Chapter 1—Marketing Channel Concepts
MULTIPLE CHOICE
1. Which type of strategy did Kraft decide to use when positioning and distributing Altoids in
the U.S. market?
a. Heavy advertising
b. Price reduction
c. Online
d. Wholesale
e. Mass distribution
ANS: E
2. Which of the following was not mentioned as a factor that has caused a shift in emphasis to
marketing channel strategy?
a. the decreasing importance of marketing channels
b. growing power of distributors
c. need to reduce distribution costs
d. difficulty of gaining sustainable competitive advantage
e. increasing role of technology
ANS: A
3. Which of the following is a false statement about the E-commerce revolution?
a. Yahoo, eBay, and autobytel are examples of infomediaries.
b. ‘Bricks and Mortar’ retailers that added online capabilities to traditional channels of
distribution have surpassed dot.com companies.
, c. Online sales have become an established distribution channel for both B2C and B2B
markets.
d. Disintermediation took place at a level far above expectations.
e. E-commerce is converging with conventional distribution channels around the
world.
ANS: D
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
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
6. The term “gatekeeper” as used in the textbook refers to
a. the power of manufacturers in the channel.
, b. the power of retailers in the channel.
c. the power of consumers in the channel.
d. the power of suppliers in the channel.
e. the power of manufacturer’s representatives in the channel.
ANS: B
7. According to the data presented in the text, distribution costs are highest for
a. packaged foods.
b. fax machines.
c. gasoline.
d. software.
e. automobiles.
ANS: A
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
, 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
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
MULTIPLE CHOICE
1. Which type of strategy did Kraft decide to use when positioning and distributing Altoids in
the U.S. market?
a. Heavy advertising
b. Price reduction
c. Online
d. Wholesale
e. Mass distribution
ANS: E
2. Which of the following was not mentioned as a factor that has caused a shift in emphasis to
marketing channel strategy?
a. the decreasing importance of marketing channels
b. growing power of distributors
c. need to reduce distribution costs
d. difficulty of gaining sustainable competitive advantage
e. increasing role of technology
ANS: A
3. Which of the following is a false statement about the E-commerce revolution?
a. Yahoo, eBay, and autobytel are examples of infomediaries.
b. ‘Bricks and Mortar’ retailers that added online capabilities to traditional channels of
distribution have surpassed dot.com companies.
, c. Online sales have become an established distribution channel for both B2C and B2B
markets.
d. Disintermediation took place at a level far above expectations.
e. E-commerce is converging with conventional distribution channels around the
world.
ANS: D
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
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
6. The term “gatekeeper” as used in the textbook refers to
a. the power of manufacturers in the channel.
, b. the power of retailers in the channel.
c. the power of consumers in the channel.
d. the power of suppliers in the channel.
e. the power of manufacturer’s representatives in the channel.
ANS: B
7. According to the data presented in the text, distribution costs are highest for
a. packaged foods.
b. fax machines.
c. gasoline.
d. software.
e. automobiles.
ANS: A
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
, 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
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
