question

Which of the following would be considered an upstream partner in a company's supply chain?

answer

a firm that provides technical expertise in the production of a product

question

Which of the following is true of downstream channels in a company's supply chain?

answer

They form an intermediary link between the company and its customers.

question

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.

answer

value delivery network

question

________ are sets of interdependent organizations that help make the product or service of a company available for use by consumers or business users.

answer

Marketing channels

question

Producers use marketing intermediaries because they ________.

answer

create greater efficiency in making goods available to target markets

question

From the economic system's point of view, the role of marketing intermediaries is to ________.

answer

transform the assortments of products made by producers into the assortments wanted by consumers

question

Which of the following is true of a direct marketing channel?

answer

It does not use any intermediaries.

question

Which of the following creates the shortest distribution channel between a producer and a customer?

answer

direct marketing

question

In which of the following situations is a producer guaranteed full control over product sales?

answer

a direct marketing channel

question

A firm that uses direct marketing would most likely sell its products through ________.

answer

the company Web site

question

Crowbar Records

answer

a direct marketing channel

question

Which of the following is a marketing intermediary?

answer

retailers

question

Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain?

answer

Abundon

question

Mintel Agro

answer

both Yellowstar Trading and Stroos

question

Which of the following is an example of a horizontal conflict in a distribution channel?

answer

a Ford car dealer complaining that another Ford dealer is underpricing the same models

question

Vertical conflicts in distribution channels are conflicts that occur between ________.

answer

different levels of the same channel

question

Orion Steel is the chief provider of metals to Accline Cars, which manufactures two models of vehicles-cars and large buses. Accline dealers sell the firm's cars to individual citizens, but buses are sold directly to government entities. In such a distribution channel, which of the following would be considered a vertical conflict?

answer

a conflict between Accline Cars and its dealers

question

Jupiter Steel is the chief provider of metals to Greystone Motors. Greystone Motors has two models of cars-one for commercial and ordinary consumers and another for professional car racing teams. Greystone Motors has designated dealers to sell its commercial cars to consumers, while racing cars are sold directly to the racing teams. In such a distribution channel, which of the following would be considered a horizontal conflict?

answer

a conflict between two Greystone Motors car dealerships

question

Which of the following is true of a conventional distribution channel?

answer

It has each channel member acting as a separate business unit trying to maximize its own profits.

question

In a ________, 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.

answer

vertical marketing system

question

Which of the following is true of a vertical marketing system?

answer

It has one channel member owning all the other channel members or has contracts with all other channel members.

question

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

answer

corporate vertical

question

A(n) ________ marketing system is a marketing system in which independent firms at different levels of production and distribution join together through binding agreements.

answer

contractual vertical

question

Which type of channel arrangement does a franchise organization most likely follow?

answer

contractual vertical marketing system

question

Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It invites proposals from independent dealers who are willing to set up exclusive showrooms that only sell Rage's superbikes. Chosen dealers will sell and service the superbikes, and Rage will oversee national advertising. This is most likely an example of a(n) ________.

answer

manufacturer-sponsored retailer franchise system

question

Pastaliano

answer

a contractual vertical marketing system

question

In a(n) ________ marketing system, leadership over production and distribution is assumed through the size and power of one or a few dominant channel members.

answer

administered vertical

question

Sonic Shack

answer

administered vertical marketing system

question

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ________.

answer

horizontal marketing system

question

TruMart

answer

horizontal marketing system

question

GreatWords is a book retailer. Due to the increasing demand for audiobooks, the firm decides to sell audiobooks in its stores. GreatWords signs a deal with Carpem, a leading producer of educational audiobooks. According to the deal, GreatWords will sell only Carpem's audio titles in its stores, while Carpem will not sell its books through other retailer stores. GreatWords profits from Carpem's popularity while Carpem, in return, enjoys better sales. This is most likely an example of a(n) ________ marketing system.

answer

horizontal

question

) Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber's lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the tires and its expertise on the racing industry. Which term best describes Faber's channel arrangements?

answer

multichannel distribution system

question

Clara's

answer

multichannel distribution system

question

Erudite

answer

disintermediation

question

________ distribution is a product distribution strategy that involves stocking a product in as many outlets as possible.

answer

Intensive

question

Which of the following is true of an intensive distribution strategy?

answer

It strives to make products available where and when consumers want them.

question

________ distribution gives a limited number of dealers the sole rights to distribute a company's products in their territories.

answer

Exclusive

question

Selective distribution is a strategy in which ________.

answer

more than one but fewer than all willing intermediaries are used by a seller

question

________ distribution gives producers good market coverage with more control and less cost than does intensive distribution.

answer

Selective

question

When a seller requires that only certain dealers carry its products, its strategy is known as ________.

answer

exclusive distribution

question

Which of the following is an advantage of exclusive dealing between a seller and a dealer?

answer

The dealer obtains a steady source of supply and more support from the seller.

question

________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its products.

answer

Full-line forcing

question

Which of the following is true of an exclusive dealing arrangement between a producer and a dealer?

answer

It does not allow other producers to sell to that dealer.

question

The Memphis Rock chain of restaurants has a deal with WestEnd Cola, according to which it will serve only WestEnd sodas at its restaurants. What strategy has most likely been adopted by WestEnd Cola?

answer

exclusive dealing

question

Bateman Gray Motors

answer

exclusive dealing

question

PinWheel

answer

full-line forcing

question

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

answer

inbound

question

Outbound logistics refers to moving ________.

answer

products from the factory to resellers

question

Reverse logistics refers to moving ________.

answer

unwanted, excess products from resellers to producers

question

In a logistics system, minimizing distribution costs most likely involves ________.

answer

large shipping lots

question

A ________ is highly automated and designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible.

answer

distribution center

question

Which of the following is a difference between storage warehouses and distribution centers?

answer

Storage warehouses store goods for moderate to long periods, while distribution centers are used to move goods rather than just store them.

question

In a just-in-time logistics system, ________.

answer

retailers carry small inventories of merchandise to last for only a few days

question

Which of the following is true of RFID or "smart tag" technology?

answer

"Smart shelves" can tell when it is time to reorder and can place orders automatically.

question

Which of the following is a cost-effective mode for shipping large amounts of bulk products-coal, sand, minerals, and forest products-over long distances?

answer

railroads

question

Which of the following is most efficient for short hauls of high-value merchandise and is highly flexible in its routing and time schedules?

answer

trucks

question

Which mode of transportation is best for carrying perishable goods to distant markets?

answer

air carriers

question

________ involves combining two or more systems of transportation to move products.

answer

Multimodal transportation

question

The use of both rail and trucks for transporting goods is called ________.

answer

piggybacking

question

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

answer

vendor-managed inventory systems

Flashcards and Answers – Marketing Chapter 10

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