Question 1

The two types of channel conflict are

Accepted Answer

A) wholesaler and retailer. 
B) horizontal and vertical. 
C) transactional and promotional. 
D) external and internal. 
E) producer and consumer. 
A) wholesaler and retailer. 
B) horizontal and vertical. 
C) transactional and promotional. 
D) external and internal. 
E) producer and consumer.

Question 2

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.

Question 3

In some countries, the packaging of the well-known Cheerios brand of cereal carries the Nestlé name rather than the familiar General Mills brand name. Explain the channel that is being used and the importance of Cereal Partners Worldwide (CPW).

Accepted Answer

CPW is a strategic channel alliance desi

Question 4

The distribution intensity associated with products such as Dell's personal computers is referred to as

Accepted Answer

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

Question 5

There are four popular types of franchising: (1) manufacturer-sponsored retail franchise systems, (2) __________, (3) service-sponsored retail franchise systems, and (4) service-sponsored franchise systems.

Accepted Answer

A) service-sponsored retail franchise systems 
B) manufacturer-sponsored wholesale franchise systems 
C) horizontal-marketing franchise systems 
D) contractual-sponsored franchise systems 
E) customer-oriented franchise systems 
A) service-sponsored retail franchise systems 
B) manufacturer-sponsored wholesale franchise systems 
C) horizontal-marketing franchise systems 
D) contractual-sponsored franchise systems 
E) customer-oriented franchise systems

Question 6

An intermediary that sells to consumers is referred to as

Accepted Answer

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

Question 7

Because its customers desire rapid delivery and a wide variety of customizable products, Dell made a conscious decision to use __________ supply chain to meet these requirements.

Accepted Answer

A) an integrated 
B) an efficient 
C) a harmonized 
D) a responsive 
E) a multitiered 
A) an integrated 
B) an efficient 
C) a harmonized 
D) a responsive 
E) a multitiered

Question 8

What specific decision areas are associated with the flow of goods and together make up total logistics cost?

Accepted Answer

Total logistics cost includes expenses a

Question 9

Dual distribution refers to

Accepted Answer

A) a level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products. 
B) an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. 
C) the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online. 
D) professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. 
E) a practice whereby one firm's marketing channel is used to sell another firm's products. 
A) a level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products. 
B) an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. 
C) the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online. 
D) professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. 
E) a practice whereby one firm's marketing channel is used to sell another firm's products.

Question 10

Which of the following 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 11

Which of the following would be a source of vertical conflict?

Accepted Answer

A) Foot Locker decides to open a retail outlet next to a Nike store in a shopping mall. 
B) A restaurant serves both Coke and Pepsi to its patrons. 
C) Ansible Technologies Ltd. sells its portable planetariums to both colleges and high schools. 
D) Microsoft provides HP laptops more prominent point-of-purchase locations in its retail stores than comparable laptops from Sony. 
E) Long John Silver's decides to serve grilled burgers in addition to seafood. 
A) Foot Locker decides to open a retail outlet next to a Nike store in a shopping mall. 
B) A restaurant serves both Coke and Pepsi to its patrons. 
C) Ansible Technologies Ltd. sells its portable planetariums to both colleges and high schools. 
D) Microsoft provides HP laptops more prominent point-of-purchase locations in its retail stores than comparable laptops from Sony. 
E) Long John Silver's decides to serve grilled burgers in addition to seafood.

Question 12

The __________ specifically prohibits exclusive dealing and tying arrangements when they lessen competition or create monopolies.

Accepted Answer

A) Sherman Act 
B) Robinson-Patman Act 
C) Federal Trade Commission Act 
D) Clayton Act 
E) Consumer Goods Pricing Act 
A) Sherman Act 
B) Robinson-Patman Act 
C) Federal Trade Commission Act 
D) Clayton Act 
E) Consumer Goods Pricing Act

Question 13

Apple now operates over 400 Apple Retail Stores around the world to sell its innovative products such as the iPhone and iPad. Apple uses

Accepted Answer

A) dual distribution. 
B) backward integration. 
C) forward integration. 
D) horizontal integration. 
E) strategic channel alliances. 
A) dual distribution. 
B) backward integration. 
C) forward integration. 
D) horizontal integration. 
E) strategic channel alliances.

