Question 1

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.F) A) and B)
G) A) and E)

Question 2

The __________ specifically prohibits exclusive dealing and tying arrangements when they lessen competition or create monopolies.

Accepted Answer

A)  Sherman Act
B)  Robinson-Patman Act
C)  Federal Trade Commission Act
D)  Clayton Act
E)  Consumer Goods Pricing ActF) A) and B)
G) A) and C)

Question 3

Because its customers desire rapid delivery and a wide variety of customizable products, Dell made a conscious decision to use __________ supply chain to meet these requirements.

Accepted Answer

A)  an integrated
B)  an efficient
C)  a harmonized
D)  a responsive
E)  a multitieredF) C) and D)
G) A) and B)

Question 4

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

Accepted Answer

A)  service-sponsored retail franchise systems
B)  manufacturer-sponsored wholesale franchise systems
C)  horizontal-marketing franchise systems
D)  contractual-sponsored franchise systems
E)  customer-oriented franchise systemsF) A) and B)
G) A) and C)

Question 5

A few years ago, Benetton delivered new styles to its worldwide stores once a month. Today, it replenishes its racks once a week. Getting the fashions to its retailers more quickly means that effectively using logistics has increased Benetton's market share by providing

Accepted Answer

A)  larger lots of available inventory for its retailers.
B)  time and place utility for its customers.
C)  increased steps in the value proposition creation process.
D)  technological advances leading to greater customer information.
E)  increased customer traffic.F) A) and E)
G) All of the above

Question 6

Dual distribution refers to

Accepted Answer

A)  a level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products.
B)  an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.
C)  the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.
D)  professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.
E)  a practice whereby one firm's marketing channel is used to sell another firm's products.F) A) and B)
G) All of the above

Question 7

What specific decision areas are associated with the flow of goods and together make up total logistics cost?

Accepted Answer

Total logistics cost includes expenses a...

Question 8

An intermediary that sells to consumers is referred to as

Accepted Answer

A)  an agent.
B)  a broker.
C)  a retailer.
D)  a wholesaler.
E)  a distributor.F) D) and E)
G) B) and E)

Question 9

The __________ and the Justice Department monitor channel practices that restrain competition, create monopolies, or otherwise represent unfair methods of competition under the provisions of the Clayton Act or the Sherman Act.

Accepted Answer

A)  Consumer Product Safety Commission
B)  Better Business Bureau
C)  Federal Trade Commission
D)  American Marketing Association
E)  Department of CommerceF) C) and E)
G) D) and E)

Question 10

Establishments primarily engaged in selling grain and small farm products to retail feed stores would be classified as

Accepted Answer

A)  retailers.
B)  brokers.
C)  ultimate consumers.
D)  wholesalers.
E)  agents.F) B) and C)
G) A) and E)

Question 11

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.F) B) and C)
G) B) and E)

Question 12

What are the utilities created by marketing intermediaries? Describe each one.

Accepted Answer

Marketing intermediaries help create fou...

Question 13

Which of the following would be a source of vertical conflict?

Accepted Answer

A)  Foot Locker decides to open a retail outlet next to a Nike store in a shopping mall.
B)  A restaurant serves both Coke and Pepsi to its patrons.
C)  Ansible Technologies Ltd. sells its portable planetariums to both colleges and high schools.
D)  Microsoft provides HP laptops more prominent point-of-purchase locations in its retail stores than comparable laptops from Sony.
E)  Long John Silver's decides to serve grilled burgers in addition to seafood.F) B) and D)
G) B) and C)

Question 14

In some countries, the packaging of the well-known Cheerios brand of cereal carries the Nestlé name rather than the familiar General Mills brand name. Explain the channel that is being used and the importance of Cereal Partners Worldwide (CPW).

Accepted Answer

CPW is a strategic channel alliance desi...

Question 15

Which of the following types of vertical marketing systems is least likely to experience channel conflict?

