Chapter 15 Assignment for Module 11

Example of horizontal channel conflict: Manufacturers are do not to sell their products online as a discount, fear of angering retailers. Manufacturers set a suggested retail price to keep retailers from setting prices so low that they hurt the manufacturer's brand image. Walmart is often accused of putting local discount stores out of business when it comes to a new town. When the Subway introduced its $5 promotion for foot-long subs, its franchisees objected to the resulting lower profits.

Walmart is often accused of putting local discount stores out of business when it comes to a new town.

Each business that is part of a marketing channel Blank______. Multiple choice question. interferes with the logistics of the supply chain adds value to the product is a wholesaler reduces the relevance of the product

adds value to the product

Where do fulfillment centers ship goods? Multiple choice question. To warehouses To manufacturers To consumers To retailers

To consumers

Which of the following is a franchisor typically responsible for? Multiple choice question. Interacting with customers on location Training new managers Paying royalties to franchisees Operating new locations

Training new managers

A contract between a manufacturer and a retailer may specify that the retailer must feature the manufacturer's products in order to receive certain discounts or allowances. The contract gives the manufacturer Blank______ power to require the retailer to take the agreed-upon actions. referent legitimate information reward expertise coercive

legitimate

What is a wholesaler? Multiple choice question. A salesperson that a firm can hire to represent its products A supply chain member whose primary responsibility is to sell to consumers A company that buys merchandise from manufacturers and resells it to retailers A firm that sells solely on the Internet

A company that buys merchandise from manufacturers and resells it to retailers

Which of the following is the best example of vertical channel conflict? Multiple choice question. Walmart is often accused of putting local discount stores out of business when it moves into a new town. A computer manufacturer angers its retailers by selling its products at a discount online. Independent bookstores find it hard to compete with Amazon.com. Best Buy, a major electronics retailer, is able to sell at lower prices than a small local electronics store.

A computer manufacturer angers its retailers by selling its products at a discount online.

Which statement about marketing channels is true? Multiple choice question. A marketing channel may be a combination of a direct channel and an indirect channel. Firms have the best opportunity to design the best marketing channel within their first year. The structure of a marketing channel is solely up to the goods manufacturer. A direct marketing channel is generally the best channel choice for large retailers.

A marketing channel may be a combination of a direct channel and an indirect channel.

Example of power being exerted within a marketing channel: Two small retailers in the same town inform their common supplier that they cannot accept deliveries on Saturdays. All companies in the channel are independent, one large retailer controls what a small supplier can do. Five employees of a small manufacturing plant are caught stealing from the company, they are fired and replaced. Two dozen customers picket a large retail chain, demanding that it stop selling products made in China.

Although all companies in the channel are independent, one large retailer controls what a small supplier can do.

A marketing BLANK is comprised of a number of entities, each performing a specialized role.

BLANK: channel

When a large retailer such as Costco has substantial leverage with suppliers and threatens to stop carrying certain brands unless they adhere to its demands regarding prices, conditions, and delivery of goods, it exhibits BLANK power.

BLANK: coercive

Someone who purchases the right to operate a retail outlet using a previously developed and supported name and format is called a BLANK

BLANK: franchise

A retailer that decides to withhold from a supplier important details about a consumer goods market is exerting BLANK power.

BLANK: information or informational

Offering to buy more of a product if a manufacturer lowers its wholesale price is an example of BLANK power.

BLANK: reward

What often results when channel members have opposing goals? Multiple choice question. Channel clarity Channel growth Channel conflict Channel excellence

Channel conflict

Mutual trust helps partners in strategic relationships to do which of the following? (Choose every correct answer.) Multiple select question. Give each other their profits Communicate efficiently Share ideas Discuss goals and problems Protect the market from any competition

Communicate efficiently Share ideas Discuss goals and problems

Which vertical marketing system gives complete power to the parent company? Multiple choice question. Direct Independent Corporate Conventional

Corporate

In which type of marketing channel are multiple segments owned by the parent company? Corporate vertical marketing system Conventional marketing channel Unified horizontal marketing system Independent marketing channel

Corporate vertical marketing system

When a new franchise business opens, the franchisor who owns the original business is typically still responsible for which of the following? (Choose every correct answer.) Multiple select question. Managing the physical store or restaurant Developing the products and services Advertising Selling products and services to consumers

Developing the products and services Advertising

When a new franchise business opens, the franchisor who owns the original business is typically still responsible for which of the following? (Choose every correct answer.) Multiple select question. Managing the physical store or restaurant Selling products and services to consumers Developing the products and services Advertising

