1. ________ means that the company or site
offers to transact or facilitate the selling of products or services online.
a. E-business
b. E-commerce
c. E-purchasing
d. E-marketing
e. None of the above

2. ________ means companies decide to purchase
goods, services, and information from various online suppliers.
a. E-business
b. E-commerce
c. E-purchasing
d. E-marketing
e. none of the above

3. ________ describes company efforts to
inform buyers, communicate, promote, and sell its products and services over
the Internet.
a. E-business
b. E-commerce
c. E-purchasing
d. E-marketing
e. None of the above

4. ________ are companies that have launched a
Web site without any previous existence as a firm.
a. Dot-coms
b. Internet firms
c. Pure-click firms
d. Brick-click firms
e. None of the above

5. ________ are existing companies that have
added an online site for information and/or e-commerce.
a. Store locations
b. Brick-and-click firms
c. Brick-and-mortar firms
d. Pure-click firms
e. None of the above

6. For the brick-and-click companies,
adding an e-commerce channel creates the threat of ________ from retailers, brokers, agents, and
other intermediaries.
a. competition
b. a backlash
c. cooperation
d. refusal
e. support

True/False

7. Marketing channels are sets of
interdependent organizations involved in the process of making a product or
service available for use or consumption.

8. Top marketing companies typically employ
either a push or a pull strategy.

9. Customers’ shopping habits can vary by
countries, and retailers that have largely stuck to the same selling formula
regardless of geography have sometimes encountered trouble in entering new
markets.

10. A hybrid channel is one in which the
manufacturer uses two or more different channels of distribution to reach the
target markets.

11. The ability to order a product online and
pick it up at a convenient retail location is an example of the consumers’
expectations for channel integration.

12. Habitual shoppers purchase from the same
places in the same manner over time.

13. High-involvement shoppers gather information
in all channels, purchasing in a low-cost channel, but taking advantage of
customer support from a high-touch channel.

14. Every individual consumer
typically chooses the same channels for serving all of their shopping needs in
making a purchase.

15. Thinking of the target market
first, then designing the supply chain backward from that point is called
demand chain planning.

16. A system of partnerships and alliances that
a firm creates to source, augment, and deliver its offering is called a demand
chain.

17. Delegating some of the selling
functions to intermediaries means loss of control over how and to whom the
products are sold.

18. A manufacturer selling a physical
product and related services might require three channels: a sales channel, a
delivery channel, and a service channel.

19. All channel functions need not be
performed for the channel to operate efficiently.

20. A direct marketing channel consists of a
manufacturer selling directly to one retailer.

21. The reverse-flow channels are not
important except in the cases of recycling, refurbishing, and disposal.

22. Designing a marketing channel involves
analyzing customer needs, establishing channel objectives, and identifying
cost-saving channels, identifying key channel partners, and evaluating all
alternatives.

23. Channel objectives should never be stated in terms of targeted
service outputs and levels but instead stated in terms of dollar costs.

24. Companies can choose from a wide
variety of channels for reaching customers—from sales forces to agents,
distributors, dealers, direct mail, telemarketing, and the Internet.

25. Channel objectives vary with
product characteristics.

26. Exclusive distribution involves
the use of more than a few but less than all of the intermediaries that are
willing to carry your product.

27. Selective distribution means
severely limiting the number of intermediaries.

28. Intensive distribution consists of the
manufacturer placing the goods or services in as many outlets as possible.

29. Moving to more intensive distribution to increase
coverage and sales may help in the short term, but it can hurt long-term
performance by encouraging retailers to compete aggressively.

30. Each channel alternative needs to be
evaluated against economic, control, and power criteria.

31. Channel arrangements, once
constructed, need not be modified over time.

32. Companies need to plan and implement
careful training programs for their intermediaries.

33. One of the major causes of channel conflict
is goal incompatibility between the manufacturer and the channel members.

34. Coercive power is objectively observable,
whereas legitimate, expert, and referent power are more subjective.

35. More sophisticated companies try to forge a
long-term partnership with distributors.

36. Once a manufacturer has identified the
appropriate channel for its new product, that channel is likely to remain
effective over the whole product life cycle.

37. A vertical marketing system comprises the
producer, wholesaler(s), and retailer(s) acting in their own interests.

38. V. Kasturi Rangan defines channel
stewardship as the ability of a given participant in a distribution channel to
create a go-to-market strategy that simultaneously addresses customers’ best
interests and drives profits for all channel partners.

39. A horizontal marketing system brings two
related firms together to marshal the resources or programs necessary to
provide an emerging marketing opportunity.

40. A company’s various channels
should ideally work in complete isolation.

41. Channel conflict is generated when
one channel member’s actions prevent another channel from achieving its goal.

42. Channel coordination occurs when channel
members are brought together to advance the goals of the channel.
:

43. The purpose of exclusive dealing, where the
seller requires that dealers not handle competitors’ products, is to
substantially limit competition. This is
legal as long as both parties enter into the agreement voluntarily.

44. E-business means that the company or site
offers to transact or facilitate the selling of products and services online.

45. E-marketing describes company efforts to
inform buyers, communicate, promote, and sell its products and services over
the Internet.

46.
In
adding e-commerce, a brick-and-click company need not worry about backlash from
retailers, brokers, agents, or other intermediaries.

Essay

101.
Explain
why the marketing channel system is so important to a firm.