Question 1

Two sources of horizontal conflict are common, including when

Accepted Answer

A) a manufacturer increases its distribution coverage in a geographical area. 
B) disagreements arise over how profit margins are distributed among channel members. 
C) manufacturers believe wholesalers or retailers are not giving their products adequate attention. 
D) a channel member bypasses another member and sells or buys products direct. 
E) dual distribution causes conflict when similar types of retailers carry different brands. 
A) a manufacturer increases its distribution coverage in a geographical area. 
B) disagreements arise over how profit margins are distributed among channel members. 
C) manufacturers believe wholesalers or retailers are not giving their products adequate attention. 
D) a channel member bypasses another member and sells or buys products direct. 
E) dual distribution causes conflict when similar types of retailers carry different brands.

Question 2

Selective distribution refers to

Accepted Answer

A) the density of distribution whereby a firm tries to place its products or services in as many outlets as possible. 
B) the distribution of products or services in markets where there are currently no other competitors. 
C) the distribution of products or services where the producer owns the entire channel of distribution. 
D) the density of distribution whereby a firm tries to place its products or services with only one retail outlet in a specified geographical area. 
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 density of distribution whereby a firm tries to place its products or services in as many outlets as possible. 
B) the distribution of products or services in markets where there are currently no other competitors. 
C) the distribution of products or services where the producer owns the entire channel of distribution. 
D) the density of distribution whereby a firm tries to place its products or services with only one retail outlet in a specified geographical area. 
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 3

Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users are referred to as a

Accepted Answer

A) marketing channel. 
B) parallel distribution. 
C) retailer. 
D) wholesaler. 
E) distributor. 
A) marketing channel. 
B) parallel distribution. 
C) retailer. 
D) wholesaler. 
E) distributor.

Question 4

For logistics, the customer service concept suggests that firms should

Accepted Answer

A) automate customer service. 
B) maximize customer service levels. 
C) minimize customer service levels. 
D) minimize total logistics costs and let customer service follow. 
E) satisfy users in terms of time, dependability, communication, and convenience. 
A) automate customer service. 
B) maximize customer service levels. 
C) minimize customer service levels. 
D) minimize total logistics costs and let customer service follow. 
E) satisfy users in terms of time, dependability, communication, and convenience.

Question 5

What is a channel captain? What is its function and how does it accomplish this?

Accepted Answer

Because channels consist of independent

Question 6

The three steps used in choosing a supply chain are (1) understand the customer, (2) understand the supply chain, and (3) __________.

Accepted Answer

A) understand the environment 
B) harmonize the supply chain with the marketing strategy 
C) understand the marketing mix 
D) understand the logistics 
E) understand the company's goals 
A) understand the environment 
B) harmonize the supply chain with the marketing strategy 
C) understand the marketing mix 
D) understand the logistics 
E) understand the company's goals

Question 7

The Clayton Act prohibits, restricts, or influences all of the following channel strategies and practices except

Accepted Answer

A) exclusive dealing. 
B) refusal to deal. 
C) resale restrictions. 
D) vertical integration. 
E) full-line forcing. 
A) exclusive dealing. 
B) refusal to deal. 
C) resale restrictions. 
D) vertical integration. 
E) full-line forcing.

Question 8

A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms, one of which is

Accepted Answer

A) economic influence. 
B) stakeholder position. 
C) familial ties to other channel members. 
D) longevity in the industry. 
E) geographic proximity to the manufacturing plant. 
A) economic influence. 
B) stakeholder position. 
C) familial ties to other channel members. 
D) longevity in the industry. 
E) geographic proximity to the manufacturing plant.

Question 9

An even more imprecise term than distributor, __________ can mean the same as retailer, wholesaler, and more.

Accepted Answer

A) broker 
B) retailer 
C) agent 
D) dealer 
E) wholesaler 
A) broker 
B) retailer 
C) agent 
D) dealer 
E) wholesaler

Question 10

Facilitating function activities include

Accepted Answer

A) buying and selling. 
B) assorting, sorting, and storing. 
C) financing, grading, and marketing information and research. 
D) risk-taking. 
E) transportation. 
A) buying and selling. 
B) assorting, sorting, and storing. 
C) financing, grading, and marketing information and research. 
D) risk-taking. 
E) transportation.

Question 11

Which of the following best describes the goal for a firm's inventory and transportation costs?

Accepted Answer

A) Focus more on minimizing required inventory costs. 
B) Focus more on minimizing required transportation costs. 
C) Minimize the sum of inventory and transportation costs. 
D) Maximize the difference between required inventory and transportation costs. 
E) Set a level of transportation costs and minimize the required inventory costs. 
A) Focus more on minimizing required inventory costs. 
B) Focus more on minimizing required transportation costs. 
C) Minimize the sum of inventory and transportation costs. 
D) Maximize the difference between required inventory and transportation costs. 
E) Set a level of transportation costs and minimize the required inventory costs.

Question 12

What are the functions performed by intermediaries?

Accepted Answer

Intermediaries perform three basic funct

Question 13

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) manage the flow of customer orders from the distribution centers to individual's homes. 
D) lessen the amount of communication that is necessary between it and its suppliers. 
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) manage the flow of customer orders from the distribution centers to individual's homes. 
D) lessen the amount of communication that is necessary between it and its suppliers. 
E) implement its market divestment strategies.

