Question;101.;Different consumers have;different needs during the purchase process. Researchers Nunes and Cespedes;argue that, in many markets, buyers fall into four categories. List and briefly;define these four categories.;102.;Demand chain planning yields;several insights for manufacturers who follow this view of the supply chain. Explain what these insights are and how;companies can use them to their best advantage.;103.;What;are some of the advantages available to producers using intermediaries?;104.;In;designing a marketing channel system, the marketer must understand the service;output levels desired by target customers. Channels provide five service;outputs. List and briefly describe each of these outputs.;105.;Manufacturers;are constantly tempted to move from exclusive distribution or selective;distribution to more intensive distribution. Give a reason why this might not;be a good long-term strategy for a manufacturer..;106.;Explain;the differences between a vertical marketing system (VMS) and a conventional;marketing system?.;107.;The;most advanced supply-distributor arrangements for administering VMSs involve;distribution programming. Explain the components of distribution programming.;jointly plan merchandising goals, inventory;levels, space and visual merchandising plan, sales-training requirements, and;advertising and promotion plans.;108.;For a;brick-and-click company to add e-commerce to its marketing mix, the firm must;be aware that it creates the threat of a backlash from its channel;partners. The question remains: How to;sell both through intermediaries and online? Three strategies for successfully;answering this question were postulated in the chapter. List and briefly define these three;strategies.;APPLICATION;QUESTIONS;Multiple;Choice;109.;Your;product enjoys high brand loyalty and high involvement in the category. It has;perceived differences that consumers recognize between brands and is one of the;few that its consumers choose before selecting the retail store/Web site to;purchase the product. Which promotion strategy would hold the greatest;opportunity for incremental sales for your product?;a. Branding;b. Pull;c. Push;d. Hybrid;e. None of the above;110.;Your;product has low brand loyalty in its category, brand choice is often made by;the consumer in the store, often at the very moment of purchase. Which;promotion strategy would hold the greatest opportunity for incremental sales;for your product?;a. Branding;b. Pull;c. Push;d. Hybrid;e. None of the above;When managing a hybrid channel, the channel manager;must ensure that these different channels work seamlessly in the consumer?s opinion.;When the consumer can order a product online and pick it up at the nearby;retail store or be able to return the Internet-ordered product to the retail;store, we state that the channel has ________.;f. channel strong core operations;g. channel integration;h. channel synergy;i.;channel;cooperation;j.;channel;committing to TQM;111.;Jenny;gathers information from a variety of channels, conducting extensive research;on the advantages/disadvantages of the products available. She visits a number;of high-priced retailers, asks numerous questions, and tries many of the;products. When the time comes to;purchase, she always purchases through the lowest-cost channel. Jenny is best;described as a ________.;a. high-involvement shopper;b. variety-loving shopper;c. high-value deal seeker;d. habitual shopper;e. none of the above;112.;Palm;the leading manufacturer of handheld devices, consists of a whole community of;suppliers and assemblers of semiconductor components, plastic cases, LCD;displays, and accessories, of off-line and online resellers, of 275,000;developers in the Palm Developer Network who have created over 21,000 software;programs and 100 hardware add-ons for the Palm operating system for handheld;computers and smartphones. Combined;these make up Palm?s ________.;a. demand chain planning;b. channel integration;c. enterprise resource planning;d. hybrid channel;e. value network;113.;A;company selling exercise equipment may need to establish three channels of;distribution?a sales channel, a delivery channel, and a ________.;a. customer?s channel;b. dealer channel;c. service channel;d. speed channel;e. direct channel;Tupperware manufactures kitchen goods and has its;representatives sell them through home parties.;This is an example of a ________.;f. one-level channel;g. two-level channel;h. three level channel;i.;direct;marketing channel;j.;none;of the above;114.;deals between suppliers and retailers, such as Disney?s Consumer Products deal;with Wal-Mart, are becoming a mainstay for specialists looking for an edge in a;business world that is increasingly driven by price.;a. Exclusive;b. Selective;c. Intensive;d. Blanket;e. None of the above;115.;In;rolling out your company?s newest product, you decided to use manufacturers?;representatives as your sales agents. Part of your ________ was to establish;territories based upon counties per state.;a. ?trade-relations mix?;b. franchise agreements;c. pricing policies;d. product specs;e. conditions of