Chapter 10 Pop Quiz

Which of the following is an example of a horizontal conflict in a distribution channel?

• Which of the following is an example of a horizontal conflict in a distribution channel?

• a Nike shoe dealer complaining that the shoes provided to the dealer are defective

• a Walmart executive complaining to a Pepsi executive for not replenishing stocks on time

• a Gucci executive complaining to Gucci's suppliers of delays in shipping consignments

• a Ford car dealer complaining that another Ford dealer is underpricing the same models

Vertical conflicts in distribution channels are conflicts that occur between ________.

•   different levels of the same channel

•   retailers and customers

•   same levels in the same channel

•   different levels of different channels

•   same levels of different channels

More than 80 percent of McDonald's restaurants worldwide are owned and operated by franchisees. This illustrates a(n) ________ marketing system.

•   administered VMS

•   corporate vertical

•   contractual VMS

•   direct

•   horizontal

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.

•   manufacturing chain

•   value delivery network

•   distribution center

•   disintermediation system

•   marketing intermediary

In a(n) ________ marketing system, leadership over production and distribution is assumed through the size and power of one or a few dominant channel members.

•   direct

•   administered VMS

•   corporate vertical

•   horizontal

•   contractual VMS

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ________.

•   administered VMS

•   corporate vertical marketing system

•   horizontal marketing system

•   direct marketing system

•   contractual VMS

Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is toward ________ insofar as product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones.

•   intermediation

•   disintermediation

•   corporate vertical marketing systems

•   vertical marketing systems

•   horizontal marketing systems

Producers use marketing intermediaries because they ________.

•   supply inexpensive raw materials for manufacturing products

•   form a part of the company's direct channel

•   monitor day-to-day activities during production

•   create greater efficiency in making goods available to target markets

•   provide technical expertise for faster production

________ distribution typically allows manufacturers to develop good working relationships with intermediaries and expect a better-than-average selling effort. It also gives producers good market coverage with more control and less cost than intensive distribution.

•   Comprehensive

•   Inclusive

•   Vertical

•   Horizontal

•   Selective

Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain?

• BlueHill

• SoftStar

•   Abundon

• Kevin Pinker

• the consumer