Question 1

Distribution strategies can be __________________.
A)Intensive
B)Selective
C)Exclusive
D)Both intensive and exclusive
E)Intensive, Selective, and Exclusive

Accepted Answer

Distribution intensity refers to the number of intermediaries involved in distributing the product. Distribution strategies can be intensive, selective, or exclusive.

Question 2

______________ involves an explicit or implicit threat that a channel captain will invoke negative consequences on a channel member if it does not comply with the leader's request or expectations.
A)Coercive power
B)Reward power
C)Expert power
D)Referent power
E)Legitimate power

Accepted Answer

Coercive power involves an explicit or implicit threat that a channel captain will invoke negative consequences on a channel member if it does not comply with the leader's request or expectations.

Question 3

Unresolved channel conflict can result not only in an uncooperative and inefficient channel,but it can also ultimately impact end-user consumers through ________________.
A)Inferior products
B)Spotty inventory
C)Higher prices
D)Both inferior products and spotty inventory
E)Inferior products, Spotty inventory, and Higher prices

Accepted Answer

Power can directly influence the relationships within the channel. Ultimately, channel conflict can occur in which channel members experience disagreements and their relationship can become strained or fall apart. Unresolved channel conflict can result not only in an uncooperative and inefficient channel, but it can also ultimately impact end-user consumers through inferior products, spotty inventory, and higher prices.

Question 4

When a channel member is respected,admired,or revered based on one or more attributes,that member enjoys ________________ within the channel.
A)Coercive power
B)Reward power
C)Expert power
D)Referent power
E)Legitimate power

Accepted Answer

When a channel member is respected, admired, or revered based on one or more attributes, that member enjoys referent power within the channel. Only the best of the best brands can rely on this power source.

Question 5

_______________ is often part of an overall positioning strategy built on prestige,scarcity,and premium pricing.
A)Selective distribution
B)Exclusive distribution
C)Widespread distribution
D)Convenience distribution
E)Intensive distribution

Accepted Answer

When a manufacturer opts for exclusive distribution in a channel, it is often part of an overall positioning strategy built on prestige, scarcity, and premium pricing.

Question 6

One example of a push strategy is _______________.
A)Couponing
B)Consumer rebates
C)Sales contests
D)Paying a slotting allowance
E)Both sales contests and paying a slotting allowance

Accepted Answer

Push strategies usually are supported by heavy allowance payments to intermediaries for helping accomplish the manufacturer's goals. Examples include funding an extra incentive to a wholesale drug salesperson for pushing a particular medication to an independent pharmacy, or paying a slotting allowance or shelf fee to secure distribution in an intermediary's inventory listing and warehouse or onto a retail shelf.

Question 7

___________ is not a source of channel power.
A)Reward power
B)Referent power
C)Legitimate power
D)Consumer power
E)Expert power

Accepted Answer

Consumer power is not a source of channel power as it refers to the power or influence that consumers have in the market, rather than within a channel of distribution. The other options (A, B, C, and E) are all sources of channel power, including reward power (offering incentives or rewards), referent power (due to personal relationships or connections), legitimate power (based on formal positions or authority), and expert power (due to knowledge or skills).

Question 8

Intensive distribution is typically associated with low-cost ________________.
A)High-technology goods
B)Durable goods
C)Convenience goods
D)Impulse goods
E)Shopping goods

Accepted Answer

When the objective is to obtain maximum product exposure throughout the channel, an intensive distribution strategy is designed to saturate every possible intermediary and especially retailers. Intensive distribution is typically associated with low-cost convenience goods.

Question 9

____________ implies that many of the promotional activities take place from the manufacturer downward through the channel of distribution.
A)Selective distribution
B)Exclusive distribution
C)Push strategy
D)Pull strategy
E)Intensive distribution

Accepted Answer

A push strategy means that much of the intensive promotional activities take place from the manufacturer downward through the channel of distribution. Think of this approach as an investment by the manufacturer in intermediaries so that they will have a maximal incentive to stock, promote, sell, and ship the firm's products.

Question 10

Consumers engage in limited search for items like fashion clothing,home furnishings,and appliances.These are examples of ______________ goods.
A)High-technology goods
B)Durable goods
C)Convenience goods
D)Impulse goods
E)Shopping goods

Accepted Answer

Shopping goods, goods for which a consumer may engage in a limited search, are candidates for selective distribution. Examples of goods that fit this approach include most appliances, midrange fashion apparel, and home furnishings.

Question 11

Voss water deals only with a single wholesaler in every state.The wholesaler has to deal with specific hotels and restaurants.Voss employs a(n)______________ strategy.
A)Selective distribution
B)Exclusive distribution
C)Push
D)Pull
E)Shelf fee

Accepted Answer

When a manufacturer opts for exclusive distribution in a channel, it is often part of an overall positioning strategy built on prestige, scarcity, and premium pricing. Voss's prestige was greatly enhanced by a distribution strategy that involved only one wholesale distributor per state, which had to be a liquor, wine, and spirits wholesaler with relationships already built among the exclusive restaurants and hotels that Voss was targeting.

Question 12

In deciding on the right balance between control and flexibility in a channel,marketing managers must consider all of the following except _______________.
A)The type of products involved
B)Cost issues among the various options
C)Strength of belief in the accuracy of the sales forecast
D)Likelihood that major changes will occur in the customer or competitive marketplace that would necessitate restructuring the channel
E)None of these

Accepted Answer

In deciding on the right balance between control and flexibility in a channel, marketing managers must consider the type of products involved, cost issues among the various options, strength of belief in the accuracy of the sales forecast, and likelihood that major changes will occur in the customer or competitive marketplace that would necessitate restructuring the channel. Often, customers drive the ultimate choice a marketing manager makes about a channel, as flexibility or control differentially impact the value proposition from one customer to the next.

