question

1) Which of the following is NOT a typical supply chain member? A) resellers B) customers C) intermediaries D) government agencies E) raw materials supplier

answer

D Diff: 1 Page Ref: 337 Skill: Concept

question

: 12-1 2) ________ the manufacturer or service provider is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service. A) Downstream from B) Upstream from C) Separated from D) Congruous to E) Parallel with

answer

B Diff: 2 Page Ref: 337 Skill: Concept

question

: 12-1 3) Another term for the supply chain that suggests a sense and respond view of the market is ________. A) supply and demand chain B) demand chain C) channel of distribution D) distribution channel E) physical distribution

answer

B Diff: 3 Page Ref: 338 Skill: Concept

question

: 12-1 4) When suppliers, distributors, and customers partner with each other to improve the performance of the entire system, they are participating in a ________. A) value delivery network B) channel of distribution C) supply chain D) demand chain E) all of the above

answer

A Diff: 1 Page Ref: 338 Skill: Concept

question

: 12-1 5) Most producers today sell their goods to ________. A) final users B) final users and marketing members C) intermediaries D) the government at various levels E) competitors

answer

C Diff: 2 Page Ref: 339 Skill: Concept

question

: 12-1 6) A company's channel decisions directly affect every ________. A) channel member B) marketing decision C) customer's choices D) employee in the channel E) competitor's actions

answer

B Diff: 2 Page Ref: 339 Skill: Concept

question

: 12-1 7) Distribution channel decisions often involve ________ with other firms, particularly those that involve contracts or relationships with channel partners. A) short-term commitments B) long-term commitments C) major problems D) financial losses E) disagreements

answer

B Diff: 3 Page Ref: 339 Skill: Concept

question

: 12-1 8) Joe Blanco, like other producers, has discovered that his intermediaries usually offer his firm more than it can achieve on its own. Which of the following is most likely an advantage that Joe creates by working with intermediaries? A) financial support B) fast service C) scale of operation D) working relationships with foreign distributors E) promotional assistance

answer

C Diff: 2 Page Ref: 339 Skill: Concept

question

: 12-1 9) From the economic system's point of view, the role of marketing intermediaries is to transform the assortment of products made by producers into the assortment of products wanted by ________. A) channel members B) distributors C) consumers D) manufacturers E) marketers

answer

C Diff: 2 Page Ref: 340 Skill: Concept

question

: 12-1 10) Producers benefit from using intermediaries because they ________. A) offer greater efficiency in making goods available to target markets B) bring a fresh point of view to strategy development C) eliminate risk D) are generally backlogged with orders E) refuse to store products for longer than a few days

answer

A Diff: 3 Page Ref: 339 Skill: Concept

question

: 12-1 11) Intermediaries play an important role in matching ________. A) dealer with customer B) supply and demand C) product to region D) manufacturer to product E) information and promotion

answer

B Diff: 2 Page Ref: 340 Skill: Concept

question

: 12-1 12) Channel members add value by bridging the major gaps of ________ that separate goods and services from those who would use them. A) time, place, and form B) place, possession, and form C) time, place, and possession D) place, time, and need E) place, need, and distribution

answer

C Diff: 2 Page Ref: 340 Skill: Concept

question

: 12-1 13) Which of the following is NOT a key function that intermediaries play in completing transactions? A) promotion B) information C) matching D) financing E) negotiation

answer

E Diff: 3 Page Ref: 340 Skill: Concept

question

: 12-1 14) Which of the following is NOT a key function that intermediaries play in helping to fulfill a completed transaction? A) physical distribution B) promotion C) financing D) risk taking E) storing goods

answer

B Diff: 3 Page Ref: 340 Skill: Concept

question

: 12-2 15) In marketing terms, we say that the number of intermediary levels indicates the ________ of a channel. A) depth B) complexity C) involvement D) length E) width

answer

D Diff: 1 Page Ref: 341 Skill: Concept

question

: 12-1 16) To a producer of goods, a greater number of channel levels means ________ and greater channel complexity. A) less distance between producer and end consumer B) less control C) more potential ideas D) higher taxes E) fewer channel partners

answer

B Diff: 2 Page Ref: 341 Skill: Concept

question

: 12-1 17) All of the institutions in a channel are connected by various flows. These include physical flow, flow of ownership, payment flow, information flow, and ________ flow. A) promotion B) acquisition C) customer D) return product E) by-product

