MARKETING: Exam 2 Chapter 12
Which of the following statements regarding marketing channel design is correct? A. Channel alternatives should be evaluated against economic, control, and adaptability criteria. B. It is important to let the responsibilities of channel members evolve as their relationship develops. C. Marketers should always maximize the number of intermediaries used in a channel. D. Channel objectives should be set in terms of profitability. E. In global markets, channel systems are the same in different countries.
A. Channel alternatives should be evaluated against economic, control, and adaptability criteria.
Which of the following statements is correct regarding the functions channel members perform? A. Channel members create greater efficiencies than manufacturers could achieve on their own. B. Manufacturers can decrease costs by taking on more channel functions. C. Finding and engaging customers and potential buyers is not a function performed by channel members. D. Channel members do not get involved in financinglong dashin other words, the acquisition and use of funds to cover the costs of the channel work. E. Channel members fulfill a variety of functions, but in doing so do not take any risks.
A. Channel members create greater efficiencies than manufacturers could achieve on their own.
In 2001, Apple opened its first Apple stores in the United States. These stores were owned and operated by Apple. This is an example of which type of vertical marketing system (VMS)? A. Corporate B. Conventional C. Administered D. Contractual E. Franchise
A. Corporate
Which of the following statements regarding marketing logistics is correct? A. The goal of marketing logistics should be to provide a targeted level of customer service at the least cost. B. The goal of marketing logistics is to maximize sales. C. It is important for companies to improve logistics even though logistics are not a source of competitive advantage. D. Marketing logistics handle only outbound logistics. E. Sustainability is not relevant to marketing channel logistics and the supply chain.
A. The goal of marketing logistics should be to provide a targeted level of customer service at the least cost.
Walmart has a lot of power and exerts strong influence on the suppliers they buy from. This channel power is an example of a(n) __________ vertical marketing system (VMS). A. administered B. franchise C. conventional D. contractual E. corporate
A. administered
Companies now use __________ and supply chain management software to help recruit, train, organize, manage, motivate, and evaluate channel partners. A. partner relationship management B. customer relationship management C. logistics D. channel management E. distribution centers
A. partner relationship management
Which of the following statements regarding international distribution channels is correct? A. Global marketers find that it is unnecessary to adapt their channel strategies in different countries. B. Due to logistics costs in China, the majority of companies can only access affluent areas of major cities. C. Distribution systems do not vary widely from country to country. D. For Western companies, India's distribution system is easy to navigate. E. Rural China now has a centralized, adequate distribution system.
B. Due to logistics costs in China, the majority of companies can only access affluent areas of major cities.
Which of the following statements regarding marketing channel behavior and design is correct? A. Distribution channels are nothing more than simple collections of firms tied together by various flows. B. The success of individual channel members depends on the overall channel's success. C. Vertical marketing systems lack leadership and power, often resulting in damaging conflict and poor channel performance. D. A conventional distribution channel consists of one or more independent producers, wholesalers, and retailers acting as a unified system. E. Conflicts rarely occur in marketing distribution channels.
B. The success of individual channel members depends on the overall channel's success.
Firms producing consumer electronics, furniture, and home appliance brands typically distribute their products __________. A. exclusively B. selectively C. through franchises D. intensively E. through value added resellers
B. selectively
The company, suppliers, distributors, and customers who open double quotepartnerclose double quote with one another to improve the performance of the entire system make up the __________. A. marketing channel network B. value delivery network C. supply chain network D. upstream network E. downstream network
B. value delivery network
What are the four major functions of logistics? A. Warehousing, inventory management, retailing, and logistics information management B. Warehousing, inventory management, transportation, and logistics information management C. Retailing, inventory management, transportation, and logistics information management D. Inventory management, transportation, shipping, and warehousing E. Warehousing, inventory management, transportation, and retailing
B. Warehousing, inventory management, transportation, and logistics information management
Due to changes in technology, a recent trend is for product or service producers to cut out intermediaries and go directly to final buyers. This is one form of __________. A. channel distress B. channel dissolution C. disintermediation D. a vertical marketing system E. disengagement
C. disintermediation
Some sellers require that dealers not handle competitor's products. This strategy is called __________. A. a tying agreement B. exclusive distribution C. exclusive dealing D. intensive distribution E. full-line forcing
C. exclusive dealing
One key function of channel members is __________, which involves shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging. A. negotiating B. contact C. matching D. promotion E. risk taking
C. matching
What does the process of designing marketing channels start with? A. Identifying the number of intermediaries to use B. Setting channel objectives C. Identifying the types of intermediaries to use D. Analyzing consumer needs E. Evaluating major channel alternatives
D. Analyzing consumer needs
Cross-functional teamwork within the company, building logistics partnerships, and third party logistics are all important elements of __________. A. multimodal transportation B. reverse logistics C. sustainable supply chains D. integrated logistics management E. supply chain management
D. integrated logistics management
CVS pharmacy stores have recently stopped selling cigarettes. For cigarette manufacturers, this highlights the challenge of __________ channel members. A. compensating B. rewarding C. evaluating D. selecting E. motivating
D. selecting
When setting channel objectives, companies should state the objectives in terms of __________. A. competitor's objectives B. the length of the channel C. expected profitability D. targeted levels of customer service E. exclusive distribution arrangements
D. targeted levels of customer service
After 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. whether to use intensive or exclusive distribution B. the length of the channel C. economic criteria D. the responsibilities of channel members E. consumer needs
D. the responsibilities of channel members
Which of the following statements regarding a just-in-time logistics system is correct? 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 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 allow producers and retailer to carry large amounts of inventory.
D. 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 an example of horizontal channel conflict? A. A consumer complaining to a retailer about the service they received. B. A retailer complaining about a producer's pricing. C. A retailer complaining about receiving damaged goods from a wholesaler. D. A consumer complaining to a producer about the quality of a product. E. A Ford dealer complaining that another Ford dealer is advertising in their territory.
E. A Ford dealer complaining that another Ford dealer is advertising in their territory.
Which of the following is a reason that producers use marketing channels and channel intermediaries? A. Using channel intermediaries increases the number of contacts with customers. B. Using marketing channels allows producers to retain full control over how and to whom they sell their products. C. The reduced costs of using channel intermediaries offsets the inefficiencies of marketing channels. D. Marketing channel decisions require only a short-term commitment. E. Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
E. Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
The length of a channel is determined by __________. A. the number of producers B. the number of final consumers C. the number of wholesalers in the channel D. the number of retailers in the channel E. the number of intermediary levels
E. the number of intermediary levels
__________ 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. An exclusive territorial agreement B. Exclusive distribution C. Intensive distribution D. Exclusive dealing E. Full-line forcing
E. Full-line forcing
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. piggybacking B. RFID C. reverse logistics D. just-in-time logistics systems E. vendor-managed inventory
E. vendor-managed inventory