Question 1

Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman Gray's products at their outlets. What kind of marketing strategy has Bateman Gray adopted with its car dealers?

Accepted Answer

A)  direct marketing 
B)  exclusive dealing 
C)  disintermediation 
D)  horizontal integration 
E)  vertical integration

Question 2

An administered vertical marketing system integrates successive stages of production and distribution under single ownership.

Accepted Answer

A) True 
 B)False

Question 3

What is disintermediation? With a suitable example, explain the opportunities and problems that disintermediation presents for producers and resellers.

Accepted Answer

The answer of What is disintermediation? With a suitable example,...

Question 4

Customer-centered logistics starts with the marketplace and works backward to the factory.

Accepted Answer

A) True 
 B)False

Question 5

Full-line forcing is considered an illegal arrangement that violates the Clayton Act.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true of RFID or "smart tag" technology?

Accepted Answer

A)  "Smart tag" technology eliminates the need for intermediaries and facilitates a direct marketing system. 
B)  "Smart tag" technology can de-automate the entire supply chain. 
C)  The use of "smart tag" technology makes it difficult to know where a product is located physically within the supply chain. 
D)  Retailers and suppliers using "smart technology" have higher risks of shoplifting and robbery. 
E)  "Smart shelves" can tell when it is time to reorder and can place orders automatically.

Question 7

Supply chain management involves managing both upstream and downstream value-added flows of materials.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true of a vertical marketing system?

Accepted Answer

A)  It is formed when two or more companies at one level join together to follow a new marketing opportunity. 
B)  It is formed when a single firm sets up two or more marketing channels to reach one or more customer segments. 
C)  It does not give overall power to any one member in the channel. 
D)  It has each channel member acting as a separate business unit trying to maximize its own profits. 
E)  It has one channel member owning all the other channel members or has contracts with all other channel members.

Question 9

Inbound logistics involves managing the flow of products from an intermediary to a customer.

Accepted Answer

A) True 
 B)False

Question 10

How does a company determine its channel objectives? What factors influence the channel objectives of a company?

Accepted Answer

The answer of How does a company determine its channel...

Question 11

What are the responsibilities of channel members?

Accepted Answer

The answer of What are the responsibilities of channel members?...

Question 12

________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of the producer's merchandise.

Accepted Answer

A)  Horizontal price fixing 
B)  Horizontal integration 
C)  Full-line forcing 
D)  Direct marketing 
E)  Disintermediation

Question 13

Jupiter Steel is the chief provider of metals to Greystone Motors. Greystone Motors has two models of cars - one for commercial and regular consumers and another for professional car racing teams. Greystone Motors has designated dealers to sell its commercial cars to consumers, while racing cars are sold directly to the racing teams. In such a distribution channel, which of the following would be considered a horizontal conflict?

Accepted Answer

A)  a conflict between Jupiter Steel and Greystone Motors 
B)  a conflict between Jupiter Steel and Greystone dealers 
C)  a conflict between two Greystone Motors car dealerships 
D)  a conflict between a Greystone Motors car dealership and a racing team 
E)  a conflict between Greystone Motors and its car dealerships

Question 14

A multichannel marketing system is one in which a producer sells to multiple markets using the same distributional channel.

Accepted Answer

A) True 
 B)False

Question 15

Victoria's Closet, a manufacturer of bohemian-style clothing and accessories, sells its products through its online Web site, a catalogue, and specialty boutiques that target women. Which kind of channel arrangement does Victoria's Closet employ to distribute its products?

Accepted Answer

A)  horizontal marketing system 
B)  multichannel distribution system 
C)  administered vertical marketing system 
D)  contractual vertical marketing system 
E)  corporate vertical marketing system

Question 16

Which of the following is true of logistics?

Accepted Answer

A)  Companies can gain a powerful competitive advantage by using improved logistics to enhance customer service or lower prices. 
B)  The cost savings to a company and its customers due to improved logistics is typically nominal. 
C)  Less than 5 percent of an average product's price is accounted for by shipping and transport. 
D)  The cost of logistics is considerably less than advertising. 
E)  Shaving off a small fraction of logistics costs has very little impact on savings.

Question 17

With a vendor-managed inventory system, the supplier takes full responsibility for managing inventories and deliveries.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following applies to a marketing intermediary who buys brand name toothpaste from 10 different manufacturers, consolidates offerings, and then resells the various brands to 500 supermarkets in Florida?

Accepted Answer

A)  facilitate the production of products without direct customer feedback 
B)  help a company develop a direct channel selling system 
C)  buy small quantities of products from producers and break them down into narrow assortments for customers 
D)  increase the amount of work that must be done by producers and consumers 
E)  transform the assortments of products made by producers into the assortments wanted by consumers

Question 19

Describe the legal aspects of exclusive arrangements such as exclusive dealing and exclusive distribution.

Accepted Answer

The answer of Describe the legal aspects of exclusive arrangements...

Question 20

A firm that uses direct marketing would most likely sell its products through ________.

Accepted Answer

A)  one marketing intermediary 
B)  big box retailers 
C)  large wholesalers 
D)  multiple intermediaries 
E)  the company Web site

Exam 10: Marketing Channels: Delivering Customer Value

Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman Gray's products at their outlets. What kind of marketing strategy has Bateman Gray adopted with its car dealers?

An administered vertical marketing system integrates successive stages of production and distribution under single ownership.

What is disintermediation? With a suitable example, explain the opportunities and problems that disintermediation presents for producers and resellers.

Customer-centered logistics starts with the marketplace and works backward to the factory.

Full-line forcing is considered an illegal arrangement that violates the Clayton Act.

Which of the following is true of RFID or "smart tag" technology?

Supply chain management involves managing both upstream and downstream value-added flows of materials.

Which of the following is true of a vertical marketing system?

Inbound logistics involves managing the flow of products from an intermediary to a customer.

How does a company determine its channel objectives? What factors influence the channel objectives of a company?

What are the responsibilities of channel members?

________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of the producer's merchandise.

A multichannel marketing system is one in which a producer sells to multiple markets using the same distributional channel.

Victoria's Closet, a manufacturer of bohemian-style clothing and accessories, sells its products through its online Web site, a catalogue, and specialty boutiques that target women. Which kind of channel arrangement does Victoria's Closet employ to distribute its products?

Which of the following is true of logistics?

With a vendor-managed inventory system, the supplier takes full responsibility for managing inventories and deliveries.

Which of the following applies to a marketing intermediary who buys brand name toothpaste from 10 different manufacturers, consolidates offerings, and then resells the various brands to 500 supermarkets in Florida?

Describe the legal aspects of exclusive arrangements such as exclusive dealing and exclusive distribution.

A firm that uses direct marketing would most likely sell its products through ________.