1

Relating to the term, channel manager, which of the following statements is false? a. Most firms and organizations have a single designated position called channel manager. b. Channel managers refer to anyone in a firm who is involved in the marketing channel decision making. c. Depending on the type of firm, many different executives may be involved in making channel decisions. d. In some franchise organizations the, manager of franchisee relations, sometimes plays an important role in channel decision making. e. The term channel manager is used because it provides a sense of focus to the role of channel decision making

A

Several studies, including the Brown and Herring report, suggest the wholesaler's role in __________ will grow even more important to manufacturers. a. providing sales contacts b. holding inventory c. order processing d. breaking bulk e. extending credit and financial assistance

A

Ten producers of garden tools all sell through one wholesaler to five retailers. The number of contacts needed for all of the manufacturers to contact all of the retailers is __________. If the wholesaler were eliminated from the channel, the number of contacts needed would be: a. 2; 5 b. 16; 15 c. 6; 5 d. 50; 50 e. 15; 50

E

Management should develop and operate the marketing channel in such a way as to: a. Reduce costs to the lowest possible level. b. Support and enhance the other strategic variables of the marketing mix. c. Maximize sales to final users. d. Provide the bulk of the promotional support needed by the firm. e. Provide a unique service to customers.

B

Sales patterns of the different types of wholesalers since 1948 have: a. Been very similar for all types. b. Varied across different types of wholesalers. c. Increased sharply only for merchant wholesalers. d. Had almost no influence on their relative market shares. e. Increased only for agents, brokers, and commission merchants.

B

The Census of Wholesale Trade classifies wholesalers into __________ kinds of business groups. a. 24 b. 18 c. 12 d. 10 e. 36

B

When a firm finally invents the Star-Trek® Transporter, its marketing channel will come into existence only after: a. The Transporter has been introduced to the market. b. The negotiatory functions have taken place. c. Target markets have been defined. d. Shipping alternatives have been considered. e. Facilitating agencies have been contacted.

B

The five flows in marketing channels discussed in the text are a. Product, negotiation, ownership, information, payment. b. Information, advertising, promotion, product, ownership. c. Promotion, information, ownership, negotiation, transportation. d. Negotiation, product, payment, information, promotion. e. Ownership, product, negotiation, promotion, information.

E

During periods of low inflation, passing price increases through the channel: a. Becomes more difficult. b. Becomes less difficult. c. Makes no difference. d. Increases the length of the channel. e. None of the above.

A

_________ are members of the target market. a. Final users b. Retailers c. Wholesalers d. Producers e. Transportation firms

A

A well designed and managed marketing channel: a. Will be able to eliminate conflict among the channel members. b. Will have mechanisms for dealing with conflict because it cannot be eliminated. c. Will only have conflict of the type that does not impact channel efficiency. d. Will have contracts among the channel members that effectively resolve conflict before it arises. e. Will have to deal with conflict on an ad hoc basis as nothing else can be done.

B

Computerized inventory control systems available to all channel members will mean: a. Increased dominance by manufacturers over retailers. b. More time for the manufacturer to plan production schedules. c. Slower responses by retailers to slow-moving items. d. Decreased profits. e. Better forecasting techniques.

B

The "official" definition of a recession among professional economists is: a. One quarter of decline in GDP. b. Two consecutive quarters of decline in GDP. c. Three consecutive quarters of decline in GDP. d. Four consecutive quarters of decline in GDP. e. Any three quarterly declines during a two-year period.

B

The Census of Wholesale Trade classifies wholesalers as all of the following except: a. Merchant wholesalers. b. Full-function or limited function wholesalers. c. 18 groupings based on the kind of business. d. Agents and brokers. e. Manufacturers' sales branches and offices.

B

The Simplicity Pattern case indicates that manufacturers: a. Should treat wholesalers and retailers the same. b. Cannot assume the courts will rule that retailers with different operating characteristics are not in competition. c. Can refuse to deal with channel members who undercut suggested retail prices. d. Do not need to document their cases. e. Cannot force franchises to buy all of their supplies from a designated source.

B

When an evaluation of key areas of the relationship of a channel member with other members takes place, a(n) ____________ has been used. a. advisory council analysis b. marketing channel audit c. cost-benefit analysis d. perceptions survey e. early warning system

B

A hot tub manufacturer estimates it will take ten personal sales calls, each of which costs $250, and 25 phone calls, each costing $25, to get five retailers to carry its product. The measure of contactual efficiency in dollar terms is: a. $2,500. b. $1,250. c. $3,125. d. $1,375. e. $275.

C

A relatively new technology that uses an electronic tag to track people or products using radio waves is called? a. Electronic scanners b. Computerized inventory control tags c. RFID tag d. Portable computers e. Universal product codes

C

Changes in technology occur: a. Smoothly and predictably over time. b. At a decelerating pace. c. Do not occur evenly or predicatively change over time. d. Only at the manufacturing level of the marketing channel. e. At accelerating rates in developing countries.

C

During periods of low inflation: a. It is easier to pass price increases through the channel. b. Manufacturers, wholesalers, and retailers rarely face built-in cost pressures. c. It becomes more difficult to pass price increases through the channel. d. Increasing prices to offset cost pressures is more feasible. e. Members of the channel are less sensitive to higher prices.

C

In inflationary times, channel members can expect consumer spending to: a. Slow down. b. Increase. c. Be unpredictable. d. Drop off for durable goods but remain fairly steady for non-durables. e. Drop off for services but remain fairly steady for tangible products.

