Marketing Channels 2
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Marketing Channels 2
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25 Questions

1. An international consumer products manufacturer requires all of its suppliers to provide the lowest possible cost and to adhere to a just-in-time inventory system. Wholesalers and manufacturers generally yield to the authority of this large manufacturer. This consumer products manufacturer exercises channel power.
2. Metallurgical Designs makes gold and silver charms for necklaces and bracelets. It markets its charms to a few retailers in any one region and promotes them intensively to those retailers. This is an example of intensive distribution.
3. Reciprocal conflict occurs among channel members on the same level, such as two or more different wholesalers or two or more different retailers that handle the same manufacturer's brands.
4. The Internet is quickly becoming an alternative channel for delivering services.
5. A merchant wholesaler is an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers.
6. Because distribution creates the same problems whether it is in Ethiopia, Indonesia, or Canada, you will find that channel structures and types around the world are very similar to those in the United States.
7. Because distribution creates the same problems whether it is in Ethiopia, Indonesia, or Canada, you will find that channel structures and types around the world are very similar to those in the United States.
8. 'Gray' marketing channels assist brand name manufacturers in marketing their products more efficiently.
9. Integrated channel relationships tend to be more flexible than cooperative relationships.
10. Carl represents a manufacturer of floor coverings and gets paid a commission for finding buyers and linking them up with the manufacturer. Carl is an example of a merchant wholesaler
11. An international consumer products manufacturer requires all of its suppliers to provide the lowest possible cost and to adhere to a just-in-time inventory system. Wholesalers and manufacturers generally yield to the authority of this large manufacturer. This consumer products manufacturer exercises channel power.
12. When discussing the distribution of services, you will often hear channel members discussing the need to minimize wait times.
13. Interactional justice implies that each firm in a marketing channel treats the others equitably according to predefined terms or processes.
14. Transactional functions include contacting potential customers and assuming the risk of owning inventory.
15. The Beistle Company manufactures Halloween decorations year-round, but customer demand is concentrated only during the month of October. By maintaining inventories of the Beistle Company’s products, marketing channels overcome this spatial discrepancy.
16. The Internet is quickly becoming an alternative channel for delivering services.
17. At one end of the channel relationship continuum is the 'Arm's-Length' relationship.
18. Tammy Bowles makes handmade, wooden children’s toys, which she sells online to end users. Tammy does not use channel intermediaries, which means she uses a direct channel.
19. Highly integrated channel relationships are the preferred relationship because there is no large outlay of assets required to keep the channel members all working toward the same results.
20. Unlike marketers of physical products, marketers of services do not need to address the question of logistics since services do not require a distribution strategy.
21. Consider a scenario in which there are five manufacturers, no intermediaries, and four consumers. Twenty transactions would be required for each consumer to receive products from each manufacturer. The introduction of one intermediary reduces the required number of transactions to four and demonstrates the idea of contact efficiency.
22. The Beistle Company manufactures Halloween decorations year-round, but customer demand is concentrated only during the month of October. By maintaining inventories of the Beistle Company’s products, marketing channels overcome this spatial discrepancy.
23. Unlike marketers of physical products, marketers of services do not need to address the question of logistics since services do not require a distribution strategy.
24. As products move through the marketing channel, channel members provide specialization and division of labor, overcome discrepancies, and provide contact efficiency.
25. A merchant wholesaler is an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers.

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