Question 1

Pharmaceutical companies sell some of their products to hospitals and clinics directly.They also market other products to large retail chains such as Walgreens that distribute them to their stores across the nation.In addition,they sell products to drug wholesalers that sell to the remaining independent drugstores in the United States.What method of distribution best describes the method used by pharmaceutical companies in this example?

Accepted Answer

A)   dual distribution
B)   vertical distribution
C)   horizontal distribution
D)   direct distribution
E)   exclusive distributionF) C) and E)
G) B) and E)

Question 2

A commonly used indirect channel moves product from producer to retailer to consumer.This channel is used when

Accepted Answer

A)   the cost of maintaining inventory is low.
B)   the cost of inventory makes it too expensive to use a wholesaler.
C)   there is little if any seasonal demand.
D)   the risk lies solely with the manufacturer.
E)   the retail outlets are regionally located.F) B) and D)
G) None of the above

Question 3

Franchising is one form of

Accepted Answer

A)   a corporate vertical marketing system.
B)   a horizontal marketing system.
C)   an administered vertical marketing system.
D)   a wholesaler-sponsored voluntary system.
E)   a contractual vertical marketing system.F) B) and E)
G) A) and B)

Question 4

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 goals.F) C) and D)
G) B) and D)

Question 5

When a retailer owns a manufacturing operation,it is referred to as

Accepted Answer

A)   forward integration.
B)   lateral integration.
C)   a joint venture.
D)   horizontal integration.
E)   backward integration.F) All of the above
G) A) and E)

Question 6

Exclusive distribution refers to

Accepted Answer

A)   the distribution of products or services in markets where there are currently no other competitors.
B)   the distribution of products or services where the producer owns the entire channel of distribution.
C)   the density of distribution whereby a firm tries to place its products or services with only one retail outlet in a specified geographical area.
D)   the density of distribution whereby a firm tries to place its products or services in as many outlets as possible.
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) C) and E)
G) A) and C)

Question 7

All of the following sources produce channel conflict except which?

Accepted Answer

A)   A manufacturer increases its distribution coverage in a geographical area.
B)   A channel member bypasses another member and sells or buys products directly.
C)   Disagreements over how profit margins are distributed among channel members.
D)   Manufacturers believe wholesalers or retailers are not giving their products adequate attention.
E)   A channel member wants to use vendor-managed inventory.F) A) and D)
G) A) and E)

Question 8

American Hospital Supply helps its customers (hospitals) manage inventory and streamline order processing for hundreds of medical supplies.The source of American Hospital Supply's power is its

Accepted Answer

A)   economic influence.
B)   expertise.
C)   identification with a particular channel member.
D)   legitimate rights through contracts.
E)   governmental contracts.F) C) and E)
G) A) and B)

Question 9

Which statement regarding efficient supply chains is most accurate?

Accepted Answer

A)   Efficient supply chains use common platforms and common components across several products.
B)   Efficient supply chains rely on large geographically dispersed inventory warehouses.
C)   Efficient supply chains traditionally use expensive, but faster, modes of transportation.
D)   Efficient supply chains may utilize cross-docking.
E)   Efficient supply chains emphasize economies of scale by increasing the variety of system configurations offered.F) A) and E)
G) A) and D)

Question 10

Internet marketing channels refers to

Accepted Answer

A)   the use of the Internet to make products and services available for consumption or use by consumers or organizational buyers.
B)   a firm's computer-driven inventory management through an entirely mechanized warehousing system.
C)   intranet systems linking all aspects of production within a single firm.
D)   the information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings.
E)   the name given to all Internet addresses that end in ".com" to indicate that these websites are commercial entities that distribute goods and services.F) B) and C)
G) A) and B)

Question 11

In marketing channels for business products,an intermediary that performs a variety of marketing channel functions including selling,stocking,delivering a full product assortment,and financing is referred to as

Accepted Answer

A)   an agent.
B)   an industrial distributor.
C)   a wholesaler.
D)   a retailer.
E)   a channel captain.F) B) and D)
G) A) and B)

Question 12

Any intermediary with legal authority to act on behalf of the manufacturer is referred to as

Accepted Answer

A)   a dealer.
B)   an agent.
C)   a retailer.
D)   a wholesaler.
E)   a distributor.F) A) and B)
G) None of the above

Question 13

In a supply chain setting,replenishment time refers to lead time for an item,which means the time between the ordering of an item and when it is

Accepted Answer

A)   billed to the customer.
B)   acknowledged by the customer.
C)   billed and paid for by the customer.
D)   promised for delivery.
E)   received and ready for use or sale.F) A) and E)
G) B) and E)

Question 14

Channel conflict that arises when one member bypasses another member and sells or buys products directly is referred to as

Accepted Answer

A)   horizontal conflict.
B)   channel circumvention.
C)   lateral conflict.
D)   disintermediation.
E)   dual distribution.F) B) and C)
G) A) and E)

Question 15

Channels are typically designed to satisfy one or more of four consumer interests.What are they and why are they important?

Accepted Answer

A consideration in channel design is gai...

Question 16

Which of the following statements regarding supply chain customer service is most accurate?

