Chapter 12 Quiz

Walmart has a lot of power and exerts strong influence on the suppliers they buy from. This channel power is an example of​ a(n) __________ vertical marketing system​ (VMS). A. contractual B. administered C. conventional D. franchise E. corporate

administered

Due to changes in​ technology, a recent trend is for product or service producers to cut out intermediaries and go directly to final buyers. This is one form of​ __________. A. a vertical marketing system B. channel dissolution C. disintermediation D. channel distress E. disengagement

disintermediation

Some sellers require that dealers not handle​ competitor's products. This strategy is called​ __________. A. intensive distribution B. exclusive distribution C. a tying agreement D. exclusive dealing E. ​full-line forcing

exclusive dealing

Cross-functional teamwork within the​ company, building logistics​ partnerships, and third party logistics are all important elements of​ __________. A. integrated logistics management B. supply chain management C. sustainable supply chains D. reverse logistics E. multimodal transportation

integrated logistics management

One key function of channel members is​ __________, which involves shaping offers to meet the​ buyer's needs, including activities such as​ manufacturing, grading,​ assembling, and packaging. A. matching B. risk taking C. contact D. promotion E. negotiating

matching

Companies now use​ __________ and supply chain management software to help​ recruit, train,​ organize, manage,​ motivate, and evaluate channel partners. A. customer relationship management B. logistics C. partner relationship management D. distribution centers E. channel management

partner relationship management

CVS pharmacy stores have recently stopped selling cigarettes. For cigarette​ manufacturers, this highlights the challenge of​ __________ channel members. A. evaluating B. motivating C. rewarding D. selecting E. compensating

selecting

Firms producing consumer​ electronics, furniture, and home appliance brands typically distribute their products​ __________. A. through value added resellers B. through franchises C. selectively D. intensively E. exclusively

selectively

When setting channel​ objectives, companies should state the objectives in terms of​ __________. A. the length of the channel B. ​competitor's objectives C. expected profitability D. exclusive distribution arrangements E. targeted levels of customer service

targeted levels of customer service

The length of a channel is determined by​ __________. A. the number of final consumers B. the number of wholesalers in the channel C. the number of intermediary levels D. the number of retailers in the channel E. the number of producers

the number of intermediary levels

After the company has defined its channel​ objectives, it should next identify its major channel alternatives in terms of the types of​ intermediaries, the number of​ intermediaries, and​ __________. A. the responsibilities of channel members B. the length of the channel C. consumer needs D. whether to use intensive or exclusive distribution E. economic criteria

the responsibilities of channel members

The​ company, suppliers,​ distributors, and customers who "partner" with one another to improve the performance of the entire system make up the​ __________. A. upstream network B. value delivery network C. marketing channel network D. supply chain network E. downstream network

value delivery network

Using​ __________, the customer shares​ real-time data on sales and current inventory levels with the supplier. The supplier then takes full responsibility for managing inventories and deliveries. A. reverse logistics B. RFID C. ​vendor-managed inventory D. piggybacking E. ​just-in-time logistics systems

vendor-managed inventory

Which of the following statements regarding a​ just-in-time logistics system is​ correct? A. ​Just-in-time logistics systems allow producers and retailer to carry large amounts of inventory. B. ​Just-in-time logistics systems ensure that new stock arrives at least one week before it is needed. C. ​Just-in-time logistics systems eliminate the need for forecasting. D. ​Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations. E. ​Just-in-time logistics systems greatly increase​ inventory-carrying and​ inventory-handling costs.

​Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations.

Which of the following is an example of horizontal channel​ conflict? A. A retailer complaining about a​ producer's pricing. B. A consumer complaining to a producer about the quality of a product. C. A consumer complaining to a retailer about the service they received. D. A Ford dealer complaining that another Ford dealer is advertising in their territory. E. A retailer complaining about receiving damaged goods from a wholesaler.

A Ford dealer complaining that another Ford dealer is advertising in their territory.