sale;116.;The;sales of your product are low compared to your competition. The decision facing;you is whether to use a sales agency (brokers, manufacturers? representatives);or hire a field sales force. The fixed costs of engaging a sales agency are;lower than those of establishing a company sales force, but costs rise faster;through an agency. When figuring out sales and costs, the intersection of the;costs between sales agencies and sales force (SB) means that;a. above SB means that the company?scosts escalate;b. the sales agency is the better choice for;any sales volume below this point;c. the sales force is the better choice for;any sales volume below this point;d. the sales agency is the better choice for;any sales volume above this point;e. both choices are equally good?choose the;one that you are most comfortable with;117.;Rolex is very selective when;choosing the retailers that will sell its watches. The company needs to view;its retailer in the same way as it views its end users. The firm needs to;determine intermediaries? needs and construct a channel positioning such that;its channel offering is tailored to provide ________ to these retailers.;a. customer responsiveness;b. superior value;c. integrated marketing communications;d. market logistics;e. supply chain management;118.;As more women entered the;workforce and were unavailable to Avon?s traditional door-to-door system for;selling cosmetics, Avon ventured into selling;its cosmetics in JCPenney. Avon revised its channel strategy due to ________.;a. presence of a gap between the traditional;distribution system and costs/profit constraints forcing new distribution;methods;b. presence of a gap between the traditional;and the ideal system that would satisfy the target markets needs and desires;c. desire to open new markets;d. desire to lower costs;e. desire to increase profits;119.;When Kodak coordinates;successive stages of production and distribution and receives cooperation from major;retailers in connection with displays, shelf space, promotions, and pricing;policies due exclusively to Kodak?s size and power, we call this a(n) ________.;a. conventional marketing channel;b. administered VMS;c. corporate VMS;d. contractual VMS;e. none of the above;120.;The;emergence of rental car counters, hair salons, banks, and dry cleaners found in;such stores as Wal-Mart, Target, grocery retailers, and others is an example of;marketing systems.;a. horizontal;b. vertical;c. multichannel;d. integrated;e. none of the above;121.;As a;recent college graduate, you dream of opening up your own business. You have;explored franchising. In fact, one of the companies that you are strongly;interested in is a service organization (fast food) that has a whole system;designed to bring its service efficiently to consumers. This is an example of a;a. manufacturer-sponsored retailer franchise;b. wholesaler-sponsored voluntary chains;c. retailer cooperatives;d. national retailer;e. service-firm-sponsored retailer franchise;122.;A soft-drink;concentrate producer makes a 20% margin on its regular soda and 25% on its diet;version of the same drink. The soft-drink bottlers, however, are required to;sell both the regular and diet versions to the retailers at the same price.;This is a classic example of ________.;a. unclear roles and rights;b. goal incompatibility;c. channel coordination;d. channel conflict;e. direct conflict;123.;In;deciding to take your product to market, one of the first considerations must;be your channel or channels of distribution. If you decide to sell your product;(a) in exclusive franchisee operations and (b) to mass distributors/retailers;concurrently, to the same target market, this may lead to a ________.;a. rapid market penetration;b. good business marketing;c. vertical channel conflict;d. horizontal channel conflict;e. multichannel conflict;124.;As a marketing manager for a;national company that uses brokers as your field sales agents, you suggest to;your senior management the creation of an ?advisory team? composed of;retailers, food brokers, sales managers, and inside marketing and management;personnel. Your objective is to win support of the leaders of another;organization by including them in planning discussions. You are advocating what;type of conflict management resolution?;a. Arbitration;b. Mediation;c. Co-optation;d. Diplomacy;e. None of the above;The;text would define eBay, a third party that creates markets by linking;buyers and sellers, as a ________.;f.;market maker;g.;infomediaries;h.;customer communities;i.;supplier;j.;none;of the above;125.;Harley-Davidson?s;entry into the Web for their parts and accessory business called for them to;?protect? their retailers by referring customers to the local Harley-Davidson;dealer. One additional strategy available to firms wishing to protect their;channels of distribution yet capitalize on Internet sales is ________.;a. offer fewer services to Web customers than;retail customers;b. offer online partners higher commission;rates;c. offer off-line partners higher commission;rates;d. sell identical brands/products;e. do not allow customers to order