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Principles of Marketing, 15e (Kotler/Armstrong)
Chapter 12 Marketing Channels: Delivering Customer Value

1) Lifebelt Insurance sells insurance only through its door-to-door salespeople. What type of
marketing channel does Lifebelt use?
A) inclusive
B) multitiered
C) indirect
D) direct

2) A marketing channel which consists of one or more intermediaries is known as a(n) ________
marketing channel.
A) cyclic
B) upstream
C) indirect
D) direct

3) Which of the following is an example of an indirect marketing channel?

A) June Bride, which sells bridal gowns via its click-to-order online catalogs
B) Farmer Brown, who delivers fresh milk from his dairy to customers every morning
C) Wine & Dine, which sells its picnic hampers to select novelty stores across the country
D) Lifebelt Insurance, which sells life insurance through its door-to-door salespeople

4) Conflict which occurs among firms at the same level of the marketing channel is known as
________ conflict.
A) multitiered
B) horizontal
C) vertical
D) exterior

5) Conflict which occurs between different levels of the same marketing channel is known as
________ conflict.
A) horizontal
B) vertical
C) multitiered
D) equilateral

6) Which of the following is true of conventional distribution channels?

A) Channel members have complete control over each other.
B) Channel members seek to maximize their own profits.
C) Channel conflict is governed by formal mechanisms.
D) Channel members are assigned roles according to a clearly defined framework.

7) A(n) ________ marketing system consists of producers, wholesalers, and retailers acting as a
unified system.

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A) horizontal
B) vertical
C) multitiered
D) communal

8) Which of the following is true of vertical marketing systems?

A) Producers, wholesalers, and retailers act as a unified system.
B) Channel members have no control over each other.
C) Channel members work independently with no cooperation from other members.
D) The system is dominated by the consumer.

9) A ________ consists of independent firms at different levels of production and distribution

who join together through formal agreements to obtain more economies or sales impact than
each could achieve alone.
A) corporate VMS
B) contingency VMS
C) contractual VMS
D) communal VMS

10) The ________ organization is the most common type of contractual relationship.
A) franchise
B) horizontal
C) conventional
D) multi-national

11) In a(n) ________, leadership is assumed not through common ownership or contractual ties
but through the size and power of one or a few dominant channel members.
A) horizontal marketing system
B) administered VMS
C) corporate VMS
D) contractual VMS

12) ________ distribution is a strategy in which producers of convenience products and raw
materials stock their products in as many outlets as possible.
A) Direct
B) Intensive
C) Selective
D) Exclusive

13) For which of the following products would the intensive distribution strategy most likely be
used?
A) high-end cameras
B) luxury cars
C) furniture
D) soft drinks

14) Whitelight stocks its toothpastes in all convenience stores across the country. This is an

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example of ________ distribution.
A) exclusive
B) selective
C) hybrid
D) intensive

15) With which of the following strategies would a company give only a limited number of
dealers the right to distribute its products in their territories?
A) exclusive distribution
B) extensive distribution
C) moderate distribution
D) intensive distribution

16) For which of the following would a company use an exclusive distribution strategy?
A) luxury cars
B) newspapers
C) chewing gum
D) dairy products

17) Ocean Spray sells its air fresheners only through Ray's Retail Chain. This is an example of
________ distribution.
A) exclusive
B) selective
C) intensive
D) indirect

18) ________ distribution involves the use of more than one but fewer than all of the
intermediaries who are willing to carry a company's products.
A) Exclusive
B) Selective
C) Intensive
D) Indirect

19) Which of the following is true of the exclusive distribution strategy?

A) It makes products available to everybody, everywhere.
B) It is used primarily for convenience items.
C) It helps promote a brand's luxury image.
D) It gives producers no control over their products.

Comprehensive questions
1) Compare conventional marketing channel and vertical marketing system. Discuss three
types of vertical marketing system.

2) Distinguish 3 distribution strategies. Provide examples to support your explaination.

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