answer

A Diff: 3 Page Ref: 341 AACSB: Communication Skill: Concept

question

: 12-1 18) A distribution channel is more than a collection of firms connected by various flows; it is a(n) ________ in which people and companies interact to accomplish individual, company, and channel goals. A) added value chain B) complex behavioral system C) corporate marketing system D) vertical marketing system E) multichannel system

answer

B Diff: 2 Page Ref: 342 AACSB: Communication Skill: Concept

question

: 12-2 19) An advantage of a channel of distribution over selling direct to consumers is that each channel member plays a ________ in the channel. A) time-saving part B) specialized role C) decisional role D) informational role E) disciplinary role

answer

B Diff: 2 Page Ref: 342 Skill: Concept

question

: 12-2 20) ________ conflict, which occurs between different levels of the same channel, is more common than ________ conflict, which occurs among firms at the same level of the channel. A) Horizontal; vertical B) Vertical; horizontal C) Contractual; corporate D) Corporate; franchise E) Wholesaler; retailer

answer

B Diff: 2 Page Ref: 342 Skill: Concept

question

: 12-2 21) Historically, conventional channels have lacked the leadership to ________. A) assign channel member roles and attain efficiency B) attain efficiency and assign member roles C) assign member roles and manage conflict D) set standard pricing and promotions E) set standard pricing and packaging

answer

C Diff: 3 Page Ref: 343 AACSB: Communication Skill: Concept

question

: 12-2 22) A conventional distribution channel consists of one or more ________ producers, wholesalers, and retailers. A) product-related B) independent C) contract D) estranged E) merchant

answer

B Diff: 2 Page Ref: 344 Skill: Concept

question

: 12-2 23) A channel consisting of one or more independent producers, wholesalers, or retailers that seek to maximize their own profitseven at the expense of profits for the channel as a wholeis a(n) ________. A) vertical marketing system B) conventional distribution channel C) independent channel allocation D) corporate VMS E) administered vertical marketing system

answer

B Diff: 2 Page Ref: 344 Skill: Concept

question

: 12-2 24) An advantage of a vertical marketing system (VMS) is that it acts as a ________ system. A) unified B) more efficient C) modern D) customer-driven E) task-driven

answer

A Diff: 3 Page Ref: 344 Skill: Concept

question

: 12-2 25) A corporate VMS has the advantage of controlling the entire distribution chain under ________. A) a profit-maximizing strategic plan B) single ownership C) mass distribution D) a few intermediaries E) little control

answer

B Diff: 1 Page Ref: 344 Skill: Concept

question

: 12-2 26) Which of the following are the three major types of vertical marketing systems? A) corporate, contractual, and chain B) contractual, corporate, and independent C) contractual, corporate, and administered D) administered, independent, and franchised E) contractual, corporate, and task

answer

C Diff: 2 Page Ref: 344 Skill: Concept

question

: 12-2 27) A distinguishing feature of a contractual VMS is that coordination and conflict management among the independent members of the channel are attained through ________. A) agents and brokers B) working partnerships C) limited liability incorporation D) contractual agreements E) natural competitive forces

answer

D Diff: 1 Page Ref: 345 AACSB: Communication Skill: Concept

question

: 12-2 28) The most common type of contractual agreement in business is the ________. A) franchise organization B) vertical marketing system C) conventional marketing channel D) corporate VMS E) administered VMS

answer

A Diff: 3 Page Ref: 345 Skill: Concept

question

: 12-2 29) Leadership in which type of marketing system is assumed not through common ownership or contractual ties but through the size and power of one or a few dominant channel members? A) horizontal marketing system B) administered VMS C) corporate VMS D) multichannel distribution system E) conventional marketing channel

answer

B Diff: 2 Page Ref: 345 Skill: Concept

question

: 12-2 30) In a ________, two or more companies at one level join together to develop a new marketing opportunity. A) franchise B) horizontal marketing system C) corporate VMS D) multichannel distribution system E) conventional distribution channel

answer

B Diff: 1 Page Ref: 345 Skill: Concept

question

: 12-2 31) Hybrid marketing systems are also called ________. A) dual distribution systems B) multichannel distribution systems C) administered franchises D) horizontal multichannel systems E) contractual marketing systems

