Chapter 12

Which of the following is an example of horizontal channel​ conflict? A. A consumer complaining to a producer about the quality of a product B. A Ford dealer complaining that another Ford dealer is advertising in its territory 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 or she received

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

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. A corporate VMS C. A conventional distribution channel D. A franchise organization E. An administered VMS

An administered VMS

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

Analyzing consumer needs

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. Some channels consist of formal interactions guided by strong organizational structures. C. A marketing channel consists of firms that have partnered for their common good. D. Channel systems stand​ still, restricting formation of new intermediary systems. E. They are complex behavioral systems in which people and companies interact to accomplish​ individual, company, and channel goals.

Channel systems stand​ still, restricting formation of new intermediary systems

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

Exclusive dealing

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

Full-line forcing

Which of the following describes a​ just-in-time logistics​ system? A. ​Just-in-time logistics systems greatly increase​ inventory-carrying and​ inventory-handling costs. B. ​Just-in-time logistics systems ensure that new stock arrives at least one week before it is needed. C. ​Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations. D. ​Just-in-time logistics systems allow producers and retailers to carry large amounts of inventory. 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. The reduced costs of using channel intermediaries offsets the inefficiencies of marketing channels. B. Marketing channel decisions require only a​ short-term commitment. C. Using channel intermediaries increases the number of contacts with customers. D. Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers. 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.

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

Reverse logistics

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

Suppliers

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

Warehousing, inventory​ management, transportation, and logistics information management

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

channel management

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

competitiveness

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

contractual

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

convenience goods

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

conventional distribution channels

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

corporate VMS

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

direct marketing channel

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

integrated logistics management

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

intermediary levels

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

less control and greater channel complexity

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

limited product variety has created problems for logistics management

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. contact B. promotion C. matching D. negotiating E. risk taking

matching

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

multichannel distribution system

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

partner relationship management

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

partner relationship management

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. promotion C. distribution of information D. negotiation E. matching

pricing

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

targeted levels of customer service

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. the profitability of the channel B. the responsibilities of channel members C. consumer needs D. economic criteria E. whether to use intensive or exclusive distribution

the responsibilities of channel members

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. vendor-managed inventory E. piggybacking

vendor-managed inventory