Question 1

TruMart,a leading retail chain,decides to open a restaurant inside its stores,so the firm partners with MeatMe,a popular burger chain.MeatMe opens a restaurant inside TruMart.The MeatMe chain of restaurants also has a deal with Westman Cola to serve only Westman soft drinks at its outlets.This arrangement will benefit all three companies.What kind of channel arrangement is being followed in this case?

Accepted Answer

A)   administered vertical marketing system
B)   horizontal marketing system
C)   direct marketing system
D)   contractual vertical marketing system
E)   corporate vertical marketing system

Question 2

Clara's,a cosmetics manufacturer,sells many of its products through retail outlets.However,the firm sells a few expensive,popular products only through direct selling methods.What kind of channel arrangement does Clara's follow for all of its products together?

Accepted Answer

A)   horizontal marketing system
B)   multichannel distribution system
C)   administered vertical marketing system
D)   contractual vertical marketing system
E)   corporate vertical marketing system

Question 3

What criteria should a firm consider before choosing a channel alternative?

Accepted Answer

If a company has identified several chan...

Question 4

Disintermediation occurs when product or service producers cut out intermediaries and sell directly to final buyers.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true of RFID or "smart tag" technology?

Accepted Answer

A)   "Smart tag" technology eliminates the need for intermediaries and facilitates a direct marketing system.
B)   "Smart tag" technology can de-automate the entire supply chain.
C)   The use of "smart tag" technology makes it difficult to know where a product is located physically within the supply chain.
D)   Retailers and suppliers using "smart technology" have higher risks of shoplifting and robbery.
E)   "Smart shelves" can tell when it is time to reorder and can place orders automatically.

Question 6

With a vendor-managed inventory system,the supplier takes full responsibility for managing inventories and deliveries.

Accepted Answer

A) True 
 B)False

Question 7

A company that has no intermediary levels sells its products directly to its customers.

Accepted Answer

A) True 
 B)False

Question 8

Mintel Agro provides raw materials in the form of agricultural products to Kiltmark Food Company.Kiltmark produces flour-based edible products,which it distributes to a wholesale company called Yellowstar Trading.Yellowstar Trading then sells Kiltmark products to the discount retailer,Stroos.Stroos sells the products to consumers.Which of the following is considered a marketing intermediary in these transactions?

Accepted Answer

A)   only Kiltmark
B)   only Stroos
C)   only Yellowstar Trading
D)   both Yellowstar Trading and Stroos
E)   both Stroos and Mintel Agro

Question 9

When a seller requires that only certain dealers carry its products,its strategy is known as ________.

Accepted Answer

A)   horizontal restraint of trade
B)   intensive distribution
C)   vertical distribution
D)   disintermediation
E)   exclusive distribution

Question 10

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.

Question 11

________ distribution gives a limited number of dealers the sole rights to distribute a company's products in their territories.

Accepted Answer

A)   Inclusive
B)   Horizontal
C)   Intensive
D)   Exclusive
E)   Vertical D

Question 12

Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman Gray's products at their outlets.What kind of marketing strategy has Bateman Gray adopted with its car dealers?

Accepted Answer

A)   direct marketing
B)   exclusive dealing
C)   disintermediation
D)   horizontal integration
E)   vertical integration B

Question 13

Differentiate between the three types of franchises and provide examples of each type.

Accepted Answer

There are three types of franchises.The ...

Question 14

Crowbar Records used to sell its music CDs through a network of retail outlets,record stores,and music dealers but stopped using these agents with the advent of MP3 technology.Crowbar now sells its music independently on its Web site,through personal mail,and on social networking sites.Which type of marketing system has Crowbar most likely adopted?

Accepted Answer

A)   an administered marketing system
B)   a contractual marketing system
C)   a horizontal marketing channel
D)   a direct marketing channel
E)   a vertical marketing channel

Question 15

For over ten 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 website for selling its books.This change in channel organization is called ________.

Accepted Answer

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

Question 16

Which of the following is a difference between storage warehouses and distribution centers?