answer

B Diff: 2 Page Ref: 346 Skill: Concept

question

: 12-2 32) As marketing manager for Globe Imports and Exports, you want to start reaping the benefits of a multichannel distribution system. You will likely enjoy all of the following EXCEPT which one? A) expanded sales B) expanded market coverage C) selling at a higher gross margin D) opportunities to tailor products and services to the needs of diverse segments E) A and C

answer

C Diff: 3 Page Ref: 346 Skill: Concept

question

: 12-2 33) The use of multichannel systems in the United States is ________. A) decreasing B) increasing C) holding steady D) spreading abroad fast E) declining abroad

answer

B Diff: 2 Page Ref: 346 Skill: Concept

question

: 12-2 34) The major disadvantage of a multichannel system is that it is harder to control and it can generate ________. A) channel conflict B) less net profit C) fewer domestic sales D) inefficiencies E) declining employee morale

answer

A Diff: 2 Page Ref: 346 Skill: Concept

question

: 12-2 35) Due in a large part to advances in technology, ________ is a major trend whereby product and service producers are bypassing intermediaries and going directly to final buyers, or radically new types of channel intermediaries are emerging to displace traditional ones. A) the vertical marketing system B) the corporate marketing system C) disintermediation D) the corporate merger E) the hostile takeover

answer

C Diff: 2 Page Ref: 347 AACSB: Use of IT Skill: Concept

question

: 12-2 36) In many industries, traditional intermediaries are dropping by the wayside because of changes in ________ and the growth of ________ marketing. A) federal laws; business-to-business B) state and local laws; target C) franchise structure; independent D) technology; direct and online E) channel design; retail

answer

D Diff: 2 Page Ref: 347 AACSB: Use of IT Skill: Concept

question

: 12-2 37) Designing a channel system calls for analyzing consumer needs, setting channel objectives, ________ and evaluation. A) establishing a budget B) identifying major channel alternatives C) seeking regulatory approval D) seeking legal advice E) measuring objectives

answer

B Diff: 2 Page Ref: 348 Skill: Concept

question

: 12-3 38) Which of the following should be the first step in designing a marketing channel? A) identifying channel objectives B) identifying what consumers want from the channel C) analyzing channel alternatives D) evaluating intermediaries E) exploring international opportunities

answer

B Diff: 2 Page Ref: 349 Skill: Concept

question

: 12-3 39) To increase a channel's service level, it must provide a greater assortment of products, more add-on services, and ________. A) lower prices B) more efficiency C) faster delivery D) better terms E) follow-up

answer

C Diff: 3 Page Ref: 349 Skill: Concept

question

: 12-3 40) Companies should state their channel objectives in terms of targeted levels of ________. A) co-op advertising B) efficiency C) customer service D) conflict reduction E) profitability

answer

C Diff: 2 Page Ref: 350 AACSB: Communication Skill: Concept

question

: 12-3 41) When a company is identifying its major channel alternatives, it should consider its choices in terms of types, number, and ________ of intermediaries. A) size B) power C) responsibilities D) capacity E) none of the above

answer

C Diff: 2 Page Ref: 350 Skill: Concept

question

: 12-3 42) Which type of product might require a more direct marketing channel to avoid delays and too much handling? A) lower-priced products B) perishable products C) high-priced products D) products in their maturity stage E) products in their decline stage

answer

B Diff: 2 Page Ref: 350 Skill: Concept

question

: 12-3 43) When determining the number of channel members to use at each level, three strategies are available: intensive, exclusive, and ________ distribution. A) multichannel B) selective C) international D) direct E) extensive

answer

B Diff: 1 Page Ref: 350 Skill: Concept

question

: 12-3 44) Sometimes a producer chooses only a few dealers in a territory to distribute its products or services. Generally these dealers are given a right to ________ distribution. A) exclusive B) selective C) intensive D) administered E) corporate

answer

A Diff: 1 Page Ref: 351 Skill: Concept

question

: 12-3 45) Which type of distribution is used when the producer wants more than one, but fewer than all, of the intermediaries who are willing to carry its products? A) exclusive B) selective C) intensive D) administered E) corporate

answer

B Diff: 1 Page Ref: 351 Skill: Concept

question

: 12-3 46) When establishing the responsibilities of channel members, the producer establishes a list price, sets discounts for intermediaries, and defines each channel member's ________. A) sales volume B) territory C) legal rights D) customers E) mission

