Exam 5: Managing the Supply Chain

Agents and brokers are two types of primary channel institutions.

_____ are primarily used by retailers starting a new operation or format.

Solidarity in a channel exists when a high value is placed on the relationship between a supplier and retailer.

When all possible retailers are used in a trading area,the channel strategy is termed:

Marketing institutions are classified into two categories:

The more dependent the supplier is on the retailer,the less power the retailer has over the supplier.

Vertical marketing channels attempt to:

Gray marketing is when counterfeit merchandise flows through unauthorized channels.

One advantage of franchising is that the owner of a franchise must give up some freedom in making business decisions that the owner of a nonfranchised business would normally be allowed to make.

It is common for wholesaler-sponsored voluntary groups to offer the retailer both store site and location analysis as well as assistance in designing the store layout.

Identify the incorrect statement about the conventional marketing channel.

A _____ is defined as a set of institutions that moves goods from the point of production to the point of consumption.

When a manufacturer provides a retailer with a bonus if they exceed their expected sales of the manufacturer's products,the manufacturer is using its reward power.

Two-way communication is a pathway for resolving disputes which allows the channel relationship to continue.

Storing involves breaking down heterogeneous products into more homogenous groups.

Even if the channel is well-managed,there will always be some conflict between the channel members.

Profits sufficient for survival and growth would be difficult,if not impossible,to achieve if the retailer ignored the supply chain.

Facilitating institutions may best be described as specialists that:

Most channels operate without conflict.

The use of legitimate and coercive power tends to elicit conflict and destroy cooperation.