Question 1

Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users are referred to as a

Accepted Answer

A)  marketing channel.
B)  parallel distribution.
C)  retailer.
D)  wholesaler.
E)  distributor.F) None of the above
G) D) and E)

Question 2

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

Question 3

A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms, one of which is

Accepted Answer

A)  economic influence.
B)  stakeholder position.
C)  familial ties to other channel members.
D)  longevity in the industry.
E)  geographic proximity to the manufacturing plant.F) B) and E)
G) A) and D)

Question 4

An even more imprecise term than distributor, __________ can mean the same as retailer, wholesaler, and more.

Accepted Answer

A)  broker
B)  retailer
C)  agent
D)  dealer
E)  wholesalerF) A) and B)
G) A) and E)

Question 5

Ford uses __________, whereby the company licenses dealers in North America to sell Ford automobiles subject to various sales and service conditions.

Accepted Answer

A)  a service-sponsored producer franchise system
B)  a service-sponsored retail franchise system
C)  a manufacturer-sponsored wholesale franchise system
D)  a manufacturer-sponsored retail franchise system
E)  an administered vertical marketing systemF) B) and C)
G) A) and D)

Question 6

In a direct channel, all channel functions are performed by

Accepted Answer

A)  retailers.
B)  wholesalers.
C)  producers.
D)  brokers and agents.
E)  middlemen.F) None of the above
G) A) and B)

Question 7

The General Mills-Nestlé strategic channel alliance

Accepted Answer

A)  increased the ready-to-eat cereal worldwide market share of these companies.
B)  decreased the ready-to-eat cereal worldwide market share of these companies.
C)  increased the ready-to-eat cereal market abroad and decreased General Mills' ready-to-eat cereal market in the United States.
D)  served as a model for Post Cereal and Weetabix, a British firm.
E)  resulted in a lawsuit from Kellogg's, the global leader in the ready-to-eat cereal market, which cited unfair trade practices.F) A) and E)
G) C) and D)

Question 8

Which statement regarding responsive supply chains is most accurate?

Accepted Answer

A)  Responsive supply chains use slower modes of transportation but faster order processing.
B)  Responsive supply chains always use the least expensive mode of transportation possible.
C)  Responsive supply chains rely on large inventory warehouses.
D)  Responsive supply chains achieve economies of scale by having all inventory stored and sorted at a central location.
E)  Responsive supply chains rely heavily on information technology.F) D) and E)
G) A) and B)

Question 9

The three steps used in choosing a supply chain are (1)  understand the customer, (2)  understand the supply chain, and (3)  __________.

Accepted Answer

A)  understand the environment
B)  harmonize the supply chain with the marketing strategy
C)  understand the marketing mix
D)  understand the logistics
E)  understand the company's goalsF) A) and E)
G) A) and B)

Question 10

Nestlé and General Mills have __________ to distribute General Mills products like Cheerios in about 140 markets worldwide.

Accepted Answer

A)  multichannel distribution
B)  a direct marketing channel
C)  a cooperative distribution channel
D)  a strategic channel alliance
E)  a dual distribution agreementF) C) and D)
G) A) and B)

Question 11

Which of the following best describes the goal for a firm's inventory and transportation costs?

Accepted Answer

A)  Focus more on minimizing required inventory costs.
B)  Focus more on minimizing required transportation costs.
C)  Minimize the sum of inventory and transportation costs.
D)  Maximize the difference between required inventory and transportation costs.
E)  Set a level of transportation costs and minimize the required inventory costs.F) A) and E)
G) C) and D)

Question 12

For logistics, the customer service concept suggests that firms should

Accepted Answer

A)  automate customer service.
B)  maximize customer service levels.
C)  minimize customer service levels.
D)  minimize total logistics costs and let customer service follow.
E)  satisfy users in terms of time, dependability, communication, and convenience.F) All of the above
G) B) and E)

Question 13

Facilitating function activities include

Accepted Answer

A)  buying and selling.
B)  assorting, sorting, and storing.
C)  financing, grading, and marketing information and research.
D)  risk-taking.
E)  transportation.F) A) and C)
G) A) and E)

Question 14

What is a channel captain? What is its function and how does it accomplish this?

Accepted Answer

Because channels consist of independent ...