answer

B Diff: 2 Page Ref: 351 Skill: Concept

question

: 12-3 47) Channel members should be evaluated using all of the following criteria EXCEPT which one? A) economic factors B) control C) adaptive criteria D) channel leadership E) none of the above

answer

D Diff: 3 Page Ref: 351 Skill: Concept

question

: 12-3 48) When a company compares the likely sales, costs, and profitability of different channel alternatives, it is using ________ criteria to evaluate its channel options. A) selective B) adaptive C) economic D) control E) distribution

answer

C Diff: 2 Page Ref: 351 Skill: Concept

question

: 12-3 49) It is common for international marketers to ________ their channel strategies for each country. A) extend B) adapt C) restrict D) seek approval for E) eliminate

answer

B Diff: 1 Page Ref: 352 AACSB: Multicultural and Diversity Skill: Concept

question

: 12-3 50) China and India each contain more than one billion people. However, companies can access only a small percentage of these potential markets due to ________. A) inadequate distribution systems B) indifference toward Western products C) high regional taxes D) the religious caste system E) insurmountable language barriers

answer

A Diff: 3 Page Ref: 352 AACSB: Multicultural and Diversity Skill: Concept

question

: 12-3 51) Marketing channel management calls for selecting, managing, ________, and evaluating channel members over time. A) reducing conflict B) reducing waste C) motivating D) pruning E) all of the above

answer

C Diff: 2 Page Ref: 352 Skill: Concept

question

: 12-4 52) A company should think of its intermediaries as both its ________ and ________. A) competitors; partners B) customers; partners C) competitors; marketers D) customers; employees E) competitors; customers

answer

B Diff: 2 Page Ref: 353 Skill: Concept

question

: 12-4 53) Most companies practice strong PRM to forge long-term relationships with channel members. What does PRM stand for? A) primary relationship management B) potential relationship management C) perennial relationship management D) partner relationship management E) personnel roster maintenance

answer

D Diff: 1 Page Ref: 353 AACSB: Communication Skill: Concept

question

: 12-4 54) Sometimes a seller requires its dealers to abstain from handling competitors' products in an arrangement called ________. A) exclusive distribution B) exclusive dealing C) selective distribution D) exclusive pricing E) disintermediation

answer

B Diff: 2 Page Ref: 356 AACSB: Ethical Reasoning Skill: Concept

question

: 12-4 55) Exclusive dealing is legal as long as it does not ________ or tend to create a monopoly and as long as both parties enter into the agreement ________. A) substantially lessen competition; coercively B) restrict trade; for a cause C) substantially lessen competition; voluntarily D) interfere with competitors; forcefully E) create a smaller market; permanently

answer

C Diff: 3 Page Ref: 356 AACSB: Ethical Reasoning Skill: Concept

question

: 12-4 56) Exclusive territorial agreements are normal in ________. A) vertical marketing systems B) franchises C) integrated marketing systems D) horizontal marketing systems E) supply chain management

answer

B Diff: 2 Page Ref: 356 AACSB: Ethical Reasoning Skill: Concept

question

: 12-4 57) If the producer of a strong brand agrees to sell its brand to a dealer only if the dealer will take some or all of the rest of the line, the result is ________. A) exclusive distribution B) exclusive dealing C) always illegal D) a tying agreement E) disintermediation

answer

D Diff: 2 Page Ref: 356 AACSB: Ethical Reasoning Skill: Concept

question

: 12-4 58) Marketing logistics involves getting the right product to the right customer in the right place at the right time. Which one of the following is NOT included in this process? A) planning the physical flow of goods and services B) implementing the plan for the flow of goods and services C) controlling the physical flow of goods, services, and information D) gathering customer's ideas for new products E) A and C

answer

D Diff: 1 Page Ref: 356 Skill: Concept

question

: 12-5 59) Marketing logistics involves which of the following distribution flows? A) outbound and inbound B) outbound, inbound, and reverse C) inbound and reverse D) outbound and reverse E) outbound

answer

B Diff: 2 Page Ref: 356 Skill: Concept

question

: 12-5 60) Which of the following is NOT an area of responsibility for a logistics manager? A) information systems B) warehousing C) marketing D) inventory E) purchasing

