Question 1

The two types of channel conflict are

Accepted Answer

A) wholesaler and retailer. 
B) horizontal and vertical. 
C) transactional and promotional. 
D) external and internal. 
E) producer and consumer. 
A) wholesaler and retailer. 
B) horizontal and vertical. 
C) transactional and promotional. 
D) external and internal. 
E) producer and consumer.

Question 2

One consideration in choosing a marketing channel is profitability, which is determined by the margins earned for each channel member and for the channel as a whole. Based on this information, which of the following statements would be most accurate?

Accepted Answer

A) The more responsibilities a channel member takes in terms of distribution, advertising, and selling expenses, the greater the potential for manufacturer profitability. 
B) The more responsibilities the manufacturer assumes relative to its channel members, the greater the potential for profitability. 
C) The extent to which channel members share costs determines the margins received by each member and by the channel as a whole. 
D) While channel members can increase profitability by taking on distribution and selling expenses, advertising expenses should always remain with the manufacturer if a firm is looking for the greatest profitability. 
E) Profitability is not related to the length or nature of the distribution chain but determined by the manufacturer. 
A) The more responsibilities a channel member takes in terms of distribution, advertising, and selling expenses, the greater the potential for manufacturer profitability. 
B) The more responsibilities the manufacturer assumes relative to its channel members, the greater the potential for profitability. 
C) The extent to which channel members share costs determines the margins received by each member and by the channel as a whole. 
D) While channel members can increase profitability by taking on distribution and selling expenses, advertising expenses should always remain with the manufacturer if a firm is looking for the greatest profitability. 
E) Profitability is not related to the length or nature of the distribution chain but determined by the manufacturer.

Question 3

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 
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 4

Which of the following statements regarding corporate vertical marketing systems is most accurate?

Accepted Answer

A) Corporate vertical marketing systems can use either forward integration or backward integration but not both. 
B) Corporate vertical marketing systems increase distribution costs. 
C) Corporate vertical marketing systems increase investment but decrease fixed costs. 
D) Corporate vertical marketing systems are only effective with low-end consumer products. 
E) Corporate vertical marketing systems offer more control over supply sources or resale of products. 
A) Corporate vertical marketing systems can use either forward integration or backward integration but not both. 
B) Corporate vertical marketing systems increase distribution costs. 
C) Corporate vertical marketing systems increase investment but decrease fixed costs. 
D) Corporate vertical marketing systems are only effective with low-end consumer products. 
E) Corporate vertical marketing systems offer more control over supply sources or resale of products.

Question 5

-Which of the channels shown in the Channel Sales and Profit Marketing Dashboard above represents the LEAST profit to the manufacturer?

Accepted Answer

A) furniture store chains 
B) independent furniture stores 
C) department store chains 
D) mass merchandisers 
E) warehouse clubs 
A) furniture store chains 
B) independent furniture stores 
C) department store chains 
D) mass merchandisers 
E) warehouse clubs

Question 6

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. 
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 7

Channel conflict that arises when one member bypasses another member and sells or buys products direct is referred to as __________.

Accepted Answer

A) horizontal conflict 
B) channel circumvention 
C) lateral conflict 
D) disintermediation 
E) dual distribution 
A) horizontal conflict 
B) channel circumvention 
C) lateral conflict 
D) disintermediation 
E) dual distribution

Question 8

Assembling and protecting products at a convenient location to offer better customer service would be an example of a __________ function performed by a channel intermediary.

Accepted Answer

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

Question 9

Total logistics costs refer to

Accepted Answer

A) the design, installation, and maintenance of in-store displays, cabinets, and free standing promotional materials for retail outlets. 
B) expenses associated with activities performed by brokers and agents to bring buyers and sellers together. 
C) expenditures associated with the clerical or bookkeeping side of the procurement process, which include purchase, design, and maintenance of the EDI system. 
D) expenses associated with product adaptations that are made by the manufacturer in response to the needs of a channel member closest to the consumer. 
E) expenses associated with transportation, materials handling and warehousing, inventory, stockouts, order processing, and return products handling. 
A) the design, installation, and maintenance of in-store displays, cabinets, and free standing promotional materials for retail outlets. 
B) expenses associated with activities performed by brokers and agents to bring buyers and sellers together. 
C) expenditures associated with the clerical or bookkeeping side of the procurement process, which include purchase, design, and maintenance of the EDI system. 
D) expenses associated with product adaptations that are made by the manufacturer in response to the needs of a channel member closest to the consumer. 
E) expenses associated with transportation, materials handling and warehousing, inventory, stockouts, order processing, and return products handling.

Question 10

Firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others employ a __________.

Accepted Answer

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

Question 11

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

Question 12

As the number of intermediaries between a producer and buyer increases, the channel is viewed as increasing in __________.

Accepted Answer

A) variety 
B) scope 
C) depth 
D) scale 
E) length 
A) variety 
B) scope 
C) depth 
D) scale 
E) length

Question 13

-Figure 12-3 above depicts the four most common marketing channels for consumer products and services. W represents

Accepted Answer

A) consumers. 
B) industrial users. 
C) wholesalers. 
D) agents or brokers. 
E) retailers. 
A) consumers. 
B) industrial users. 
C) wholesalers. 
D) agents or brokers. 
E) retailers.