Accepted Answer

A)   The output of a supply chain is measured in total units sold.
B)   Customer service must be balanced against total logistics cost factors.
C)   The output of a supply chain is measured either in total units sold or total number of customers served.
D)   A firm's goal should be to provide superior customer service regardless of costs.
E)   Customer service is the responsibility of marketing channel members and not the supplier network.F) A) and C)
G) C) and D)

Question 17

Intermediaries performing a transactional function in distribution are engaged in buying,selling,and

Accepted Answer

A)   storing.
B)   financing.
C)   transporting.
D)   risk-taking.
E)   merchandising.F) C) and D)
G) B) and E)

Question 18

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) A) and B)
G) B) and D)

Question 19

The combination of successive stages of production and distribution under a single ownership is referred to as

Accepted Answer

A)   a contractual vertical marketing system.
B)   a corporate vertical marketing system.
C)   an integrated marketing system.
D)   a corporate horizontal marketing system.
E)   a contractual horizontal marketing system.F) C) and D)
G) A) and B)

Question 20

Order cycle time refers to

Accepted Answer

A)   the time between when an order is placed and when payment is received.
B)   the time between the sale of the first production batch to the sale of the next production batch.
C)   the cycle between one full warehouse shipment to the next full warehouse shipment.
D)   the time between the ordering of an item and when it is received and ready for use or sale.
E)   the average time between reorders by a given wholesaler or retailer in the marketing channel.F) B) and D)
G) A) and E)

Exam 12: Managing Marketing Channels and Supply Chains

Order cycle time refers to

Correct Answer
verified

The combination of successive stages of production and distribution under a single ownership is referred to as

Correct Answer
verified

In a supply chain setting,replenishment time refers to lead time for an item,which means the time between the ordering of an item and when it is

Correct Answer
verified

In marketing channels for business products,an intermediary that performs a variety of marketing channel functions including selling,stocking,delivering a full product assortment,and financing is referred to as

Correct Answer
verified

Channel conflict that arises when one member bypasses another member and sells or buys products directly is referred to as

Correct Answer
verified

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 Answer
verified

Internet marketing channels refers to

Correct Answer
verified

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

Correct Answer
verified

Any intermediary with legal authority to act on behalf of the manufacturer is referred to as

Correct Answer
verified

All of the following sources produce channel conflict except which?

Correct Answer
verified

When a retailer owns a manufacturing operation,it is referred to as

Correct Answer
verified

Intermediaries performing a transactional function in distribution are engaged in buying,selling,and

Correct Answer
verified

Correct Answer
verified

A commonly used indirect channel moves product from producer to retailer to consumer.This channel is used when

Correct Answer
verified

Which of the following statements regarding supply chain customer service is most accurate?

Correct Answer
verified

Franchising is one form of

Correct Answer
verified

Channels are typically designed to satisfy one or more of four consumer interests.What are they and why are they important?

Correct Answer
verified
A consideration in channel design is gai...
View Answer

Which statement regarding efficient supply chains is most accurate?

Correct Answer
verified

Exclusive distribution refers to

Correct Answer
verified

American Hospital Supply helps its customers (hospitals) manage inventory and streamline order processing for hundreds of medical supplies.The source of American Hospital Supply's power is its

Correct Answer
verified

Exam 12: Managing Marketing Channels and Supply Chains

Order cycle time refers to

Correct AnswerverifiedShow Answer

The combination of successive stages of production and distribution under a single ownership is referred to as

Correct AnswerverifiedShow Answer

In a supply chain setting,replenishment time refers to lead time for an item,which means the time between the ordering of an item and when it is

Correct AnswerverifiedShow Answer

In marketing channels for business products,an intermediary that performs a variety of marketing channel functions including selling,stocking,delivering a full product assortment,and financing is referred to as

Correct AnswerverifiedShow Answer

Channel conflict that arises when one member bypasses another member and sells or buys products directly is referred to as

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

Internet marketing channels refers to

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

Any intermediary with legal authority to act on behalf of the manufacturer is referred to as

Correct AnswerverifiedShow Answer

All of the following sources produce channel conflict except which?

Correct AnswerverifiedShow Answer

When a retailer owns a manufacturing operation,it is referred to as

Correct AnswerverifiedShow Answer

Intermediaries performing a transactional function in distribution are engaged in buying,selling,and

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A commonly used indirect channel moves product from producer to retailer to consumer.This channel is used when

Correct AnswerverifiedShow Answer

Which of the following statements regarding supply chain customer service is most accurate?

Correct AnswerverifiedShow Answer

Franchising is one form of

Correct AnswerverifiedShow Answer

Channels are typically designed to satisfy one or more of four consumer interests.What are they and why are they important?

Correct AnswerverifiedA consideration in channel design is gai...View AnswerShow Answer

Which statement regarding efficient supply chains is most accurate?

Correct AnswerverifiedShow Answer

Exclusive distribution refers to

Correct AnswerverifiedShow Answer

American Hospital Supply helps its customers (hospitals) manage inventory and streamline order processing for hundreds of medical supplies.The source of American Hospital Supply's power is its

Correct AnswerverifiedShow Answer

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A consideration in channel design is gai...
View Answer

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