C

In inflationary times, intermediaries generally can be expected to: a. Stock up on inventory at today's prices. b. Be enthusiastic about manufacturer's new product introductions. c. Pressure manufacturers for special deals. d. Increase the product line. e. Increase the amount of money borrowed from banks.

C

In order to get retailers to display its product, a manufacturer has to have its salespeople go to the retailers' stores, set up the displays, and instruct them in how to utilize the displays. In this example: a. Conflict is obviously not present. b. Channel efficiency is apparently quite high. c. Extra input is needed to achieve the distribution objective. d. Trade margins appear to be too low. e. The manufacturer is unable to achieve channel efficiency.

C

In practice, conflict is usually spotted: a. Immediately. b. When it is first beginning to develop. c. After it is well developed and obvious. d. After a marketing channel audit has been conducted. e. After channel members' perceptions of performance have been measured.

C

K&B Products, a producer of perfumes, prohibits its intermediaries from selling competitive perfume products. K&B is engaged in: a. Selective distribution. b. Full-line forcing. c. Exclusive dealing. d. Refusal to deal. e. Pushing.

C

Pure Play e-tailers, such as Amazon and Etoys, competing with 'bricks and mortar' companies is an example of what type of competition? a. Vertical b. Channel system c. Intertype d. Vertical Marketing systems e. Horizontal

C

The most important of the sociocultural factors listed in the text include all of the following except: a. Globalization. b. Consumer mobility and connectedness. c. Demographics. d. Social networking. e. The Green Movement.

C

The relationship between channel conflict and channel performance is expressed in terms of: a. Communications policy. b. Incompatibilities and dissension. c. Channel efficiency. d. Channel processes. e. There is no established relationship between channel conflict and channel performance.

C

Vertical marketing systems are typically divided into the following three basic categories: a. Corporate, contractual, and horizontal. b. Contractual, vertical, and franchise. c. Administered, contractual, and corporate. d. Corporate, voluntary associations, and administered. e. Retailers' cooperatives, contractual, and corporate.

C

When considering the flows in the marketing channel for lawn tractors, product flows __________ and negotiation flows __________. a. Down the channel; down the channel b. Down the channel; up the channel c. Down the channel; both up and down d. Up the channel; down the channel e. Up the channel; both up and down

C

Which of the following is a false statement about the 2007-2008 recession? a. Many consumers shifted to lower priced products and brands. b. Consumer spending in multiple business categories. c. Consumer spent less on the Internet. d. Unemployment rates rose. e. The business sector found that it had excess production capacity.

C

"Competition between an independent hardware store and the hardware department of a Sears store is an example of: a. Vertical competition. b. Channel system competition. c. Horizontal competition. d. Intertype competition. e. Vertical marketing competition.

D

A sustainable competitive advantage is one that a. lasts at least five years. b. is based on a superior product feature. c. usually stresses a lower price. d. is difficult for competitors to match. e. stresses heavy promotional spending.

D

Conflict between Burger King and its franchisees has occurred because: a. Increases in Burger King's product line. b. Burger King raising fees it charges its franchisees. c. Greater push by Burger King to use online web sites to market its burgers. d. Burger King franchisees were forced to set low prices for some menu items. e. Burger King forced improvements of franchisee profit margins.

D

Conflict in the marketing channel is usually referred to as behavior that is: a. Nasty and vicious. b. Unwarranted and useless. c. Object centered. d. Goal impeding. e. Unfair.

D

Deflation on a wide scale resulting in a decline in prices across a broad spectrum of goods and services: a. Has been a characteristic of the 1990s economy. b. Occurs about once each decade. c. Almost always results from inflation. d. Has not occurred in the U.S. since the 1930s. e. Always follows periods of inflation.

D

From a marketing channels perspective, social networking has: a. Caused consumers to make poor product choices. b. Not lived up to the expectations that the Internet would allow consumers to be better informed. c. Helped consumers make better product choices but has had no effect on their channel choices. d. It has made consumers more demanding about the channels they choose. e. All of the above.

D

Ideally, the channel manager would like to exercise __________ over which firms in the channel perform the distribution tasks. a. A veto power b. Limited control c. Substantial control d. Total control e. Autonomous control

D

In some of the countries in Tropical Africa, very long channels with many layers of intermediaries are common. Such channel structures within the sociocultural context of Tropical Africa are: a. Highly inefficient. b. Highly irrational. c. Not suited to the needs of the consumers. d. Rational and reasonably efficient. e. Archaic and cumbersome.

D

The Japanese distribution system that links together manufacturers, wholesalers and retail sales outlets is called: a. Trading companies b. Export management companies. c. Category killers. d. Keiretsu. e. Merchant Wholesaler.

D

The _______________ Act passed in 1914 granted powers to investigate and enforce unfair methods of competition in interstate commerce. a. Celler-Kefauver b. Sherman Anti-Trust c. Robinson-Patman d. Federal Trade Commission e. Clayton

D

The real interest rate is: a. The same as the nominal rate. b. About twice the nominal rate. c. Higher when inflation is higher. d. The nominal rate of interest minus the inflation rate. e. The nominal rate of interest plus the inflation rate.

D

The underlying theme of the relationship among channel members presented in the text stresses: a. Conflict. b. Power struggles. c. Lack of community. d. Cooperation. e. Animosity.

D

To help intermediaries through periods of high inflation, manufacturers can do all of the following except: a. Increase pull promotion. b. Emphasize lower-priced products in its product line. c. Provide low cost financing for inventory purchases. d. Decrease inventory turnover. e. Provide faster order processing.

