Question 1

The Clayton Act prohibits, restricts, or influences all of these channel strategies and practices except which?

Accepted Answer

A)  exclusive dealing 
B)  refusal to deal 
C)  resale restrictions 
D)  vertical integration 
E)  tying arrangements 
A)  exclusive dealing 
B)  refusal to deal 
C)  resale restrictions 
D)  vertical integration 
E)  tying arrangements C

Question 2

In some countries, the packaging of the well-known Cheerios brand of cereal carries the Nestlé name rather than the familiar General Mills brand name. Explain the channel that is being used and the importance of Cereal Partners Worldwide (CPW).

Accepted Answer

CPW is a strategic channel alliance designed from the start to be a global business. A strategic channel alliance is when one firm's marketing channel is used to sell another firm's products. CPW joined the cereal manufacturing and marketing capability of U.S.-based General Mills with the worldwide distribution clout of Swiss-based Nestlé. Today, CPW competes in more than 140 countries that span the globe. The General Mills-Nestlé strategic channel alliance also increased the global ready-to-eat cereal market share of these companies. CPW currently accounts for over 10 percent of the nearly $30 billion worldwide hot-and-cold cereal market with more than $4 billion in annual revenue.

Question 3

Vertical marketing systems are

Accepted Answer

A)  professionally managed geographically dispersed marketing channels designed to achieve channel economies and maximize marketing impact. 
B)  professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. 
C)  retailer-sponsored cooperatives where small, independent retailers form an organization that operates a wholesale facility cooperatively. 
D)  professionally managed geographically dispersed marketing channels that are controlled through strategic channel alliances. 
E)  channel partnerships that share responsibility for ordering and physically distributing each other's products. 
A)  professionally managed geographically dispersed marketing channels designed to achieve channel economies and maximize marketing impact. 
B)  professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. 
C)  retailer-sponsored cooperatives where small, independent retailers form an organization that operates a wholesale facility cooperatively. 
D)  professionally managed geographically dispersed marketing channels that are controlled through strategic channel alliances. 
E)  channel partnerships that share responsibility for ordering and physically distributing each other's products. B

Question 4

The most indirect marketing channel is employed where many intermediaries are used to help coordinate the distribution of the product. Which of these products would most likely be marketed using this kind of channel?

Accepted Answer

A)  Aspen dental services 
B)  Toyota automobiles 
C)  Leslie pool supplies 
D)  Jaipur rugs made in India 
E)  Hershey's candy bars 
A)  Aspen dental services 
B)  Toyota automobiles 
C)  Leslie pool supplies 
D)  Jaipur rugs made in India 
E)  Hershey's candy bars

Question 5

Southern pine lumber is visually inspected and placed into categories like "Select Structural," "No. 1," and "No. 2." These categories reflect characteristics of the wood and are related to its suggested uses. This rating system is most closely related to which facilitating function activity performed by marketing intermediaries?

Accepted Answer

A)  grading 
B)  sorting 
C)  risk-taking 
D)  marketing 
E)  assorting 
A)  grading 
B)  sorting 
C)  risk-taking 
D)  marketing 
E)  assorting

Question 6

Which statement regarding supply chains is most accurate?

Accepted Answer

A)  The most common form of supply chain is the collaborative-response efficiency strategy. 
B)  In order for a supply chain to work effectively, key decisions should be made by a third-party logistics provider. 
C)  The longer the supply chain, the greater the economies of scale and the better the profit margin. 
D)  Supply chains should consider the needs of suppliers, provided those needs are consistent with marketing strategies. 
E)  Supply chain managers often need to make trade-offs between efficiency and responsiveness. 
A)  The most common form of supply chain is the collaborative-response efficiency strategy. 
B)  In order for a supply chain to work effectively, key decisions should be made by a third-party logistics provider. 
C)  The longer the supply chain, the greater the economies of scale and the better the profit margin. 
D)  Supply chains should consider the needs of suppliers, provided those needs are consistent with marketing strategies. 
E)  Supply chain managers often need to make trade-offs between efficiency and responsiveness.

Question 7

Which type of contractual vertical marketing system involves small independent retailers forming an organization that operates a wholesale facility cooperatively?

