Question 1

Dependability is the consistency of replenishment.This is important to all firms in a supply chain and to consumers.It can be broken into three elements: consistent lead time,safe delivery,and __________.

Accepted Answer

A) complete delivery 
B) honest and accurate pricing 
C) quality products 
D) product warranties 
E) a well-informed delivery staff

Question 2

The most indirect channel for consumer products incorporates agents,wholesalers,and retailers and is most commonly used when there

Accepted Answer

A) are only a few large manufacturers but many small retailers. 
B) are low-cost,low unit volume goods. 
C) is too large an inventory to be carried by wholesalers. 
D) are many small manufacturers and many small retailers. 
E) are many manufacturers with a limited inventory competing for a small group of retailers.

Question 3

__________ is an intermediary who sells to consumers.

Accepted Answer

A) agent 
B) retailer 
C) wholesaler 
D) distributor 
E) broker

Question 4

A variety of terms are used for marketing intermediaries.According to Figure 15-1 above,"B" represents a(n)__________.

Accepted Answer

A) retailer 
B) middleman 
C) wholesaler 
D) distributor 
E) agent or broker

Question 5

Which is the most common form of distribution intensity used today?

Accepted Answer

A) selective distribution 
B) intensive distribution 
C) extensive distribution 
D) exclusive distribution 
E) concentrated distribution

Question 6

There are four popular types of franchising: (1)__________; (2)manufacturer-sponsored wholesale franchise systems; (3)service-sponsored retail franchise systems;and (4)service-sponsored franchise systems.

Accepted Answer

A) contractual-sponsored franchise systems 
B) wholesaler-sponsored franchise systems 
C) manufacturer-sponsored retail franchise systems 
D) horizontal-marketing franchise systems 
E) customer-oriented franchise systems

Question 7

Under the Clayton Act,__________ with existing channel members may be illegal.

Accepted Answer

A) refusal to cooperate 
B) refusal to deal 
C) sharing proprietary information 
D) horizontal integration 
E) disintermediation

Question 8

A supplier's attempt to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may sell is referred to as __________.

Accepted Answer

A) full-line forcing 
B) exclusive dealing 
C) a refusal to deal 
D) a resale restriction 
E) a tying arrangement

Question 9

Walmart made a conscious decision to use a(n)__________ supply chain in order to best meet the needs of its consumers.

Accepted Answer

A) integrated 
B) responsive 
C) harmonized 
D) efficient 
E) multi-tiered

Question 10

Walmart's marketing strategy is to be a reliable,lower-price retailer for a wide variety of mass consumption consumer goods.This strategy favors a(n)__________ designed to deliver products to consumers at the lowest possible cost.

Accepted Answer

A) integrated supply chain 
B) global supply chain 
C) efficient supply chain 
D) responsive supply chain 
E) customer service supply chain

Question 11

Extending credit to customers would be an example of a __________ function.

Accepted Answer

A) transactional 
B) logistical 
C) facilitating 
D) buying 
E) risk taking

Question 12

Figure 15-4 above,depicts the four most common marketing channels for business products and services.Channel "B" would be an appropriate marketing channel for __________.

Accepted Answer

A) Cray supercomputers 
B) GE magnetic resonance imaging (MRI)machines 
C) John Deere excavators 
D) Fastenal industrial fasteners 
E) Marathon electrical motors

Question 13

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 14

Johnson Controls can receive an order for automobile seats from Ford and deliver the order four hours later,beginning with raw materials and ending with delivery of the finished seats to Ford.As used by Johnson Controls,logistics

Accepted Answer

A) creates utilities for Ford. 
B) provides Ford with a cost-effective dual distribution system. 
C) increases the number of steps in the value proposition creation process. 
D) includes the role of Johnson controls as a channel captain. 
E) does not influence Ford's supply chain.

Question 15

The typical order cycle include all of the following elements EXCEPT:

Accepted Answer

A) order processing. 
B) transportation. 
C) stockout reports. 
D) documentation. 
E) order transmittal.

Question 16

Apple now operates over 400 Apple Retail Stores around the world to sell its innovative products such as the iPhone and iPad.Apple uses __________.

Accepted Answer

A) dual distribution 
B) backward integration 
C) forward integration 
D) horizontal integration 
E) strategic channel alliances

Question 17

Supply chain managers balance total logistics cost factors against customer service factors.Customer service factors include

Accepted Answer

A) reliability,flexibility,consistency,and dependability. 
B) time,dependability,communication,and convenience. 
C) consistency,responsiveness,durability,and communication. 
D) time,assurance,responsiveness,and dependability. 
E) convenience,flexibility,time,and value.

Question 18

An administered vertical marketing system refers to a marketing system

Accepted Answer

A) that achieves coordination at successive stages of production and distribution by contractual agreements between channel members. 
B) that achieves coordination at successive stages of production and distribution by cooperation and consensus among all members of the marketing chain. 
C) that achieves coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership. 
D) where a channel member (producer,wholesaler,or retailer)is elected to coordinate,direct,and support all other channel members. 
E) that is run and coordinated completely outside the traditional chain of distribution by a firm that specializes in that industry's specific logistics needs.

Question 19

Which of the following statements regarding supply chain customer service is most accurate?

Accepted Answer

A) The output of a supply chain is measured in total units sold. 
B) Customer service must be balanced against total logistics cost factors. 
C) The output of a supply chain is measured either in total units sold or total number of customers served. 
D) A firm's goal should be to provide superior customer service regardless of costs. 
E) Customer service is the responsibility of marketing channel members and not the supplier network.

Question 20

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 a(n)

Accepted Answer

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

Exam 15: Managing Marketing Channels and Supply Chains