BUSML 3150 EXAM 3 VOCAB UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. Value Delivery Network
Answer:
A network made of the company, suppliers, distributors, and customers who
partner together to improve the entire system's performance in delivering
customer value.
Question:
2. Marketing Channel (Distribution Channel)
Answer:
A set of interdependent organizations that help make a product or service
available for use or consumption by the final buyer.
Question:
3. Channel Level
Answer:
A layer of intermediaries that performs work in moving the product and its
ownership closer to the final consumer.
Question:
4. Direct Marketing Channel
Answer:
A channel with no intermediaries.
Question:
5. Indirect Marketing Channel
Answer:
A channel containing one or more intermediary levels.
Question:
6. Channel Conflict
Answer:
Disagreements among channel members about goals, roles, or rewards-who
should do what and for what compensation.
, Question:
7. Conventional Distribution Channel
Answer:
A channel with independent producers, wholesalers, and retailers, each seeking
to maximize its own profits, even at the expense of the system.
Question:
8. Vertical Marketing System (VMS)
Answer:
Producers, wholesalers, and retailers act as a unified system under one leadership
structure.
Question:
9. Franchise Organization
Answer:
A contractual VMS in which a franchisor links several stages of the production-
distribution process.
Question:
10. Horizontal Marketing System
Answer:
Two or more companies at the same level of the channel join together to pursue a
new marketing opportunity.
Question:
11. Multichannel Distribution System
Answer:
A single firm uses two or more marketing channels to reach multiple customer
segments.
Question:
12. Disintermediation (Channel Disruption)
Answer:
Cutting out intermediaries or replacing them with radically new types of
intermediaries.
Question:
13. Direct-to-Consumer (DTC) Brands
Answer:
Brands that avoid competing with traditional retailers by selling directly to
consumers through online/mobile channels only.
QUESTIONS AND CORRECT ANSWERS
Question:
1. Value Delivery Network
Answer:
A network made of the company, suppliers, distributors, and customers who
partner together to improve the entire system's performance in delivering
customer value.
Question:
2. Marketing Channel (Distribution Channel)
Answer:
A set of interdependent organizations that help make a product or service
available for use or consumption by the final buyer.
Question:
3. Channel Level
Answer:
A layer of intermediaries that performs work in moving the product and its
ownership closer to the final consumer.
Question:
4. Direct Marketing Channel
Answer:
A channel with no intermediaries.
Question:
5. Indirect Marketing Channel
Answer:
A channel containing one or more intermediary levels.
Question:
6. Channel Conflict
Answer:
Disagreements among channel members about goals, roles, or rewards-who
should do what and for what compensation.
, Question:
7. Conventional Distribution Channel
Answer:
A channel with independent producers, wholesalers, and retailers, each seeking
to maximize its own profits, even at the expense of the system.
Question:
8. Vertical Marketing System (VMS)
Answer:
Producers, wholesalers, and retailers act as a unified system under one leadership
structure.
Question:
9. Franchise Organization
Answer:
A contractual VMS in which a franchisor links several stages of the production-
distribution process.
Question:
10. Horizontal Marketing System
Answer:
Two or more companies at the same level of the channel join together to pursue a
new marketing opportunity.
Question:
11. Multichannel Distribution System
Answer:
A single firm uses two or more marketing channels to reach multiple customer
segments.
Question:
12. Disintermediation (Channel Disruption)
Answer:
Cutting out intermediaries or replacing them with radically new types of
intermediaries.
Question:
13. Direct-to-Consumer (DTC) Brands
Answer:
Brands that avoid competing with traditional retailers by selling directly to
consumers through online/mobile channels only.