Accepted Answer

A)  retailer-sponsored cooperative 
B)  service-sponsored retail system 
C)  administered cooperative system 
D)  manufacturer-sponsored cooperative 
E)  wholesaler-sponsored voluntary chain 
A)  retailer-sponsored cooperative 
B)  service-sponsored retail system 
C)  administered cooperative system 
D)  manufacturer-sponsored cooperative 
E)  wholesaler-sponsored voluntary chain

Question 8

Procter & Gamble can obtain cooperation from supermarkets in terms of displaying, promoting, and pricing its products, given its broad assortment of brand-name products. Which type of vertical marketing system does Procter & Gamble represent?

Accepted Answer

A)  corporate vertical marketing system 
B)  integrated vertical marketing system 
C)  contractual vertical marketing system 
D)  administered vertical marketing system 
E)  forward integration vertical marketing system 
A)  corporate vertical marketing system 
B)  integrated vertical marketing system 
C)  contractual vertical marketing system 
D)  administered vertical marketing system 
E)  forward integration vertical marketing system

Question 9

Logistical function activities include ________ products and services.

Accepted Answer

A)  buying and selling 
B)  assorting, storing, sorting, and transporting 
C)  financing and grading 
D)  risk-taking 
E)  marketing information and research 
A)  buying and selling 
B)  assorting, storing, sorting, and transporting 
C)  financing and grading 
D)  risk-taking 
E)  marketing information and research

Question 10

Firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others employ

Accepted Answer

A)  a customer-generated franchising system. 
B)  a service-sponsored retail franchise system. 
C)  a agent-sponsored wholesale franchise system. 
D)  a manufacturer-sponsored retail franchise system. 
E)  an administered vertical marketing systems. 
A)  a customer-generated franchising system. 
B)  a service-sponsored retail franchise system. 
C)  a agent-sponsored wholesale franchise system. 
D)  a manufacturer-sponsored retail franchise system. 
E)  an administered vertical marketing systems.

Question 11

A wholesaler is

Accepted Answer

A)  the independent firm or individual whose principal function is to bring buyers and sellers together. 
B)  any intermediary that takes ownership of a manufacturer's products or services and then finds multiple buyers for those products or services. 
C)  an intermediary that sells to other intermediaries, usually to retailers in consumer markets. 
D)  an intermediary that sells to consumers. 
E)  a manufacturing "matchmaker" that actively seeks out potential consumers and brings them to retailers. 
A)  the independent firm or individual whose principal function is to bring buyers and sellers together. 
B)  any intermediary that takes ownership of a manufacturer's products or services and then finds multiple buyers for those products or services. 
C)  an intermediary that sells to other intermediaries, usually to retailers in consumer markets. 
D)  an intermediary that sells to consumers. 
E)  a manufacturing "matchmaker" that actively seeks out potential consumers and brings them to retailers.

Question 12

Cross-docking is most closely related to

Accepted Answer

A)  efficient supply chains. 
B)  intermodal transportation. 
C)  responsive supply chains. 
D)  reverse logistics. 
E)  exclusive distribution. 
A)  efficient supply chains. 
B)  intermodal transportation. 
C)  responsive supply chains. 
D)  reverse logistics. 
E)  exclusive distribution.

Question 13

Channels are typically designed to satisfy one or more of four consumer interests. What are they and why are they important?

Accepted Answer

A consideration in channel design is gai

Question 14

Bombardier is the leading marketer of corporate jets. Its brand name is well known and respected in the corporate jet market. The aircraft company relies on outside suppliers for design support and to share development costs and market risks, but Bombardier is considered the leader in determining design and marketing of its planes. For its newest plane, Bombardier has about 30 prime suppliers, and about 10 of those have been involved since the initial design phase. Bombardier is an example of a

Accepted Answer

A)  product champion. 
B)  channel general. 
C)  channel director. 
D)  channel coordinator. 
E)  channel captain. 
A)  product champion. 
B)  channel general. 
C)  channel director. 
D)  channel coordinator. 
E)  channel captain.

Question 15

All of these are likely to produce channel conflict except which?

Accepted Answer

A)  A manufacturer increases its distribution coverage in a geographical area. 
B)  A channel member bypasses another member and sells or buys products directly. 
C)  Changes are made regarding how profit margins are distributed among channel members. 
D)  Manufacturers believe wholesalers or retailers are not giving their products adequate attention. 
E)  A channel member wants to use vendor-managed inventory. 
A)  A manufacturer increases its distribution coverage in a geographical area. 
B)  A channel member bypasses another member and sells or buys products directly. 
C)  Changes are made regarding how profit margins are distributed among channel members. 
D)  Manufacturers believe wholesalers or retailers are not giving their products adequate attention. 
E)  A channel member wants to use vendor-managed inventory.

