Test Bank For Marketing Channels
Chapter 1
CHAPTER 1—MARKETING CHANNEL CONCEPTS
MULTIPLE CHOICE
1. Which type of strategy did Walmart decide to use to compete with Amazon?
a. Heavy advertising
b. Price reduction
c. Establish kiosks in Walmart stores
d. Wholesale distribution
e. Mass distribution via its own online channel
ANS: E (p. 4)
2. Which of the following statements is false?
a. Consumer expectations have moved firms to add additional channels.
b. Both B2C and B2B businesses are increasing the number of channels they use to
distribute their products
c. The flexibility to respond to consumers does not appear to be relevant to channel
design.
d. Channels must be targeted to reach intended customer segments.
e. The increasing role of technology is helping to foster the use of multiple channels.
ANS: C (p. 6)
3. Which of the following is a true statement about Internet-based channels?
a. Walmart's channel model continues to rely on its 'brick and mortar' stores
exclusively.
b. ‘Bricks and Mortar’ retailers that added online capabilities to traditional channels
of distribution have had sluggish sales.
c. Online sales have become an established distribution channel for B2C but not B2B
markets.
d. Internet-based channels have become a mainstream channel in the channel mixes
of many firms.
e. The growth of E-commerce is beginning to slow.
ANS: D (p. 6-8)
4. A sustainable competitive advantage is one that
a. lasts at least five years.
b. is based on a superior product feature.
c. usually stresses a lower price.
d. is difficult for competitors to match.
e. stresses heavy promotional spending.
ANS: D (p. 9)
1
, Test Bank For Marketing Channels
Chapter 1
5.According to the text, the most promising avenue for gaining a sustainable competitive
advantage today is through an emphasis on:
a. Pricing strategy.
b. Channel strategy.
c. Promotion strategy.
d. Product strategy.
e. Supply strategy.
ANS: B (p.9)
6. Which of the following is not relevant to the definition of, channel?
a. External, meaning the channel exists outside the firm.
b. Internal, meaning the channel exists as part of the firm.
c. Contactual organization, referring to those firms involved in negotiatory functions.
d. Operates, suggesting involvement by management in the affairs of the channel.
e. Distribution objectives, meaning management has certain distribution goals in
mind.
ANS: B (p. 10)
7. Relating to the term, channel manager, which of the following statements is false?
a. Most firms and organizations have a single designated position called channel
manager.
b. Channel managers refer to anyone in a firm who is involved in the marketing
channel decision making.
c. Depending on the type of firm, many different executives may be involved in
making channel decisions.
d. In some franchise organizations the, manager of franchisee relations, sometimes
plays an important role in channel decision making.
e. The term channel manager is used because it provides a sense of focus to the role
of channel decision making
ANS: A (p. 11-12)
8. According to the text, the technology that is likely to have the greatest impact on
marketing channels is:
a. Television.
b. Automated warehousing.
c. The Internet.
d. Hand-held computers.
e. Cellular phones.
ANS: C
2
, Test Bank For Marketing Channels
Chapter 1
9.According to the text, the confusion over the definition of the marketing channel stems
mainly from which of the following causes?
a. Marketing channels are complex.
b. There are simply too many definitions of the marketing channel.
c. Too many “academic types” have become involved.
d. The differing perspectives or viewpoints used.
e. There are too many marketing channels for anyone to understand.
ANS: D (p. 10-11)
10. The text argues that the role of marketing channels in marketing management is:
a. An extremely important tactical issue.
b. The most important part of marketing management.
c. Of strategic importance in many cases.
d. Important mainly in the automobile business.
e. To offset problems in product strategy.
ANS: C
11. Consumers often view the marketing channel as simply:
a. Part of the manufacturer’s organization.
b. A group of parasites who are mainly responsible for the high prices at the
supermarket.
c. A lot of middlemen standing between them and the producer of the product.
d. The flow of goods and services through the economy.
e. The path taken by the title to goods as it moves through agencies that take title or
facilitate its transfer.
ANS: C
12. According to the view taken in the text, the marketing channel may be defined as:
a. the intra-organizational system for moving goods and services to their markets.
b. the external contactual organization that management operates to achieve its
distribution objectives.
c. the path taken by goods or services as they flow from producer to final user.
d. all firms outside of the organization that are involved in performing marketing
functions.
e. the infrastructure used to move goods from manufacturer to retailer.
ANS: B (p. 10)
3
, Test Bank For Marketing Channels
Chapter 1
13.When Wal-Mart is performing negotiatory functions, it is involved in
a. Transferring title, selling, and buying.
b. Buying, selling, and transportation.
c. Risk-taking, selling, and credit.
d. Selling and advertising.
e. Transferring title and providing storage.
ANS: A
14. A distinction is made between channel members and facilitating agencies because:
a. Sometimes academic hairsplitting is necessary.
b. The channel members are part of the interorganizational system, while the
facilitating agencies are not.
c. The channel management problems are often different for channel members versus
facilitating agencies.
d. The use of facilitating agencies is not a frequent occurrence for many firms.
e. Channel members and facilitating agencies have different levels of control in the
movement of goods.
ANS: C (p. 10)
15. Management of the marketing channel frequently involves all of the following except:
a. Interorganizational management.
b. The setting of distribution objectives.
c. Operating the channel.
d. Interorganizational management.
e. Negotiating functions such as buying and selling.
ANS: D (p.10)
16. When a firm finally invents the Star-Trek® Transporter, its marketing channel will come
into existence only after:
a. The Transporter has been introduced to the market.
b. The negotiatory functions have taken place.
c. Target markets have been defined.
d. Shipping alternatives have been considered.
e. Facilitating agencies have been contacted.
