Marketing of High Technology Products and Innovations 3rd Edition by Jakki J. Mohr -Test Bank

Marketing of High Technology Products and Innovations 3rd Edition by Jakki J. Mohr -Test Bank

Chapter 9: Distribution Channels and Supply Chain Management in High-Tech Markets
Mohr, Sengupta, Slater (3/e, 2010)
Test Bank

9-1 When evaluating channel performance, all of the following may serve as performance indicators, except:
A. resellers loyalty
B. customer satisfaction with reseller
C. exclusive dealing arrangements
D. reseller’s contribution to growth
E. quantitative indicators

Answer: C Page: 320 Moderate

9-2 Adding an Internet sales channel to an existing distribution channel may result in:
A. reduction in cost efficiency
B. gray market activity
C. boost in morale as different channels come together to serve a new customer segment
D. loss of competitive advantage
E. conflict as multiple channels pursue the same customers

Answer: E Page: 331 Moderate

9-3 A franchise, such as Radio Shack, would be an example of:
A. A direct supply chain
B. An indirect supply chain
C. Mid-range between a direct and indirect supply chain
D. Multiple channel distribution
E. A vertically integrated channel

Answer: C Page: 321, 328 Easy

9-4 Each of the following is a direct channel except:
A. company sales force
B. company-owned stores
C. franchised stores
D. internet
E. all of the above

Answer: C Page: 322-326 Easy

9-5 Which of the following is a cause of tension between salespeople and marketing personnel in a high-tech company?
A. Multi-channel marketing strategies and hybrid channel design
B. Co-location
C. Different orientations and mind sets
D. Integrated sales-and-marketing relationships with common metrics for compensation
E. C and D only

Answer C p. 323 Moderate

9-6 A company is likely to be well suited for a brick-and-click distribution model if it:
A. Sells products that are simple in nature and easy to install.
B. Sells products that require high levels of consultation.
C. Has the infrastructure in place to support a direct sales model.
D. Both B and C
E. Both A and C.

Answer E Page: 325 Hard

9-7 The effects of disintermediation can include all of the following except:
A. keeping intermediaries satisfied
B. cannibalization
C. more direct relationships with customers
D. displaced sales
E. new value proposition

Answer: A Page: 326 Moderate

9-8 Which of the following are indirect channels?
A. distributors
B. brokers
C. systems integrators
D. resellers
E. all of the above

Answer: E Page 327 Easy

9-9 A value-added reseller (VAR):
A. Offers the best deal to customers
B. Purchases products from a high-tech company and adds value through its own expertise
C. Markets bundled solutions to vertical markets
D. Disintermediates direct channels
E. B and C

Answer: E Page: 327 Moderate

9-10 Companies often want to sell their products through as many distribution channels as possible, thus gaining the largest possible market share. Which of the following can lead to resellers competing only on the basis of price?
A. Interbrand Competition
B. Intrabrand Competition
C. Use of Indirect Channels only
D. Use of Direct Channels only
E. Integrating use of VARs

Answer B Page: 327 Hard

9-11 Which of the following is not descriptive of a systems integrator?
A. a person who does technology consulting and repair for households
B. specialized reseller
C. manages large, complex projects
D. procures hardware, software and services from different vendors
E. customizes implementation for specific customers

Answer: A Page: 327 Easy

9-12 What are contact efficiencies?
A. The idea that adding an intermediary reduces the number of transactions in a market
B. The idea that the Internet reduces costs of distribution
C. The notion that intermediaries offer core competencies in logistics and distribution
D. The efficiencies that arise from intrabrand competition
E. The efficiencies gained when a company disintermediates its channel

Answer: D Page: 321 Moderate

9-13 As a high technology product enters a high growth phase, channel selection typically changes from:
A. direct sales to distributors
B. distributors/VARs to traditional retailers
C. traditional retailers to mass merchant
D. distributors to mass merchant
E. mass merchant to direct sales

Answer: B Page: 328 Easy

9-14 Which of the following is NOT multi-channel marketing?
A. A mix of direct and indirect channels
B. A brick-and-click model of distribution
C. A hybrid, or dual/concurrent channel
D. A channel that minimizes inter-brand competition
E. All of the above are multi-channel marketing

Answer E p. 319, 321, 330 Moderate

9-15 Authoritative control arises from each of the following except:
A. ownership via vertical integration
B. formal, centralized decision-making as in franchising
C. majority vote in an election
D. power
E. unilateral decision making authority

