Chapter 4.1: The Concept of Marketing Channel
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Questions and Answers

Marketing channels are sets of independent organizations participating in the process of making a product or service available for use or consumption.

True

A marketing channel is also known as a production channel.

False

The term 'middleman' includes facilitating agencies that perform or assist in marketing functions.

False

Producers mainly sell their goods directly to the final users without the involvement of intermediaries.

<p>False</p> Signup and view all the answers

The path along which goods move from producers to ultimate consumers is known as a channel of distribution.

<p>True</p> Signup and view all the answers

Middlemen may act in the capacity of an agent or broker, but they do not acquire title to the goods.

<p>False</p> Signup and view all the answers

The term 'intermediaries' includes banks, railways, roadways, warehouses, insurance companies, advertising agencies, etc.

<p>True</p> Signup and view all the answers

Wholesalers and retailers who buy, take title to, and resell merchandise are called brokers.

<p>False</p> Signup and view all the answers

Transportation companies, independent warehouses, banks, and advertising agencies are considered intermediaries in the distribution process.

<p>False</p> Signup and view all the answers

Producers delegate the selling job to intermediaries to gain more control over how and to whom products are sold.

<p>False</p> Signup and view all the answers

The text states that many producers have the financial resources and expertise to sell directly on their own.

<p>False</p> Signup and view all the answers

Middlemen perform the marketing function of implementing pricing policies that are acceptable to buyers and ensure effective distribution.

<p>True</p> Signup and view all the answers

Middlemen provide feedback information, marketing intelligence, and sales forecasting services to their suppliers.

<p>True</p> Signup and view all the answers

The role of middlemen in the distribution of goods does not include participating actively in the creation and establishment of a market for a new product.

<p>False</p> Signup and view all the answers

The text mentions that Ford has almost 12,000 dealer outlets worldwide.

<p>True</p> Signup and view all the answers

The William Wrigley Jr. Company finds it practical to establish small retail gum shops throughout the world.

<p>False</p> Signup and view all the answers

What type of conflict occurs when there is conflict between different levels within the same marketing channel?

<p>Vertical channel conflict</p> Signup and view all the answers

In the context of marketing channels, which term refers to the dominant and controlling members of the channel?

<p>Channel captains</p> Signup and view all the answers

What is the main cause of channel conflict in marketing channels?

<p>Lack of cooperation among channel members</p> Signup and view all the answers

What is the primary goal of channel coordination in marketing channels?

<p>Advancing the goals of the marketing channel as a whole</p> Signup and view all the answers

When can vertical, horizontal, and multichannel conflict occur in a marketing channel?

<p>When different levels within the same channel have conflicting interests</p> Signup and view all the answers

What should marketers aim to achieve in order to resolve conflict situations in marketing channels?

<p>Resolving conflicts by bringing together the goals of the marketing channel</p> Signup and view all the answers

What is one of the reasons for disputes among channel members mentioned in the text?

<p>Retailers bypassing wholesalers to reach producers</p> Signup and view all the answers

What factor influences the rate of channel conflict according to the text?

<p>Producers competing against their own brands</p> Signup and view all the answers

What is an example of horizontal channel conflict?

<p>Conflict between two or more retailers</p> Signup and view all the answers

What practice may lead to competition and horizontal conflict among middlemen?

<p>Diversifying product assortment through scrambled merchandising</p> Signup and view all the answers

What is the main source of horizontal conflict among middlemen according to the text?

<p>Scrambled merchandising</p> Signup and view all the answers

What does the text highlight as an inevitable feature of distribution channels?

<p>Increased number of intermediaries relative to market size</p> Signup and view all the answers

What does greater market size relative to the optimum scale size lead to, according to the text?

<p>Increase in the number of channel members</p> Signup and view all the answers

What is an example of horizontal conflict mentioned in the text?

<p>Conflict between two or more retailers</p> Signup and view all the answers

What is one of the factors influencing the rate of channel conflict according to the text?

<p>Producers competing against their own brands</p> Signup and view all the answers

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