D

A piece of federal legislation that specifically deals with price discrimination is the: a. Clayton Act. b. Baitman-Roberson Act. c. Patman-Morgan Act. d. Price Maintenance Act. e. Robinson-Patman Act.

E

A wholesaler and retailer have become embroiled in conflict over attempts by the wholesaler's sales force to help the retailer display its products. The retailer views this sales force as a nuisance that interferes with customer service. There seems to be a problem of: a. Expectational differences. b. Goal incompatibilities. c. Resource scarcities. d. Role incongruencies. e. Perceptual differences.

E

Conflict in marketing channels is often caused by all of the following except: a. Different economic objectives. b. Ideological differences. c. Inappropriate channel structure. d. Differing perceptions. e. A focus on object centered behavior.

E

Four fundamental behavioral processes relevant to the marketing channel are: a. Role, power, conflict, and segmentation. b. Social class, motivation, conflict, and power. c. Control, cooperation, perception, and culture. d. Power, conflict, role, and communication. e. Conflict, power, communication, and group processes.

E

Other economic issues of concern to channel members include all of the following except: a. The federal budget deficit. b. High interest rates. c. The trade deficit. d. National debt. e. New companies entering the marketplace.

E

Regarding the implications of the connectivity and mobility revolution that relates to m-commerce, which of the following is true: a. Virtually all channel members will need to include m-commerce channels in their channel mixes. b. Channel members will need to sort out the role m-commerce plays in their respective multi-channel mix. c. Channel members will need to sort out the potential of m-commerce channels. d. Channel members will need to sort out the limitations of m-commerce channels. e. All of the above.

E

Retailers like to sell their own brands because of all of the following except: a. Gross margins are higher. b. They control their own destiny. c. Competitive comparisons are more difficult. d. They are exclusive to the retailer. e. Consumers prefer private label products.

E

The social systems perspective of marketing channels is appropriate because: a. The managerial perspective is less important than previously thought. b. Specialization and division of labor apply more than ever in the 1990s. c. The legal environment requires it. d. Technology changes have to be offset. e. A solely economic approach is not adequate for understanding channels.

E

To deal with inflation and recession, channel managers should do all of the following except: a. Take responsibility for helping intermediaries weather the situation. b. Have contingency plans prepared to implement when economic conditions warrant. c. Increase spending on advertising. d. Use special trade promotions. e. Increase production and inventory.

E

Using the concept of specialization and division of labor, a channel manager might engage in any of the following activities except: a. Allocate transportation of product to an outside shipping firm. b. Allocate transportation of product to the manufacturer's own trucking fleet. c. Allocate transportation of product to the wholesaler's trucking fleet. d. Allocate transportation of product to the retailer. e. Allocate transportation of product to an independent trucking company.

d

39. Ten manufacturers of wallpaper all sell through one wholesaler to five retailers. The number of contacts needed for all of the manufacturers to contact all of the retailers is: a. 2. b. 16. c. 6. d. 50. e. 15.

E

According to the text, the most pervasive and obvious environmental force affecting managers in all kinds of business and nonbusiness organizations has been: a. Economic environment. b. Sociocultural environment. c. Competitive environment. d. Legal environment. e. Technological environment.

A

Agents and brokers: a. Do not take title to goods. b. Are not considered members of the commercial channel. c. Represent 1 or 2 manufacturers. d. Work on a 'cash and carry' basis. e. Physically hold the manufacturer's inventory.

A

Economic concentration in terms of percentage of total wholesale sales enjoyed by most merchant wholesalers in their respective line of trade is: a. Relatively low. b. Very high. c. Extremely high and getting higher. d. Very high but falling rapidly. e. Very low and falling rapidly.

A

From the standpoint of the channel flows concept, only those parties who participate in the __________ flows are considered members of the marketing channel. a. Negotiation and ownership b. Product and information c. Payment and negotiation d. Information and promotion e. Product and negotiation

A

In contrast to the development of channel structure, when the channel manager develops ancillary structure, he or she is dealing with facilitating agencies that are: a. Outside of the channel decision-making process. b. An integral part of the decision-making process. c. More committed to the long-term survival of the channel. d. Able to provide additional cost saving services. e. Capable of offering new information to the manager.

A

In developing and managing the ancillary structure versus the channel structure, the problems faced by the channel manager are: a. Usually less difficult and complex. b. Usually more difficult and complex. c. Virtually the same in all respects. d. Usually more important. e. Complicated and time-consuming to solve.

A

According to the text, the most promising avenue for gaining a sustainable competitive advantage today is through an emphasis on: a. Pricing strategy. b. Channel strategy. c. Promotion strategy. d. Product strategy. e. Supply strategy.

B

According to the view taken in the text, the marketing channel may be defined as: a. the intra-organizational system for moving goods and services to their markets. b. the external contactual organization that management operates to achieve its distribution objectives. c. the path taken by goods or services as they flow from producer to final user. d. all firms outside of the organization that are involved in performing marketing functions. e. the infrastructure used to move goods from manufacturer to retailer.

B

Consumers often view the marketing channel as simply: a. Part of the manufacturer's organization. b. A group of parasites who are mainly responsible for the high prices at the supermarket. c. A lot of middlemen standing between them and the producer of the product. d. The flow of goods and services through the economy. e. The path taken by the title to goods as it moves through agencies that take title or facilitate its transfer.