Developing the products and services Advertising

In which type of marketing channel are products sold by a manufacturer to a consumer without going through a retailer? Multiple choice question. Indirect Three-stage Intermediary-based Direct

Direct

Which of the following are the common types of marketing channels? Multiple select question. Overhead Direct Intermediary Indirect

Direct Indirect

Which of the following occurs in a conventional marketing channel? Multiple choice question. The channel includes just three members: a manufacturer, a wholesaler, and a retailer. Each channel member pursues its own objectives independently, with little care about other channel members. Channel members coordinate to achieve a set of shared goals and improve the overall profitability of the channel. All channel members are managed centrally by the same corporation.

Each channel member pursues its own objectives independently, with little care about other channel members.

Who performs a specialized function within a marketing channel? Multiple choice question. No one Every member Some members One member

Every member

If a car stereo specialty retailer has extremely knowledgeable salespeople and installers, car stereo manufacturers may be motivated to let the retailer decide how its products should be marketed. What kind of power does the retailer have? Multiple choice question. Reward Referent Information Expertise Coercive

Expertise

What term describes a contractual agreement between two companies in which one company gives the other company, in exchange for a lump sum and royalties, the right to operate a retail outlet using a name and format developed by the first company? Multiple choice question. Retailing Multi-level marketing Franchising Licensing

Franchising

Which type of marketing channel includes a retailer or other intermediaries in the delivery of goods and services to consumers? Multiple choice question. Direct Indirect Online Single-stage

Indirect

Which of the following describes deep, long-term relationships between supply chain members that are based on mutual benefits? Multiple choice question. Interdependence Horizontal integration Contractual obligations Vertical integration

Interdependence

In order to avoid disappointing customers by not having the promised merchandise in stock, advertising and promotion must be coordinated with what? Multiple choice question. Hiring and firing Returns and restocking Inventory and transportation New product development and design

Inventory and transportation

Which departments must work together to make sure that advertised products are available to customers? (Choose every correct answer.) Multiple select question. Inventory control Human resources Advertising Transportation

Inventory control Advertising Transportation

Which of the following are advantages of a corporate vertical marketing system? (Choose every correct answer.) Multiple select question. It reduces potential conflict. It eliminates the need to warehouse goods. It allows the company to specialize in just one or two areas. The corporation exercises complete control over the marketing channel.

It reduces potential conflict. The corporation exercises complete control over the marketing channel.

What effect does mutual trust have on the need to monitor other supply chain members? Multiple choice question. It increases the need to monitor each other. It reduces the need to constantly monitor each other. It has no effect on firms' monitoring practices. It requires monitoring by a neutral third party.

It reduces the need to constantly monitor each other.

Which of the following types of power requires a contract? Multiple choice question. Referent Legitimate Expertise Information

Legitimate

What is the most direct supply chain in a simple economy? Multiple choice question. Manufacturer to retailer to consumer Manufacturer to consumer Consumer to manufacturer Wholesaler to retailer to consumer

Manufacturer to consumer

Which entities must a firm's sales department work with before making promises about product delivery? (Choose every correct answer.) Multiple select question. Manufacturers Distributors Stockholders Fulfillment centers

Manufacturers Distributors Fulfillment centers

Which of the following could be considered a credible commitment? Multiple choice question. Verbal reassurance Prolonged negotiations Trial run Monetary investment

Monetary investment

Many retailers want to sell Apple products in their stores because they feel it boosts their reputation to be associated with such a popular luxury brand. This illustrates what kind of power? Multiple choice question. Expertise Coercive Reward Referent Information

Referent

Which of the following intermediaries are included in indirect marketing channels? Multiple select question. Materials supplier Retailer Merchandise wholesaler Customer

Retailer Merchandise wholesaler

Which of the following types of power do monetary incentives represent? Multiple choice question. Referent Coercive Information Reward

Reward

Which type of economy is best suited to a direct, manufacturer-to-consumer supply chain? Multiple choice question. Industrial Inflated Complex Simple

Simple

Marketing channels include which of the following? Multiple select question. Legal practice centers Government agencies Stores Warehouses Environmental agencies

Stores Warehouses

In a marketing channel, the sales department must coordinate delivery with Blank______. Multiple choice question. consumers advertisers competitors' sales departments distribution centers

The distribution center

One important factor in building a successful supply chain: all parties commit to the task. Which is an example of a credible commitment on the part of a firm? Sets internal profit goals that will require that the firm's suppliers reduce their prices. The firm invests in computer software to improve information flow to suppliers. The firm promises suppliers extra support, without the resources to deliver on the promise. The firm requires its suppliers to implement just-in-time inventory systems.

