Question 1

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.

Accepted Answer

A)   manufacturing chain
B)   distribution center
C)   marketing intermediary
D)   value delivery network
E)   disintermediation systemF) B) and E)
G) None of the above

Question 2

The franchise organization is an example of a corporate vertical marketing system.

Accepted Answer

A) True 
 B)False

Question 3

For over 10 years, Erudite, a publishing and educational company that produces college textbooks, has been selling its books online through studysmart.com, a popular online retailer that sells textbooks published by different companies. Recently, Erudite stopped selling its books through studysmart.com and set up its own Web site to sell its books. This change in channel organization is called ________.

Accepted Answer

A)   disintermediation
B)   intensive distribution
C)   brokering
D)   franchising
E)   selective distributionF) B) and C)
G) D) and E)

Question 4

In exclusive dealing, a producer may agree not to sell to other dealers in a given area.

Accepted Answer

A) True 
 B)False

Question 5

Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber's lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the tires and its expertise on the racing industry. Which term best describes Faber's channel arrangements?

Accepted Answer

A)   direct distribution system
B)   horizontal marketing system
C)   corporate vertical franchise system
D)   multichannel distribution system
E)   administered vertical marketing systemF) A) and D)
G) B) and E)

Question 6

Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It invites proposals from independent dealers who are willing to set up exclusive showrooms that only sell Rage's superbikes. Chosen dealers will sell and service the superbikes, and Rage will oversee national advertising. This is most likely an example of a(n) ________.

Accepted Answer

A)   administered vertical marketing system
B)   horizontal manufacturing marketing system
C)   manufacturer-sponsored retailer franchise system
D)   manufacturer-sponsored wholesaler franchise system
E)   direct marketing systemF) A) and E)
G) None of the above

Question 7

In an administered VMS, the producer assumes the leadership position in a distribution channel by default.

Accepted Answer

A) True 
 B)False

Question 8

In a just-in-time logistics system, ________.

Accepted Answer

A)   retailers carry small inventories of merchandise to last for only a few days
B)   retailers store products for long periods to avoid an interruption in supply
C)   producers supply products to resellers before customers place their orders
D)   producers that are geographically far from their retailers use an express-delivery system
E)   retailers incur high inventory-carrying and inventory-handling costsF) A) and B)
G) A) and E)

Question 9

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ________.

Accepted Answer

A)   corporate vertical marketing system
B)   contractual vertical marketing system
C)   direct marketing system
D)   horizontal marketing system
E)   administered vertical marketing systemF) All of the above
G) None of the above

Question 10

In which of the following situations is a producer guaranteed full control over product sales?

Accepted Answer

A)   a corporate marketing channel
B)   a direct marketing channel
C)   a contractual distribution channel
D)   a horizontal marketing system
E)   an administered marketing systemF) A) and B)
G) A) and E)

Question 11

Which of the following is true of an exclusive dealing arrangement between a producer and a dealer?

Accepted Answer

A)   It prohibits the producer from selling outside the dealer's territory.
B)   It prevents the producer from using any other dealer to sell its products regardless of geographical area.
C)   It gives the producer's products more shelf power compared to a competitor's products being sold by the dealer.
D)   It can be considered illegal if it increases competition substantially.
E)   It does not allow other producers to sell to that dealer.F) A) and B)
G) All of the above

Question 12

Producers of convenience products and common raw materials typically seek ________ distribution - a strategy in which they stock their products in as many outlets as possible

Accepted Answer

A)   selective
B)   exclusive
C)   intensive
D)   exponential
E)   comprehensiveF) C) and E)
G) A) and D)

Question 13

Historically, conventional distribution channels have provided channel leadership and have had the power to assign roles and manage conflict.

Accepted Answer

A) True 
 B)False

Question 14

Performance Inc. sells its newest athletic shoe styles to The Sneaker Store and distributes dated or slightly defective merchandise through Sports Discounters. Performance Inc.'s main competitor is Topnotch Manufacturers. Performance Inc. also markets its products through the company Web site. They decide to offer a short-term online promotion to encourage consumers to buy their newest athletic shoes, promoting a 20 percent discount off current retail prices. In such a distribution channel, which of the following would be considered a vertical conflict?

Accepted Answer

A)   a conflict between Performance Inc. and The Sneaker Store
B)   a conflict among Performance Inc., The Sneaker Store, and Sports Discounters
C)   a conflict between The Sneaker Store and Sports Discounters
D)   a conflict between Performance Inc. and Sports Discounters
E)   a conflict between Performance Inc. and Topnotch ManufacturersF) A) and D)
G) A) and C)

Question 15

Which of the following is an advantage of exclusive dealing between a seller and a dealer?

Accepted Answer

A)   The seller gains more shelf power compared to competitors' products.
B)   The seller can avoid using any intermediary and sell the product directly to customers.
C)   Customers get more loyal and dependable outlets.
D)   The seller's distinctive position is reinforced through customer service and the dealer obtains steady support from the seller.
E)   The dealer can freely choose what products to sell without any interference from the seller.F) B) and D)
G) C) and D)

Question 16

Which of the following is true of a conventional distribution channel?

