E-Commerce and Channel Strategy
Exam Materials
Course Introduction
This course explores the strategic frameworks and practical approaches businesses use to leverage electronic commerce and optimize multi-channel distribution. Students will examine the evolution and current trends of e-commerce, learn how companies design effective online and offline channel strategies, and evaluate the integration of digital marketplaces, social platforms, and traditional retail. Topics include consumer behavior in digital channels, channel conflict and coordination, logistics, digital marketing, analytics, and the impact of emerging technologies on channel innovation. Through case studies and projects, students will develop the skills needed to assess and implement channel strategies that drive competitive advantage in a rapidly changing digital landscape.
Recommended Textbook
Marketing Channels 8th Edition by Bert Rosenbloom
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Page 2
Chapter 1: Marketing Channel Concepts
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Sample Questions
Q1) According to the text, the technology that is likely to have the greatest impact on marketing channels is:
A)Television.
B)Automated warehousing.
C)The Internet.
D)Hand-held computers.
E)Cellular phones.
Answer: C
Q2) The Internet and World Wide Web has connected millions of people and institutions and
A)Has increased the need for intermediaries.
B)Has eliminated intermediaries.
C)Is the only determinant of the role of intermediaries in the marketing channels.
D)Is an important determinant in the use of intermediaries in marketing channels.
E)Does not have any effect on the use of intermediaries in the marketing channels.
Answer: D
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Chapter 2: The Channel Participants
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Sample Questions
Q1) The Census of Retail Trade classified retailers into _____ major groups by kind of business.
A)12
B)16
C)18
D)10
E)8
Answer: A
Q2) "Threetailing" is a term used to describe:
A)Retailers located in 3 or more countries.
B)The use of 3 types of promotion techniques.
C)The integration of technology for in-store, print, and television advertising.
D)Three main customer target markets.
E)The convergence of in-store, catalog, and online channels.
Answer: E
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4
Chapter 3: The Environment of Marketing Channels
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Sample Questions
Q1) When the value of the U.S. dollar is high:
A)The price of U.S. products decreases relative to foreign products.
B)The price of U.S. products increases relative to foreign products.
C)It takes fewer foreign dollars to buy U.S. products.
D)U.S. products become more competitive in foreign markets.
E)It takes more U.S. dollars to buy foreign products.
Answer: B
Q2) Interbrand competition versus intrabrand competition has been evaluated by the courts in considering:
A)Fair trade laws.
B)Dual distribution.
C)Tying agreements.
D)Vertical integration.
E)Resale restrictions.
Answer: E
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Chapter 4: Behavioral Processes in Marketing Channels
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Sample Questions
Q1) Typically, the larger the producer or manufacturer, the higher the __________ power bases available to it.
A)expert and reward
B)expert and legitimate
C)reward and coercive
D)legitimate and coercive
E)There is no pattern that can be generalized.
Q2) A recent study of marketing channels in China found:
A)That Chinese beer distributors had similar perceptions of power as their western counterparts.
B)Chinese distributors divide power into legitimate and illegitimate categories.
C)Chinese distributors were more satisfied when suppliers used coercive power.
D)Chinese distributors reacted positively to both reward and referent power when used by western suppliers.
E)Expert power was not effective among Chinese distributors.
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6
Chapter 5: Strategy in Marketing Channels
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Sample Questions
Q1) Payment by the manufacturer for obtaining space on retailers' shelves is commonly referred to as a:
A)Trade discount.
B)Promotional allowance.
C)Display and selling aid.
D)Price guarantee.
E)Slotting allowance.
Q2) Volvo GM Heavy Truck Corporation cited in the text illustrates:
A)That aggressive pricing is key.
B)Customer service is key.
C)Heavy inventory carried by dealers is a must for good service.
D)That all too often customers are too spread out.
E)Keeping high levels of inventories is crucial to good customer service.
Q3) If a manufacturer's products are "middle of the road" in quality and aimed at the mass market, its distribution strategy should stress:
A)Exclusive distribution.
B)Broad coverage of the market.
C)Very selective distribution.
D)Intensive or exclusive distribution.
E)Regional distribution.
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Chapter 6: Designing Marketing Channels
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Sample Questions
Q1) According to Aspinwall, short channels are expected for products with a:
A)High replacement rate.
B)High gross margin.
C)Low time of consumption.
D)Low adjustment needs.
E)Low searching time.
Q2) Assuming total cost for a direct channel of $100,000 and an average gross margin on sales of 25%, the sales volume needed to cover these costs would be:
A)$2,500,000.
B)$25,000.
C)$75,000.
D)$400,000.
E)$250,000.
Q3) The distribution costing approach to choosing channel structure:
A)Requires almost no managerial judgment.
