Chapter 13 Quiz Marketing 201

In vertical integration, control is expanded to two or more successive links of production or distribution.

True

What is a primary difference between an industrial distributor and a manufacturers' agent?

A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does.

Franchising is typical of the administered vertical marketing system.

False

Paper towels and trash-can bags are most likely to be distributed through ____ and ____.

Intensive; Dual Distribution

If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are...

Long-term commitments

Eric is concerned about not having enough air conditioning units in inventory during June, July, and August so he keeps extra inventory to guard against stock outs during this critical period. Eric is keeping..

Safety Stock

Walmart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of..

Supply chain management

GNC sells vitamins and other products related to health and nutrition through franchises located at malls and shopping centers around the world. If GNC makes an agreement with Target to sell its private-label GNC vitamins in Target retail locations, this would likely lead to..

Channel Conflict

Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using..

Dual Distribution

Select the greatest advantage of horizontal channel integration.

Efficiencies in advertising, marketing research, and purchasing are increased.

Without wholesalers and other intermediaries:

Products would likely be more expensive due to the use of less efficient channel members.

The reasons a vertically integrated channel can be more effective against competition is because of all of the following except...

Tightly controlled and bureaucratic management style.

Channel power is an ability related to influence goals of other channel members.

True

Convenience products usually are distributed intensively because sales of these products tend to have a direct relationship to availability.

True

Firms that desire to convey an exclusive image for their products may wish to limit the number of outlets available.

True

Full-line forcing requires that channel members purchase the supplier's entire line to obtain any of the products.

True