Question 1

The combination of successive stages of production and distribution under a single ownership is referred to as

Accepted Answer

A)  a contractual vertical marketing system. 
B)  a corporate vertical marketing system. 
C)  an integrated marketing system. 
D)  a corporate horizontal marketing system. 
E)  a contractual horizontal marketing system. 
A)  a contractual vertical marketing system. 
B)  a corporate vertical marketing system. 
C)  an integrated marketing system. 
D)  a corporate horizontal marketing system. 
E)  a contractual horizontal marketing system.

Question 2

In a direct channel, all channel functions are performed by

Accepted Answer

A)  retailers. 
B)  wholesalers. 
C)  producers. 
D)  brokers and agents. 
E)  middlemen. 
A)  retailers. 
B)  wholesalers. 
C)  producers. 
D)  brokers and agents. 
E)  middlemen.

Question 3

Hewlett-Packard is taking a proactive role in reducing the amount of electronic merchandise dumped in landfills by using ________ to reclaim recyclable and reusable materials.

Accepted Answer

A)  reverse materials handling 
B)  reverse logistics 
C)  cause-related marketing 
D)  vendor-managed inventory 
E)  materials transformation 
A)  reverse materials handling 
B)  reverse logistics 
C)  cause-related marketing 
D)  vendor-managed inventory 
E)  materials transformation

Question 4

An intermediary that sells to other intermediaries, usually to retailers in consumer markets, is referred to as

Accepted Answer

A)  a broker. 
B)  an agent. 
C)  a retailer. 
D)  a distributor. 
E)  a wholesaler. 
A)  a broker. 
B)  an agent. 
C)  a retailer. 
D)  a distributor. 
E)  a wholesaler.

Question 5

A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms, one of which is

Accepted Answer

A)  stakeholder position. 
B)  familial ties to other channel members. 
C)  economic power. 
D)  longevity in the industry. 
E)  geographic proximity to the manufacturing plant. 
A)  stakeholder position. 
B)  familial ties to other channel members. 
C)  economic power. 
D)  longevity in the industry. 
E)  geographic proximity to the manufacturing plant.

Question 6

Expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling are referred to as

Accepted Answer

A)  supplier service cost. 
B)  manufacturing cost. 
C)  total logistics cost. 
D)  social responsibility cost. 
E)  total supply chain cost. 
A)  supplier service cost. 
B)  manufacturing cost. 
C)  total logistics cost. 
D)  social responsibility cost. 
E)  total supply chain cost.

Question 7

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 is referred to as

Accepted Answer

A)  the inventory management process. 
B)  logistics management. 
C)  production management. 
D)  manufacturer distribution logistics. 
E)  supply-chain management. 
A)  the inventory management process. 
B)  logistics management. 
C)  production management. 
D)  manufacturer distribution logistics. 
E)  supply-chain management.

Question 8

International Products, a U.S. firm that sells industrial cleansers and lubricants, wanted to sell its product to factories, hospitals, and labs in China, but it did not have the necessary expertise. As a result, International Products hired Asia Marketing & Management to sell, stock, and deliver a full assortment of products to the Chinese market. Asia Marketing & Management is an example of

Accepted Answer

A)  an agent. 
B)  a wholesaler. 
C)  a global broker. 
D)  a retailer. 
E)  an industrial distributor. 
A)  an agent. 
B)  a wholesaler. 
C)  a global broker. 
D)  a retailer. 
E)  an industrial distributor.

Question 9

Supply chain management refers to

Accepted Answer

A)  the integration and organization of information and logistic activities across firms for the purpose of creating and delivering products and services that provide value to ultimate consumers. 
B)  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. 
C)  the integration and organization of information and logistical activities that actively bring consumers together with sellers through the express use of agents and brokers. 
D)  an inventory management system that is designed to reduce the retailer's lead time for receiving merchandise, which then lowers a retailer's inventory investment, improves customer service levels, and reduces logistic expenses. 
E)  a highly organized system that facilitates minute-to-minute communication between all members of a supply chain and ensures the producer is aware of any changes in delivery or demand for a product or service. 
A)  the integration and organization of information and logistic activities across firms for the purpose of creating and delivering products and services that provide value to ultimate consumers. 
B)  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. 
C)  the integration and organization of information and logistical activities that actively bring consumers together with sellers through the express use of agents and brokers. 
D)  an inventory management system that is designed to reduce the retailer's lead time for receiving merchandise, which then lowers a retailer's inventory investment, improves customer service levels, and reduces logistic expenses. 
E)  a highly organized system that facilitates minute-to-minute communication between all members of a supply chain and ensures the producer is aware of any changes in delivery or demand for a product or service.

Question 10

Cessna is considered the volume leader in the executive jet market. It has been described as "almost totally vertically integrated." This quote means that Cessna

Accepted Answer

A)  does not fall under the jurisdiction of any federal regulatory agency. 
B)  owns several of the entities that would make up the traditional marketing channel. 
C)  has eliminated economies of scale. 
D)  has achieved a high level of social responsibility. 
E)  uses outsourcing for all component parts and materials. 
A)  does not fall under the jurisdiction of any federal regulatory agency. 
B)  owns several of the entities that would make up the traditional marketing channel. 
C)  has eliminated economies of scale. 
D)  has achieved a high level of social responsibility. 
E)  uses outsourcing for all component parts and materials.

Question 11

When choosing a marketing channel or intermediary, it is important to ask several key questions, including which of these?

