Question 1

A refusal to deal with existing channel members may be illegal under the

Accepted Answer

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

Question 2

The choice of a supply chain follows from a clearly defined marketing strategy and involves three steps: (1) __________, (2) understand the supply chain, and (3) harmonize the supply chain with the marketing strategy.

Accepted Answer

A) understand the environment 
B) consider the legal consequences of partnering 
C) understand the marketing strategy 
D) understand the customer 
E) understand the company's goals 
A) understand the environment 
B) consider the legal consequences of partnering 
C) understand the marketing strategy 
D) understand the customer 
E) understand the company's goals

Question 3

When a retailer owns a manufacturing operation, it is referred to as

Accepted Answer

A) forward integration. 
B) lateral integration. 
C) a joint venture. 
D) horizontal integration. 
E) backward integration. 
A) forward integration. 
B) lateral integration. 
C) a joint venture. 
D) horizontal integration. 
E) backward integration.

Question 4

An important feature of supply chain management is its application of __________ that allows companies to share and operate systems for order processing, transportation scheduling, and inventory and facility management.

Accepted Answer

A) wholesaler cooperatives 
B) mathematical and statistical models 
C) sophisticated information technology 
D) continuous inventory management 
E) standardized distribution protocols 
A) wholesaler cooperatives 
B) mathematical and statistical models 
C) sophisticated information technology 
D) continuous inventory management 
E) standardized distribution protocols

Question 5

The lag from ordering an item until it is received and ready for use or sale is referred to as

Accepted Answer

A) order cycle time. 
B) order handling time. 
C) order-to-ship duration. 
D) purchase cycle. 
E) logistics cycle. 
A) order cycle time. 
B) order handling time. 
C) order-to-ship duration. 
D) purchase cycle. 
E) logistics cycle.

Question 6

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 7

Jaffar (Jeff) Tabrizi is the owner and president of Tabrizi Oriental Rugs located in Toronto, Canada. He personally shops the world over, handpicks, and orders authentic and beautiful handmade rugs. He has them shipped to Canada, where he sells them through his brick-and-mortar stores and his www.tabrizi.com website. In terms of the marketing channel, Tabrizi is acting as

Accepted Answer

A) a consumer. 
B) an agent. 
C) a wholesaler. 
D) a brokerage firm. 
E) a middleman. 
A) a consumer. 
B) an agent. 
C) a wholesaler. 
D) a brokerage firm. 
E) a middleman.

Question 8

Supply chain and logistics managers play a large part in the manufacture of automobiles. It is estimated that logistics costs account for __________ percent of the retail price you pay for a new car.

Accepted Answer

A) 1 to 2 
B) 4 to 5 
C) 8 to 10 
D) 12 to 15 
E) 25 to 30 
A) 1 to 2 
B) 4 to 5 
C) 8 to 10 
D) 12 to 15 
E) 25 to 30

Question 9

Supply chain management refers to

Accepted Answer

A) the integration and organization of information and logistic activities across firms for the purpose of creating and delivering products and services that provide value to ultimate consumers. 
B) organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point-of-origin to point-of-consumption to satisfy customer requirements. 
C) the integration and organization of information and logistical activities that actively bring consumers together with sellers through the express use of agents and brokers. 
D) an inventory management system that is designed to reduce the retailer's lead time for receiving merchandise, which then lowers a retailer's inventory investment, improves customer service levels, and reduces logistic expenses. 
E) a highly organized system that facilitates minute-to-minute communication between all members of a supply chain and ensures the producer is aware of any changes in delivery or demand for a product or service. 
A) the integration and organization of information and logistic activities across firms for the purpose of creating and delivering products and services that provide value to ultimate consumers. 
B) organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point-of-origin to point-of-consumption to satisfy customer requirements. 
C) the integration and organization of information and logistical activities that actively bring consumers together with sellers through the express use of agents and brokers. 
D) an inventory management system that is designed to reduce the retailer's lead time for receiving merchandise, which then lowers a retailer's inventory investment, improves customer service levels, and reduces logistic expenses. 
E) a highly organized system that facilitates minute-to-minute communication between all members of a supply chain and ensures the producer is aware of any changes in delivery or demand for a product or service.

Question 10

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 11

List and define the three major types of vertical marketing systems.

Accepted Answer

A vertical marketing system is a profess

Question 12

Any intermediary between a manufacturer and end-user markets is referred to as a

Accepted Answer

A) retailer. 
B) middleman. 
C) wholesaler. 
D) broker. 
E) distributor. 
A) retailer. 
B) middleman. 
C) wholesaler. 
D) broker. 
E) distributor.

Question 13

The three major types of vertical marketing systems are administered, corporate, and

Accepted Answer

A) integrated. 
B) cooperative. 
C) delegated. 
D) manufacturer-dominated. 
E) contractual. 
A) integrated. 
B) cooperative. 
C) delegated. 
D) manufacturer-dominated. 
E) contractual.

Question 14

The process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal is referred to as

Accepted Answer

A) salvage marketing. 
B) materials transformation. 
C) reverse materials handling. 
D) reverse logistics. 
E) cause-related marketing. 
A) salvage marketing. 
B) materials transformation. 
C) reverse materials handling. 
D) reverse logistics. 
E) cause-related marketing.

