Question 1

A middleman is

Accepted Answer

A)  a person or firm whose sole responsibility is bringing a buyer to the last link in the distribution chain. 
B)  a person or firm whose sole responsibility is to find distributors for a manufacturer's products. 
C)  any intermediary between a manufacturer and end-user markets. 
D)  a person or firm that takes possession of a product and in some way alters it before passing it on to ultimate consumers. 
E)  an intermediary that sells to ultimate consumers. 
A)  a person or firm whose sole responsibility is bringing a buyer to the last link in the distribution chain. 
B)  a person or firm whose sole responsibility is to find distributors for a manufacturer's products. 
C)  any intermediary between a manufacturer and end-user markets. 
D)  a person or firm that takes possession of a product and in some way alters it before passing it on to ultimate consumers. 
E)  an intermediary that sells to ultimate consumers.

Question 2

Channel conflict refers to

Accepted Answer

A)  disagreements over the trade discounts allotted to each level of the distribution chain by the Federal Trade Commission. 
B)  regulatory restrictions limiting the number of distributors that can sell a producer's products. 
C)  situations in which one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals. 
D)  situations in which one distributor carries two competing brands. 
E)  situations in which the producer does not' allow other channel members to have input regarding product specifications or benefits. 
A)  disagreements over the trade discounts allotted to each level of the distribution chain by the Federal Trade Commission. 
B)  regulatory restrictions limiting the number of distributors that can sell a producer's products. 
C)  situations in which one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals. 
D)  situations in which one distributor carries two competing brands. 
E)  situations in which the producer does not' allow other channel members to have input regarding product specifications or benefits.

Question 3

Tiffany & Co. manufactures about half of the fine jewelry items for sale in its stores and boutiques worldwide. Tiffany & Co. practices

Accepted Answer

A)  backward integration. 
B)  forward integration. 
C)  vertical integration. 
D)  joint venturing. 
E)  horizontal integration. 
A)  backward integration. 
B)  forward integration. 
C)  vertical integration. 
D)  joint venturing. 
E)  horizontal integration.

Question 4

Any intermediary with legal authority to act on behalf of the manufacturer but that does not take title to products is referred to as

Accepted Answer

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

Question 5

Franchising is one form of

Accepted Answer

A)  a corporate vertical marketing system. 
B)  a horizontal marketing system. 
C)  an administered vertical marketing system. 
D)  a wholesaler-sponsored voluntary system. 
E)  a contractual vertical marketing system. 
A)  a corporate vertical marketing system. 
B)  a horizontal marketing system. 
C)  an administered vertical marketing system. 
D)  a wholesaler-sponsored voluntary system. 
E)  a contractual vertical marketing system.

Question 6

List and define the three major types of vertical marketing systems.

Accepted Answer

A vertical marketing system is a profess

Question 7

Which of these types of vertical marketing systems is least likely to experience channel conflict?

Accepted Answer

A)  corporate vertical marketing system 
B)  wholesaler-sponsored voluntary chain 
C)  retailer-sponsored cooperative 
D)  franchise system 
E)  administered vertical marketing system 
A)  corporate vertical marketing system 
B)  wholesaler-sponsored voluntary chain 
C)  retailer-sponsored cooperative 
D)  franchise system 
E)  administered vertical marketing system

Question 8

What is a channel captain? What is its function and how does it accomplish this?

Accepted Answer

Because channels consist of independent

Question 9

Manufacturers most likely would use exclusive distribution for which of these products?

Accepted Answer

A)  Timex watches, Hanes underwear, and Nike shoes 
B)  Chanel perfume, Steinway pianos, and Baccarat crystal 
C)  Oreos, Teddy Grahams, and Nilla Wafers 
D)  paper clips, light bulbs, and file folders 
E)  Stouffer's meals, Breyer's Ice Cream, and Coca-Cola 
A)  Timex watches, Hanes underwear, and Nike shoes 
B)  Chanel perfume, Steinway pianos, and Baccarat crystal 
C)  Oreos, Teddy Grahams, and Nilla Wafers 
D)  paper clips, light bulbs, and file folders 
E)  Stouffer's meals, Breyer's Ice Cream, and Coca-Cola

Question 10

Briefly explain the differences between supply chain management and a marketing channel.

Accepted Answer

Supply chain management is the integrati

Question 11

Selective distribution is

Accepted Answer

A)  the density of distribution whereby a firm tries to place its products or services in as many outlets as possible. 
B)  the distribution of products or services in markets where there are currently no other competitors. 
C)  the distribution of products or services where the producer owns the entire channel of distribution. 
D)  the density of distribution whereby a firm tries to place its products or services with only one retail outlet in a specified geographical area. 
E)  the density of distribution whereby a firm tries to place its products or services in a few retail outlets in a specific area. 
A)  the density of distribution whereby a firm tries to place its products or services in as many outlets as possible. 
B)  the distribution of products or services in markets where there are currently no other competitors. 
C)  the distribution of products or services where the producer owns the entire channel of distribution. 
D)  the density of distribution whereby a firm tries to place its products or services with only one retail outlet in a specified geographical area. 
E)  the density of distribution whereby a firm tries to place its products or services in a few retail outlets in a specific area.

Question 12

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 sell is referred to as

Accepted Answer

A)  full-line forcing. 
B)  exclusive dealing. 
C)  a refusal to deal. 
D)  a resale restriction. 
E)  a tying arrangement. 
A)  full-line forcing. 
B)  exclusive dealing. 
C)  a refusal to deal. 
D)  a resale restriction. 
E)  a tying arrangement.

