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 use forward integration or backward integration but not both. 
C)  Corporate vertical marketing systems increase distribution costs. 
D)  Corporate vertical marketing systems result in increased capital investments and 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 use forward integration or backward integration but not both. 
C)  Corporate vertical marketing systems increase distribution costs. 
D)  Corporate vertical marketing systems result in increased capital investments and fixed costs. 
E)  Corporate vertical marketing systems are only effective with low-end consumer products.

Question 2

intermediary who sells to consumers is referred to as a(n)__________.

Accepted Answer

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

Question 3

__________ is essentially a sequence of linked suppliers and customers in which every customer is,in turn,a supplier to another customer until a finished product reaches the final consumer.

Accepted Answer

A)  logistical flow 
B)  demand chain 
C)  supplier-customer alliance 
D)  supply chain 
E)  distributive cooperative 
A)  logistical flow 
B)  demand chain 
C)  supplier-customer alliance 
D)  supply chain 
E)  distributive cooperative

Question 4

Federal Trade Commission and the Justice Department monitor channel practices that __________,create monopolies,or otherwise represent unfair methods of competition under the Sherman Act (1890)and the Clayton Act (1914).

Accepted Answer

A)  suggest patent infringement 
B)  restrain competition 
C)  connect channel members 
D)  use coercive or suggestive advertising 
E)  manipulate public opinion 
A)  suggest patent infringement 
B)  restrain competition 
C)  connect channel members 
D)  use coercive or suggestive advertising 
E)  manipulate public opinion

Question 5

are the functions performed by intermediaries?

Accepted Answer

Intermediaries perform three basic funct

Question 6

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)  just-in-time inventory system. 
B)  supply chain. 
C)  electronic data interchange. 
D)  strategic information alliance. 
E)  product-specific delivery system. 
A)  just-in-time inventory system. 
B)  supply chain. 
C)  electronic data interchange. 
D)  strategic information alliance. 
E)  product-specific delivery system.

Question 7

Which statement regarding efficient supply chains is most accurate?

Accepted Answer

A)  Efficient supply chains traditionally use inexpensive but slower modes of transportation. 
B)  Efficient supply chains use common platforms and common components across several products. 
C)  Efficient supply chains rely on maintaining large geographically dispersed inventory warehouses. 
D)  Efficient supply chains traditionally use expensive, but faster, modes of transportation. 
E)  Efficient supply chains emphasize economies of scale by increasing the variety of system configurations offered. 
A)  Efficient supply chains traditionally use inexpensive but slower modes of transportation. 
B)  Efficient supply chains use common platforms and common components across several products. 
C)  Efficient supply chains rely on maintaining large geographically dispersed inventory warehouses. 
D)  Efficient supply chains traditionally use expensive, but faster, modes of transportation. 
E)  Efficient supply chains emphasize economies of scale by increasing the variety of system configurations offered.

Question 8

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 9

Which is the most common form of distribution intensity used today?

Accepted Answer

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

Question 10

middleman refers to

Accepted Answer

A)  a person or firm whose sole responsibility is bringing a buyer to the last link in the distribution chain. 
B)  a person or firm whose sole responsibility is to find distributors for a manufacturer's products. 
C)  any intermediary between a manufacturer and end-user markets. 
D)  a person or firm that takes possession of a product and in some way alters it before passing it on to ultimate consumers. 
E)  an intermediary who sells to ultimate consumers. 
A)  a person or firm whose sole responsibility is bringing a buyer to the last link in the distribution chain. 
B)  a person or firm whose sole responsibility is to find distributors for a manufacturer's products. 
C)  any intermediary between a manufacturer and end-user markets. 
D)  a person or firm that takes possession of a product and in some way alters it before passing it on to ultimate consumers. 
E)  an intermediary who sells to ultimate consumers.

Question 11

Expenses associated with transportation,materials handling and warehousing,inventory,stockouts (being out of inventory),order processing,and return products handling are referred to as __________.

