MKT101 TUTORIAL 9 (CHAPTERS 12 & 13)

True or False
1. Downstream marketing channel partners, such as wholesalers and retailers, T
form a vital link between the firm and its customers.
2. Producers use intermediaries because they create greater efficiency in T
making goods available to target markets.
3. Disintermediation occurs when radically new types of channel T
intermediaries displace traditional ones.
4. Electronic data interchange is the digital exchange of data between T
organizations, which primarily is transmitted via the Internet.
5. Wholesaling includes all the activities involved in selling products or F
services directly to final consumers for their personal, nonbusiness use.
6. Self-service retailers serve customers who are willing to perform their own T
locate-compare-select process to save time or money.
7. A discount store buys at less-than-regular wholesale prices and charges F
consumers less than retail.
8. In an automated warehouse, orders are fed directly from the retailer's T
information system to the wholesaler's, and the items are picked up by
mechanical devices and taken to a shipping platform where they are
assembled.

Multiple Choice Questions

1. Which of the following is most likely true of marketing channel decisions?
A) They often involve long-term commitments to other firms.
B) They have minimal influence on the prices of products offered to customers.
C) They increase the amount of time a company spends connecting with customers.
D) They increase the amount of effort a company puts in to distribute goods.
E) They are easily altered, replaced, or discarded.

2. Which of the following companies uses a direct marketing channel?

A) Fishhooks, a factory that manufactures fishing equipment that it ships to hobby stores
worldwide
B) Germfight, a factory that manufactures dental products that it distributes only to select
department stores
C) Apple Blossoms, a company that sells its cosmetics exclusively through Ray's Retail
Store
D) Holly Wreaths, a store that sells Christmas ornaments to customers via its online
click-to-order catalogs
E) Showdown, a clothing store that stocks merchandise from different international brands

3. Which of the following is true of channel members?

A) They act independent of each other.
B) They play specialized roles in the channel.
C) They are not accountable to other channel members.
D) They play generalized and interchangeable roles in the distribution process.
E) Their competence and cooperation don't affect the company's image or profits.

4. Which of the following is a disadvantage of adding new channels in a multichannel

distribution system?
A) decreasing complexity of markets
B) decreasing control over the system
C) reducing opportunities for franchising
D) lowering sales and market coverage
E) minimizing publicity needs

5. Major logistics functions are logistics information management, inventory management,

transportation, and ________.
A) advertising
B) product design
C) financial projections
D) warehousing
E) customer sales

6. Which of the following is the most effective way for a company to ship bulky, non-
perishable products if its key requirement is low price?
A) pipelines
B) air transport
C) trucks
D) water carriers
E) piggyback

7. ________ creates a seamless cross-channel buying experience that integrates in-store,

online, and mobile shopping.
A) Shopper marketing
B) Point-of-purchase marketing
C) Social media marketing
D) Virtual marketing
E) Omni-channel retailing

8. At Neiman Marcus, a first-class department store, customers shop for high-end products
and they are assisted in every phase of the shopping process. Neiman Marcus is a ________.
A) full-service retailer
B) limited-service retailer
C) self-service retailer
D) specialty store
E) superstore

9. GameStop sells only video games and systems, offering a narrow product line with a
deep assortment within that line. GameStop is a(n) ________.
A) department store
B) convenience store
C) category killer
D) specialty store
E) off-price retailer

10. Daizy's is a shop that carries only plus-size clothing. According to this information,
Daizy's differentiates itself from its competitors based on ________.
A) service mix
B) pricing
C) product assortment
D) store atmosphere
E) distribution strategy

11. Macy's department stores carry a wide range of product lines, including clothing,
jewelry, kitchenware, and home furnishings. Macy's typically charges a relatively high
markup, but also holds frequent sales and price promotions, in particular offering discounts
to customers who use a Macy's credit card. Macy's uses ________.
A) self-service retailing
B) experiential retailing
C) high-low pricing
D) everyday low pricing
E) retail convergence

12. Wholesalers must ________ to maintain their profits.

A) raise their prices to their retail customers
B) find efficient ways to deliver value to their customers
C) reduce the number of customers they work with
D) increase the number of services they offer
E) improve the relationships with the suppliers

Essay Questions
1. Compare the three distribution strategies that producers use, providing examples of
products for each type of distribution.
2. Identify and describe the different types of retailers, based on their product lines. Provide
an example of each type of retailer.