Question 1
What value do marketing channels bring to the customer?
Question 1 options:
Marketing channels ensure customers get what, when and where they want their goods and services.
Effective marketing channels can mean the difference between a customer buying your product or a competing product.
Marketing channels provide value in that they offer financing options for both the end user and the wholesaler.
Marketing channels ensure the product or service is delivered on time.
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Question 2
A company engages in demand planning when _________.
Question 2 options:
intermediaries tell the firm how many of their products they can handle and move along the chain.
create a customer service department to handle customer demands following receipt of their orders.
the firm wants to demand that each channel members provides value to the next member of the value chain.
determine in advance how much of the firm's product the customers will buy.
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Question 3
What determines how many intermediaries a firm should include in its marketing channel system?
Question 3 options:
It depends on the number of functions that need to be performed to sell to the end customer such as transportation, financing or promotion.
It depends on the distance of the factory from the retail locations where the product will be sold to the customer.
The number of intermediaries depends on which channel partners can perform channel functions better or more efficiently than the company.
The number of intermediaries depends on which functions needed to get to the end customers the manufacturer cannot perform on their own.
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Question 4
A company that sells its product direct to consumers via the internet is using a _________.
Question 4 options:
direct channel
mono channel
traditional channel
indirect channel
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Question 5
Michaels Craft Store (Michaels.com) would be an example of which type of channel partner?
Question 5 options:
category killer
wholesaler
superstore
convenience store
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Question 6
Diet Coke is an example of a product that is ______
Question 6 options:
intensively distributed
wholesale distributed
selectively distributed
exclusively distributed
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Question 7
Walmart is a multi-billion dollar retail company that is a buyer from several consumer goods manufacturers. Many of their suppliers have moved to Bentonville, Arkansas, the Walmart headquarters. Why do you think suppliers have moved so close to Walmart headquarters?
Question 7 options:
to be able to personally deliver all paperwork involved in transactions with their most important customer.
to be able to meet with the president of the company as often as possible
to ensure they can get to headquarters quicker than competitors to submit competitive bids and purchase orders
to be around many of the suppliers to Walmart for greater cooperation and training
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Question 8
A local dermatologist has developed a new line of body scrub products for sensitive skin. She is unsure if she should sell her products through dermatologists' offices or through retail chains such as Sephora. Which explanation best describes why the marketing channel decision is as important as pricing and product features?
Question 8 options:
because the skin scrub is like so many other products in that product category that selling through dermatologists offices would give it the aura of being an exclusive product.
because one channel may want a greater percentage of the sale than the other channel
because it might be easier for her to make a distribution deal with Sephora, a national chain, as opposed to calling on individual doctor officers that may take too much time and money.
because place communicates to the customer something about the product's value proposition, which includes the benefits and price
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Question 9
Breakeven point refers to _______
Question 9 options:
the point at which the firm can finally make a profit.
the point at which total costs equal total revenue.
the point at which consumers have had enough of a product.
the point at which revenue equals units sold.
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Question 10
The price for big screen televisions has dropped considerably during the most recent holiday shopping season. The most likely reason for this pricing decision is _________
Question 10 options:
efficiencies gained from lower production costs.
inelastic demand for big screen televisions.
competitors fighting for greater market share in the big screen television market.
government lifting regulations on foreign television imports.
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Question 11
New products generally use which pricing strategies?
Question 11 options:
cost plus or everyday low price strategies
skimming or cost plus pricing strategies
skimming or penetration pricing strategies
prestige pricing or leader pricing
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Question 12
Demand for a product is said to be inelastic when ______.
Question 12 options:
an increase in price will cause demand to go up or stay the same.
the price goes up the demand goes down.
the price goes down, the product will end up in an outlet store
the price goes up, consumers look for bargains.
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Question 13
There are only a few dozen Rolls Royce dealerships spread across the United States, mainly in the extremely affluent cities. This is an example of ____________.
Question 13 options:
intensive distribution
selective distribution
exclusive distribution
franchise distribution
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Question 14
Which member of the channel system helps manufacturers control supply and demand conditions?
Question 14 options:
transporters
warehousers
holesalers
demand planners
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Question 15
If Walmart and Target agreed to charge the same price for some of their electronic products they would be guilty of ______________.
Question 15 options:
predatory pricing
price fixing
price skimming
bait and switch
Refer the chapter Using Marketing Channels and Price to Create Value for Customers