Accepted Answer

A)   Storage warehouses are used to store agricultural products, while distribution centers are used to store nonagricultural products.
B)   Storage warehouses store goods for moderate to long periods, while distribution centers are used to move goods rather than just store them.
C)   Storage warehouses are always owned by a producer, while distribution centers are rented.
D)   Storage warehouses are more likely to use newer, computer-controlled systems, while distribution centers generally use outdated materials-handling methods.
E)   Storage warehouses are exclusively used by government agencies, while distribution centers are exclusively used by private businesses. B

Question 17

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 system

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Exclusive dealing that creates a monopoly comes under the scope of the Clayton Act of 1914.

Accepted Answer

A) True 
 B)False

Exam 10: Marketing Channels: Delivering Customer Value

Correct Answer
verified

Clara's,a cosmetics manufacturer,sells many of its products through retail outlets.However,the firm sells a few expensive,popular products only through direct selling methods.What kind of channel arrangement does Clara's follow for all of its products together?

Correct Answer
verified

What criteria should a firm consider before choosing a channel alternative?

Correct Answer
verified
If a company has identified several chan...
View Answer

Disintermediation occurs when product or service producers cut out intermediaries and sell directly to final buyers.

Correct Answer
verified

Which of the following is true of RFID or "smart tag" technology?

Correct Answer
verified

With a vendor-managed inventory system,the supplier takes full responsibility for managing inventories and deliveries.

Correct Answer
verified

A company that has no intermediary levels sells its products directly to its customers.

Correct Answer
verified

Correct Answer
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When a seller requires that only certain dealers carry its products,its strategy is known as ________.

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

Correct Answer
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________ distribution gives a limited number of dealers the sole rights to distribute a company's products in their territories.

Correct Answer
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D

Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman Gray's products at their outlets.What kind of marketing strategy has Bateman Gray adopted with its car dealers?

Correct Answer
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B

Differentiate between the three types of franchises and provide examples of each type.

Correct Answer
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There are three types of franchises.The ...
View Answer

Correct Answer
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Correct Answer
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Which of the following is a difference between storage warehouses and distribution centers?

Correct Answer
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B

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

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

Correct Answer
verified

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

Correct Answer
verified

Exclusive dealing that creates a monopoly comes under the scope of the Clayton Act of 1914.

Correct Answer
verified

Exam 10: Marketing Channels: Delivering Customer Value

Correct AnswerverifiedShow Answer

Clara's,a cosmetics manufacturer,sells many of its products through retail outlets.However,the firm sells a few expensive,popular products only through direct selling methods.What kind of channel arrangement does Clara's follow for all of its products together?

Correct AnswerverifiedShow Answer

What criteria should a firm consider before choosing a channel alternative?

Correct AnswerverifiedIf a company has identified several chan...View AnswerShow Answer

Disintermediation occurs when product or service producers cut out intermediaries and sell directly to final buyers.

Correct AnswerverifiedShow Answer

Which of the following is true of RFID or "smart tag" technology?

Correct AnswerverifiedShow Answer

With a vendor-managed inventory system,the supplier takes full responsibility for managing inventories and deliveries.

Correct AnswerverifiedShow Answer

A company that has no intermediary levels sells its products directly to its customers.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When a seller requires that only certain dealers carry its products,its strategy is known as ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

________ distribution gives a limited number of dealers the sole rights to distribute a company's products in their territories.

Correct AnswerverifiedD

Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman Gray's products at their outlets.What kind of marketing strategy has Bateman Gray adopted with its car dealers?

Correct AnswerverifiedB

Differentiate between the three types of franchises and provide examples of each type.

Correct AnswerverifiedThere are three types of franchises.The ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a difference between storage warehouses and distribution centers?

Correct AnswerverifiedB

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Exclusive dealing that creates a monopoly comes under the scope of the Clayton Act of 1914.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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If a company has identified several chan...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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D

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B

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There are three types of franchises.The ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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B

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Correct Answer
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Correct Answer
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Correct Answer
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