Ch. 14 - Marketing Channels

Question 1

Marketing Channel (Channel of Distribution)

Answer 1

A set of independent organizations that eases the transfer of ownership as products move from producer to business user or consumer

Question 2

Channel Members

Answer 2

All parties in the marketing channel who negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer

Question 3

Form Utility

Answer 3

The elements of the composition and appearance of a product that make it desirable

Question 4

Time Utility

Answer 4

The increase in customer satisfaction gained by making a good or service available at the appropriate time

Question 5

Place Utility

Answer 5

The usefulness of a good or service as a function of the location at which it is made available

Question 6

Exchange Utility

Answer 6

The increased value of a product that is created as its ownership is transferred

Question 7

Retailer

Answer 7

A channel intermediary that sells mainly to consumers

Question 8

Merchant Wholesaler

Answer 8

An institution that buys goods from manufacturers and resells them to business, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them

Question 9

Agents and brokers

Answer 9

Wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers

Question 10

Direct Channel

Answer 10

A distribution channel in which producers sell directly to consumers

Question 11

Dual Distribution (Multiple Distribution)

Answer 11

The two or more channels to distribute the same product to target markets

Question 12

Nontraditional Channels

Answer 12

Nonphysical (often electric) channels that facilitate the unique market access of products and services

Question 13

Strategic Channel Alliance

Answer 13

A cooperative agreement between business firms to use the other’s already established distribution channel

Question 14

Reverse Channel

Answer 14

A channel that enables customers to return products or components for reuse or remanufacture

Question 15

Drop and Shop

Answer 15

A system that allows customers to recycle used electronics at the entrance of a retailer

Question 16

Intensive Distribution

Answer 16

A form of distribution aimed at having a product available in every outlet where target customers might want to buy it

Question 17

Selective Distribution

Answer 17

A form of distribution achieved by screening dealers to eliminate all but a few in any single area

Question 18

Exclusive Distribution

Answer 18

A form of distribution that establishes one or a few dealers within a given area

Question 19

Arm’s-Length Relationship

Answer 19

A relationship between companies that is loose, characterized by low relational investments and trust, and usually taking the form of a series of discrete transactions with no or low expectation of future interaction or service

Question 20

Cooperative Relationship

Answer 20

A relationship between companies that takes the form of informal partnership with moderate levels of trust and information sharing as needed to further each company’s goals

Question 21

Integrated Relationship

Answer 21

A relationship between companies that is tightly connected, with linked processes across and between firm boundaries and high levels of trust and interfirm commitment

Question 22

Co-opetition

Answer 22

A relationship that mixes elements of cooperation and competition between two partners

Question 23

Bilateral Monopoly

Answer 23

A channel structure whereby a single manufacturer supplies a single retailer, offering a single supply and demand point throughout the chain

Question 24

Retailer Monopoly

Answer 24

A channel structure whereby a single retailer uses multiple suppliers

Question 25

Manufacturer Monopoly

Answer 25

A channel structure whereby a single supplier provides products to multiple retailers

Question 26

Channel Power

Answer 26

The capacity of a particular marketing channel member to control or influence the behavior of other channel members

Question 27

Channel Control

Answer 27

A situation that occurs when one marketing channel member intentionally affects another member’s behavior

Question 28

Channel Captain

Answer 28

A member of a marketing channel that exercises authority and power over the activities of other channel members

Question 29

Channel Conflict

Answer 29

A clash of goals and methods between distribution channel members

Question 30

Horizontal Conflict

Answer 30

A channel conflict that occurs among channel members on the same level

Question 31

Vertical Conflict

Answer 31

A channel conflict that occurs between different level in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer

Question 32

Opportunism

Answer 32

Secretive behavior that improves a firm’s standing at the expense of a partner firm

Question 33

Active Opportunism

Answer 33

When a firm violates agreements and restrictions or forces another firm to renegotiate existing agreements when new circumstances arise

Question 34

Passive Opportunism

Answer 34

When a firm refuses to meet specific obligations or fails to change when new situations arise

Question 35

M-Commerce

Answer 35

The ability to conduct commerce using a mobile device for the purpose of buying or selling goods or services