Accepted Answer

A)  supplier service cost 
B)  manufacturing cost 
C)  total logistics cost 
D)  social responsibility cost 
E)  total supply chain cost 
A)  supplier service cost 
B)  manufacturing cost 
C)  total logistics cost 
D)  social responsibility cost 
E)  total supply chain cost

Question 12

Assembling and protecting products at a convenient location to offer better customer service would be an example of a __________ function.

Accepted Answer

A)  transactional 
B)  facilitating 
C)  grading 
D)  risk taking 
E)  logistical 
A)  transactional 
B)  facilitating 
C)  grading 
D)  risk taking 
E)  logistical

Question 13

Figure 15-1
-variety of terms are used for marketing intermediaries.According to Figure 15-1 above,"E" represents a(n)__________.

Accepted Answer

A)  retailer 
B)  middleman 
C)  wholesaler 
D)  distributor 
E)  agent or broker 
A)  retailer 
B)  middleman 
C)  wholesaler 
D)  distributor 
E)  agent or broker

Question 14

Before consumers see a movie,it is assigned a rating such as G or PG based on its language and content.This rating system is most closely related to which facilitating function activity performed by marketing intermediaries?

Accepted Answer

A)  grading 
B)  sorting 
C)  risk taking 
D)  marketing 
E)  assorting 
A)  grading 
B)  sorting 
C)  risk taking 
D)  marketing 
E)  assorting

Question 15

Firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others employ a __________.

Accepted Answer

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

Question 16

Tiffany & Co.manufactures about half of the fine jewelry items for sale through 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 17

There are three variations of contractual systems: wholesaler-sponsored voluntary chains,franchising,and __________.

Accepted Answer

A)  service-oriented voluntary chains 
B)  channel-dominated voluntary chains 
C)  distributorship cooperatives 
D)  retailer-sponsored cooperatives 
E)  reseller franchising 
A)  service-oriented voluntary chains 
B)  channel-dominated voluntary chains 
C)  distributorship cooperatives 
D)  retailer-sponsored cooperatives 
E)  reseller franchising

Question 18

Logistics is most closely related to which element of the marketing mix?

Accepted Answer

A)  product 
B)  place (distribution) 
C)  production 
D)  promotion 
E)  price 
A)  product 
B)  place (distribution) 
C)  production 
D)  promotion 
E)  price

Question 19

Figure 15-2
-Intermediaries perform three basic functions.According to Figure 15-2 above,"A" represents a(n)__________.

Accepted Answer

A)  middleman function 
B)  logistical function 
C)  facilitating function 
D)  operational function 
E)  transactional function 
A)  middleman function 
B)  logistical function 
C)  facilitating function 
D)  operational function 
E)  transactional function

Question 20

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

Exam 15: Managing Marketing Channels and Supply Chains

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

intermediary who sells to consumers is referred to as a(n)__________.

__________ is essentially a sequence of linked suppliers and customers in which every customer is,in turn,a supplier to another customer until a finished product reaches the final consumer.

Federal Trade Commission and the Justice Department monitor channel practices that __________,create monopolies,or otherwise represent unfair methods of competition under the Sherman Act (1890)and the Clayton Act (1914).

are the functions performed by intermediaries?

Which statement regarding efficient supply chains is most accurate?

Forward integration means

Which is the most common form of distribution intensity used today?

middleman refers to

Expenses associated with transportation,materials handling and warehousing,inventory,stockouts (being out of inventory),order processing,and return products handling are referred to as __________.

Assembling and protecting products at a convenient location to offer better customer service would be an example of a __________ function.

Figure 15-1 -variety of terms are used for marketing intermediaries.According to Figure 15-1 above,"E" represents a(n)__________.

Before consumers see a movie,it is assigned a rating such as G or PG based on its language and content.This rating system is most closely related to which facilitating function activity performed by marketing intermediaries?

Firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others employ a __________.

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

There are three variations of contractual systems: wholesaler-sponsored voluntary chains,franchising,and __________.

Logistics is most closely related to which element of the marketing mix?

Figure 15-2 -Intermediaries perform three basic functions.According to Figure 15-2 above,"A" represents a(n)__________.

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.

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 Multi-Channel Marketing

Pulling It All Together: The Strategic Marketing Process

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