A) offer greater efficiency in making goods available to target markets
B) bring a fresh point of view to strategy development
C) eliminate risk
D) are generally backlogged with orders
E) refuse to store products for longer than a few days
11) Intermediaries play an important role in matching ________.
A) dealer with customer
B) supply and demand
C) product to region
D) manufacturer to product
E) information and promotion
12) Channel members add value by bridging the major gaps of ________ that separate goods and services from those who would use them.
A) time, place, and form
B) place, possession, and form
C) time, place, and possession
D) place, time, and need
E) place, need, and distribution
13) Which of the following is NOT a key function that intermediaries play in completing transactions?
A) promotion
B) information
C) matching
D) financing
E) negotiation
14) Which of the following is NOT a key function that intermediaries play in helping to fulfill a completed transaction?
A) physical distribution
B) promotion
C) financing
D) risk taking
E) storing goods
15) In marketing terms, we say that the number of intermediary levels indicates the ________ of a channel.
A) depth
B) complexity
C) involvement
D) length
E) width
16) To a producer of goods, a greater number of channel levels means ________ and greater channel complexity.
A) less distance between producer and end consumer
B) less control
C) more potential ideas
D) higher taxes
E) fewer channel partners
17) All of the institutions in a channel are connected by various flows. These include physical flow, flow of ownership, payment flow, information flow, and ________ flow.
A) promotion
B) acquisition
C) customer
D) return product
E) by-product
18) A distribution channel is more than a collection of firms connected by various flows; it is a(n) ________ in which people and companies interact to accomplish individual, company, and channel goals.
A) added value chain
B) complex behavioral system
C) corporate marketing system
D) vertical marketing system
E) multichannel system
19) An advantage of a channel of distribution over selling direct to consumers is that each channel member plays a ________ in the channel.
A) time-saving part
B) specialized role
C) decisional role
D) informational role
E) disciplinary role
20) ________ conflict, which occurs between different levels of the same channel, is more common than ________ conflict, which occurs among firms at the same level of the channel.
A) Horizontal; vertical
B) Vertical; horizontal
C) Contractual; corporate
D) Corporate; franchise
E) Wholesaler; retailer
21) Historically, conventional channels have lacked the leadership to ________.
A) assign channel member roles and attain efficiency
B) attain efficiency and assign member roles
C) assign member roles and manage conflict
D) set standard pricing and promotions
E) set standard pricing and packaging
22) A conventional distribution channel consists of one or more ________ producers, wholesalers, and retailers.
A) product-related
B) independent
C) contract
D) estranged
E) merchant
23) A channel consisting of one or more independent producers, wholesalers, or retailers that seek to maximize their own profits even at the expense of profits for the channel as a whole is a(n) ________.
A) vertical marketing system
B) conventional distribution channel
C) independent channel allocation
D) corporate VMS
E) administered vertical marketing system
24) An advantage of a vertical marketing system (VMS) is that it acts as a ________ system.
A) unified
B) more efficient
C) modern
D) customer-driven
E) task-driven
25) A corporate VMS has the advantage of controlling the entire distribution chain under ________.
A) a profit-maximizing strategic plan
B) single ownership
C) mass distribution
D) a few intermediaries
E) little control
26) Which of the following are the three major types of vertical marketing systems?
A) corporate, contractual, and chain
B) contractual, corporate, and independent