Marketing Chapter 10 Quiz
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 producer about the quality of a product. C. A retailer complaining about receiving damaged goods from a wholesaler. D. A retailer complaining about a producer's pricing. E. A consumer complaining to a retailer about the service he received.
A. A Ford dealer complaining that another Ford dealer is advertising in its territory.
What is the most common type of a contractual VMS? A. A franchise B. A wholesaler C. A supplier D. A retailer E. A channel intermediary
A. A franchise
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 may or may not be legal. B. It is only illegal in Europe. C. It is always legal. D. It is always illegal. E. It is only legal in New York, California and Texas.
A. It may or may not be legal.
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. 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 decisions only require a short-term commitment.
A. Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
Companies now use ________ and supply chain management software to help recruit, train, organize, manage, motivate, and evaluate relationships with channel partners. A. partner relationship management B. logistics C. channel management D. distribution E. customer relationship management
A. partner relationship management
What is the first step in marketing channel design? A. Analyzing consumer needs. B. Identifying the number of intermediaries to use. C. Identifying the types of intermediaries to use. D. Setting channel objectives. E. Evaluating major channel alternatives.
Analyzing consumer needs.
Which channel partners in a company's supply chain are upstream from a manufacturer or producer? A. Wholesalers B. Suppliers. C. Retailers D. Business distributors E. Customers
B. Suppliers.
A(n) _____ is made up of one or more independent producers, wholesalers, retailers, and consumers. A. channel level B. conventional distribution channel C. franchise D. administered vertical marketing system E. corporate vertical marketing system
B. conventional distribution channel
When setting channel objectives, companies should state the objectives in terms of ______. A. the length of the channel B. targeted levels of customer service C. exclusive distribution arrangements D. competitor's objectives E. expected profitability
B. targeted levels of customer service
Which technology could one day make the entire supply chain intelligent and automated? A. Electronic data interchange B. Vendor managed inventory C. Radio frequency identification D. Just-in-time E. Third party logistics
C. Radio frequency identification
Online marketers taking business from traditional brick-and-mortar retailers is an example of _____. A. vertical conflict B. horizontal conflict C. disintermediation D. an administered VMS E. franchising
C. disintermediation
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. risk taking B. promotion C. matching D. contact E. negotiating
C. matching
The length of a channel is indicated by ___________. A. the number of retailers in the channel B. the number of wholesalers in the channel C. the number of intermediary levels D. the number of producers E. the number of final consumers
C. the number of intermediary levels
What are the four major functions of logistics? A. Warehousing, inventory management, retailing, logistics information management B. Retailing, inventory management, transportation, and logistics information management C. Warehousing, inventory management, transportation, logistics information management D. Warehousing, inventory management, transportation, retailing E. Inventory management, transportation, shipping, warehousing
C. Warehousing, inventory management, transportation, 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. contractual VMS B. administered VMS C. conventional distribution channel D. corporate VMS E. vertical marketing system
D. corporate VMS
Producers of convenience products typically use ______ distribution. A. franchise B. selective C. direct D. intensive E. exclusive
D. intensive
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 allow producers and retailers to carry large amounts of inventory. C. Just-in-time logistic 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.
D. Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations.
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. Investment criteria B. Sales criteria C. Control criteria D. Profitability criteria E. Adaptability criteria
E. 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. Franchise C. Conventional distribution channel D. Contractual VMS E. Administered VMS
E. Administered VMS
_______ involves reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers. A. Inventory management B. Inbound logistics C. Outbound logistics D. Warehousing E. Reverse logistics
E. Reverse logistics
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. supply chain B. contact C. value delivery network D. marketing channel E. channel level
E. channel level
Companies today see channel members as first-line customers and practice strong ________. A. discount pricing B. trade promotions C. consumer advertising D. B2B selling E. partner relationship management
E. partner relationship management
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. economic criteria B. whether to use intensive or exclusive distribution C. consumer needs D. the profitability of the channel E. the responsibilities of channel members
E. 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. contact B. marketing channel C. channel level D. supply chain E. value delivery network
E. 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. RFID B. Just-in-time logistics C. Reverse logistics D. Piggybacking E. Vendor-managed inventory
E. Vendor-managed inventory