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CHAPTER ELEVEN
THE INTERNET FOR DISTRIBUTION
Multiple Choice
1. A distribution channel is composed of all of the following except ________.
a. producers
b. intermediaries
c. marketers
d. buyers
2. Which of the following is a channel intermediary?
a. wholesaler
b. broker
c. agent
d. all of the above
3. A distribution channel in which the manufacturer deals directly with the customer (e.g.,
sale of digital products) is called a(n) ________.
a. indirect channel
b. direct channel
c. outsourcing channel
d. brokered channel
4. ________ functions refer to making contact with buyers and using marketing
communication strategies to make those buyers aware of products.
a. Advertising
b. Selling
c. Transactional
d. One-to–one marketing
5. Regarding mobile commerce, all of the following is true except .
a. it is a declining area of e-commerce
b. it occurs when consumers make a purchase with a smartphone or other mobile device
c. m-commerce is a subset of e-commerce.
d. Users can order products from Web sites
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6. Which of the following is true of logistical functions?
a. They include physical distribution activities
b. They include aggregating products
c. They are often outsourced to third-party specialists
d. All of the above
7. Which of the following is a possible solution to the “last mile problem”?
a. dummy boxes
b. the retail aggregator model (shipping product to participating retailers in a network)
c. FedEx
d. all of the above
8. The benefits of market research include ________.
a. it can be helpful in estimating the size of a target market
b. it carries no cost when gathered online
c. it is always available from outside sources
d. all of the above
9. Supply chain management refers to the coordination of flows in three categories: material,
information and ________.
a. marketing
b. distribution
c. logistics
d. financial
10. ________ is the computerized exchange of information between organizations, typically
used to reduce or eliminate paperwork.
a. Enterprise resource planning (ERP)
b. Electronic data interchange (EDI)
c. Supply chain management (SCM)
d. Secure electronic transfers
11. Electronic data interchange (EDI) is based upon which of the following key variables?
a. openness of the system
b. transport method
c. type of technology used for implementation
d. all of the above
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12. ________ save(s) customers money by avoiding the middleman; sometimes it leads to
more rapid delivery of the product.
a. Infomediaries
b. Disintermediation
c. Indirect selling
d. All of the above
13. ________ is an online organization that aggregates and distributes information. A market
research firm is one example of such an organization.
a. An infomediary
b. A disintermediator
c. A distribution system
d. A brokerage model
14. All of the following are intermediary models in common use on the internet except
________.
a. brokerage models
b. direct selling models
c. agent models
d. online retailing
15. A brokerage model’s primary benefit(s) to the buyer is ________.
a. convenience
b. speed of order execution
c. transaction processing
d. all of the above
16. Which of the following is an example of an agent that represents the seller?
a. virtual malls
b. manufacturer’s agents
c. metamediaries
d. all of the above
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17. An agent that represents a cluster of manufacturers, e-tailers, and content providers
organized around a life event or major asset purchase is known as a ________.
a. metamediary
b. manufacturer’s agent
c. virtual mall
d. all of the above
18. Which of the following is not a customer benefit provided by virtual malls?
a. branding
b. gift registry
c. shopping agents
d. electronic money
19. ________ pool many buyers together to achieve larger volume purchases and drive down
the price on selected items.
a. Reverse auctions
b. Shopping agents
c. Buyer cooperatives
d. Metamediaries
20. The most effective online marketing communications ________.
a. are initiated by pull marketing
b. represent a coordinated effort among channel members
c. give little attention to differentiated market segments
d. all of the above
True/False
21. Brokers usually represent sellers, not buyers, when provide exchange and negotiation
services.
a. True
b. False
22. In general, suppliers operate more efficiently when they produce a low volume of a wide
range of products.
a. True
b. False
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23. Both continuous replenishment and build-to-order help to eliminate unnecessary
inventory.
a. True
b. False
24. Most e-business models are entirely original in terms of traditional existing marketing
concepts.
a. True
b. False
25. The content sponsorship model is always used alone in order to create multiple revenue
streams.
a. True
b. False
26. Unlike agents, brokers do represent either the buyer or the seller depending upon who
pays the fee.
a. True
b. False
27. Near-field communication is a tactic involving two GPS systems in close proximity.
a. True
28. In a reverse auction the buyer specifies a price and sellers bid for individual buyers.
a. True
b. False
29. Online retailing represents about 85% of all retail sales.
a. True
b. False
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30. It is critical to understand how e-commerce fits into overall marketing strategy, what the
firm expects to accomplish through it, and whether or not is working.
a. True
b. False
31. Marketing research is not a facilitating function performed by channel intermediaries.
a. True
b. False
32. Financing is not a facilitating function performed by channel intermediaries.
a. True
b. False
33. Buyer cooperatives are formed to many buyers to help control prices paid on select items.
a. True
b. False
Essay Questions
34. In what ways does the internet add value to the marketing communications function?
Your answer should include at least three of the four ways listed in the text and give an
example for each.
35. How does the content sponsorship model generate revenues for the firm?
36. What are the benefits of online auctions for buyers? What are the benefits for sellers? Are
there any drawbacks to this model?
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37. Define social commerce and discuss its advantages for e-marketers.
38. The text cites three different strategies through which online retailing can be particularly
effective. Define each and give an example of a real-life Website that uses each strategy.
39. What is the role of an infomediary in the distribution system? What benefits does a
consumer receive from an infomediary? What benefits accrue to an infomediary and an
advertiser?