120) True Value is a retailer-owned cooperative with over 4,000 independent retail locations
worldwide. Members of True Value own their individual stores and operate independently. True
Value helps its members procure materials at a low cost. What kind of marketing system is True
Value? Explain briefly.
121) Flash Designs is an apparel manufacturing company and has adopted a franchising model to
distribute and sells its garments. The company recently received complaints from a particular
franchisee that another competing franchisee was infringing on its territory. What type of conflict
is this?
122) Crafted Jewels is a jewelry manufacturer that sells its designs to various jewelry retailers.
The retailers often complain that the company’s online store acts as a competitor and reduces
their profitability. What type of conflict is this? Briefly explain.
123) UltraMotion Pictures produces and distributes music and television entertainment in the
United States. The company distributes music in partnership with a large music retailer, Fromen
Tunes. Fromen executives often work for a short time with UltraMotion and some of the
UltraMotion executives work at the retail outlets to study Fromen’s operations. This strategy
minimizes the conflicts between partners. What strategy is being used here? Briefly explain.
124) Which of the following is the most complete and accurate description of a pure-click
company?
A) These are companies that launch a Web site without any previous existence as a firm.
B) These firms’ business models are based on advertising revenue.
C) These are established companies that have an online site for selling products.
D) These companies get paid every time a user visits their Web site.
E) These companies sell online space to other Web sites and are paid for the service.
125) A large retail chain in the United States decides to expand its operations by adding an
online site for e-commerce. This is called a(n) ________ company.
A) B2B
B) brick-and-mortar
C) m-commerce
D) pure-click
E) brick-and-click
126) An Internet service provider (ISP) is a(n) ________ company.
A) pure-click
B) brick and click
C) brick-and-mortar
D) m-commerce
E) one-level
127) JSE Securities Exchange is the largest stock exchange in Africa. The JSE provides a market
where securities can be traded freely under a regulated procedure. The company acts as an
intermediary between the traders. JSE is an example of a(n) ________.
A) internal broker
B) infomediary
C) customer community
D) market maker
E) third party arbitrator
128) Exxon Consulting works as an agent on behalf of business consumers to collect information
on various industrial products. When faced with buying decisions, businesses can approach
Exxon to obtain detailed information on the various options available to them. The company
earns revenue by selling such information to various customers. Exxon Consulting can be called
a(n) ________.
A) infomediary
B) market maker
C) customer community
D) third party arbitrator
E) informant
129) Consumer surveys suggest that one of the most significant inhibitors of online shopping is
the absence of ________.
A) pleasurable experiences
B) competitive prices
C) adequate technical information
D) after-sales service
E) facilities to compare offerings
130) Which of the following is an example of a brick-and-click company?
A) IFB Industries, a company that sells products using various channels such as Internet,
retailers, direct outlets, and franchisees.
B) Opera, a Web browser and Internet suite developed by Opera Software, performs common
tasks such as displaying Web sites and sending and receiving e-mail messages.
C) Atrutron, a company that offers its customers access to the Internet using data transmission
technology.
D) eBay Inc., an American company, facilitates online auctions and shopping to people and
businesses across the globe to buy and sell a broad variety of goods and services.
E) Yahoo! Inc., an American corporation, provides services via the Internet such as directories,
e-mail, news, advertising, online mapping, and so on.
131) Brick-and-click companies are those that have launched a Web site without any previous
existence as a firm.
132) Price pressure will increase for undifferentiated products than differentiated products.
133) Differentiate between pure-click companies and brick-and-click companies.
134) M-commerce refers to ________.
A) conducting business using mobile channels
B) the use of mass media communications to attract customers
C) providing mobile and on-site services to customers
D) the use of a specific medium to communicate with prospects
E) using the Internet as a medium for doing business
135) When Japanese teenagers carry DOCOMO phones from NTT and use them to order goods,
they are engaged in ________.
A) B2B e-commerce
B) brick-and-click commerce
C) infomediation
D) dilution
E) m-commerce
136) Consumers are more engaged and attentive with their smart phones than when they are
online.
137) The redemption rate for paper coupons (10 percent) far exceeds that of mobile coupons (1
percent).
138) How does American Express utilize m-commerce?
139) What is geofencing? Provide an example.
