kotler - chapter12(2)

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19) An advantage of a channel of distribution over selling direct to consumers is that each channel member plays a ________ in the channel. A) time-saving part B) specialized role C) decisional role D) informational role E) disciplinary role Answer: B Diff: 2 Page Ref: 342 Skill: Concept Objective: 12-2

20) ________ 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 Answer: B Diff: 2 Page Ref: 342 Skill: Concept Objective: 12-2

21) Historically, conventional channels have lacked the leadership to ________. A) assign channel member roles and attain efficiency B) attain efficiency and assign member roles C) assign member roles and manage conflict D) set standard pricing and promotions E) set standard pricing and packaging Answer: C Diff: 3 Page Ref: 343 AACSB: Communication Skill: Concept Objective: 12-2

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

A) product-related B) independent C) contract D) estranged E) merchant Answer: B Diff: 2 Page Ref: 344 Skill: Concept Objective: 12-2

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23) A channel consisting of one or more independent producers, wholesalers, or retailers that seek to maximize their own profitseven at the expense of profits for the channel as a wholeis a(n) ________.

A) vertical marketing system

B) conventional distribution channel C) independent channel allocation D) corporate VMS

E) administered vertical marketing system Answer: B Diff: 2 Page Ref: 344 Skill: Concept Objective: 12-2

24) An advantage of a vertical marketing system (VMS) is that it acts as a ________ system. A) unified

B) more efficient C) modern

D) customer-driven E) task-driven Answer: A Diff: 3 Page Ref: 344 Skill: Concept Objective: 12-2

25) A corporate VMS has the advantage of controlling the entire distribution chain under ________.

A) a profit-maximizing strategic plan B) single ownership C) mass distribution D) a few intermediaries E) little control Answer: B Diff: 1 Page Ref: 344 Skill: Concept Objective: 12-2

26) Which of the following are the three major types of vertical marketing systems? A) corporate, contractual, and chain

B) contractual, corporate, and independent C) contractual, corporate, and administered D) administered, independent, and franchised E) contractual, corporate, and task Answer: C Diff: 2 Page Ref: 344 Skill: Concept Objective: 12-2

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27) A distinguishing feature of a contractual VMS is that coordination and conflict management among the independent members of the channel are attained through ________. A) agents and brokers B) working partnerships

C) limited liability incorporation D) contractual agreements E) natural competitive forces Answer: D Diff: 1 Page Ref: 345 AACSB: Communication Skill: Concept Objective: 12-2

28) The most common type of contractual agreement in business is the ________. A) franchise organization B) vertical marketing system

C) conventional marketing channel D) corporate VMS E) administered VMS Answer: A Diff: 3 Page Ref: 345 Skill: Concept Objective: 12-2

29) Leadership in which type of marketing system is assumed not through common ownership or contractual ties but through the size and power of one or a few dominant channel members? A) horizontal marketing system B) administered VMS C) corporate VMS

D) multichannel distribution system E) conventional marketing channel Answer: B Diff: 2 Page Ref: 345 Skill: Concept Objective: 12-2

30) In a ________, two or more companies at one level join together to develop a new marketing opportunity. A) franchise

B) horizontal marketing system C) corporate VMS

D) multichannel distribution system E) conventional distribution channel Answer: B Diff: 1 Page Ref: 345 Skill: Concept Objective: 12-2

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31) Hybrid marketing systems are also called ________. A) dual distribution systems

B) multichannel distribution systems C) administered franchises

D) horizontal multichannel systems E) contractual marketing systems Answer: B Diff: 2 Page Ref: 346 Skill: Concept Objective: 12-2

32) As marketing manager for Globe Imports and Exports, you want to start reaping the benefits of a multichannel distribution system. You will likely enjoy all of the following EXCEPT which one? A) expanded sales

B) expanded market coverage C) selling at a higher gross margin

D) opportunities to tailor products and services to the needs of diverse segments E) A and C Answer: C Diff: 3 Page Ref: 346 Skill: Concept Objective: 12-2

33) The use of multichannel systems in the United States is ________. A) decreasing B) increasing C) holding steady

D) spreading abroad fast E) declining abroad Answer: B Diff: 2 Page Ref: 346 Skill: Concept Objective: 12-2

34) The major disadvantage of a multichannel system is that it is harder to control and it can generate ________. A) channel conflict B) less net profit

C) fewer domestic sales D) inefficiencies

E) declining employee morale Answer: A Diff: 2 Page Ref: 346 Skill: Concept Objective: 12-2

35) Due in a large part to advances in technology, ________ is a major trend whereby product and

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service producers are bypassing intermediaries and going directly to final buyers, or radically new types of channel intermediaries are emerging to displace traditional ones. A) the vertical marketing system B) the corporate marketing system C) disintermediation D) the corporate merger E) the hostile takeover Answer: C Diff: 2 Page Ref: 347 AACSB: Use of IT Skill: Concept Objective: 12-2

36) In many industries, traditional intermediaries are dropping by the wayside because of changes in ________ and the growth of ________ marketing. A) federal laws; business-to-business B) state and local laws; target

C) franchise structure; independent D) technology; direct and online E) channel design; retail Answer: D Diff: 2 Page Ref: 347 AACSB: Use of IT Skill: Concept Objective: 12-2

37) Designing a channel system calls for analyzing consumer needs, setting channel objectives, ________ and evaluation. A) establishing a budget

B) identifying major channel alternatives C) seeking regulatory approval D) seeking legal advice E) measuring objectives Answer: B Diff: 2 Page Ref: 348 Skill: Concept Objective: 12-3

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