Question 1

Risk taking as a transactional function refers to

Accepted Answer

A)  unpredictable costs of transportation because of fuel prices. 
B)  product liability from poorly produced products that become defective. 
C)  the need to stock merchandise in anticipation of sales. 
D)  trying new promotional campaigns. 
E)  investments in new-product development. 
A)  unpredictable costs of transportation because of fuel prices. 
B)  product liability from poorly produced products that become defective. 
C)  the need to stock merchandise in anticipation of sales. 
D)  trying new promotional campaigns. 
E)  investments in new-product development.

Question 2

In some instances, firms pair multiple channels with a multibrand strategy. The purpose of this strategy is to ________ of the firm's family brand and differentiate its marketing channels.

Accepted Answer

A)  create greater perceived value 
B)  maximize channel profits 
C)  minimize cannibalization 
D)  generate awareness 
E)  create a "backup" channel 
A)  create greater perceived value 
B)  maximize channel profits 
C)  minimize cannibalization 
D)  generate awareness 
E)  create a "backup" channel

Question 3

Extending credit to customers is an example of a ________ function performed by channel intermediaries.

Accepted Answer

A)  transactional 
B)  logistical 
C)  facilitating 
D)  buying 
E)  risk-taking 
A)  transactional 
B)  logistical 
C)  facilitating 
D)  buying 
E)  risk-taking

Question 4

A large company produces paint and other home decorating products. Its goal is to choose the marketing channel arrangement that will give it the most control over supply sources. Which marketing channel system should this company choose?

Accepted Answer

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

Question 5

Allowing consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson is referred to as

Accepted Answer

A)  an indirect marketing channel. 
B)  a direct to consumer marketing channel. 
C)  a multimarketing channel. 
D)  channel bypass marketing. 
E)  personal selling. 
A)  an indirect marketing channel. 
B)  a direct to consumer marketing channel. 
C)  a multimarketing channel. 
D)  channel bypass marketing. 
E)  personal selling.

Question 6

An administered vertical marketing system is a marketing system

Accepted Answer

A)  that achieves coordination at successive stages of production and distribution by contractual agreements between channel members. 
B)  that achieves coordination at successive stages of production and distribution by cooperation and consensus among all members of the marketing chain. 
C)  that achieves coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership. 
D)  in which a channel member (producer, wholesaler, or retailer) is elected to coordinate, direct, and support all other channel members. 
E)  that is run and coordinated completely outside the traditional chain of distribution by a firm that specializes in that industry's specific logistics needs. 
A)  that achieves coordination at successive stages of production and distribution by contractual agreements between channel members. 
B)  that achieves coordination at successive stages of production and distribution by cooperation and consensus among all members of the marketing chain. 
C)  that achieves coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership. 
D)  in which a channel member (producer, wholesaler, or retailer) is elected to coordinate, direct, and support all other channel members. 
E)  that is run and coordinated completely outside the traditional chain of distribution by a firm that specializes in that industry's specific logistics needs.

Question 7

A supply chain refers to

Accepted Answer

A)  the various firms involved in performing the activities required to create and deliver a product or service to ultimate consumers or industrial users. 
B)  an inventory management system where the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items. 
C)  mathematical formulas and calculations used in determining product volume and demand in order to generate the greatest revenue at the lowest cost. 
D)  activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost. 
E)  a specialized intermediary in the distribution chain responsible for the coordination of all production schedules. 
A)  the various firms involved in performing the activities required to create and deliver a product or service to ultimate consumers or industrial users. 
B)  an inventory management system where the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items. 
C)  mathematical formulas and calculations used in determining product volume and demand in order to generate the greatest revenue at the lowest cost. 
D)  activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost. 
E)  a specialized intermediary in the distribution chain responsible for the coordination of all production schedules.

Question 8

Figure 15-7
-Figure 15-7 above shows six channel practices that restrain competition, create monopolies, or otherwise represent unfair methods of competition. Box A represents which federal legislation meant to curb them?

