Question 1

When a producer owns an intermediary at the next level down in the marketing channel, it is referred to as

Accepted Answer

A)   horizontal integration.
B)   forward integration.
C)   parallel integration.
D)   lateral integration.
E)   backward integration.F) A) and B)
G) B) and C)

Question 2

Enhancing a product or service to make it more appealing to buyers is ________ utility.

Accepted Answer

A)   time
B)   place
C)   possession
D)   form
E)   transactionalF) A) and E)
G) A) and D)

Question 3

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 4

What is the first step in choosing the right supply chain?

Accepted Answer

A)   Understand the supply chain.
B)   Develop a list of qualified channel members.
C)   Enumerate logistics specifications.
D)   Compare multiple-channel alternatives.
E)   Understand the customer.F) A) and D)
G) A) and E)

Question 5

One consideration in choosing a marketing channel is profitability, which is determined by the margins earned for each channel member and for the channel as a whole. Based on this information, which of the following statements would be most accurate?

Accepted Answer

A)   The more responsibilities a channel member takes in terms of distribution, advertising, and selling expenses, the greater the potential for manufacturer profitability.
B)   The more responsibilities the manufacturer assumes relative to its channel members, the greater the potential for profitability.
C)   The extent to which channel members share costs determines the margins received by each member and by the channel as a whole.
D)   While channel members can increase profitability by taking on distribution and selling expenses, advertising expenses should always remain with the manufacturer if a firm is looking for the greatest profitability.
E)   Profitability is not related to the length or nature of the distribution chain but determined by the manufacturer.F) B) and E)
G) B) and D)

Question 6

Which is the most common form of distribution intensity used today?

Accepted Answer

A)   selective distribution
B)   intensive distribution
C)   extensive distribution
D)   exclusive distribution
E)   concentrated distributionF) A) and B)
G) A) and C)

Question 7

Jacob has developed a lawn care service that will revolutionize the lawn care industry. Jacob has limited operating capital and yet he still wants a wide distribution of his new product. Which of the following options would be the best choice for Jacob?

Accepted Answer

A)   He should develop an administered vertical marketing system.
B)   He should establish a corporate vertical marketing system.
C)   He should open branch offices around the country to provide the exposure he needs.
D)   He should establish a wholesaler-sponsored voluntary chain.
E)   He should establish a service-sponsored retail franchise system.F) C) and E)
G) A) and D)

Question 8

Retailers and industrial distributors prefer exclusive distribution for two reasons. One is that

Accepted Answer

A)   it is the most common form of distribution intensity.
B)   it eliminates channel conflict.
C)   it is usually chosen for convenience.
D)   it has market coverage benefits.
E)   it limits head-to-head competition for an identical product.F) C) and D)
G) D) and E)

Question 9

A level of distribution density whereby a firm tries to place its products in a few retail outlets in a specific geographical area is referred to as

Accepted Answer

A)   intensive distribution.
B)   extensive distribution.
C)   selective distribution.
D)   exclusive distribution.
E)   concentrated distribution.F) B) and D)
G) A) and E)

Question 10

Which of the following statements regarding corporate vertical marketing systems is most accurate?

Accepted Answer

A)   Corporate vertical marketing systems combine successive stages of production and distribution under shared ownership with all links in the marketing chain sharing title to the goods.
B)   Corporate vertical marketing systems can incorporate both forward and backward integration.
C)   Corporate vertical marketing systems increase distribution costs.
D)   Corporate vertical marketing systems increase investment increases but decrease fixed costs.
E)   Corporate vertical marketing systems are only effective with low-end consumer products.F) A) and B)
G) A) and D)

Question 11

Which statement regarding responsive supply chains is most accurate?

Accepted Answer

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

Question 12

A ________ can be compared to a pipeline through which water flows-making possible the flow of products and services from a producer, through intermediaries, to a buyer.

Accepted Answer

A)   marketing chain
B)   marketing hierarchy
C)   marketing agent
D)   marketing channel
E)   marketing networkF) B) and D)
G) A) and C)

Question 13

Convenience in a supply chain 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 supplier.
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 supplier.
D)   an exchange requires equal effort by both the buyer and supplier.
E)   all logistical services are provided by a supplier network.F) C) and D)
G) A) and D)

Question 14

In logistics management, a cost-effective decision implies which of these?