answer

C Diff: 2 Page Ref: 356-357 Skill: Concept

question

: 12-5 61) Which of the following innovations has created opportunities for significant gains in distribution efficiency? A) tying agreements B) Web-based logistics systems C) partner relationship management D) contractual vertical marketing systems E) storage warehouses

answer

B Diff: 2 Page Ref: 357 AACSB: Use of IT Skill: Concept

question

: 12-5 62) The goal of marketing logistics should be to provide a ________ level of customer service at the least cost. A) maximum B) targeted C) moderate D) minimum E) competitive

answer

B Diff: 2 Page Ref: 357 Skill: Concept

question

: 12-5 63) The difference between distribution centers and storage warehouses is that the former are designed to ________. A) store goods for longer periods B) hold larger volumes C) move goods rather than just store them D) primarily be owned by the manufacturer E) be automated

answer

C Diff: 2 Page Ref: 358 Skill: Concept

question

: 12-5 64) To reduce inventory management costs, many companies use a system called ________, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation. A) reduction-inventory management B) just-in-time logistics C) limited inventory logistics D) supply chain management E) economic order quantity

answer

B Diff: 2 Page Ref: 359 AACSB: Use of IT Skill: Concept

question

: 12-5 65) Through the use of ________, or "smart tag" technology, a company is able to locate exactly where a product is within the supply chain. A) RFID B) PRM C) VMS D) IT E) 3PL

answer

A Diff: 2 Page Ref: 359 AACSB: Use of IT Skill: Concept

question

: 12-5 66) Which of the following transportation modes is used for digital products? A) trucks B) rail C) the Internet D) air E) ship

answer

C Diff: 1 Page Ref: 359 AACSB: Use of IT Skill: Concept

question

: 12-5 67) In choosing a transportation mode for a product, shippers must balance the considerations of speed, dependability, cost, and ________. A) weight B) customer choice C) availability D) distance E) company reputation

answer

C Diff: 3 Page Ref: 360 Skill: Concept

question

: 12-5 68) In the proper order, identify the correct terms for these intermodal transportation combinations: rail and truck, water and truck, water and rail. A) fishyback; airtruck; trainship B) piggyback; airtruck; fishyback C) trainship; fishyback; piggyback D) piggyback; fishyback; trainship E) piggyback, fishyback; birdyback

answer

D Diff: 2 Page Ref: 360 Skill: Concept

question

: 12-5 69) Companies manage their supply chains through ________. A) skilled operators B) information C) the Internet D) transportation modes E) competitors

answer

B Diff: 2 Page Ref: 360 AACSB: Communication Skill: Concept

question

: 12-5 70) Using ________, retailers can share real-time data on sales and current inventory levels with suppliers who take responsibility for ordering and delivering products to retailers, thereby saving time and money. A) dual distribution modes B) continuous inventory replenishment systems C) the Internet D) their own trucking and distribution systems E) integrated distribution

answer

B Diff: 2 Page Ref: 361 AACSB: Use of IT Skill: Concept

question

: 12-5 71) Lancaster Box Company wants to provide better customer service while trimming distribution costs through teamwork, both inside the company and among all the marketing channel organizations. Lancaster Box is thinking of ________. A) integrated logistics management B) supply chain management C) customer relationship management D) horizontal marketing system E) disintermediation

answer

A Diff: 2 Page Ref: 361 AACSB: Communication Skill: Concept

question

: 12-5 72) What is the goal of integrated supply chain management? A) to reduce costs B) to increase services with minimal cost through teamwork C) to harmonize all of the company's logistics decisions D) to reduce conflict and increase cooperation among channel members E) all of the above

answer

E Diff: 3 Page Ref: 361 AACSB: Communication Skill: Concept

question

: 12-5 73) Smart companies coordinate their logistics strategies and forge strong partnerships with suppliers and customers to improve customer service and reduce channel costs through ________. A) cross-functional teams B) cross-company teams C) partnering D) cross-functional, cross-company teams E) segregated departmentalization

answer

D Diff: 3 Page Ref: 362 AACSB: Communication Skill: Concept

question

: 12-5 74) The success of each channel member depends on the performance of ________. A) key channel members B) the entire supply chain C) the channel captain D) the manufacturer E) the wholesaler

answer

B Diff: 2 Page Ref: 362 Skill: Concept

question

: 12-5 75) Today, a growing number of firms now outsource some or all of their logistics to ________. A) cross-functional teams B) disintermediaries C) channel members D) third-party logistics providers E) competitors

