Question 1

A direct marketing channel consists of how many levels?
A)zero
B)one
C)two
D)three
E)It is inappropriate to use levels when describing direct marketing.

Accepted Answer

A direct marketing channel consists of zero levels because it involves a direct sale from the producer to the end consumer without any intermediaries.

Question 2

Which of the following are the three major types of vertical marketing systems?
A)corporate,contractual and chain
B)contractual,corporate and independent
C)corporate,contractual and administered
D)administered,independent and franchised
E)corporate,contractual and task

Accepted Answer

These are the three major types of vertical marketing systems. Corporate vertical marketing systems involve a single entity owning multiple stages of production and distribution. Contractual vertical marketing systems involve independent firms at different levels of production and distribution agreeing to work together through contracts. Administered vertical marketing systems are those where one dominant player negotiates or mandates standards and practices across the industry.

Question 3

An advantage of a vertical marketing network (VMN)over a conventional distribution channel is that it acts as a ________ system.
A)unified
B)democratic
C)socially responsible
D)customer-driven
E)task-driven

Accepted Answer

A VMN is a system in which members of the distribution channel (manufacturer, wholesaler, and retailer) work together as a unified network rather than as separate entities. This approach creates a cohesive system that can work efficiently and effectively towards its goals.

Question 4

David Jones terminated its arrangements to supply clothing from popular fashion label,Country Road,following the latter's increasing involvement with direct factory outlets.For the prestige retailer,David Jones,Country Road's activities were not only a direct source of competition,but also represented an inconsistency with their carefully crafted prestige image.This is an example of ________.
A)exclusive dealing
B)channel conflict
C)a breakdown in a contractual network
D)a power struggle
E)All of the above.

Accepted Answer

The situation described is an example of channel conflict, as the two companies had differing views on how their products should be sold and marketed. It also appears to be a breakdown in the contractual network, as David Jones terminated their arrangement with Country Road due to Country Road's activities. However, it is not exclusive dealing or a power struggle.

Question 5

________ conflict,which occurs between different levels of the same channel,is more common than ________ conflict,which occurs among firms at the same level of the channel.
A)Horizontal;vertical
B)Vertical;horizontal
C)Contractual;corporate
D)Corporate;franchise
E)Wholesaler;retailer

Accepted Answer

Vertical conflict, which occurs between different levels of the same channel, is more common than horizontal conflict, which occurs among firms at the same level of the channel.

Question 6

A channel consisting of one or more independent producers,wholesalers or retailers each seeking to maximise its own profits even at the expense of profits for the channel as a whole is a(n)________.
A)vertical marketing system
B)conventional marketing channel
C)independent channel allocation
D)corporate VMS
E)administered vertical marketing system

Accepted Answer

This is characteristic of a conventional marketing channel, where each member operates independently and makes decisions based on their own self-interest, rather than working together to maximize overall channel profits. In contrast, vertical marketing systems (VMS) involve closer coordination and cooperation among channel members to maximize overall efficiency and profitability. Corporate VMS are owned and operated by a single entity, while administered VMS have dominant members that coordinate activities with others in the channel. Independent channel allocation is not a recognized marketing channel term.

Question 7

Which type of product might require a more direct marketing channel to avoid delays and too much handling?
A)lower-priced products
B)perishable products
C)high-priced products
D)products in their maturity stage
E)products in their decline stage

Accepted Answer

Perishable products require a more direct marketing channel to avoid delays and too much handling that can reduce their shelf life and quality. Examples of perishable products are fresh produce, dairy products, and meats. A direct marketing channel would involve the producer selling directly to the consumer or through a limited number of intermediaries to reduce the time between production and consumption.

Question 8

In marketing terms,we say that the number of intermediary levels indicates the ________ of a channel.
A)depth
B)complexity
C)involvement
D)length
E)width

Accepted Answer

The number of intermediary levels in a marketing channel indicates its length. A longer channel involves more intermediaries between the producer and the consumer.

Question 9

Which of the following statements about a zero-level channel is correct?
A)It may also be called a backward channel.
B)It is the same as a direct marketing channel.
C)It has only one intermediary between producer and consumer.
D)It has three members.
E)It refers to intensive distribution channels where there are an indeterminate number of channel members.

Accepted Answer

A zero-level channel, also known as a direct marketing channel, involves no intermediary levels between the producer and the consumer.

Question 10

The goal of channels in the service sector is to make the service ________.
A)available to target populations
B)affordable,differentiated and easy to find
C)risk free,readily available and differentiated
D)differentiated,targeted and affordable
E)affordable and accessible

Accepted Answer

The answer of The goal of channels in the service...

Question 11

A distribution channel is more than a collection of firms connected by various flows;it is a(n)________ in which people and companies interact to accomplish individual,company and channel goals.
A)added value chain
B)complex behavioural system
C)corporate marketing system
D)vertical marketing system
E)multichannel system

Accepted Answer

A distribution channel involves the behavior of firms and individuals within the channel, and their interactions and relationships with each other. It is a complex system of behavior, communication, and decision-making that involves multiple actors working together to achieve their goals. This makes option B, "complex behavioral system," the best choice for completing the sentence. The other options are not as accurate or specific in describing the nature of a distribution channel.

