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159) The most important consideration in choosing a marketing channel when buyers have
limited knowledge or desire specific data about a product or service is to provide
A) postsale services.
B) seller adaptability.
C) information.
D) convenience.
E) presale services.
160) Which buyer requirement would be most important in choosing a channel for a financial
service for a novice investor who is interested in setting up a retirement account?
A) information
B) context
C) variety
D) pre- and postsale services
E) adaptation
161) Most Apple retail stores have a Genius Bar staffed with highly trained personnel who can
help customers with their purchases of iPads, iPhones, and other Apple products and services.
Which buying requirement is Apple satisfying with its Genius Bar?
A) context
B) information
C) variety
D) pre- and postsale services
E) adaptation
162) Driving time, proximity, and hours of operation for stores, and the usability of a website are
all examples of which buyer requirement?
A) information
B) variety
C) pre- or postsale services
D) adaptability
E) convenience
163) By promising to change engine oil and filters quickly, Jiffy Lube is appealing to which
buyer requirement?
A) information
B) convenience
C) variety
D) pre- or postsale services
E) adaptability
164) Customer convenience is an important consideration when choosing a marketing channel. A
commonly held view among website developers is the "________ rule," a belief that consumers
will abandon their efforts to enter or navigate a website if download time exceeds this amount of
time.
A) five-second
B) six-second
C) seven-second
D) eight-second
E) ten-second
165) Channels are typically designed to satisfy one or more of four consumer buying
requirements. When a meal-delivery service allows its members to use the Internet to select
menus and notify the company if they want to suspend deliveries for a week, the company is
appealing to which buyer requirement?
A) information
B) convenience
C) variety
D) pre- or postsale services
E) adaptability
166) Buyers are interested in having numerous competing and complementary items from which
to choose. The buyer requirement for ________ is satisfied through the breadth and depth of
products and brands that intermediaries carry.
A) information
B) convenience
C) variety
D) pre- or postsale services
E) adaptability
167) Tylenol and Advil are two manufacturers of over-the-counter products for ailments such as
colds, headaches, sore throats, arthritis aches, fever, and general pain. Both manufacturers seek
distribution of their products through pharmacies such as Walgreens and CVS. These companies
seek channels and intermediaries that will satisfy a buyer's desire for
A) variety.
B) information.
C) pre-or postsale service.
D) convenience.
E) adaptability.
168) Items such as large household appliances that require installation, delivery, and credit
demonstrate the buyer requirement of
A) information.
B) convenience.
C) variety.
D) pre- or postsale services.
E) adaptability.
169) One consideration in choosing a marketing channel is profitability, which is determined by
the margins earned for each channel member and for the channel as a whole. Based on this
information, which of the following statements would be most accurate?
A) The more responsibilities a channel member takes in terms of distribution, advertising, and
selling expenses, the greater the potential for manufacturer profitability.
B) The more responsibilities the manufacturer assumes relative to its channel members, the
greater the potential for profitability.
C) The extent to which channel members share costs determines the margins received by each
member and by the channel as a whole.
D) While channel members can increase profitability by taking on distribution and selling
expenses, advertising expenses should always remain with the manufacturer if a firm is looking
for the greatest profitability.
E) Profitability is not related to the length or nature of the distribution chain but determined by
the manufacturer.
Channel Sales and Profit Marketing Dashboard
170) Charlesburg Furniture sells its furniture through furniture store chains, independent
furniture stores, and department store chains, mostly in the southern United States. The company
has traditionally allocated its marketing funds for cooperative advertising, in-store displays, and
retail sales support on the basis of dollar sales by channel. According to the Marketing
Dashboard above, it should consider
A) increasing the marketing budget for furniture store chains.
B) focusing more selling efforts on department stores to increase the number of outlets.
C) discontinue advertising for furniture store chains.
D) allocating a larger proportion of its advertising budget to independent furniture stores.
E) reducing distribution in independent furniture stores.
