Question 1

A level of distribution density whereby only one retailer in a geographical area carries the firm's products is referred to as __________.

Accepted Answer

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

Question 2

There are three types of contractual vertical marketing systems.List the systems and provide a brief description of each.

Accepted Answer

The answer of There are three types of contractual vertical...

Question 3

Creating product assortments from several sources to serve customers would be an example of a __________ function.

Accepted Answer

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

Question 4

An imprecise terms for intermediaries who perform a variety of functions,including selling,maintaining inventories,extending credit,and so on,are referred to as __________.

Accepted Answer

A) agents 
B) brokers 
C) retailers 
D) wholesalers 
E) distributors

Question 5

Physically moving a product to customers would be an example of a __________ function.

Accepted Answer

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

Question 6

Breath mints,bottled water,and batteries would most likely use which type of distribution density?

Accepted Answer

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

Question 7

The most indirect marketing channel is employed where many small manufacturers and many small retailers and other intermediaries are used to help coordinate a large supply of the product.This channel is represented in Channel "D" in Figure 15-3 above.Which of the following products would most likely be marketed using this kind of channel?

Accepted Answer

A) Aspen dental services 
B) Toyota automobiles 
C) Leslie pool supplies 
D) Jaipur rugs made in India 
E) Hershey's candy bars

Question 8

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 9

Industrial distributors perform functions that are most like which intermediary in the consumer products marketing channel?

Accepted Answer

A) manufacturers 
B) retailers 
C) agents 
D) wholesalers 
E) brokers

Question 10

Sports Port,a motorcycle and fishing boat retailer located in a small northern Minnesota town,was the world's largest dealer for Crestliner fishing boats.In order to meet the demand of his many customers,the owner of Sports Port works with a wide variety of channel members,ranging from the manufacturer of the boats to trucking firms,other retailers,and even detailers (firms that clean,polish,and wax boats).Such a diverse channel of distribution often resulted in channel conflict.However,due to his strong consumer following,the owner of Sports Port had the power to resolve disputes between channel members.The owner of Sports Port serves as the __________ in the channel of distribution.

Accepted Answer

A) wholesaler 
B) producer 
C) channel spokesperson 
D) channel captain 
E) channel arbitrator

Question 11

Which buyer requirement would be MOST IMPORTANT in choosing a channel for a financial service for a consumer 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 12

Forward integration means

Accepted Answer

A) a retailer owns a manufacturing operation. 
B) a wholesaler owns a manufacturing operation. 
C) retailers form a strategic channel alliance with manufacturers to purchase products at better prices since they are able to place much larger orders. 
D) a producer owns an intermediary at the next level down in the marketing channel. 
E) all links in the distribution chain own stock in the manufacturer's company.

Question 13

Reverse logistics refers to

Accepted Answer

A) the collection of used goods donated from 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 14

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

Accepted Answer

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

Question 15

The practice of organizing the 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 is referred to as __________.

Accepted Answer

A) the inventory management process 
B) logistics management 
C) production management 
D) manufacturer distribution logistics 
E) supply-chain management

Question 16

Vertical marketing systems refer to

Accepted Answer

A) professionally managed geographically dispersed marketing channels designed to achieve channel economies and maximize marketing impact. 
B) professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. 
C) retailer-sponsored cooperatives where small,independent retailers form an organization that operates a wholesale facility cooperatively. 
D) professionally managed geographically dispersed marketing channels that are controlled through strategic channel alliances. 
E) channel partnerships that share responsibility for ordering and physically distributing each other's products.

Question 17

The Clayton Act prohibits,restricts,or influences all of the following channel strategies and practices EXCEPT:

Accepted Answer

A) exclusive dealing 
B) refusal to deal 
C) resale restrictions 
D) vertical integration 
E) full-line forcing

Question 18

Nestlé and General Mills have __________ to distribute General Mills products like Cheerios in about 140 markets worldwide.

Accepted Answer

A) multichannel distribution 
B) a direct marketing channel 
C) a cooperative distribution channel 
D) a strategic channel alliance 
E) a dual distribution agreement

Question 19

Within the context of a supply chain,__________ is the ability of a logistics system to satisfy users in terms of time,dependability,communication,and convenience.

Accepted Answer

A) quick response 
B) customer service 
C) distribution management 
D) efficient consumer response 
E) lead time

Question 20

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

Exam 15: Managing Marketing Channels and Supply Chains