51 questions
Which of the following is NOT a typical supply chain member?
resellers
customers
intermediaries
government agencies
raw materials supplier
________ the manufacturer or service provider is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service.
Downstream from
Upstream from
Disintermediated from
Horizontal to
Parallel with
Another term for the supply chain that suggests a sense and respond view of the market is ________.
supply and demand chain
demand chain
channel of distribution
distribution channel
physical distribution
When suppliers, distributors, and customers partner with each other to improve the performance of the entire system, they are participating in a ________.
value delivery network
channel of distribution
supply chain
demand chain
conventional distribution channel
From the economic system's point of view, the role of marketing intermediaries is to transform the assortment of products made by producers into the assortment of products wanted by ________.
channel members
distributors
consumers
manufacturers
marketers
Intermediaries play an important role in matching ________.
dealer with customer
supply and demand
product to region
manufacturer to product
information and promotion
Channel members add value by bridging the major gaps of ________ that separate goods and services from those who would use them.
time, need, and form
place, possession, and form
time, place, and possession
place, time, and need
place, need, and distribution
Which of the following is NOT a key function that intermediaries play in completing transactions?
promotion
information
matching
risk taking
negotiation
Which of the following is NOT a key function that intermediaries play in helping to fulfill a completed transaction?
physical distribution
promotion
financing
risk taking
storing goods
In a(n) ________ channel, the same member both produces and distributes a product or service.
tiered
direct
horizontal
vertical
exclusive
In marketing terms, we say that the number of intermediary levels indicates the ________ of a channel.
depth
complexity
involvement
length
width
At minimum, a marketing channel consists of a producer and a(n) ________.
wholesaler
agent
broker
intermediary
customer
To a producer of goods, a greater number of channel levels means ________ and greater channel complexity.
less distance between producer and end consumer
less control
fewer potential ideas
higher taxes
fewer channel partners
All of the institutions in a channel are connected by flows, including physical flow, flow of ownership, payment flow, information flow, and ________ flow.
promotion
acquisition
customer
return product
by-product
Joanie Calvert is experiencing a disagreement with intermediaries in the channel over who should do what and for what rewards. Joanie is experiencing ________.
a tying disagreement
channel conflict
channel disintermediation
third-party logistics
channel intermediation
________ conflict, which occurs between different levels of the same channel, is more common than ________ conflict, which occurs among firms at the same level of the channel.
Horizontal; vertical
Vertical; horizontal
Contractual; corporate
Corporate; franchise
Wholesaler; retailer
A conventional distribution channel consists of one or more ________ producers, wholesalers, and retailers.
product-related
independent
contract
estranged
merchant
A channel consisting of one or more separate producers, wholesalers, or retailers that seek to maximize their own profit-even at the expense of profits for the channel as a whole-is a(n) ________.
vertical marketing system
conventional distribution channel
independent channel allocation
corporate VMS
administered vertical marketing system
An advantage of a vertical marketing system (VMS) is that it acts as a ________ system.
unified
creative
modern
customer-driven
task-driven
A corporate VMS has the advantage of controlling the entire distribution chain through ________.
a profit-maximizing strategic plan
single ownership
mass distribution
contracts among separate members
franchise agreements
Which of the following are the three major types of vertical marketing systems?
corporate, contractual, and chain
contractual, corporate, and independent
contractual, corporate, and administered
administered, independent, and franchised
contractual, corporate, and task
A distinguishing feature of a contractual VMS is that coordination and conflict management among the independent members of the channel are attained through ________.
agents and brokers
unspoken partnerships
limited liability incorporation
contractual agreements
natural competitive forces
As marketing manager for Globe Imports and Exports, you want to start reaping the benefits of a multichannel distribution system. You will likely enjoy all of the following EXCEPT which one?
expanded sales
expanded market coverage
selling at a higher gross margin
opportunities to tailor products and services to the needs of diverse segments
Which of the following is the most likely disadvantage of adding new channels in a multichannel distribution system?
decreasing understanding of complex markets
decreasing control over the system
fewer opportunities for franchising
increasing disintermediation
reducing conflict among channel members
Due in a large part to advances in technology, ________ is a major trend whereby product and service producers are bypassing intermediaries and going directly to final buyers, or radically new types of channel intermediaries are emerging to displace traditional ones.
the vertical marketing system
the corporate marketing system
disintermediation
the corporate merger
the hostile takeover
The four major steps of designing a channel system are analyzing consumer needs, setting channel objectives, ________, and evaluating the alternatives.
establishing a budget
identifying major channel alternatives
seeking regulatory approval
seeking legal advice
measuring objectives
Which of the following should be the first step in designing a marketing channel?
identifying channel objectives
identifying what consumers want from the channel
analyzing channel alternatives
evaluating intermediaries
exploring international opportunities
Companies should state their channel objectives in terms of targeted levels of ________.
co-op advertising
efficiency
customer service
conflict reduction
profitability
Which product will most likely be intensively distributed?