Accepted Answer

A)   It has each channel member acting as a separate business unit trying to maximize its own profits.
B)   It consists of producers selling their products directly to customers without the use of intermediaries.
C)   It has one channel member owning the other channel members.
D)   It is a distribution channel where a producer is owner of all the other channel members.
E)   It has all members of the channel working together as a single organization.F) B) and C)
G) A) and C)

Question 17

Integrating the entire distribution chain - from its own design and manufacturing operations to distribution through its own managed stores - has turned Spanish clothing chain Zara into the world's fastest-growing fast-fashion retailer. This is an example of a(n) ________ marketing system.

Accepted Answer

A)   contractual vertical
B)   corporate vertical
C)   administered vertical
D)   horizontal
E)   directF) A) and B)
G) A) and C)

Question 18

High-end luxury brands like Bentley for cars, Louis Vuitton for handbags, and Rolex for watches use ________ distribution, giving a limited number of dealers the sole right to sell products in a specified geographic territory.

Accepted Answer

A)   inclusive
B)   horizontal
C)   intensive
D)   exclusive
E)   verticalF) A) and B)
G) B) and D)

Question 19

Which mode of transportation is best for carrying perishable goods to distant markets?

Accepted Answer

A)   railroads
B)   water carriers
C)   trucks
D)   air carriers
E)   pipelinesF) B) and D)
G) C) and D)

Question 20

Most producers sell their goods directly to final users.

Accepted Answer

A) True 
 B)False

Exam 10: Marketing Channels: Delivering Customer Value

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.

Correct Answer
verified

In exclusive dealing, a producer may agree not to sell to other dealers in a given area.

Correct Answer
verified

Which of the following is true of a conventional distribution channel?

Correct Answer
verified

In which of the following situations is a producer guaranteed full control over product sales?

Correct Answer
verified

High-end luxury brands like Bentley for cars, Louis Vuitton for handbags, and Rolex for watches use ________ distribution, giving a limited number of dealers the sole right to sell products in a specified geographic territory.

Correct Answer
verified

Most producers sell their goods directly to final users.

Correct Answer
verified

Correct Answer
verified

Which of the following is an advantage of exclusive dealing between a seller and a dealer?

Correct Answer
verified

The franchise organization is an example of a corporate vertical marketing system.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

In an administered VMS, the producer assumes the leadership position in a distribution channel by default.

Correct Answer
verified

Which mode of transportation is best for carrying perishable goods to distant markets?

Correct Answer
verified

Producers of convenience products and common raw materials typically seek ________ distribution - a strategy in which they stock their products in as many outlets as possible

Correct Answer
verified

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ________.

Correct Answer
verified

Integrating the entire distribution chain - from its own design and manufacturing operations to distribution through its own managed stores - has turned Spanish clothing chain Zara into the world's fastest-growing fast-fashion retailer. This is an example of a(n) ________ marketing system.

Correct Answer
verified

In a just-in-time logistics system, ________.

Correct Answer
verified

Which of the following is true of an exclusive dealing arrangement between a producer and a dealer?

Correct Answer
verified

Historically, conventional distribution channels have provided channel leadership and have had the power to assign roles and manage conflict.

Correct Answer
verified

Exam 10: Marketing Channels: Delivering Customer Value

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.

Correct AnswerverifiedShow Answer

In exclusive dealing, a producer may agree not to sell to other dealers in a given area.

Correct AnswerverifiedShow Answer

Which of the following is true of a conventional distribution channel?

Correct AnswerverifiedShow Answer

In which of the following situations is a producer guaranteed full control over product sales?

Correct AnswerverifiedShow Answer

High-end luxury brands like Bentley for cars, Louis Vuitton for handbags, and Rolex for watches use ________ distribution, giving a limited number of dealers the sole right to sell products in a specified geographic territory.

Correct AnswerverifiedShow Answer

Most producers sell their goods directly to final users.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is an advantage of exclusive dealing between a seller and a dealer?

Correct AnswerverifiedShow Answer

The franchise organization is an example of a corporate vertical marketing system.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In an administered VMS, the producer assumes the leadership position in a distribution channel by default.

Correct AnswerverifiedShow Answer

Which mode of transportation is best for carrying perishable goods to distant markets?

Correct AnswerverifiedShow Answer

Producers of convenience products and common raw materials typically seek ________ distribution - a strategy in which they stock their products in as many outlets as possible

Correct AnswerverifiedShow Answer

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ________.

Correct AnswerverifiedShow Answer

Integrating the entire distribution chain - from its own design and manufacturing operations to distribution through its own managed stores - has turned Spanish clothing chain Zara into the world's fastest-growing fast-fashion retailer. This is an example of a(n) ________ marketing system.

Correct AnswerverifiedShow Answer

In a just-in-time logistics system, ________.

Correct AnswerverifiedShow Answer

Which of the following is true of an exclusive dealing arrangement between a producer and a dealer?

Correct AnswerverifiedShow Answer

Historically, conventional distribution channels have provided channel leadership and have had the power to assign roles and manage conflict.

Correct AnswerverifiedShow Answer

Correct Answer
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