Question 14

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 15

Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost are referred to as

Accepted Answer

A) strategic distribution. 
B) distribution management. 
C) tactical marketing planning. 
D) value chain optimization. 
E) logistics. 
A) strategic distribution. 
B) distribution management. 
C) tactical marketing planning. 
D) value chain optimization. 
E) logistics.

Question 16

A tying arrangement exists if a supplier requires

Accepted Answer

A) a distributor purchasing some products to buy others from the supplier. 
B) channel members to sell only its products or restricts distributors from selling directly competitive products. 
C) distributors to resell the supplier's products and specifies geographical areas or territories. 
D) a channel member to sell only its products. 
E) a channel member to finance all loans through the supplier's bank. 
A) a distributor purchasing some products to buy others from the supplier. 
B) channel members to sell only its products or restricts distributors from selling directly competitive products. 
C) distributors to resell the supplier's products and specifies geographical areas or territories. 
D) a channel member to sell only its products. 
E) a channel member to finance all loans through the supplier's bank.

Question 17

Establishments primarily engaged in selling grain and small farm products to retail feed stores would be classified as

Accepted Answer

A) retailers. 
B) brokers. 
C) ultimate consumers. 
D) wholesalers. 
E) agents. 
A) retailers. 
B) brokers. 
C) ultimate consumers. 
D) wholesalers. 
E) agents.

Question 18

A few years ago, Benetton delivered new styles to its worldwide stores once a month. Today, it replenishes its racks once a week. Getting the fashions to its retailers more quickly means that effectively using logistics has increased Benetton's market share by providing

Accepted Answer

A) larger lots of available inventory for its retailers. 
B) time and place utility for its customers. 
C) increased steps in the value proposition creation process. 
D) technological advances leading to greater customer information. 
E) increased customer traffic. 
A) larger lots of available inventory for its retailers. 
B) time and place utility for its customers. 
C) increased steps in the value proposition creation process. 
D) technological advances leading to greater customer information. 
E) increased customer traffic.

Question 19

What are the utilities created by marketing intermediaries? Describe each one.

Accepted Answer

Marketing intermediaries help create fou

Question 20

As the number of intermediaries between a producer and buyer increases, the channel is viewed as increasing in

Accepted Answer

A) variety. 
B) scope. 
C) depth. 
D) scale. 
E) length. 
A) variety. 
B) scope. 
C) depth. 
D) scale. 
E) length.

Exam 15: Managing Marketing Channels and Supply Chains

The two types of channel conflict are

Disintermediation refers to channel conflict that arises when

In some countries, the packaging of the well-known Cheerios brand of cereal carries the Nestlé name rather than the familiar General Mills brand name. Explain the channel that is being used and the importance of Cereal Partners Worldwide (CPW).

The distribution intensity associated with products such as Dell's personal computers is referred to as

There are four popular types of franchising: (1) manufacturer-sponsored retail franchise systems, (2) __________, (3) service-sponsored retail franchise systems, and (4) service-sponsored franchise systems.

An intermediary that sells to consumers is referred to as

Because its customers desire rapid delivery and a wide variety of customizable products, Dell made a conscious decision to use __________ supply chain to meet these requirements.

What specific decision areas are associated with the flow of goods and together make up total logistics cost?

Dual distribution refers to

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

Which of the following would be a source of vertical conflict?

The __________ specifically prohibits exclusive dealing and tying arrangements when they lessen competition or create monopolies.

Apple now operates over 400 Apple Retail Stores around the world to sell its innovative products such as the iPhone and iPad. Apple uses

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.

Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost are referred to as

A tying arrangement exists if a supplier requires

Establishments primarily engaged in selling grain and small farm products to retail feed stores would be classified as

A few years ago, Benetton delivered new styles to its worldwide stores once a month. Today, it replenishes its racks once a week. Getting the fashions to its retailers more quickly means that effectively using logistics has increased Benetton's market share by providing

What are the utilities created by marketing intermediaries? Describe each one.

As the number of intermediaries between a producer and buyer increases, the channel is viewed as increasing in

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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