Question 1 If 30 million transactions are made per year at $15 per transaction, what is the total transaction cost? $450 million $200 million $2 billion $4.5 billion $900 million . 2 points Question 2 Which of the following is true of marketing channels? In a direct marketing channel, intermediaries take a portion of the purchase price for their services. The net price derived from the use of indirect marketing channels is much higher than from direct channels. Direct channels are able to capture most, if not all, of the end-user price. The cost of direct marketing channels is generally lower for a manufacturer than that of other channels. Indirect channels incur the highest out-of-pocket marketing and sales expenses for manufacturers. . 2 points Question 3 Which type of marketing channel allows a manufacturer to have the highest degree of control over service quality? indirect direct intermediate mixed value-added . 2 points Question 4 Once the market share has exceeded the outlet share, the rate of market share growth ________ with further increase in outlet share. becomes zero becomes infinity remains constant increases decreases . 2 points Question 5 If there are 20 manufacturers and 500 retailers, and 15 transactions are made per year at a cost of $200 per transaction, calculate the total number of transactions. 150,000 transactions per year 200,000 transactions per year 250,000 transactions per year 300,000 transactions per year 350,000 transactions per year . 2 points Question 6 Which of the following is true of direct marketing channels? Direct marketing channels offer the greatest opportunity for sales communication and customer interaction. Direct marketing channels yield very low margins for the manufacturer. Direct marketing channels do not allow the manufacturer control over the sales messages and service quality. Direct marketing channels are most suited for inexpensive products that are bought in low quantities. Direct marketing channels result in the lowest out-of-pocket marketing expenses for the manufacturer. . 2 points Question 7 Which of the following is true of marketing using a direct marketing channel system? Direct mail and catalog sales are more labor-intensive than telemarketing, but are more efficient at customer interaction. Using direct salespeople is generally cheaper than using brokers, sales agents, or manufacturer's representatives. Telemarketing provides a better opportunity for a sales communication but is more labor intensive and usually more expensive than direct marketing. Compared to indirect marketing channel systems, direct marketing channel systems maximize the number of customers that a business can profitably reach. Digital marketing channels have a greater customer reach than other channels, but are also more expensive. . 2 points Question 8 Calculate the number of transactions made per year if a total of 20 million transactions are made in a year by 40 manufacturers and 4,000 retailers. 250 125 75 50 175 . 2 points Question 9 Calculate the total number of manufacturers, if 15 transactions are made per year with 10,000 retailers. The total number of transactions is 3 million transactions per year. 25 10 20 35 50 . 2 points Question 10 Which of the following is true of improving cost efficiency of the marketing process? If a business does not make products available at customers' preferred points of purchase, it lowers the cost of the transaction. For undifferentiated products, customers' transaction costs are high even when availability is unrestricted. The more undifferentiated a product is, the greater its perceived value. Customer value can be increased by lowering the cost of reaching customers. The general assumption is that the more intermediaries a channel system has, the lower the total cost of purchase. . 2 points Question 11 Mixed channel systems are unsuitable for marketing specialized and technological products. True False . 1 points Question 12 Indirect channels are able to achieve the lowest out-of-pocket marketing and sales expenses. True False .
Question 13 Marketing channel performance is based on customer reach, operating efficiency, and service quality. True False . 1 points Question 14 VARs and OEMs operate in the consumer market but not in the business-to-business market. True False . 1 points Question 15 A channel system should enhance customer value by increasing customer benefits, lowering customer cost of purchase, or both. True False
