Chapter 12

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 retailer complaining about receiving damaged goods from a wholesaler C. A consumer complaining to a retailer about the service he or she received D. A retailer complaining about a​ producer's pricing E. A consumer complaining to a producer about the quality of a product

(A) A Ford dealer complaining that another Ford dealer is advertising in its territory

________ 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. A. ​Full-line forcing B. Exclusive distribution C. Exclusive dealing D. Exclusive territorial agreements E. Intensive distribution

(A) Full-line forcing

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 require only 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

What are the four major functions of​ logistics? A. ​Warehousing, inventory​ management, transportation, and logistics information management B. ​Warehousing, inventory​ management, retailing, and logistics information management C. Inventory​ management, transportation,​ shipping, and warehousing D. ​Warehousing, inventory​ management, transportation, and retailing E. ​Retailing, inventory​ management, transportation, and logistics information management

(A) Warehousing, inventory​ management, transportation, and logistics information management

Channel members should be selected on the basis of all of the following attributes except​ __________. A. competitiveness B. growth and profit record C. cooperativeness D. years in business E. reputation

(A) competitiveness

The franchise organization is the most common type of​ __________ VMS​ (vertical marketing​ system). A. contractual B. horizontal C. administered D. conventional E. corporate

(A) contractual

________ is a strategy in which the seller requires that dealers not handle​ competitors' products. A. Exclusive dealing B. ​Full-line forcing C. Intensive distribution D. Exclusive distribution E. Exclusive territorial agreements

(A) exclusive dealing

In making products and services available to​ consumers, channel members add value. Key functions performed by the marketing channels include all of the following except​ __________. A. pricing B. distribution of information C. negotiation D. matching

(A) pricing

Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this​ represent? A. A contractual VMS B. An administered VMS C. A franchise organization D. A corporate VMS E. A conventional distribution channel

(B) An administered VMS

One key function performed by channel members is​ ________, shaping offers to meet the​ buyer's needs, including activities such as​ manufacturing, grading,​ assembling, and packaging. A. promotion B. matching C. contact D. negotiating E. risk taking

(B) Matching

Producers of​ ________ typically use intensive distribution for their products. A. luxury brands B. convenience goods C. furniture D. consumer electronics E. home appliance brands

(B) convenience goods

The concept of​ __________ recognizes that providing better customer service and trimming distribution costs require teamwork. A. inventory management B. integrated logistics management C. warehouse management D. supply chain management E. physical distribution management

(B) integrated logistics management

Companies today are placing greater emphasis on logistics for several​ reasons, which include all of the following except​ __________. A. companies can gain a powerful competitive advantage by using improved logistics to give customers better service or lower prices B. limited product variety has created problems for logistics management C. improved logistics can yield tremendous cost savings to both a company and its customers D. logistics affects the environment and a​ firm's environmental sustainability efforts E. improvements in information technology have created opportunities which did not exist before

(B) limited product variety has created problems for logistics management

Distribution channels are more than simple collections of firms tied together by various flows. Which of the following statements is NOT a characteristic of distribution​ channels? A. Some channel systems consist of only informal interactions among loosely organized firms. B. A marketing channel consists of firms that have partnered for their common good. C. Channel systems stand​ still, restricting formation of new intermediary systems. D. They are complex behavioral systems in which people and companies interact to accomplish​ individual, company, and channel goals. E. Some channels consist of formal interactions guided by strong organizational structures.

(C) Channel systems stand​ still, restricting formation of new intermediary systems.

Historically, __________ have lacked leadership and​ power, often resulting in damaging conflict and poor performance. A. administered vertical marketing systems B. corporate vertical marketing systems C. conventional distribution channels D. vertical marketing systems E. contractual vertical marketing systems

(C) conventional distribution channels

The length of a channel is indicated by the number of​ ________. A. retailers in the channel B. final consumers C. intermediary levels D. producers E. wholesalers in the channel

(C) intermediary levels

Companies now use​ ________ and supply chain management software to help​ recruit, train,​ organize, manage,​ motivate, and evaluate relationships with channel partners. A. customer relationship management B. channel management C. partner relationship management D. logistics E. distribution centers

(C) partner relationship management

Companies today see channel members as​ first-line customers and practice strong​ ________. A. consumer advertising strategies B. B2B selling C. partner relationship management D. trade promotion strategies E. discount pricing strategies

(C) partner relationship management

When setting channel​ objectives, companies should state the objectives in terms of​ ________. A. ​competitor's objectives B. exclusive distribution arrangements C. targeted levels of customer service D. expected profitability E. the length of the channel

(C) targeted levels of customer service

What is the first step in marketing channel​ design? A. Evaluating major channel alternatives B. Identifying the types of intermediaries to use C. Identifying the number of intermediaries to use D. Analyzing consumer needs E. Setting channel objectives

(D) 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 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.

When a single firm sets up two or more marketing channels to reach one or more customer​ segments, it is using​ a(n) ________. A. administered VMS B. franchise organization C. corporate VMS D. multichannel distribution system E. contractual VMS

(D) Multichannel distribution system

Channel​ members' performance should be evaluated against standards which include all of the following except​ __________. A. customer delivery time B. treatment of damaged and lost goods C. sales quotas D. channel management E. average inventory levels

(D) channel management

A(n) ​ __________ has no intermediary levels. A. ​manufacturer-sponsored retailer franchise system B. indirect marketing channel C. ​manufacturer-sponsored wholesaler franchise system D. direct marketing channel E. conventional distribution channel

(D) direct marketing channel

Which channel partners in a​ company's supply chain are upstream from a manufacturer or​ producer? A. Business distributors B. Wholesalers C. Customers D. Suppliers E. Retailers

(D) suppliers

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. the profitability of the channel D. the responsibilities of channel members E. consumer needs

(D) the responsibilities of channel members

​Sherwin-Williams sells its paint and other branded products exclusively through​ company-owned retail stores.​ Sherwin-Williams has established​ a(n) ________. A. direct marketing channel B. conventional distribution channel C. administered VMS D. contractual VMS E. corporate VMS

(E) Corporate VMS

​________ involves​ reusing, recycling,​ refurbishing, or disposing of​ broken, unwanted, or excess products returned by consumers or resellers. A. Inventory management B. Outbound logistics C. Inbound logistics D. Warehousing E. Reverse logistics

(E) Reverse Logistics

From the​ producer's point of​ view, a greater number of levels of marketing channel means​ __________. A. more control and greater channel complexity B. no control and greater channel complexity C. less control and less channel complexity D. no control and no channel complexity E. less control and greater channel complexity

(E) less control and greater channel complexity

Using​ ________, the customer shares​ real-time data on sales and current inventory levels with the supplier. The supplier then takes full responsibility for managing inventories and deliveries. A. reverse logistics B. ​just-in-time logistics systems C. RFID D. piggybacking E. ​vendor-managed inventory

(E) vendor-managed inventory