Question 1

Rather than compete with large greeting card companies for shelf space in supermarkets, several smaller card companies place their cards in pack-and-ship stores where the customer can mail a card on the spur of the moment, and in racks in car washes where customers who are waiting for their cars can browse and purchase cards. This is an example of which type of marketing channel strategy?

Accepted Answer

A)  a strategic channel alliance
B)  multichannel distribution
C)  parallel distribution
D)  dual distribution
E)  direct distributionF) C) and D)
G) B) and E)

Question 2

Exclusive distribution refers to

Accepted Answer

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

Question 3

Full-line forcing is a special kind of __________. This practice involves a supplier requiring that a channel member carry its full line of products in order to sell a specific item in the supplier's line.

Accepted Answer

A)  resale restriction
B)  vertical integration
C)  exclusive dealing
D)  refusal to deal
E)  tying arrangementF) All of the above
G) A) and D)

Question 4

American Hospital Supply helps its customers (hospitals)  manage inventory and streamline order processing for hundreds of medical supplies. The source of American Hospital Supply's power is its

Accepted Answer

A)  economic influence.
B)  expertise.
C)  identification with a particular channel member.
D)  legitimate rights through contracts.
E)  governmental contracts.F) B) and D)
G) A) and E)

Question 5

A channel member (producer, wholesaler, or retailer)  who coordinates, directs, and supports other channel members is referred to as a

Accepted Answer

A)  channel champion.
B)  channel general.
C)  channel captain.
D)  channel director.
E)  channel coordinator.F) B) and D)
G) D) and E)

Question 6

Which type of distribution lies between the two distribution extremes and means that a firm selects a few retail outlets in a specific geographical area to carry its products?

Accepted Answer

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

Question 7

Allowing consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson is referred to as

Accepted Answer

A)  an indirect marketing channel.
B)  a direct marketing channel.
C)  a multimarketing channel.
D)  a channel bypass marketing.
E)  personal selling.F) B) and C)
G) A) and E)

Question 8

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 is referred to as

Accepted Answer

A)  full-line forcing.
B)  exclusive dealing.
C)  a refusal to deal.
D)  a resale restriction.
E)  a tying arrangement.F) A) and C)
G) None of the above

Question 9

The word cost-effective as it relates to the definition of logistics management implies that

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.
C)  while it is important to drive down logistics costs, customer buying 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 efficiently even if additional costs must be passed on to the consumer.F) A) and C)
G) A) and D)

Question 10

Which of the following statements best describes the difference between a corporate vertical marketing system and an administered vertical marketing system?

Accepted Answer

A)  Administered vertical marketing systems gain power through ownership while corporate vertical marketing systems gain power through contractual agreement.
B)  Administered vertical marketing systems gain power through the size and influence of one channel member and through ownership, rather than through contractual arrangement.
C)  Administered vertical marketing systems gain power through contractual agreements and ownership rather than through size.
D)  Administered vertical marketing systems are usually larger and more profitable than corporate vertical marketing systems.
E)  Administered vertical marketing systems achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership.F) A) and B)
G) A) and C)

Question 11

There are four popular types of franchising: (1)  manufacturer-sponsored retail franchise systems, (2)  manufacturer-sponsored wholesale franchise systems, (3)  service-sponsored franchise systems, and (4)  __________.

Accepted Answer

A)  service-sponsored retail franchise systems
B)  wholesaler-sponsored franchise systems
C)  horizontal-marketing franchise systems
D)  contractual-sponsored franchise systems
E)  customer-generated franchise systemsF) A) and B)
G) C) and E)

Question 12

What is the first step in choosing the right supply chain?

Accepted Answer

A)  Understand the supply chain.
B)  Develop a list of qualified channel members.
C)  Enumerate logistics specifications.
D)  Compare multiple-channel alternatives.
E)  Understand the customer.F) B) and D)
G) A) and B)

Question 13

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.F) B) and D)
G) A) and C)

Question 14

Logistical function activities include __________ products and services.

Accepted Answer

A)  buying and selling
B)  assorting, storing, sorting, and transporting
C)  financing and grading
D)  risk-taking
E)  marketing information and researchF) A) and D)
G) B) and D)

Question 15

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)  __________, (2)  convenience, (3)  variety, and (4)  pre- or postsale services.

Accepted Answer

A)  profitability
B)  information
C)  quality
D)  brand name recognition
E)  availabilityF) B) and D)
G) A) and E)

Question 16

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 D)
G) B) and C)

Question 17

When one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals, it is referred to as

Accepted Answer

A)  distributor dissension.
B)  marketing channel discord.
C)  partnership divergence.
D)  channel conflict.
E)  channel dissonance.F) A) and E)
G) A) and B)

Question 18

Physically moving a product to customers is an example of a __________ function.

