Question 1

The ________ organization is the most common type of contractual relationship.

Accepted Answer

A)   franchise
B)   horizontal
C)   conventional
D)   multi-national
E)   entrepreneurial A

Question 2

How can a company benefit through a just-in-time logistics system?

Accepted Answer

With just-in-time logistics systems, producers and retailers carry only small inventories of parts or merchandise, often only enough for a few days of operations. This creates substantial savings in inventory-carrying and handling costs.

Question 3

Producers use intermediaries because they create greater efficiency in making goods available to target markets.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following is an example of an indirect marketing channel?

Accepted Answer

A)   June Bride, which sells bridal gowns via its click-to-order online catalogs
B)   Farmer Brown, who delivers fresh milk from his dairy to customers every morning
C)   Wine & Dine, which sells its picnic baskets to select novelty stores across the country
D)   Lifebelt Insurance, which sells life insurance through its door-to-door salespeople
E)   Rhonda's Rental, which rents cars to people for the day

Question 5

Which of the following is true of conventional distribution channels?

Accepted Answer

A)   Channel members have complete control over each other.
B)   Channel members seek to maximize their own profits.
C)   Channel conflict is governed by formal mechanisms.
D)   Channel members are assigned roles according to a clearly defined framework.
E)   Channel members work exclusively for the good of the organization.

Question 6

Compare a conventional distribution channel with a vertical marketing system (VMS).

Accepted Answer

The answer of Compare a conventional distribution channel with a...

Question 7

Describe the types of products are intensively distributed and provide examples.

Accepted Answer

The answer of Describe the types of products are intensively...

Question 8

Which of the following is true of the exclusive distribution strategy?

Accepted Answer

A)   It makes products available to everybody, everywhere.
B)   It is used primarily for convenience items.
C)   It helps promote a brand's luxury image.
D)   It gives producers no control over their products.
E)   It enlists all of the intermediaries willing to carry a company's products.

Question 9

Describe types of products that are selectively distributed and provide examples.

Accepted Answer

The answer of Describe types of products that are selectively...

Question 10

Which of the following is a major type of vertical marketing system?

Accepted Answer

A)   corporate
B)   conventional
C)   multilevel
D)   intrinsic
E)   extrinsic

Question 11

Describe the types of products are exclusively distributed and provide examples.

Accepted Answer

The answer of Describe the types of products are exclusively...

Question 12

A ________ VMS integrates successive stages of production and distribution under single ownership.

Accepted Answer

A)   contractual
B)   corporate
C)   contingency
D)   conventional
E)   communal

Question 13

A conventional distribution channel consists of one or more independent producers, wholesalers, and retailers; each seeking to maximize its own profits, perhaps even at the expense of the system as a whole.

Accepted Answer

A) True 
 B)False

Question 14

A ________ VMS consists of independent firms at different levels of production and distribution who join together through formal agreements to obtain more economies or sales impact than each could achieve alone.

Accepted Answer

A)   corporate
B)   contingency
C)   contractual
D)   communal
E)   conventional

Question 15

________ logistics starts with the marketplace and works backward to the factory or even to sources of supply.

Accepted Answer

A)   Outbound
B)   Customer-centered
C)   Upstream
D)   Reverse
E)   Inbound

Question 16

Refer to the scenario below to answer the following question(s).
Kimberly's Crown sells and designs jewelry. Despite the jewelry's popularity, products are available only through a few shopping stores across the country.
-What distribution strategy does Kimberly's Crown use?

Accepted Answer

A)   exclusive
B)   intensive
C)   selective
D)   inclusive
E)   extensive

Question 17

________ or smart tag technology helps companies locate a product's exact position within its supply chain.

Accepted Answer

A)   RFID
B)   PRM
C)   VMS
D)   BCODE
E)   3PL

Question 18

Whitelight sells its toothpastes in many convenience stores across the country. This is an example of ________ distribution.

Accepted Answer

A)   exclusive
B)   selective
C)   hybrid
D)   intensive
E)   normal

Question 19

Which of the following is an indirect business marketing channel?

Accepted Answer

A)   producer to retailer to business distributor
B)   producer to wholesaler to retailer to end consumer
C)   producer to end-consumer to business distributor
D)   producer to retailer
E)   producer to business distributor to business customer

Question 20

A(n) ________ system involves a single firm setting up two or more marketing channels to reach one or more customer segments.

Accepted Answer

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

Exam 12: Marketing Channels: Delivering Customer Value