C

Customer support provided by merchant wholesalers to manufacturers is often referred to as: a. Retailers' services. b. Manufacturers' services. c. Value-added services. d. Producers' services. e. Genuine wholesale services.

C

Four heavy equipment producers decide to sell their forklifts directly to 12 warehouses. The number of contacts necessary is: a. 13. b. 3. c. 48. d. 8. e. 12.

C

General merchandise, single line stores, and specialty stores are so named based on which of the following classification bases? a. Ownership of establishments b. Size of establishments c. Kind of business d. Method of consumer contact e. Legal form of organization

C

Stores that dominate a particular line of merchandise and have large shares of the market are often referred to as: a. Diversified retailers. b. Specialty retailers. c. Category killers. d. Department stores. e. Mass merchandisers.

C

The channel manager should allocate the distribution task to: a. As many intermediaries as possible. b. His/her own firm whenever possible. c. Those firms that can perform them most efficiently. d. The lowest-cost channel member. e. None of these apply.

C

The channel structure depicted as M->W->R->C indicates: a. All the firms and parties involved in the product flow. b. The intensity of distribution. c. The channel manager has allocated distribution tasks to his/her own firm, wholesalers, retailers and consumers. d. A channel without any facilitating agencies. e. Who is responsible for distribution tasks.

C

According to the text, the confusion over the definition of the marketing channel stems mainly from which of the following causes? a. Marketing channels are complex. b. There are simply too many definitions of the marketing channel. c. Too many "academic types" have become involved. d. The differing perspectives or viewpoints used. e. There are too many marketing channels for anyone to understand.

D

Which of the following is not a facilitating agency? a. FlowPipeline, Inc. b. First National Bank of Chicago c. Brooke Advertising, Inc. d. Binney & Smith e. Federal Express

D

1. Which type of strategy did Walmart decide to use to compete with Amazon? a. Heavy advertising b. Price reduction c. Establish kiosks in Walmart stores d. Wholesale distribution e. Mass distribution via its own online channel

E

A multi-channel strategy means: a. A firm uses multiple promotional strategies to reach customers. b. A firm advertises its products or services on many television stations. c. Numerous intra-organizational activities are used to provide products and services to customers. d. A product has many features that are desired by customers. e. A company reaches its customers through more than one channel.

E

Adam Page, channel manager at Wood Products, Inc., read in this morning's paper that two large Midwest furniture retailing chains had merged. Page needs to recognize the potential impact of this change in the external environment on all of the following except: a. Wood Products, Inc. b. Public warehouses, trucking firms, and other Midwest facilitating agencies. c. All Midwest furniture retailers. d. Consumers. e. The change in interest rates on business loans.

E

For accounting firms and other producers of services: a. Marketing channels do not exist. b. Marketing channels are much more important. c. Marketing channels tend to be much longer. d. Marketing channels are generally of much less importance. e. Marketing channels often include agents or brokers.

E

For channel managers, which of the following is a variable in the external environment? a. Interest rates b. Emerging competitors c. Birth rates d. Inflation rates e. All of the above

E

Management of the marketing channel frequently involves all of the following except: a. Interorganizational management. b. The setting of distribution objectives. c. Operating the channel. d. Interorganizational management. e. Negotiating functions such as buying and selling.

E

Which statement about Gazelle is false? a. Gazelle distributes electronic products using its online channel. b. Gazelle buys, takes title and stores electronic products. c. Gazelle pays for electronic products up front, before it has a buyer for them. d. It is part of a $300 billion industry that distributes used electronic equipment. e. Distribution channels are not adequately used by Gazelle..

E

___________ are firms that primarily buy, take title to, store, and physically handle products. a. Agents b. Commission merchants c. Manufacturers' offices d. Brokers e. Merchant wholesalers

E

Manufacturers' agents are often referred to as: a. Manufacturer's representatives. b. Retailers. c. Wholesaler's cooperatives. d. Sales support staff. e. Limited function wholesalers.

A

"____________ has created world-class customer expectations that need to be satisfied through world-class channel strategy, design and management." a. Globalization. b. Consumer mobility and connectedness. c. Demographics. d. Social networking. e. The Green Movement.

A

All of the following are advantages of using arbitration for resolving channel conflict except: a. It lessens secrecy. b. It is less expensive than litigation. c. It confronts problems in their incipient stages. d. It is relatively fast. e. It often involves industry experts.

A

All technology has both up sides and down sides. To manufacturers, the downside of electronic scanners and computerized inventory control systems is: a. Retailers react very quickly to sales and thus can suddenly stop ordering slow-selling product. b. Manufacturers are too dependent on retailers for information. c. Retailers pressure manufacturers for large quantities of fast-selling products. d. An inability to predict customer needs. e. Manufacturers are unable to control who has access to information.

A

Competition between Kmart and Wal-Mart is an example of: a. Horizontal competition. b. Intertype competition. c. Vertical competition. d. Channel system competition. e. Horizontal-vertical competition.

A

Competition is different than conflict because: a. In competition the parties do not try to impede each other's goal attainment. b. Competition is personal. c. In conflict the parties' goals are compatible. d. Competition is self-centered. e. Competition is direct.

A

In a recession, intermediaries are at greatest risk if: a. They cannot sell their heavy inventories. b. They do not reduce prices to final consumers. c. They do not increase promotional spending. d. They do not expand their product lines. e. They do not enhance information technology capabilities.

