Question 1

A sustainable competitive advantage is one that

Accepted Answer

A)  lasts at least five years.
B)  is based on a superior product feature.
C)  usually stresses a lower price.
D)  is difficult for competitors to match.
E)  stresses heavy promotional spending.

Question 2

According to the text, the most promising avenue for gaining a sustainable competitive advantage today is through an emphasis on:

Accepted Answer

A)  Pricing strategy.
B)  Channel strategy.
C)  Promotion strategy.
D)  Product strategy.
E)  Supply strategy.

Question 3

Channel management should be viewed as:

Accepted Answer

A)  The fourth element of the marketing mix.
B)  Being more important to the firm's strategy than the marketing mix.
C)  One of the major strategic areas of marketing management.
D)  A subdivision of logistics.
E)  An element of the distribution function.

Question 4

A distinction is made between channel members and facilitating agencies because:

Accepted Answer

A)  Sometimes academic hairsplitting is necessary.
B)  The channel members are part of the interorganizational system, while the facilitating agencies are not.
C)  The channel management problems are often different for channel members versus facilitating agencies.
D)  The use of facilitating agencies is not a frequent occurrence for many firms.
E)  Channel members and facilitating agencies have different levels of control in the movement of goods.

Question 5

For accounting firms and other producers of services:

Accepted Answer

A)  Marketing channels do not exist.
B)  Marketing channels are much more important.
C)  Marketing channels tend to be much longer.
D)  Marketing channels are generally of much less importance.
E)  Marketing channels often include agents or brokers.

Question 6

The channel manager is:

Accepted Answer

A)  A quite common position today in many firms.
B)  About equal to a product manager.
C)  The marketing manager's boss.
D)  Almost always a staff position.
E)  Anyone in the firm who makes marketing channel decisions.

Question 7

When considering the flows in the marketing channel for lawn tractors, product flows __________ and negotiation flows __________.

Accepted Answer

A)  Down the channel; down the channel
B)  Down the channel; up the channel
C)  Down the channel; both up and down
D)  Up the channel; down the channel
E)  Up the channel; both up and down

Question 8

From the standpoint of the channel flows concept, only those parties who participate in the __________ flows are considered members of the marketing channel.

Accepted Answer

A)  Negotiation and ownership
B)  Product and information
C)  Payment and negotiation
D)  Information and promotion
E)  Product and negotiation

Question 9

The Internet and World Wide Web has connected millions of people and institutions and

Accepted Answer

A)  Has increased the need for intermediaries.
B)  Has eliminated intermediaries.
C)  Is the only determinant of the role of intermediaries in the marketing channels.
D)  Is an important determinant in the use of intermediaries in marketing channels.
E)  Does not have any effect on the use of intermediaries in the marketing channels.

Question 10

Which of the following is a true statement?

Accepted Answer

A)  It is unusual to use multi-channel structures to reach customers in business markets.
B)  Most firms sell their products using a single channel structure.
C)  Multi-channel structures do not work well in reaching customers in consumer markets.
D)  E-commerce technology that includes online sales is a common component in today's multi-channel structure.
E)  Service can only reach customers through a single channel structure.

Question 11

A multi-channel strategy means:

Accepted Answer

A)  A firm uses multiple promotional strategies to reach customers.
B)  A firm advertises its products or services on many television stations.
C)  Numerous intra-organizational activities are used to provide products and services to customers.
D)  A product has many features that are desired by customers.
E)  A company reaches its customers through more than one channel.

Question 12

Four heavy equipment producers decide to sell their forklifts directly to 12 warehouses. The number of contacts necessary is:

Accepted Answer

A)  13.
B)  3.
C)  48.
D)  8.
E)  12.

Question 13

In order to reach its customers, Ralph Lauren apparel uses all of the following in its multi-channel strategy, except:

Accepted Answer

A)  Upscale department stores.
B)  Online sales at Polo.com.
C)  Company stores.
D)  Catalogs.
E)  Specialty retail stores.

Question 14

The concept of specialization and division of labor:

Accepted Answer

A)  Is more important in production than distribution.
B)  Is less important in distribution than production.
C)  Is of equal importance in production and distribution.
D)  Is rarely practical in distribution.
E)  Applies mainly to production situations.

Question 15

Which of the following statements is correct?