Question 16

Starbucks relies on PepsiCo's distribution network in the United States to sell its cold, ready-to-drink coffee products in supermarkets and convenience stores. These firms are most likely using

Accepted Answer

A)  multichannel distribution. 
B)  a direct marketing channel. 
C)  a cooperative distribution channel. 
D)  a strategic channel alliance. 
E)  a dual distribution agreement. 
A)  multichannel distribution. 
B)  a direct marketing channel. 
C)  a cooperative distribution channel. 
D)  a strategic channel alliance. 
E)  a dual distribution agreement.

Question 17

When Dell Computer sells made-to-order PCs to customers online via its website, it is an example of which type of marketing channel?

Accepted Answer

A)  indirect channel 
B)  strategic channel alliance 
C)  consumer channel 
D)  dual distributive channel 
E)  direct channel 
A)  indirect channel 
B)  strategic channel alliance 
C)  consumer channel 
D)  dual distributive channel 
E)  direct channel

Question 18

A channel member (producer, wholesaler, or retailer) who coordinates, directs, and supports other channel members is referred to as a

Accepted Answer

A)  channel champion. 
B)  channel general. 
C)  channel captain. 
D)  channel director. 
E)  channel coordinator. 
A)  channel champion. 
B)  channel general. 
C)  channel captain. 
D)  channel director. 
E)  channel coordinator.

Question 19

The most indirect channel for consumer products incorporates agents, wholesalers, and retailers and is most commonly used when there

Accepted Answer

A)  are only a few large manufacturers but many small retailers. 
B)  are low-cost, low unit volume goods. 
C)  is too large an inventory to be carried by wholesalers. 
D)  are many small manufacturers and many small retailers. 
E)  are many manufacturers with a limited inventory competing for a small group of retailers. 
A)  are only a few large manufacturers but many small retailers. 
B)  are low-cost, low unit volume goods. 
C)  is too large an inventory to be carried by wholesalers. 
D)  are many small manufacturers and many small retailers. 
E)  are many manufacturers with a limited inventory competing for a small group of retailers.

Question 20

Apple now operates over 500 Apple retail stores around the world to sell its innovative products such as the iPhone and Apple Watch. Apple uses

Accepted Answer

A)  dual distribution. 
B)  backward integration. 
C)  forward integration. 
D)  horizontal integration. 
E)  strategic channel alliances. 
A)  dual distribution. 
B)  backward integration. 
C)  forward integration. 
D)  horizontal integration. 
E)  strategic channel alliances.

Exam 15: Managing Marketing Channels and Supply Chains

The Clayton Act prohibits, restricts, or influences all of these channel strategies and practices except which?

In some countries, the packaging of the well-known Cheerios brand of cereal carries the Nestlé name rather than the familiar General Mills brand name. Explain the channel that is being used and the importance of Cereal Partners Worldwide (CPW).

Vertical marketing systems are

The most indirect marketing channel is employed where many intermediaries are used to help coordinate the distribution of the product. Which of these products would most likely be marketed using this kind of channel?

Which statement regarding supply chains is most accurate?

Which type of contractual vertical marketing system involves small independent retailers forming an organization that operates a wholesale facility cooperatively?

Procter & Gamble can obtain cooperation from supermarkets in terms of displaying, promoting, and pricing its products, given its broad assortment of brand-name products. Which type of vertical marketing system does Procter & Gamble represent?

Logistical function activities include ________ products and services.

Firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others employ

A wholesaler is

Cross-docking is most closely related to

Channels are typically designed to satisfy one or more of four consumer interests. What are they and why are they important?

All of these are likely to produce channel conflict except which?

Starbucks relies on PepsiCo's distribution network in the United States to sell its cold, ready-to-drink coffee products in supermarkets and convenience stores. These firms are most likely using

When Dell Computer sells made-to-order PCs to customers online via its website, it is an example of which type of marketing channel?

A channel member (producer, wholesaler, or retailer) who coordinates, directs, and supports other channel members is referred to as a

The most indirect channel for consumer products incorporates agents, wholesalers, and retailers and is most commonly used when there

Apple now operates over 500 Apple retail stores around the world to sell its innovative products such as the iPhone and Apple Watch. Apple uses

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Successful Products, Services, and Brands

Services Marketing

Building the Price Foundation

Arriving at the Final Price

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multi-Channel Marketing

Pulling It All Together: the Strategic Marketing Proces

Building an Effective Marketing Plan

Financial Aspects of Marketing

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