Question 14

Strategic channel alliance refers to

Accepted Answer

A) an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. 
B) a practice whereby one firm's marketing channel is used to sell another firm's products. 
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) an arrangement whereby companies reduce distribution costs by sharing facilities, equipment, and transportation. 
E) a practice whereby consumers can interact with various advertising media to buy products without a face-to-face meeting with a salesperson. 
A) an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. 
B) a practice whereby one firm's marketing channel is used to sell another firm's products. 
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) an arrangement whereby companies reduce distribution costs by sharing facilities, equipment, and transportation. 
E) a practice whereby consumers can interact with various advertising media to buy products without a face-to-face meeting with a salesperson.

Question 15

Nestlé and General Mills have __________ to distribute General Mills products like Cheerios in about 140 markets worldwide.

Accepted Answer

A) multichannel distribution 
B) a direct marketing channel 
C) a cooperative distribution channel 
D) a strategic channel alliance 
E) a dual distribution agreement 
A) multichannel distribution 
B) a direct marketing channel 
C) a cooperative distribution channel 
D) a strategic channel alliance 
E) a dual distribution agreement

Question 16

In a direct channel, all channel functions are performed by

Accepted Answer

A) retailers. 
B) wholesalers. 
C) producers. 
D) brokers and agents. 
E) middlemen. 
A) retailers. 
B) wholesalers. 
C) producers. 
D) brokers and agents. 
E) middlemen.

Question 17

Forward integration means

Accepted Answer

A) a retailer owns a manufacturing operation. 
B) a wholesaler owns a manufacturing operation. 
C) retailers form a strategic channel alliance with manufacturers to purchase products at better prices since they are able to place much larger orders. 
D) a producer owns an intermediary at the next level down in the marketing channel. 
E) all links in the distribution chain own stock in the manufacturer's company. 
A) a retailer owns a manufacturing operation. 
B) a wholesaler owns a manufacturing operation. 
C) retailers form a strategic channel alliance with manufacturers to purchase products at better prices since they are able to place much larger orders. 
D) a producer owns an intermediary at the next level down in the marketing channel. 
E) all links in the distribution chain own stock in the manufacturer's company.

Question 18

Which statement regarding responsive supply chains is most accurate?

Accepted Answer

A) Responsive supply chains use slower modes of transportation but faster order processing. 
B) Responsive supply chains always use the least expensive mode of transportation possible. 
C) Responsive supply chains rely on large inventory warehouses. 
D) Responsive supply chains achieve economies of scale by having all inventory stored and sorted at a central location. 
E) Responsive supply chains rely heavily on information technology. 
A) Responsive supply chains use slower modes of transportation but faster order processing. 
B) Responsive supply chains always use the least expensive mode of transportation possible. 
C) Responsive supply chains rely on large inventory warehouses. 
D) Responsive supply chains achieve economies of scale by having all inventory stored and sorted at a central location. 
E) Responsive supply chains rely heavily on information technology.

Question 19

Ford uses __________, whereby the company licenses dealers in North America to sell Ford automobiles subject to various sales and service conditions.

Accepted Answer

A) a service-sponsored producer franchise system 
B) a service-sponsored retail franchise system 
C) a manufacturer-sponsored wholesale franchise system 
D) a manufacturer-sponsored retail franchise system 
E) an administered vertical marketing system 
A) a service-sponsored producer franchise system 
B) a service-sponsored retail franchise system 
C) a manufacturer-sponsored wholesale franchise system 
D) a manufacturer-sponsored retail franchise system 
E) an administered vertical marketing system

Question 20

The General Mills-Nestlé strategic channel alliance

Accepted Answer

A) increased the ready-to-eat cereal worldwide market share of these companies. 
B) decreased the ready-to-eat cereal worldwide market share of these companies. 
C) increased the ready-to-eat cereal market abroad and decreased General Mills' ready-to-eat cereal market in the United States. 
D) served as a model for Post Cereal and Weetabix, a British firm. 
E) resulted in a lawsuit from Kellogg's, the global leader in the ready-to-eat cereal market, which cited unfair trade practices. 
A) increased the ready-to-eat cereal worldwide market share of these companies. 
B) decreased the ready-to-eat cereal worldwide market share of these companies. 
C) increased the ready-to-eat cereal market abroad and decreased General Mills' ready-to-eat cereal market in the United States. 
D) served as a model for Post Cereal and Weetabix, a British firm. 
E) resulted in a lawsuit from Kellogg's, the global leader in the ready-to-eat cereal market, which cited unfair trade practices.

Exam 15: Managing Marketing Channels and Supply Chains

Two sources of horizontal conflict are common, including when

Selective distribution refers to

Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users are referred to as a

For logistics, the customer service concept suggests that firms should

What is a channel captain? What is its function and how does it accomplish this?

The three steps used in choosing a supply chain are (1) understand the customer, (2) understand the supply chain, and (3) __________.

The Clayton Act prohibits, restricts, or influences all of the following channel strategies and practices except

A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms, one of which is

An even more imprecise term than distributor, __________ can mean the same as retailer, wholesaler, and more.

Facilitating function activities include

Which of the following best describes the goal for a firm's inventory and transportation costs?

What are the functions performed by intermediaries?

Amazon uses supply chain and logistics management to

Strategic channel alliance refers to

Nestlé and General Mills have __________ to distribute General Mills products like Cheerios in about 140 markets worldwide.

In a direct channel, all channel functions are performed by

Forward integration means

Which statement regarding responsive supply chains is most accurate?

Ford uses __________, whereby the company licenses dealers in North America to sell Ford automobiles subject to various sales and service conditions.

The General Mills-Nestlé strategic channel alliance

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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