Marketing Chapter 10
Which of the following is an example of horizontal channel conflict? A. A Ford dealer complaining that another Ford dealer is advertising in its territory. B.A consumer complaining to a retailer about the service he received. C.A retailer complaining about receiving damaged goods from a wholesaler. D.A consumer complaining to a producer about the quality of a product. E.A retailer complaining about a producer's pricing.
A Ford dealer complaining that another Ford 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.Control criteria B.Investment criteria C.Adaptability criteria D.Profitability 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.Contractual VMS B.Corporate VMS C.Conventional distribution channel D.Franchise E.Administered VMS
Administered VMS
What is the first step in marketing channel design? A.Identifying the number of intermediaries to use. B.Analyzing consumer needs. C.Evaluating major channel alternatives. D.Setting channel objectives. E.Identifying the types of intermediaries to use.
Analyzing consumer needs.
Which of the following describes a just-in-time logistics system? A.Just-in-time logistics systems ensure that new stock arrives at least one week before it is needed. B.Just-in-time logistics systems greatly increase inventory-carrying and inventory-handling costs. C.Just-in-time logistics systems allow producers and retailers to carry large amounts of inventory. 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 logistic systems eliminate the need for forecasting.
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 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.Marketing channel decisions only require a short-term commitment. C.Using channel intermediaries increases the number of contacts with customers. D.The reduced costs of using channel intermediaries offsets the inefficiencies of marketing channels. E.Using marketing channels allows producers to retain control over how and to whom they sell their products.
Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
Which technology could one day make the entire supply chain intelligent and automated? A.Third party logistics B.Just-in-time C.Radio frequency identification D.Vendor managed inventory E.Electronic data interchange
Radio frequency identification
_______ involves reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers. A.Inbound logistics B.Reverse logistics C.Warehousing D.Outbound logistics E.Inventory management
Reverse logistics
What are the four major functions of logistics? A.Retailing, inventory management, transportation, and logistics information management B.Inventory management, transportation, shipping, warehousing C.Warehousing, inventory management, transportation, logistics information management D.Warehousing, inventory management, transportation, retailing E.Warehousing, inventory management, retailing, logistics information management
Warehousing, inventory management, transportation, logistics information management
What is the most common type of a contractual VMS? A.A wholesaler B.A retailer C.A supplier D.A channel intermediary E.A franchise
a franchise
A(n)_______ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to find the final buyer. A.channel level B.value delivery network C.contact D.marketing channel E.supply chain
channel level
A(n) _____ is made up of one or more independent producers, wholesalers, retailers, and consumers. A.channel level B.administered vertical marketing system C.conventional distribution channel D.corporate vertical marketing system E.franchise
conventional distribution channel
Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) _________. A.conventional distribution channel B.contractual VMS C.vertical marketing system D.corporate VMS E.administered VMS
corporate VMS
Online marketers taking business from traditional brick-and-mortar retailers is an example of _____. A.an administered VMS B.vertical conflict C.disintermediation D.horizontal conflict E.franchising
disintermediation
Producers of convenience products typically use ______ distribution. A.exclusive B.direct C.franchise D.selective E.intensive
intensive
Full-line forcing 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. Which of the following statements is true regarding full-line forcing? A.It is always illegal. B.It is always legal. C.It may or may not be legal. D.It is only legal in New York, California and Texas. E.It is only illegal in Europe.
it may or may not be legal
One key function performed by channel members is ___________, or shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging. A.contact B.risk taking C.promotion D.negotiating E.matching
matching
Companies now use ________ and supply chain management software to help recruit, train, organize, manage, motivate, and evaluate relationships with channel partners. A.logistics B.distribution C.channel management D.partner relationship management E.customer relationship management
partner relationship management
Companies today see channel members as first-line customers and practice strong ________. A.discount pricing B.B2B selling C.consumer advertising D.partner relationship management E.trade promotions
partner relationship management
Which channel partners in a company's supply chain are upstream from a manufacturer or producer? A.Business distributors B.Suppliers. C.Retailers D.Customers E.Wholesalers
suppliers
When setting channel objectives, companies should state the objectives in terms of ______. A.targeted levels of customer service B.competitor's objectives C.exclusive distribution arrangements D.the length of the channel E.expected profitability
targeted levels of customer service
The length of a channel is indicated by ___________. A.the number of intermediary levels B.the number of retailers in the channel C.the number of final consumers D.the number of producers E.the number of wholesalers in the channel
the number of intermediary levels
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.whether to use intensive or exclusive distribution B.the responsibilities of channel members C.economic criteria D.the profitability of the channel E.consumer needs
the responsibilities of channel members
A(n) _______ is made up of the company, suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system. A.supply chain B.marketing channel C.channel level D.contact E.value delivery network
value delivery network
Under which type of system does the customer share real-time data on sales and current inventory levels with the supplier, and the supplier then takes full responsibility for managing inventories and deliveries? A.Just-in-time logistics B.RFID C.Piggybacking D.Vendor-managed inventory E.Reverse logistics
vendor managed inventory
