Business 530 - Marketing Management » Winter 2023 » Chapter 10 Channels of Distribution

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Question #1
_____ refers to coordinating the flow of goods, services, and information among the distribution channel members.
A.   Segmentation
B.   Logistics
C.   Targeting
D.   Branding
Question #2
Which of the following is an example of channel members?
A.   A firm's product designer
B.   A firm's top management
C.   A retailer of the firm
D.   A firm's middle management
Question #3
When a company deals with partners that are upstream, the partners are called channel members.
A.   True
B.   False
Question #4
Which of the following defines a manufacturer's distribution intensity?
A.   Number of intangible services in a purchase transaction
B.   Number of intermediaries required to reach a customer
C.   Number of tangible products in a purchase transaction
D.   Number of component suppliers for a stock product
Question #5
Typically, consumer packaged goods are distributed selectively.
A.   False
B.   True
Question #6
Which of the following is an example of products that are distributed intensively?
A.   A lathe machine
B.   A computer server
C.   A bar of soap
D.   Liquid nitrogen
Question #7
Which of the following statements differentiates push and pull strategies?
A.   A manufacturer using push strategies concentrates on intangible services, while a manufacturer using pull strategies concentrates on tangible products.
B.   A manufacturer using push strategies concentrates on channel partners, while a manufacturer using pull strategies concentrates on customers.
C.   A manufacturer using push strategies concentrates on B2B customers, while a manufacturer using pull strategies concentrates on B2C customers.
D.   A manufacturer using push strategies relies on word-of-mouth referrals, while a manufacturer using pull strategies relies on valid forecasts.
Question #8
Suppliers have less power when their services are differentiated.
A.   False
B.   True
Question #9
Transaction cost analysis is a model that:
A.   compares a manufacturer's processes with those of its competitors' and ranks them accordingly.
B.   considers channel members' production costs and governance costs, both of which are ideally minimized.
C.   considers the effect of a policy, program, project, activity, or event on the economy of a given are
D.   compares the inherent risks of a situation to its related benefits and helps arrive at a decision.
Question #10
In arbitration between a supplier and a manufacturer, the negotiation involves the use of a third party to make a binding decision for the two.
A.   True
B.   False
Question #11
In the context of distribution, double marginalization occurs when:
A.   a firm's top management and middle management fail to agree on a product's feature.
B.   a manufacturer, based on a monthly sales target, rewards its intermediaries.
C.   a firm's top management and suppliers fail to agree on a raw material's price revision.
D.   a manufacturer and its intermediaries expect to earn a profit from the same transaction.
Question #12
Which of the following statements explains the difference between forward integration and backward integration?
A.   A manufacturer takes up the product's distribution responsibilities in forward integration, while a manufacturer controls raw material inputs in backward integration.
B.   Forward integration deals with the internal or micro-environmental factors of a firm, while backward integration deals with the external or macro-environmental factors of a firm.
C.   Forward integration deals with tangible goods and perishable services, while backward integration deals with perishable goods and intangible services.
D.   The number of intermediaries in a forward integration process is greater than the number of intermediaries in a backward integration process.
Question #13
A firm that opens its own retail store is engaging in backward integration.
A.   False
B.   True
Question #14
In retailing, _____ carry depth but not breadth.
A.   convenience stores
B.   branded store chains
C.   mass merchandisers
D.   specialty stores
Question #15
In franchising, a franchisor retains some control without complete ownership or capital expenditure.
A.   True
B.   False

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