CSUF MKTG 351-CHAPTER 14 PRACTICE EXAM |38 QUESTIONS AND ANSWERS|GUARANTEED SUCCESS

Define marketing channel or channel of distribution. ease the transfer of ownership as products move from producer to business user or consumer How do channel members facilitate the distribution process? -by providing specialization and division of labor Define channel members. all parties who negotiate with one another, buy or sell products, and facilitate change of ownership between buyer and seller in course of moving product form manufacturer into final consumer Define form utility. elements of composition or appearance of product that make it desirable Define time utility. increase customer satisfaction by making goods or services at the appropriate time Define place utility. usefulness of goods or services as a function of location at which is made available Define exchange utility. increased value of products or services that is created as its ownership is transferred Define retailers. firms in the channel that sell directly to consumers, provide efficiency for consumers, and simplify distribution by cutting down transactions Define direct channel. sells directly to consumers What do intermediaries do in a channel? -they negotiate with one another, facilitate the change of ownership between buyers and sellers, and physically move products from the manufacturer to the final consumer Define merchant wholesaler. a wholesaler that buys goods form manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers What is the 1st basic channel function? -transactional function; involve contacting and communicating with prospective buyers to make them aware of existing products What is the 2nd basic channel function? -logistics function; involve transportation and storage of assets, as well as accumulation, consolidation, and allocation for the purpose of conforming to customer requirements What is the 3rd basic channel function? -facilitating function; which includes research and financing Define direct channel. sell directly to consumers Define dual distribution or multiple distribution. producers using more than one or multiple channels to distribute products or services Define non-traditional channels. help differentiate firm's product from competition Define strategic-channel alliances. enables firms to use channels from other manufacturers that are already established Define reverse channel. channel for when consumers return products after the end of its useful life What factors affect channel choice? -market factors -product factors -producer factors What kind of market factors affect channel choice? -target market--target customer considerations What kind of product factors affect channel choice? -expensive product -standardized products -product's life cycle What kind of producer factors affect channel choice? -small firms require the use of more intermediaries due to lack of resources -bigger firms require less use of intermediaries, so they are able to use direct channels What are the 3 options for intensity of distribution? -intensive distribution -selective distribution -exclusive distribution Define intensive distribution. form of distribution aimed at having a product available in every outlet where target customers might want to buy it Define selective distribution. form of distribution achieved by screening dealers to eliminate all but a few in any single area Define exclusive distribution. a form of distribution that establishes one or a few dealers within a given area What are some types of channel relationships? -Arm's-length relationships -cooperative relationships -integrated relationships -co-opetition Define arm's length relationship. temporary or one-time only channel members due to sudden or unique need Define cooperative relationships. administered using formal contract b/c company wants less ambiguity but does not want a long term or capital investment Define integrated relationships. characterized by formal arrangements that explicitly define the relationship of channel members Define co-opetition. two companies working together on some initiatives while competing in other areas Define bilateral monopoly. one manufacturer supplies one retailer offering single supply and demand point throughout the chain Define retailer monopoly. single retailer uses multiple supplier Define manufacturing monopoly. single supplier provides products to multiple retailers Define opportunism. secretive behavior that improves a firm's standing at the expense of a partner firm Define active opportunism. when a firm violates agreements and restrictions, or forces another firm to renegotiate existing agreements when new circumstances arise