answer

D Diff: 1 Page Ref: 362 Skill: Concept

question

: 12-5 76) In designing its marketing channel, Chairs for Every Occasion has moved from a make-and-sell view of its business, which focused on productive inputs and factory capacity as a starting point for marketing planning, to a sense-and respond view, which begins instead with the needs of target customers. With this new view, Chairs for Every Occasion is developing its ________. A) supply chain B) wholesaler chain C) demand chain D) logistics E) vertical marketing system

answer

C Diff: 3 Page Ref: 338 AACSB: Reflective Thinking Skill: Application

question

: 12-1 77) Proud Pets, a producer of clothing and accessories for pets, has recently partnered with a regional chain of pet stores. Which of the following would Proud Pets be LEAST likely to expect from its new channel member? A) promoting its products through advertising B) assembling and packaging its products for final sale C) distributing relevant marketing research information D) identifying raw materials and other productive inputs E) negotiating on its products' prices

answer

D Diff: 2 Page Ref: 340 AACSB: Reflective Thinking Skill: Application

question

: 12-1 78) Steve's Physco Skates sells its products to Wal-Mart, who then sells them to the consumer. This is an example of a(n) ________. A) direct marketing channel B) producer channel C) indirect marketing channel D) retailer channel E) corporate vertical marketing system

answer

C Diff: 1 Page Ref: 341 AACSB: Reflective Thinking Skill: Application

question

: 12-2 79) Joanie Calvert is experiencing a disagreement with intermediaries in the channel over who should do what and for what rewards. Joanie is experiencing ________. A) channel delusion B) channel conflict C) channel disintermediation D) channel mismanagement E) channel intermediation

answer

B Diff: 1 Page Ref: 342 AACSB: Reflective Thinking Skill: Application

question

: 12-2 80) When two Taco Bell restaurants have a disagreement over who should be able to sell in quantity at a discount to the local high school band, they are in a ________ conflict. A) vertical B) problematic C) no-win D) horizontal E) functional

answer

D Diff: 2 Page Ref: 342 AACSB: Reflective Thinking Skill: Application

question

: 12-2 81) Staples Office Supply opened an online store that created competition with many of its dealers. The corporate office created a ________ conflict. A) vertical B) problematic C) no-win D) horizontal E) intermediation

answer

A Diff: 2 Page Ref: 342 AACSB: Reflective Thinking Skill: Application

question

: 12-2 82) Which of the following is an example of horizontal channel conflict? A) managers of two separate Holiday Inns disagreeing over what constitutes poor service B) United Airlines competing with Northwest Airlines for customers C) disgruntled factory workers complaining about a small pay raise D) the BMW dealership in Fort Wayne complaining that the BMW dealership in Indianapolis is situated too close E) A and D

answer

E Diff: 3 Page Ref: 342 AACSB: Reflective Thinking Skill: Application

question

: 12-2 83) Which of the following is an example of a manufacturer-sponsored retailer franchise system? A) fast-food restaurants such as McDonald's and Burger King B) Starbucks operating within Target stores C) Ford and its network of independent franchised dealers D) licensed bottlers that bottle and sell Coca-Cola to retailers E) motels such as Holiday Inn and Ramada Inn

answer

C Diff: 3 Page Ref: 345 AACSB: Analytic Skills Skill: Application

question

: 12-2 84) When McDonald's offers its products inside of a Wal-Mart store, it is following a ________. A) conventional distribution channel B) corporate VMS C) contractual VMS D) administered VMS E) horizontal marketing system

answer

E Diff: 3 Page Ref: 345 AACSB: Reflective Thinking Skill: Application

question

: 12-2 85) Which of the following is an example of a multichannel distribution system? A) Wal-Mart locating to several countries B) J. C. Penney's catalog and retail store sales C) Avon's door-to-door distribution D) Starbuck's location inside of book stores E) a hotel providing guest privileges at a health spa across the street

answer

B Diff: 2 Page Ref: 346 AACSB: Reflective Thinking Skill: Application

question

: 12-2 86) Blockbuster offers DVD rentals through its Total Access online rental service and through its bricks-and-mortar stores. This is an example of a(n)________. A) contractual VMS B) administered VMS C) horizontal marketing system D) conventional distribution channel E) multichannel distribution system

