Question 1

The channel structure depicted as M->W->R->C indicates:

Accepted Answer

A)  All the firms and parties involved in the product flow.
B)  The intensity of distribution.
C)  The channel manager has allocated distribution tasks to his/her own firm, wholesalers, retailers and consumers.
D)  A channel without any facilitating agencies.
E)  Who is responsible for distribution tasks.

Question 2

When Wal-Mart is performing negotiatory functions, it is involved in

Accepted Answer

A)  Transferring title, selling, and buying.
B)  Buying, selling, and transportation.
C)  Risk-taking, selling, and credit.
D)  Selling and advertising.
E)  Transferring title and providing storage.

Question 3

The five flows in marketing channels discussed in the text are

Accepted Answer

A)  Product, negotiation, ownership, information, payment.
B)  Information, advertising, promotion, product, ownership.
C)  Promotion, information, ownership, negotiation, transportation.
D)  Negotiation, product, payment, information, promotion.
E)  Ownership, product, negotiation, promotion, information.

Question 4

Ten producers of garden tools all sell through one wholesaler to five retailers. The number of contacts needed for all of the manufacturers to contact all of the retailers is __________. If the wholesaler were eliminated from the channel, the number of contacts needed would be:

Accepted Answer

A)  2; 5
B)  16; 15
C)  6; 5
D)  50; 50
E)  15; 50

Question 5

According to the text, the technology that is likely to have the greatest impact on marketing channels is:

Accepted Answer

A)  Television.
B)  Automated warehousing.
C)  The Internet.
D)  Hand-held computers.
E)  Cellular phones. C

Question 6

In the development of channel strategy, the channel manager is faced with:

Accepted Answer

A)  A sales decision.
B)  An allocation decision.
C)  A tactical decision.
D)  A logistics decision.
E)  An operations decisions.

Question 7

According to the text, the confusion over the definition of the marketing channel stems mainly from which of the following causes?

Accepted Answer

A)  Marketing channels are complex.
B)  There are simply too many definitions of the marketing channel.
C)  Too many "academic types" have become involved.
D)  The differing perspectives or viewpoints used.
E)  There are too many marketing channels for anyone to understand. D

Question 8

A hot tub manufacturer estimates it will take ten personal sales calls, each of which costs $250, and 25 phone calls, each costing $25, to get five retailers to carry its product. The measure of contactual efficiency in dollar terms is:

Accepted Answer

A)  $2,500.
B)  $1,250.
C)  $3,125.
D)  $1,375.
E)  $275.

Question 9

When a firm finally invents the Star-Trek® Transporter, its marketing channel will come into existence only after:

Accepted Answer

A)  The Transporter has been introduced to the market.
B)  The negotiatory functions have taken place.
C)  Target markets have been defined.
D)  Shipping alternatives have been considered.
E)  Facilitating agencies have been contacted.

Question 10

Because the Sales Coordinator at Borden, Inc. makes channel decisions, he/she can be considered:

Accepted Answer

A)  A distribution manager.
B)  A logistics manager.
C)  A channels specialist.
D)  A channel manager.
E)  A marketing specialist.

Question 11

In general, basic decisions in channel strategy usually __________ operating decisions in logistics management.

Accepted Answer

A)  Follow
B)  Precede
C)  Occur simultaneously with
D)  Are less important than
E)  Are more important than

Question 12

Ideally, the channel manager would like to exercise __________ over which firms in the channel perform the distribution tasks.

Accepted Answer

A)  A veto power
B)  Limited control
C)  Substantial control
D)  Total control
E)  Autonomous control

Question 13

In developing and managing the ancillary structure versus the channel structure, the problems faced by the channel manager are:

Accepted Answer

A)  Usually less difficult and complex.
B)  Usually more difficult and complex.
C)  Virtually the same in all respects.
D)  Usually more important.
E)  Complicated and time-consuming to solve.

Question 14

Which type of strategy did Walmart decide to use to compete with Amazon?

Accepted Answer

A)  Heavy advertising
B)  Price reduction
C)  Establish kiosks in Walmart stores
D)  Wholesale distribution
E)  Mass distribution via its own online channel

Question 15

According to the view taken in the text, the marketing channel may be defined as:

Accepted Answer

A)  the intra-organizational system for moving goods and services to their markets.
B)  the external contactual organization that management operates to achieve its distribution objectives.
C)  the path taken by goods or services as they flow from producer to final user.
D)  all firms outside of the organization that are involved in performing marketing functions.
E)  the infrastructure used to move goods from manufacturer to retailer.