Answer: C Page 329 Moderate

9-16 Which of the following is not descriptive of bilateral control:
A. hierarchical control
B. joint action
C. relational norms
D. mutual sharing of benefits and burdens
E. collaborative communication

Answer: A Page: 329 Moderate

9-17 A classic industry example of “tying” is:
A. Microsoft- selling their operating system and Internet browser together
B. Apple- patenting the round dial on the iPod
C. Amazon- collecting and controlling information on users without their consent
D. Verizon- offering rebates on phones if customers sign a 2-year contract
E. Gillette- selling razor refills for a higher cost than the original razor

Answer A Page: 329 Easy

9-18 The contingency approach to managing hybrid channels states that
A. the type of channel used is contingent upon the technological capabilities of the firm
B. the type of channel selected should be contingent upon the technological capabilities of customer segments
C. the type of channel used must be matched to the tasks needed by particular customer segments
D. companies should consider displacement of existing sales through hybrid channel development
E. choosing one channel for optimum performance will lead to success

Answer: C Page: 331-332 Easy

9-19 The objectives of a hybrid channel are:
A. Increase market coverage
B. Maintain cost efficiencies
C. Minimize conflict
D. All of the above
E. A and B only

Answer D p. 331 Easy

9-20 One useful way to segment customers for hybrid channel design is on the basis of:
A. Order size
B. Decision Process
C. Product line
D. Geographic region
E. All of the above

Answer E p. 332 Moderate

9-21 Which of the following about using compensation and communication as part of effective multi-channel marketing is FALSE?
A. Different channels must have policies that offer consistent reinforcement for the channel strategy.
B. Information exchange can help channel members understand the logic behind the channel strategy.
C. Channel members may sabotage new channel strategies if they do not ‘buy into the changes.
D. The 3 Cs model of business strategy (customers, costs, competitors) is the basis for channel design.
E. Multi-channel marketing will invite conflict, and compensation and communication can go a long ways towards solving that problem.

Answer D p. 333 Moderate

9-22 The notion of the “long tail” is most aptly applied to sales in which industry?
A. Athletic shoes
B. Movies and music
C. Flower bouquets
D. Magazine subscriptions
E. None of the Above

Answer B p. 335 Moderate

9-23 Among the reasons for the existence of gray markets are:
A. a company’s price-discount policy
B. differential currency exchange rates across countries
C. differential cost structures across retailers
D. highly selective distribution
E. all of the above

Answer: E Page: 336 Easy

9-24 The purpose of export restrictions is:
A. to lower the U.S. trade deficit
B. to protect U.S. security interests
C. to prevent civilian use of sensitive technologies
D. to promote single use of sensitive technologies
E. to promote dual use of sensitive technologies

Answer: B Page: 338 Easy

9-25 Which of the following is not a cause of the distribution challenges in BOP countries?
A. Poor and illiterate population
B. Large rural population
C. Lack of transportation infrastructure
D. Too much channel conflict
E. Need to invest in and train new channel members

Answer D Page: 338-339 Easy

9-26 Which of the following is not descriptive of an online vertical marketplace?
A. industry-specific websites
B. provide e-business solutions within industry boundaries for buyers and sellers
C. sell shrink-wrapped software
D. build links between suppliers, customers and competitors
E. aim to increase the efficiency of the supply chain.

Answer: C Page: 342 Easy

9-27 Which of the following is an example of a mis-matched supply chain strategy?
A. Risk-hedging supply chains = Apple’s supply chain
B. Efficient supply chains = Wal-Mart’s supply chain
C. Agile supply chains = Amazon’s supply chains
D. Responsive supply chains = Dell’s supply chains
E. All of the above are correctly matched

Answer A Page: 342 Hard

9-28 Which of the following would be an example of a reverse auction?
A. Direct buyer- seller bidding
B. Blind bidding on consumer’s perceived value
C. Suppliers bidding for contracts
D. Distributors bidding on territories
E. All of the above

Answer C Page: 343 Easy

9-29 Which of the following is not descriptive of outsourcing?
A. helps reduce the cost structure of a company
B. increases the vulnerability of the supply chain
C. is limited to the manufacturing process
D. invites political backlash from labor unions
E. invites political backlash from state legislatures

Answer: C Page: 344 Easy

9-30 The scope of green supply chain management includes all of the following, except:
A. The manufacturing process
B. The materials sourcing
C. The packaging
D. The life cycle of the product
E. All of the above are aspects of green supply chain management

Answer E Page: 345 Easy