Question 1

What was the most likely reason for the failure of B2B online exchanges?

Accepted Answer

A)  Buyers were unable to purchase similar products from one site. 
B)  Exchanges overlooked the value provided by wholesalers. 
C)  Wholesaler consolidation eliminated most e-distributors. 
D)  Exchanges added an unnecessary and costly intermediary. 
E)  Grey market pricing was unexpected by the exchanges. 
A)  Buyers were unable to purchase similar products from one site. 
B)  Exchanges overlooked the value provided by wholesalers. 
C)  Wholesaler consolidation eliminated most e-distributors. 
D)  Exchanges added an unnecessary and costly intermediary. 
E)  Grey market pricing was unexpected by the exchanges.

Question 2

Which of the following is most likely a true statement about Ace Hardware?

Accepted Answer

A)  Ace dealers pay membership fees and receive stock to ensure a profitable system. 
B)  The primary competition for independent Ace stores is other dealer cooperatives. 
C)  Ace eliminated its private-label merchandise because of poor retail sales. 
D)  Ace focuses on independent dealers rather than operating its own stores. 
E)  Independent Ace stores are homogeneous, which simplifies distribution. 
A)  Ace dealers pay membership fees and receive stock to ensure a profitable system. 
B)  The primary competition for independent Ace stores is other dealer cooperatives. 
C)  Ace eliminated its private-label merchandise because of poor retail sales. 
D)  Ace focuses on independent dealers rather than operating its own stores. 
E)  Independent Ace stores are homogeneous, which simplifies distribution.

Question 3

A third-party logistics provider most likely ________.

Accepted Answer

A)  takes title to the products being handled 
B)  charges customers an activity-based fee 
C)  earns rewards for selling new products 
D)  resells products at wholesale prices 
E)  markets product for distributors 
A)  takes title to the products being handled 
B)  charges customers an activity-based fee 
C)  earns rewards for selling new products 
D)  resells products at wholesale prices 
E)  markets product for distributors

Question 4

Watson Wholesalers typically charges customers slightly higher product prices with the explanation that the services the firm provides are free.Which term best describes the strategy of Watson Wholesalers?

Accepted Answer

A)  activity-based costing 
B)  value-added pricing 
C)  fragmentation 
D)  consolidation 
E)  bundling 
A)  activity-based costing 
B)  value-added pricing 
C)  fragmentation 
D)  consolidation 
E)  bundling

Question 5

Which of the following activities would LEAST likely be handled by a master distributor?

Accepted Answer

A)  delivering products to other distributors 
B)  consolidating orders from manufacturers 
C)  providing marketing and advertising support 
D)  monitoring employee recruitment and training 
E)  helping manufacturers expand into new channels 
A)  delivering products to other distributors 
B)  consolidating orders from manufacturers 
C)  providing marketing and advertising support 
D)  monitoring employee recruitment and training 
E)  helping manufacturers expand into new channels

Question 6

What is the primary benefit of Ace managing the wholesale side of the business?

Accepted Answer

A)  providing better customer service 
B)  offering a heterogeneous inventory 
C)  ensuring that dealers are successful 
D)  keeping procurement costs down 
E)  customizing store offerings 
A)  providing better customer service 
B)  offering a heterogeneous inventory 
C)  ensuring that dealers are successful 
D)  keeping procurement costs down 
E)  customizing store offerings

Question 7

How did Volvo Trucks North America solve its parts distribution problem?

Accepted Answer

A)  fragmenting its global service outputs 
B)  establishing a holding company in Sweden 
C)  acquiring FedEx to form a new conglomeration 
D)  establishing multiple warehouses linked electronically 
E)  building a centralized warehouse near FedEx headquarters 
A)  fragmenting its global service outputs 
B)  establishing a holding company in Sweden 
C)  acquiring FedEx to form a new conglomeration 
D)  establishing multiple warehouses linked electronically 
E)  building a centralized warehouse near FedEx headquarters

Question 8

A(n)________enables buyers of similar products to source and purchase items from multiple suppliers from a single location.

Accepted Answer

A)  independent electronic exchange 
B)  online distribution center 
C)  electronic auction house 
D)  book-and-ship website 
E)  online reverse auction 
A)  independent electronic exchange 
B)  online distribution center 
C)  electronic auction house 
D)  book-and-ship website 
E)  online reverse auction

Question 9

Which statement best explains the success of consumer co-ops in the French food sector?