171) Which of the channels shown in the Channel Sales and Profit Marketing Dashboard above
represents the least profit to the manufacturer?
A) furniture store chains
B) independent furniture stores
C) department store chains
D) mass merchandisers
E) warehouse clubs
172) Based on the information presented in the Channel Sales and Profit Marketing Dashboard
above, which channel of distribution should the furniture manufacturer consider dropping?
A) department store chains
B) furniture store chains
C) independent furniture stores
D) warehouse clubs
E) mass merchandisers
173) When one channel member believes another channel member is engaged in behavior that
prevents it from achieving its goals, it is referred to as
A) distributor dissension.
B) marketing channel discord.
C) partnership divergence.
D) channel conflict.
E) channel dissonance.
174) Channel conflict refers to
A) disagreements over the trade discounts allotted to each level of the distribution chain by the
Federal Trade Commission.
B) regulatory restrictions limiting the number of distributors that can sell a producer's products.
C) a situation in which one channel member believes another channel member is engaged in
behavior that prevents it from achieving its goals.
D) a situation in which one distributor carries two competing brands.
E) a situation in which the producer doesn't allow other channel members to have input regarding
product specifications or benefits.
175) The two types of channel conflict are
A) wholesaler and retailer.
B) horizontal and vertical.
C) transactional and promotional.
D) external and internal.
E) producer and consumer.
176) Which of the following types of vertical marketing systems is least likely to experience
channel conflict?
A) corporate vertical marketing system
B) wholesaler-sponsored voluntary chain
C) retailer-sponsored cooperative
D) franchise system
E) administered vertical marketing system
177) Conflict that occurs between two different levels in a marketing channel is referred to as
A) lateral conflict.
B) horizontal conflict.
C) vertical conflict.
D) distributor conflict.
E) contractual conflict.
178) Vertical conflict is conflict that occurs between
A) two members in the same level of a marketing channel.
B) two different levels in a marketing channel.
C) members of upper management who make the marketing channel decisions and lower
management who must implement these decisions.
D) a firm's and its customers' goals.
E) two producers of the same product vying for the same distribution channel members.
179) Which of the following would be a source of vertical conflict?
A) Foot Locker decides to open a retail outlet next to a Nike store in a shopping mall.
B) A restaurant serves both Coke and Pepsi to its patrons.
C) Ansible Technologies Ltd. sells its portable planetariums to both colleges and high schools.
D) Microsoft provides HP laptops more prominent point-of-purchase locations in its retail stores
than comparable laptops from Sony.
E) Long John Silver's decides to serve grilled burgers in addition to seafood.
180) Channel conflict that arises when one member bypasses another member and sells or buys
products directly is referred to as
A) horizontal conflict.
B) channel circumvention.
C) lateral conflict.
D) disintermediation.
E) dual distribution.
181) Disintermediation refers to channel conflict that arises when
A) a channel member severs relationships with other channel members to work for or with a
competing manufacturer.
B) channel conflicts are resolved by a third party.
C) a channel member bypasses another member and sells or buys products directly.
D) channel conflicts are resolved through a binding arbitration from a panel of representatives
from all channel members involved.
E) the entire distribution chain is eliminated, when a company sets up its own wholesaler and
retailer network.
182) Channel conflict occurred when American Airlines decided to terminate its relationship
with Orbitz and Expedia, two online ticketing and travel sites, and sell directly through AA
Direct Connect. This is an example of
A) horizontal conflict.
B) corporate conflict.
C) forward integration conflict.
D) lateral conflict.
E) disintermediation.
183) Conflict occurring between intermediaries at the same level in a marketing channel, such as
between two or more retailers that carry the same manufacturer's brands, is referred to as
A) horizontal conflict.
B) corporate conflict.
C) vertical conflict.
D) lateral conflict.
E) contractual conflict.
184) Horizontal conflict refers to conflict that occurs between
A) two different levels in a marketing channel.
B) members of upper management who make the marketing channel decisions and lower
management who must implement these decisions.
