MKTG Test 6 pt 2 – Flashcards
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26) Which of the following are the three major types of vertical marketing systems? A) corporate, contractual, and chain B) contractual, corporate, and independent C) corporate, contractual, and administered D) administered, independent, and franchised E) corporate, contractual, and task
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C) corporate, contractual, and administered
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27) A distinguishing feature of a contractual VMS is that coordination and conflict management among the independent members of the channel are attained through ________. A) agents and brokers B) working partnerships C) limited liability incorporation D) contractual agreements E) natural competitive forces
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D) contractual agreements
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28) The most common type of contractual VMS agreement in business is the ________. A) franchise organization B) multichannel marketing system C) conventional marketing channel D) corporate VMS E) administered VMS
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A) franchise organization
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29) Leadership in which type of marketing system is assumed not through common ownership or contractual ties, but through the size and power of one or a few dominant channel members? A) horizontal marketing system B) administered VMS C) corporate VMS D) conventional marketing channel E) multichannel distribution system
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B) administered VMS
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30) In a ________, two or more companies at one level join together to follow a new marketing opportunity. A) franchise B) corporate VMS C) horizontal marketing system D) multichannel distribution system E) conventional distribution channel
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C) horizontal marketing system
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31) Hybrid marketing systems are also called ________. A) dual distribution systems B) multichannel distribution systems C) administered franchises D) horizontal multichannel systems E) contractual marketing systems
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E) contractual marketing systems
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32) As marketing manager for Globe Imports and Exports, you want to start reaping the benefits of a multichannel distribution system. You will likely enjoy all of the following EXCEPT which one? A) expanded sales B) expanded market coverage C) selling at a higher gross margin D) opportunities to tailor products and services to the needs of diverse segments E) A and C
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C) selling at a higher gross margin
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33) Which of the following is the most likely disadvantage of adding new channels in a multichannel distribution system? A) decreasing understanding of complex markets B) decreasing control over the system C) fewer opportunities for franchising D) increasing disintermediation E) reducing conflict among channel members
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E) reducing conflict among channel members
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34) Which of the following is a major disadvantage of a multichannel system? A) channel conflict B) less net profit C) fewer domestic sales D) inefficiencies E) declining employee morale
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A) channel conflict
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35) Due in a large part to advances in technology, ________ is a major trend whereby product and service producers are bypassing intermediaries and going directly to final buyers, or radically new types of channel intermediaries are emerging to displace traditional ones. A) the vertical marketing system B) the corporate marketing system C) disintermediation D) the corporate merger E) the hostile takeover
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C) disintermediation
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36) In many industries, traditional intermediaries are dropping by the wayside because of changes in ________ and the growth of ________ marketing. A) federal laws; business-to-business B) state and local laws; target C) franchise structure; independent D) technology; direct and online E) channel design; retail
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D) technology; direct and online
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37) Marketing channel design calls for analyzing consumer needs, setting channel objectives, ________, and evaluating them. A) establishing budget guidelines B) identifying major channel alternatives C) seeking approval from regulators D) seeking legal recommendations E) measuring objectives
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B) identifying major channel alternatives
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38) Which of the following should be the first step in designing a marketing channel? A) identifying channel objectives B) identifying what consumers want from the channel C) analyzing channel alternatives D) evaluating intermediaries E) exploring international opportunities
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B) identifying what consumers want from the channel
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39) To increase a channel's service level, the channel must provide a greater assortment of products, more add-on services, and ________. A) stable prices B) less control C) faster delivery D) better customer communication E) follow-up
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C) faster delivery
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40) Companies should state their channel objectives in terms of targeted levels of ________. A) advertising B) efficiency C) customer service D) conflict reduction E) profitability
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C) customer service
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41) Which type of product might require a more direct marketing channel to avoid delays and too much handling? A) lower-priced products B) perishable products C) high-priced products D) products in their maturity stage E) products in their decline stage
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B) perishable products
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42) When a company is identifying its major channel alternatives, it should consider its choices in terms of types, number, and ________ of intermediaries. A) size B) power C) responsibilities D) capacity E) none of the above
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C) responsibilities
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43) When a company determines the number of channel members to use at each level, three strategies are available: intensive, exclusive, and ________ distribution. A) multichannel B) selective C) international D) direct E) extensive
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B) selective
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44) Sometimes a producer chooses only a few dealers in a territory to distribute its products or services. Generally these dealers are given a right to ________ distribution. A) exclusive B) selected C) intensive D) administered E) corporate
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A) exclusive
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45) Which type of distribution is used when the producer wants more than one, but fewer than all, of the intermediaries who are willing to carry its products? A) exclusive B) selective C) intensive D) dual E) multichannel
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B) selective
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46) When establishing the responsibilities of channel members, the producer establishes a list price, gives a fair set of discounts for intermediaries, and defines each channel member's ________. A) sales volume B) territory C) legal rights D) customers E) mission
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B) territory
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47) Channel members should be evaluated using all of the following criteria EXCEPT which one? A) economic factors B) control issues C) adaptability criteria D) channel leadership E) none of the above
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D) channel leadership
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48) When a company compares the likely sales, costs, and profitability of different channel alternatives, it is using ________ criteria to evaluate its channel options. A) selective B) adaptability C) economic D) control E) distribution
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C) economic
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49) It is common for international marketers to ________ their channel strategies for each country in which they do business. A) extend B) adapt C) restrict D) seek approval for E) eliminate
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B) adapt
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50) China and India each contain more than one billion people. However, companies can access only a small percentage of these potential markets due to ________. A) inadequate distribution systems B) indifference toward Western products C) insurmountable language barriers D) high regional taxes E) the religious caste system
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A) inadequate distribution systems