A

In recent years, trends in wholesaling are showing a tendency towards: a. Consolidation. b. A decrease in average size. c. Becoming more like retailers than wholesalers. d. Operating only in Cyberspace. e. A decrease in average size.

A

In the case of the franchiser Alpha Graphics discussed in the text, the main cause of the conflict with franchisees probably stemmed from: a. Communication difficulties. b. Goal incompatibilities. c. Expectational differences. d. Perceptual differences. e. Role incongruities.

A

Merchant wholesalers often perform all of the following distribution tasks for customers except: a. Rendering services pertaining to the sale of goods. b. Providing customer service. c. Extending credit. d. Providing technical support. e. Assuring product availability.A

A

Procter & Gamble and Kellogg often face __________ average costs for distribution tasks when they attempt to perform them by themselves. a. High b. Low c. Medium d. Extremely low e. Marginal

A

The Census of Retail Trade classified retailers into _____ major groups by kind of business. a. 12 b. 16 c. 18 d. 10 e. 8

A

The only major difference between the specialization and division of labor principle as applied to a production versus a distribution situation is: a. Production tasks are often allocated intra-organizationally, while distribution tasks are frequently allocated inter-organizationally. b. Distribution tasks are much less amenable to specialization and division of labor than production tasks. c. Only logistics tasks are capable of being broken down for specialization. d. Production tasks are more easily divided into separate tasks. e. It is not possible to attain an optimal allocation of distribution tasks.

A

The potential of retail intermediaries for performing distribution tasks: a. Has increased. b. Is likely to decrease in the future. c. Has not changed. d. Will be a value added function. e. Will only change if the economy grows over 5% per year.

A

To cope with periods of slow economic growth, channel managers need to: a. Increase productivity. b. Expand product lines. c. Increase sales personnel. d. Decrease capital expenditures. e. Decrease sales to foreign markets.

A

When Wal-Mart is performing negotiatory functions, it is involved in a. Transferring title, selling, and buying. b. Buying, selling, and transportation. c. Risk-taking, selling, and credit. d. Selling and advertising. e. Transferring title and providing storage.

A

Which of the following is not a relatively new type of technology that can have a major impact on marketing channels? a. Uniform Product Codes b. Smartphones c. Mobile robots d. 3-D modeling e. Ultra-wideband technology

A

Which of the following statements is correct? a. The use of additional intermediaries will often increase the level of contactual efficiency. b. Specialization and division of labor as well as contactual efficiency considerations are all that is needed to make decisions about intermediary usage. c. Contactual efficiency and labor efficiency provide a framework for deciding whether or not to use intermediaries in the channel. d. Specialization and division of labor does not lead to contactual efficiency. e. The use of retailers provides greater contactual efficiencies than the use of wholesalers.

A

With regard to channel conflict, it is true that: a. The channel manager must make a conscious effort to detect channel conflict. b. A marketing channel audit is the best method for conflict detection. c. Surveys of channel members' perceptions of performance are useless for the detection of conflict. d. A company's sales force should not be used to help detect conflict. e. Manufacturer vs. wholesaler perceptions do not lead to channel conflict.

A

_______________ is the tem most commonly used to describe interconnectedness and interdependencies of countries around the world. a. Globalization. b. Consumer mobility and connectedness. c. Demographics. d. Social networking. e. The Green Movement.

A

Intermediaries' average costs curves for distribution tend to be __________ those of manufacturers. a. Higher than b. Lower than c. The same as d. Longer than e. Shorter than

B

A wholesaler attempts to secure retailer acceptance for its own brand of guitars. That wholesaler also carries similar guitars from a manufacturer of a nationally known brand. This is an illustration of: a. Horizontal competition. b. Vertical competition. c. Channel system competition. d. Intertype competition. e. Multiple channel competition.

B

A widespread acceptance of teleshopping and/or computer shopping might very well do all of the following except: a. Reduce the need for traditional retail stores. b. Decrease changes made by channel participants. c. Increase consumer shopping efficiency. d. Give rise to new types of facilitating agencies. e. Give small retailers the same access to markets as large retailers.

B

Agents, brokers, and commission merchants generally: a. take title to products. b. do not take title to products. c. are listed as "limited function wholesalers" in the Census of Wholesale Trade. d. are really the same thing as merchant wholesalers. e. operate a very narrow range of products or services.

B

Agents, brokers, and commission merchants' percentage of total wholesale sales in 2002 was: a. 0% to 8%. b. 9% to 14%. c. 15% to 20%. d. 21% to 30%. e. 31% to 40%.

B

An Internet-based technology that enables both large and small businesses and organizations to utilize computer applications without having to have their own hardware, software, office computing space, and staff is called: a. Raid systems. b. Cloud computing. c. RFID tags. d. Mobile robots that delivery in large offices. e. Computerized inventory system.

B

As consumer spending slows down in recessionary periods, marketing channels for __________ usually feel the impact earliest. a. consumer packaged goods b. consumer durable goods c. health services d. tobacco and alcohol products e. None of the above.

B

Between 1948 and 2002 for retail establishments: a. Average sales and numbers of stores increased. b. Average sales increased and the number of stores decreased. c. Average sales decreased and the number of stores decreased. d. Average sales decreased and the number of stores increased. e. Total sales increased and the number of stores increased.

B

By the close of the 20th century, it was said about recessions that: a. There would be more recessions in the future and they would be more severe than past recessions. b. Information technology could be used to warn businesses of potential economic slowdowns and companies could make adjustments. c. Although there would no longer be any recessions, the new economy would experience more depressions. d. The business cycle of 'boom' and 'bust' would be more rapid. e. Economic slowdowns could be diverted by increasing interest rates and decreasing inflation.

