Marketing Chapter 10 Quiz

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 consumer complaining to a producer about the quality of a product. 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 received.

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

What is the most common type of a contractual​ VMS? A. A franchise B. A wholesaler C. A supplier D. A retailer E. A channel intermediary

A. A franchise

​Full-line forcing 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. Which of the following statements is true regarding​ full-line forcing? A. It may or may not be legal. B. It is only illegal in Europe. C. It is always legal. D. It is always illegal. E. It is only legal in New​ York, California and Texas.

A. It may or may not be legal.

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 only require 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.

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

A. partner relationship management

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

Analyzing consumer needs.

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

B. Suppliers.

​A(n) _____ is made up of one or more independent​ producers, wholesalers,​ retailers, and consumers. A. channel level B. conventional distribution channel C. franchise D. administered vertical marketing system E. corporate vertical marketing system

B. conventional distribution channel

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

B. targeted levels of customer service

Which technology could one day make the entire supply chain intelligent and​ automated? A. Electronic data interchange B. Vendor managed inventory C. Radio frequency identification D. ​Just-in-time E. Third party logistics

C. Radio frequency identification

Online marketers taking business from traditional​ brick-and-mortar retailers is an example of​ _____. A. vertical conflict B. horizontal conflict C. disintermediation D. an administered VMS E. franchising

C. disintermediation

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

C. matching

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

C. the number of intermediary levels

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

C. ​Warehousing, inventory​ management, transportation, logistics information management

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

D. corporate VMS

Producers of convenience products typically use​ ______ distribution. A. franchise B. selective C. direct D. intensive E. exclusive

D. intensive

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.

Channels often involve​ long-term commitments and companies have many alternatives. What type of criteria should be used if the company wants to keep the channel flexible so that it can respond to environmental​ changes? A. Investment criteria B. Sales criteria C. Control criteria D. Profitability criteria E. Adaptability criteria

E. Adaptability criteria

Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this​ represent? A. Corporate VMS B. Franchise C. Conventional distribution channel D. Contractual VMS E. Administered VMS

E. Administered VMS

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

E. Reverse logistics

​A(n)_______ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to find the final buyer. A. supply chain B. contact C. value delivery network D. marketing channel E. channel level

E. channel level

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

E. partner relationship management

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

E. the responsibilities of channel members

​A(n) _______ is made up of the​ company, suppliers,​ distributors, and,​ ultimately, customers who​ "partner" with each other to improve the performance of the entire system. A. contact B. marketing channel C. channel level D. supply chain E. value delivery network

E. value delivery network

Under which type of system does the customer share​ real-time data on sales and current inventory levels with the​ supplier, and the supplier then takes full responsibility for managing inventories and​ deliveries? A. RFID B. ​Just-in-time logistics C. Reverse logistics D. Piggybacking E. ​Vendor-managed inventory

E. ​Vendor-managed inventory