Question 1

Corporate vertical marketing systems are

Accepted Answer

A)  small, independent retailers that form an organization that operates a wholesale facility cooperatively. 
B)  professionally managed geographically dispersed marketing channels that are controlled through strategic channel alliances. 
C)  the combination of successive stages of production and distribution under a single ownership. 
D)  professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. 
E)  a contractual arrangement between a parent company and an individual or firm that allows the individual or firm to operate a certain type of business under an established name and according to specific rules. 
A)  small, independent retailers that form an organization that operates a wholesale facility cooperatively. 
B)  professionally managed geographically dispersed marketing channels that are controlled through strategic channel alliances. 
C)  the combination of successive stages of production and distribution under a single ownership. 
D)  professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. 
E)  a contractual arrangement between a parent company and an individual or firm that allows the individual or firm to operate a certain type of business under an established name and according to specific rules.

Question 2

The ________ has been used to prosecute resale restrictions, which are a supplier's attempt to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may be sold.

Accepted Answer

A)  Sherman Act 
B)  Robinson-Patman Act 
C)  Federal Trade Commission Act 
D)  Clayton Act 
E)  Consumer Goods Pricing Act 
A)  Sherman Act 
B)  Robinson-Patman Act 
C)  Federal Trade Commission Act 
D)  Clayton Act 
E)  Consumer Goods Pricing Act

Question 3

________ is common in the soft drink industry where the manufacturer sells its concentrate to wholesalers, that carbonate it and market the finished product to retailers.

Accepted Answer

A)  A service-sponsored franchise system 
B)  A service-sponsored retail franchise system 
C)  A manufacturer-sponsored wholesale franchise system 
D)  A manufacturer-sponsored retail franchise system 
E)  An administered vertical marketing system 
A)  A service-sponsored franchise system 
B)  A service-sponsored retail franchise system 
C)  A manufacturer-sponsored wholesale franchise system 
D)  A manufacturer-sponsored retail franchise system 
E)  An administered vertical marketing system

Question 4

Another name for quick response systems is

Accepted Answer

A)  order replenishment systems. 
B)  customer logistics factors. 
C)  minimum-inventory systems. 
D)  web-based response systems. 
E)  efficient consumer response systems. 
A)  order replenishment systems. 
B)  customer logistics factors. 
C)  minimum-inventory systems. 
D)  web-based response systems. 
E)  efficient consumer response systems.

Question 5

Which of these is an example of communication between buyer and supplier?

Accepted Answer

A)  disintermediation 
B)  selective distribution 
C)  reverse logistics 
D)  forward integration 
E)  order status reports 
A)  disintermediation 
B)  selective distribution 
C)  reverse logistics 
D)  forward integration 
E)  order status reports

Question 6

Which of these statements best describes how a supply chain differs from a marketing channel?

Accepted Answer

A)  Communication is more important in the marketing channel than in the supply chain. 
B)  The marketing channel places more emphasis on cost-effectiveness than the supply chain. 
C)  A marketing channel includes suppliers that provide raw material inputs to a manufacturer. 
D)  A supply network moves materials from producer to consumer while a marketing channel moves materials from the supplier to the producer. 
E)  A supply chain includes suppliers; marketing channels do not. 
A)  Communication is more important in the marketing channel than in the supply chain. 
B)  The marketing channel places more emphasis on cost-effectiveness than the supply chain. 
C)  A marketing channel includes suppliers that provide raw material inputs to a manufacturer. 
D)  A supply network moves materials from producer to consumer while a marketing channel moves materials from the supplier to the producer. 
E)  A supply chain includes suppliers; marketing channels do not.

Question 7

A direct channel exists when

Accepted Answer

A)  producers and end users deal with each other on a one-on-one basis. 
B)  the producer and consumer perform numerous channel functions. 
C)  a firm reaches different buyers by employing two or more different types of channels for the same basic product. 
D)  an intermediary sells to other intermediaries, usually to retailers in consumer markets. 
E)  an agent or broker brings ultimate consumers to manufacturers. 
A)  producers and end users deal with each other on a one-on-one basis. 
B)  the producer and consumer perform numerous channel functions. 
C)  a firm reaches different buyers by employing two or more different types of channels for the same basic product. 
D)  an intermediary sells to other intermediaries, usually to retailers in consumer markets. 
E)  an agent or broker brings ultimate consumers to manufacturers.

