Question 1

A contractual vertical marketing system is an arrangement whereby

Accepted Answer

A)   privately owned distributors and retailers integrate their efforts, on a contractual basis, to obtain greater functional economies and marketing impact than they could achieve alone.
B)   independent production and distribution firms integrate their efforts, on a contractual basis, to obtain greater functional economies and marketing impact than they could achieve alone.
C)   a manufacturer offers a limited number of franchise licenses to restrict the number of franchisees within a given geographical region.
D)   a firm reaches different buyers by employing two or more different types of channels for the same basic product.
E)   a firm formally designates by contract one channel member-whether producer, wholesaler, or retailer-to coordinate, direct, and support all other channel members.F) A) and B)
G) D) and E)

Question 2

A commonly used indirect channel moves product from producer to retailer to consumer. Companies like Target and The Home Depot buy directly from manufacturers rather than wholesalers. This channel is used when

Accepted Answer

A)   the retail outlets are regionally located.
B)   the cost of maintaining inventory is low.
C)   there is little if any seasonal demand.
D)   the risk lies solely with the manufacturer.
E)   the retailer is large and can buy in large quantities from a producer.F) A) and E)
G) A) and C)

Question 3

Purchasing products for resale or acting as an agent for supply of a product would be an example of ________ function.

Accepted Answer

A)   a logistical
B)   a facilitating
C)   a risk-taking
D)   a transactional
E)   an assortingF) B) and C)
G) C) and D)

Question 4

Vertical conflict is conflict that occurs between

Accepted Answer

A)   two members in the same level of a marketing channel.
B)   two different levels in a marketing channel.
C)   members of upper management who make the marketing channel decisions and lower management who must implement these decisions.
D)   a firm's and its customers' goals.
E)   two producers of the same product vying for the same distribution channel members.F) A) and D)
G) None of the above

Question 5

Intensive distribution is

Accepted Answer

A)   the distribution of products or services in markets where there are currently no other competitors.
B)   the distribution of products or services where the producer owns the entire channel of distribution.
C)   the density of distribution whereby a firm tries to place its products or services with only one retail outlet in a specified geographical area.
D)   the density of distribution whereby a firm tries to place its products or services in as many outlets as possible.
E)   the density of distribution whereby a firm chooses to place its products or services in very few retail outlets in a specific area to generate excitement.F) D) and E)
G) A) and C)

Question 6

Digital marketing channels refer to

Accepted Answer

A)   the use of the Internet to make products and services available for consumption or use by consumers or organizational buyers.
B)   a firm's computer-driven inventory management through an entirely mechanized warehousing system.
C)   intranet systems linking all aspects of production within a single firm.
D)   the information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings.
E)   the name given to all Internet addresses that end in ".com" to indicate that these websites are commercial entities that distribute goods and services.F) B) and C)
G) A) and D)

Question 7

Efficient supply chains

Accepted Answer

A)   often operate with relatively low inventory levels.
B)   use common platforms and common components across several products.
C)   rely on maintaining large geographically dispersed inventory warehouses.
D)   traditionally use expensive, but faster, modes of transportation.
E)   emphasize economies of scale by increasing the variety of system configurations offered.F) None of the above
G) A) and B)

Question 8

All of these are buyer requirements for choosing a marketing channel except which?

Accepted Answer

A)   pre- or postsale services
B)   convenience
C)   variety
D)   transparency
E)   informationF) A) and D)
G) A) and E)

Question 9

Though uninformed consumers focus largely on the extra markups from channel members, the four utilities each provide opportunities for

Accepted Answer

A)   channel intermediary development.
B)   relationship management between channel intermediaries themselves.
C)   value created by channel intermediaries.
D)   channel intermediary promotional efforts.
E)   recouping cost overruns.F) A) and D)
G) A) and E)

Question 10

Dual distribution is

Accepted Answer

A)   a level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products.
B)   an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.
C)   the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.
D)   the use of professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.
E)   a practice whereby one firm's marketing channel is used to sell another firm's products.F) A) and E)
G) B) and D)

Question 11

Distributor is

Accepted Answer

A)   an imprecise term for intermediaries that perform a variety of distribution functions, including selling, maintaining inventories, and extending credit.
B)   the term for an intermediary that sells only to manufacturers.
C)   the term for an intermediary that takes possession of a product, alters it in some way, and then sells it to the ultimate consumer.
D)   the term for an intermediary that sells only to consumers.
E)   the term for an intermediary that sells only to other intermediaries.F) B) and E)
G) C) and E)

Question 12

In the context of a supply chain, customer service refers to

Accepted Answer

A)   adhering to the belief that the customer is always right.
B)   satisfying the customers' needs no matter what the price.
C)   accepting full liability if a product fails to meet a customer's expectations.
D)   the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.
E)   the ability of retailers to satisfy users in terms of product, price, promotion, and place.F) B) and E)
G) A) and C)

Question 13

A firm needs to drive down logistics costs as long as it can deliver expected

Accepted Answer

A)   balance sheet results.
B)   customer service.
C)   low levels of expenses.
D)   product-market synergies.
E)   target market goals.F) A) and C)
G) A) and B)

