Question 1

Leadership in a(n)  ________ is assumed not through common ownership or contractual ties but through the size and power of a single dominant channel member.

Accepted Answer

A)   horizontal marketing system
B)   administered vertical marketing system
C)   corporate vertical marketing system
D)   conventional marketing system
E)   multiple distribution systemF) D) and E)
G) A) and E)

Question 2

Intermediaries that do business with many different manufacturers and many different customers are most accurately referred to as ________.

Accepted Answer

A)   interdependent intermediaries
B)   dependent intermediaries
C)   independent intermediaries
D)   wholesalers
E)   retail outletsF) C) and D)
G) B) and C)

Question 3

At some catalog retailers, employees on roller skates called pickers are handed a printout of the products a customer wants, and then the pickers skate through large warehouses accumulating the desired products into one central location. The pickers are engaged in ________.

Accepted Answer

A)   human resource management
B)   nonessential operations
C)   essential operations
D)   value proposition
E)   facilitating functionsF) B) and E)
G) A) and E)

Question 4

Drop shippers do all of the following EXCEPT which of the following?

Accepted Answer

A)   take title to the merchandise
B)   take actual possession of the merchandise
C)   take orders from retailers and industry buyers
D)   bill retailers and industry buyers
E)   assume the same risks as other types of limited-service merchant wholesalersF) B) and C)
G) All of the above

Question 5

A business buys candy and gum from many different manufacturers and then resells the items to a variety of different stores. The business is an example of a(n)  ________.

Accepted Answer

A)   independent intermediary
B)   manufacturer-owned intermediary
C)   disintermediation
D)   diverter
E)   brokerage companyF) A) and E)
G) C) and D)

Question 6

Why might a manufacturer choose to not select a large and powerful retailer as a channel partner?

Accepted Answer

A manufacturer would likely gi...

Question 7

Intensive distribution seeks many outlets in a market, while selective distribution seeks only one outlet in a given market area.

Accepted Answer

A) True 
 B)False

Question 8

Wholesalers and retailers purchase large quantities of goods from manufacturers but sell only one or a few at a time to many different customers. This process is called ________.

Accepted Answer

A)   creating assortments
B)   breaking bulk
C)   third-party logistics
D)   order processing
E)   inventory controlF) C) and E)
G) A) and B)

Question 9

Selective distribution strategies are most suitable for convenience products.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements about a vertical marketing system (VMS)  is true?

Accepted Answer

A)   A VMS is a channel in which there is cooperation among channel members at two or more different levels of the channel.
B)   Members of a VMS operate totally independently of one another outside of buying and selling one another's products.
C)   The three types of vertical marketing systems are independent, conventional, and customized.
D)   Channel conflict is a more serious problem in a vertical marketing system than in a conventional marketing system.
E)   Conventional marketing systems are more efficient than vertical marketing systems.F) A) and C)
G) D) and E)

Question 11

Which of the following statements about business-to-business channels is true?

Accepted Answer

A)   Direct channels are more common in business-to-business markets than consumer markets.
B)   Business-to-business channels have few parallels with consumer channels.
C)   The size of business markets makes indirect channels more efficient.
D)   Indirect channels are more common in business-to-business markets than consumer markets.
E)   When an industrial distributor is included in a business-to-business channel, the channel is by definition direct.F) A) and E)
G) C) and D)

Question 12

Supply chain management includes the coordination of both the physical movement of goods and the sharing of information about those goods.

Accepted Answer

A) True 
 B)False

Question 13

A firm that brings in outside companies to accomplish supply chain activities is using ________.

Accepted Answer

A)   insourcing
B)   outsourcing
C)   level loading
D)   intensive distribution
E)   exclusive distributionF) C) and D)
G) None of the above

Question 14

Tiffany & Co jewelry can only be found in a very limited number of intermediaries. This is an example of ________ distribution.

Accepted Answer

A)   exclusive
B)   intensive
C)   independent
D)   legitimate
E)   coerciveF) A) and E)
G) B) and C)

Question 15

Reverse logistics are becoming even more important as more firms seriously consider sustainability as a competitive advantage.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following channel intermediaries have unlimited territory and control the pricing, promotion, and distribution of their products?

