Answer Scheme

ANSWER SCHEME QUIZ 2 MKT 243

PART A

1. A marketing channel is a business structure composed of interdependent organizations that reach from the point of product origin to the consumer. Its purpose is to move products to their final consumption destination.

ANS: T REF: p. 394 OBJ: 1 TYPE: Def

2. Consider a scenario in which there are four manufacturers, no intermediaries, and three consumers. Twelve transactions would be required for each consumer to receive products from each manufacturer. The introduction of one intermediary reduces the required number of transactions to four and demonstrates the idea of contact efficiency,

ANS: F REF: p. 395-396 OBJ: 1 TYPE: App

Introducing one intermediary reduces the required number of transactions to seven.

3. The three basic functions a channel intermediary provides are transactional (including physical distribution and sorting), logistical (including research and financing), and facilitating (including contacting, promoting, negotiating, and risk taking).

ANS: F REF: p. 398 OBJ: 2 TYPE: Def

Although the three functions are correct, their sub-descriptions are not. Transactional functions include contacting and promoting, negotiating, and risk taking. Logistical functions include physical distribution and sorting. Facilitating functions include research and financing.

4. Shopping goods are usually distributed selectively. Consumers are willing to look around for them but may not be willing to search or travel extensively to acquire the product.

ANS: T REF: p. 409 OBJ: 5 TYPE: Comp

5. Horizontal conflict occurs among channel members on the same level, such as two or more different wholesalers or two or more different retailers that handle the same manufacturer's brands.

ANS: T REF: p. 411 OBJ: 6 TYPE: Def

6. Unlike marketers of physical products, marketers of services do not have to address the question of logistics since services do not require a distribution strategy.

ANS: F REF: p....