Question 1

Total logistics cost refers to

Accepted Answer

A)  the design, installation, and maintenance of in-store displays, cabinets, and freestanding promotional materials for retail outlets. 
B)  expenses associated with activities performed by brokers and agents to bring buyers and sellers together. 
C)  expenditures associated with the clerical or bookkeeping side of the procurement process, which include purchase, design, and maintenance of the EDI system. 
D)  expenses associated with product adaptations that are made by the manufacturer in response to the needs of a channel member closest to the consumer. 
E)  expenses associated with transportation, materials handling and warehousing, inventory, stockouts, order processing, and return products handling. 
A)  the design, installation, and maintenance of in-store displays, cabinets, and freestanding promotional materials for retail outlets. 
B)  expenses associated with activities performed by brokers and agents to bring buyers and sellers together. 
C)  expenditures associated with the clerical or bookkeeping side of the procurement process, which include purchase, design, and maintenance of the EDI system. 
D)  expenses associated with product adaptations that are made by the manufacturer in response to the needs of a channel member closest to the consumer. 
E)  expenses associated with transportation, materials handling and warehousing, inventory, stockouts, order processing, and return products handling.

Question 2

21st Century Fox is the name for Fox's broadcast/cable TV networks and TV/movie studios. Since most of the shows produced at its TV production unit and many of the movies made at its studio are only televised on its cable TV networks, 21st Century Fox is an example of

Accepted Answer

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

Question 3

A textile artist can buy fabric, thread, and batting, create an heirloom quilt, and then sell the finished work to customers in a kiosk decorated with some of the quilts produced to entice customers who shop at the local mall. By designing the quilts and kiosk with aesthetic value, the artist creates ________ utility.

Accepted Answer

A)  application 
B)  possession 
C)  time 
D)  place 
E)  form 
A)  application 
B)  possession 
C)  time 
D)  place 
E)  form

Question 4

Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact are referred to as

Accepted Answer

A)  integrated marketing systems. 
B)  horizontal marketing systems. 
C)  vertical marketing systems. 
D)  functional marketing systems. 
E)  cooperative marketing systems. 
A)  integrated marketing systems. 
B)  horizontal marketing systems. 
C)  vertical marketing systems. 
D)  functional marketing systems. 
E)  cooperative marketing systems.

Question 5

A ________ can be compared to a pipeline through which water flows-making possible the flow of products and services from a producer, through intermediaries, to a buyer.

Accepted Answer

A)  marketing chain 
B)  marketing hierarchy 
C)  marketing agent 
D)  marketing channel 
E)  marketing network 
A)  marketing chain 
B)  marketing hierarchy 
C)  marketing agent 
D)  marketing channel 
E)  marketing network

Question 6

Dual distribution can violate the Sherman Act and the Clayton Act if the

Accepted Answer

A)  prices charged for items sold through one channel are different from the prices charged for the same items in another channel. 
B)  manufacturer's behavior is viewed as lessening competition by eliminating wholesalers or retailers. 
C)  manufacturer has a corporate vertical marketing system with one channel and an administered vertical system with the other. 
D)  manufacturer uses both a direct and indirect marketing channel. 
E)  product is not available through more than one marketing channel. 
A)  prices charged for items sold through one channel are different from the prices charged for the same items in another channel. 
B)  manufacturer's behavior is viewed as lessening competition by eliminating wholesalers or retailers. 
C)  manufacturer has a corporate vertical marketing system with one channel and an administered vertical system with the other. 
D)  manufacturer uses both a direct and indirect marketing channel. 
E)  product is not available through more than one marketing channel.

Question 7

There are three types of contractual vertical marketing systems. List the systems and provide a brief description of each.

Accepted Answer

There are three major types of contractu

Question 8

Having a product or service where consumers want it is ________ utility.