Accepted Answer

A)   While it is important to drive down logistics costs, all channel members must equally benefit financially or the chain will not function effectively.
B)   Speed of delivery must be measured against increased savings in warehousing.
C)   While it is important to drive down logistics costs, customer buying requirements must be a part of the equation.
D)   The need for multiple carriers always results in lower profit margins and therefore should be avoided.
E)   The choice of intermediaries should be made on their ability to perform their tasks appropriately even if additional costs must be passed on to the consumer.F) None of the above
G) A) and B)

Question 15

An efficient consumer response system refers to

Accepted Answer

A)   an order replenishment system that maintains a 10 percent inventory rate at all times in order to guarantee there will never be stockouts.
B)   an online virtual inventory storage program that allows firms to enter in minute-by-minute information in order to avoid stockouts due to unforeseen environmental forces.
C)   a computer program that allows even the smallest manufacturer to manage its inventory system.
D)   an inventory management system that is designed to make the process of reordering and receiving products as simple as possible.
E)   an exclusive contractual agreement between delivery services such as FedEx or UPS to deliver expedited orders at a special low rate, regardless of the day and time.F) B) and D)
G) C) and D)

Question 16

Based on the information presented in the Channel Sales and Profit Marketing Dashboard above, which channel of distribution should the furniture manufacturer consider dropping?

Accepted Answer

A)   department store chains
B)   furniture store chains
C)   independent furniture stores
D)   warehouse clubs
E)   mass merchandisersF) A) and B)
G) C) and D)

Question 17

The most common intermediaries in the marketing channels for business products are industrial distributors and

Accepted Answer

A)   manufacturers.
B)   retailers.
C)   agents.
D)   wholesalers.
E)   brokers.F) C) and D)
G) B) and D)

Question 18

________ exists when producers and ultimate consumers deal one-on-one with each other.

Accepted Answer

A)   A strategic channel alliance
B)   A direct channel
C)   A horizontal marketing exchange
D)   An indirect channel
E)   A dual distribution channelF) A) and B)
G) A) and C)

Question 19

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)   In order for a supply chain to work effectively, 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.F) C) and D)
G) B) and E)

Question 20

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 B)
G) B) and D)

Exam 12: Managing Marketing Channels and Supply Chains

________ exists when producers and ultimate consumers deal one-on-one with each other.

Correct AnswerverifiedShow Answer

An efficient consumer response system refers to

Correct AnswerverifiedShow Answer

When a producer owns an intermediary at the next level down in the marketing channel, it is referred to as

Correct AnswerverifiedShow Answer

Convenience in a supply chain refers to the concept that

Correct AnswerverifiedShow Answer

Jacob has developed a lawn care service that will revolutionize the lawn care industry. Jacob has limited operating capital and yet he still wants a wide distribution of his new product. Which of the following options would be the best choice for Jacob?

Correct AnswerverifiedShow Answer

Which of the following statements regarding corporate vertical marketing systems is most accurate?

Correct AnswerverifiedShow Answer

Based on the information presented in the Channel Sales and Profit Marketing Dashboard above, which channel of distribution should the furniture manufacturer consider dropping?

Correct AnswerverifiedShow Answer

A level of distribution density whereby a firm tries to place its products in a few retail outlets in a specific geographical area is referred to as

Correct AnswerverifiedShow Answer

What is the first step in choosing the right supply chain?

Correct AnswerverifiedShow Answer

Enhancing a product or service to make it more appealing to buyers is ________ utility.

Correct AnswerverifiedShow Answer

In logistics management, a cost-effective decision implies which of these?

Correct AnswerverifiedShow Answer

Which is the most common form of distribution intensity used today?

Correct AnswerverifiedShow Answer

The most common intermediaries in the marketing channels for business products are industrial distributors and

Correct AnswerverifiedShow Answer

Which statement regarding responsive supply chains is most accurate?

Correct AnswerverifiedShow Answer

Retailers and industrial distributors prefer exclusive distribution for two reasons. One is that

Correct AnswerverifiedShow Answer

One consideration in choosing a marketing channel is profitability, which is determined by the margins earned for each channel member and for the channel as a whole. Based on this information, which of the following statements would be most accurate?

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A ________ can be compared to a pipeline through which water flows-making possible the flow of products and services from a producer, through intermediaries, to a buyer.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A direct channel exists where a producer...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified