Free test bank for marketing channel strategy 8th

Free Test Bank for Marketing Channel Strategy 8th
Edition by Palmatier Multiple Choice Questions
Which term refers to reducing the use of intermediaries?
1.

A) allocation

2.

B) facilitation

3.

C) routinization

4.

D) reintermediation

5.

E) disintermediation

Compu-Tech is an information technology firm that handles
customer orders and payments for a variety of online retailers.
Compu-Tech is most likely a(n) ________.
1.

A) specialized intermediary

2.

B) merchant wholesaler

3.

C) retail intermediary

4.

D) specialty store

5.

E) distributor

What is the most likely outcome of an ineffective marketing channel
strategy?
1.

A) limited product reach

2.

B) too many channel captains

3.

C) quick product line maturation

4.

D) excessive gatekeeper control

5.

E) wasted marketing mix components

What should most likely be the goal of all marketing channel
members?


1.

A) moving products to retailers

2.

B) expanding sales territories

3.

C) reducing distribution errors

4.

D) satisfying end-users

5.

E) promoting products

Audrey works as a manufacturers’ representative for an athletic
shoe company. In her position, Audrey is most likely responsible for
________.
1.

A) generating marketing intelligence about the footwear industry

2.

B) taking physical possession of large quantities of shoes

3.

C) analyzing international markets for new shoe trends

4.

D) negotiating terms of trade with shoe retailers

5.

E) scheduling shoe deliveries and returns

What general term refers to middle channel members in the
marketing channel?
1.

A) intermediaries

2.

B) manufacturers

3.

C) distributors

4.

D) brokers

5.

E) agents

ElectroInc produces cell phone accessories and sells them to firms
such as Apple and Samsung. Apple and Samsung put their own
brand names on ElectroInc products before selling them to endusers. Which term best describes ElectroInc?
1.

A) retailer

2.

B) wholesaler


3.

C) branded manufacturer

4.

D) specialized manufacturer

5.

E) private-label manufacturer

All of the following channel functions can move either upward or
downward in the marketing channel EXCEPT ________.
1.

A) information sharing

2.

B) negotiating

3.

C) financing

4.

D) risk taking

5.

E) ordering

Manufacturers are LEAST likely to use intermediaries to:
1.

A) negotiate terms of trade

2.

B) manage production levels

3.

C) transport products to customers

4.

D) facilitate product orders and payments

5.

E) sell products directly to final consumers

Which statement is most likely true about a marketing channel
system?
1.

A) Firms in the marketing channel typically work independently.

2.

B) Modifying a channel system is usually a simple, inexpensive task.

3.

C) Marketing channels represent a very small portion of the world’s business.

4.

D) Most marketing channel systems are easily duplicated by other firms in an
industry.

5.

E) Efficient marketing channels reduce distribution costs and increase
customer satisfaction.


Which term refers to activities such as physically distributing
products, engaging in after-sales service, and handling customer
payments?
1.

A) segmentation

2.

B) disintermediation

3.

C) channel strategies

4.

D) channel functions

5.

E) supply chain management

According to the text, what is a new trend taking place among retail
intermediaries?
1.

A) selling products directly to individual end-users

2.

B) selling products and services to businesses

3.

C) promoting products through catalogs

4.

D) selling products to wholesalers

5.

E) shipping products overseas

The greatest number of contact lines most likely involves
manufacturers selling products ________.
1.

A) directly to retailers

2.

B) through one wholesaler

3.

C) directly to intermediaries

4.

D) through two wholesalers

5.

E) through three wholesalers

All of the following are sorting functions performed by intermediaries
EXCEPT ________.
1.

A) building up an assortment of products for resale purposes

2.

B) dividing stocks into smaller groups for easier handling

3.

C) combining similar products from multiple sources

4.

D) matching buyer product needs to retailer stocks

5.

E) sorting and grouping products that are similar

Katherine, a channel manager with a shoe manufacturer, recently
learned that prices in the channel are higher than desired by endusers. Katherine most likely used a(n) ________ to determine this
information.
1.

A) normative profit share

2.

B) gap analysis template

3.

C) segmentation grid

4.

D) efficiency template

5.

E) make-or-buy channel analysis

Which channel function almost always moves forward from the
producer to the consumer?
1.

A) negotiation

2.

B) promotion

3.

C) financing

4.

D) payment

5.

E) risk

Which of the following indicates the proportional value added to the
total channel’s performance by each channel member?
1.

A) make-or-buy channel analysis

2.

B) segmentation analysis

3.

C) service outputs matrix

4.

D) gap analysis template


5.

E) normative profit share

Which of the following most likely occurs in the first stage of the
marketing channel strategy framework?
1.

A) comparing different channel structures and strategies

2.

B) segmenting the market based on end-users’ needs

3.

C) identifying best practices in channel structures

4.

D) examining potential channel conflicts

5.

E) developing policies and practices

Which of the following is LEAST likely a carrying cost associated
with a retailer taking title of a manufacturer’s products?
1.

A) storage

2.

B) breakage

3.

C) integration

4.

D) depreciation

5.

E) obsolescence

Which term refers to splitting a market into groups of end-users?
1.

A) product promotion

2.

B) search facilitation

3.

C) channel integration

4.

D) segmentation

5.

E) routinization

Valu-Mart wants to ensure that its stores are never under- or
overstocked with certain products, such as paper towels, sodas,
and cereal. Which tool would most likely help Valu-Mart solve this
problem?


1.

A) ROI

2.

B) CRP

3.

C) CRM

4.

D) OEM

5.

E) SWOT

Sony produces televisions and computers and sells them through
electronics stores. In a marketing channel, Sony would best be
described as a ________.

1.

A) trading company

2.

B) manufacturer

3.

C) wholesaler

4.

D) distributor

5.

E) retailer

Which channel function most likely plays a role in all value-added
activities of a marketing channel system?
1.

A) information sharing

2.

B) promotion

3.

C) negotiation

4.

D) payment

5.

E) ordering

What risk does a branded manufacturer most likely face by
allocating part of its production capacity to private-label products?
1.

A) complicating the channel strategy

2.

B) creating a future competitor

3.

C) reducing licensing income


4.

D) losing customer trust

5.

E) depleting inventories

Which term refers to value-added services and products created by
channel members and consumed by end-users?
1.

A) wholesale bulk goods

2.

B) convenience products

3.

C) bundled services

4.

D) normative shares

5.

E) service outputs

Martin, a channel manager for an appliance manufacturer, needs to
evaluate the importance of each channel function in terms of cost
and value. Martin also needs to determine the proportion of each

channel function performed by each channel member. Which of the
following should Martin most likely use for this task?
1.

A) efficiency template

2.

B) cost-equity matrix

3.

C) normative profit metric

4.

D) segmentation grid

5.

E) gap analysis template

A ________ is a channel member that takes the primary role of
establishing and maintaining channel links.
1.

A) channel intermediary

2.

B) wholesaler

3.

C) sub-processor

4.

D) gatekeeper

5.

E) channel captain


Which channel function almost always moves up the channel from
the end-user to the producer?
1.

A) negotiation

2.

B) ownership

3.

C) financing

4.

D) payment

5.

E) risk

How do intermediaries most likely create utility for end-users?
1.

A) negotiating financing terms with wholesalers

2.

B) ensuring product availability and assortment

3.

C) developing large stocks of similar products

4.

D) creating timely promotional materials

5.

E) offering convenient online tools

Which of the following is most likely an example of a firm engaging
in disintermediation?

1.

A) sorting products for suppliers

2.

B) selling products directly online

3.

C) reducing promotional activities

4.

D) scheduling product shipments

5.

E) replenishing inventory automatically

Which of the following is most likely a true statement about channel
functions?
1.

A) The order in which channel functions occur is the same for all industries
and products.

2.

B) All channel members must participate in every channel function to have full

efficiency.


3.

C) All channel functions move in a downward direction from the producer to
the end-user.

4.

D) Specialization tends to reduce marketing channel efficiency because of
increased members.

5.

E) The performance of certain channel functions correlates with other channel
functions.

All of the following are key channel elements that must be managed
to ensure that a channel system runs smoothly EXCEPT
________.
1.

A) power

2.

B) conflict

3.

C) logistics

4.

D) segments

5.

E) relationships

Tanya recently purchased paper towels, sodas, and frozen pizzas
at Sam’s Club, a hypermarket. In the marketing channel system,
Tanya is best described as a(n) ________.
1.

A) independent retailing agent

2.

B) consumption representative

3.

C) downstream channel member

4.

D) upstream channel member

5.

E) specialized intermediary

Which factor would LEAST likely be considered in the
implementation stage of the marketing channel strategy
framework?
1.

A) channel member power and dependence

2.

B) channel partner relationships


3.

C) end-user segmentation

4.

D) channel policies

5.

E) logistics

Which of the following tasks would LEAST likely be conducted by a
merchant wholesaler?

1.

A) taking possession of inventory

2.

B) producing private-label goods

3.

C) arranging customer financing

4.

D) promoting new products

5.

E) storing inventory

Which of the following would be the best method for reducing
channel conflict?
1.

A) altering channel promotions

2.

B) expanding channel contacts

3.

C) applying channel power

4.

D) managing channel logistics

5.

E) restructuring the channel

A marketing channel strategy is a set of activities focused on
designing and managing a marketing channel for the purpose of
________.
1.

A) expanding a firm’s position in niche markets

2.

B) improving a firm’s sustainable competitive advantage

3.

C) minimizing difficulties with global distribution centers

4.

D) evaluating marketing expenses in order to find cost savings

5.

E) modifying the marketing mix to extend the product life cycle


The benchmarking stage of the marketing channel strategy
framework focuses on ________.
1.

A) establishing the power and dependence of channel members

2.

B) creating an environment for executing the best strategy

3.

C) identifying best practices in well-developed systems

4.

D) analyzing the needs of end-users and producers

5.

E) lowering channel system costs

Department stores, convenience stores, and warehouse clubs are
best categorized as ________.

1.

A) category killers

2.

B) product distributors

3.

C) retail intermediaries

4.

D) wholesale intermediaries

5.

E) specialized intermediaries

Which term refers to a set of independent organizations involved in
the process of making a product or service available for use or
consumption?
1.

A) value chain

2.

B) supply chain

3.

C) marketing channel

4.

D) wholesale consortium

5.

E) multinational enterprise

0 Free Test Bank for Global Marketing Management 8th
Edition by Keegan Multiple Choice Questions


A company that sees only the similarities between the domestic and
the world market is said to have a(n) ________ orientation.
1.

A) regiocentric

2.

B) ethnocentric

3.

C) concentric

4.

D) polycentric

Which of the following orientations is based only on home-country
superiority?
1.

A) ethnocentric

2.

B) polycentric

3.

C) geocentric

4.

D) regiocentric

Which of the following companies typically has a polycentric
management orientation?
1.

A) transnational

2.

B) international

3.

C) domestic

4.

D) multinational

Which of the following statements best describes the phrase "global
localization" in a nutshell?
1.

2.

A) A global product must be the same product everywhere without
modifications in the marketing mix.
B) A global marketer must push local markets to accept global products.

3.

C) A global marketer must adapt product marketing mix to the similarities and
differences in the world market.

4.

D) A global product must be a different product everywhere across the world
regions.

In a(n) ________ international company, foreign operations are
viewed as being secondary or subordinate to domestic operations.
1.

A) ethnocentric

2.

B) concentric

3.

C) polycentric

4.

D) regiocentric

Which of the following statements is true about global marketing?
1.

A) Marketing practices must vary between different market segments.

2.

B) Customers and markets across regions are considered similar.

3.

C) Transferring irrelevant experience between markets may be beneficial.

4.

D) Marketing initiatives cannot include more than one marketing mix element.

Which of the following is a driving force for global integration?
1.

A) domestic focus

2.

B) market needs

3.

C) market differences

4.

D) national controls

Which of the following statements is true of a polycentric company?
1.

A) Its orientation is based on a belief in home-country superiority.

2.

B) Its marketing management is decentralized.

3.

C) It's generally referred to as a domestic company.

4.

D) It views foreign operations as being secondary to domestic operations.

Which of the following is a marketing mix element?
1.

A) profit

2.

B) promotion


3.

C) potential

4.

D) package

Which of the following is a focus of the new concept of marketing?

1.

A) Mmaking a profit is the only end result of selling products.

2.

B) emphasizing the product rather than the end consumer

3.

C) achieving objectives by pushing products toward consumers

4.

D) using integrated marketing mix to achieve profits

Which of the following management orientations provides a
worldview and sees the similarities and differences in home and
host countries?
1.

A) ethnocentric

2.

B) polycentric

3.

C) concentric

4.

D) geocentric

Which of the following factors restrains ethnocentric companies
from pursuing opportunities in the global market?
1.

A) experience transfer

2.

B) scale economies

3.

C) global strategy

4.

D) management myopia

Levy Inc., a U.S.-based smartphone manufacturer, extends its line
of high-end smartphones to the Asian market to capitalize on the
high demands for smartphones. Owing to its huge success in the
United States, Levy uses the same set of marketing mix in the
Asian markets. In this case, the company's management orientation
is referred to as ________.

1.

A) regiocentric

2.

B) polycentric

3.

C) concentric

4.

D) ethnocentric

Which of the following statements is true about the strategic
concept of marketing?
1.

A) Its objective is to maximize stakeholder benefits.

2.

B) It has a product-centric marketing focus.

3.

C) It emphasizes marketing from a company-centric paradigm.

4.

D) Its focus is only on consumers and not their societies.

A(n) ________ company typically has a regiocentric or geocentric
management orientation.
1.

A) multinational

2.

B) transnational

3.

C) domestic

4.

D) international

Latour Boutiques, which is based in Europe, views each section
within the European Union as a unique market and develops an
integrated marketing strategy to sell its products. Due to its success
in the European territory, Latour exports its products to other world
markets sans any modifications. In this case, Latour's management
orientation is typically ________.
1.

A) concentric

2.

B) polycentric

3.

C) regiocentric

4.

D) geocentric


Which of the following companies is centralized in its market
management strategies?
1.

A) ethnocentric

2.

B) polycentric

3.

C) regiocentric

4.

D) geocentric

A(n) ________ corporation tries to link world resources to world
market opportunities.
1.

A) ethnocentric

2.

B) geocentric

3.

C) polycentric

4.

D) concentric

Which of the following is a restraining force behind global
integration?
1.

A) market needs

2.

B) management vision

3.

C) strategic intent

4.

D) national controls

Which of the following management orientations views only the
differences in the world regions?
1.

A) ethnocentric

2.

B) regiocentric

3.

C) polycentric

4.

D) concentric