Question 15

A firm needs to drive down logistics costs as long as it can deliver expected

Accepted Answer

A) balance sheet results. 
B) customer service. 
C) low levels of expenses. 
D) product-market synergies. 
E) target market goals. 
A) balance sheet results. 
B) customer service. 
C) low levels of expenses. 
D) product-market synergies. 
E) target market goals.

Question 16

When choosing a marketing channel or intermediary, it is important to ask three key questions: (1) Which channel and intermediaries will provide the best coverage of the target market? (2) Which channel and intermediaries will best satisfy the buying requirements of the target market? and (3) __________

Accepted Answer

A) How many of the firm's competitors will be using the same channels? 
B) Which channels have strategic channel alliances with other resellers? 
C) How long have the channel members and intermediaries been in business? 
D) Who is responsible for negotiating the channel or intermediary contracts? 
E) Which channel and intermediaries will be the most profitable? 
A) How many of the firm's competitors will be using the same channels? 
B) Which channels have strategic channel alliances with other resellers? 
C) How long have the channel members and intermediaries been in business? 
D) Who is responsible for negotiating the channel or intermediary contracts? 
E) Which channel and intermediaries will be the most profitable?

Question 17

MachineTools.com sells grinders, boring mills, and engine lathes. Its website lists products from over 700 machinery manufacturers, 2,500 distributors of new equipment, and 650 dealers of used inventory for sale. MachineTools.com relies on a well-established channel of manufacturers, distributors, and machinery dealers to provide the merchandise that is sold through this

Accepted Answer

A) electronic government channel. 
B) virtual marketing channel. 
C) World Wide Web network. 
D) mediated channel. 
E) Internet marketing channel. 
A) electronic government channel. 
B) virtual marketing channel. 
C) World Wide Web network. 
D) mediated channel. 
E) Internet marketing channel.

Question 18

Vertical marketing system refers to

Accepted Answer

A) professionally managed geographically dispersed marketing channels designed to achieve channel economies and maximize marketing impact. 
B) professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. 
C) retailer-sponsored cooperatives where small, independent retailers form an organization that operates a wholesale facility cooperatively. 
D) professionally managed geographically dispersed marketing channels that are controlled through strategic channel alliances. 
E) channel partnerships that share responsibility for ordering and physically distributing each other's products. 
A) professionally managed geographically dispersed marketing channels designed to achieve channel economies and maximize marketing impact. 
B) professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. 
C) retailer-sponsored cooperatives where small, independent retailers form an organization that operates a wholesale facility cooperatively. 
D) professionally managed geographically dispersed marketing channels that are controlled through strategic channel alliances. 
E) channel partnerships that share responsibility for ordering and physically distributing each other's products.

Question 19

Which type of contractual vertical marketing system involves small independent retailers forming an organization that operates a wholesale facility cooperatively?

Accepted Answer

A) retailer-sponsored cooperative 
B) service-sponsored retail system 
C) administered cooperative system 
D) manufacturer-sponsored cooperative 
E) wholesaler-sponsored voluntary chain 
A) retailer-sponsored cooperative 
B) service-sponsored retail system 
C) administered cooperative system 
D) manufacturer-sponsored cooperative 
E) wholesaler-sponsored voluntary chain

Question 20

Butler-McDonald, an Indianapolis firm, recycles outdated computers to reclaim reusable materials such as plastics, copper, zinc, silver, and gold. Butler-McDonald is implementing

Accepted Answer

A) salvage marketing. 
B) materials transformation. 
C) cyclical materials handling. 
D) reverse logistics. 
E) cause-related marketing. 
A) salvage marketing. 
B) materials transformation. 
C) cyclical materials handling. 
D) reverse logistics. 
E) cause-related marketing.

Exam 15: Managing Marketing Channels and Supply Chains

A refusal to deal with existing channel members may be illegal under the

The choice of a supply chain follows from a clearly defined marketing strategy and involves three steps: (1) __________, (2) understand the supply chain, and (3) harmonize the supply chain with the marketing strategy.

When a retailer owns a manufacturing operation, it is referred to as

An important feature of supply chain management is its application of __________ that allows companies to share and operate systems for order processing, transportation scheduling, and inventory and facility management.

The lag from ordering an item until it is received and ready for use or sale is referred to as

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.

Supply chain and logistics managers play a large part in the manufacture of automobiles. It is estimated that logistics costs account for __________ percent of the retail price you pay for a new car.

Supply chain management refers to

Resale restrictions exist if a supplier

List and define the three major types of vertical marketing systems.

Any intermediary between a manufacturer and end-user markets is referred to as a

The three major types of vertical marketing systems are administered, corporate, and

The process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal is referred to as

A firm needs to drive down logistics costs as long as it can deliver expected

Vertical marketing system refers to

Which type of contractual vertical marketing system involves small independent retailers forming an organization that operates a wholesale facility cooperatively?

Butler-McDonald, an Indianapolis firm, recycles outdated computers to reclaim reusable materials such as plastics, copper, zinc, silver, and gold. Butler-McDonald is implementing

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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