What does the process of designing marketing channels start​ with? A. Identifying the types of intermediaries to use B. Analyzing consumer needs C. Evaluating major channel alternatives D. Identifying the number of intermediaries to use E. Setting channel objectives

Analyzing consumer needs

Which of the following statements regarding marketing channel design is​ correct? A. It is important to let the responsibilities of channel members evolve as their relationship develops. B. Marketers should always maximize the number of intermediaries used in a channel. C. In global​ markets, channel systems are the same in different countries. D. Channel objectives should be set in terms of profitability. E. Channel alternatives should be evaluated against​ economic, control, and adaptability criteria.

Channel alternatives should be evaluated against​ economic, control, and adaptability criteria.

Which of the following statements is correct regarding the functions channel members​ perform? A. Channel members do not get involved in financing—in other​ words, the acquisition and use of funds to cover the costs of the channel work. B. Channel members fulfill a variety of​ functions, but in doing so do not take any risks. C. Finding and engaging customers and potential buyers is not a function performed by channel members. D. Manufacturers can decrease costs by taking on more channel functions. E. Channel members create greater efficiencies than manufacturers could achieve on their own.

Channel members create greater efficiencies than manufacturers could achieve on their own.

In​ 2001, Apple opened its first Apple stores in the United States. These stores were owned and operated by Apple. This is an example of which type of vertical marketing system​ (VMS)? A. Administered B. Franchise C. Conventional D. Corporate E. Contractual

Corporate

Which of the following statements regarding international distribution channels is​ correct? A. For Western​ companies, India's distribution system is easy to navigate. B. Rural China now has a​ centralized, adequate distribution system. C. Due to logistics costs in​ China, the majority of companies can only access affluent areas of major cities. D. Global marketers find that it is unnecessary to adapt their channel strategies in different countries. E. Distribution systems do not vary widely from country to country.

Due to logistics costs in​ China, the majority of companies can only access affluent areas of major cities.

​__________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line. A. Exclusive distribution B. Intensive distribution C. Exclusive dealing D. An exclusive territorial agreement E. ​Full-line forcing

Full-line forcing

Which of the following is a reason that producers use marketing channels and channel​ intermediaries? A. Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers. B. Using marketing channels allows producers to retain full control over how and to whom they sell their products. C. The reduced costs of using channel intermediaries offsets the inefficiencies of marketing channels. D. Marketing channel decisions require only a​ short-term commitment. E. Using channel intermediaries increases the number of contacts with customers.

Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.

Which of the following statements regarding marketing logistics is​ correct? A. The goal of marketing logistics should be to provide a targeted level of customer service at the least cost. B. Marketing logistics handle only outbound logistics. C. The goal of marketing logistics is to maximize sales. D. Sustainability is not relevant to marketing channel logistics and the supply chain. E. It is important for companies to improve logistics even though logistics are not a source of competitive advantage.

The goal of marketing logistics should be to provide a targeted level of customer service at the least cost.

Which of the following statements regarding marketing channel behavior and design is​ correct? A. Distribution channels are nothing more than simple collections of firms tied together by various flows. B. A conventional distribution channel consists of one or more independent​ producers, wholesalers, and retailers acting as a unified system. C. The success of individual channel members depends on the overall​ channel's success. D. Vertical marketing systems lack leadership and​ power, often resulting in damaging conflict and poor channel performance. E. Conflicts rarely occur in marketing distribution channels.

The success of individual channel members depends on the overall​ channel's success.

What are the four major functions of​ logistics? A. ​Warehousing, inventory​ management, retailing, and logistics information management B. ​Warehousing, inventory​ management, transportation, and logistics information​ management<b> C. ​Retailing, inventory​ management, transportation, and logistics information​ management<b> D. ​Warehousing, inventory​ management, transportation, and​ retailing<b> E. Inventory​ management, transportation,​ shipping, and warehousing

Warehousing, inventory​ management, transportation, and logistics information​ management<b>