WMU Marketing 2500 Online Quiz Chapter 10

Which of the following would be considered an upstream partner in a company's supply chain?

A firm that provides technical expertise in the production of a product.

Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain?

Abundon

More than 80 percent of McDonald's restaurants worldwide are owned and operated by franchisees. The illustrates a(n) __________ marketing system.

Contractual vertical

Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is toward ____________ insofar as product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones.

Disintermediation

High-end luxury brands like Bentley for cars, Louis Vuitton for handbags, and Rolex for watches use __________ distribution, giving a limited number of dealers the sole right to sell products in a specified geographic territory.

Exclusive

Introducing intermediaries into a distribution chain increases the number of direct channel transactions between a manufacturer and its customers.

False

Most producers sell their goods directly to final users.

False

The goal of any logistics system should be to maximize sales, not profits.

False

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ___________.

Horizontal marketing system

Which of the following is true of a conventional distribution channel?

It has each channel member acting as a separate business unit trying to maximize its own profits.

Which of the following is true of a vertical marketing system?

It has one channel member owning all the other channel members or has contracts with all other channel members.

Which of the following is true of an intensive distribution strategy?

It strives to make products available where and when consumers want them.

Victoria's Closet, a manufacturer of a bohemian-style clothing and accessories, sells its products through its online Web site, a catalogue, and specialty boutiques that target women. Which kind of channel arrangement does Victoria's closet employ to distribute its product.

Multichannel distribution system

Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers is known as __________.

Supply chain management

A __________ is made up of a company, its suppliers, distributors, and ultimately, customers who "partner" with each other to improve the performance of the entire system.

Value delivery network