Question 1

An example of __________ is when Kraft Foods uses the distribution system of Ajinomoto, a major Japanese food company, to market its Maxwell House coffee in Japan.

Accepted Answer

A) a direct marketing channel 
B) an industrial distribution system 
C) a dual distribution system 
D) a franchising operation 
E) a strategic channel alliance

Question 2

Define and describe at least one similarity and one difference between dual distribution and a strategic channel alliance.

Accepted Answer

The answer of Define and describe at least one similarity...

Question 3

Indirect channels for consumer products

Accepted Answer

A) occur when one firm's marketing channels are used to sell another firm's products. 
B) include producers and end users dealing directly with each other. 
C) include intermediaries that are between the producer and consumer and perform numerous channel functions. 
D) are arrangements whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. 
E) occurs when a retailer sells its product in a store and on the Internet.

Question 4

Procter & Gamble can obtain cooperation from supermarkets in terms of displaying, promoting, and pricing its products, given its broad assortment of brand-name products. Which type of vertical marketing system does Procter & Gamble represent?

Accepted Answer

A) corporate vertical marketing system 
B) integrated vertical marketing system 
C) contractual vertical marketing system 
D) administered vertical marketing system 
E) forward integration vertical marketing system

Question 5

A textile artist can buy fabric, thread, and batting, create an heirloom quilt, and then sell the finished work to customers in a kiosk decorated with some of the quilts produced to entice customers who shop at the local mall. By designing the quilts and kiosk with aesthetic value, the artist creates __________ utility.

Accepted Answer

A) application 
B) possession 
C) time 
D) place 
E) form

Question 6

Manufacturers most likely would use exclusive distribution for which of the following products?

Accepted Answer

A) Timex watches, Hanes underwear, and Nike shoes 
B) Chanel perfume, Steinway pianos, and Baccarat crystal 
C) Oreos, Teddy Grahams, and Nilla Wafers 
D) paper clips, light bulbs, and file folders 
E) Lean Cuisine meals, Breyer's Ice Cream, and Coca-Cola

Question 7

Cessna is considered the volume leader in the executive jet market. It has been described as "almost totally vertically integrated." This quote means that Cessna

Accepted Answer

A) does not fall under the jurisdiction of any federal regulatory agency. 
B) owns several of the entities that would make up the traditional marketing channel. 
C) has eliminated economies of scale. 
D) has achieved a high level of social responsibility. 
E) uses outsourcing for all component parts and materials.

Question 8

The Limited employs a quick response system to order fast-moving fashion items. The Limited's point-of-sale scanner records each sale. When inventory falls below a minimum level, the system automatically sends an electronic order to the manufacturer, which processes the order immediately. This system has effectively reduced

Accepted Answer

A) dependability. 
B) product flow. 
C) replenishment time. 
D) supply lag. 
E) logistical lag.

Question 9

Another name for order cycle time is

Accepted Answer

A) physical distribution sequence. 
B) total logistics cycle. 
C) replenishment time. 
D) logistical support time. 
E) billing cycle.

Question 10

CPW (Cereals Partners Worldwide) is a __________ designed from the start to be a global business. It joined the cereal manufacturing and marketing capability of General Mills with the distribution clout of Nestlé.

Accepted Answer

A) dual distribution partnership 
B) multichannel distribution system 
C) cooperative distribution channel 
D) strategic channel alliance 
E) bilateral trade cooperative

Question 11

Intermediaries perform facilitating function activities, which assist producers in making products and services more attractive to buyers. These activities include

Accepted Answer

A) producing, assembling, and distributing. 
B) transportation and distribution. 
C) buying, selling, and risk-taking. 
D) assorting, sorting, and storing. 
E) financing, grading, and marketing information and research.

Question 12

A middleman is

Accepted Answer

A) a person or firm whose sole responsibility is bringing a buyer to the last link in the distribution chain. 
B) a person or firm whose sole responsibility is to find distributors for a manufacturer's products. 
C) any intermediary between a manufacturer and end-user markets. 
D) a person or firm that takes possession of a product and in some way alters it before passing it on to ultimate consumers. 
E) an intermediary that sells to ultimate consumers.

Question 13

Replenishment time refers to

Accepted Answer

A) the time lag from the inception of an idea until its initial commercialization. 
B) the time between the ordering of an item and when it is received and ready for use or sale. 
C) the time between the commercialization of a product and general acceptance of the product as no longer "new." 
D) the time lag between a new product entering the market and the market entry of the product's first competitor. 
E) the time between initial new-product promotion and product launch.

Question 14

A channel captain is

Accepted Answer

A) a member of a distribution channel that takes control through hegemony (power is not assigned, but assumed). 
B) a channel member (producer, wholesaler, or retailer) that coordinates, directs, and supports other channel members. 
C) a channel team member known for expertise in cutting through red tape. 
D) a person responsible for implementing a firm's mission statement, linking all members of the marketing channel through a common goal. 
E) the person with greatest authority who represents his or her channel in the distribution chain.

Question 15

When developing a distribution strategy, marketers should avoid the anticompetitive attempts to eliminate wholesalers or retailers if they want to avoid the possibility of violating the __________ provisions of the Clayton Act or the Sherman Act.

Accepted Answer

A) resale restrictions 
B) tying arrangements 
C) exclusive dealing 
D) refusal to deal 
E) dual distribution

Question 16

Many retailers who sell Campbell Soup products make purchases from Campbell under vendor-managed inventory programs. These retailers

Accepted Answer

A) have Campbell perform all materials handing activities. 
B) authorize Campbell Soup to eliminate as many wholesaling functions as possible from the supply chain. 
C) use a system in which Campbell Soup determines the product amount and assortment that should be in stock. 
D) authorize the use of distribution centers to provide quicker customer response times. 
E) balance their total logistics cost by eliminating the convenience service factor.

Question 17

The most important consideration in choosing a marketing channel when buyers have limited knowledge or desire specific data about a product or service is to provide

Accepted Answer

A) postsale services. 
B) seller adaptability. 
C) information. 
D) convenience. 
E) presale services.

Question 18

Cross-docking is most closely related to

Accepted Answer

A) efficient supply chains. 
B) intermodal transportation. 
C) responsive supply chains. 
D) reverse logistics. 
E) exclusive distribution.

Question 19

A vendor-managed inventory system is an

Accepted Answer

A) inventory supply system that operates with very low inventories and requires fast on-time delivery. 
B) inventory management system whereby the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items. 
C) inventory management system that is designed to reduce the retailer's lead time for receiving merchandise, which then lowers its inventory investment, improves customer service levels, and reduces logistic expenses. 
D) inventory supply system that relies on the judgment of individual warehouse managers based on daily reports from its retailer customers. 
E) inventory system that guarantees delivery within 48 hours, granting price reductions of 1 percent per hour if a shipment is delayed.

Question 20

An industrial distributor is

Accepted Answer

A) an intermediary that performs a variety of marketing channel functions involving selling, stocking, delivering a full product assortment, and financing. 
B) an intermediary that maintains its own sales force and performs all channel functions. 
C) an intermediary that deals exclusively with the selling, stocking, and delivery of raw materials used by manufacturers in the production of its products. 
D) an intermediary that deals with a single product line within a single industry. 
E) an intermediary that performs functions involving selling, stocking, and delivery of industrial goods but is unable to provide financing due to the normally large expenditures.

Exam 15: Managing Marketing Channels and Supply Chains