Question 1

A(n)  __________ exists when a franchisor licenses individuals or firms to dispense a service under a trade name and specific guidelines.

Accepted Answer

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

Question 2

-A variety of terms are used for marketing intermediaries. According to Figure 12-1 above, B represents a(n)  __________.

Accepted Answer

A)  retailer
B)  middleman
C)  wholesaler
D)  distributor
E)  agent or broker

Question 3

Selective distribution refers to

Accepted Answer

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

Question 4

The choice of a supply chain follows from a clearly defined marketing strategy and involves three steps: (1)  __________; (2)  understand the supply chain; and (3)  harmonize the supply chain with the marketing strategy.

Accepted Answer

A)  understand the environment
B)  consider the legal consequences of partnering
C)  understand the marketing strategy
D)  understand the customer
E)  understand the company's goals

Question 5

Employing the Internet to make products and services available for consumption or use by consumers or organizational buyers is referred to as __________.

Accepted Answer

A)  electronic distribution channels
B)  virtual marketing channels
C)  World Wide Web networks
D)  Internet marketing channels
E)  Web 3.0 marketing channels

Question 6

Which type of marketing channel arrangement is especially good for a firm to use in global marketing where the creation of marketing channel relationships is expensive and time consuming?

Accepted Answer

A)  dual distribution
B)  cooperative distribution
C)  strategic channel alliance
D)  global distribution alliance
E)  multichannel distribution

Question 7

Which of the following statements regarding supply chains is most accurate?

Accepted Answer

A)  The most common form of supply chain is the collaborative-response efficiency strategy.
B)  For an effective supply chain, key decisions should be made by a third-party logistics provider.
C)  There is no one best supply chain for every company.
D)  The longer the supply chain, the greater the economies of scale and the better the profit margins.
E)  Supply chains should consider the needs of suppliers, provided those needs are consistent with marketing strategies.

Question 8

With respect to consumer product and service marketing channels, what are the key differences between a direct and an indirect channel?

Accepted Answer

A direct channel exists where a producer...

Question 9

Which of the following statements regarding supply chains is most accurate?

Accepted Answer

A)  The most common form of supply chain is the collaborative-response efficiency strategy.
B)  For an effective supply chain, key decisions should be made by a third-party logistics provider.
C)  The longer the supply chain, the greater the economies of scale and the better the profit margin.
D)  Supply chains should consider the needs of suppliers, provided those needs are consistent with marketing strategies.
E)  Supply chain managers often need to make trade-offs between efficiency and responsiveness.

Question 10

Schwan's Sales Enterprises of Marshall, Minnesota, markets a full line of frozen foods in 49 states and parts of Canada using door-to-door salespeople who sell from its refrigerated trucks. This particular method of distribution is referred to as a(n)

Accepted Answer

A)  indirect channel.
B)  facilitated channel.
C)  customer-service channel.
D)  direct channel.
E)  truck-jobber channel.

Question 11

Channels are typically designed to satisfy one or more of four consumer interests. What are they and why are they important?

Accepted Answer

A consideration in channel design is gai...

Question 12

Cessna is considered the volume leader in the executive-jet market. It has been described as "almost totally vertically integrated." This quote means that Cessna

Accepted Answer

A)  does not fall under the jurisdiction of any federal regulatory agency.
B)  owns several of the entities that would make up the traditional marketing channel.
C)  has eliminated economies of scale.
D)  has achieved a high level of social responsibility.
E)  uses outsourcing for all component parts and materials.

Question 13

Channel conflict refers to

Accepted Answer

A)  disagreements over the trade discounts allotted to each level of the distribution chain by the Federal Trade Commission.
B)  regulatory restrictions limiting the number of distributors that can sell a producer's products.
C)  when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals.
D)  when one distributor carries two competing brands.
E)  when the producer doesn't allow other channel members to have input regarding product specifications or benefits.

Question 14

Butler-McDonald, an Indianapolis firm, recycles outdated computers to reclaim reusable materials such as plastics, copper, zinc, silver, and gold. Butler-McDonald is implementing

Accepted Answer

A)  salvage marketing.
B)  materials transformation.
C)  cyclical materials handling.
D)  reverse logistics.
E)  cause-related marketing.