Accepted Answer

A)  form 
B)  place 
C)  time 
D)  possession 
E)  location 
A)  form 
B)  place 
C)  time 
D)  possession 
E)  location

Question 9

MachineTools.com sells grinders, boring mills, and engine lathes. Its website lists products from over 700 machinery manufacturers, 2,500 distributors of new equipment, and 650 dealers of used inventory for sale. MachineTools.com relies on a well-established channel of manufacturers, distributors, and machinery dealers to provide the merchandise that is sold through this

Accepted Answer

A)  electronic government channel. 
B)  virtual marketing channel. 
C)  World Wide Web network. 
D)  mediated channel. 
E)  digital marketing channel. 
A)  electronic government channel. 
B)  virtual marketing channel. 
C)  World Wide Web network. 
D)  mediated channel. 
E)  digital marketing channel.

Question 10

When marketing channel members are engaged in assorting, storing, sorting, and transporting products and services, they are performing ________ functions.

Accepted Answer

A)  logistical 
B)  merchandising 
C)  facilitating 
D)  implementation 
E)  transactional 
A)  logistical 
B)  merchandising 
C)  facilitating 
D)  implementation 
E)  transactional

Question 11

Order cycle time is

Accepted Answer

A)  the time between when an order is placed and when payment is received. 
B)  the time between the sale of the first production batch to the sale of the next production batch. 
C)  the cycle between one full warehouse shipment to the next full warehouse shipment. 
D)  the time between the ordering of an item and when it is received and ready for use or sale. 
E)  the average time between reorders by a given wholesaler or retailer in the marketing channel. 
A)  the time between when an order is placed and when payment is received. 
B)  the time between the sale of the first production batch to the sale of the next production batch. 
C)  the cycle between one full warehouse shipment to the next full warehouse shipment. 
D)  the time between the ordering of an item and when it is received and ready for use or sale. 
E)  the average time between reorders by a given wholesaler or retailer in the marketing channel.

Question 12

Logistics management 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 integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to ultimate consumers. 
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)  systems that are designed to reduce a retailer's lead time for receiving merchandise, which then lowers a retailer's inventory investment, improves customer service levels, and reduces logistics expense. 
E)  proprietary computer and telecommunication technologies used to exchange digital invoices, payments, and information among suppliers, manufacturers, wholesalers, and retailers. 
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 integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to ultimate consumers. 
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)  systems that are designed to reduce a retailer's lead time for receiving merchandise, which then lowers a retailer's inventory investment, improves customer service levels, and reduces logistics expense. 
E)  proprietary computer and telecommunication technologies used to exchange digital invoices, payments, and information among suppliers, manufacturers, wholesalers, and retailers.

Question 13

The type of vertical marketing system that achieves coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership is referred to as

Accepted Answer

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

Question 14

Within the context of a supply chain, ________ is the ability of a logistics system to satisfy users in terms of time, dependability, communication, and convenience.

Accepted Answer

A)  quick response 
B)  customer service 
C)  distribution management 
D)  efficient consumer response 
E)  lead time 
A)  quick response 
B)  customer service 
C)  distribution management 
D)  efficient consumer response 
E)  lead time

Question 15

Figure 15-2
-Intermediaries perform three basic functions. In Figure 15-2 above, C represents ________ function.

Accepted Answer

A)  a middleman 
B)  a logistical 
C)  a facilitating 
D)  an operational 
E)  a transactional 
A)  a middleman 
B)  a logistical 
C)  a facilitating 
D)  an operational 
E)  a transactional

Question 16

Multichannel marketing facilitates ________, which means consumers shop online and then return unwanted merchandise to a nearby store.

Accepted Answer

A)  showrooming 
B)  bait and switch 
C)  BOPUS 
D)  price shopping 
E)  BORIS 
A)  showrooming 
B)  bait and switch 
C)  BOPUS 
D)  price shopping 
E)  BORIS

Question 17

Vertical integration can lead to legal prosecution if

Accepted Answer

A)  there is potential to lessen competition or create a monopoly. 
B)  mergers create too much competition. 
C)  a corporate vertical system attempts to become a contractual vertical marketing system. 
D)  an administered vertical system attempts to become a corporate vertical marketing system. 
E)  one member of the channel attempts to take the position of channel captain away from another. 
A)  there is potential to lessen competition or create a monopoly. 
B)  mergers create too much competition. 
C)  a corporate vertical system attempts to become a contractual vertical marketing system. 
D)  an administered vertical system attempts to become a corporate vertical marketing system. 
E)  one member of the channel attempts to take the position of channel captain away from another.

