Exam 3

Question 1

combinations of institutions specializing in manufacturing wholesaling retailing and many other areas who join forces to make possible the delivery of goods to industrial users or final consumbers

Answer 1

marketing channels

Question 2

four reasons we need wholesalers and retailers

Answer 2

1. cheaper to buy from retailers
2. solve discrepancy in quantity
3. solve discrepancy in quality
4. only retailers work with the consumer

Question 3

name the four functions of a wholesaler

Answer 3

1. sort product
2. categorize different products
3. Allocation- packaging
4. Assortment - provide more than one product

Question 4

name the vertical channel integration where market channel members are independent and work with each other when one large member dominates the market

Answer 4

administered market channel

Question 5

name the vertical channel integration where members work with each other formally

Answer 5

contractual

Question 6

name the vertical channel integration where 1 channel member buys another above or below it

Answer 6

corporate

Question 7

one channel member buys from another channel member

Answer 7

Horizontal channel integration

Question 8

name the 3 different types of intensity of market coverage

Answer 8

1. all stores - intensive convenience
2. some stores - selective shopping
3. one store in a large area - exclusive specialty

Question 9

this is important if channel members want to achieve high performance

Answer 9

channel coorporation

Question 10

tension between 2 channels is good if it improves performance but bad when it becomes personal

Answer 10

Channel Conflict

Question 11

leader influences the performance of channel members

Answer 11

channel leadership

Question 12

ability of A to get B to do something that they otherwise wouldn’t do

Answer 12

power

Question 13

source of power where A rewards B if B listens to A

Answer 13

reward power

Question 14

source of power where A punishes B if B doesn’t listen to A

Answer 14

coercive

Question 15

source of power where B has superior knowledge to A

Answer 15

expert

Question 16

source of power where B identifies themselves with A

Answer 16

reverent

Question 17

source of power where A by position has the right to prescribe the behavior of B and B is obliged to comply

Answer 17

legitimate

Question 18

selling products directly to industrial reseller and institutional users not to ultimate consumers if if includes all marketing transactions in which purchases are intended for resell or used in making other products

Answer 18

wholesaling

Question 19

Services that wholesalers provide to retailers

Answer 19

1. help select inventory
2. understand market conditions
3. negotiate final purchases
4. provide services much more to producers
5. Provide quick and frequent delivery
6. Provide good assortment of goods

Question 20

Services that wholesalers provide to producers

Answer 20

1. Accumulate and allocate products
2. Provide sales force
3. Pay transportation costs
4. provide information
5. spread costs over many products