Question 1

In an ideal supply chain, materials of all kinds are handled as many times as possible.

Accepted Answer

A) True 
 B)False

Question 2

A vertical marketing system (VMS) consists of vertically aligned networks behaving and performing as a unified system. Explain the three different ways they can be set up.

Accepted Answer

The answer of A vertical marketing system (VMS) consists of...

Question 3

A ________ eliminates many in-house business functions and activities in favor of focusing only on those aspects for which it is best equipped to add value.

Accepted Answer

A)  value network 
B)  mechanistic distribution system 
C)  virtual organization 
D)  physical distribution system 
E)  tall organization

Question 4

________ enhance utilities by providing a wide array of specific functions including physical distribution functions, transaction and communication functions, and facilitating functions.

Accepted Answer

A)  Direct channels 
B)  Value networks 
C)  Indirect channels 
D)  Pull strategies 
E)  Channel intermediaries

Question 5

A vertical marketing system is comprised of independent entities.

Accepted Answer

A) True 
 B)False

Question 6

Good Egg Co. buys eggs from local farmers, sorts them into different grades, and then packages them to sell to larger grocers. Good Egg Co. is performing the distribution function of ________.

Accepted Answer

A)  physical distribution 
B)  product processing 
C)  determining variety 
D)  breaking bulk 
E)  accumulating bulk

Question 7

Many firms are using outsourcing or third-party logistics to better focus on their core business.

Accepted Answer

A) True 
 B)False

Question 8

________ refers to companies handing over most or all of their supply chain activities to third-party organizations that are experts in those areas.

Accepted Answer

A)  Creating assortments 
B)  Outsourcing 
C)  Channel integration 
D)  Disintermediation 
E)  Breaking bulk

Question 9

A vertical ________ system consists of vertically aligned networks behaving and performing as a unified system.

Accepted Answer

A)  insourcing 
B)  marketing 
C)  assortment 
D)  allowance 
E)  inventory

Question 10

Describe two advantages of e-tailing and two disadvantages.
$\underline{Advantages}$
1. Extensive Selection: No other channel offers the breadth and depth of selection. From information search to purchase, the Internet gives consumers greater access to more choices and different product options.
2. Considerable Information Available for Product Research and Evaluation: The Internet dramatically expands consumers' knowledge, offering an almost unlimited number of websites that research, evaluate, and recommend products and services. From retailers (Best Buy in electronics) to independent testing organizations (CNet in technology), consumers can find information on anything.
3. Build Product Communities: The Internet brings together groups of individuals with a shared interest to create virtual communities. These communities share information, ideas, and product information.
4. Individualized Customer Experience: The Internet allows a great deal of personalization for both the consumer and the company. Consumers can get one-on-one interaction from a customer service representative and create their own web content based on personal preferences. At the same time, companies can tailor messages and web content by analyzing consumer web history. The end result is a more customized, personal experience for the consumer.
$\underline{Disadvantages}$
1. Easier for Customers to Walk Away: The customer is in total control of the web experience and has the opportunity to walk away at any time. In sharp contrast to a personal-selling situation or even a retail store, the customer can simply click to another site. This puts additional pressure on the website to attract and then hold on to visitors.
2. Reduced Ability to Sell Features and Benefits: Websites incorporate sophisticated tools to display and highlight critical features and benefits. However, unless the customer initiates additional contact via web live chat, phone, or e-mail, it can prove challenging to engage the customer to answer questions or deal with objections.
3. Security of Personal Data: Over the past several years, numerous highly publicized data security breaches have occurred involving e-retailers (as well as retail stores). While companies work hard to make their websites secure and keep personal data such as credit card numbers private, many consumers still have concerns about the security of their data. These concerns lead some consumers to limit their electronic purchases.

Accepted Answer

The answer of Describe two advantages of e-tailing and two...

Question 11

Venus Office Supplies offers customers a $0.50 coupon for turning in their empty printer cartridges. Venus collects the cartridges and then returns them to the producer for recycling. This is an example of ________.