Accepted Answer

A)  Grocery chains in France have historically supported direct selling and local food sourcing. 
B)  French consumers want intermediaries to conduct more safety inspections of food and wine. 
C)  Many French shoppers demand regional, organic foods and oppose conventional farming. 
D)  French shoppers appreciate the lower prices of food purchased directly from farmers. 
E)  Many French consumers support the government and its food standardization tactics. 
A)  Grocery chains in France have historically supported direct selling and local food sourcing. 
B)  French consumers want intermediaries to conduct more safety inspections of food and wine. 
C)  Many French shoppers demand regional, organic foods and oppose conventional farming. 
D)  French shoppers appreciate the lower prices of food purchased directly from farmers. 
E)  Many French consumers support the government and its food standardization tactics.

Question 10

The Ace Hardware Corporation was initially formed to ________.

Accepted Answer

A)  establish a vertically integrated firm 
B)  bypass wholesalers and reduce costs 
C)  compete with big box hardware stores 
D)  share marketing and advertising costs 
E)  provide product variety to consumers 
A)  establish a vertically integrated firm 
B)  bypass wholesalers and reduce costs 
C)  compete with big box hardware stores 
D)  share marketing and advertising costs 
E)  provide product variety to consumers

Question 11

Pittsfield Fabric,a U.S.manufacturer,is considering the idea of selling fabrics to European consumers.Which type of intermediary would most likely assist Pittsfield with this plan?

Accepted Answer

A)  export trading company 
B)  master distributor 
C)  commission agent 
D)  franchiser 
E)  retailer 
A)  export trading company 
B)  master distributor 
C)  commission agent 
D)  franchiser 
E)  retailer

Question 12

According to the text,what was the primary reason for the consolidation of pharmaceutical wholesalers?

Accepted Answer

A)  closure of small pharmacies 
B)  automation of picking tasks 
C)  research into new medications 
D)  deregulation by the government 
E)  investments by global organizations 
A)  closure of small pharmacies 
B)  automation of picking tasks 
C)  research into new medications 
D)  deregulation by the government 
E)  investments by global organizations

Question 13

A wholesaler-distributor is LEAST likely to ________.

Accepted Answer

A)  be independently owned 
B)  operate from a warehouse 
C)  claim ownership of goods 
D)  sell products to end users 
E)  hold inventory for reshipping 
A)  be independently owned 
B)  operate from a warehouse 
C)  claim ownership of goods 
D)  sell products to end users 
E)  hold inventory for reshipping

Question 14

Wilson Wholesalers,an electrical component distributor,charges customers separate amounts for various services,such as inspecting components prior to packaging,using priority shipping,and sorting components by part number.Which term best describes the strategy used by Wilson Wholesalers?

Accepted Answer

A)  fee for service model 
B)  activity-based costing 
C)  service consolidation 
D)  fragmentation 
E)  bundling 
A)  fee for service model 
B)  activity-based costing 
C)  service consolidation 
D)  fragmentation 
E)  bundling

Question 15

Independent electronic exchanges rely on specialized software that allows bidders to submit progressively declining bids to win a customer's business.

Accepted Answer

A) True 
 B)False

Question 16

Why are cooperatives becoming popular in Japan?

Accepted Answer

A)  rising demand for service coordination 
B)  increasing number of small wholesalers 
C)  growing need to export goods overseas 
D)  changing demographics of consumers 
E)  decreasing length of marketing channels 
A)  rising demand for service coordination 
B)  increasing number of small wholesalers 
C)  growing need to export goods overseas 
D)  changing demographics of consumers 
E)  decreasing length of marketing channels

Question 17

What is the LEAST likely reason that some French farmers have stopped direct selling and started using intermediaries again?

Accepted Answer

A)  being expected to provide credit to buyers 
B)  having to promote products to build clientele 
C)  needing to locate where customers want to buy 
D)  matching crops to product assortment demands 
E)  complying with significant certification procedures 
A)  being expected to provide credit to buyers 
B)  having to promote products to build clientele 
C)  needing to locate where customers want to buy 
D)  matching crops to product assortment demands 
E)  complying with significant certification procedures

Question 18

Which term refers to a type of super wholesaler?

Accepted Answer

A)  master distributor 
B)  cooperative group 
C)  catalyst organization 
D)  channel exporter 
E)  industrial user 
A)  master distributor 
B)  cooperative group 
C)  catalyst organization 
D)  channel exporter 
E)  industrial user

Question 19

A manufacturer that invests in fragmentation when faced with wholesale consolidation is most likely ________.

Accepted Answer

A)  focusing on forward vertical integration 
B)  creating partnerships with large distributors 
C)  increasing its attractiveness to channel members 
D)  forming alliances with small wholesaler-distributors 
E)  developing additional channel power through outsourcing 
A)  focusing on forward vertical integration 
B)  creating partnerships with large distributors 
C)  increasing its attractiveness to channel members 
D)  forming alliances with small wholesaler-distributors 
E)  developing additional channel power through outsourcing

Question 20

What have been the positive and negative effects of e-commerce on wholesalers? How might online reverse auctions impact wholesalers?

