Chapter 10 quiz
__________________ is an example of horizontal channel conflict. A. A retailer complaining about receiving damaged goods from a wholesaler B. A consumer complaining to a producer about the quality of a product C. A Subaru dealer complaining that another Subaru dealer is advertising in its territory D. A consumer complaining to a retailer about the service he received E. A retailer complaining about a producer's pricing
A Subaru dealer complaining that another Subaru dealer is advertising in its territory
Channels often involve long-term commitments, and companies have many alternatives. What type of criteria should be used if the company wants to keep the channel flexible so that it can respond to environmental changes? A. Adaptability criteria B. Profitability criteria C. Control criteria D. Investment criteria E. Sales criteria
Adaptability criteria
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent? A. Corporate VMS B. Manufacturer-sponsored retailer franchise system C. Conventional distribution channel D. Contractual VMS E. Administered VMS
Administered VMS
_________________ is the first step in marketing channel design. A. Identifying the types of intermediaries to use B. Evaluating major channel alternatives C. Identifying the number of intermediaries to use D. Setting channel objectives E. Analyzing consumer needs
Analyzing consumer needs
Which of the following describes layers of intermediaries performing some of the work to bring the product and its ownership closer to the final buyer? A. Networking contacts B. Supply chains C. Value delivery networks D. Channel levels E. Marketing channels
Channel levels
Companies such as Breitling watches and Pandora charm bracelets use which of the following types of distribution strategy? A. Selective B. Exclusive C. Intensive D. Franchise E. Direct
Exclusive
In which of the following is vertical conflict, conflict between different levels of the same channel, common? A. Independent retailers B. Channel intermediaries C. Franchise organizations D. Wholesalers E. Supplier channels
Franchise organizations
Which of the following recognizes that improved logistics mandates teamwork across the company and the entire supply chain? A. Just-in-time logistics management B. Electronic data exchange C. Integrated supply chain management D. Reverse logistics management E. Logistics information management
Integrated supply chain management
Producers of a strong brand sometimes sell it to dealers only if the dealers will take some or all of the rest of its line. This is known as full-line forcing. Which of the following statements is true regarding full-line forcing? A. It may or may not be legal. B. It is only legal in New York, California, and Texas. C. It is always illegal. D. It is always legal. E. It is only illegal in Europe.
It may or may not be legal.
Many vital and key functions are performed by marketing channels. Of the following, which is NOT one of those key functions? A. Fulfillment of completed transactions B. Completion of transactions C. Manufacturing and assembly D. Physical distribution E. Distribution of persuasive communications
Manufacturing and assembly
Which of the following is a reason that producers use marketing channels and channel intermediaries? A. Marketing channel decisions only require a short-term commitment. B. The reduced costs of using channel intermediaries offsets the inefficiencies of marketing channels. C. Using marketing channels allows producers to retain control over how and to whom they sell their products. D. Using channel intermediaries increases the number of contacts with customers. E. Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
Which of the following represents a new trend in logistics to save costs, increase efficiencies, and gain faster and more effective access to global markets? A. RFID and barcode tracking B. Outsourcing logistics functions C. Vendor managed inventory D. Electronic data exchange E. Just-in-time logistics
Outsourcing logistics functions
_________________ software systems enable companies to coordinate their whole-channel marketing efforts. A. Distribution B. Customer relationship management C. Partner relationship management D. Logistics E. Channel management
Partner relationship management
___________ entails managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers. A. Business distribution management B. Wholesaling C. Reseller networks D. Supply chain management E. Distribution networks management
Supply chain management
Which of the following indicates the length of a channel? A. The number of producers in the channel B. The number of retailers in the channel C. The number of intermediary levels in the channel D. The number of wholesalers in the channel E. The number of final consumers in the channel
The number of intermediary levels in the channel
Of the following, which most closely describes the method by which companies engage and create benefits for their customers? A. Customer relationship management B. Marketing channel C. Supply chain D. Channel level E. Value delivery network
Value delivery network
The goal of logistics is to provide a targeted level of service at the least or lowest possible cost. To achieve this goal, which of the following are logistical functional areas? A. Retailing, inventory management, transportation, and logistics information management B. Inventory management, transportation, shipping, and warehousing C. Warehousing, inventory management, transportation, and retailing D. Warehousing, inventory management, transportation, and logistics information management E. Warehousing, inventory management, retailing, and logistics information management
Warehousing, inventory management, transportation, and logistics information management
Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) _________. A. corporate VMS B. contractual VMS C. conventional distribution channel D. administered VMS E. vertical marketing system
corporate VMS
Marketing logistics addresses not only outbound logistics but also inbound logistics and reverse logistics, which means it ________________________. A. is the solution for managing costs and customer satisfaction B. involves the entire supply chain management C. it is the centerpiece for quicker times to market and enhanced cost reductions D. focuses on just-in-time inventory management E. enables producers, manufacturers, and distribution to maximize cost savings
involves the entire supply chain management
One of the primary advantages of marketing logistics is ________. A. being the solution for maximizing costs and customer satisfaction B. potentially high cost savings and improved customer satisfaction C. improved customer satisfaction and faster time to market D. cost savings in inventory management E. maximizing inbound, outbound, and reverse logistics
potentially high cost savings and improved customer satisfaction
When setting marketing channel objectives, companies should state the objective in terms of ____. A. targeted levels of customer service B. the length of the channel C. expected profitability D. competitors' objectives E. exclusive distribution arrangements
targeted levels of customer service
When 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. consumer needs B. the profitability of the channel C. economic criteria D. the responsibilities of channel members E. whether to use intensive or exclusive distribution
the responsibilities of channel members
A(n) _____ consists of producers, wholesalers, and retailers acting as a unified system. A. conventional distribution channel B. administered vertical marketing system C. distribution center D. channel level E. vertical marketing system
vertical marketing system
Companies today see channel members as ______________ and practice strong partner relationship management. A. discount pricing B. B2B selling C. first-line partners D. trade promotions E. consumer advertising
first-line partners