Marketing for Hospitality and Tourism, 8e, Global Edition (Kotler)
Chapter 12 Distribution Channels Delivering Customer Value
1) One function of the distribution channel is ________, which involves gathering and
distributing marketing research and intelligence.
A) Contact
B) Information
C) Matching
D) Physical distribution
2) Which of the following is NOT a function of the distribution channel?
A) Risk taking
B) Promotion
C) Linking
D) Financing
3) All of the following are considered marketing intermediaries EXCEPT:
A) Independent contractors
B) Travel agents
C) Consortia
D) Tour wholesalers
4) Supranational, Logis de France and Leading Hotels of the World are examples of:
A) Consortia
B) Associations
C) Global distribution systems
D) Alliances
5) ________ are computerized reservation systems that serve as a product catalog for travel
agents and other distributors of hospitality products.
A) Consortia
B) Concierges
C) Global distribution systems
D) Internet sites
6) ________ provide incentive travel for employees and distributors.
A) Motivational houses
B) Concierges
C) Junket reps
D) Consortia
7) The first step in selecting a location for a hotel is:
A) Regional analysis
B) Selection of an individual site
C) Understanding the target market of the company
D) Selection of an area within a region
8) In a supply chain, “upstream” from the company is a set of firms that:
A) Market the product
B) Provide distribution channels
C) Provide retail networks
D) Provide expertise in product creation
9) In a supply chain, “downstream” from the company is a set of firms that:
A) Supply the raw material
B) Supply information
C) Provide financing
D) Provide a connection between the firm and its customers
10) Which of the following is NOT a function of the distribution channel?
A) Gathering marketing research
B) Providing consulting on feasibility of new products
C) Customizing orders to customers’ needs
D) Storage
11) Which of the following is the least expensive distribution channel for hotel rooms?
A) Brand.com
B) Consortia
C) Global distribution system
D) Online travel agent
12) Which of the following is the most expensive distribution channel for hotel rooms?
A) Brand.com
B) Consortia
C) Global distribution system
D) Online travel agent
13) Distribution specialists that serve the casino industry as intermediaries for premium players
are called:
A) Casino distribution specialists
B) Motivations houses
C) Junket reps
D) Leisure tour brokers
14) Distribution specialists that provide incentive travel offered to employees or distributors as a
reward for their efforts are called:
A) Casino distribution specialists
B) Motivations houses
C) Junket reps
D) Leisure tour brokers
15) In channel conflicts, conflicts between different levels of the same channel are termed:
A) Vertical conflict
B) Horizontal conflict
C) Diagonal conflict
D) Recurring conflict
16) A ________ consists of producers, wholesalers, and retailers acting as a unified system.
A) Vertical Marketing System
B) Horizontal Marketing System
C) Multi-channel Marketing System (MMS)
D) Consortia
17) Which of the following is NOT an advantage of a franchise to the franchisee?
A) Brand recognition
B) Financing assistance
C) Royalties
D) Architectural plans
18) When two or more companies at one level join to follow a new marketing opportunity, it is
termed:
A) Vertical Marketing System
B) Horizontal Marketing System
C) Multi-channel Marketing System (MMS)
D) Consortia
19) When a single firm sets up two or more marketing channels to reach one or more customer
segments, it is termed:
A) Vertical Marketing System
B) Horizontal Marketing System
C) Multi-channel Marketing System
D) Consortia
20) Which of the following is NOT a marketing intermediary?
A) Travel agents
B) Tour operators
C) Government tourist associations
D) Concierges
21) All of the following are examples of agreements between channel members EXCEPT:
A) Location
B) Type of rates
C) Amount of commission
D) Maintenance of company standards
22) An advantage of using multiple channels is that it does not incur any additional costs.
23) Location represents one of the most critical aspects of distribution for hospitality.
24) Using sales representatives offers better control than building your own sales force.
25) A direct marketing channel has no intermediary level.
26) There are several types of flows that connect all the institutions in the channel.
27) What is good for one member of the channel may not be good for another.
28) Priceline is an example of a company that uses a system where the buyer cannot specify any
particular brand of hotel or airline.
29) The primary reason for the use of intermediaries is their superior efficiency in making goods
available and accessible to target markets.
30) Franchising is an example of a corporate VMS.
31) Alliances are informal agreements between two organizations that stand to benefit from each
other’s strengths.
32) To date, the restaurant industry has had little use for the Internet as a distribution channel.
33) Vertical conflict in a channel occurs between firms at the same level in the channel.
34) Franchising works well in the restaurant industry but has had limited success in the hotel
industry.
35) Why is the phrase “value delivery network” a more relevant expression than “supply chain”
or “demand chain”?
36) How do channel members such as travel agents, wholesalers, hotel representatives and other
agencies add value to a marketing system?
37) What are the five key functions that members of the marketing channel perform to complete
transactions and to help fulfill the completed transaction?
38) What are two types of channel conflict? Give an example of each.
39) What is a vertical marketing system? Explain channel power in a vertical marketing system.