Question 1

Before consumers see a movie,it is assigned a rating such as G or PG based on its language and content.This rating system is most closely related to which facilitating function activity performed by marketing intermediaries?

Accepted Answer

A) grading 
B) sorting 
C) risk taking 
D) marketing 
E) assorting

Question 2

Selective distribution refers to

Accepted Answer

A) the density of distribution whereby a firm tries to place its products or services in as many outlets as possible. 
B) the distribution of products or services in markets where there are currently no other competitors. 
C) the distribution of products or services where the producer owns the entire channel of distribution. 
D) the density of distribution whereby a firm tries to place its products or services with only one retail outlet in a specified geographical area. 
E) the density of distribution whereby a firm tries to place its products or services in a few retail outlets in a specific area.

Question 3

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 4

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 5

A firm needs to drive down logistics costs as long as it can deliver expected __________.

Accepted Answer

A) balance sheet results 
B) customer service 
C) low levels of expenses 
D) product-market synergies 
E) target market goals

Question 6

An inventory-management system whereby the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items is referred to as __________.

Accepted Answer

A) supplier-managed inventory 
B) supply chain inventory 
C) logistics-managed inventory 
D) just-in-time inventory management 
E) vendor-managed inventory

Question 7

The practice that involves unloading products from suppliers,sorting products for individual stores,and quickly reloading products on trucks that will deliver the products to specific stores is referred to as __________.

Accepted Answer

A) just-in-time (JIT)delivery 
B) intermodal distribution 
C) immediate response system (ERS) 
D) piggy-backing 
E) cross-docking

Question 8

MachineTools.com sells grinders,boring mills,and engine lathes.Its website lists products from over 700 machinery manufacturers,2,500 distributors of new equipment,and 650 dealers of used inventory for sale.MachineTools.com relies on a well-established channel of manufacturers,distributors,and machinery dealers to provide the merchandise that is sold through this

Accepted Answer

A) electronic government channel. 
B) virtual marketing channel. 
C) World Wide Web networks. 
D) mediated channel. 
E) Internet marketing channel.

Question 9

In choosing the appropriate marketing channel,a firm should consider the interests that buyers might want fulfilled.These interests fall into four broad categories: (1)information; (2)convenience; (3)__________;and (4)pre- or postsale services.

Accepted Answer

A) availability 
B) quality 
C) variety 
D) brand name recognition 
E) adaptability

Question 10

Which of the following statements BEST DESCRIBES how a supply chain differs from a marketing channel?

Accepted Answer

A) Communication is more important in the marketing channel than in the supply chain. 
B) The marketing channel places more emphasis on cost-effectiveness than the supply chain. 
C) A marketing channel includes suppliers that provide raw material inputs to a manufacturer. 
D) A supply network moves materials from producer to consumer while a marketing channel moves materials from the supplier to the producer. 
E) A supply chain includes suppliers;marketing channels do not.

Question 11

Which type of marketing channel arrangement is especially good for a firm to use in global marketing where the creation of marketing channel relationships is expensive and time consuming?

Accepted Answer

A) dual distribution 
B) cooperative distribution 
C) strategic channel alliance 
D) global distribution alliance 
E) multichannel distribution

Question 12

A channel that includes intermediaries that are between the producer and consumers and perform numerous channel functions is referred to as a(n)

Accepted Answer

A) indirect channel. 
B) direct channel. 
C) multilevel channel. 
D) full-service channel. 
E) limited-service channel

Question 13

Horizontal conflict refers to conflict that occurs between

Accepted Answer

A) two different levels in a marketing channel. 
B) members of upper management who make the marketing channel decisions and lower management who must implement these decisions. 
C) two producers of the same product vying for the same distribution channel members. 
D) two members in the same level of a marketing channel. 
E) a firm's and its customers' goals.

Question 14

Resale restrictions have been prosecuted under the Sherman Act.Today,however,the courts apply the "__________" in such cases and consider whether such restrictions have a "demonstrable economic effect."

Accepted Answer

A) laissez faire rule 
B) caveat emptor principle 
C) rule of reason 
D) invisible hand standard 
E) FTC Act provision

Question 15

A __________ is common in the soft drink industry where the manufacturer sells its concentrate to wholesalers,who carbonate it,and market the finished product to retailers.

Accepted Answer

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

Question 16

A direct channel is when

Accepted Answer

A) producers and end-users deal with each other on a one-on-one basis. 
B) the producer and consumer and perform numerous channel functions. 
C) a firm reaches different buyers by employing two or more different types of channels for the same basic product. 
D) an intermediary sells to other intermediaries,usually to retailers in consumer markets. 
E) an agent or broker brings ultimate consumers to manufacturers.

Question 17

In choosing the appropriate marketing channel,a firm should consider the interests that buyers might want fulfilled.These interests fall into four broad categories: (1)information; (2)convenience; (3)variety;and (4)__________.

Accepted Answer

A) availability 
B) quality 
C) brand name recognition 
D) price 
E) pre- or postsale services

Question 18

21st Century Fox is the new name for its broadcast/cable TV networks and TV/movie studios.Since most of the shows produced at its TV production unit and many of the movies made at its studio are only televised on its cable TV networks,21st Century Fox is an example of a(n)

Accepted Answer

A) corporate vertical marketing system. 
B) integrated marketing system. 
C) contractual vertical marketing system. 
D) corporate horizontal marketing system. 
E) contractual horizontal marketing system.

Question 19

A vendor-managed inventory system refers to 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

Which of the following types of vertical marketing systems is the LEAST LIKELY to experience channel conflict?

Accepted Answer

A) corporate vertical marketing system 
B) wholesaler-sponsored voluntary chain 
C) retailer-sponsored cooperative 
D) franchise system 
E) administered vertical marketing system

Exam 15: Managing Marketing Channels and Supply Chains