Question 1

Which of the following defines a just-in-time logistic system?

Accepted Answer

A)  where producers and retailers carry only small inventories of merchandise lasting for a few days
B)  where retailers have products in storage for long periods to avoid interruption in supply
C)  where producers supply products to the sellers well in advance
D)  where producers only supply products when specific instructions are obtained for the products from sellers
E)  where producers carry a large supply of parts and store them until sellers take possession of them A

Question 2

Explain multichannel distribution with an example.

Accepted Answer

(Students' answers may vary.The answer given below is indicative.)
Multichannel marketing occurs when a single firm sets up two or more marketing channels to reach one or more customer segments.For example,John Deere,a manufacturer of agricultural machinery,sells its familiar green and yellow lawn and garden tractors,mowers,and outdoor power products to consumers and commercial users through several channels,including John Deere retailers,Lowe's home improvement stores,and online.It sells and services its tractors,combines,planters,and other agricultural equipment through its premium John Deere dealer network.It sells large construction and forestry equipment through selected large,full-service John Deere dealers and their sales forces.

Question 3

Exclusive dealing that negatively affects competition is outlawed under the Clayton Act of 1914.

Accepted Answer

A) True 
 B)False  True

Question 4

In an administered VMS,the producer assumes the leadership position in the distribution channel by default.

Accepted Answer

A) True 
 B)False

Question 5

In supply chain management,moving products and materials from suppliers to the factory is known as ________.

Accepted Answer

A)  outbound distribution
B)  reverse distribution
C)  inbound distribution
D)  frequency distribution
E)  inventory distribution

Question 6

Crowbar Records used to sell its music,in CDs,through a network of retail outlets,record stores,and music dealers.After the advent of MP3 technology,it decided to shift from using any of these agents and sell its music directly from the company's Web site,using personal mail,and other social networking techniques to inform potential customers about upcoming music and promotions.Which of the following did Crowbar exhibit when it decided not to use external dealers to sell its music?

Accepted Answer

A)  disintermediation
B)  networking
C)  brokering
D)  franchising
E)  licensing

Question 7

Introducing distributors into the distributional chain increases the number of channel transactions between the manufacturer and customer.

Accepted Answer

A) True 
 B)False

Question 8

Pastaliano is a restaurant that exclusively sells Italian food,headquartered in Illinois.The restaurant owners expressed an interest in opening a Pastaliano outlet in the U.K.They were contacted by 2Clover Tradings,situated in the U.K.,who were interested in buying the Pastaliano trademarked recipes and opening an outlet for them.Pastaliano gave the rights to its recipes to 2Clover Tradings,who then opened an outlet in the U.K.under the Pastaliano brand name.Which of the following kinds of marketing systems does Pastaliano have with 2Clover Tradings?

Accepted Answer

A)  horizontal marketing system
B)  direct marketing system
C)  administered vertical marketing system
D)  contractual vertical marketing system
E)  corporate vertical marketing system

Question 9

In a vertical marketing system,the producers do not use intermediaries to sell their products.

Accepted Answer

A) True 
 B)False

Question 10

A ________ is a channel structure in which producers,wholesalers,and retailers act as a unified system.In such a structure,one channel member owns the others,has contracts with them,or has so much power that they all cooperate.

Accepted Answer

A)  direct marketing system
B)  horizontal distribution channel
C)  logistical marketing system
D)  conventional distribution channel
E)  vertical marketing system

Question 11

A company that has no intermediary levels sells its products directly to its customers.

Accepted Answer

A) True 
 B)False

Question 12

In the logistics system,minimum distribution costs imply ________.

Accepted Answer

A)  flexible assortments
B)  larger shipping lots
C)  rapid delivery
D)  large inventories
E)  liberal returns policies

Question 13

Marketing channel design calls for analyzing consumer needs,setting channel objectives,identifying major channel alternatives,and evaluating those alternatives.

Accepted Answer

A) True 
 B)False

Question 14

A(n)________ marketing system is a marketing system that combines successive stages of production and distribution under a single ownership,where channel leadership is established through common ownership.

Accepted Answer

A)  contractual vertical
B)  corporate vertical
C)  administered vertical
D)  horizontal
E)  direct

Question 15

In selective distribution,producers purposely limit the number of intermediaries handling their products.

Accepted Answer

A) True 
 B)False

Question 16

The Pinewire Company is a renowned electronics company that usually sells its products like laptops,telephones,and MP3 players,through dedicated dealers.Sonic Shack,an audio equipment retailer,signs an agreement with Pinewire which gives Sonic permission to sell the products provided that Pinewire products get superior display,shelf space,and promotion compared to competing products.The agreement also requires that Sonic sell other non-audio Pinewire products at its store.Which of the following types of marketing systems do Pinewire and Sonic have?

Accepted Answer

A)  administered vertical marketing system
B)  corporate vertical marketing system
C)  direct marketing system
D)  contractual vertical marketing system
E)  horizontal marketing system

Question 17

Which of the following guarantees full control to the producer over selling their products?

Accepted Answer

A)  adopting an indirect marketing channel
B)  adopting a direct marketing channel
C)  adopting a traditional distribution channel
D)  adopting a horizontal marketing system
E)  adopting a vertical marketing system

Question 18

Under ________,the customer shares real-time data on sales and current inventory levels with the supplier,and the supplier then takes full responsibility for managing inventories and deliveries.

Accepted Answer

A)  materials handling systems
B)  continuous inventory replenishment systems
C)  scan-based trading inventory systems
D)  consignment inventory systems
E)  customer-managed inventory systems

Question 19

Producers use marketing intermediaries because they ________.

Accepted Answer

A)  create greater efficiency in making goods available to target markets
B)  supply cheaper raw materials for the production of products and services
C)  provide technical expertise and know-how for faster production
D)  help monitor day-to-day activities during production
E)  form a part of the company's direct channel selling chain

Question 20

Discuss the importance of setting channel objectives and the factors that can influence it.Give an example of any one factor that influences channel objectives.

Accepted Answer

The answer of Discuss the importance of setting channel objectives...

Exam 10: Marketing Channels Delivering Customer Value

Which of the following defines a just-in-time logistic system?

Explain multichannel distribution with an example.

Exclusive dealing that negatively affects competition is outlawed under the Clayton Act of 1914.

In an administered VMS,the producer assumes the leadership position in the distribution channel by default.

In supply chain management,moving products and materials from suppliers to the factory is known as ________.

Introducing distributors into the distributional chain increases the number of channel transactions between the manufacturer and customer.

In a vertical marketing system,the producers do not use intermediaries to sell their products.

A ________ is a channel structure in which producers,wholesalers,and retailers act as a unified system.In such a structure,one channel member owns the others,has contracts with them,or has so much power that they all cooperate.

A company that has no intermediary levels sells its products directly to its customers.

In the logistics system,minimum distribution costs imply ________.

Marketing channel design calls for analyzing consumer needs,setting channel objectives,identifying major channel alternatives,and evaluating those alternatives.

A(n) ________ marketing system is a marketing system that combines successive stages of production and distribution under a single ownership,where channel leadership is established through common ownership.

In selective distribution,producers purposely limit the number of intermediaries handling their products.

Which of the following guarantees full control to the producer over selling their products?

Under ________,the customer shares real-time data on sales and current inventory levels with the supplier,and the supplier then takes full responsibility for managing inventories and deliveries.

Producers use marketing intermediaries because they ________.

Discuss the importance of setting channel objectives and the factors that can influence it.Give an example of any one factor that influences channel objectives.