Question 15

Convenience refers to the concept that

Accepted Answer

A)  there should be a minimum of effort on the part of the buyer in doing business with the seller.
B)  all products or services should be available 24 hours a day, 7 days a week, and 365 days a year.
C)  all tasks required to make an exchange are the sole responsibility of the seller.
D)  an exchange requires equal effort by both the buyer and seller.
E)  all logistical services are provided by a supplier network.

Question 16

Creating product assortments from several sources to serve customers would be an example of a __________ function performed by a channel intermediary.

Accepted Answer

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

Question 17

When you order a sweater from an L.L. Bean mail-order catalog, what type of marketing channel are you and the company using?

Accepted Answer

A)  cash and carry marketing channel
B)  intensive distribution channel
C)  selective distribution channel
D)  indirect marketing channel
E)  direct marketing channel

Question 18

Inspecting, testing, or judging products and assigning them quality grades would be an example of a __________ function performed by channel intermediaries.

Accepted Answer

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

Question 19

-Intermediaries perform three basic functions. According to Figure 12-2 above, C represents a(n)  __________.

Accepted Answer

A)  transactional function
B)  facilitating function
C)  middleman function
D)  logistical function
E)  operational function

Question 20

A practice whereby one firm's marketing channel is used to sell another firm's products is referred to as __________.

Accepted Answer

A)  dual distribution
B)  cooperative distribution
C)  an integrated channel alliance
D)  a multichannel venture
E)  a strategic channel alliance

Exam 12: Managing Marketing Channels and Supply Chains

Cessna is considered the volume leader in the executive-jet market. It has been described as "almost totally vertically integrated." This quote means that Cessna

Correct AnswerverifiedShow Answer

The choice of a supply chain follows from a clearly defined marketing strategy and involves three steps: (1) __________; (2) understand the supply chain; and (3) harmonize the supply chain with the marketing strategy.

Correct AnswerverifiedShow Answer

Employing the Internet to make products and services available for consumption or use by consumers or organizational buyers is referred to as __________.

Correct AnswerverifiedShow Answer

Which of the following statements regarding supply chains is most accurate?

Correct AnswerverifiedShow Answer

Channels are typically designed to satisfy one or more of four consumer interests. What are they and why are they important?

Correct AnswerverifiedA consideration in channel design is gai...View AnswerShow Answer

Which of the following statements regarding supply chains is most accurate?

Correct AnswerverifiedShow Answer

A(n) __________ exists when a franchisor licenses individuals or firms to dispense a service under a trade name and specific guidelines.

Correct AnswerverifiedShow Answer

With respect to consumer product and service marketing channels, what are the key differences between a direct and an indirect channel?

Correct AnswerverifiedA direct channel exists where a producer...View AnswerShow Answer

Inspecting, testing, or judging products and assigning them quality grades would be an example of a __________ function performed by channel intermediaries.

Correct AnswerverifiedShow Answer

Selective distribution refers to

Correct AnswerverifiedShow Answer

-A variety of terms are used for marketing intermediaries. According to Figure 12-1 above, B represents a(n) __________.

Correct AnswerverifiedShow Answer

Which type of marketing channel arrangement is especially good for a firm to use in global marketing where the creation of marketing channel relationships is expensive and time consuming?

Correct AnswerverifiedShow Answer

-Intermediaries perform three basic functions. According to Figure 12-2 above, C represents a(n) __________.

Correct AnswerverifiedShow Answer

Schwan's Sales Enterprises of Marshall, Minnesota, markets a full line of frozen foods in 49 states and parts of Canada using door-to-door salespeople who sell from its refrigerated trucks. This particular method of distribution is referred to as a(n)

Correct AnswerverifiedShow Answer

Channel conflict refers to

Correct AnswerverifiedShow Answer

When you order a sweater from an L.L. Bean mail-order catalog, what type of marketing channel are you and the company using?

Correct AnswerverifiedShow Answer

Convenience refers to the concept that

Correct AnswerverifiedShow Answer

Creating product assortments from several sources to serve customers would be an example of a __________ function performed by a channel intermediary.

Correct AnswerverifiedShow Answer

Butler-McDonald, an Indianapolis firm, recycles outdated computers to reclaim reusable materials such as plastics, copper, zinc, silver, and gold. Butler-McDonald is implementing

Correct AnswerverifiedShow Answer

A practice whereby one firm's marketing channel is used to sell another firm's products is referred to as __________.

Correct AnswerverifiedShow Answer

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A consideration in channel design is gai...
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A direct channel exists where a producer...
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