Accepted Answer

A)  How many of the firm's competitors will be using the same channels? 
B)  Which channels have strategic channel alliances with other resellers? 
C)  How long have the channel members and intermediaries been in business? 
D)  Who is responsible for negotiating the channel or intermediary contracts? 
E)  Which channel and intermediaries will best satisfy the buying requirements of the target market? 
A)  How many of the firm's competitors will be using the same channels? 
B)  Which channels have strategic channel alliances with other resellers? 
C)  How long have the channel members and intermediaries been in business? 
D)  Who is responsible for negotiating the channel or intermediary contracts? 
E)  Which channel and intermediaries will best satisfy the buying requirements of the target market?

Question 12

A strategic channel alliance is

Accepted Answer

A)  an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. 
B)  a practice whereby one firm's marketing channel is used to sell another firm's products. 
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)  an arrangement whereby companies reduce distribution costs by sharing facilities, equipment, and transportation. 
E)  a practice whereby consumers can interact with various advertising media to buy products without a face-to-face meeting with a salesperson. 
A)  an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. 
B)  a practice whereby one firm's marketing channel is used to sell another firm's products. 
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)  an arrangement whereby companies reduce distribution costs by sharing facilities, equipment, and transportation. 
E)  a practice whereby consumers can interact with various advertising media to buy products without a face-to-face meeting with a salesperson.

Question 13

By promising to change engine oil and filters quickly, Jiffy Lube is appealing to which buyer requirement?

Accepted Answer

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

Question 14

In terms of target market coverage, density refers to the number of ________ in a geographical area.

Accepted Answer

A)  target market customers 
B)  competitors 
C)  wholesalers 
D)  retail stores 
E)  stakeholders 
A)  target market customers 
B)  competitors 
C)  wholesalers 
D)  retail stores 
E)  stakeholders

Question 15

There are four types of franchising arrangements. List the arrangements and provide a brief description of each.

Accepted Answer

Franchising is a contractual arrangement

Question 16

When a firm tries to place its products or services in as many outlets as possible, the density of distribution is referred to as

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.

Question 17

Customer convenience is an important consideration when choosing a marketing channel. A commonly held view among website developers is the "________ rule," a belief that consumers will abandon their efforts to enter or navigate a website if download time exceeds this amount of time.

Accepted Answer

A)  five second 
B)  six second 
C)  seven second 
D)  eight second 
E)  10 second 
A)  five second 
B)  six second 
C)  seven second 
D)  eight second 
E)  10 second

Question 18

The two types of channel conflict are

Accepted Answer

A)  wholesaler and retailer. 
B)  horizontal and vertical. 
C)  transactional and promotional. 
D)  external and internal. 
E)  producer and consumer. 
A)  wholesaler and retailer. 
B)  horizontal and vertical. 
C)  transactional and promotional. 
D)  external and internal. 
E)  producer and consumer.

Question 19

Jaffar (Jeff) Tabrizi is the owner and president of Tabrizi Oriental Rugs located in Toronto, Canada. He personally shops the world over, handpicks, and orders authentic and beautiful handmade rugs. He has them shipped to Canada, where he sells them through his brick-and-mortar stores and his www.tabrizi.com website. In terms of the marketing channel, Tabrizi is acting as

Accepted Answer

A)  a consumer. 
B)  an agent. 
C)  a wholesaler. 
D)  a brokerage firm. 
E)  a middleman. 
A)  a consumer. 
B)  an agent. 
C)  a wholesaler. 
D)  a brokerage firm. 
E)  a middleman.

Question 20

Johnson Controls can receive an order for automobile seats from Ford and deliver the order four hours later, beginning with raw materials and ending with delivery of the finished seats to Ford. To accomplish this, Johnson Controls must

Accepted Answer

A)  focus on strong logistics for its customers. 
B)  provide Ford with a cost-effective dual distribution system. 
C)  increase the number of steps in the value proposition creation process. 
D)  establish itself in the role of channel captain. 
E)  avoid interfering with influence Ford's supply chain. 
A)  focus on strong logistics for its customers. 
B)  provide Ford with a cost-effective dual distribution system. 
C)  increase the number of steps in the value proposition creation process. 
D)  establish itself in the role of channel captain. 
E)  avoid interfering with influence Ford's supply chain.

Exam 15: Managing Marketing Channels and Supply Chains

The combination of successive stages of production and distribution under a single ownership is referred to as

In a direct channel, all channel functions are performed by

Hewlett-Packard is taking a proactive role in reducing the amount of electronic merchandise dumped in landfills by using ________ to reclaim recyclable and reusable materials.

An intermediary that sells to other intermediaries, usually to retailers in consumer markets, is referred to as

A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms, one of which is

Expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling are referred to as

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 is referred to as

Supply chain management refers to

Cessna is considered the volume leader in the executive jet market. It has been described as "almost totally vertically integrated." This quote means that Cessna

When choosing a marketing channel or intermediary, it is important to ask several key questions, including which of these?

A strategic channel alliance is

By promising to change engine oil and filters quickly, Jiffy Lube is appealing to which buyer requirement?

In terms of target market coverage, density refers to the number of ________ in a geographical area.

There are four types of franchising arrangements. List the arrangements and provide a brief description of each.

When a firm tries to place its products or services in as many outlets as possible, the density of distribution is referred to as

Customer convenience is an important consideration when choosing a marketing channel. A commonly held view among website developers is the "________ rule," a belief that consumers will abandon their efforts to enter or navigate a website if download time exceeds this amount of time.

The two types of channel conflict are

Johnson Controls can receive an order for automobile seats from Ford and deliver the order four hours later, beginning with raw materials and ending with delivery of the finished seats to Ford. To accomplish this, Johnson Controls must

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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