98) When one of the stores complains that the jewelry they’re being given is inferior to the
jewelry Kimberly sells to other stores, Kimberly experiences ________ conflict.
A) horizontal
B) multitiered
C) vertical
D) intensive
E) subjective
99) Kimberly decides to alter its distribution strategy so that its jewelry is accessible to the public
only through one distributor. The strategy they’re considering is known as ________ distribution.
A) elusive
B) extensive
C) exclusive
D) selective
E) elective
100) What mode of transport should Kimberly use to ship its goods over long distances as
quickly as possible?
A) flatcars
B) water transport
C) air transport
D) trucks
E) railroads
101) Downstream marketing channel partners, such as wholesalers and retailers, form a vital link
between the firm and its customers.
102) A company’s channel decisions directly affect the prices of its products.
103) Producers use intermediaries because they create greater efficiency in making goods
available to target
markets.
104) The role of marketing intermediaries is to transform the assortments of products made by
retailers into the assortments wanted by producers.
105) Each layer of marketing intermediaries that performs some work in bringing the product
and its ownership closer to the final buyer is a channel level.
106) The number of products supplied indicates the length of a channel.
107) In a direct marketing channel, the producer sells directly to the intermediaries, who in turn
sell directly to the customers.
108) Horizontal conflicts are conflicts between different levels of the same channel.
109) Vertical conflict occurs among firms at the same level of the channel.
110) A conventional distribution channel consists of one or more independent producers,
wholesalers, and retailers; each seeking to maximize its own profits, perhaps even at the expense
of the system as a whole.
111) A non-corporate VMS integrates successive stages of production and distribution under
single ownership.
112) In a vertical marketing system, two or more companies at one level join together to follow a
new marketing opportunity.
113) Multichannel marketing occurs when a single firm sets up two or more marketing channels
to reach one or more customer segments.
114) Disintermediation occurs when radically new types of channel intermediaries displace
traditional ones.
115) Marketing channel design calls for analyzing consumer needs, setting channel objectives,
identifying major channel alternatives, and evaluating those alternatives.
116) Producers of convenience products and common raw materials typically seek exclusive
distribution, a strategy in which they stock their products in as many outlets as possible.
117) Under the strategy of intensive distribution, the producer gives only a limited number of
dealers the exclusive right to distribute its products in their territories.
118) Marketing channel management calls for selecting, managing, and motivating individual
channel members and evaluating their performance over time.
119) As a part of intensive distribution, dealers are expected to refrain from selling the products
of the producers’ competitors.
120) Marketing logistics involves planning, implementing, and controlling the physical flow of
goods, services, and related information from points of origin to points of consumption to meet
customer requirements at a profit.
121) Reverse logistics refers to the moving of products and materials from suppliers to the
factory.
122) In contrast to distribution centers, storage warehouses are designed to move goods rather
than just house them.
123) Air carriers transport digital products from producer to customer via satellite, cable, phone
wire, or wireless signal.
124) Intermodal transportation refers to the combination of two or more modes of transportation.
125) Electronic data interchange (EDI) is the digital exchange of data between organizations,
which primarily is transmitted via the Internet.
126) Why is the term “value delivery network” a more relevant expression to use than the term
“supply chain” or “demand chain”?
127) How do intermediaries add value to a marketing system?
128) What are the key functions that members of the marketing channel perform?
129) Compare a conventional distribution channel with a vertical marketing system (VMS).
130) What are the advantages of multichannel distribution systems?
131) How have changes in technology and the growth of online marketing affected the design of
marketing channels?
132) Compare the three distribution strategies that producers use, providing examples of
products for each type of distribution.
133) Explain how companies select, motivate, and evaluate intermediaries or channel members.
134) Evaluate how public policy affects distribution decisions.
135) Why are companies increasingly turning to third-party logistics providers (3PLs)?
136) Provide an example of a company which has used an imaginative distribution system to
gain a competitive advantage.
137) What is horizontal conflict? Illustrate your answer with an example.
138) What is vertical conflict? Illustrate your answer with an example.
139) What is a conventional distribution channel?
140) Explain channel power in a vertical marketing system.
141) How can a firm benefit from involvement in a contractual VMS?
142) How can a firm benefit from participating in a horizontal marketing system?
143) Give an example of a multichannel distribution system.
144) What type of products are intensively distributed?
145) What types of products are exclusively distributed?
146) What is selective distribution?
147) What factors should a firm consider when selecting intermediaries?
148) When would an exclusive dealing contract be legally problematic?
149) How can a company benefit through a just-in-time logistics system?
150) What does the concept of integrated logistics management advocate?