Accepted Answer

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

Question 9

The various firms involved in performing the activities required to create and deliver a product or service to ultimate consumers or industrial users are referred to as

Accepted Answer

A)  strategic distribution. 
B)  distribution management. 
C)  a supply chain. 
D)  value chain optimization. 
E)  logistics. 
A)  strategic distribution. 
B)  distribution management. 
C)  a supply chain. 
D)  value chain optimization. 
E)  logistics.

Question 10

A retailer-sponsored cooperative involves

Accepted Answer

A)  small, independent retailers forming an organization that operates a wholesale facility cooperatively. 
B)  a vertical marketing system that uses a contractual relationship between a wholesaler and small independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management. 
C)  an agreement among small, privately owned manufacturers to pool their resources by sharing installations, heavy equipment, and warehousing they would be unable to afford on their own. 
D)  an agreement among retailers to pool their resources by purchasing services such as signage, snow removal, and trash removal that affects the physical space (strip mall, etc.) they all share. 
E)  small, independent retailers that pool their resources to finance store expansion programs. 
A)  small, independent retailers forming an organization that operates a wholesale facility cooperatively. 
B)  a vertical marketing system that uses a contractual relationship between a wholesaler and small independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management. 
C)  an agreement among small, privately owned manufacturers to pool their resources by sharing installations, heavy equipment, and warehousing they would be unable to afford on their own. 
D)  an agreement among retailers to pool their resources by purchasing services such as signage, snow removal, and trash removal that affects the physical space (strip mall, etc.) they all share. 
E)  small, independent retailers that pool their resources to finance store expansion programs.

Question 11

A retailer is

Accepted Answer

A)  an intermediary that sells only to other intermediaries. 
B)  any intermediary between a manufacturer and industrial markets. 
C)  an intermediary that sells to other distributors. 
D)  an intermediary that takes possession of a product, alters it in some way, and then sells it to the ultimate consumer. 
E)  an intermediary that sells to consumers. 
A)  an intermediary that sells only to other intermediaries. 
B)  any intermediary between a manufacturer and industrial markets. 
C)  an intermediary that sells to other distributors. 
D)  an intermediary that takes possession of a product, alters it in some way, and then sells it to the ultimate consumer. 
E)  an intermediary that sells to consumers.

Question 12

Franchising refers to

Accepted Answer

A)  a contractual agreement between multiple retailers sharing the same business mission to operate with a consistent business model to not only achieve enhanced buying power but also increase customer loyalty. 
B)  a contractual arrangement between a parent company and an individual or firm that allows the latter to operate a certain type of business under an established name and according to specific rules. 
C)  purchasing the name, branding, and raw materials from one organization and transferring it to another. 
D)  a practice whereby one firm's marketing channel is used to sell another firm's product. 
E)  selling an idea to a larger company and letting it do all the manufacturing, distribution, and marketing. 
A)  a contractual agreement between multiple retailers sharing the same business mission to operate with a consistent business model to not only achieve enhanced buying power but also increase customer loyalty. 
B)  a contractual arrangement between a parent company and an individual or firm that allows the latter to operate a certain type of business under an established name and according to specific rules. 
C)  purchasing the name, branding, and raw materials from one organization and transferring it to another. 
D)  a practice whereby one firm's marketing channel is used to sell another firm's product. 
E)  selling an idea to a larger company and letting it do all the manufacturing, distribution, and marketing.

Question 13

A fast-food franchisee is required by its franchisor to buy unmarked plastic eating utensils from the franchisor if the franchisee wants to use the cups, napkins, and other paper products with the franchise logo. The franchisee can buy the identical utensils from a local supplier for half the price. This requirement would be an example of

Accepted Answer

A)  a dual distribution network. 
B)  a refusal to deal. 
C)  an exclusive dealing. 
D)  a tying arrangement. 
E)  a resale restriction. 
A)  a dual distribution network. 
B)  a refusal to deal. 
C)  an exclusive dealing. 
D)  a tying arrangement. 
E)  a resale restriction.

Question 14

Nestlé and General Mills have ________ to distribute General Mills products like Cheerios under the Nestlé brand name in about 140 markets worldwide.

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 15

Bentley Motors makes one of the world's most prestigious automobile brands, targeting the ultra-luxury segment. Which type of market coverage does Bentley most likely use?

