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

All of the following are buyer requirements for choosing a marketing channel except which?

Accepted Answer

A) pre- or postsale services 
B) convenience 
C) variety 
D) ownership 
E) information 
A) pre- or postsale services 
B) convenience 
C) variety 
D) ownership 
E) information

Question 3

The ________ and the Justice Department monitor channel practices that restrain competition,create monopolies,or otherwise represent unfair methods of competition under the provisions of the Clayton Act or the Sherman Act.

Accepted Answer

A) Consumer Product Safety Commission 
B) Better Business Bureau 
C) Federal Trade Commission 
D) American Marketing Association 
E) Department of Commerce 
A) Consumer Product Safety Commission 
B) Better Business Bureau 
C) Federal Trade Commission 
D) American Marketing Association 
E) Department of Commerce

Question 4

Saks Fifth Avenue employs a quick response system to order fast-moving fashion items.Saks Fifth Avenue's point-of-sale scanner records each day's sales.When stock falls below a minimum level,a replenishment order is automatically sent.Vendors such as Donna Karan (DKNY)receive the order,which is processed and delivered within 48 hours.This system has effectively reduced

Accepted Answer

A) dependability. 
B) product flow. 
C) replenishment time. 
D) supply lag. 
E) logistical lag. 
A) dependability. 
B) product flow. 
C) replenishment time. 
D) supply lag. 
E) logistical lag.

Question 5

Which statement regarding efficient supply chains is most accurate?

Accepted Answer

A) Efficient supply chains often operate with relatively low inventory levels. 
B) Efficient supply chains use common platforms and common components across several products. 
C) Efficient supply chains rely on maintaining large geographically dispersed inventory warehouses. 
D) Efficient supply chains traditionally use expensive,but faster,modes of transportation. 
E) Efficient supply chains emphasize economies of scale by increasing the variety of system configurations offered. 
A) Efficient supply chains often operate with relatively low inventory levels. 
B) Efficient supply chains use common platforms and common components across several products. 
C) Efficient supply chains rely on maintaining large geographically dispersed inventory warehouses. 
D) Efficient supply chains traditionally use expensive,but faster,modes of transportation. 
E) Efficient supply chains emphasize economies of scale by increasing the variety of system configurations offered.

Question 6

IBM used its artificial intelligence supercomputer Watson to improve its own

Accepted Answer

A) logistical flow. 
B) demand chain. 
C) supplier-customer alliance. 
D) supply chain. 
E) supplier pipeline. 
A) logistical flow. 
B) demand chain. 
C) supplier-customer alliance. 
D) supply chain. 
E) supplier pipeline.

Question 7

A channel member (producer,wholesaler,or retailer)who coordinates,directs,and supports other channel members is referred to as a

Accepted Answer

A) channel champion. 
B) channel general. 
C) channel captain. 
D) channel director. 
E) channel coordinator. 
A) channel champion. 
B) channel general. 
C) channel captain. 
D) channel director. 
E) channel coordinator.

Question 8

A(n)________ 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.

Accepted Answer

A) oligopolistic practice 
B) monopolistic practice 
C) refusal to deal 
D) tying arrangement 
E) resale restriction 
A) oligopolistic practice 
B) monopolistic practice 
C) refusal to deal 
D) tying arrangement 
E) resale restriction

Question 9

Which of the following is an element of total logistics cost?

Accepted Answer

A) new-product development 
B) inventory 
C) advertising 
D) personal selling 
E) market research 
A) new-product development 
B) inventory 
C) advertising 
D) personal selling 
E) market research

Question 10

There are four types of franchising arrangements.List the arrangements and provide a brief description of each.

Accepted Answer

Franchising is a contractual arrangement

Question 11

When independent Goodyear tire dealers learned that Goodyear Tire Company decided to sell its brands through Sears,Walmart,and Sam's Club,many dealers switched to competing tire makers.This is an example of

Accepted Answer

A) corporate conflict. 
B) vertical conflict. 
C) horizontal conflict. 
D) administered conflict. 
E) contractual conflict. 
A) corporate conflict. 
B) vertical conflict. 
C) horizontal conflict. 
D) administered conflict. 
E) contractual conflict.

Question 12

Channel Sales and Profit Marketing Dashboard
  
-Charlesburg Furniture sells its furniture through furniture store chains,independent furniture stores,and department store chains,mostly in the southern United States.The company has traditionally allocated its marketing funds for cooperative advertising,in-store displays,and retail sales support on the basis of dollar sales by channel.According to the Marketing Dashboard above,it should consider

Accepted Answer

A) increasing the marketing budget for furniture store chains. 
B) focusing more selling efforts on department stores to increase the number of outlets. 
C) discontinue advertising for furniture store chains. 
D) allocating a larger proportion of its advertising budget to independent furniture stores. 
E) reducing distribution in independent furniture stores. 
A) increasing the marketing budget for furniture store chains. 
B) focusing more selling efforts on department stores to increase the number of outlets. 
C) discontinue advertising for furniture store chains. 
D) allocating a larger proportion of its advertising budget to independent furniture stores. 
E) reducing distribution in independent furniture stores.

