MKTG ch 14 true false – Flashcards
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Marketing channel is a set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.
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True
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As products move through the marketing channel, channel members provide specialization and division of labor, overcome discrepancies, and provide contact efficiency.
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True
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Consider a scenario in which there are five manufacturers, no intermediaries, and four consumers. Twenty transactions would be required for each consumer to receive products from each manufacturer. The introduction of one intermediary reduces the required number of transactions to four and demonstrates the idea of contact efficiency.
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False
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Carl represents a manufacturer of floor coverings and gets paid a commission for finding buyers and linking them up with the manufacturer. Carl is an example of a merchant wholesaler.
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False
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Transactional functions include contacting potential customers and assuming the risk of owning inventory.
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True
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The direct channel is used more often in consumer markets than in business and industrial markets.
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False
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Metallurgical Designs makes gold and silver charms for necklaces and bracelets. It markets its charms to a few retailers in any one region and promotes them intensively to those retailers. This is an example of intensive distribution.
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False
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Exclusive distribution increases direct competition among a great number of retailers.
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False
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Highly integrated channel relationships are loosely bonded relationships characterized by informal arrangements that explicitly define the relationships of the channel members.
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False
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Reciprocal conflict occurs among channel members on the same level, such as two or more different wholesalers or two or more different retailers that handle the same manufacturer's brands.
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False
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Many regard vertical conflict as healthy competition.
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False
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Gray marketing channels assist brand name manufacturers in marketing their products more efficiently.
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False
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The person who called Alisa last night and tried to sell her double-paned windows for her home was using outbound telemarketing.
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True
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A retailing establishment that sells a wide variety of shopping and specialty goods under one roof would be classified as a department store.
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True
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Emily has just opened a health food store that sells organic foods, herbal supplements, and environmentally friendly products. Because it will be a specialty store, she should have a broad product assortment with moderately low prices.
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False
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Jennifer owns a greeting card store where she also sells women's purses, Crocs shoes for the whole family, Jibbitz charms, cell phone skins, Sandy Lion stickers, Yankee candles, Godiva chocolates, Precious Memories figurines, beaded jewelry, and stuffed animals. Jennifer uses multibrand merchandising.
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False
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Supercenters are more than just larger versions of traditional "markets." In addition to foodstuffs, supercenters have pharmacies, dry cleaners, portrait studies, photo finishing, hair salons, and restaurants.
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True
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Specialty discount stores differ from other discount stores. While most other discounters offer a predictable assortment of merchandise, the styles and brands offered at specialty discount stores change frequently and cost 25 percent or more below traditional department store prices.
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False
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Marketers who use nonstore retailing no longer have to worry about the "place" element of the four Ps.
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False
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The two types of franchising are target market franchising and geographic franchising.
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False
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The six Ps of the retailing mix are product, place, price, promotion, personnel, and planning.
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False
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Every October through December, Hickory Farms opens a temporary store in many malls to sell products during the Christmas season without the long-term commitment of a more expensive retail lease. This is an example of a pop-up shop.
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True
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When discussing customer-oriented service industries, you will often hear channel members discussing the need to minimize wait times.
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True
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Color can be used by retailers to create a mood or focus customer attention on a particular product.
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True
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Dillard's, Target, and Walmart use data mining to determine which products to stock at what price, how to manage markdowns, and how to advertise to draw target customers.
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True
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M-commerce is a type of managed commerce in which both buyer and seller end the transaction with a win-win feeling.
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False