through the;Web site;Short;Answer;126.;Define;the term ?marketing channels.?;127.;Why is;a marketing channel system so important to the manufacturer?;128.;The;ability by the consumer to access information via the Internet, conduct business;transactions either by phone, Internet, or in person is an example of a company;using what type of marketing channels?;129.;When;you deliver the products to the customer, exchange title of the goods, or even;conduct a sales promotion, you are conducting a forward flow of activity;through the channel. Explain the elements for a backward flow from customers to;the company.;130.;In;setting up your distribution channel, you note that you must account for the;physical transfer of the product from your location to the consumer and must;receive payment for the goods sold. These are part of the channel functions.;All channel functions must be performed and have three things in common. List;the three things that all functions have in common.;131.;Your;company has decided to use a distribution channel that consists of a;wholesaler, a jobber, and a retailer to reach your final consumer or user of;your product. How many channel levels are involved in the distribution of your;product to the final user?;132.;When;we talk about manufacturers? redemption centers, community groups;trash-collection specialists, recycling centers, and central processing;warehouses, we are talking about what kind of distribution channels?;133.;The;ability of a shopper of laundry detergents to visit a grocery retailer and see;a wide variety of brands, sizes, and units for purchase is an example of what;elements of the channel service output?;134.;As the;?channel manager? for your firm, you have been asked by senior managers to;identify new distribution channels for the launch of a new product. Your;presentation describes a channel alternative as having three sets of elements.;What are the three elements that would be contained in your presentation?;135.;A;leading manufacturer of watches maintains a set of very exclusive networks of;retailers (exclusive distribution) that are authorized to sell its watches.;This exclusivity ensures that the company can control the service level;distribution, and outputs offered by the retail stores doing business with;them. Recently, however, there has been pressure on the company (by Wall Street;investors) to expand its products to more and more retailers (intensive;distribution) in order to increase sales. What are some of the dangers that the;company might encounter when moving from one form of distribution to;another?;136.;List;the main elements in the ?trade-relations mix? between producers and channel;members.;137.;As the;channel manager at a consumer products firm, you develop a channel incentive;program in which channel members receive an extra 2% discount on all purchases;when the channel members agree to pass half of this discount along to their;customers in terms of a price decline. This is an example of what type of;channel power?;138.;When;you purchase a Subway franchise, the corporate office delivers to you an entire;system designed to bring the services efficiently to the consumer. This is an;example of what type of contractual VMS?;139.;When;independent operators such as optometrists or nail and hair salons locate in;the front part of selected retail superstores, this is an example of what type;of marketing system?;140.;A;textbook manufacturer uses a direct sales force to reach the college market, a;telemarketing division to reach small independent bookstore owners, and rack;jobbers to reach retail outlets. This is an example of what type of marketing;systems?;141.;What;three important benefits can companies gain by adding more channels?;142.;Identify;four things that marketers can do to better integrate their online and off-line;channels.;143.;You;own a franchise of a national chain of quick luncheon meals. The corporate;office is conducting a nationwide marketing campaign introducing a $5.00 value;meal option. This $5.00 value meal option severely cuts into you operating;margins. Numerous complaints to the corporate office have resulted in the;corporate office taking the position that ?the franchisees need to be;competitive and this $5.00 meal is competitive.? You disagree, noting that even;with an increase in store traffic, the reduction in revenue and margin produced;by this value menu will result in a net loss for your store. What type of;channel conflict is evident here?;144.;When;one Pizza Hut franchisee noticed that his counterpart in the south part of town;was using ?nonapproved? ingredients in its Pizza Hut pizzas, he complained to;the franchise office. This is an example of what type of channel conflict?;145.;In;setting up your company?s channel of distribution, you arranged for the company?s;products to be carried by a select set of outlets and required that these;outlets not carry competitive products. What are the benefits to the company;and to the distributor in entering into such an exclusive distribution and;exclusive dealing arrangement?
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