Question 1

A corporate VMN has the advantage of controlling the entire distribution chain under ________.

Accepted Answer

A) a profit-maximising strategic plan 
B) single ownership 
C) mass distribution 
D) a few intermediaries 
E) franchise agreements

Question 2

Many new types of retailing forms began as low-margin,low-price,low-status operations according to the concept called ________.

Accepted Answer

A) the wheel of retailing 
B) retailing cycle 
C) cyclical retailing 
D) retail evolutionary cycle 
E) retail life-cycle

Question 3

Which of the following is an example of a manufacturer-sponsored retailer franchise system?

Accepted Answer

A) fast-food restaurants such as McDonald's and Hungry Jacks 
B) Ford and its network of independent franchised dealers 
C) licensed bottlers that bottle and sell Coca-Cola to retailers 
D) a motel chain such as Holiday Inn and Quest Group 
E) All of the above.

Question 4

In a conventional distribution channel,no channel member has much control over the other members,and no formal means exists for assigning roles and resolving channel conflict.

Accepted Answer

A) True 
 B)False

Question 5

________ occur when a single firm sets up two or more marketing channels to reach one or more customer segments.

Accepted Answer

A) Dual distribution systems 
B) Multichannel distribution networks 
C) Administered franchises 
D) Horizontal multichannel systems 
E) Contractual marketing systems

Question 6

Officeworks carries a deep assortment of goods for the home office or small business.Product lines include office stationery,office equipment,computer software and hardware,and office furniture-as well as services including copying and printing.Officeworks would be best described as a ________.

Accepted Answer

A) category killer 
B) factory outlet 
C) discount store 
D) superstore 
E) warehouse club

Question 7

An amateur jogger goes to the Adidas warehouse to find athletic shoes and clothing at lower prices than that charged by department stores and sports stores.The room within the factory complex carries leftover merchandise,overruns,samples and irregulars.This is an example of a ________.

Accepted Answer

A) combination store 
B) factory outlet 
C) discount store 
D) superstore 
E) warehouse club

Question 8

________ do not take title to goods and perform only a few functions.Their main function is to facilitate buying and selling,for which they are paid a commission.

Accepted Answer

A) Agents and brokers 
B) Industrial distributors 
C) Rack jobbers 
D) Producer's cooperatives 
E) Commission merchants

Question 9

Wholesalers fall into three main groups.Which of the following is largest of those groups?

Accepted Answer

A) merchant wholesalers 
B) agents and brokers 
C) producers' co-operatives 
D) manufacturers' sales branches and offices 
E) full-line sales contractors

Question 10

From the economic system's point of view,the role of marketing intermediaries is to transform the assortment of products made by producers into the assortment of products wanted by ________.

Accepted Answer

A) channel members 
B) distributors 
C) consumers 
D) manufacturers 
E) marketers

Question 11

In choosing a transportation mode for a product,shippers must balance many considerations.Which of the following is NOT a principal consideration for selecting the optimal transportation mode?

Accepted Answer

A) speed 
B) dependability 
C) availability 
D) cost 
E) company reputation

Question 12

Which of the following is the most likely disadvantage of adding new channels in a multichannel distribution system?

Accepted Answer

A) decreasing understanding of complex markets 
B) decreasing control over the system 
C) fewer opportunities for franchising 
D) increasing disintermediation 
E) reducing conflict among channel members

Question 13

The supply chain involves many decisions related to marketing channels and logistics.Which of the following would be a logistics decision?

Accepted Answer

A) whether to sole-source 
B) where to locate a plant 
C) what type of operational process to use 
D) whether to supply from inventory or from production 
E) All of the above.

Question 14

In marketing terms,we say that the number of intermediary levels indicates the ________ of a channel.

Accepted Answer

A) depth 
B) complexity 
C) involvement 
D) length 
E) width

Question 15

The three main types of franchises are manufacturer-sponsored retailers,manufacturer-sponsored wholesalers and service-firm-sponsored retailers.

Accepted Answer

A) True 
 B)False

Question 16

________ includes all activities involved in selling goods and service to those buying for resale or business use.

Accepted Answer

The answer of ________ includes all activities involved in selling...

Question 17

Proud Pets,a producer of clothing and accessories for pets,has recently partnered with a regional chain of pet stores.Which of the following would Proud Pets be LEAST likely to expect from its new channel member?

Accepted Answer

A) promoting its products through advertising 
B) assembling and packaging its products for final sale 
C) distributing relevant marketing research information 
D) identifying raw materials and other productive inputs 
E) negotiating on its products' prices

Question 18

Producers benefit from using intermediaries because they ________.

Accepted Answer

A) offer greater efficiency in making goods available to target markets 
B) bring a fresh point of view to strategy development 
C) eliminate risk 
D) are generally backlogged with orders 
E) refuse to store products for longer than a few days

Question 19

To a producer of goods,a greater number of channel levels means ________ and greater channel complexity.

Accepted Answer

A) less distance between producer and end consumer 
B) less control 
C) more potential ideas 
D) higher taxes 
E) fewer channel members

Question 20

Which type of product might require a more direct marketing channel to avoid delays and too much handling?

Accepted Answer

A) lower-priced products 
B) perishable products 
C) high-priced products 
D) products in their maturity stage 
E) products in their decline stage

Exam 10: Pricing Strategies: Understanding and Capturing Customer Value