B

Contactual efficiency viewed from the channel manager's perspective is: a. The ratio of intermediaries to final customers. b. The relationship between negotiation effort relative to achieving the distribution objective. c. A relationship between negotiation efforts relative to specialization and division of labor. d. The ratio of intermediaries to distribution tasks performed. e. Cost savings in negotiating activities.

B

During recessionary periods, channel members at the wholesale and retail levels are likely to: a. Try to increase their inventory levels. b. Lose sales volume. c. Broaden their product line. d. Increase financial borrowing. e. Improve product quality.

B

During the decade from 1992 to 2002, Census data show that the percentage of total wholesale sales enjoyed by merchant wholesalers: a. Increased slightly. b. Decreased slightly. c. Stayed the same. d. Increased by over 10%. e. Decreased by almost one third.

B

Economic concentration in many kinds of retail businesses is: a. Getting lower. b. Increasing. c. Staying the same. d. Highly variable across time. e. Very volatile.

B

Facilitating agencies: a. Are members of the marketing channel. b. Perform non-negotiatory functions. c. Are of little importance to the operation of the channel. d. Are seldom called on by the channel manager. e. Are members of the commercial channel.

B

Gift wrapping paper on a grocer's shelf is an example of: a. Vertical integration. b. Scrambled merchandise. c. Retail assortment. d. Horizontal integration. e. Channel dysfunction.

B

In general, basic decisions in channel strategy usually __________ operating decisions in logistics management. a. Follow b. Precede c. Occur simultaneously with d. Are less important than e. Are more important than

B

In the development of channel strategy, the channel manager is faced with: a. A sales decision. b. An allocation decision. c. A tactical decision. d. A logistics decision. e. An operations decisions.

B

McDonald's competition with Burger King is an example of: a. Vertical competition. b. Horizontal competition. c. Intertype competition. d. Vertical-intertype competition. e. Vertical marketing system competition.

B

SEA Publishing and Kate's Bookstores are embroiled in conflict over who should establish retail prices. The conflict likely is the result of: a. Communication difficulty. b. Decision domain disagreements. c. Goal incompatibility. d. Perceptual differences. e. Role incongruencies.

B

The Coors Company has decided to focus on channel strategy as the key factor in achieving sustainable competitive advantage because: a. In the beer market, product, price and promotion simply are not important strategic variables. b. The relationship between a manufacturer and its channel members is not copied easily by competitors. c. The beer market is growing so rapidly that manufacturers have difficulty securing enough distributors. d. There is a high rate of new product success. e. It is easy to maintain brand recognition.

B

The channel manager must __________ the legal environment as it affects the channel. a. be an expert on b. have a general knowledge of c. be familiar only with four basic pieces of federal legislation relevant to d. follow closely and in detail all court cases impinging on e. retain an attorney that has knowledge of

B

The greater the degree of optimization in carrying out a distribution objective: a. The lower is the level of channel efficiency. b. The higher is the level of channel efficiency. c. The faster the distribution objective is achieved. d. The lower is the level of conflict. e. The higher is the level of conflict.

B

Trends in retailing in the U.S. suggest: a. The number of stores is growing rapidly. b. Average dollar sales per store has increased. c. The number of retail stores has fallen by 50 percent in the last 25 years. d. A movement by retailers to reduce the number of distribution tasks they perform. e. A total sales volume greater than $5 trillion.

B

Virtually all retailers serve as: a. Buying agents for the producer. b. Selling agents for their suppliers. c. Advertising agents for manufacturers. d. Limited function businesses. e. The external marketing staff for manufacturers.

B

When the value of the U.S. dollar is high: a. The price of U.S. products decreases relative to foreign products. b. The price of U.S. products increases relative to foreign products. c. It takes fewer foreign dollars to buy U.S. products. d. U.S. products become more competitive in foreign markets. e. It takes more U.S. dollars to buy foreign products.

B

Which of the following is not relevant to the definition of, channel? a. External, meaning the channel exists outside the firm. b. Internal, meaning the channel exists as part of the firm. c. Contactual organization, referring to those firms involved in negotiatory functions. d. Operates, suggesting involvement by management in the affairs of the channel. e. Distribution objectives, meaning management has certain distribution goals in mind.

B

Which of the following statements regarding appraising the effects of conflict on the channel is true? a. At present, the conflict index is used in most consumer products channels. b. At present, most appraisals rely on the channel manager's subjective judgment. c. At present, most channel managers use a linear scale measuring conflict intensity and frequency. d. At present, the channel manager uses a scale to relate frequency of disagreements to channel member performance. e. Channel managers that use objective scales of analysis obtain the best results for identifying channel conflict.

B

_____________ occur when publishers want to sell as much of their product as possible through Amazon.com and when Amazon.com wants to sell as much merchandise as possible from all sources. a. Perceptual differences b. Goal incompatibilities c. Expectation differences d. Communication difficulties e. Role incongruities

B

A basic phenomenon in the ranks of retailers since 1948 has been: a. The tendency toward larger-scale retailers as measured by average sales per store. b. The large increase in the number of retail stores for each census period since 1948. c. The increase of average sales per store. d. The consistent large decline in the number of retail stores. e. The decrease in the size of retail establishments.