Question 8

Dependability is the consistency of replenishment. This is important to all firms in a supply chain and to consumers. It can be broken into three elements: consistent lead time, safe delivery, and

Accepted Answer

A)  honest and accurate pricing. 
B)  quality products. 
C)  complete delivery. 
D)  a well-informed delivery staff. 
E)  product warranties. 
A)  honest and accurate pricing. 
B)  quality products. 
C)  complete delivery. 
D)  a well-informed delivery staff. 
E)  product warranties.

Question 9

Members of a high-school glee club sold home-baked cupcakes at school to raise money. The students selling their cupcakes to classmates would be an example of

Accepted Answer

A)  a personalized distribution. 
B)  a nonpermanent distribution. 
C)  an informal channel of distribution. 
D)  a direct channel of distribution. 
E)  an indirect channel of distribution. 
A)  a personalized distribution. 
B)  a nonpermanent distribution. 
C)  an informal channel of distribution. 
D)  a direct channel of distribution. 
E)  an indirect channel of distribution.

Question 10

During a recent year, Solectron, a California electronics contractor, made half of its purchases under vendor-managed inventory programs. Solectron

Accepted Answer

A)  had its suppliers perform all materials handing activities. 
B)  authorized its suppliers to eliminate as many wholesaling functions as possible from the supply chain. 
C)  used a system in which its suppliers determined the product amount and assortment that should be replenished. 
D)  authorized the use of distribution centers to provide quicker customer response times. 
E)  balanced its total logistics cost by eliminating the convenience service factor. 
A)  had its suppliers perform all materials handing activities. 
B)  authorized its suppliers to eliminate as many wholesaling functions as possible from the supply chain. 
C)  used a system in which its suppliers determined the product amount and assortment that should be replenished. 
D)  authorized the use of distribution centers to provide quicker customer response times. 
E)  balanced its total logistics cost by eliminating the convenience service factor.

Question 11

Any intermediary between a manufacturer and end-user markets can be called a

Accepted Answer

A)  retailer. 
B)  middleman. 
C)  wholesaler. 
D)  broker. 
E)  distributor. 
A)  retailer. 
B)  middleman. 
C)  wholesaler. 
D)  broker. 
E)  distributor.

Question 12

An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product is referred to as

Accepted Answer

A)  a strategic channel alliance. 
B)  multiple level selling. 
C)  parallel distribution. 
D)  dual distribution. 
E)  recursive distribution. 
A)  a strategic channel alliance. 
B)  multiple level selling. 
C)  parallel distribution. 
D)  dual distribution. 
E)  recursive distribution.

Question 13

IBM built a single ________ that would handle raw material procurement, manufacturing, logistics, customer support, order entry, and customer fulfillment across all of IBM.

Accepted Answer

A)  integrated supply chain 
B)  extranet computer system 
C)  customer service department 
D)  intranet supply network system 
E)  global procurement network 
A)  integrated supply chain 
B)  extranet computer system 
C)  customer service department 
D)  intranet supply network system 
E)  global procurement network

Question 14

Tylenol and Advil are two brands of over-the-counter products for ailments such as colds, headaches, sore throats, arthritis aches, fever, and general pain. Both of their manufacturers seek distribution of their products through pharmacies such as Walgreens and CVS. These companies seek channels and intermediaries that will satisfy a buyer's desire for

Accepted Answer

A)  variety. 
B)  information. 
C)  pre- or postsale service. 
D)  convenience. 
E)  adaptability. 
A)  variety. 
B)  information. 
C)  pre- or postsale service. 
D)  convenience. 
E)  adaptability.

