SOLVED

1) A manufacturer that performs all functions in a channel is most likely engaged in ________ A) outsourcing B) relationalism C) target marketing D) vertical integration E) classical market contracting 2) Which of the following best describes classical market contracting? A) distributing benefits to channel members B) delegating channel functions to third parties C) taking responsibility for all channel functions D) sharing channel function risks with third parties E) merging with a third party to meet channel demands 3) A marketing channel system in which the channels have some properties of both owned and independent channels is most likely engaged in ________. A) offshoring B) vertical integration C) horizontal integration D) quasi-vertical integration E) classical market contracting 4) Which of the following would most likely lead to relational governance in a channel system? A) maintaining strong links with channel members B) promoting channel member services and products C) basing most channel functions on the equity principle D) outsourcing costly, time-consuming channel functions E) creating a significant distance between channel members 5) ElectroInc, an electronics manufacturer, is considering the idea forward vertical integration. ElectroInc employees would make sales and fulfill orders in addition to manufacturing products. What is the primary risk that ElectroInc faces with vertical integration? A) increasing performance ambiguity B) reducing its return on investment C) engaging in product speculation efforts D) performing redundant channel functions E) establishing environmental and managerial bounds 6) What is the LEAST likely risk associated with forward vertical integration? A) reduced ability to meet service output demands B) fewer employees focused on core activities C) limited control over value-chain operations D) insufficient managerial resources E) lower profits and market share 7) According to the text, the best reason for vertical integration is ________. A) monitoring reverse logistics B) owning a larger enterprise C) obtaining new resources D) sharing channel control E) improving profit margins 8) According to the text, Manoukian experienced poor results with vertical integration because the firm failed to________. A) recognize the service outputs demanded by most end-users B) realize the expertise power of independent retailers C) apply the equity principle to all channel members D) take control of distribution decisions E) offer enough product variations 9) Gordon Industries, a large manufacturer, pays outside firms to perform certain channel functions. What is the most common way for Gordon Industries to express the price of performing channel functions? A) expenses B) royalties C) lump sum payments D) functional discounts E) future considerations 10) Return on investment is best defined as the ________. A) percentage of equity in the firm B) ratio of expenses to direct costs C) revenues that accrue under integration D) ratio of net effectiveness to overhead E