Question 1

Vertical marketing channels are typically classified into the following three categories:

Accepted Answer

A)  contractual, administered, and corporate. 
B)  cooperatives, owned, and voluntary. 
C)  wholesaler-sponsored, retailer-sponsored, and franchised. 
D)  vertical, horizontal, and interfaced. 
E)  facilitating, primary, and conventional. 
A)  contractual, administered, and corporate. 
B)  cooperatives, owned, and voluntary. 
C)  wholesaler-sponsored, retailer-sponsored, and franchised. 
D)  vertical, horizontal, and interfaced. 
E)  facilitating, primary, and conventional.

Question 2

Explain the key differences between a conventional marketing channel and a vertical marketing system.

Accepted Answer

A conventional marketing channel is one

Question 3

The major difference between primary marketing institutions and facilitating marketing institutions is that facilitating members:

Accepted Answer

A)  do not take title to the goods. 
B)  are paid only a percentage of profits made. 
C)  take title to the goods. 
D)  perform all eight functions in all channels situations. 
E)  are always paid by the manufacturer. 
A)  do not take title to the goods. 
B)  are paid only a percentage of profits made. 
C)  take title to the goods. 
D)  perform all eight functions in all channels situations. 
E)  are always paid by the manufacturer.

Question 4

In a conventional marketing channel,every member seeks to maximize its own performance,and has little or no concern for the overall performance of the total supply chain.

Accepted Answer

A) True 
 B)False

Question 5

Mutual trust occurs when both the retailer and its supplier have faith that each will be truthful and fair in their dealings with each other.

Accepted Answer

A) True 
 B)False

Question 6

Power is the ability of one channel member to influence the decisions of the other channel members.

Accepted Answer

A) True 
 B)False

Question 7

_____ involves breaking down heterogeneous materials or product into more homogenous groups.

Accepted Answer

A)  Organizing 
B)  Classifying 
C)  Synthesizing 
D)  Sorting 
E)  Grouping 
A)  Organizing 
B)  Classifying 
C)  Synthesizing 
D)  Sorting 
E)  Grouping

Question 8

Consider the retailer's role as a member of a larger supply chain.Why should the retailer view itself as part of this larger channel?

Accepted Answer

In reality,it is the retailer's supply c

Question 9

Prior to pulling its products out of Target,Tupperware made its products available in the giant retailer's stores.Independent Tupperware sales representatives complained that this had a "detrimental effect" on Tupperware parties.This was an example of:

Accepted Answer

A)  perceptual incongruity. 
B)  domain disagreements. 
C)  goal incompatibility. 
D)  gray marketing. 
E)  dual distribution. 
A)  perceptual incongruity. 
B)  domain disagreements. 
C)  goal incompatibility. 
D)  gray marketing. 
E)  dual distribution.

Question 10

Perceptual incongruity occurs when achieving the goals of either the supplier or the retailer would hamper the performance of the other.

Accepted Answer

A) True 
 B)False

Question 11

Although there are exceptions,as a general rule _____ distribution is associated with _____ goods.

Accepted Answer

A)  intensive; shopping 
B)  selective; convenience 
C)  selective; specialty 
D)  exclusive; shopping 
E)  exclusive; specialty 
A)  intensive; shopping 
B)  selective; convenience 
C)  selective; specialty 
D)  exclusive; shopping 
E)  exclusive; specialty

Question 12

_____ occur when there is a disagreement about which member of the marketing channel should make decisions.

Accepted Answer

A)  Perceptual incongruity 
B)  Domain disagreements 
C)  Goal incompatibility 
D)  Gray marketing 
E)  Dual distribution 
A)  Perceptual incongruity 
B)  Domain disagreements 
C)  Goal incompatibility 
D)  Gray marketing 
E)  Dual distribution

Question 13

The goal of every channel member should be to "minimize the suboptimization" of the supply chain.

Accepted Answer

A) True 
 B)False

Question 14

A franchise is a form of a vertical marketing channel.

Accepted Answer

A) True 
 B)False

Question 15

_____ exists when a high value is placed on the relationship between a supplier and retailer.

Accepted Answer

A)  Mutual trust 
B)  Two-way communication 
C)  Solidarity 
D)  Category management 
E)  Gray marketing 
A)  Mutual trust 
B)  Two-way communication 
C)  Solidarity 
D)  Category management 
E)  Gray marketing

Question 16

A public warehouse is a facility that stores goods for safekeeping for any owner in return for a fee,usually based upon the dollar value of merchandise stored.

Accepted Answer

A) True 
 B)False

Question 17

_____ occurs when the retailer and supplier have different perceptions of reality.

Accepted Answer

A)  Perceptual incongruity 
B)  Domain disagreements 
C)  Goal incompatibility 
D)  Gray marketing 
E)  Dual distribution 
A)  Perceptual incongruity 
B)  Domain disagreements 
C)  Goal incompatibility 
D)  Gray marketing 
E)  Dual distribution

Question 18

Usually high-prestige branded products that the consumer expressly seeks out,such as Rolex watches,are known as:

Accepted Answer

A)  shopping goods. 
B)  industrial goods. 
C)  convenience goods. 
D)  raw materials. 
E)  specialty goods. 
A)  shopping goods. 
B)  industrial goods. 
C)  convenience goods. 
D)  raw materials. 
E)  specialty goods.

