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Exam 13: Marketing Channels

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Question 31

Multiple Choice

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Some countries,such as the Peoples Republic of China and to some extent India,require foreign companies to form joint ventures with domestic firms in order to enter a market.This requirement often forces technology transfers and managerial control to the domestic partner.These types of equity agreements also require the establishment of a(n) _____ channel relationship.

A) Arm's Length
B) functional
C) cooperative
D) hierarchical
E) integrated

F) A) and D)
G) A) and B)

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Question 32

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Redbox Movie DVD sales represent a $16 billion market, and rentals make up another $7.5 billion. Naturally, production studios would prefer consumers purchase DVDs rather than rent them. Production studios like Twentieth-Century Fox, Warner Bros, and General Electric refused to sell new releases to Redbox, a DVD vending machine company, until almost a month after new releases arrived in stores. Redbox, the ubiquitous DVD rental red kiosks found in- and outside of convenience stores, grocery stores, drugstores, fast-food restaurants, and Wal-Mart, is cutting in on production companies' profits. These studios are tangled in lawsuits with Redbox. Sony, Paramount, and Lionsgate, on the other hand, permit distribution through Redbox, and Disney allows third-party distribution to Redbox. With more than 20,000 kiosks now in operation, Redbox ranks fifth in DVD rental revenues, which is impressive considering the rental fee is only $1.00. But Blockbuster is trying to steal vending market share by allowing NCR Corporation, known for ATM machines, to license its name to place Blockbuster Express kiosks in similar types of locations. -Refer to Redbox.Redbox offers DVDs from several production studios,such as Disney,Sony,and Paramount. Consumers just have to rent from Redbox instead of obtaining the DVD from the various production studios if they want a children's movie from Disney and an action movie from Paramount. Thus,one kiosk provides _____ for both consumers and the production studios.

A) contact efficiency
B) integration
C) synergy
D) distribution efficiency
E) distribution intensity

F) A) and D)
G) C) and D)

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Question 33

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LoneStar Bar & Grill is a small chain of restaurants that feature marinated steaks.The marinade is so popular that LoneStar sells it at its restaurants and also sells it at Kroger supermarkets.This is an example of intensive distribution.

Polo brand apparel is only available in fine department stores or from Polo retail stores.Which distribution strategy has Polo adopted?

_____ is the joint effort of all channel members to create a supply chain that serves customers and creates a competitive advantage.

Vicobello is a major manufacturer of outdoor fountains that are currently popular in gardens.Even though fountains represent a product category that does not sell year round due to inclement weather,Vicobello's sales remain steady all year because it sells to wholesale distributors that stock the product.Its wholesale distributors are primarily helping to overcome a(n) _____ discrepancy.

In 1935,Howard Johnson teamed up with Reginald Sprague to establish the first modern restaurant franchise.Their idea was to let independent operators use the same name,food,supplies,logo and even building design in exchange for a fee.In terms of the type of channel relationships established,this non-equity agreement would require a(n) _____ relationship.

When Delphi-Grundig,a manufacturer of state-of-the-art car radios,decided to expand its marketing efforts into countries in which its products are not currently available,it did not have the time or resources to spend on developing new channels of distribution.Delphi-Grundig should consider a(n) :

Residents of Sobarro,New Mexico,live in an isolated area of the state.Residents must travel two hours to receive medical treatment.Luckily,a physician has just opened a new practice in Sobarro.In this case,the physician has overcome service discrepancies by opening an office close to consumers.

Generally,_____ determine what type of intermediary a manufacturer should use:

Husqvarna Viking manufactures sewing machines.The company carefully screens its dealers to ensure a quality dealer image and service ability.Only a few dealers are chosen in any single geographic area.This is an example of _____ distribution.

Which of the following enables a company to use another manufacturer's already established channel?

A merchant wholesaler is an institution that buys goods from manufacturers and resells them to businesses,government agencies,and other wholesalers or retailers.

A channel leader is also called a(n) :

Marketing channels perform all of the following logistical activities EXCEPT:

Honda uses just-in-time manufacturing to build its Odyssey minivans.Five companies that make component parts for the Honda Odyssey relocated to Alabama and states bordering Alabama when Honda announced plans to build a new Odyssey manufacturing plant in Alabama.This relocation in order to provide efficient delivery of goods indicates Honda is a:

It seems counterintuitive,but Jon Jordan,CEO of Southern Audio Services (SAS) in Baton Rouge,wants to curb the number of dealers who are selling his car speakers.Jordan understands that he can't handpick all his vendors,but he never expected the rise in unauthorized dealers that came with the e-commerce boom.When Jordan decided to look for the SAS name on eBay,he came up thousands of sellers.These eBay sellers are engaging in:

Name and briefly describe the three levels of distribution intensity.Give examples of two products that logically would be distributed at each level of intensity.

W.W.Grainger,Inc.,is one of the world's largest business-to-business distributors of equipment,component parts,and supplies in the United States and Canada.It has ownership title to over 220,000 products,which are stocked in one national and nine regional warehouses to guarantee product availability and quick service to the many manufacturers who are its customers.W.W.Grainger is an example of a(n) :

Which of the following statements concerning how market factors affect channel decisions is true?