Reference no: EM133402353

Questions

1. Disney Stores are exclusive distributors of much of the company's popular character merchandise. To maximize its control of retail operations, the Disney Corporation owns all of these outlets. This channel structure is called a(n) _________.

a. indirect sales force.

b. wholesaler-independent retailer channel.stores

c. captive distribution network.

d. multi-sided platform.

2. What are the benefits for Disney in having their own physical stores?

a. Better control of prices and customer shopping experience.

b. Margins are lower since they are shared with another company.

c. Channel partners can sell similar products to Disney's customers.

d. Disney cannot have retail outlets in every city.

3. If you sell your products to Amazon and they take physical possession of the product, warehouse it and ship it to the customer), then Amazon is acting as a(n):

a. broker.

b. direct sales force

c. agent.

d. captive distributor.

e. independent distributor.

4. If a company has a lot of resources and needs to control the various functions of the channel (carrying of inventory, after-sale service, product modification, etc.), which is the best channel option?

a. broker.

b. direct sales force.

c. agent.

d. independent distributor.

5. In Exhibit 1 (page 9 of Channel Management), the left-hand side shows the manufacturer transferring business costs such as inventory holding, order handling, selling and credit costs to a distributor. What would happen to those costs if the manufacturer eliminated its distributors and sold directly to customers?

a. These costs would be eliminated.

b. These costs would all be transferred to customers.

c. At least some of these costs would have to be paid for by the manufacturer.

No answer text provided.

6. Pedal Spark is considering selling a new, less expensive model of ebike through Amazon.

One of the upsides of this strategy is increased exposure to customers.

True

False

7. Pedal Spark is considering selling a new, less expensive model of ebike through Amazon.

This strategy provides Pedal Spark with more control over the entire sales process.

True

False

8. Pedal Spark is considering selling a new, less expensive model of ebike through Amazon.

This strategy will give Pedal Spark more control over information about its business including the identification of potential customers, market size, etc.

True

False

9. Pedal Spark is considering selling a new, less expensive model of ebike through Amazon.

Selling through Amazon will help Pedal Spark truly stand out in the crowded field of ebike makers and sellers.

True

False

10. Pedal Spark is considering selling a new, less expensive model of ebike through Amazon.

A potential downside of this strategy is price pressure from competing ebike sold on Amazon.

True

False