Accepted Answer

A)  transactional
B)  logistical
C)  facilitating
D)  selling
E)  sortingF) None of the above
G) All of the above

Question 19

Several artists in Charleston, South Carolina, have created an arrangement to sell their paintings. They have set up an art gallery in downtown Charleston so tourists and art lovers can look at their paintings and buy the ones they like. Each artist takes a turn acting as the salesclerk at the gallery. In terms of the marketing channel, the gallery is acting as

Accepted Answer

A)  an ultimate consumer.
B)  a manufacturer.
C)  a wholesaler.
D)  a retailer.
E)  a distributor.F) A) and B)
G) B) and D)

Question 20

Retailers and industrial distributors prefer exclusive distribution for two reasons. One is that

Accepted Answer

A)  it is the most common form of distribution intensity.
B)  it eliminates channel conflict.
C)  it is usually chosen for convenience.
D)  it has market coverage benefits.
E)  it limits head-to-head competition for an identical product.F) B) and E)
G) D) and E)

Exam 15: Managing Marketing Channels and Supply Chains

Retailers and industrial distributors prefer exclusive distribution for two reasons. One is that

Correct Answer
verified

American Hospital Supply helps its customers (hospitals) manage inventory and streamline order processing for hundreds of medical supplies. The source of American Hospital Supply's power is its

Correct Answer
verified

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?

Correct Answer
verified

Allowing consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson is referred to as

Correct Answer
verified

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) __________, (2) convenience, (3) variety, and (4) pre- or postsale services.

Correct Answer
verified

Which of the following statements best describes the difference between a corporate vertical marketing system and an administered vertical marketing system?

Correct Answer
verified

Which type of distribution lies between the two distribution extremes and means that a firm selects a few retail outlets in a specific geographical area to carry its products?

Correct Answer
verified

There are four popular types of franchising: (1) manufacturer-sponsored retail franchise systems, (2) manufacturer-sponsored wholesale franchise systems, (3) service-sponsored franchise systems, and (4) __________.

Correct Answer
verified

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 Answer
verified

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 is referred to as

Correct Answer
verified

Logistical function activities include __________ products and services.

Correct Answer
verified

What is the first step in choosing the right supply chain?

Correct Answer
verified

A channel member (producer, wholesaler, or retailer) who coordinates, directs, and supports other channel members is referred to as a

Correct Answer
verified

When one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals, it is referred to as

Correct Answer
verified

Exclusive distribution refers to

Correct Answer
verified

Correct Answer
verified

The word cost-effective as it relates to the definition of logistics management implies that

Correct Answer
verified

Full-line forcing is a special kind of __________. This practice involves a supplier requiring that a channel member carry its full line of products in order to sell a specific item in the supplier's line.

Correct Answer
verified

Physically moving a product to customers is an example of a __________ function.

Correct Answer
verified

Correct Answer
verified

Exam 15: Managing Marketing Channels and Supply Chains

Retailers and industrial distributors prefer exclusive distribution for two reasons. One is that

Correct AnswerverifiedShow Answer

American Hospital Supply helps its customers (hospitals) manage inventory and streamline order processing for hundreds of medical supplies. The source of American Hospital Supply's power is its

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Allowing consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson is referred to as

Correct AnswerverifiedShow Answer

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) __________, (2) convenience, (3) variety, and (4) pre- or postsale services.

Correct AnswerverifiedShow Answer

Which of the following statements best describes the difference between a corporate vertical marketing system and an administered vertical marketing system?

Correct AnswerverifiedShow Answer

Which type of distribution lies between the two distribution extremes and means that a firm selects a few retail outlets in a specific geographical area to carry its products?

Correct AnswerverifiedShow Answer

There are four popular types of franchising: (1) manufacturer-sponsored retail franchise systems, (2) manufacturer-sponsored wholesale franchise systems, (3) service-sponsored franchise systems, and (4) __________.

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

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 is referred to as

Correct AnswerverifiedShow Answer

Logistical function activities include __________ products and services.

Correct AnswerverifiedShow Answer

What is the first step in choosing the right supply chain?

Correct AnswerverifiedShow Answer

A channel member (producer, wholesaler, or retailer) who coordinates, directs, and supports other channel members is referred to as a

Correct AnswerverifiedShow Answer

When one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals, it is referred to as

Correct AnswerverifiedShow Answer

Exclusive distribution refers to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The word cost-effective as it relates to the definition of logistics management implies that

Correct AnswerverifiedShow Answer

Full-line forcing is a special kind of __________. This practice involves a supplier requiring that a channel member carry its full line of products in order to sell a specific item in the supplier's line.

Correct AnswerverifiedShow Answer

Physically moving a product to customers is an example of a __________ function.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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