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Exam 13: Marketing Channels

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Question 1

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One important reason channel members are included between producers and users is the concept of specialization and division of labor.Define these concepts and explain their roles in channels of distribution.

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Specialization and division of labor bre...

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Question 2

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One thing that sets service distribution apart from traditional manufacturing distribution is that in a service environment:

A) production and consumption are simultaneous
B) production setbacks can be remedied by using safety stock
C) faster modes of transportation can offset service production problems
D) service distribution benefits are more tangible
E) service distribution has a narrower focus

F) All of the above
G) C) and E)

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Question 3

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Breaking bulk at the wholesale level is called:

When discussing the distribution of services,you will often hear channel members discussing the need to minimize wait times.

The capacity of a particular marketing channel member to control or influence the behavior of other channel members is known as:

Consider a scenario in which there are four manufacturers,no intermediaries,and three consumers.Twelve 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.

Unlike marketers of physical products,marketers of services do not have to address the question of logistics since services do not require a distribution strategy.

Which of the following businesses is most likely to have a problem with distribution because production and consumption of the product occurs simultaneously?

One configuration of a marketing channel entails producers selling to consumers with no intermediaries involved.This is called a:

Caterpillar,the manufacturer of tractors and other earthmoving equipment,has an extremely high market share,which means customers seek the dealers out regardless of where they are.There are approximately 50 Caterpillar dealers in the United States--one in each state.From this information,you can surmise that Caterpillar uses _____ distribution.

Which of the following is a logistical function performed by intermediaries?

List and briefly define the three basic types of channel relationships. Explain why they are described as a continuum.

All of the following are typical channel members in marketing channels for consumer products EXCEPT:

Wal-Mart is the largest retailer in the world and many consumer package-goods manufacturers like Kraft have offices in Bentonville,Arkansas where Wal-Mart is headquartered. Wal-Mart has the ability to influence manufacturers to lower their prices so that it can deliver on its low-price guarantee to consumers. Wal-Mart possesses:

Which of the following manufacturers most likely uses intensive distribution?

Channel members such as wholesalers and retailers are often included between producers and business users or consumers for three important reasons.Name and briefly describe these reasons.

Imagine a European manufacturer wants to introduce its digital thermostats to the U.S.market.The thermostats are designed to reduce power usage and save energy.What are the two basic channel structures it can use? Briefly describe the advantages and disadvantages of each method.

The three basic functions a channel intermediary provides are transactional,logistical,and facilitating functions.

Channel conflict that occurs between different levels in a marketing channel is referred to as:

Which of the following is the lack of all the items a customer needs to receive full satisfaction from a product or products?