The firm invests in computer software to improve information flow to suppliers.

To whom are a lump sum and royalties paid when a franchise opens? Multiple choice question. The franchisor The franchisee The supply chain The investor

The franchisor

Which statement in true about business relationships in supply chains? Multiple choice question. They are always close working partnerships. They must be between independent entities. They are based on meeting each other's needs. They must be between divisions of the same firm.

They are based on meeting each other's needs

Channel conflict arises because supply chain members sometimes have Blank______. Multiple choice question. excess inventory conflicting goals similar ideals complementary expertise

conflicting goals

In a Blank______, members of the channel pursue their own goals and maximize their own profits, regardless of the effect on other channel members. Multiple choice question. JIT system strategic relationship corporate vertical marketing system conventional marketing channel

conventional marketing channel

In a(n) Blank______ vertical marketing system, a firm owns and controls multiple segments of its supply chain. Multiple choice question. conventional administered contractual corporate

corporate

Retailers that rely on their vast experience and knowledge to decide how to market a particular supplier's products without input from the supplier are exerting BLANK power.

expertise or expert

Some companies expand successful retail businesses by entering into contracts that give others the right to operate businesses with the same name and format. This is called Blank______. Multiple choice question. franchising licensing an administered vertical marketing system co-branding

franchising

A(n) Blank______ center is similar to a distribution center, but instead of shipping to stores, it ships directly to customers. Multiple choice question. inventory fulfillment distribution cross-docking

fulfillment

Which type of channel conflict occurs when two electronics stores that sell Samsung TVs engage in a price war? Multiple choice question. horizontal contractual vertical cooperative

horizontal

To learn more about their customers, manufacturers often try to engage directly with customers on their websites. This allows manufacturers to become less dependent on retailers for customer insights. These manufacturers are seeking to limit the Blank______ power held by the retailers. reward legitimate expertise information coercive

information

In the management of market channels, a strategic relationship is also known as a(n) Blank______. Multiple choice question. contractual relationship partnering relationship mutual trust administered vertical marketing system

partnering relationship

A large grocery store chain insists that its suppliers stop packaging their bagels in plastic wrap, and they comply. This is an example of Blank______. Multiple choice question. a short supply chain direct store delivery power within a marketing channel marketing through a fulfillment center

power within a marketing channel

When supply chain members realize that their goals and success are linked to others on the same team, they develop deeper long-term Blank______. Multiple choice question. competitive advantage relationships logistics effectiveness profitability

relationships

Which of the following activities take place at distribution centers? (Choose every correct answer.) Multiple select question. Manufacture of goods Receipt of goods Marketing of goods Shipment of goods Storage of goods

storage of goods- receipt of goods - shipment of goods

In a Blank______ relationship, the supply chain members are partners who intend to maintain the relationship for quite some time and invest in ventures that will be profitable for all involved. Multiple choice question. contractual strategic supply chain franchise

strategic

Another term for marketing channel management is Blank______ management. Multiple choice question. supply chain value delivery inventory logistics

supply chain

Which of the following happens as participants in a marketing channel add value to a product? Multiple choice question. The product becomes more affordable. The market for the product becomes tighter. The cost of the product increases. The number of consumers interested in the product wanes.

the cost of the product increases

A distribution center primarily coordinates Blank______. Multiple choice question. the flow of information in all directions promotions and advertising customer service the transportation and storage of merchandise

the transportation and storage of merchandise

A TV manufacturer and one of its authorized retailers have a disagreement about the appropriate retail prices for its televisions. This is an example of Blank______ channel conflict. Multiple choice question. vertical horizontal diagonal contractual

vertical

Generally, relationships in supply chains exist because the parties ___. Multiple choice question. are horizontal equals want or need something from one another already have close working partnerships are in a vertical contractual arrangement

want or need something from one another

Manufacturers make products and sell them to Blank______, who resell the merchandise to retailers. Multiple choice question. manufacturer's representatives distribution centers independent salespeople wholesalers

wholesalers

A direct marketing channel sells a product from a manufacturer to a consumer Blank______. Multiple choice question. without an exchange of money without a retailer via a retailer via a wholesaler

without a retailer