ANS: B
4
Chapter 1
CHAPTER 1—MARKETING CHANNEL CONCEPTS
MULTIPLE CHOICE
1. Which type of strategy did Walmart decide to use to compete with Amazon?
a. Heavy advertising
b. Price reduction
c. Establish kiosks in Walmart stores
d. Wholesale distribution
e. Mass distribution via its own online channel
ANS: E (p. 4)
2. Which of the following statements is false?
a. Consumer expectations have moved firms to add additional channels.
b. Both B2C and B2B businesses are increasing the number of channels they use to
distribute their products
c. The flexibility to respond to consumers does not appear to be relevant to channel
design.
d. Channels must be targeted to reach intended customer segments.
e. The increasing role of technology is helping to foster the use of multiple channels.
ANS: C (p. 6)
3. Which of the following is a true statement about Internet-based channels?
a. Walmart's channel model continues to rely on its 'brick and mortar' stores
exclusively.
b. ‘Bricks and Mortar’ retailers that added online capabilities to traditional channels
of distribution have had sluggish sales.
c. Online sales have become an established distribution channel for B2C but not B2B
markets.
d. Internet-based channels have become a mainstream channel in the channel mixes
of many firms.
e. The growth of E-commerce is beginning to slow.
ANS: D (p. 6-8)
4. A sustainable competitive advantage is one that
a. lasts at least five years.
b. is based on a superior product feature.
c. usually stresses a lower price.
d. is difficult for competitors to match.
e. stresses heavy promotional spending.
ANS: D (p. 9)
1
, Test Bank For Marketing Channels
Chapter 1
5.According to the text, the most promising avenue for gaining a sustainable competitive
advantage today is through an emphasis on:
a. Pricing strategy.
b. Channel strategy.
c. Promotion strategy.
d. Product strategy.
e. Supply strategy.
ANS: B (p.9)
6. Which of the following is not relevant to the definition of, channel?
a. External, meaning the channel exists outside the firm.
b. Internal, meaning the channel exists as part of the firm.
c. Contactual organization, referring to those firms involved in negotiatory functions.
d. Operates, suggesting involvement by management in the affairs of the channel.
e. Distribution objectives, meaning management has certain distribution goals in
mind.
ANS: B (p. 10)
7. Relating to the term, channel manager, which of the following statements is false?
a. Most firms and organizations have a single designated position called channel
manager.
b. Channel managers refer to anyone in a firm who is involved in the marketing
channel decision making.
c. Depending on the type of firm, many different executives may be involved in
making channel decisions.
d. In some franchise organizations the, manager of franchisee relations, sometimes
plays an important role in channel decision making.
e. The term channel manager is used because it provides a sense of focus to the role
of channel decision making
ANS: A (p. 11-12)
8. According to the text, the technology that is likely to have the greatest impact on
marketing channels is:
a. Television.
b. Automated warehousing.
c. The Internet.
d. Hand-held computers.
e. Cellular phones.
ANS: C
2
, Test Bank For Marketing Channels
Chapter 1
9.According to the text, the confusion over the definition of the marketing channel stems
mainly from which of the following causes?
a. Marketing channels are complex.
b. There are simply too many definitions of the marketing channel.
c. Too many “academic types” have become involved.
d. The differing perspectives or viewpoints used.
e. There are too many marketing channels for anyone to understand.
ANS: D (p. 10-11)
10. The text argues that the role of marketing channels in marketing management is:
a. An extremely important tactical issue.
b. The most important part of marketing management.
c. Of strategic importance in many cases.
d. Important mainly in the automobile business.
e. To offset problems in product strategy.
ANS: C
11. Consumers often view the marketing channel as simply:
a. Part of the manufacturer’s organization.
b. A group of parasites who are mainly responsible for the high prices at the
supermarket.
c. A lot of middlemen standing between them and the producer of the product.
d. The flow of goods and services through the economy.
e. The path taken by the title to goods as it moves through agencies that take title or
facilitate its transfer.
ANS: C
12. According to the view taken in the text, the marketing channel may be defined as:
a. the intra-organizational system for moving goods and services to their markets.
b. the external contactual organization that management operates to achieve its
distribution objectives.
c. the path taken by goods or services as they flow from producer to final user.
d. all firms outside of the organization that are involved in performing marketing
functions.
e. the infrastructure used to move goods from manufacturer to retailer.
ANS: B (p. 10)
3
, Test Bank For Marketing Channels
Chapter 1
13.When Wal-Mart is performing negotiatory functions, it is involved in
a. Transferring title, selling, and buying.
b. Buying, selling, and transportation.
c. Risk-taking, selling, and credit.
d. Selling and advertising.
e. Transferring title and providing storage.
ANS: A
14. A distinction is made between channel members and facilitating agencies because:
a. Sometimes academic hairsplitting is necessary.
b. The channel members are part of the interorganizational system, while the
facilitating agencies are not.
c. The channel management problems are often different for channel members versus
facilitating agencies.
d. The use of facilitating agencies is not a frequent occurrence for many firms.
e. Channel members and facilitating agencies have different levels of control in the
movement of goods.
ANS: C (p. 10)
15. Management of the marketing channel frequently involves all of the following except:
a. Interorganizational management.
b. The setting of distribution objectives.
c. Operating the channel.
d. Interorganizational management.
e. Negotiating functions such as buying and selling.
ANS: D (p.10)
16. When a firm finally invents the Star-Trek® Transporter, its marketing channel will come
into existence only after:
a. The Transporter has been introduced to the market.
b. The negotiatory functions have taken place.
c. Target markets have been defined.
d. Shipping alternatives have been considered.
e. Facilitating agencies have been contacted.
ANS: B
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