Question 14

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. 
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 15

A(n) __________ exists when producers and ultimate consumers deal one-on-one with each other.

Accepted Answer

A) strategic channel alliance 
B) direct channel 
C) horizontal marketing exchange 
D) indirect channel 
E) dual distribution channel 
A) strategic channel alliance 
B) direct channel 
C) horizontal marketing exchange 
D) indirect channel 
E) dual distribution channel

Question 16

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. 
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 17

Walmart is a channel captain because of its strong image, number of outlets, and purchasing volume. The source of Walmart's power is its

Accepted Answer

A) economic influence. 
B) expertise. 
C) identification with a particular channel member. 
D) legitimate rights through contracts. 
E) political connections. 
A) economic influence. 
B) expertise. 
C) identification with a particular channel member. 
D) legitimate rights through contracts. 
E) political connections.

Question 18

Often companies must choose between a responsive supply chain and an efficient supply chain. This decision is based on __________.

Accepted Answer

A) the specific needs of customer segments 
B) monetary considerations 
C) supplier alternatives 
D) the business mission 
E) a lack of an appropriate channel captain 
A) the specific needs of customer segments 
B) monetary considerations 
C) supplier alternatives 
D) the business mission 
E) a lack of an appropriate channel captain

Question 19

Egg distributors determine the relative quality of the product and put a rating on the packaging, such as Grade A or Grade AA. 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 
A) grading 
B) sorting 
C) risk taking 
D) marketing 
E) assorting

Question 20

International Products, a Burlington, New Jersey, firm that sells industrial cleansers and lubricants, wanted to sell its product to factories, hospitals, and labs in China, but it did not have the necessary expertise. As a result, International Products hired Asia Marketing & Management to sell, stock, and deliver a full assortment of products to the Chinese market. Asia Marketing & Management is an example of a(n) __________.

Accepted Answer

A) agent 
B) wholesaler 
C) global agent 
D) retailer 
E) industrial distributor 
A) agent 
B) wholesaler 
C) global agent 
D) retailer 
E) industrial distributor

The two types of channel conflict are

One consideration in choosing a marketing channel is profitability, which is determined by the margins earned for each channel member and for the channel as a whole. Based on this information, which of the following statements would be most accurate?

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?

Which of the following statements regarding corporate vertical marketing systems is most accurate?

-Which of the channels shown in the Channel Sales and Profit Marketing Dashboard above represents the LEAST profit to the manufacturer?

A vendor-managed inventory system refers to an

Channel conflict that arises when one member bypasses another member and sells or buys products direct is referred to as __________.

Assembling and protecting products at a convenient location to offer better customer service would be an example of a __________ function performed by a channel intermediary.

Total logistics costs refer to

Firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others employ a __________.

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 __________.

As the number of intermediaries between a producer and buyer increases, the channel is viewed as increasing in __________.

-Figure 12-3 above depicts the four most common marketing channels for consumer products and services. W represents

Vertical marketing systems refer to

A(n) __________ exists when producers and ultimate consumers deal one-on-one with each other.

Reverse logistics refers to

Walmart is a channel captain because of its strong image, number of outlets, and purchasing volume. The source of Walmart's power is its

Often companies must choose between a responsive supply chain and an efficient supply chain. This decision is based on __________.

Egg distributors determine the relative quality of the product and put a rating on the packaging, such as Grade A or Grade AA. This rating system is most closely related to which facilitating function activity performed by marketing intermediaries?

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Successful Products, Services, and Brands

Pricing Products and Services

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Filters

Exam 12: Managing Marketing Channels and Supply Chains

The two types of channel conflict are

One consideration in choosing a marketing channel is profitability, which is determined by the margins earned for each channel member and for the channel as a whole. Based on this information, which of the following statements would be most accurate?

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?

Which of the following statements regarding corporate vertical marketing systems is most accurate?

-Which of the channels shown in the Channel Sales and Profit Marketing Dashboard above represents the LEAST profit to the manufacturer?

A vendor-managed inventory system refers to an

Channel conflict that arises when one member bypasses another member and sells or buys products direct is referred to as __________.

Assembling and protecting products at a convenient location to offer better customer service would be an example of a __________ function performed by a channel intermediary.

Total logistics costs refer to

Firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others employ a __________.

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 __________.

As the number of intermediaries between a producer and buyer increases, the channel is viewed as increasing in __________.

-Figure 12-3 above depicts the four most common marketing channels for consumer products and services. W represents

Vertical marketing systems refer to

A(n) __________ exists when producers and ultimate consumers deal one-on-one with each other.

Reverse logistics refers to

Walmart is a channel captain because of its strong image, number of outlets, and purchasing volume. The source of Walmart's power is its

Often companies must choose between a responsive supply chain and an efficient supply chain. This decision is based on __________.

Egg distributors determine the relative quality of the product and put a rating on the packaging, such as Grade A or Grade AA. This rating system is most closely related to which facilitating function activity performed by marketing intermediaries?

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Successful Products, Services, and Brands

Pricing Products and Services

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Filters