Question 13

Walmart is a channel captain because of its strong image, number of outlets, and purchasing volume. The source of Walmart's power is its

Accepted Answer

A)  economic influence. 
B)  expertise. 
C)  identification with a particular channel member. 
D)  legitimate rights through contracts. 
E)  political connections. 
A)  economic influence. 
B)  expertise. 
C)  identification with a particular channel member. 
D)  legitimate rights through contracts. 
E)  political connections.

Question 14

When you order a sweater from an L.L.Bean mail-order catalog, what type of marketing channel are you and the company using?

Accepted Answer

A)  cash and carry marketing channel 
B)  intensive distribution channel 
C)  selective distribution channel 
D)  indirect marketing channel 
E)  direct to consumer marketing channel 
A)  cash and carry marketing channel 
B)  intensive distribution channel 
C)  selective distribution channel 
D)  indirect marketing channel 
E)  direct to consumer marketing channel

Question 15

Multichannel marketing

Accepted Answer

A)  creates greater elasticity of demand for its products. 
B)  can leverage the value-adding capabilities of different channels. 
C)  creates greater inelasticity of demand for its product. 
D)  allows firms to legally circumvent paying taxes on revenue generated by online sales. 
E)  allow customers to avoid shipping and handling charges. 
A)  creates greater elasticity of demand for its products. 
B)  can leverage the value-adding capabilities of different channels. 
C)  creates greater inelasticity of demand for its product. 
D)  allows firms to legally circumvent paying taxes on revenue generated by online sales. 
E)  allow customers to avoid shipping and handling charges.

Question 16

A direct to consumer marketing channel refers to

Accepted Answer

A)  the distribution of products and services directly from the manufacturer's production site to end users. 
B)  the traditional chain of distribution from manufacturer to retailer to consumer. 
C)  the use of agents that represent a single producer and are responsible for the entire marketing function of that producer. 
D)  a method of distribution that allows consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson. 
E)  a method of distribution that allows consumers to buy products through direct personal interaction with the manufacturer's representatives in order to provide more personalized service. 
A)  the distribution of products and services directly from the manufacturer's production site to end users. 
B)  the traditional chain of distribution from manufacturer to retailer to consumer. 
C)  the use of agents that represent a single producer and are responsible for the entire marketing function of that producer. 
D)  a method of distribution that allows consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson. 
E)  a method of distribution that allows consumers to buy products through direct personal interaction with the manufacturer's representatives in order to provide more personalized service.

Question 17

Customers currently link to Cisco's website to configure, price, and order its networking equipment. Cisco then sends orders back out across the Internet to producers and assemblers including Celestica, Flextronics, Jabil, and Solectron. Products are built and tested to Cisco's standards, sometimes with procedures run remotely by Cisco. Most items are then drop-shipped to buyers, untouched by Cisco's employees. This is a description of Cisco's

Accepted Answer

A)  virtual logistics. 
B)  supply chain. 
C)  electronic data interchange. 
D)  strategic information alliance. 
E)  product-specific delivery system. 
A)  virtual logistics. 
B)  supply chain. 
C)  electronic data interchange. 
D)  strategic information alliance. 
E)  product-specific delivery system.

Question 18

What are the three questions marketing executives consider when choosing a marketing channel and intermediaries?

Accepted Answer

Marketing executives typically consider

Question 19

The Schwan's Company of Marshall, Minnesota, the largest direct-to-home provider of foods in the United States, uses route sales representatives who sell to consumers from refrigerated trucks. This particular method of distribution is referred to as

Accepted Answer

A)  an indirect channel. 
B)  a direct channel. 
C)  a facilitated channel. 
D)  a customer-service channel. 
E)  a truck-jobber channel. 
A)  an indirect channel. 
B)  a direct channel. 
C)  a facilitated channel. 
D)  a customer-service channel. 
E)  a truck-jobber channel.

Question 20

Disintermediation refers to channel conflict that arises when

Accepted Answer

A)  a channel member severs relationships with other channel members to work for or with a competing manufacturer. 
B)  channel conflicts are resolved by a third party. 
C)  a channel member bypasses another member and sells or buys products directly. 
D)  channel conflicts are resolved through a binding arbitration from a panel of representatives from all channel members involved. 
E)  the entire distribution chain is eliminated, when a company sets up its own wholesaler and retailer network. 
A)  a channel member severs relationships with other channel members to work for or with a competing manufacturer. 
B)  channel conflicts are resolved by a third party. 
C)  a channel member bypasses another member and sells or buys products directly. 
D)  channel conflicts are resolved through a binding arbitration from a panel of representatives from all channel members involved. 
E)  the entire distribution chain is eliminated, when a company sets up its own wholesaler and retailer network.

Exam 15: Managing Marketing Channels and Supply Chains

A middleman is

Channel conflict refers to

Tiffany & Co. manufactures about half of the fine jewelry items for sale in its stores and boutiques worldwide. Tiffany & Co. practices

Any intermediary with legal authority to act on behalf of the manufacturer but that does not take title to products is referred to as

Franchising is one form of

List and define the three major types of vertical marketing systems.

Which of these types of vertical marketing systems is least likely to experience channel conflict?

What is a channel captain? What is its function and how does it accomplish this?

Manufacturers most likely would use exclusive distribution for which of these products?

Briefly explain the differences between supply chain management and a marketing channel.

Selective distribution is

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 sell is referred to as

Walmart is a channel captain because of its strong image, number of outlets, and purchasing volume. The source of Walmart's power is its

When you order a sweater from an L.L.Bean mail-order catalog, what type of marketing channel are you and the company using?

Multichannel marketing

A direct to consumer marketing channel refers to

What are the three questions marketing executives consider when choosing a marketing channel and intermediaries?

The Schwan's Company of Marshall, Minnesota, the largest direct-to-home provider of foods in the United States, uses route sales representatives who sell to consumers from refrigerated trucks. This particular method of distribution is referred to as

Disintermediation refers to channel conflict that arises when

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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