answer

E Diff: 1 Page Ref: 346 AACSB: Reflective Thinking Skill: Application

question

: 12-2 87) When Netflix began delivering DVDs directly to customers through the mail instead of using a brick-and-mortar system, Netflix was following the trend of ________. A) indirect marketing B) disintermediation C) a franchise system D) exclusive distribution E) selective distribution

answer

B Diff: 1 Page Ref: 347 AACSB: Reflective Thinking Skill: Application

question

: 12-2 88) Chewing gum is stocked in many outlets in the same market or community; in fact, it is placed in as many outlets as possible. This is an example of ________ distribution. A) exclusive B) selective C) multichannel D) intensive E) disintermediated

answer

D Diff: 2 Page Ref: 351 AACSB: Reflective Thinking Skill: Application

question

: 12-3 89) Which product(s) will most likely be intensively distributed? A) Olympus digital cameras B) BMW cars C) Guess blue jeans D) Coca Cola E) Nike running shoes

answer

D Diff: 1 Page Ref: 351 AACSB: Analytic Skills Skill: Application

question

: 12-3 90) Which product will most likely be exclusively distributed? A) BMW cars B) Levi's blue jeans C) Bazooka bubble gum D) Prairie Farms yogurt E) Coca-Cola

answer

A Diff: 1 Page Ref: 351 AACSB: Analytic Skills Skill: Application

question

: 12-3 91) Tiffany ; Co jewelry can only be found in a limited number of intermediaries. This is an example of ________ distribution. A) exclusive B) intensive C) quality D) high-end E) independent

answer

A Diff: 2 Page Ref: 351 AACSB: Reflective Thinking Skill: Application

question

: 12-3 92) Why is it important for manufacturers to be sensitive to the needs of their dealers? A) Dealers have few legal rights. B) Poorly performing dealers will be replaced. C) Dealers fail to provide value to the entire channel system. D) Dealer support is essential to creating value for the customer. E) Manufacturers cannot break commitments to channel.

answer

D Diff: 2 Page Ref: 353 AACSB: Analytic Skills Skill: Application

question

: 12-4 93) Caterpillar, the famous heavy equipment manufacturer, has a reputation for working in harmony with its worldwide distribution network of independent dealers. Caterpillar has shared its successes with its dealers and protected its dealers during difficult economic times. This is an example of ________. A) intensive distribution B) integrated logistics management C) disintermediation D) third-party logistics E) partner relationship management

answer

E Diff: 2 Page Ref: 353 AACSB: Reflective Thinking Skill: Application

question

: 12-4 94) Max Samuelson is a high-end fashion designer who markets his clothing lines through a limited number of highly reputable retailers. Max uses ________. A) exclusive distribution B) exclusive dealing C) exclusive territorial agreements D) full-line forcing E) tying agreements

answer

A Diff: 3 Page Ref: 356 AACSB: Reflective Thinking Skill: Application

question

: 12-4 95) Jewels for the Rich and Famous sells very exclusive jewelry with a minimum price of $25,000 to customers around the world. Speed of delivery to distant markets is a must. Management should consider using ________ as its main carrier. A) rail B) air C) truck D) the Internet E) water

answer

B Diff: 2 Page Ref: 360 AACSB: Analytic Skills Skill: Application

question

: 12-5 96) Grayville Rock and Gravel, located in a seaport town, sells rock, gravel, and sand to local markets. It has just been awarded a contract with a company 500 miles down the coast. Management should consider switching from truck to ________ transport. A) water B) rail C) pipeline D) air E) none of the above

answer

A Diff: 2 Page Ref: 360 AACSB: Analytic Skills Skill: Application

question

: 12-5 97) When Home Depot allows key suppliers to use its stores as a testing ground for new merchandising programs, it is implementing a ________. A) shared services B) partnership management C) shared projects D) third-party project E) cross-functional, cross-company team

answer

C Diff: 2 Page Ref: 362 AACSB: Reflective Thinking Skill: Application

question

: 12-5 98) UPS Supply Chain Solutions, which handles all of its clients' "grunt work" associated with logistics, is an example of ________. A) integrated logistics management B) a distribution center C) selective distribution D) a third-party logistics provider E) a cross-functional, cross-company team

answer

D Diff: 2 Page Ref: 362 AACSB: Reflective Thinking Skill: Application

mkt ch12 – Flashcard

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