CHAPTER 8 ACTIVITY

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

• distribution center

• marketing intermediary

• value delivery network

• disintermediation system

_______ is a set of interdependent organizations that help make a product or service of a company available for use by consumers or business users.

• A research and development channel

• An upstream channel

• A marketing channel

• A raw materials supplier

• A backward integration chain

Producers use marketing intermediaries because they _______.

• create greater efficiency in making goods available to target markets

• supply inexpensive raw materials for manufacturing products

• provide technical expertise for faster production

• monitor day-to-day activities during production

• form a part of the company's direct channel

Mary Kay Cosmetics and Amway sell their products through home and office sales parties, online websites, and social media. Both companies use a(n) _______ channel to distribute their offerings.

• functional

• indirect

• direct

• layered

• behavioral

All the institutions in a channel are connected by several types of flows. When a retailer conveys to a wholesaler that a new line of hip-hop clothing is not selling, this is an example of _______.

• payment flow

• flow of ownership

• physical flow

• information flow

• promotion flow

In which of the following situations is a producer guaranteed full control over product sales?

• a corporate marketing channel

• a direct marketing channel

• a contractual distribution channel

• a horizontal marketing system

• an administered marketing system

Using a company that owns one or more levels of intermediaries to help bring its products to final buyers is considered a marketing system. What type of system is this?

• Vertical marketing system

• Direct marketing system

• Social media

• Horizontal marketing system

Who is considered a marketing intermediary?

• Wholesaler

• Producer

• Manufacturer

• Customer

A conflict that occurs between different levels of the same channel is known as what type of conflict?

• Vertical conflict

• Horizontal conflict

• Direct conflict

• Indirect conflict

What is an example of a horizontal conflict in a distribution channel?

• Two shoe companies competing that sell shoes produced by the same manufacturer

• A retailer and a wholesaler disagreeing on pricing

• A manufacturer and a retailer having a dispute over delivery times

• A customer returning a product due to dissatisfaction