Question 19

_____ is power derived from one channel member's desire to identify with their channel partner.

Accepted Answer

A)  Reward power 
B)  Expertise power 
C)  Legitimate power 
D)  Referent power 
E)  Coercive power 
A)  Reward power 
B)  Expertise power 
C)  Legitimate power 
D)  Referent power 
E)  Coercive power

Question 20

Sylvan Learning,The UPS Store,AAMCO Transmissions,H&R Block,and Lawn Doctor are examples of what kind of vertical marketing channel?

Accepted Answer

A)  Wholesaler-sponsored voluntary group 
B)  Contractual channel system 
C)  Administered system 
D)  Retailer-owned cooperative 
E)  Conventional marketing system 
A)  Wholesaler-sponsored voluntary group 
B)  Contractual channel system 
C)  Administered system 
D)  Retailer-owned cooperative 
E)  Conventional marketing system

Vertical marketing channels are typically classified into the following three categories:

Explain the key differences between a conventional marketing channel and a vertical marketing system.

The major difference between primary marketing institutions and facilitating marketing institutions is that facilitating members:

In a conventional marketing channel,every member seeks to maximize its own performance,and has little or no concern for the overall performance of the total supply chain.

Mutual trust occurs when both the retailer and its supplier have faith that each will be truthful and fair in their dealings with each other.

Power is the ability of one channel member to influence the decisions of the other channel members.

_____ involves breaking down heterogeneous materials or product into more homogenous groups.

Consider the retailer's role as a member of a larger supply chain.Why should the retailer view itself as part of this larger channel?

Prior to pulling its products out of Target,Tupperware made its products available in the giant retailer's stores.Independent Tupperware sales representatives complained that this had a "detrimental effect" on Tupperware parties.This was an example of:

Perceptual incongruity occurs when achieving the goals of either the supplier or the retailer would hamper the performance of the other.

Although there are exceptions,as a general rule _ distribution is associated with _ goods.

_____ occur when there is a disagreement about which member of the marketing channel should make decisions.

The goal of every channel member should be to "minimize the suboptimization" of the supply chain.

A franchise is a form of a vertical marketing channel.

_____ exists when a high value is placed on the relationship between a supplier and retailer.

A public warehouse is a facility that stores goods for safekeeping for any owner in return for a fee,usually based upon the dollar value of merchandise stored.

_____ occurs when the retailer and supplier have different perceptions of reality.

Usually high-prestige branded products that the consumer expressly seeks out,such as Rolex watches,are known as:

_____ is power derived from one channel member's desire to identify with their channel partner.

Sylvan Learning,The UPS Store,AAMCO Transmissions,H&R Block,and Lawn Doctor are examples of what kind of vertical marketing channel?

Perspectives on Retailing

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Legal and Ethical Behavior

Market Selection and Retail Location Analysis

Managing a Retailer’s Finances

Merchandise Buying and Handling

Merchandise Pricing

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters

Exam 5: Managing the Supply Chain

Vertical marketing channels are typically classified into the following three categories:

Explain the key differences between a conventional marketing channel and a vertical marketing system.

The major difference between primary marketing institutions and facilitating marketing institutions is that facilitating members:

In a conventional marketing channel,every member seeks to maximize its own performance,and has little or no concern for the overall performance of the total supply chain.

Mutual trust occurs when both the retailer and its supplier have faith that each will be truthful and fair in their dealings with each other.

Power is the ability of one channel member to influence the decisions of the other channel members.

_____ involves breaking down heterogeneous materials or product into more homogenous groups.

Consider the retailer's role as a member of a larger supply chain.Why should the retailer view itself as part of this larger channel?

Prior to pulling its products out of Target,Tupperware made its products available in the giant retailer's stores.Independent Tupperware sales representatives complained that this had a "detrimental effect" on Tupperware parties.This was an example of:

Perceptual incongruity occurs when achieving the goals of either the supplier or the retailer would hamper the performance of the other.

Although there are exceptions,as a general rule _____ distribution is associated with _____ goods.

_____ occur when there is a disagreement about which member of the marketing channel should make decisions.

The goal of every channel member should be to "minimize the suboptimization" of the supply chain.

A franchise is a form of a vertical marketing channel.

_____ exists when a high value is placed on the relationship between a supplier and retailer.

A public warehouse is a facility that stores goods for safekeeping for any owner in return for a fee,usually based upon the dollar value of merchandise stored.

_____ occurs when the retailer and supplier have different perceptions of reality.

Usually high-prestige branded products that the consumer expressly seeks out,such as Rolex watches,are known as:

_____ is power derived from one channel member's desire to identify with their channel partner.

Sylvan Learning,The UPS Store,AAMCO Transmissions,H&R Block,and Lawn Doctor are examples of what kind of vertical marketing channel?

Perspectives on Retailing

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Legal and Ethical Behavior

Market Selection and Retail Location Analysis

Managing a Retailer’s Finances

Merchandise Buying and Handling

Merchandise Pricing

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters

Although there are exceptions,as a general rule _ distribution is associated with _ goods.