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| 1 | |
Disintermediation is defined as: |
| | A) | the refusal to pay slotting fees |
| | B) | a way to prevent dealers from carrying a competitor's products |
| | C) | the method used to select intensity of distribution |
| | D) | the elimination of middle from distribution channels |
| | E) | the refusal to sell to certain middlemen |
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| 2 | |
At which stage of the channel design process should a manufacturer be concerned about determining what intensity of distribution is appropriate? |
| | A) | after specific channel members have been selected |
| | B) | as the very last step in the decision process |
| | C) | after the types of channels have been selected |
| | D) | as the very first step in the decision process |
| | E) | never--it is not a stage of the channel design process |
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| 3 | |
CDW Computer Centers is the largest reseller of computer equipment in the United States. It buys equipment from 100s of suppliers all over the world, and has it readily available for the approximately 360,000 small- and medium-sized businesses it sells to. CDW is part of a(n) _____ channel of distribution. |
| | A) | selective |
| | B) | indirect |
| | C) | horizontal |
| | D) | direct |
| | E) | administered |
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| 4 | |
Service providers like hair salons, auto repair shops, and physical therapists use _____ channels of distribution. |
| | A) | exclusive |
| | B) | indirect |
| | C) | horizontal |
| | D) | direct |
| | E) | contractual |
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| 5 | |
Zara is a retail clothier that began in Spain and is gradually taking over the European clothing market. Unlike many retailers, the company has complete control of nearly every aspect of its business-from manufacturing the clothes to owning its own trucking company. Zara is an example of a(n): |
| | A) | contractual VMS |
| | B) | administered VMS |
| | C) | wholesaler-sponsored voluntary chain |
| | D) | corporate VMS. |
| | E) | franchise system |
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| 6 | |
Which of the following is an example of a market factor that affects the choice of distribution channel? |
| | A) | number of potential customers |
| | B) | services provided by middlemen |
| | C) | technical nature |
| | D) | desire for company control |
| | E) | unit value |
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| 7 | |
A manufacturer of coaxial cables is looking for a distributor when it determines that CDW Computer Centers that CDW's prides itself on the fact ninety-nine percent of its orders are shipped on the day the order is received. The manufacturer is looking at _____ factors for choosing a channel of distribution. |
| | A) | market-related |
| | B) | internal marketing |
| | C) | middlemen |
| | D) | product-related |
| | E) | sales-oriented |
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| 8 | |
For which of the following products would intensive distribution be most appropriate? |
| | A) | Oriental rugs |
| | B) | tennis rackets |
| | C) | women's handbags |
| | D) | nail clippers |
| | E) | orchids |
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| 9 | |
Exclusive distribution helps a manufacturer to: |
| | A) | control the last level of middleman before the final customer |
| | B) | create opportunities for disintermediation |
| | C) | avoid vertical conflict |
| | D) | create a corporate vertical marketing system |
| | E) | avoid legal problems associated with control methods sometimes used by manufacturers |
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| 10 | |
There are five independent flower and gift shops in a town of fewer than 5,000 people. You would expect _____ to exist between the five retailers. |
| | A) | horizontal channel empowerment |
| | B) | vertical conflict |
| | C) | image synergy |
| | D) | vertical integration |
| | E) | horizontal conflict |
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| 11 | |
When a manufacturer chooses to implement disintermediation, _____ is likely to occur. |
| | A) | horizontal channel empowerment |
| | B) | vertical conflict |
| | C) | online synergy |
| | D) | vertical integration |
| | E) | horizontal conflict |
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| 12 | |
According to the text, three sources of power in distribution channels are: |
| | A) | rewards, punishments, and banishments |
| | B) | negative reinforcement, positive reinforcement, and punishment |
| | C) | expertise, rewards, and sanctions |
| | D) | expertise, financial strength, and market share |
| | E) | economic power, market share, and expertise |
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| 13 | |
What are the potential benefits received from treating the distribution channel as a partnership? |
| | A) | lower inventory costs |
| | B) | improved quality of goods and services |
| | C) | lower operating costs |
| | D) | more rapid order fulfillment |
| | E) | all of the above |
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| 14 | |
Exclusive dealing, tying contracts, and refusals to deal are considered illegal when they: |
| | A) | compromise attempts to institute disintermediation |
| | B) | are implemented internationally |
| | C) | create a monopoly |
| | D) | lead to the use of dynamic pricing |
| | E) | ignore the wheel or retailing hypothesis |
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