Accepted Answer

A)  outbound logistics 
B)  inbound logistics 
C)  reverse logistics 
D)  order processing 
E)  reducing transactions

Question 12

Expert power is when channel members adopt an approach of utilizing their unique competencies to influence others in the channel.

Accepted Answer

A) True 
 B)False

Question 13

In evaluating a website, one of the key measures is its "stickiness," which refers to the amount of time visitors remain and explore a site.

Accepted Answer

A) True 
 B)False

Question 14

Electronic retailing is the communication and sale of products or services to consumers over the Internet.

Accepted Answer

A) True 
 B)False

Question 15

The lead player in an administered VMS is called the channel captain.

Accepted Answer

A) True 
 B)False

Question 16

A(n) ________ represents all organizations involved in providing a firm, the members of its channels of distribution, and its end-user consumers and business users.

Accepted Answer

A)  value chain 
B)  supply chain 
C)  virtual channel 
D)  direct channel 
E)  indirect channel

Question 17

In the context of the distribution channel, which of the following takes title to a product?

Accepted Answer

A)  product promoters 
B)  merchant intermediaries 
C)  agent intermediaries 
D)  brokers 
E)  commission dealers

Question 18

When a supplier creates a restrictive agreement that prohibits intermediaries that handle its product from selling competing firms' products, ________ has occurred.

Accepted Answer

A)  just-in-time (JIT) inventory control 
B)  materials requirement planning (MRP) 
C)  exclusive dealing 
D)  exclusive territory 
E)  tying contract

Question 19

When a channel member is respected, admired, or revered based on one or more attributes, that member enjoys ________ power within the channel.

Accepted Answer

A)  coercive 
B)  reward 
C)  expert 
D)  referent 
E)  legitimate

Question 20

Physical distribution, or logistics, is the integrated process of moving input materials to the producer, in-process inventory through the firm, and finished goods out of the firm through the channel of distribution.

Accepted Answer

A) True 
 B)False

Exam 12: Manage Marketing Channels, Logistics, and Supply Chain

In an ideal supply chain, materials of all kinds are handled as many times as possible.

A vertical marketing system (VMS) consists of vertically aligned networks behaving and performing as a unified system. Explain the three different ways they can be set up.

A ________ eliminates many in-house business functions and activities in favor of focusing only on those aspects for which it is best equipped to add value.

________ enhance utilities by providing a wide array of specific functions including physical distribution functions, transaction and communication functions, and facilitating functions.

A vertical marketing system is comprised of independent entities.

Good Egg Co. buys eggs from local farmers, sorts them into different grades, and then packages them to sell to larger grocers. Good Egg Co. is performing the distribution function of ________.

Many firms are using outsourcing or third-party logistics to better focus on their core business.

________ refers to companies handing over most or all of their supply chain activities to third-party organizations that are experts in those areas.

A vertical ________ system consists of vertically aligned networks behaving and performing as a unified system.

Venus Office Supplies offers customers a $0.50 coupon for turning in their empty printer cartridges. Venus collects the cartridges and then returns them to the producer for recycling. This is an example of ________.

Expert power is when channel members adopt an approach of utilizing their unique competencies to influence others in the channel.

In evaluating a website, one of the key measures is its "stickiness," which refers to the amount of time visitors remain and explore a site.

Electronic retailing is the communication and sale of products or services to consumers over the Internet.

The lead player in an administered VMS is called the channel captain.

A(n) ________ represents all organizations involved in providing a firm, the members of its channels of distribution, and its end-user consumers and business users.

In the context of the distribution channel, which of the following takes title to a product?

When a supplier creates a restrictive agreement that prohibits intermediaries that handle its product from selling competing firms' products, ________ has occurred.

When a channel member is respected, admired, or revered based on one or more attributes, that member enjoys ________ power within the channel.

Physical distribution, or logistics, is the integrated process of moving input materials to the producer, in-process inventory through the firm, and finished goods out of the firm through the channel of distribution.