SOLVED

11) All of the following are reasons to outsource channel functions to a third party EXCEPT the third party’s ________. A) motivation B) specialization C) market coverage D) economies of scale E) dedicated capacities 12) Which of the following statements about outsourcing is most likely true? A) Third-party distributors are typically motivated by monetary rewards and market discipline. B) Both wholesalers and manufacturers specialize in cost-effective distribution activities. C) Distribution usually involves high entry barriers, so it attracts only the best firms. D) Third-party distributors are limited to selling one brand and product line. E) Economies of scale are desired by distributors but rarely attained. 13) Alvin Electronics sells televisions, surround sound systems, and stereo components made by firms such as Sony, Bose, and Samsung. By selling a broad range of brands in the home entertainment product category, Alvin Electronics is most likely able to achieve ________. A) idiosyncratic knowledge B) zero-based channels C) economies of scale D) vertical integration E) site specificity 14) Todd, an independent sales agent in the medical device industry, sells products made by six different manufacturers. Previously, Todd worked as a salesperson for only one medical device manufacturer. Since becoming a manufacturers’ representative for multiple firms, Todd’s sales have increased dramatically. What is the LEAST likely reason for Todd’s current success? A) Todd relies on an efficiency template to monitor prices. B) Todd offers a wide variety of medical devices to end-users. C) Todd’s portfolio of medical products supports one-stop shopping. D) Todd’s deep customer knowledge leads to repeat purchases and referrals. E) Todd sells only the best medical devices produced by each manufacturer. 15) A firm should most likely outsource channel functions when the ________. A) function requires company-specific capabilities B) firm has resources that cannot be used for other purposes C) firm cannot afford the set-up costs of creating an internal operation D) firm has resources that are demanded in a volatile and prosperous market E) firm’s brand equity relies on customer experiences with downstream service providers 16) When a firm has highly valuable company-specific capabilities, vertical integration will LEAST likely result in ________. A) improving revenues B) lowering overhead C) reducing opportunism D) minimizing direct costs E) increasing net effectiveness 17) How does a firm with company-specific assets most likely benefit from vertical integration? A) confirming that external distributors are well trained B) ensuring that employees are highly capable and skilled C) providing customized solutions to high-value end-users D) establishing credibility by showing dedication to the market E) quantifying brand equity by monitoring all upstream activities 18) All of the following are the major forms of company-specific distribution capabilities EXCEPT ________. A) site specificity B) dedicated capacity C) idiosyncratic knowledge D) customized physical facilities E) upstream brand strategy and equity 19) Which term refers to a firm’s overall knowledge base that cannot be readily redeployed to another principal? A) general-purpose assets B) dedicated relationships C) proprietary skill sets D) idiosyncratic assets E) brand equity 20) A(n) ________ can most likely be redeployed to benefit another principal without the manufacturer losing productive value. A) zero salvage know-how B) proprietary knowledge C) general-purpose asset D) idiosyncratic asset E