Question 13

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) where 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) where 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 14

Resale restrictions exist if a supplier

Accepted Answer

A) requires a channel member to sell only its products. 
B) requires a channel member to finance all loans through the supplier's bank. 
C) attempts to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may be sold. 
D) attempts to sell used or pre-owned products as new. 
E) attempts to sell used products that have expired or will soon become obsolete without informing the buyer. 
A) requires a channel member to sell only its products. 
B) requires a channel member to finance all loans through the supplier's bank. 
C) attempts to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may be sold. 
D) attempts to sell used or pre-owned products as new. 
E) attempts to sell used products that have expired or will soon become obsolete without informing the buyer.

Question 15

Horizontal conflict refers to conflict that occurs between

Accepted Answer

A) two different levels in a marketing channel. 
B) members of upper management who make the marketing channel decisions and lower management who must implement these decisions. 
C) two producers of the same product vying for the same distribution channel members. 
D) two members in the same level of a marketing channel. 
E) a firm's and its customers' goals. 
A) two different levels in a marketing channel. 
B) members of upper management who make the marketing channel decisions and lower management who must implement these decisions. 
C) two producers of the same product vying for the same distribution channel members. 
D) two members in the same level of a marketing channel. 
E) a firm's and its customers' goals.

Question 16

Exclusive distribution refers to

Accepted Answer

A) the distribution of products or services in markets where there are currently no other competitors. 
B) the distribution of products or services where the producer owns the entire channel of distribution. 
C) the density of distribution whereby a firm tries to place its products or services with only one retail outlet in a specified geographical area. 
D) the density of distribution whereby a firm tries to place its products or services in as many outlets as possible. 
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 distribution of products or services in markets where there are currently no other competitors. 
B) the distribution of products or services where the producer owns the entire channel of distribution. 
C) the density of distribution whereby a firm tries to place its products or services with only one retail outlet in a specified geographical area. 
D) the density of distribution whereby a firm tries to place its products or services in as many outlets as possible. 
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 17

Which of the following statements regarding corporate vertical marketing systems is most accurate?

Accepted Answer

A) Corporate vertical marketing systems can use either forward integration or backward integration but not both. 
B) Corporate vertical marketing systems increase distribution costs. 
C) Corporate vertical marketing systems increase investment but decrease fixed costs. 
D) Corporate vertical marketing systems are only effective with low-end consumer products. 
E) Corporate vertical marketing systems offer more control over supply sources or resale of products. 
A) Corporate vertical marketing systems can use either forward integration or backward integration but not both. 
B) Corporate vertical marketing systems increase distribution costs. 
C) Corporate vertical marketing systems increase investment but decrease fixed costs. 
D) Corporate vertical marketing systems are only effective with low-end consumer products. 
E) Corporate vertical marketing systems offer more control over supply sources or resale of products.

Question 18

Figure 15-10
  
-Figure 15-10 above indicates that supply chain managers must balance total logistics cost factors against customer service factors.The four customer service factors (W,X,Y,and Z)include all of the following except which?

Accepted Answer

A) communication 
B) dependability 
C) convenience 
D) warehousing 
E) time 
A) communication 
B) dependability 
C) convenience 
D) warehousing 
E) time

Question 19

Any intermediary with legal authority to act on behalf of the manufacturer is referred to as a(n)

Accepted Answer

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

Question 20

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.

Exam 15: Managing Marketing Channels and Supply Chains

Risk taking as a transactional function refers to

All of the following are buyer requirements for choosing a marketing channel except which?

The ________ and the Justice Department monitor channel practices that restrain competition,create monopolies,or otherwise represent unfair methods of competition under the provisions of the Clayton Act or the Sherman Act.

Which statement regarding efficient supply chains is most accurate?

IBM used its artificial intelligence supercomputer Watson to improve its own

A channel member (producer,wholesaler,or retailer)who coordinates,directs,and supports other channel members is referred to as a

A(n)________ 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.

Which of the following is an element of total logistics cost?

There are four types of franchising arrangements.List the arrangements and provide a brief description of each.

When independent Goodyear tire dealers learned that Goodyear Tire Company decided to sell its brands through Sears,Walmart,and Sam's Club,many dealers switched to competing tire makers.This is an example of

An administered vertical marketing system is a marketing system

Resale restrictions exist if a supplier

Horizontal conflict refers to conflict that occurs between

Exclusive distribution refers to

Which of the following statements regarding corporate vertical marketing systems is most accurate?

Figure 15-10 -Figure 15-10 above indicates that supply chain managers must balance total logistics cost factors against customer service factors.The four customer service factors (W,X,Y,and Z)include all of the following except which?

Any intermediary with legal authority to act on behalf of the manufacturer is referred to as a(n)

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

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 Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Writing Successful Marketing and Business Plans: Tips and Guidelines

Financial Statements and Ratios

Filters