Question 1

Channel conflict refers to

Accepted Answer

A) disagreements over the trade discounts allotted to each level of the distribution chain by the Federal Trade Commission. 
B) regulatory restrictions limiting the number of distributors that can sell a producer's products. 
C) when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals. 
D) when one distributor carries two competing brands. 
E) when the producer doesn't allow other channel members to have input regarding product specifications or benefits. 
A) disagreements over the trade discounts allotted to each level of the distribution chain by the Federal Trade Commission. 
B) regulatory restrictions limiting the number of distributors that can sell a producer's products. 
C) when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals. 
D) when one distributor carries two competing brands. 
E) when the producer doesn't allow other channel members to have input regarding product specifications or benefits.

Question 2

A(n) __________ exists when producers and ultimate consumers deal one-on-one with each other.

Accepted Answer

A) strategic channel alliance 
B) direct channel 
C) horizontal marketing exchange 
D) indirect channel 
E) dual distribution channel 
A) strategic channel alliance 
B) direct channel 
C) horizontal marketing exchange 
D) indirect channel 
E) dual distribution channel

Question 3

With respect to consumer product and service marketing channels, what are the key differences between a direct and an indirect channel?

Accepted Answer

A direct channel exists where a producer

Question 4

Retailer refers to

Accepted Answer

A) an intermediary that sells only to other intermediaries. 
B) any intermediary between a manufacturer and industrial markets. 
C) an intermediary that sells to other distributors. 
D) an intermediary that takes possession of a product, alters it in some way, and then sells it to the ultimate consumer. 
E) an intermediary that sells to consumers. 
A) an intermediary that sells only to other intermediaries. 
B) any intermediary between a manufacturer and industrial markets. 
C) an intermediary that sells to other distributors. 
D) an intermediary that takes possession of a product, alters it in some way, and then sells it to the ultimate consumer. 
E) an intermediary that sells to consumers.

Question 5

There are three types of contractual vertical marketing systems. List the systems and provide a brief description of each.

Accepted Answer

There are three major types of contractu

Question 6

Retailer-sponsored cooperative refers to

Accepted Answer

A) small, independent retailers forming an organization that operates a wholesale facility cooperatively. 
B) a vertical marketing system that involves a contractual relationship between a wholesaler and small independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management. 
C) an agreement among small, privately owned manufacturers to pool their resources by sharing installations, heavy equipment, and warehousing they would be unable to afford on their own. 
D) an agreement among retailers to pool their resources by purchasing services such as signage, snow removal, and trash removal that affects the physical space (strip mall, etc.) they all share. 
E) small, independent retailers that pool their resources to finance store expansion programs. 
A) small, independent retailers forming an organization that operates a wholesale facility cooperatively. 
B) a vertical marketing system that involves a contractual relationship between a wholesaler and small independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management. 
C) an agreement among small, privately owned manufacturers to pool their resources by sharing installations, heavy equipment, and warehousing they would be unable to afford on their own. 
D) an agreement among retailers to pool their resources by purchasing services such as signage, snow removal, and trash removal that affects the physical space (strip mall, etc.) they all share. 
E) small, independent retailers that pool their resources to finance store expansion programs.

Question 7

A(n) __________ is common in the soft drink industry where the manufacturer sells its concentrate to wholesalers, that carbonate it and market the finished product to retailers.

Accepted Answer

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

Question 8

Jay stops at the shopping mall to purchase a new pair of jeans from the Diesel store. He is the ultimate consumer in a pipeline from the producer through intermediaries, including the clothing store. This pipeline is actually a

Accepted Answer

A) marketing tunnel. 
B) consumer market. 
C) marketing channel. 
D) transactional conduit. 
E) distribution matrix. 
A) marketing tunnel. 
B) consumer market. 
C) marketing channel. 
D) transactional conduit. 
E) distribution matrix.

Question 9

Retailers and industrial distributors prefer exclusive distribution for two reasons. One is that

Accepted Answer

A) it provides a point of difference for a retailer or distributor. 
B) it eliminates channel conflict. 
C) it is usually chosen for convenience. 
D) it has market coverage benefits. 
E) it is the most common form of distribution intensity. 
A) it provides a point of difference for a retailer or distributor. 
B) it eliminates channel conflict. 
C) it is usually chosen for convenience. 
D) it has market coverage benefits. 
E) it is the most common form of distribution intensity.

Question 10

The most indirect channel for consumer products incorporates agents, wholesalers, and retailers and is most commonly used when there

Accepted Answer

A) are only a few large manufacturers but many small retailers. 
B) are low-cost, low unit volume goods. 
C) is too large an inventory to be carried by wholesalers. 
D) are many small manufacturers and many small retailers. 
E) are many manufacturers with a limited inventory competing for a small group of retailers. 
A) are only a few large manufacturers but many small retailers. 
B) are low-cost, low unit volume goods. 
C) is too large an inventory to be carried by wholesalers. 
D) are many small manufacturers and many small retailers. 
E) are many manufacturers with a limited inventory competing for a small group of retailers.

Question 11

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) __________, and (4) pre- or postsale services.