Question 12

A conventional distribution channel consists of one or more ________ producers,wholesalers and retailers.
A)product-related
B)independent
C)contract
D)franchised
E)None of the above.

Accepted Answer

A conventional distribution channel consists of independent producers, wholesalers, and retailers, each seeking to maximize their own profits, often at the expense of the system as a whole.

Question 13

All of the institutions in a channel are connected by flows,including physical flow,flow of ownership,payment flow,information flow and ________ flow.
A)promotion
B)acquisition
C)customer
D)return product
E)by-product

Accepted Answer

The answer of All of the institutions in a channel...

Question 14

Marketing channels may be used to market ________.
A)a hospital
B)government ideas
C)birth-control clinics
D)comedians
E)All of the above.

Accepted Answer

Marketing channels can be used to market various products and services, including a hospital, government ideas, birth-control clinics, and comedians. Therefore, all of the choices are correct.

Question 15

When two Hungry Jacks restaurants have a disagreement over who should be able to sell in quantity at a discount to local athletic teams,it is called a ________ channel conflict.
A)vertical
B)disintermediation
C)multichannel
D)horizontal
E)functional

Accepted Answer

Horizontal channel conflict occurs between two or more companies at the same level in the distribution channel, such as two Hungry Jacks restaurants in this scenario. They are both part of the same distribution level and are competing with each other.

Question 16

To a producer of goods,a greater number of channel levels means ________ and greater channel complexity.
A)less distance between producer and end consumer
B)less control
C)more potential ideas
D)higher taxes
E)fewer channel members

Accepted Answer

A greater number of channel levels means there are more middlemen involved in the distribution process, which results in less control for the producer over the final product and its pricing.

Question 17

Each layer of intermediary that performs some work in bringing the product and its ownership closer to the final buyer is a channel ________.
A)layer
B)level
C)tier
D)stratum
E)None of the above.

Accepted Answer

Channel level refers to each layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.

Question 18

Staples Office Supply opened an online store that created competition with many of its dealers.The corporate office created a(n)________ conflict.
A)vertical
B)problematic
C)functional
D)horizontal
E)intermediation

Accepted Answer

The answer of Staples Office Supply opened an online store...

Question 19

A ________ consists of producers,wholesalers and retailers acting as a unified system.
A)value-driven marketing network
B)corporate marketing network
C)complex marketing network
D)physical distribution system
E)vertical marketing network

Accepted Answer

A vertical marketing network consists of producers, wholesalers, and retailers acting as a unified system to satisfy customer needs. This type of network allows for greater efficiency and control over the distribution process.

Question 20

Historically,________ have lacked strong leadership and have been troubled by damaging conflict and poor performance.
A)corporate vertical marketing systems
B)contractual vertical marketing systems
C)conventional marketing channels
D)administered vertical marketing systems
E)conventional vertical marketing systems

Accepted Answer

Conventional marketing channels have historically lacked strong leadership and have been troubled by damaging conflict and poor performance due to the independent nature of the entities involved, leading to less coordination and cooperation.

Quiz 10: Pricing Strategies: Understanding and Capturing Customer Value

A direct marketing channel consists of how many levels?

Which of the following are the three major types of vertical marketing systems?

An advantage of a vertical marketing network (VMN) over a conventional distribution channel is that it acts as a ________ system.

conflict,which occurs between different levels of the same channel,is more common than conflict,which occurs among firms at the same level of the channel.

A channel consisting of one or more independent producers,wholesalers or retailers each seeking to maximise its own profits even at the expense of profits for the channel as a whole is a(n) ________.

Which type of product might require a more direct marketing channel to avoid delays and too much handling?

In marketing terms,we say that the number of intermediary levels indicates the ________ of a channel.

Which of the following statements about a zero-level channel is correct?

The goal of channels in the service sector is to make the service ________.

A distribution channel is more than a collection of firms connected by various flows;it is a(n) ________ in which people and companies interact to accomplish individual,company and channel goals.

A conventional distribution channel consists of one or more ________ producers,wholesalers and retailers.

All of the institutions in a channel are connected by flows,including physical flow,flow of ownership,payment flow,information flow and ________ flow.

Marketing channels may be used to market ________.

When two Hungry Jacks restaurants have a disagreement over who should be able to sell in quantity at a discount to local athletic teams,it is called a ________ channel conflict.

To a producer of goods,a greater number of channel levels means ________ and greater channel complexity.

Each layer of intermediary that performs some work in bringing the product and its ownership closer to the final buyer is a channel ________.

Staples Office Supply opened an online store that created competition with many of its dealers.The corporate office created a(n) ________ conflict.

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

Historically,________ have lacked strong leadership and have been troubled by damaging conflict and poor performance.