Chapter 12 Practice
Lifebelt Insurance sells insurance only through its door-to-door salespeople. What type of marketing channel does Lifebelt use? A) inclusive B) multitiered C) indirect D) direct E) selective
D
A ________ is made up of the company, suppliers, distributors, and customers who partner to improve the performance of the entire system. A) value delivery network B) horizontal channel C) consumer base D) product delivery network E) product line
A
For which product would a company use an exclusive distribution strategy? A) luxury cars B) newspapers C) chewing gum D) dairy products E) soft drinks
A
Ford and its network of independent franchised dealers is an example of a ________. A) manufacturer-sponsored retailer franchise system B) manufacturer-sponsored wholesaler franchise system C) service-firm-sponsored retailer franchise system D) service-firm-sponsored equity strategic alliance E) manufacturer-and-service-sponsored joint venture
A
Ocean Spray sells its air fresheners only through Ray's Drugs. This is an example of ________ distribution. A) exclusive B) selective C) intensive D) indirect E) corporate
A
The ________ organization is the most common type of contractual relationship. A) franchise B) horizontal C) conventional D) multi-national E) entrepreneurial
A
When the seller allows only certain outlets to carry its products, this strategy is called ________. A) exclusive distribution B) subjective dealing C) selective distribution D) exclusive pricing E) disintermediation
A
Which of the following is a major type of vertical marketing system? A) corporate B) conventional C) multilevel D) intrinsic E) extrinsic
A
Which of the following is a type of flow that connects all institutions in a marketing channel? A) payment flow B) ownership flow C) physical flow D) promotion flow E) information flow
A
Which of the following is an environmental factor that affects channel objectives and design? A) economic conditions B) factory staffing C) organizational objectives D) interpersonal influences E) individual motives
A
Which of the following is most likely true of marketing channel decisions? A) They often involve long-term commitments to other firms. B) They have minimal influence on the prices of products offered to customers. C) They increase the amount of time a company spends connecting with customers. D) They increase the amount of effort a company puts in to distribute goods. E) They are easily altered, replaced, or discarded.
A
Which of the following is true of vertical marketing systems? A) Producers, wholesalers, and retailers act as a unified system. B) Channel members have no control over each other. C) Channel conflict is governed by informal mechanisms. D) The system is dominated by the consumer. E) Channel members work independently with no cooperation from other members.
A
Which of the following should be a manufacturer's first step when designing an effective marketing channel? A) set channel objectives B) analyze consumer needs C) identify channel alternatives D) evaluate channel alternatives E) establish strategic alliances
B
Which of the following terms refers to the wholesalers and retailers that form a vital link between the firm and its customers? A) factory-supply networks B) downstream partners C) resource banks D) upstream partners E) supply channels
B
________ VMS is a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties. A) Contingent B) Administered C) Corporate D) Contractual E) Aligned
B
________ distribution involves the use of more than one but fewer than all of the intermediaries who are willing to carry a company's products. A) Exclusive B) Selective C) Intensive D) Indirect E) Corporate
B
________ distribution is a strategy in which producers of convenience products and raw materials stock their products in as many outlets as possible. A) Direct B) Intensive C) Inclusive D) Exclusive E) Selective
B
________ logistics involves moving products from the factory to resellers and ultimately to customers. A) Customer-centered B) Outbound C) Upstream D) Reverse E) Inbound
B
________ logistics starts with the marketplace and works backward to the factory or even to sources of supply. A) Outbound B) Customer-centered C) Upstream D) Reverse E) Inbound
B
A ________ VMS consists of independent firms at different levels of production and distribution who join together through formal agreements to obtain more economies or sales impact than each could achieve alone. A) corporate B) contingency C) contractual D) communal E) conventional
C
________ logistics refers to moving products and materials from the suppliers to the factory. A) Outbound B) Diverse C) Inbound D) Reverse E) Customer-centered
C
For which of the following products would the intensive distribution strategy most likely be used? A) high-end cameras B) luxury cars C) lawn mowers D) soft drinks E) furniture
D
Producers of strong brands sometimes sell to dealers only on the condition that dealers take some or all of the rest of a product line. This practice is known as ________. A) product line franchising B) selective dealing C) cross merchandising D) full-line forcing E) disintermediation
D
To help recruit, train, organize, manage, motivate, and evaluate relationships with channel partners, companies are now installing integrated high-tech ________ systems. A) advertiser funded programming B) customer segmentation network C) brand content management D) partnership relationship management E) closed loop marketing
D
Which of the following companies uses a direct marketing channel? A) Fishhooks, a factory that manufactures fishing equipment that it ships to hobby stores worldwide B) Germfight, a factory that manufactures dental products that it distributes only to select department stores C) Apple Blossoms, a company that sells its cosmetics exclusively through Ray's Retail Store D) Holly Wreaths, a store that sells Christmas ornaments to customers via its online click-to-order catalogs E) Showdown, a clothing store that stocks merchandise from different international brands
D
________ involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit. A) Advertising B) Product positioning C) Mass customization D) Marketing logistics E) Branding
D
A marketing channel that consists of one or more intermediaries is known as a(n) ________ marketing channel. A) cyclic B) upstream C) looped D) direct E) indirect
E
A(n) ________ system involves a single firm setting up two or more marketing channels to reach one or more customer segments. A) conventional distribution B) corporate vertical marketing C) horizontal marketing D) administered vertical marketing E) multichannel distribution