C

A distinction is made between channel members and facilitating agencies because: a. Sometimes academic hairsplitting is necessary. b. The channel members are part of the interorganizational system, while the facilitating agencies are not. c. The channel management problems are often different for channel members versus facilitating agencies. d. The use of facilitating agencies is not a frequent occurrence for many firms. e. Channel members and facilitating agencies have different levels of control in the movement of goods.

C

Absolute sales of all three types of wholesalers _________ during the period 1992 to 2002. a. Decreased b. Stayed the same c. Increased substantially d. Fell drastically e. Increased by less than a fraction of one percent

C

According to the text, the technology that is likely to have the greatest impact on marketing channels is: a. Television. b. Automated warehousing. c. The Internet. d. Hand-held computers. e. Cellular phones.

C

Channel management is concerned mainly with a. Providing for the physical availability of products. b. Planning and overseeing the firm's logistics activities. c. The entire process of setting up and operating the contactual organization. d. Developing the firm's overall strategic marketing program. e. Operating the firm's entire marketing mix.

C

Channel management should be viewed as: a. The fourth element of the marketing mix. b. Being more important to the firm's strategy than the marketing mix. c. One of the major strategic areas of marketing management. d. A subdivision of logistics. e. An element of the distribution function.

C

Clayton Tennis Equipment, a manufacturer, cannot perform distribution tasks efficiently so it uses Jackson Sports Equipment as a wholesaler to distribute its products in the Midwest. Clayton likely is inefficient in performing distribution tasks because: a. Jackson is better positioned to select and use facilitating agencies. b. Clayton's fixed costs are too high. c. Jackson can spread its fixed costs across products from multiple manufacturers. d. Clayton's marginal revenue exceeds its marginal costs. e. Clayton has low average production costs.

C

The concept of specialization and division of labor: a. Is more important in production than distribution. b. Is less important in distribution than production. c. Is of equal importance in production and distribution. d. Is rarely practical in distribution. e. Applies mainly to production situations.

C

The fundamental determinant of whether a firm is a member of a marketing channel is: a. If the firm performs distribution tasks. b. If the firm is considered to be important to the channel manager. c. If the firm performs negotiatory functions. d. If the firm performs tasks that are necessary to make products or services available to ultimate buyers. e. If the firm performs ancillary tasks.

C

The technology and scale economies that enable producers and manufacturers to operate at a low average cost for production are: a. Also usually present in the performance of distribution tasks. b. Even greater when it comes to performing distribution tasks. c. Often lacking in the performance of distribution tasks. d. Less important to the efficient performance of distribution tasks. e. Easily attainable when performing distribution tasks.

C

The text argues that the role of marketing channels in marketing management is: a. An extremely important tactical issue. b. The most important part of marketing management. c. Of strategic importance in many cases. d. Important mainly in the automobile business. e. To offset problems in product strategy.

C

Which of the following statements is false? a. Consumer expectations have moved firms to add additional channels. b. Both B2C and B2B businesses are increasing the number of channels they use to distribute their products c. The flexibility to respond to consumers does not appear to be relevant to channel design. d. Channels must be targeted to reach intended customer segments. e. The increasing role of technology is helping to foster the use of multiple channels.

C

Because the Sales Coordinator at Borden, Inc. makes channel decisions, he/she can be considered: a. A distribution manager. b. A logistics manager. c. A channels specialist. d. A channel manager. e. A marketing specialist.

D

Distribution tasks that were formerly the province of the wholesaler or manufacturer have increasingly: a. Been shifted to facilitating agencies. b. Been shifted off to smaller wholesalers. c. Been neglected by manufacturers and wholesalers. d. Been taken over by larger retailers. e. Been shifted to independent agents or brokers.

D

For the channel manager, the external environments can be ranked, from most important to least important, as: a. Economic, competitive, sociocultural, technological, legal. b. Legal, competitive, technological, economic, sociocultural. c. Economic, legal, competitive, technological, sociocultural. d. There is no single sequence for all industries at all times. e. All are equally important.

D

Four fundamental behavioral processes relevant to the marketing channel are: a. Role, power, conflict, and segmentation. b. Social class, motivation, conflict, and power. c. Control, cooperation, perception, and culture. d. Power, conflict, role, and communication. e. Conflict, power, communication, and group processes.

D

In order to reach its customers, Ralph Lauren apparel uses all of the following in its multi-channel strategy, except: a. Upscale department stores. b. Online sales at Polo.com. c. Company stores. d. Catalogs. e. Specialty retail stores.

D

In the commercial channel, participants who are specifically excluded are: a. Producers. b. Manufacturers. c. Wholesale and retail intermediaries. d. Consumer and industrial final users. e. Agents and brokers.

D

In the context of the channel flows concept, logistics involves a. Management of all of the flows. b. Management of only the information flow. c. Management of none of the major flows. d. Management of the product flow. e. Management of new distribution channels.

D

In the context of the management perspective used in the text, it is appropriate to view final users as: a. Intermediaries. b. Facilitating agencies. c. Intermediate users. d. Target markets. e. Producers.

D

Marketing channel management should be considered: a. The premier strategic planning area of the firm. b. An important part of logistics management. c. A special tactical phase of marketing management. d. A major strategic area of marketing management. e. A component of operations management.

D

Merchant wholesalers perform all of the following functions except: a. Processing orders. b. Providing market coverage. c. Holding inventory. d. Selling merchandise to final users. e. Offering customer support.

D

Most wholesalers could be characterized with regard to their size as: a. Giant enterprises. b. Large businesses. c. Very small "mom and pop" businesses. d. Relatively small businesses. e. Conglomerates.