Olympus digital cameras
BMW cars
Guess blue jeans
Coca-Cola
Nike running shoes
Which type of product might require a more direct marketing channel to avoid delays and too much handling?
lower-priced products
perishable products
high-priced products
products in their maturity stage
products in their decline stage
When determining the number of channel members to use at each level, three strategies are available: intensive, exclusive, and ________ distribution.
multichannel
selective
international
direct
extensive
An intensive distribution strategy is most suitable for which consumer product category?
convenience products
unsought goods
shopping products
luxury products
supplies
Sometimes a producer chooses only a few dealers in a territory to distribute its products or services. Generally these dealers are given a right to ________ distribution.
exclusive
selective
intensive
administered
corporate
Which type of distribution is used when the producer wants more than one, but fewer than all, of the intermediaries who are willing to carry its products?
exclusive
selective
intensive
administered
corporate
China and India each contain more than one billion people. However, companies can access only a small percentage of these potential markets due to ________.
inadequate distribution systems
indifference toward Western products
high regional taxes
the religious caste system
insurmountable language barriers
Sometimes a seller requires its dealers to abstain from handling competitors' products in an arrangement called ________.
exclusive distribution
exclusive dealing
selective distribution
exclusive pricing
disintermediation
Proud Pets, a producer of clothing and accessories for pets, has recently partnered with a regional chain of pet stores. Which of the following would Proud Pets be LEAST likely to expect from its new channel member?
promoting its products through advertising
assembling and packaging its products for final sale
distributing relevant marketing research information
identifying raw materials and other productive inputs
negotiating on its products' prices
Which of the following is NOT a marketing intermediary?
the supplier of the raw materials used to make glass windows
the distributor who sells stained glass windows
the wholesaler who buys the stained glass window from its creator
the showroom that displays glass windows for customers to see
the manufacturers' agent who sells the stained glass windows
Which of the following is the best example of a direct channel?
J&L Manufacturing Company sells drapery hardware to The Home Depot's Design Center, and the Design Center then sells it to consumers.
Family Dollar Store sells modeling clay to school-age children.
A wholesaler sells candy to convenience stores, who then sell it to store patrons.
Farmer Mintz sells corn to the Hughes household, who will eat it for supper.
A farmer in Columbia sells flowers to an international broker, who makes sure the flowers reach consumers in the United States.
Steve's Physco Skates sells its products to Walmart, who then sells them to the consumer. This is an example of a(n) ________.
direct marketing channel
producer channel
indirect marketing channel
retailer channel
corporate vertical marketing system
When two Taco Bell restaurants have a disagreement over who should be able to sell in quantity at a discount to the local high school band, they are in a ________ conflict.
vertical
conventional channel
logistics
horizontal
functional
Staples Office Supply opened an online store that created competition with many of its dealers. The corporate office created a(n) ________ conflict.
vertical
conventional channel
logistics
horizontal
intermediation
Which of the following is an example of horizontal channel
conflict?
managers of two separate Holiday Inns disagreeing over what constitutes poor service
United Airlines competing with Northwest Airlines for customers
disgruntled factory workers complaining about a small pay raise
the BMW dealership in Fort Wayne complaining that the BMW dealership in Indianapolis is situated too close
A and D
Which of the following is an example of a multichannel distribution system?
Walmart locating to several countries
JC Penney's catalog and retail store sales
Avon's door-to-door distribution
Starbuck's location inside of book stores
a hotel providing guest privileges at a health spa across the street
Blockbuster offers DVD rentals through its Total Access online rental service and through its bricks-and-mortar stores. This is an example of a(n)________.
contractual VMS
administered VMS
horizontal marketing system
conventional distribution channel
multichannel distribution system
When Netflix began delivering DVDs directly to customers through the mail instead of using a brick-and-mortar system, Netflix was following the trend of ________.
indirect marketing
disintermediation
a franchise system
exclusive distribution
selective distribution
Chewing gum is stocked in many outlets in the same market or community; in fact, it is placed in as many outlets as possible. This is an example of ________ distribution.
exclusive
selective
multichannel
intensive
disintermediated
Which product will most likely be exclusively distributed?
BMW cars
Levi's blue jeans
Bazooka bubble gum
Prairie Farms yogurt
Coca-Cola
Tiffany & Co jewelry can only be found in a limited number of intermediaries. This is an example of ________ distribution.
exclusive
intensive
quality
high-end
independent
Max Samuelson is a high-end fashion designer who markets his clothing lines through a limited number of highly reputable retailers. Max uses ________.
exclusive distribution
exclusive dealing
exclusive territorial agreements
full-line forcing
tying agreements
Which type of vertical marketing system (VMS) gives an organization more control over both production and resale of its products, while at the same time increasing the organization's capital investment and its fixed costs?
administered
contractual
conventional
corporate
horizontal