Question 13

_________________ refers to sourcing materials and knowledge inputs from external suppliers to the point at which production begins.
A)Outbound logistics
B)Inbound logistics
C)Reverse logistics
D)Order processing
E)Enterprise resource planning (ERP) systems

Accepted Answer

Along with outbound logistics, it is important to consider inbound logistics-sourcing materials and knowledge inputs from external suppliers to the point at which production begins.

Question 14

_______________ is the process that starts with production and ends with the delivery of the final product.
A)Outbound logistics
B)Inbound logistics
C)Reverse logistics
D)Stock-out
E)Enterprise resource planning (ERP) systems

Accepted Answer

Traditionally, logistics was thought of as an internal flow going one direction-outbound logistics. That is, it was thought that logistics started with production and ended with receipt of finished good by the end-user consumer or business user.

Question 15

When the objective is to obtain maximum product exposure throughout the channel,a(n)________________ strategy is designed to saturate every possible intermediary and especially retailers.
A)Distribution intensity
B)Intensive distribution
C)Channel length
D)Logistics
E)Shopping goods supply

Accepted Answer

When the objective is to obtain maximum product exposure throughout the channel, an intensive distribution strategy is designed to saturate every possible intermediary and especially retailers. Intensive distribution is typically associated with low-cost convenience goods.

Question 16

A manufacturer employing a(n)________________ focuses much of its promotional investment on the end-user consumer.
A)Selective distribution
B)Exclusive distribution
C)Push strategy
D)Pull strategy
E)Shelf fee

Accepted Answer

A manufacturer employing a pull strategy focuses much of its promotional investment on the end-user consumer. In this case, heavy advertising in mass media, direct marketing, couponing, and other direct-to-consumer promotion are expected to create demand from intermediaries from the bottom of the channel upward.

Question 17

The motivating force for suppliers to work with large chain stores is that the stores can offer huge ______________ in the form of writing big orders.
A)Coercive power
B)Reward power
C)Expert power
D)Referent power
E)Legitimate power

Accepted Answer

Despite Walmart's ability to coerce, few vendors will turn up their nose at potential business from the retailing giant just because they can be difficult to work with. Naturally, the motivating force is Walmart's huge reward power in the form of writing big orders.

Question 18

______________ results from contracts such as franchise agreements or other formal agreements.
A)Coercive power
B)Reward power
C)Expert power
D)Referent power
E)Legitimate power

Accepted Answer

Legitimate power results from contracts such as franchise agreements or other formal agreements. When McDonald's requires franchisees that want to participate in the latest iteration of their famous Monopoly scratch-off game to sign an agreement as to how the game will be promoted and administered in the store, it is exercising legitimate power to control misuse of the promotional activity.

Question 19

________________ may take the form of sharing important product remembering.
A)Coercive power
B)Reward power
C)Expert power
D)Referent power
E)Legitimate power

Accepted Answer

Expert power might take the form of sharing important product knowledge, such as a representative from Clinique setting up a demonstration for cosmetic consultants in a Nordstrom store to stimulate sales expertise.

Question 20

____________ are appropriate for intensive distribution,as their sales rely on the consumer seeing the product,feeling an immediate want,and being able to purchase now.
A)High-technology goods
B)Durable goods
C)Convenience goods
D)Impulse goods
E)Shopping goods

Accepted Answer

Impulse goods are also appropriate for intensive distribution, as their sales rely on the consumer seeing the product, feeling an immediate want, and being able to purchase now.

Quiz 11: Manage Marketing Channels and Points of Customer Interface

Distribution strategies can be __________________.

______________ involves an explicit or implicit threat that a channel captain will invoke negative consequences on a channel member if it does not comply with the leader's request or expectations.

Unresolved channel conflict can result not only in an uncooperative and inefficient channel,but it can also ultimately impact end-user consumers through ________________.

When a channel member is respected,admired,or revered based on one or more attributes,that member enjoys ________________ within the channel.

_______________ is often part of an overall positioning strategy built on prestige,scarcity,and premium pricing.

One example of a push strategy is _______________.

___________ is not a source of channel power.

Intensive distribution is typically associated with low-cost ________________.

____________ implies that many of the promotional activities take place from the manufacturer downward through the channel of distribution.

Consumers engage in limited search for items like fashion clothing,home furnishings,and appliances.These are examples of ______________ goods.

Voss water deals only with a single wholesaler in every state.The wholesaler has to deal with specific hotels and restaurants.Voss employs a(n) ______________ strategy.

In deciding on the right balance between control and flexibility in a channel,marketing managers must consider all of the following except _______________.

_________________ refers to sourcing materials and knowledge inputs from external suppliers to the point at which production begins.

_______________ is the process that starts with production and ends with the delivery of the final product.

When the objective is to obtain maximum product exposure throughout the channel,a(n) ________________ strategy is designed to saturate every possible intermediary and especially retailers.

A manufacturer employing a(n) ________________ focuses much of its promotional investment on the end-user consumer.

The motivating force for suppliers to work with large chain stores is that the stores can offer huge ______________ in the form of writing big orders.

______________ results from contracts such as franchise agreements or other formal agreements.

________________ may take the form of sharing important product remembering.

____________ are appropriate for intensive distribution,as their sales rely on the consumer seeing the product,feeling an immediate want,and being able to purchase now.