Question 1

In a supply chain setting, replenishment time refers to lead time for an item, which means the time between the ordering of an item and when it is

Accepted Answer

A)   billed to the customer.
B)   acknowledged by the customer.
C)   billed and paid for by the customer.
D)   promised for delivery.
E)   received and ready for use or sale.F) A) and B)
G) All of the above

Question 2

The four most popular types of franchise arrangements are

Accepted Answer

A)   service-sponsored franchise systems, service-sponsored retail franchise systems, manufacturer-sponsored wholesale franchise systems, and manufacturer-sponsored retail franchise systems.
B)   service-sponsored retail franchise systems, corporate vertical marketing systems, wholesaler-sponsored voluntary chains, and service-sponsored franchise systems.
C)   manufacturer-sponsored wholesale franchise systems, service-sponsored retail franchise systems, corporate vertical marketing systems, and wholesaler-sponsored voluntary chains.
D)   manufacturer-sponsored retail franchise systems, service-sponsored retail franchise systems, corporate vertical marketing systems, and wholesaler-sponsored voluntary chains.
E)   administered vertical marketing systems, service-sponsored retail franchise systems, corporate vertical marketing systems, and wholesaler-sponsored voluntary chains.F) All of the above
G) D) and E)

Question 3

________ is a supplier's attempt to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may sell.

Accepted Answer

A)   An oligopolistic practice
B)   A monopolistic practice
C)   A refusal to deal
D)   A tying arrangement
E)   A resale restrictionF) D) and E)
G) B) and C)

Question 4

Which is the most common form of distribution intensity used today?

Accepted Answer

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

Question 5

When independent Goodyear tire dealers learned that Goodyear Tire Company decided to sell its brands through Sears, Walmart, and Sam's Club, many dealers switched to competing tire makers. This is an example of

Accepted Answer

A)   corporate conflict.
B)   vertical conflict.
C)   horizontal conflict.
D)   administered conflict.
E)   contractual conflict.F) None of the above
G) A) and C)

Question 6

Questions of legality regarding tying arrangements and exclusive dealing are most likely to occur in which of these?

Accepted Answer

A)   corporate vertical marketing systems
B)   administered vertical marketing systems
C)   franchises
D)   horizontal marketing systems
E)   retail-sponsored cooperativesF) D) and E)
G) A) and E)

Question 7

The output of a supply chain is the

Accepted Answer

A)   units of products delivered.
B)   total generated revenue.
C)   service delivered to customers.
D)   total number of customers served.
E)   total profits realized.F) A) and B)
G) C) and D)

Question 8

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 provisionF) A) and B)
G) A) and C)

Question 9

Activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost are referred to as

Accepted Answer

A)   vertical integration.
B)   disintermediation.
C)   logistics.
D)   direct selling.
E)   warehousing.F) A) and B)
G) C) and D)

Question 10

John Deere manufactures and distributes industrial and farm equipment. This type of equipment is considered to be a specialty product. Which type of market coverage does John Deere most likely use?

Accepted Answer

A)   intensive distribution
B)   exclusive distribution
C)   extensive distribution
D)   selective distribution
E)   private label distributionF) A) and D)
G) B) and E)

Question 11

Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users are referred to as a

Accepted Answer

A)   marketing channel.
B)   parallel distribution.
C)   retailer.
D)   wholesaler.
E)   distributor.F) B) and D)
G) A) and E)

Question 12

Marketing channels help create value for consumers through four utilities. These utilities are

Accepted Answer

A)   product, price, promotion, and place.
B)   form, function, risk-taking, and selling.
C)   time, place, form, and possession.
D)   transactional, logistical, facilitating, and marketing.
E)   buying, selling, storing, and transporting.F) A) and B)
G) None of the above

Question 13

Logistics is most closely related to which element of the marketing mix?

Accepted Answer

A)   product
B)   place
C)   production
D)   promotion
E)   priceF) B) and E)
G) A) and B)

Question 14

In logistics management, cost-effective decisions imply which of these?