Question 15

Amazon uses supply chain and logistics management to

Accepted Answer

A)  make sure that it maintains the authority that comes with being the channel captain.
B)  avoid having to use quick response replenishment.
C)  manage the flow of customer orders from the distribution centers to individual's homes.
D)  lessen the amount of communication that is necessary between it and its suppliers.
E)  implement its market divestment strategies.F) A) and C)
G) C) and D)

Question 16

Strategic channel alliance refers to

Accepted Answer

A)  an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.
B)  a practice whereby one firm's marketing channel is used to sell another firm's products.
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)  an arrangement whereby companies reduce distribution costs by sharing facilities, equipment, and transportation.
E)  a practice whereby consumers can interact with various advertising media to buy products without a face-to-face meeting with a salesperson.F) All of the above
G) D) and E)

Question 17

What are the functions performed by intermediaries?

Accepted Answer

Intermediaries perform three basic funct...

Question 18

Forward integration means

Accepted Answer

A)  a retailer owns a manufacturing operation.
B)  a wholesaler owns a manufacturing operation.
C)  retailers form a strategic channel alliance with manufacturers to purchase products at better prices since they are able to place much larger orders.
D)  a producer owns an intermediary at the next level down in the marketing channel.
E)  all links in the distribution chain own stock in the manufacturer's company.F) None of the above
G) A) and B)

Question 19

The Clayton Act prohibits, restricts, or influences all of the following channel strategies and practices except

Accepted Answer

A)  exclusive dealing.
B)  refusal to deal.
C)  resale restrictions.
D)  vertical integration.
E)  full-line forcing.F) B) and C)
G) A) and D)

Question 20

Two sources of horizontal conflict are common, including when

Accepted Answer

A)  a manufacturer increases its distribution coverage in a geographical area.
B)  disagreements arise over how profit margins are distributed among channel members.
C)  manufacturers believe wholesalers or retailers are not giving their products adequate attention.
D)  a channel member bypasses another member and sells or buys products direct.
E)  dual distribution causes conflict when similar types of retailers carry different brands.F) A) and E)
G) D) and E)

Exam 15: Managing Marketing Channels and Supply Chains

The General Mills-Nestlé strategic channel alliance

Correct AnswerverifiedShow Answer

A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms, one of which is

Correct AnswerverifiedShow Answer

In a direct channel, all channel functions are performed by

Correct AnswerverifiedShow Answer

Strategic channel alliance refers to

Correct AnswerverifiedShow Answer

An even more imprecise term than distributor, __________ can mean the same as retailer, wholesaler, and more.

Correct AnswerverifiedShow Answer

Which of the following best describes the goal for a firm's inventory and transportation costs?

Correct AnswerverifiedShow Answer

Forward integration means

Correct AnswerverifiedShow Answer

Amazon uses supply chain and logistics management to

Correct AnswerverifiedShow Answer

The Clayton Act prohibits, restricts, or influences all of the following channel strategies and practices except

Correct AnswerverifiedShow Answer

For logistics, the customer service concept suggests that firms should

Correct AnswerverifiedShow Answer

What is a channel captain? What is its function and how does it accomplish this?

Correct AnswerverifiedBecause channels consist of independent ...View AnswerShow Answer

Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users are referred to as a

Correct AnswerverifiedShow Answer

Facilitating function activities include

Correct AnswerverifiedShow Answer

Ford uses __________, whereby the company licenses dealers in North America to sell Ford automobiles subject to various sales and service conditions.

Correct AnswerverifiedShow Answer

What are the functions performed by intermediaries?

Correct AnswerverifiedIntermediaries perform three basic funct...View AnswerShow Answer

Two sources of horizontal conflict are common, including when

Correct AnswerverifiedShow Answer

Which statement regarding responsive supply chains is most accurate?

Correct AnswerverifiedShow Answer

The three steps used in choosing a supply chain are (1) understand the customer, (2) understand the supply chain, and (3) __________.

Correct AnswerverifiedShow Answer

Nestlé and General Mills have __________ to distribute General Mills products like Cheerios in about 140 markets worldwide.

Correct AnswerverifiedShow Answer

Selective distribution refers to

Correct AnswerverifiedShow Answer

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Because channels consist of independent ...
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Intermediaries perform three basic funct...
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