Question 18

IGA and Ben Franklin variety and craft stores are examples of

Accepted Answer

A)  service-sponsored retail systems. 
B)  wholesaler-sponsored voluntary chains. 
C)  retailer-sponsored cooperatives. 
D)  administered cooperative systems. 
E)  manufacturer-sponsored cooperatives. 
A)  service-sponsored retail systems. 
B)  wholesaler-sponsored voluntary chains. 
C)  retailer-sponsored cooperatives. 
D)  administered cooperative systems. 
E)  manufacturer-sponsored cooperatives.

Question 19

An industrial distributor is

Accepted Answer

A)  an intermediary that performs a variety of marketing channel functions involving selling, stocking, delivering a full product assortment, and financing. 
B)  an intermediary that maintains its own sales force and performs all channel functions. 
C)  an intermediary that deals exclusively with the selling, stocking, and delivery of raw materials used by manufacturers in the production of its products. 
D)  an intermediary that deals with a single product line within a single industry. 
E)  an intermediary that performs functions involving selling, stocking, and delivery of industrial goods but is unable to provide financing due to the normally large expenditures. 
A)  an intermediary that performs a variety of marketing channel functions involving selling, stocking, delivering a full product assortment, and financing. 
B)  an intermediary that maintains its own sales force and performs all channel functions. 
C)  an intermediary that deals exclusively with the selling, stocking, and delivery of raw materials used by manufacturers in the production of its products. 
D)  an intermediary that deals with a single product line within a single industry. 
E)  an intermediary that performs functions involving selling, stocking, and delivery of industrial goods but is unable to provide financing due to the normally large expenditures.

Question 20

Which of these best describes the goal for a firm's inventory and transportation costs?

Accepted Answer

A)  Focus more on minimizing required inventory costs. 
B)  Focus more on minimizing required transportation costs. 
C)  Minimize the sum of inventory and transportation costs. 
D)  Maximize the difference between required inventory and transportation costs. 
E)  Set a level of transportation costs and minimize the required inventory costs. 
A)  Focus more on minimizing required inventory costs. 
B)  Focus more on minimizing required transportation costs. 
C)  Minimize the sum of inventory and transportation costs. 
D)  Maximize the difference between required inventory and transportation costs. 
E)  Set a level of transportation costs and minimize the required inventory costs.

Exam 15: Managing Marketing Channels and Supply Chains

Total logistics cost refers to

21st Century Fox is the name for Fox's broadcast/cable TV networks and TV/movie studios. Since most of the shows produced at its TV production unit and many of the movies made at its studio are only televised on its cable TV networks, 21st Century Fox is an example of

Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact are referred to as

A ________ can be compared to a pipeline through which water flows-making possible the flow of products and services from a producer, through intermediaries, to a buyer.

Dual distribution can violate the Sherman Act and the Clayton Act if the

There are three types of contractual vertical marketing systems. List the systems and provide a brief description of each.

Having a product or service where consumers want it is ________ utility.

When marketing channel members are engaged in assorting, storing, sorting, and transporting products and services, they are performing ________ functions.

Order cycle time is

Logistics management refers to

The type of vertical marketing system that achieves coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership is referred to as

Within the context of a supply chain, ________ is the ability of a logistics system to satisfy users in terms of time, dependability, communication, and convenience.

Figure 15-2 -Intermediaries perform three basic functions. In Figure 15-2 above, C represents ________ function.

Multichannel marketing facilitates ________, which means consumers shop online and then return unwanted merchandise to a nearby store.

Vertical integration can lead to legal prosecution if

IGA and Ben Franklin variety and craft stores are examples of

An industrial distributor is

Which of these best describes the goal for a firm's inventory and transportation costs?

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