Question 16

The channel manager should allocate the distribution task to:

Accepted Answer

A)  As many intermediaries as possible.
B)  His/her own firm whenever possible.
C)  Those firms that can perform them most efficiently.
D)  The lowest-cost channel member.
E)  None of these apply.

Question 17

Using the concept of specialization and division of labor, a channel manager might engage in any of the following activities except:

Accepted Answer

A)  Allocate transportation of product to an outside shipping firm.
B)  Allocate transportation of product to the manufacturer's own trucking fleet.
C)  Allocate transportation of product to the wholesaler's trucking fleet.
D)  Allocate transportation of product to the retailer.
E)  Allocate transportation of product to an independent trucking company.

Question 18

Ten manufacturers of wallpaper all sell through one wholesaler to five retailers. The number of contacts needed for all of the manufacturers to contact all of the retailers is:

Accepted Answer

A)  2.
B)  16.
C)  6.
D)  50.
E)  15.

Question 19

In the context of the channel flows concept, logistics involves

Accepted Answer

A)  Management of all of the flows.
B)  Management of only the information flow.
C)  Management of none of the major flows.
D)  Management of the product flow.
E)  Management of new distribution channels.

Question 20

Contactual efficiency viewed from the channel manager's perspective is:

Accepted Answer

A)  The ratio of intermediaries to final customers.
B)  The relationship between negotiation effort relative to achieving the distribution objective.
C)  A relationship between negotiation efforts relative to specialization and division of labor.
D)  The ratio of intermediaries to distribution tasks performed.
E)  Cost savings in negotiating activities. B

Exam 1: Marketing Channel Concepts

The channel structure depicted as M->W->R->C indicates:

Correct AnswerverifiedShow Answer

When Wal-Mart is performing negotiatory functions, it is involved in

Correct AnswerverifiedShow Answer

The five flows in marketing channels discussed in the text are

Correct AnswerverifiedShow Answer

Ten producers of garden tools all sell through one wholesaler to five retailers. The number of contacts needed for all of the manufacturers to contact all of the retailers is __________. If the wholesaler were eliminated from the channel, the number of contacts needed would be:

Correct AnswerverifiedShow Answer

According to the text, the technology that is likely to have the greatest impact on marketing channels is:

Correct AnswerverifiedC

In the development of channel strategy, the channel manager is faced with:

Correct AnswerverifiedShow Answer

According to the text, the confusion over the definition of the marketing channel stems mainly from which of the following causes?

Correct AnswerverifiedD

A hot tub manufacturer estimates it will take ten personal sales calls, each of which costs $250, and 25 phone calls, each costing $25, to get five retailers to carry its product. The measure of contactual efficiency in dollar terms is:

Correct AnswerverifiedShow Answer

When a firm finally invents the Star-Trek® Transporter, its marketing channel will come into existence only after:

Correct AnswerverifiedShow Answer

Because the Sales Coordinator at Borden, Inc. makes channel decisions, he/she can be considered:

Correct AnswerverifiedShow Answer

In general, basic decisions in channel strategy usually __________ operating decisions in logistics management.

Correct AnswerverifiedShow Answer

Ideally, the channel manager would like to exercise __________ over which firms in the channel perform the distribution tasks.

Correct AnswerverifiedShow Answer

In developing and managing the ancillary structure versus the channel structure, the problems faced by the channel manager are:

Correct AnswerverifiedShow Answer

Which type of strategy did Walmart decide to use to compete with Amazon?

Correct AnswerverifiedShow Answer

According to the view taken in the text, the marketing channel may be defined as:

Correct AnswerverifiedShow Answer

The channel manager should allocate the distribution task to:

Correct AnswerverifiedShow Answer

Using the concept of specialization and division of labor, a channel manager might engage in any of the following activities except:

Correct AnswerverifiedShow Answer

Ten manufacturers of wallpaper all sell through one wholesaler to five retailers. The number of contacts needed for all of the manufacturers to contact all of the retailers is:

Correct AnswerverifiedShow Answer

In the context of the channel flows concept, logistics involves

Correct AnswerverifiedShow Answer

Contactual efficiency viewed from the channel manager's perspective is:

Correct AnswerverifiedB

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C

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D

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B