question

1) Which of the following is NOT a typical supply chain member? A) reseller B) supplier C) wholesaler D) retailer's creditor E) government agency

answer

E. government agency

question

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

E) Parallel with

question

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

E) physical distribution

question

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) supply and demand chain

answer

A) value delivery network

question

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) intermediaries

question

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) marketing decision

question

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) long-term commitments

question

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) strategy development

answer

C) scale of operation

question

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) consumers

question

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) offer greater efficiency in making goods available to target markets

question

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

answer

B) supply and demand

question

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) time, place, and possession

question

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

answer

D) financing

question

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) promotion

question

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) length

question

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 members

answer

B) less control

question

17) All of the institutions in a channel are connected by flows, including 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) promotion

question

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) complex behavioral system

question

19) One advantage of using 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) specialized role

question

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) Vertical; horizontal

question

21) Historically, ________ have lacked the leadership to assign member roles and manage conflict. A) corporate vertical marketing systems B) contractual vertical marketing systems C) conventional distribution channels D) administered vertical marketing systems E) conventional vertical marketing systems

answer

C) conventional distribution channels

question

22) A conventional distribution channel consists of one or more ________ producers, wholesalers, and retailers. A) product-related B) independent C) contract D) franchised E) hybrid

answer

B) independent

question

23) A channel consisting of one or more independent producers, wholesalers, or retailers each seeking to maximize its 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) conventional distribution channel

question

24) An advantage of a vertical marketing system (VMS) over a conventional distribution channel is that it acts as a ________ system. A) unified B) democratic C) socially responsible D) customer-driven E) task-driven

answer

A) unified

question

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) franchise agreements

answer

B) single ownership

question

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

answer

corporate, contractual, and administered

question

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

Contractual agreements

question

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

answer

franchise organization

question

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) conventional marketing channel E) multichannel distribution system

answer

Administered VMS

question

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

answer

horizontal marketing system

question

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

multichannel distribution systems

question

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

answer

selling at a higher gross margin

question

Which of the following is the most likely disadvantage of adding new channels in a multichannel distribution system? A) decreasing understanding of complex markets B) decreasing control over the system C) fewer opportunities for franchising D) increasing disintermediation E) reducing conflict among channel members

answer

decreasing control over the system

question

Which of the following is a major disadvantage of a multichannel system? A) channel conflict B) less net profit C) fewer domestic sales D) inefficiencies E) declining employee morale

answer

channel conflict

question

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

disintermediation

question

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

technology; direct and online

question

Marketing channel design calls for analyzing consumer needs, setting channel objectives, ________, and evaluating them. A) establishing budget guidelines B) identifying major channel alternatives C) seeking approval from regulators D) seeking legal recommendations E) measuring objectives

answer

identifying major channel alternatives

question

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

identifying what consumers want from the channel

question

To increase a channel's service level, the channel must provide a greater assortment of products, more add-on services, and ________. A) stable prices B) less control C) faster delivery D) better customer communication E) follow-up

answer

faster delivery

question

Companies should state their channel objectives in terms of targeted levels of ________. A) advertising B) efficiency C) customer service D) conflict reduction E) profitability

answer

customer service

question

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

perishable products

question

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

responsibilities

question

When a company determines 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

selective

question

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) selected C) intensive D) administered E) corporate

answer

exclusive

question

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) dual E) multichannel

answer

selective

question

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

answer

territory

question

Channel members should be evaluated using all of the following criteria EXCEPT which one? A) economic factors B) control issues C) adaptability criteria D) channel leadership E) none of the above

answer

channel leadership

question

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) adaptability C) economic D) control E) distribution

answer

economic

question

It is common for international marketers to ________ their channel strategies for each country in which they do business. A) extend B) adapt C) restrict D) seek approval for E) eliminate

answer

adapt

question

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) insurmountable language barriers D) high regional taxes E) the religious caste system

answer

inadequate distribution systems

question

Marketing channel management calls for selecting, managing, ________, and evaluating channel members over time. A) reducing conflict B) reducing waste C) motivating D) terminating E) reinstating

answer

motivating

question

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

answer

customers; partners

question

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

partner relationship management

question

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

exclusive dealing

question

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

substantially lessen competition; voluntarily

question

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

franchises

question

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

a tying agreement

question

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) planning the flow of logistics information to meet customer requirements at a profit

answer

gathering customers ideas for new products

question

Marketing logistics involves which of the following distribution flows? A) outbound and inbound only B) outbound, inbound, and reverse only C) outbound and reverse only D) inbound and reverse only E) outbound only

answer

outbound, inbound, and reverse only

question

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

marketing

question

Which of the following innovations has created opportunities for significant gains in distribution efficiency? A) tying agreements B) Web-based logistics systems C) exclusive territorial agreements D) conventional distribution systems E) storage warehouses

answer

web-based logistics systems

question

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) stable

answer

targeted

question

The difference between distribution centers and storage warehouses is that distribution centers 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

move goods rather than just store them

question

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

availability

question

Which of the following lists of intermodal transportation combinations means rail and trucks, water and trucks, and water and rail? A) fishyback; airtruck; and trainship B) piggyback; airtruck; and fishyback C) trainship; fishyback; and piggyback D) piggyback; fishyback; and trainship E) piggyback, fishyback, and birdyback

answer

piggyback; fishyback; trainship

question

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

answer

information

question

Julie Newmar recognizes that her company needs to provide better customer service and trim distribution costs through teamwork, both inside the company and among all the marketing channel organizations. Julie should begin the practice of ________. A) integrated logistics management B) supply chain management C) customer relationship management D) horizontal marketing system management E) disintermediation

answer

integrated logistics management

question

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

to harmonize all of the companys logistics decisions

question

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

cross-functional, cross-company teams

question

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

the entire supply chain

question

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

third party logistics providers

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