Accepted Answer

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

Question 16

The objective of logistics management in a customer-driven supply chain is to minimize logistics costs while

Accepted Answer

A)  satisfying suppliers. 
B)  maximizing profits. 
C)  maximizing supply chain membership. 
D)  delivering the appropriate level of customer service. 
E)  maximizing supply chain inefficiency. 
A)  satisfying suppliers. 
B)  maximizing profits. 
C)  maximizing supply chain membership. 
D)  delivering the appropriate level of customer service. 
E)  maximizing supply chain inefficiency.

Question 17

In choosing the appropriate marketing channel, a firm should consider the interests that buyers might want fulfilled. These interests fall into four broad categories, one of which is

Accepted Answer

A)  profitability. 
B)  information. 
C)  quality. 
D)  brand-name recognition. 
E)  availability. 
A)  profitability. 
B)  information. 
C)  quality. 
D)  brand-name recognition. 
E)  availability.

Question 18

You probably own several pairs of shoes. Further, it is likely you purchased those shoes at retail stores located in a shopping mall and not directly from the manufacturer. In fact, most products are brought to you from a series of other individuals or firms known as a

Accepted Answer

A)  marketing network. 
B)  distribution hierarchy. 
C)  marketing chain. 
D)  distribution matrix. 
E)  marketing channel. 
A)  marketing network. 
B)  distribution hierarchy. 
C)  marketing chain. 
D)  distribution matrix. 
E)  marketing channel.

Question 19

What is the first step in choosing the right supply chain?

Accepted Answer

A)  Understand the supply chain. 
B)  Develop a list of qualified channel members. 
C)  Enumerate logistics specifications. 
D)  Compare multiple-channel alternatives. 
E)  Understand the customer. 
A)  Understand the supply chain. 
B)  Develop a list of qualified channel members. 
C)  Enumerate logistics specifications. 
D)  Compare multiple-channel alternatives. 
E)  Understand the customer.

Question 20

The three basic functions intermediaries perform are

Accepted Answer

A)  planning, implementing, and evaluating functions. 
B)  implementation, accommodating, and contractual functions. 
C)  contractual, facilitating, and logistical functions. 
D)  transactional, logistical, and facilitating functions. 
E)  facilitating, accommodating, and implementation functions. 
A)  planning, implementing, and evaluating functions. 
B)  implementation, accommodating, and contractual functions. 
C)  contractual, facilitating, and logistical functions. 
D)  transactional, logistical, and facilitating functions. 
E)  facilitating, accommodating, and implementation functions.

Exam 15: Managing Marketing Channels and Supply Chains

Risk taking as a transactional function refers to

In some instances, firms pair multiple channels with a multibrand strategy. The purpose of this strategy is to ________ of the firm's family brand and differentiate its marketing channels.

Extending credit to customers is an example of a ________ function performed by channel intermediaries.

A large company produces paint and other home decorating products. Its goal is to choose the marketing channel arrangement that will give it the most control over supply sources. Which marketing channel system should this company choose?

Allowing consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson is referred to as

An administered vertical marketing system is a marketing system

A supply chain refers to

Figure 15-7 -Figure 15-7 above shows six channel practices that restrain competition, create monopolies, or otherwise represent unfair methods of competition. Box A represents which federal legislation meant to curb them?

The various firms involved in performing the activities required to create and deliver a product or service to ultimate consumers or industrial users are referred to as

A retailer-sponsored cooperative involves

A retailer is

Franchising refers to

Nestlé and General Mills have ________ to distribute General Mills products like Cheerios under the Nestlé brand name in about 140 markets worldwide.

Bentley Motors makes one of the world's most prestigious automobile brands, targeting the ultra-luxury segment. Which type of market coverage does Bentley most likely use?

The objective of logistics management in a customer-driven supply chain is to minimize logistics costs while

In choosing the appropriate marketing channel, a firm should consider the interests that buyers might want fulfilled. These interests fall into four broad categories, one of which is

You probably own several pairs of shoes. Further, it is likely you purchased those shoes at retail stores located in a shopping mall and not directly from the manufacturer. In fact, most products are brought to you from a series of other individuals or firms known as a

What is the first step in choosing the right supply chain?

The three basic functions intermediaries perform are

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

Filters