DM CHAPTER 2
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Questions and Answers

What type of marketing channel system involves the ownership of all levels of production or distribution by a single company?

  • Corporate vertical marketing system (correct)
  • Contractual VMS
  • Horizontal marketing system
  • Multi-channel marketing system

Which type of vertical marketing system involves one entity that is of a certain size and influences control over other channel partners?

  • Franchise organization
  • Horizontal marketing system
  • Corporate VMS
  • Administered vertical marketing system (correct)

What is the primary characteristic of a horizontal marketing system?

  • One entity dictating terms to retailers based on market share
  • Entities acting independently to run a profitable business
  • Ownership of all levels of production by a single company
  • Entities acting together as one team to provide service to end users (correct)

What type of arrangement exists between channel members in Contractual VMS?

<p>Convenient arrangements to obtain economies of scale (D)</p> Signup and view all the answers

In which type of vertical marketing system do entities including the company act independently to run profitable businesses?

<p>Corporate vertical marketing system (D)</p> Signup and view all the answers

Which marketing channel system involves entities acting as one team to provide service to end users?

<p>Horizontal marketing system (C)</p> Signup and view all the answers

Which type of marketing system involves companies working together to provide benefits, even if they are unrelated?

<p>Horizontal marketing systems (A)</p> Signup and view all the answers

What do companies adopting Multi-Channel marketing systems use to reach different customer segments?

<p>Two or more marketing channels (C)</p> Signup and view all the answers

What type of system allows one entity to dictate terms like stock levels and shelf space allocation to retailers?

<p>Administered vertical marketing system (B)</p> Signup and view all the answers

What is an example of a Franchise organization mentioned in the text?

<p>Cafe-Coffee Day (A)</p> Signup and view all the answers

In which type of marketing system do supermarkets have ATMs of leading banks in their premises?

<p>Horizontal marketing systems (D)</p> Signup and view all the answers

What are businesses involved in when they get together to obtain economies of scale in a Contractual VMS?

<p>Obtaining economies of scale (C)</p> Signup and view all the answers

Which flow in marketing channels involves the movement of the physical product from the manufacturer to the ultimate consumer?

<p>Product flow (C)</p> Signup and view all the answers

In marketing channels, which flow identifies the individuals who participate in the flow of information either up or down the channel?

<p>Information flow (C)</p> Signup and view all the answers

Which flow in marketing channels deals with the movement of title through the channel?

<p>Ownership flow (B)</p> Signup and view all the answers

Which type of marketing channel system depends on a variety of channel partners based on business needs and customer service levels?

<p>Administered vertical marketing system (C)</p> Signup and view all the answers

In which marketing channel system do companies use a network of interdependent companies to help them sell more effectively?

<p>Horizontal marketing systems (B)</p> Signup and view all the answers

Which marketing channel system involves channel members being bound by legal agreements spelling out their rights and obligations?

<p>Contractual VMS (C)</p> Signup and view all the answers

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