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