Question 1

Which buyer requirement would be most important in choosing a channel for a financial service for a novice investor who is interested in setting up a retirement account?

Accepted Answer

A)  information 
B)  context 
C)  variety 
D)  pre- and postsale services 
E)  adaptation

Question 2

The ________ specifically prohibits exclusive dealing and tying arrangements when they lessen competition or create monopolies.

Accepted Answer

A)  Sherman Act 
B)  Robinson-Patman Act 
C)  Federal Trade Commission Act 
D)  Clayton Act 
E)  Consumer Goods Pricing Act

Question 3

A tying arrangement exists if a supplier requires

Accepted Answer

A)  a distributor purchasing some products to buy others from the supplier. 
B)  channel members to sell only its products or restricts distributors from selling directly competitive products. 
C)  distributors to resell the supplier's products and specifies geographical areas or territories. 
D)  a channel member to sell only its products. 
E)  a channel member to finance all loans through the supplier's bank.

Question 4

Which of these statements best describes the difference between a corporate vertical marketing system and an administered vertical marketing system?

Accepted Answer

A)  Administered vertical marketing systems gain power through ownership while corporate vertical marketing systems gain power through contractual agreement. 
B)  Administered vertical marketing systems gain power through the size and influence of one channel member and through ownership, rather than through contractual arrangement. 
C)  Administered vertical marketing systems gain power through contractual agreements and ownership rather than through size. 
D)  Administered vertical marketing systems are usually larger and more profitable than corporate vertical marketing systems. 
E)  Administered vertical marketing systems achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership.

Question 5

A ________ 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 ultimate consumer or industrial user.

Accepted Answer

A)  logistical flow 
B)  demand chain 
C)  supplier-customer alliance 
D)  supply chain 
E)  production pipeline

Question 6

A contractual arrangement between a parent company and an individual or firm that allows the latter to operate a certain type of business under an established name and according to specific rules is referred to as

Accepted Answer

A)  a corporate vertical marketing system. 
B)  a wholesaler-sponsored voluntary chain. 
C)  a retailer-sponsored cooperative. 
D)  franchising. 
E)  an administered vertical marketing system.

Question 7

Establishments primarily engaged in selling grain and small farm products to retail feed stores would be classified as

Accepted Answer

A)  retailers. 
B)  brokers. 
C)  ultimate consumers. 
D)  wholesalers. 
E)  agents.

Question 8

Ford uses ________, whereby the company licenses dealers in North America to sell Ford automobiles subject to various sales and service conditions.

Accepted Answer

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

Question 9

Using the Internet to make products and services available for consumption or use by consumers or organizational buyers is referred to as

Accepted Answer

A)  electronic distribution channels. 
B)  virtual marketing channels. 
C)  World Wide Web networks. 
D)  digital marketing channels. 
E)  Web 3.0 marketing channels.

Question 10

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 efforts is referred to as

Accepted Answer

A)  a service-sponsored retail franchise system. 
B)  a retailer-sponsored cooperative. 
C)  an administered vertical marketing system. 
D)  a manufacturer-sponsored retail franchise system. 
E)  a wholesaler-sponsored voluntary chain.

Question 11

The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online is referred to as

Accepted Answer

A)  direct marketing. 
B)  indirect marketing. 
C)  intensive marketing. 
D)  multichannel marketing. 
E)  digital marketing.

Question 12

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

Question 13

Walmart can obtain cooperation from manufacturers in terms of product specifications, price levels, and promotional support, given its position as the world's largest retailer. Walmart is an example of

Accepted Answer

A)  a service-sponsored retail system. 
B)  an administered vertical marketing system. 
C)  a retailer-sponsored cooperative. 
D)  an administered cooperative system. 
E)  a manufacturer-sponsored cooperative.

Question 14

Responsive supply chains

Accepted Answer

A)  use slower modes of transportation but faster order processing. 
B)  always use the least expensive mode of transportation possible. 
C)  rely on large inventory warehouses. 
D)  achieve economies of scale by having all inventory stored and sorted at a central location. 
E)  rely heavily on information technology.

Question 15

Ace Hardware is a national ________ that allows its members, retailers of paint and hardware products, to concentrate their buying power through wholesalers and plan collaborative promotional and pricing activities.

Accepted Answer

A)  service-sponsored retail system 
B)  administered cooperative system 
C)  retailer-sponsored cooperative 
D)  manufacturer-sponsored cooperative 
E)  wholesaler-sponsored voluntary chain

Question 16

The choice of a supply chain follows from a clearly defined marketing strategy and involves three steps: (1) ________, (2) understand the supply chain, and (3) harmonize the supply chain with the marketing strategy.

Accepted Answer

A)  understand the environment 
B)  consider the legal consequences of partnering 
C)  understand the marketing strategy 
D)  understand the customer 
E)  understand the company's goals

Question 17

There are three degrees of distribution density, one of which is intensive distribution. What would best be considered the opposite of this degree of distribution density?

Accepted Answer

A)  exhaustive distribution 
B)  specialized distribution 
C)  selective distribution 
D)  concentrated distribution 
E)  exclusive distribution

Question 18

Reverse logistics refers to

Accepted Answer

A)  the collection of used goods donated to nonprofit organizations by ultimate consumers to be restored, cleaned, repaired, and resold back to ultimate consumers. 
B)  deconstructing products that failed to pass quality inspection standards on the production line and reusing workable parts instead of throwing out the entire unit. 
C)  the process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal. 
D)  organizing a 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. 
E)  the donation of old or broken automobiles to nonprofit organizations that can be recycled or turned into scrap with the profits applied to the organization's operating expenses.

Question 19

Multichannel marketing is the blending of different ________ channels 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 
B)  production 
C)  communication and delivery 
D)  direct and indirect 
E)  promotion

Question 20

________ exists when a franchisor licenses individuals or firms to dispense a service under a trade name and specific guidelines.

Accepted Answer

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

Exam 15: Managing Marketing Channels and Supply Chains