Question 14

American Hospital Supply helps its customers (hospitals)  manage inventory and streamline order processing for hundreds of medical supplies. The source of American Hospital Supply's power is its

Accepted Answer

A)   economic influence.
B)   expertise.
C)   identification with a particular channel member.
D)   legitimate rights through contracts.
E)   governmental contracts.F) B) and D)
G) A) and B)

Question 15

Channel conflict occurred when American Airlines decided to terminate its relationship with Orbitz and Expedia, two online ticketing and travel sites, and sell directly through AA Direct Connect. This is an example of

Accepted Answer

A)   horizontal conflict.
B)   corporate conflict.
C)   forward integration conflict.
D)   lateral conflict.
E)   disintermediation.F) A) and E)
G) A) and B)

Question 16

Which type of marketing channel arrangement is especially good for a firm to use in global marketing where the creation of marketing channel relationships is expensive and time-consuming?

Accepted Answer

A)   dual distribution
B)   cooperative distribution
C)   strategic channel alliance
D)   global distribution alliance
E)   multichannel distributionF) A) and D)
G) A) and C)

Question 17

Some manufacturers have tried to use the brand loyalty of their consumers to force retailers to carry only their products and none from their competitors. These manufacturers were trying to force retailers to participate in a practice known as

Accepted Answer

A)   resale restriction.
B)   vertical integration.
C)   exclusive dealing.
D)   refusal to deal.
E)   tying arrangement.F) C) and E)
G) A) and B)

Question 18

Candy bars most likely would be sold using which type of target market coverage?

Accepted Answer

A)   exclusive distribution
B)   direct distribution
C)   intensive distribution
D)   dual distribution
E)   selective distributionF) B) and E)
G) C) and D)

Question 19

Which type of distribution density does Piaget use when the maker of fine jewelry and watches distributes its products through a single retailer in select cities in the United States?

Accepted Answer

A)   intensive distribution
B)   extensive distribution
C)   selective distribution
D)   exclusive distribution
E)   private label distributionF) A) and E)
G) A) and C)

Question 20

Lara lives in a rural area but near the suburbs. She buys produce, eggs, and honey from her neighbors and on most weekends she runs a very popular stand at a busy farmer's market. In terms of the marketing channel, Lara's farmer's market booth would be considered the

Accepted Answer

A)   ultimate consumer.
B)   agent.
C)   wholesaler.
D)   retailer.
E)   distributor.F) A) and C)
G) A) and D)

Exam 15: Managing Marketing Channels and Supply Chains

Digital marketing channels refer to

Correct AnswerverifiedShow Answer

All of these are buyer requirements for choosing a marketing channel except which?

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In the context of a supply chain, customer service refers to

Correct AnswerverifiedShow Answer

Distributor is

Correct AnswerverifiedShow Answer

Candy bars most likely would be sold using which type of target market coverage?

Correct AnswerverifiedShow Answer

Vertical conflict is conflict that occurs between

Correct AnswerverifiedShow Answer

A contractual vertical marketing system is an arrangement whereby

Correct AnswerverifiedShow Answer

Intensive distribution is

Correct AnswerverifiedShow Answer

Channel conflict occurred when American Airlines decided to terminate its relationship with Orbitz and Expedia, two online ticketing and travel sites, and sell directly through AA Direct Connect. This is an example of

Correct AnswerverifiedShow Answer

Which type of distribution density does Piaget use when the maker of fine jewelry and watches distributes its products through a single retailer in select cities in the United States?

Correct AnswerverifiedShow Answer

Dual distribution is

Correct AnswerverifiedShow Answer

American Hospital Supply helps its customers (hospitals) manage inventory and streamline order processing for hundreds of medical supplies. The source of American Hospital Supply's power is its

Correct AnswerverifiedShow Answer

Purchasing products for resale or acting as an agent for supply of a product would be an example of ________ function.

Correct AnswerverifiedShow Answer

Lara lives in a rural area but near the suburbs. She buys produce, eggs, and honey from her neighbors and on most weekends she runs a very popular stand at a busy farmer's market. In terms of the marketing channel, Lara's farmer's market booth would be considered the

Correct AnswerverifiedShow Answer

A firm needs to drive down logistics costs as long as it can deliver expected

Correct AnswerverifiedShow Answer

A commonly used indirect channel moves product from producer to retailer to consumer. Companies like Target and The Home Depot buy directly from manufacturers rather than wholesalers. This channel is used when

Correct AnswerverifiedShow Answer

Which type of marketing channel arrangement is especially good for a firm to use in global marketing where the creation of marketing channel relationships is expensive and time-consuming?

Correct AnswerverifiedShow Answer

Though uninformed consumers focus largely on the extra markups from channel members, the four utilities each provide opportunities for

Correct AnswerverifiedShow Answer

Some manufacturers have tried to use the brand loyalty of their consumers to force retailers to carry only their products and none from their competitors. These manufacturers were trying to force retailers to participate in a practice known as

Correct AnswerverifiedShow Answer

Efficient supply chains

Correct AnswerverifiedShow Answer

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