B)Requires specific factors to be identified.
C)Requires that management make some cost and revenue estimates.
D)Will, if done well, generally yield an optimal channel choice.
E)Assumes a three-level distribution structure.
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Chapter 7: Selecting the Channel Members
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Sample Questions
Q1) Securing the prospective channel members as actual channel members is usually the:
A)First step in the selection process.
B)Second step in the selection process.
C)Third step in the selection process.
D)Fourth step in the selection process.
E)Cannot be determined because it varies so much from case to case.
Q2) A significant problem with using the sales force to find prospective channel members is that:
A)In many cases salespeople do not know their territories well.
B)Salespeople are not in a good position to recognize potential new channel members.
C)Salespeople may not devote much effort to finding new channel members because they may not be adequately rewarded for doing so.
D)It is very expensive to use salespeople for this purpose.
E)Salespeople are not trained to evaluate channel members.
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9
Chapter 8: Target Markets and Channel Design Strategy
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Sample Questions
Q1) Consumers willing to travel somewhat further to gain access to a store with special services are exhibiting:
A)Price sensitivity.
B)Trade-off behavior.
C)Niche market response.
D)Convenience minimization behavior.
E)Service elasticity.
Q2) "Where customers buy" refers to:
A)The type of retail outlet.
B)The aisle within the retail store.
C)The distance between the customer's home and the place of purchase.
D)The geographic region.
E)The time it takes for the customer to get to the store.
Q3) Which of the following purchase roles is the most difficult to analyze?
A)Buyer
B)User
C)Decider
D)Gatekeepers
E)User and decider are about equal.
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Page 10
Chapter 9: Motivating the Channel Members
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Sample Questions
Q1) Which of the following factors tend to limit the channel manager's attempt to gain total control of the channel?
A)The tight alignment of firms
B)Tthe lack of central direction
C)A reward and penalty system that is not precise
D)Highly coordinated planning of the entire system
E)Few contractual agreements
Q2) The term securing the cooperation of channel members suggests that:
A)Once the channel has been well designed, channel member cooperation will follow as a matter of course.
B)The selection of good channel members in the first place assures a high degree of cooperation.
C)Administrative actions by the channel manager are necessary to develop channel member cooperation.
D)The channel manager must avoid conflict at all cost.
E)The channel manager must attempt to gain total control of the channel.
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11
Chapter 10: Product Issues in Channel Management
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Sample Questions
Q1) Which of the following was a major problem for Jaguar dealers when Ford introduced the X-Type Jaguar?
A)Consumers did not like the color options available to them.
B)Not enough of the models were produced so dealers had angry customers.
C)The new technology used in the cars did not perform well.
D)The leather seat coverings did not wear well.
E)Ford was careless about quality, which resulted in higher warranty costs.
Q2) Large supermarkets have selected small food manufacturers to provide natural food items for their stores because:
A)Customers are demanding products made by small manufacturers.
B)Of the small manufacturer's credibility.
C)Large supermarkets can exert greater control over small manufacturers.
D)Costs to the supermarkets are lower.
E)Small food manufacturers are offering large incentives.
Q3) Which of the following is not a stage of the product life cycle?
A)Decline
B)Maturity
C)Advanced
D)Growth
E)Introduction
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Chapter 11: Pricing Issues in Channel Management
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Sample Questions
Q1) Which of the following is most likely to have the effect of moving price points downward for a product category?
A)Inflation
B)Monopoly conditions
C)Shortages
D)Lack of new products
E)Advancing technology
Q2) Which of the following is not a factor that should normally be included in developing pricing strategies?
A)Internal cost considerations
B)The target markets
C)Competition
D)Needs of channel members
E)Consumer income
Q3) The __________ often causes a problem with price promotions.
A)delivery of enough inventory
B)indifference of consumers
C)lack of a good promotional campaign
D)differing price elasticities of consumers and retailers
E)seasonality of a product
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Chapter 12: Promotion Through the Marketing Channel
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Sample Questions
Q1) Which of the following is a common abuse of cooperative advertising money by retailers?
A)Poor promotional planning.
B)Retailers not agreeing to branding strategy of manufacturer.
C)Retailers buying newspaper space at rates lower than what they bill manufacturers.
D)Not setting up point of purchase displays properly.
E)Resisting manufacturer control over the advertising campaign.
Q2) The most typical strategy used for promotional allowances is to offer channel members:
A)A print ad allowance.
B)A percentage of purchases on particular products.
C)A credit.
D)A discount on future purchases.
E)An increased trade discount.
