Question 1

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

Accepted Answer

A) Corporate vertical marketing systems combine successive stages of production and distribution under shared ownership with all links in the marketing chain sharing title to the goods. 
B) Corporate vertical marketing systems can incorporate both forward and backward integration. 
C) Corporate vertical marketing systems increase distribution costs. 
D) Corporate vertical marketing systems increase investment increases but decrease fixed costs. 
E) Corporate vertical marketing systems are only effective with low-end consumer products. 
A) Corporate vertical marketing systems combine successive stages of production and distribution under shared ownership with all links in the marketing chain sharing title to the goods. 
B) Corporate vertical marketing systems can incorporate both forward and backward integration. 
C) Corporate vertical marketing systems increase distribution costs. 
D) Corporate vertical marketing systems increase investment increases but decrease fixed costs. 
E) Corporate vertical marketing systems are only effective with low-end consumer products.

Question 2

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 3

In terms of distribution, when marketing channel members are engaged in buying, selling, and risk-taking, 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 4

The objective of information and logistics management in a customer-driven supply chain is to minimize logistics costs while

Accepted Answer

A) satisfying suppliers. 
B) maximizing profits. 
C) maximizing supply chain membership. 
D) delivering the appropriate level of customer service. 
E) maximizing supply chain inefficiency. 
A) satisfying suppliers. 
B) maximizing profits. 
C) maximizing supply chain membership. 
D) delivering the appropriate level of customer service. 
E) maximizing supply chain inefficiency.

Question 5

In choosing the appropriate marketing channel, a firm should consider the interests that buyers might want fulfilled. These interests fall into four broad categories: (1) information, (2) convenience, (3) variety, and (4) __________.

Accepted Answer

A) availability 
B) quality 
C) brand name recognition 
D) price 
E) pre- or postsale services 
A) availability 
B) quality 
C) brand name recognition 
D) price 
E) pre- or postsale services

Question 6

Often companies must choose between a responsive supply chain and an efficient supply chain. This decision is based on

Accepted Answer

A) the specific needs of customer segments. 
B) monetary considerations. 
C) supplier alternatives. 
D) the business mission. 
E) a lack of an appropriate channel captain. 
A) the specific needs of customer segments. 
B) monetary considerations. 
C) supplier alternatives. 
D) the business mission. 
E) a lack of an appropriate channel captain.

Question 7

Dependability is the consistency of replenishment. This is important to all firms in a supply chain and to consumers. It can be broken into three elements: safe delivery, complete delivery, and

Accepted Answer

A) honest and accurate pricing. 
B) quality products. 
C) consistent lead time. 
D) a well-informed delivery staff. 
E) product warranties. 
A) honest and accurate pricing. 
B) quality products. 
C) consistent lead time. 
D) a well-informed delivery staff. 
E) product warranties.

Question 8

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 9

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 10

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 11

Amazon uses supply chain and logistics management to

Accepted Answer

A) make sure that it maintains the authority that comes with being the channel captain. 
B) avoid having to use quick response replenishment. 
C) lessen the amount of communication that is necessary between it and its suppliers. 
D) manage the flow of products from its suppliers to its distribution centers. 
E) implement its market divestment strategies. 
A) make sure that it maintains the authority that comes with being the channel captain. 
B) avoid having to use quick response replenishment. 
C) lessen the amount of communication that is necessary between it and its suppliers. 
D) manage the flow of products from its suppliers to its distribution centers. 
E) implement its market divestment strategies.

Question 12

Your best friend just bought a longboard at BC Surf & Sport. In terms of the marketing channel, BC Surf & Sport is

Accepted Answer

A) an ultimate consumer. 
B) a manufacturer. 
C) a wholesaler. 
D) a retailer. 
E) a distributor. 
A) an ultimate consumer. 
B) a manufacturer. 
C) a wholesaler. 
D) a retailer. 
E) a distributor.

Question 13

A level of distribution density whereby a firm tries to place its products in a few retail outlets in a specific geographical area is referred to as

Accepted Answer

A) intensive distribution. 
B) extensive distribution. 
C) selective distribution. 
D) exclusive distribution. 
E) concentrated distribution. 
A) intensive distribution. 
B) extensive distribution. 
C) selective distribution. 
D) exclusive distribution. 
E) concentrated distribution.