Accepted Answer

A) availability 
B) quality 
C) variety 
D) brand name recognition 
E) adaptability 
A) availability 
B) quality 
C) variety 
D) brand name recognition 
E) adaptability

Question 12

The practice of 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 is referred to as

Accepted Answer

A) the inventory management process. 
B) logistics management. 
C) production management. 
D) manufacturer distribution logistics. 
E) supply-chain management. 
A) the inventory management process. 
B) logistics management. 
C) production management. 
D) manufacturer distribution logistics. 
E) supply-chain management.

Question 13

Wholesaler refers to

Accepted Answer

A) independent firms or individuals whose principal function is to bring buyers and sellers together. 
B) any intermediary that takes ownership of a manufacturer's products or services and then finds multiple buyers for those products or services. 
C) an intermediary that sells to other intermediaries, usually to retailers in consumer markets. 
D) an intermediary that sells to consumers. 
E) a manufacturing "matchmaker" that actively seeks out potential consumers and brings them to retailers. 
A) independent firms or individuals whose principal function is to bring buyers and sellers together. 
B) any intermediary that takes ownership of a manufacturer's products or services and then finds multiple buyers for those products or services. 
C) an intermediary that sells to other intermediaries, usually to retailers in consumer markets. 
D) an intermediary that sells to consumers. 
E) a manufacturing "matchmaker" that actively seeks out potential consumers and brings them to retailers.

Question 14

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

Accepted Answer

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

Question 15

Purchasing products for resale or as an agent for supply of a product would be an example of __________ function.

Accepted Answer

A) a logistical 
B) a facilitating 
C) a risk-taking 
D) a transactional 
E) an assorting 
A) a logistical 
B) a facilitating 
C) a risk-taking 
D) a transactional 
E) an assorting

Question 16

Driving time, proximity, and hours of operation for stores, and the usability of a website are all examples of which buyer requirement?

Accepted Answer

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

Question 17

International Products, a Burlington, New Jersey, firm that sells industrial cleansers and lubricants, wanted to sell its product to factories, hospitals, and labs in China, but it did not have the necessary expertise. As a result, International Products hired Asia Marketing & Management to sell, stock, and deliver a full assortment of products to the Chinese market. Asia Marketing & Management is an example of

Accepted Answer

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

Question 18

Logistics refers to

Accepted Answer

A) an inventory management system where the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items. 
B) mathematical formulas and calculations used in determining product volume and demand in order to generate the greatest revenue at the lowest cost. 
C) the sequence of firms that performs activities required to create and deliver a product or service to ultimate consumers or industrial users. 
D) 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. 
E) a specialized intermediary in the distribution chain responsible for the coordination of all production schedules. 
A) an inventory management system where the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items. 
B) mathematical formulas and calculations used in determining product volume and demand in order to generate the greatest revenue at the lowest cost. 
C) the sequence of firms that performs activities required to create and deliver a product or service to ultimate consumers or industrial users. 
D) 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. 
E) a specialized intermediary in the distribution chain responsible for the coordination of all production schedules.

Question 19

Multichannel marketing is the blending of different __________ that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.

Accepted Answer

A) pricing channels 
B) distribution channels 
C) communication and delivery channels 
D) direct and indirect channels 
E) communication channels 
A) pricing channels 
B) distribution channels 
C) communication and delivery channels 
D) direct and indirect channels 
E) communication channels

Question 20

IBM built a single __________ that would handle raw material procurement, manufacturing, logistics, customer support, order entry, and customer fulfillment across all of IBM-something that had never been done before.

Accepted Answer

A) integrated supply chain 
B) extranet computer system 
C) customer service department 
D) intranet supply network system 
E) global procurement network 
A) integrated supply chain 
B) extranet computer system 
C) customer service department 
D) intranet supply network system 
E) global procurement network

Exam 15: Managing Marketing Channels and Supply Chains

Channel conflict refers to

A(n) __________ exists when producers and ultimate consumers deal one-on-one with each other.

With respect to consumer product and service marketing channels, what are the key differences between a direct and an indirect channel?

Retailer refers to

There are three types of contractual vertical marketing systems. List the systems and provide a brief description of each.

Retailer-sponsored cooperative refers to

A(n) __________ is common in the soft drink industry where the manufacturer sells its concentrate to wholesalers, that carbonate it and market the finished product to retailers.

Jay stops at the shopping mall to purchase a new pair of jeans from the Diesel store. He is the ultimate consumer in a pipeline from the producer through intermediaries, including the clothing store. This pipeline is actually a

Retailers and industrial distributors prefer exclusive distribution for two reasons. One is that

The most indirect channel for consumer products incorporates agents, wholesalers, and retailers and is most commonly used when there

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) __________, and (4) pre- or postsale services.

The practice of 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 is referred to as

Wholesaler refers to

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

Purchasing products for resale or as an agent for supply of a product would be an example of __________ function.

Driving time, proximity, and hours of operation for stores, and the usability of a website are all examples of which buyer requirement?

Logistics refers to

Multichannel marketing is the blending of different __________ that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.

IBM built a single __________ that would handle raw material procurement, manufacturing, logistics, customer support, order entry, and customer fulfillment across all of IBM-something that had never been done before.

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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