Accepted Answer

A)  The use of additional intermediaries will often increase the level of contactual efficiency.
B)  Specialization and division of labor as well as contactual efficiency considerations are all that is needed to make decisions about intermediary usage.
C)  Contactual efficiency and labor efficiency provide a framework for deciding whether or not to use intermediaries in the channel.
D)  Specialization and division of labor does not lead to contactual efficiency.
E)  The use of retailers provides greater contactual efficiencies than the use of wholesalers.

Question 16

Channel management is concerned mainly with

Accepted Answer

A)  Providing for the physical availability of products.
B)  Planning and overseeing the firm's logistics activities.
C)  The entire process of setting up and operating the contactual organization.
D)  Developing the firm's overall strategic marketing program.
E)  Operating the firm's entire marketing mix.

Question 17

Relating to the term, channel manager, which of the following statements is false?

Accepted Answer

A)  Most firms and organizations have a single designated position called channel manager.
B)  Channel managers refer to anyone in a firm who is involved in the marketing channel decision making.
C)  Depending on the type of firm, many different executives may be involved in making channel decisions.
D)  In some franchise organizations the, manager of franchisee relations, sometimes plays an important role in channel decision making.
E)  The term channel manager is used because it provides a sense of focus to the role of channel decision making

Question 18

In contrast to the development of channel structure, when the channel manager develops ancillary structure, he or she is dealing with facilitating agencies that are:

Accepted Answer

A)  Outside of the channel decision-making process.
B)  An integral part of the decision-making process.
C)  More committed to the long-term survival of the channel.
D)  Able to provide additional cost saving services.
E)  Capable of offering new information to the manager.

Question 19

Which of the following is not relevant to the definition of, channel?

Accepted Answer

A)  External, meaning the channel exists outside the firm.
B)  Internal, meaning the channel exists as part of the firm.
C)  Contactual organization, referring to those firms involved in negotiatory functions.
D)  Operates, suggesting involvement by management in the affairs of the channel.
E)  Distribution objectives, meaning management has certain distribution goals in mind.

Question 20

The only major difference between the specialization and division of labor principle as applied to a production versus a distribution situation is:

Accepted Answer

A)  Production tasks are often allocated intra-organizationally, while distribution tasks are frequently allocated inter-organizationally.
B)  Distribution tasks are much less amenable to specialization and division of labor than production tasks.
C)  Only logistics tasks are capable of being broken down for specialization.
D)  Production tasks are more easily divided into separate tasks.
E)  It is not possible to attain an optimal allocation of distribution tasks.

Exam 1: Marketing Channel Concepts

Channel management should be viewed as:

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Which of the following is a true statement?

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Which of the following statements is correct?

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A multi-channel strategy means:

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In contrast to the development of channel structure, when the channel manager develops ancillary structure, he or she is dealing with facilitating agencies that are:

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Which of the following is not relevant to the definition of, channel?

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Channel management is concerned mainly with

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From the standpoint of the channel flows concept, only those parties who participate in the __________ flows are considered members of the marketing channel.

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The channel manager is:

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The Internet and World Wide Web has connected millions of people and institutions and

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A sustainable competitive advantage is one that

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According to the text, the most promising avenue for gaining a sustainable competitive advantage today is through an emphasis on:

Correct AnswerverifiedShow Answer

A distinction is made between channel members and facilitating agencies because:

Correct AnswerverifiedShow Answer

For accounting firms and other producers of services:

Correct AnswerverifiedShow Answer

The only major difference between the specialization and division of labor principle as applied to a production versus a distribution situation is:

Correct AnswerverifiedShow Answer

In order to reach its customers, Ralph Lauren apparel uses all of the following in its multi-channel strategy, except:

Correct AnswerverifiedShow Answer

When considering the flows in the marketing channel for lawn tractors, product flows __________ and negotiation flows __________.

Correct AnswerverifiedShow Answer

The concept of specialization and division of labor:

Correct AnswerverifiedShow Answer

Four heavy equipment producers decide to sell their forklifts directly to 12 warehouses. The number of contacts necessary is:

Correct AnswerverifiedShow Answer

Relating to the term, channel manager, which of the following statements is false?

Correct AnswerverifiedShow Answer

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When considering the flows in the marketing channel for lawn tractors, product flows and negotiation flows .

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