E
At its most basic form, a marketing channel consists of the producer and the ________. A) retailer B) sales agent C) competitor D) processor E) consumer
E
When McDonald's offers its products inside of a Walmart store, it is using a(n) ________. A) conventional marketing system B) corporate VMS C) contractual VMS D) administered VMS E) horizontal marketing system
E
Which of the following is an indirect business marketing channel? A) producer to retailer to business distributor B) producer to wholesaler to retailer to end consumer C) producer to end-consumer to business distributor D) producer to retailer E) producer to business distributor to business customer
E
Why do firms have difficulty accessing potential market areas in developing countries, such as China and India? A) inadequate distribution systems B) anti-globalization efforts C) highly centralized rural markets D) limited manpower E) high operating costs
A
With which of the following strategies would a company give only a limited number of dealers the right to distribute its products in their territories? A) exclusive distribution B) extensive distribution C) moderate distribution D) primary distribution E) intensive distribution
A
) A ________ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. A) product platform B) channel level C) resource bank D) contact center E) customer franchise
B
) ________ are complex behavioral systems in which people and companies interact to accomplish individual, company, and channel goals. A) Customer relationship management systems B) Distribution channels C) Partner relationship systems D) Consumer bases E) Buying centers
B
A ________ VMS integrates successive stages of production and distribution under single ownership. A) contractual B) corporate C) contingency D) conventional E) communal
B
A(n) ________ consists of one or more independent producers, wholesalers, and retailers, each seeking to maximize its own profits, sometimes even at the expense of the system as a whole. A) multitiered supply chain B) conventional distribution channel C) intrinsic market matrix D) resource bank E) product platform
B
A(n) ________ marketing system consists of producers, wholesalers, and retailers acting as a unified system. A) horizontal B) vertical C) multitiered D) communal E) equilateral
B
Conflict that occurs among firms at the same level of the marketing channel is known as ________ conflict. A) multitiered B) horizontal C) vertical D) prolonged E) financial
B
Conflict that occurs between different levels of the same marketing channel is known as ________ conflict. A) horizontal B) vertical C) multitiered D) equilateral E) communal
B
From the economic system's point of view, the role of ________ is to transform the assortments of products made by producers into the assortments wanted by consumers. A) upstream partners B) marketing intermediaries C) third-party logistics D) price consultants E) factory supervisors
B
In a(n) ________ channel, the same member both produces and distributes a product or service to consumers. A) tiered B) direct C) platform D) vertical E) exclusive
B
In a(n) ________, leadership is assumed not through common ownership or contractual ties but through the size and power of one or a few dominant channel members. A) horizontal marketing system B) administered VMS C) corporate VMS D) contractual VMS E) conventional VMS
B
In a(n) ________, two or more companies at one level join together to follow a new marketing opportunity. A) administered vertical marketing system B) horizontal marketing system C) corporate vertical marketing system D) hybrid distribution system E) conventional marketing system
B
Reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers is known as ________. A) cross merchandising B) reverse logistics C) disintermediation D) diverse logistics E) inbound logistics
B
The Bookworm began delivering books directly to customers through mail instead of selling through brick-and-mortar companies. This is an example of ________. A) indirect marketing B) disintermediation C) franchising D) exclusive distribution E) intensive distribution
B
The greater the number of channel levels in a marketing channel, the ________. A) less distance between producer and end-consumer B) greater the channel complexity C) less time it takes for products to reach end-consumers D) greater the control producers have over the distribution of their products E) greater the control producers have over the demand of their products
B
The sets of firms that supply companies with the raw materials, components, parts, information, finances, and expertise needed to create products or services are known as ________. A) retailers B) upstream partners C) distributors D) downstream partners E) distribution channels
B
The term supply chain is considered limited because it ________. A) ignores the make-and-sell aspect of the market B) suggests that planning begins with raw materials and factory capacity C) takes a step-by-step, linear view of purchase-production-consumption activities D) takes a sense-and-respond view of the market E) suggests that planning starts with identifying the needs of target customers
B
When a seller requires its dealers to abstain from handling competitors' products, it is called ________. A) subjective distribution B) exclusive dealing C) selective distribution D) exclusive pricing E) disintermediation
B
Which of the following is NOT a major logistics function? A) inventory management B) product designing C) warehousing D) transportation E) packaging
B
Which of the following is a conventional consumer marketing channel? A) producer to business distributor to end consumer B) producer to wholesaler to retailer to end consumer C) producer to end consumer to business customer D) producer to retailer E) producer to business distributor to business customer
B
Which of the following is a disadvantage of adding new channels in a multichannel distribution system? A) decreasing complexity of markets B) decreasing control over the system C) reducing opportunities for franchising D) lowering sales and market coverage E) minimizing publicity needs
B
Which of the following is true of channel members? A) They act independent of each other. B) They play specialized roles in the channel. C) They are not accountable to other channel members. D) They play generalized and interchangeable roles in the distribution process. E) Their competence and cooperation don't affect the company's image or profits.
