Deck 12: Distribution Channels Delivering Customer Value

Question 1

The chances of succeeding are the highest if you:

A) Buy a business out of bankruptcy
B) Buy a franchise
C) Start your own business
D) Buy someone else's business

Answer 1

B

Question 2

________ provide incentive travel for employees and distributors.

A) Motivational houses
B) Concierges
C) Junket reps
D) Consortia

Answer 2

A

Question 3

A ________ consists of producers, wholesalers, and retailers acting as a unified system.

A) Vertical Marketing System
B) Horizontal Marketing System
C) Multi-channel Marketing System (MMS)
D) Consortia

Answer 3

A

Question 4

Which of the following is the most expensive distribution channel for hotel rooms?

A) Brand.com
B) CRO
C) GDS
D) OTA

Question 5

A restaurateur buying produce from a grower at a farmers' market is an example of:

A) A two-level middleman channel
B) A single-middleman channel
C) A three-level middleman channel
D) A direct-marketing channel

Question 6

In channel conflicts, conflicts between different levels of the same channel are termed:

A) Vertical conflict
B) Horizontal conflict
C) Diagonal conflict
D) Recurring conflict

Question 7

In hotel rooms' distribution channels, OTA stands for:

A) Organization of Travel Agents
B) Organized Tourism Association
C) Online Travel Agencies
D) Overseas Travel Agencies

Question 8

Distribution specialists that provide incentive travel offered to employees or distributors as a reward for their efforts are called:

A) Casino distribution specialists
B) Motivations houses
C) Junket reps
D) Leisure tour brokers

Question 9

In a supply chain, "downstream" from the company is a set of firms that:

A) Supply the raw material
B) Supply information
C) Provide financing
D) Provide a connection between the firm and its customers

Question 10

The first step in selecting a location for a hotel is:

A) Regional analysis
B) Selection of an individual site
C) Understanding the target market of the company
D) Selection of an area within a region

Question 11

Which of the following is NOT a function of the distribution channel?

A) Gathering marketing research
B) Providing consulting on feasibility of new products
C) Customizing orders to customers' needs
D) Storage

Question 12

All of the following are considered marketing intermediaries except:

A) Independent contractors
B) Travel agents
C) Consortia
D) Tour wholesalers

Question 13

Distribution specialists that serve the casino industry as intermediaries for premium players are called:

A) Casino distribution specialists
B) Motivations houses
C) Junket reps
D) Leisure tour brokers

Question 14

________ are computerized reservation systems that serve as a product catalog for travel agents and other distributors of hospitality products.

A) Consortia
B) Concierges
C) Global distribution systems
D) Internet sites

Question 15

Which of the following is NOT a function of the distribution channel?

A) Risk taking
B) Promotion
C) Linking
D) Financing

Question 16

Coordination and conflict management are attained through common ownership at different levels in the channel in a(n):

A) Community vertical marketing system
B) Corporate vertical marketing system
C) Administered vertical marketing system
D) Contractual vertical marketing system

Question 17

Supranational, Logis de France and Leading Hotels of the World are examples of:

A) Consortia
B) Associations
C) Global distribution systems
D) Alliances

Question 18

In a supply chain, "upstream" from the company is a set of firms that:

A) Market the product
B) Provide distribution channels
C) Provide retail networks
D) Provide expertise in product creation

Question 19

Which of the following is the least expensive distribution channel for hotel rooms?

A) Brand.com
B) CRO
C) GDS
D) OTA

Question 20

One function of the distribution channel is ________, which involves gathering and distributing marketing research and intelligence.

A) Contact
B) Information
C) Matching
D) Physical distribution

Question 21

A direct marketing channel has no intermediary level.

Question 22

Alliances are informal agreements between two organizations that stand to benefit from each other's strengths.

Question 23

Why is the phrase "value delivery network" a more relevant expression than "supply chain" or "demand chain"?

Question 24

Franchising is an example of a corporate VMS.

Question 25

Which of the following is NOT an advantage of a franchise to the franchisee?

A) Brand recognition
B) Financing assistance
C) Royalties
D) Architectural plans

Question 26

Using sales representatives offers ________ control than building your own sales force.

A) More
B) Less
C) Better
D) None of the above

Question 27

There are several types of flows that connect all the institutions in the channel.

Question 28

When a single firm sets up two or more marketing channels to reach one or more customer segments, it is termed:

A) Vertical Marketing System
B) Horizontal Marketing System
C) Multi-channel Marketing System
D) Consortia

Question 29

Priceline is an example of a company that uses a system where the buyer cannot specify any particular brand of hotel or airline.

Question 30

What are the five key functions that members of the marketing channel perform to complete transactions and to help fulfill the completed transaction?

Question 31

Vertical conflict in a channel occurs between firms at the same level in the channel.

Question 32

How do channel members such as travel agents, wholesalers, hotel representatives and other agencies add value to a marketing system?

Question 33

What is a vertical marketing system? Explain channel power in a vertical marketing system.

Question 34

The primary reason for the use of intermediaries is their superior efficiency in making goods available and accessible to target markets.

Question 35

When two or more companies at one level join to follow a new marketing opportunity, it is termed:

A) Vertical Marketing System
B) Horizontal Marketing System
C) Multi-channel Marketing System (MMS)
D) Consortia

Question 36

What are two types of channel conflict? Give an example of each.

Question 37

Which of the following is NOT a marketing intermediary?

A) Travel agents
B) Tour operators
C) Government tourist associations
D) Concierges

Question 38

Franchising works well in the restaurant industry but has had limited success in the hotel industry.

Question 39

To date, the restaurant industry has had little use for the Internet as a distribution channel.

Question 40

What is good for one member of the channel may not be good for another.