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Chapter 13: Logistics and Channel Management
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Sample Questions
Q1) Research shows that conducting surveys to uncover channel members' satisfaction with the firm's logistics system can be opening a Pandora's box because:
A)Once channel members begin reproaching the manufacturer, it is very difficult to get them to stop.
B)Channel member satisfaction decreases if the manufacturer takes no action to remedy reported deficiencies.
C)Logistics systems are too complex to be delved into with surveys.
D)Channels members do not answer and return surveys.
E)The answers reported on surveys do not reflect actual satisfaction levels.
Q2) Which of the following is a false statement about how Internet shopping will affect warehousing?
A)There will be a decreased need for warehouses.
B)Many Internet retailers are storefronts with no need for warehouses.
C)It is easy to have excess capacity if online sales do not grow according to projections.
D)Internet providers need numerous, well-located, and efficient warehouses.
E)Third parties will provide warehousing needs for many Internet companies.
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Chapter 14: Evaluating Channel Member Performance
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Sample Questions
Q1) A channel manager evaluates a wholesaler's sales force to assess the wholesaler's:
A)Personnel policies.
B)Selling capacity.
C)Veracity.
D)Sales performance.
E)Incentive policies.
Q2) In order to spot negative channel member attitudes before they affect performance, attitudes should be:
A)Evaluated when poor channel member sales are found.
B)Evaluated independently of sales data.
C)Given more weight than basic sales data.
D)Made the most important criterion of channel member performance.
E)Always evaluated whenever sales data are evaluated.
Q3) Generally, the less intense is distribution at the various channel levels:
A)The more thorough are channel member evaluations.
B)The less thorough are channel member evaluations.
C)The more difficult are channel member evaluations.
D)The more routine are channel member evaluations.
E)The less informative are channel member evaluations.
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Page 16
Chapter 15: Electronic Marketing Channels
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Sample Questions
Q1) Which of the following was not cited in the text as an advantage of electronic marketing channels?
A)Global scope and reach
B)Higher customer retention rate
C)Convenience/rapid transaction processing
D)Lower sales and distribution costs
E)Information processing efficiency and flexibility
Q2) The study of online shoppers quoted in the textbook reported that with regard to income:
A)Most online shoppers were low income consumers looking to save money.
B)Earned their income mainly from investments and so have the time to shop on the Internet.
C)The highest percentage of shoppers earn between $50,000 and $99,999.
D)The majority are wealthy with annual incomes in excess of $250,000.
E)The majority have incomes of less than $35,000.
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Chapter 16: Franchise Marketing Channels
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Sample Questions
Q1) The difference between single-unit and multi-unit franchises is:
A)Only franchisees operating multi-unit franchisees can own more than a single franchise..
B)In multi-unit franchisees, franchisees receive permission from the franchisor to own and operate more than one unit at the outset of their relationship, whereas single-unit franchises initially only receive permission to operate a single unit.
C)Multi-unit franchises require the franchisor to provide greater operational assistance to their franchisees than do they do for single-unit franchises.
D)There is no difference, they are different labels for the same form of franchise channel.
E)None of the above.
Q2) According to the text, the most important reason why franchisors adopt franchise channels is:
A)Capital advantages
B)Obtain needed training from franchisees
C)Potential to reduce distribution costs
D)Reduce uncertainty
E)Possible high level of managerial motivation fostered by franchising
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Chapter 17: Marketing Channels for Services
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Sample Questions
Q1) According to the textbook, the retrenchment of Hyatt Legal Services was caused by:
A)Fraud and corruption.
B)Too many branches.
C)A complex, confusing and cumbersome franchise contract.
D)A large scale organization attempting to handle non-routine legal services.
E)None of the above.
Q2) All of the following are services except:
A)This class.
B)A checking account.
C)A Broadway musical.
D)An oil change for a car.
E)A book.
Q3) The involvement of customers in the production of services is usually:
A)Totally absent.
B)The same for product production.
C)Much less than their involvement in product production.
D)Greater than their involvement in product production.
E)Requires input from customers at the development stage.
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19
Chapter 18: International Channel Perspectives
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Sample Questions
Q1) U.S. firms competing in foreign markets are __________ the anti-collusion provisions of the U.S. trade laws.
A)rarely prosecuted for violating B)exempted from
C)severely restricted by
D)somewhat restricted by
E)U.S. trade law does not apply here.
Q2) U.S. manufacturers are looking to international markets because:
A)Of slower growth in domestic markets.
B)Foreign markets have less political risk.
C)Of government regulations.
D)New customers to buy products.
E)No competition in foreign markets.
Q3) Which of the following is considered a foreign production approach to international marketing?
A)Trading company
B)Joint venture
C)Overseas marketing subsidiary
D)Export management company
E)Using trading intermediaries
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