B
Which of the following is true of conventional distribution channels? A) Channel members have complete control over each other. B) Channel members seek to maximize their own profits. C) Channel conflict is governed by formal mechanisms. D) Channel members are assigned roles according to a clearly defined framework. E) Channel members work exclusively for the good of the organization.
B
________ management calls for selecting, managing, and motivating individual channel members and evaluating their performance over time. A) Inventory B) Marketing channel C) Brand image D) Customer experience E) Brand content
B
________ management refers to the management of upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers. A) Cross B) Supply chain C) Price D) Product cycle E) Customer
B
________ play an important role in matching supply and demand by providing consumers with a broad assortment of products in small quantities. A) Virtual banks B) Intermediaries C) Price consultants D) Uniform-delivery networks E) Upstream partners
B
A ________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. A) product line B) product delivery network C) marketing channel D) consumer base E) resource bank
C
A strategy of exclusive dealing is most likely considered legal if ________. A) the industry is newly developed B) both parties have large territories C) competition is not substantially lessened D) the dealer agrees to promote the competitor's products E) the dealer receives a steady source of supply and support
C
The term demand chain is considered limited because it ________. A) advocates a make-and-sell view of the market that relies on a responsive supply network B) suggests that planning starts with raw materials, productive inputs, and factory capacity C) takes a step-by-step, linear view of purchase-production-consumption activities D) ignores the evolution of the global marketplace E) overlooks the needs of target customers
C
Which of the following involves the producer agreeing not to sell to other dealers in a given area, or the buyer agreeing to sell only in its own region? A) closed loop marketing B) uniform-delivery pricing C) exclusive territorial agreement D) cross merchandising E) nationalized marketing
C
Which of the following is an advantage of adding new channels in a multichannel distribution system? A) limiting market complexity B) reducing control over the system C) expanding sales and market coverage D) decreasing marketing needs and costs E) minimizing mass customization of products
C
Which of the following is an example of an indirect marketing channel? A) June Bride, which sells bridal gowns via its click-to-order online catalogs B) Farmer Brown, who delivers fresh milk from his dairy to customers every morning C) Wine & Dine, which sells its picnic baskets to select novelty stores across the country D) Lifebelt Insurance, which sells life insurance through its door-to-door salespeople E) Rhonda's Rental, which rents cars to people for the day
C
Which of the following is true of changes in the organization of distribution channels? A) Developing new channels seldom causes conflict with a company's established channels. B) To remain competitive, product and service producers must use fewer marketing channels. C) The growth of the Internet threatens many brick-and-mortar companies with disintermediation. D) Companies have fewer channel-options today than they did in the past due to economic problems. E) Advances in technology have decreased the number of channels available to entrepreneurial firms.
C
Which of the following is true of the exclusive distribution strategy? A) It makes products available to everybody, everywhere. B) It is used primarily for convenience items. C) It helps promote a brand's luxury image. D) It gives producers no control over their products. E) It enlists all of the intermediaries willing to carry a company's products.
C
________ are large and highly automated warehouses designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible. A) Loading docks B) Open warehouses C) Distribution centers D) Shipping platforms E) Product platforms
C
________ occurs when product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones. A) Extensive distribution B) Multichannelization C) Disintermediation D) Inclusive distribution E) Cross merchandising
C