D

The Census of Wholesale Trade classifies wholesalers into the following three categories: a. Merchant wholesalers, manufacturers' sales branches, and public warehouses. b. Sales branches and offices, company-owned stores, and merchant wholesalers. c. Merchant wholesalers, brokers, and commission merchants and agent wholesalers. d. Manufacturers' sales branches and offices; agents, brokers, and commission merchants; and merchant wholesalers. e. Merchant wholesalers, manufacturers' facilitators, brokers, and independent producers.

D

The Internet and World Wide Web has connected millions of people and institutions and a. Has increased the need for intermediaries. b. Has eliminated intermediaries. c. Is the only determinant of the role of intermediaries in the marketing channels. d. Is an important determinant in the use of intermediaries in marketing channels. e. Does not have any effect on the use of intermediaries in the marketing channels.

D

The basic divisions of the marketing channel are: a. Buyers and sellers. b. Buyers, sellers and facilitators. c. Consumer and industrial markets. d. Producers and manufacturers; intermediaries; and final users. e. Contactual organizations and non-contactual organizations.

D

The channel manager must analyze the external environment in terms of its impact on: a. Target markets. b. Facilitating agencies. c. Intermediaries. d. All channel participants. e. Retailers and brokers.

D

To perform distribution tasks efficiently, a firm needs all of the following except: a. Expertise. b. Economies of scale. c. Economies of scope. d. To maintain high inventory levels. e. High production volumes.

D

Which of the following is a true statement about Internet-based channels? a. Walmart's channel model continues to rely on its 'brick and mortar' stores exclusively. b. 'Bricks and Mortar' retailers that added online capabilities to traditional channels of distribution have had sluggish sales. c. Online sales have become an established distribution channel for B2C but not B2B markets. d. Internet-based channels have become a mainstream channel in the channel mixes of many firms. e. The growth of E-commerce is beginning to slow.

D

Which of the following is a true statement? a. It is unusual to use multi-channel structures to reach customers in business markets. b. Most firms sell their products using a single channel structure. c. Multi-channel structures do not work well in reaching customers in consumer markets. d. E-commerce technology that includes online sales is a common component in today's multi-channel structure. e. Service can only reach customers through a single channel structure.

D

Which of the following is not an input to achieving distribution objectives? a. Routine calls on a retailer by a wholesaler's sales force b. Fees paid by a manufacturer to a retailer for handling coupons c. Wholesalers' warehouse space d. Consumer demand for products e. Time and effort of the sales force

D

Which of the following statements is true? a. Channel management and distribution strategy are the two major components of logistics. b. Logistics and distribution strategy are the two major components of channel management. c. Logistics management is a production function, while channel management is a marketing function. d. Channel management and logistics are the two major components of distribution strategy. e. Logistics management must be formulated prior to developing a channel strategy.

D

With regard to channel conflict and channel efficiency: a. The most commonly held view is that conflict has no effect on channel efficiency. b. A wealth of empirical data about the relationships between conflict and channel efficiency exists. c. Rosenbloom hypothesizes a general curve suggesting that conflict initially increases channel efficiency. d. Channel conflict is usually expected to have a negative effect. e. Conflict forces manufacturers to use less total input.

D

___________ is the term that refers to interaction in networks comprised of individuals or organizations that are linked together based on some type of common interest. a. Globalization. b. Consumer mobility and connectedness. c. Demographics. d. Social networking. e. The Green Movement.

D

_____________ refers to the wholesaler's ability to bring together an assortment of products from a variety of manufacturers. a. Breaking bulk b. Technical support c. Order processing d. Assortment convenience e. Product line analysis

D

Merchant wholesalers are particularly well suited for performing all of the following distribution tasks for their suppliers except: a. Providing market coverage. b. Providing low-cost sales contacts over a wide geographical area. c. Providing low-cost warehousing and delivery. d. Processing orders. e. Serving as the firms' outside sales force.

E

The channel manager is: a. A quite common position today in many firms. b. About equal to a product manager. c. The marketing manager's boss. d. Almost always a staff position. e. Anyone in the firm who makes marketing channel decisions.

E

The five flows discussed in the text a. All flow both up and down the channel. b. Indicate the static nature of buyer behavior. c. Flow up the channel only. d. Flow both horizontally and vertically. e. Convey the dynamic nature of marketing channels.

E

Two retailers are fighting for the right to represent a major manufacturer in New York. The conflict between these two retailers is probably caused by: a. Decision domain disagreements. b. Role incongruencies. c. Perceptual differences. d. Expectational differences. e. Allocation of scarce resources.

E

Which of the following generalizations about conflict is not true? a. Conflict is an inherent behavioral dimension in the channel. b. Given the numerous cases from which conflict may stem, it is a pervasive phenomenon in channels. c. Conflict can affect channel efficiency. d. Various levels of conflict may have both negative and positive effects on channel efficiency-possibly resulting in no effect. e. Studies have found that leadership styles do not have an impact in creating conflict.

E

Which of the following is a false statement about the manufacturer's sales branches of Bella Manufacturing, Inc.? a. They are all owned by Bella. b. The branches are operated by Bella. c. The branches are physically separate from Bella's manufacturing plants. d. Their main purpose is to distribute the manufacturer's products. e. The branches service regions of the country.

E

Which of the following would not be classified as retailers? a. factory outlets b. vending machines c. mail order catalogs d. TV shopping shows e. food broker

E