140) ________ channel conflict occurs between channel members at the same level.
A) Horizontal
B) Vertical
C) Multichannel
D) Administrative
E) Contractual
141) Alcart Solutions is a large distributor of Aldor phones in Canada. The company distributes
products to various retailers in the New Brunswick province. Recently Aldor received several
complaints from its retailers that their orders are not delivered on time. They also complain that
Alcart offers preferential treatment to some of the other retailers in the region. This is an
example of ________ conflict.
A) multichannel
B) horizontal
C) vertical
D) intermediate
E) parallel
142) When Goodyear began selling its popular tire brands through Sears, Walmart, and Discount
Tire, independent dealers that sold the same tires at higher prices were angry. This is an example
of a(n) ________ conflict.
A) horizontal
B) vertical
C) intermediate
D) multichannel
E) parallel
143) A manufacturer wants to achieve rapid market penetration through a low-price policy.
However, the manufacturer’s dealers prefer to work with high margins and pursue short-run
profitability. The major reason for this conflict is ________.
A) goal incompatibility
B) unclear roles
C) ambiguous rights
D) differences in perception
E) dependence on the manufacturer
144) When Estee Lauder set up a Web site to sell its Clinique and Bobbi Brown brands, Dayton
Hudson reduced space for Estee Lauder products in its department stores in response to the
________ conflict.
A) horizontal channel
B) multichannel
C) vertical channel
D) grid channel
E) end-customer
145) General Motors’ executives work for a short time in some dealerships, and some dealership
owners work in GM’s dealer policy department. This strategy helps the company avoid conflicts
with its dealers. This is an example of the ________ strategy.
A) employee exchange
B) dual compensation
C) joint membership
D) co-optation
E) diplomacy
146) RX Corp. is a large manufacturer of electronic goods and sells its products through
distributors and retailers. In order to keep pace with the growing use of the Internet, the company
decides to start selling online. The company faces stiff opposition from its retailers as they
believe that this will significantly reduce their profits. The company attempts to eliminate this
resistance by offering its retailers commissions for processing and delivering orders received via
the Web. This is an example of which of the following conflict resolution strategies?
A) dual compensation
B) joint membership
C) arbitration
D) co-optation
E) strategic pricing
147) Co-optation is an effort by one organization to win the support of the leaders of another by
________.
A) including them in advisory councils
B) engaging in mediation and arbitration
C) encouraging joint memberships in trade associations
D) encouraging employee exchanges
E) offering strategic justifications
148) Winstar is a large-scale manufacturer with more than a hundred partners across the globe.
When making decisions concerning distribution and channel optimization, the company invites
members from its channel partners to be part of its advisory committee. This helps the company
maintain harmony with its partners. Which of the following conflict resolution techniques is
Winstar using?
A) diplomatic counselling
B) mediation
C) arbitration
D) co-optation
E) joint membership
149) Which of the following channel conflict resolution techniques is used only if everything
else proves ineffective?
A) legal recourse
B) mediation
C) arbitration
D) co-optation
E) superordinate goals
150) What is the trade-off in return for the benefits associated with an integrated multichannel
marketing system?
A) increased market coverage
B) customers who buy in one channel are more profitable than customers who buy across
different channels
C) lower channel costs
D) two or more channels may end up competing for the same customer
E) customized selling
151) If a producer wants to achieve rapid market penetration through a low-price policy, while a
dealer wants to work with high margins to pursue short-run profitability, the source of the
channel conflict is ________.
A) unclear roles and rights
B) goal incompatibility
C) differences in perception
D) intermediaries’ dependence on the manufacturer
E) strategic justification
152) Jaycee was using ________ when his organization tried to win the support of the leaders of
one of his distributors by including them in advisory councils, boards of directors, and the like.
A) dual compensation
B) employee exchange
C) co-optation
D) joint membership
E) strategic justification
153) Conflicts between various franchisees of a company are an example of vertical channel
conflict.
154) Multichannel conflicts are common when the members of one channel obtain a lower price
based on larger-volume purchases.
155) Dual compensation pays existing channels for sales made through new channels.
156) Exclusive dealings and tying agreements are illegal and prohibited by law.
157) Identify when exclusive distribution deals are legal and when they break the law.