under the Competition Act; it may be scrutinized if it substantially lessens competition or creates a monopoly.

Question 7

Many companies are now installing integrated high-tech partnership relationship management (PRM) systems to coordinate their whole-channel marketing efforts.

Accepted Answer

Many companies are adopting PRM systems to enhance collaboration and coordination with their partners, improving overall channel marketing strategies.

Question 8

Differentiate between intensive distribution, exclusive distribution, and selective distribution strategies. Provide examples of products that would be appropriate for each.

Accepted Answer

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Question 9

Selective distribution is a strategy in which producers of convenience goods stock their products in as many outlets as possible.

Accepted Answer

Selective distribution involves limiting the number of outlets that carry a product, typically used for products that require a certain level of service or expertise, unlike convenience goods which are widely available.

Question 10

Customer relationship management software is used for selecting, managing, and motivating individual channel members and evaluating their performance over time.

Accepted Answer

Customer relationship management (CRM) software is primarily used for managing a company's interactions with current and potential customers, not for managing channel members.

Question 11

What are the responsibilities of channel members?

Accepted Answer

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Question 12

Many athletic stadiums enter into contractual agreements with national beverage companies and food franchises to distribute only their brand-name products at the respective venues. This is an example of .

Accepted Answer

This is an example of exclusive dealing, where a supplier requires that a retailer or distributor only sell their products, excluding competitors' products.

Question 13

Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman Gray's products at their outlets. What kind of marketing strategy has Bateman Gray adopted with its car dealers?

Accepted Answer

Bateman Gray Motors has adopted an exclusive dealing strategy, where dealers are dedicated to selling only Bateman Gray's products, preventing them from selling competitors' products.

Question 14

How does a company determine its channel objectives? What factors influence the channel objectives of a company?

Accepted Answer

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Question 15

In exclusive dealing, a producer may agree not to sell to other dealers in a given area.

Accepted Answer

In exclusive dealing, a producer may agree to only sell to one particular dealer in a given area, thereby agreeing not to sell to other dealers in that area.

Question 16

What criteria should a firm consider before choosing a channel alternative?

Accepted Answer

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Question 17

Moving products and materials from suppliers to the factory is known as _ logistics.

Accepted Answer

Inbound logistics involves the movement of products and materials from suppliers to the factory.

Question 18

Which of the following is an advantage of exclusive dealing between a seller and a dealer?

Accepted Answer

Exclusive dealing strengthens the relationship between the seller and the dealer, ensuring that the dealer receives consistent support from the seller, which can enhance customer service and reinforce the seller's market position.

Question 19

Given Coke's (Coca Cola) availability in many different locations, from restaurants to grocery stores, to vending machines, and the product availability at many major events, it is safe to suggest that Coke uses selective distribution.

Accepted Answer

Coke uses intensive distribution, not selective distribution, as it aims to be available in as many locations as possible to maximize consumer access and convenience.

Question 20

How do companies generally manage and motivate their channel members? What technological tools are available to help with this task?

Accepted Answer

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Quiz 10: Marketing Channels: Delivering Customer Value