Question 14

In some instances, firms pair multiple channels with a multibrand strategy. The purpose of this strategy is to __________ of the firm's family brand and differentiate its marketing channels.

Accepted Answer

A) create greater perceived value 
B) maximize channel profits 
C) minimize cannibalization 
D) generate awareness 
E) create a "backup" channel 
A) create greater perceived value 
B) maximize channel profits 
C) minimize cannibalization 
D) generate awareness 
E) create a "backup" channel

Question 15

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 16

The various firms involved in performing the activities required to create and deliver a product or service to ultimate consumers or industrial users are referred to as

Accepted Answer

A) strategic distribution. 
B) distribution management. 
C) a supply chain. 
D) value chain optimization. 
E) logistics. 
A) strategic distribution. 
B) distribution management. 
C) a supply chain. 
D) value chain optimization. 
E) logistics.

Question 17

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 18

Johnson Controls can receive an order for automobile seats from Ford and deliver the order four hours later, beginning with raw materials and ending with delivery of the finished seats to Ford. As used by Johnson Controls, logistics

Accepted Answer

A) creates utilities for Ford. 
B) provides Ford with a cost-effective dual distribution system. 
C) increases the number of steps in the value proposition creation process. 
D) includes the role of Johnson Controls as a channel captain. 
E) does not influence Ford's supply chain. 
A) creates utilities for Ford. 
B) provides Ford with a cost-effective dual distribution system. 
C) increases the number of steps in the value proposition creation process. 
D) includes the role of Johnson Controls as a channel captain. 
E) does not influence Ford's supply chain.

Question 19

An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product is referred to as

Accepted Answer

A) a strategic channel alliance. 
B) multiple level selling. 
C) parallel distribution. 
D) dual distribution. 
E) recursive distribution. 
A) a strategic channel alliance. 
B) multiple level selling. 
C) parallel distribution. 
D) dual distribution. 
E) recursive distribution.

Question 20

There are three degrees of distribution density-one of these is intensive distribution. What is the extreme opposite of this degree of distribution density?

Accepted Answer

A) exhaustive distribution 
B) thorough distribution 
C) selective distribution 
D) concentrated distribution 
E) exclusive distribution 
A) exhaustive distribution 
B) thorough distribution 
C) selective distribution 
D) concentrated distribution 
E) exclusive distribution

Exam 15: Managing Marketing Channels and Supply Chains

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

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

In terms of distribution, when marketing channel members are engaged in buying, selling, and risk-taking, they are performing __________ functions.

The objective of information and logistics management in a customer-driven supply chain is to minimize logistics costs while

In choosing the appropriate marketing channel, a firm should consider the interests that buyers might want fulfilled. These interests fall into four broad categories: (1) information, (2) convenience, (3) variety, and (4) __________.

Often companies must choose between a responsive supply chain and an efficient supply chain. This decision is based on

Dependability is the consistency of replenishment. This is important to all firms in a supply chain and to consumers. It can be broken into three elements: safe delivery, complete delivery, and

IGA and Ben Franklin variety and craft stores are examples of

Vertical integration can lead to legal prosecution if

Amazon uses supply chain and logistics management to

Your best friend just bought a longboard at BC Surf & Sport. In terms of the marketing channel, BC Surf & Sport is

A level of distribution density whereby a firm tries to place its products in a few retail outlets in a specific geographical area is referred to as

In some instances, firms pair multiple channels with a multibrand strategy. The purpose of this strategy is to __________ of the firm's family brand and differentiate its marketing channels.

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

The various firms involved in performing the activities required to create and deliver a product or service to ultimate consumers or industrial users are referred to as

An administered vertical marketing system is a marketing system

Johnson Controls can receive an order for automobile seats from Ford and deliver the order four hours later, beginning with raw materials and ending with delivery of the finished seats to Ford. As used by Johnson Controls, logistics

An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product is referred to as

There are three degrees of distribution density-one of these is intensive distribution. What is the extreme opposite of this degree of distribution density?

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

Financial Aspects of Marketing

Building an Effective Marketing Plan

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