C) two producers of the same product vying for the same distribution channel members.
D) two members in the same level of a marketing channel.
E) a firm's and its customers' goals.
185) Two sources of horizontal conflict are common, including when
A) a manufacturer increases its distribution coverage in a geographical area.
B) disagreements arise over how profit margins are distributed among channel members.
C) manufacturers believe wholesalers or retailers are not giving their products adequate
attention.
D) a channel member bypasses another member and sells or buys products direct.
E) dual distribution causes conflict when similar types of retailers carry different brands.
186) Two sources of horizontal conflict are common, including when
A) a manufacturer decreases its distribution coverage in a geographical area from intensive to
selective.
B) disagreements arise over how profit margins are distributed among channel members.
C) manufacturers believe wholesalers or retailers are not giving their products adequate
attention.
D) a channel member bypasses another member and sells or buys products direct.
E) dual distribution causes conflict between different types of retailers that carry the same
brands.
187) Goodyear Tire dealers became irate when Goodyear Tire Co. decided to sell its brands
through Sears, Walmart, and Sam's Club. Many switched to competing tire makers. This is an
example of
A) corporate conflict.
B) vertical conflict.
C) horizontal conflict.
D) administered conflict.
E) contractual conflict.
188) All of the following sources produce channel conflict except which?
A) A manufacturer increases its distribution coverage in a geographical area.
B) A channel member bypasses another member and sells or buys products directly.
C) Disagreements over how profit margins are distributed among channel members.
D) Manufacturers believe wholesalers or retailers are not giving their products adequate
attention.
E) A channel member wants to use vendor-managed inventory.
189) A channel member (producer, wholesaler, or retailer) who coordinates, directs, and supports
other channel members is referred to as a
A) channel champion.
B) channel general.
C) channel captain.
D) channel director.
E) channel coordinator.
190) A channel captain is
A) a member of a distribution channel that takes control through hegemony (power is not
assigned, but assumed).
B) a channel member (producer, wholesaler, or retailer) that coordinates, directs, and supports
other channel members.
C) a channel team member known for expertise in cutting through red tape.
D) a person responsible for implementing a firm's mission statement, linking all members of the
marketing channel through a common goal.
E) the person with greatest authority who represents his or her channel in the distribution chain.
191) A firm becomes a channel captain because it is the channel member with the ability to
influence the behavior of other members. Influence can take four forms, one of which is
A) stakeholder position.
B) familial ties to other channel members.
C) economic power.
D) longevity in the industry.
E) geographic proximity to the manufacturing plant.
192) Walmart is a channel captain because of its strong image, number of outlets, and purchasing
volume. The source of Walmart's power is its
A) financial ability to reward other members.
B) expertise.
C) identification with a particular channel member.
D) legitimate rights through contracts.
E) political connections.
193) American Hospital Supply helps its customers (hospitals) manage inventory and streamline
order processing for hundreds of medical supplies. The source of American Hospital Supply's
power is its
A) economic influence.
B) expertise.
C) identification with a particular channel member.
D) legitimate rights through contracts.
E) governmental contracts.
194) Clothing manufacturers may compete to sell their offerings at prestigious retailer Neiman
Marcus. The source of Neiman Marcus' power is ________ since distribution with this retailer
may increase the status of a smaller brand.
A) economic influence.
B) expertise.
C) channel members' desire for identification with Neiman Marcus.
D) legitimate rights through contracts.
E) longevity as an upscale retailer.
195) Bombardier is the leading marketer of corporate jets. Its brand name is well known and
respected in the corporate jet market. The aircraft company relies on outside suppliers for design
support and to share development costs and market risks, but Bombardier is considered the
leader in determining design and marketing of its planes. For its newest plane, Bombardier has
about 30 prime suppliers, and about 10 of those have been involved since the initial design
phase. Bombardier is an example of a
A) product champion.
B) channel general.
C) channel director.
D) channel coordinator.
E) channel captain.