Question 15

Cross-docking refers to

Accepted Answer

A)  the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements. 
B)  the practice of storing finished goods in the same trucks from which they will be dispensed and sold to consumers. 
C)  using large cargo containers that will be loaded onto trucks and then barges or ships that sail from port to port and then unloaded back onto trucks for final transport and delivery. 
D)  a practice that involves unloading products from suppliers, sorting products for individual stores, and quickly reloading products onto trucks for a particular store. 
E)  the practice of transporting retail goods from a centralized warehouse to the loading docks of regionally located satellite warehouses. 
A)  the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements. 
B)  the practice of storing finished goods in the same trucks from which they will be dispensed and sold to consumers. 
C)  using large cargo containers that will be loaded onto trucks and then barges or ships that sail from port to port and then unloaded back onto trucks for final transport and delivery. 
D)  a practice that involves unloading products from suppliers, sorting products for individual stores, and quickly reloading products onto trucks for a particular store. 
E)  the practice of transporting retail goods from a centralized warehouse to the loading docks of regionally located satellite warehouses.

Question 16

When only one retailer in a geographical area carries a firm's products, the density of distribution is referred to as

Accepted Answer

A)  intensive distribution. 
B)  extensive distribution. 
C)  selective distribution. 
D)  concentrated distribution. 
E)  exclusive distribution. 
A)  intensive distribution. 
B)  extensive distribution. 
C)  selective distribution. 
D)  concentrated distribution. 
E)  exclusive distribution.

Question 17

Corporate vertical marketing systems

Accepted Answer

A)  can use either forward integration or backward integration but not both. 
B)  increase distribution costs. 
C)  increase investment but decrease fixed costs. 
D)  are only effective with low-end consumer products. 
E)  offer more control over supply sources or resale of products. 
A)  can use either forward integration or backward integration but not both. 
B)  increase distribution costs. 
C)  increase investment but decrease fixed costs. 
D)  are only effective with low-end consumer products. 
E)  offer more control over supply sources or resale of products.

Question 18

What specific decision areas are associated with the flow of goods and together make up total logistics cost?

Accepted Answer

Total logistics cost includes expenses a

Question 19

Pharmaceutical companies sell some of their products to hospitals and clinics directly. They also market other products to large retail chains such as Walgreens that distribute them to their stores across the nation. In addition, they sell products to drug wholesalers that sell to the remaining independent drugstores in the United States. What method of distribution best describes the method used by pharmaceutical companies in this example?

Accepted Answer

A)  dual distribution 
B)  vertical distribution 
C)  horizontal distribution 
D)  direct distribution 
E)  exclusive distribution 
A)  dual distribution 
B)  vertical distribution 
C)  horizontal distribution 
D)  direct distribution 
E)  exclusive distribution

Question 20

When a firm tries to place its products in a few retail outlets in a specific geographical area, it is referred to as which level of distribution density?

Accepted Answer

A)  intensive distribution 
B)  extensive distribution 
C)  selective distribution 
D)  exclusive distribution 
E)  concentrated distribution 
A)  intensive distribution 
B)  extensive distribution 
C)  selective distribution 
D)  exclusive distribution 
E)  concentrated distribution

Exam 15: Managing Marketing Channels and Supply Chains

Corporate vertical marketing systems are

The ________ has been used to prosecute resale restrictions, which are a supplier's attempt to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may be sold.

________ is common in the soft drink industry where the manufacturer sells its concentrate to wholesalers, that carbonate it and market the finished product to retailers.

Another name for quick response systems is

Which of these is an example of communication between buyer and supplier?

Which of these statements best describes how a supply chain differs from a marketing channel?

A direct channel exists when

Dependability is the consistency of replenishment. This is important to all firms in a supply chain and to consumers. It can be broken into three elements: consistent lead time, safe delivery, and

Members of a high-school glee club sold home-baked cupcakes at school to raise money. The students selling their cupcakes to classmates would be an example of

During a recent year, Solectron, a California electronics contractor, made half of its purchases under vendor-managed inventory programs. Solectron

Any intermediary between a manufacturer and end-user markets can be called a

An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product is referred to as

IBM built a single ________ that would handle raw material procurement, manufacturing, logistics, customer support, order entry, and customer fulfillment across all of IBM.

Cross-docking refers to

When only one retailer in a geographical area carries a firm's products, the density of distribution is referred to as

Corporate vertical marketing systems

What specific decision areas are associated with the flow of goods and together make up total logistics cost?

When a firm tries to place its products in a few retail outlets in a specific geographical area, it is referred to as which level of distribution density?

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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