Accepted Answer

A)  corporate vertical marketing system
B)  wholesaler-sponsored voluntary chain
C)  retailer-sponsored cooperative
D)  franchise system
E)  administered vertical marketing systemF) None of the above
G) A) and B)

Question 16

The distribution intensity associated with products such as Dell's personal computers is referred to as

Accepted Answer

A)  intensive distribution.
B)  selective distribution.
C)  extensive distribution.
D)  exclusive distribution.
E)  concentrated distribution.F) All of the above
G) A) and B)

Question 17

Apple now operates over 400 Apple Retail Stores around the world to sell its innovative products such as the iPhone and iPad. Apple uses

Accepted Answer

A)  dual distribution.
B)  backward integration.
C)  forward integration.
D)  horizontal integration.
E)  strategic channel alliances.F) A) and C)
G) A) and D)

Question 18

Disintermediation refers to channel conflict that arises when

Accepted Answer

A)  a channel member severs relationships with other channel members to work for or with a competing manufacturer.
B)  channel conflicts are resolved by a third party.
C)  a channel member bypasses another member and sells or buys products directly.
D)  channel conflicts are resolved through a binding arbitration from a panel of representatives from all channel members involved.
E)  the entire distribution chain is eliminated, when a company sets up its own wholesaler and retailer network.F) A) and B)
G) A) and C)

Question 19

A tying arrangement exists if a supplier requires

Accepted Answer

A)  a distributor purchasing some products to buy others from the supplier.
B)  channel members to sell only its products or restricts distributors from selling directly competitive products.
C)  distributors to resell the supplier's products and specifies geographical areas or territories.
D)  a channel member to sell only its products.
E)  a channel member to finance all loans through the supplier's bank.F) A) and C)
G) A) and E)

Question 20

Those 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)  strategic distribution.
B)  distribution management.
C)  tactical marketing planning.
D)  value chain optimization.
E)  logistics.F) B) and E)
G) A) and D)

Exam 15: Managing Marketing Channels and Supply Chains

A few years ago, Benetton delivered new styles to its worldwide stores once a month. Today, it replenishes its racks once a week. Getting the fashions to its retailers more quickly means that effectively using logistics has increased Benetton's market share by providing

Correct AnswerverifiedShow Answer

Disintermediation refers to channel conflict that arises when

Correct AnswerverifiedShow Answer

What specific decision areas are associated with the flow of goods and together make up total logistics cost?

Correct AnswerverifiedTotal logistics cost includes expenses a...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Dual distribution refers to

Correct AnswerverifiedShow Answer

Establishments primarily engaged in selling grain and small farm products to retail feed stores would be classified as

Correct AnswerverifiedShow Answer

The distribution intensity associated with products such as Dell's personal computers is referred to as

Correct AnswerverifiedShow Answer

Those 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

The __________ and the Justice Department monitor channel practices that restrain competition, create monopolies, or otherwise represent unfair methods of competition under the provisions of the Clayton Act or the Sherman Act.

Correct AnswerverifiedShow Answer

A tying arrangement exists if a supplier requires

Correct AnswerverifiedShow Answer

An intermediary that sells to consumers is referred to as

Correct AnswerverifiedShow Answer

In some countries, the packaging of the well-known Cheerios brand of cereal carries the Nestlé name rather than the familiar General Mills brand name. Explain the channel that is being used and the importance of Cereal Partners Worldwide (CPW).

Correct AnswerverifiedCPW is a strategic channel alliance desi...View AnswerShow Answer

Because its customers desire rapid delivery and a wide variety of customizable products, Dell made a conscious decision to use __________ supply chain to meet these requirements.

Correct AnswerverifiedShow Answer

What are the utilities created by marketing intermediaries? Describe each one.

Correct AnswerverifiedMarketing intermediaries help create fou...View AnswerShow Answer

The __________ specifically prohibits exclusive dealing and tying arrangements when they lessen competition or create monopolies.

Correct AnswerverifiedShow Answer

Which of the following would be a source of vertical conflict?

Correct AnswerverifiedShow Answer

The two types of channel conflict are

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Apple now operates over 400 Apple Retail Stores around the world to sell its innovative products such as the iPhone and iPad. Apple uses

Correct AnswerverifiedShow Answer

Which of the following types of vertical marketing systems is least likely to experience channel conflict?

Correct AnswerverifiedShow Answer

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Total logistics cost includes expenses a...
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CPW is a strategic channel alliance desi...
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Marketing intermediaries help create fou...
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