Accepted Answer

A)   While it is important to drive down logistics costs, all channel members must equally benefit financially or the chain will not function effectively.
B)   Speed of delivery must be measured against increased savings in warehousing.
C)   While it is important to drive down logistics costs, customer requirements must be a part of the equation.
D)   The need for multiple carriers always results in lower profit margins and therefore should be avoided.
E)   The choice of intermediaries should be made on their ability to perform their tasks appropriately even if additional costs must be passed on to the consumer.F) All of the above
G) D) and E)

Question 15

Many retailers who sell Campbell Soup products make purchases from Campbell under vendor-managed inventory programs. These retailers

Accepted Answer

A)   have Campbell perform all materials handing activities.
B)   authorize Campbell Soup to eliminate as many wholesaling functions as possible from the supply chain.
C)   use a system in which Campbell Soup determines the product amount and assortment that will be replenished.
D)   authorize the use of distribution centers to provide quicker customer response times.
E)   balance their total logistics cost by eliminating the convenience service factor.F) A) and E)
G) A) and C)

Question 16

Intermediaries perform facilitating functions, which assist producers in making products and services more attractive to buyers. These activities include

Accepted Answer

A)   producing, assembling, and distributing.
B)   transportation and distribution.
C)   buying, selling, and risk-taking.
D)   assorting, sorting, and storing.
E)   financing, grading, and marketing information and research.F) A) and E)
G) A) and B)

Question 17

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)   brokersF) B) and E)
G) C) and E)

Question 18

A refusal to deal with existing channel members may be illegal under the

Accepted Answer

A)   Robinson-Patman Act.
B)   Sherman Act.
C)   Federal Trade Commission Act.
D)   Consumer Goods Pricing Act.
E)   Clayton Act.F) All of the above
G) A) and E)

Question 19

Logistics refers to

Accepted Answer

A)   an inventory management system where the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items.
B)   mathematical formulas and calculations used in determining product volume and demand in order to generate the greatest revenue at the lowest cost.
C)   the sequence of firms that performs activities required to create and deliver a product or service to ultimate consumers or industrial users.
D)   activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost.
E)   a specialized intermediary in the distribution chain responsible for the coordination of all production schedules.F) C) and E)
G) B) and D)

Question 20

Which of these is an element of total logistics cost?

Accepted Answer

A)   new-product development
B)   stockouts
C)   advertising
D)   personal selling
E)   market researchF) C) and D)
G) A) and D)

Exam 15: Managing Marketing Channels and Supply Chains

Questions of legality regarding tying arrangements and exclusive dealing are most likely to occur in which of these?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The four most popular types of franchise arrangements are

Correct AnswerverifiedShow Answer

________ is a supplier's attempt to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may sell.

Correct AnswerverifiedShow Answer

Intermediaries perform facilitating functions, which assist producers in making products and services more attractive to buyers. These activities include

Correct AnswerverifiedShow Answer

Many retailers who sell Campbell Soup products make purchases from Campbell under vendor-managed inventory programs. These retailers

Correct AnswerverifiedShow Answer

Logistics refers to

Correct AnswerverifiedShow Answer

When independent Goodyear tire dealers learned that Goodyear Tire Company decided to sell its brands through Sears, Walmart, and Sam's Club, many dealers switched to competing tire makers. This is an example of

Correct AnswerverifiedShow Answer

Logistics is most closely related to which element of the marketing mix?

Correct AnswerverifiedShow Answer

Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users are referred to as a

Correct AnswerverifiedShow Answer

A refusal to deal with existing channel members may be illegal under the

Correct AnswerverifiedShow Answer

Activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost are referred to as

Correct AnswerverifiedShow Answer

John Deere manufactures and distributes industrial and farm equipment. This type of equipment is considered to be a specialty product. Which type of market coverage does John Deere most likely use?

Correct AnswerverifiedShow Answer

In logistics management, cost-effective decisions imply which of these?

Correct AnswerverifiedShow Answer

In a supply chain setting, replenishment time refers to lead time for an item, which means the time between the ordering of an item and when it is

Correct AnswerverifiedShow Answer

The output of a supply chain is the

Correct AnswerverifiedShow Answer

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."

Correct AnswerverifiedShow Answer

Which of these is an element of total logistics cost?

Correct AnswerverifiedShow Answer

Which is the most common form of distribution intensity used today?

Correct AnswerverifiedShow Answer

Marketing channels help create value for consumers through four utilities. These utilities are

Correct AnswerverifiedShow Answer

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