Chapter 10 Channels of Distribution

A  True

B  False

A  specialty stores

B  mass merchandisers

C  convenience stores

D  branded store chains

A  True

B  False

A  Forward integration deals with the internal or micro-environmental factors of a firm, while backward integration deals with the external or macro-environmental factors of a firm.

B  A manufacturer takes up the product’s distribution responsibilities in forward integration, while a manufacturer controls raw material inputs in backward integration.

C  Forward integration deals with tangible goods and perishable services, while backward integration deals with perishable goods and intangible services.

D  The number of intermediaries in a forward integration process is greater than the number of intermediaries in a backward integration process.

A  a manufacturer and its intermediaries expect to earn a profit from the same transaction.

B  a firm’s top management and suppliers fail to agree on a raw material’s price revision.

C  a firm’s top management and middle management fail to agree on a product’s feature.

D  a manufacturer, based on a monthly sales target, rewards its intermediaries.

A  False

B  True

A  considers channel members’ production costs and governance costs, both of which are ideally minimized.

B  compares a manufacturer’s processes with those of its competitors’ and ranks them accordingly.

C  considers the effect of a policy, program, project, activity, or event on the economy of a given are

D  compares the inherent risks of a situation to its related benefits and helps arrive at a decision.

A  True

B  False

A  A manufacturer using push strategies concentrates on B2B customers, while a manufacturer using pull strategies concentrates on B2C customers.

B  A manufacturer using push strategies concentrates on channel partners, while a manufacturer using pull strategies concentrates on customers.

C  A manufacturer using push strategies concentrates on intangible services, while a manufacturer using pull strategies concentrates on tangible products.

D  A manufacturer using push strategies relies on word-of-mouth referrals, while a manufacturer using pull strategies relies on valid forecasts.

A  Liquid nitrogen

B  A computer server

C  A lathe machine

D  A bar of soap

A  True

B  False

A  Number of component suppliers for a stock product

B  Number of intermediaries required to reach a customer

C  Number of intangible services in a purchase transaction

D  Number of tangible products in a purchase transaction

A  False

B  True

A  A retailer of the firm

B  A firm’s top management

C  A firm’s middle management

D  A firm’s product designer

A  Segmentation

B  Branding

C  Logistics

D  Targeting