Accepted Answer

E-commerce has changed but will not like

What was the most likely reason for the failure of B2B online exchanges?

Which of the following is most likely a true statement about Ace Hardware?

A third-party logistics provider most likely ________.

Watson Wholesalers typically charges customers slightly higher product prices with the explanation that the services the firm provides are free.Which term best describes the strategy of Watson Wholesalers?

Which of the following activities would LEAST likely be handled by a master distributor?

What is the primary benefit of Ace managing the wholesale side of the business?

How did Volvo Trucks North America solve its parts distribution problem?

A(n)________enables buyers of similar products to source and purchase items from multiple suppliers from a single location.

Which statement best explains the success of consumer co-ops in the French food sector?

The Ace Hardware Corporation was initially formed to ________.

Pittsfield Fabric,a U.S.manufacturer,is considering the idea of selling fabrics to European consumers.Which type of intermediary would most likely assist Pittsfield with this plan?

According to the text,what was the primary reason for the consolidation of pharmaceutical wholesalers?

A wholesaler-distributor is LEAST likely to ________.

Wilson Wholesalers,an electrical component distributor,charges customers separate amounts for various services,such as inspecting components prior to packaging,using priority shipping,and sorting components by part number.Which term best describes the strategy used by Wilson Wholesalers?

Independent electronic exchanges rely on specialized software that allows bidders to submit progressively declining bids to win a customer's business.

Why are cooperatives becoming popular in Japan?

What is the LEAST likely reason that some French farmers have stopped direct selling and started using intermediaries again?

Which term refers to a type of super wholesaler?

A manufacturer that invests in fragmentation when faced with wholesale consolidation is most likely ________.

What have been the positive and negative effects of e-commerce on wholesalers? How might online reverse auctions impact wholesalers?

Understanding Channel Strategies

End-User Analysis: Segmenting and Targeting

Channel Analysis: Auditing Marketing Channels

Make Versus Buy Channel Analysis

Designing Channel Structures and Strategies

Retailing Structures and Strategies

Franchising Structures and Strategies

Emerging Channel Structures and Strategies

Managing Channel Power

Managing Channel Conflict

Managing Channel Relationships

Managing Channel Policies and Legalities

Managing Channel Logistics

Filters

Exam 7: Wholesaling Structures and Strategies

What was the most likely reason for the failure of B2B online exchanges?

Which of the following is most likely a true statement about Ace Hardware?

A third-party logistics provider most likely ________.

Watson Wholesalers typically charges customers slightly higher product prices with the explanation that the services the firm provides are free.Which term best describes the strategy of Watson Wholesalers?

Which of the following activities would LEAST likely be handled by a master distributor?

What is the primary benefit of Ace managing the wholesale side of the business?

How did Volvo Trucks North America solve its parts distribution problem?

A(n)________enables buyers of similar products to source and purchase items from multiple suppliers from a single location.

Which statement best explains the success of consumer co-ops in the French food sector?

The Ace Hardware Corporation was initially formed to ________.

Pittsfield Fabric,a U.S.manufacturer,is considering the idea of selling fabrics to European consumers.Which type of intermediary would most likely assist Pittsfield with this plan?

According to the text,what was the primary reason for the consolidation of pharmaceutical wholesalers?

A wholesaler-distributor is LEAST likely to ________.

Wilson Wholesalers,an electrical component distributor,charges customers separate amounts for various services,such as inspecting components prior to packaging,using priority shipping,and sorting components by part number.Which term best describes the strategy used by Wilson Wholesalers?

Independent electronic exchanges rely on specialized software that allows bidders to submit progressively declining bids to win a customer's business.

Why are cooperatives becoming popular in Japan?

What is the LEAST likely reason that some French farmers have stopped direct selling and started using intermediaries again?

Which term refers to a type of super wholesaler?

A manufacturer that invests in fragmentation when faced with wholesale consolidation is most likely ________.

What have been the positive and negative effects of e-commerce on wholesalers? How might online reverse auctions impact wholesalers?

Understanding Channel Strategies

End-User Analysis: Segmenting and Targeting

Channel Analysis: Auditing Marketing Channels

Make Versus Buy Channel Analysis

Designing Channel Structures and Strategies

Retailing Structures and Strategies

Franchising Structures and Strategies

Emerging Channel Structures and Strategies

Managing Channel Power

Managing Channel Conflict

Managing Channel Relationships

Managing Channel Policies and Legalities

Managing Channel Logistics

Filters