Accepted Answer

A)   manufacturers' reps
B)   selling agents
C)   merchandise brokers
D)   rack jobbers
E)   sales branchesF) B) and E)
G) A) and C)

Question 17

Which type of vertical marketing system (VMS)  gives an organization more control over both supply sources and resale of its products, while at the same time increasing the organization's capital investment and its fixed costs?

Accepted Answer

A)   administered
B)   contractual
C)   conventional
D)   corporate
E)   horizontalF) B) and D)
G) None of the above

Question 18

Compare and contrast a conventional marketing system with a vertical marketing system (VMS).

Accepted Answer

A conventional distribution channel cons...

Question 19

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?

Accepted Answer

A)   promoting its products through advertising
B)   assembling and packaging its products for final sale
C)   distributing relevant market information
D)   identifying raw materials and other productive inputs
E)   taking the risk that items may not sellF) A) and D)
G) B) and E)

Question 20

Which of the following is another name for the channel leader?

Accepted Answer

A)   materials expert
B)   distribution facilitator
C)   franchiser
D)   channel captain
E)   logistics leaderF) All of the above
G) A) and C)

Exam 11: Deliver the Goods: Determine the Distribution Strategy

A firm that brings in outside companies to accomplish supply chain activities is using ________.

Correct AnswerverifiedShow Answer

Intermediaries that do business with many different manufacturers and many different customers are most accurately referred to as ________.

Correct AnswerverifiedShow Answer

A business buys candy and gum from many different manufacturers and then resells the items to a variety of different stores. The business is an example of a(n) ________.

Correct AnswerverifiedShow Answer

Which of the following channel intermediaries have unlimited territory and control the pricing, promotion, and distribution of their products?

Correct AnswerverifiedShow Answer

Which of the following is another name for the channel leader?

Correct AnswerverifiedShow Answer

Reverse logistics are becoming even more important as more firms seriously consider sustainability as a competitive advantage.

Correct AnswerverifiedShow Answer

Supply chain management includes the coordination of both the physical movement of goods and the sharing of information about those goods.

Correct AnswerverifiedShow Answer

Wholesalers and retailers purchase large quantities of goods from manufacturers but sell only one or a few at a time to many different customers. This process is called ________.

Correct AnswerverifiedShow Answer

Drop shippers do all of the following EXCEPT which of the following?

Correct AnswerverifiedShow Answer

Which of the following statements about a vertical marketing system (VMS) is true?

Correct AnswerverifiedShow Answer

Selective distribution strategies are most suitable for convenience products.

Correct AnswerverifiedShow Answer

Which type of vertical marketing system (VMS) gives an organization more control over both supply sources and resale of its products, while at the same time increasing the organization's capital investment and its fixed costs?

Correct AnswerverifiedShow Answer

Tiffany & Co jewelry can only be found in a very limited number of intermediaries. This is an example of ________ distribution.

Correct AnswerverifiedShow Answer

Leadership in a(n) ________ is assumed not through common ownership or contractual ties but through the size and power of a single dominant channel member.

Correct AnswerverifiedShow Answer

Why might a manufacturer choose to not select a large and powerful retailer as a channel partner?

Correct AnswerverifiedA manufacturer would likely gi...View AnswerShow Answer

At some catalog retailers, employees on roller skates called pickers are handed a printout of the products a customer wants, and then the pickers skate through large warehouses accumulating the desired products into one central location. The pickers are engaged in ________.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Intensive distribution seeks many outlets in a market, while selective distribution seeks only one outlet in a given market area.

Correct AnswerverifiedShow Answer

Which of the following statements about business-to-business channels is true?

Correct AnswerverifiedShow Answer

Compare and contrast a conventional marketing system with a vertical marketing system (VMS).

Correct AnswerverifiedA conventional distribution channel cons...View AnswerShow Answer

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A manufacturer would likely gi...
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A conventional distribution channel cons...
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