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The two types of channel conflict are:


A) divisional and organizational.
B) horizontal and vertical.
C) transactional and transformational.
D) external and internal.

E) All of the above
F) B) and C)

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In the automobile industry,a manufacturer licenses dealers to sell its cars subject to various sales and service conditions.This system is called a(n) :


A) Service-sponsored producer franchise systems
B) Service-sponsored retail franchise systems
C) Manufacturer-sponsored wholesale systems
D) Manufacturer-sponsored retail franchise systems

E) C) and D)
F) B) and D)

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Which of the following is an example of a risk cost that would be considered a part of inventory costs?


A) warehousing space and materials handling costs
B) costs due to possible loss, damage, pilferage, or obsolescence
C) opportunity costs resulting from tying up funds in inventory instead of using them in other more profitable investments
D) costs such as insurance and taxes that are present in many states

E) A) and D)
F) All of the above

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Scott Baldwin,the owner of The Computer Company,located in Stillwater,Oklahoma,specializes in creating customized personal computers for home use.Baldwin buys basic computer components from mail-order companies and then upgrades the computers to fit the specific needs of each customer.In years past,Baldwin carried a large inventory of hard drives,CD-ROMS,motherboards,memory upgrades,and other computer components.More recently,Baldwin has decided he can't afford to maintain a large inventory of components.Instead,The Computer Company maintains a very low inventory and relies on mail-order suppliers to provide fast,on-time delivery of components as they are needed.The Computer Company is using:


A) inventory service suppliers.
B) an inventory/transaction reduction strategy.
C) a just-in-time inventory supply system.
D) financial impact statements to drive his inventory.

E) A) and D)
F) A) and C)

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Two students,Nick and Lee,were studying for an upcoming exam in their Introduction to Marketing course.While studying the chapter on Marketing Channels and Wholesalers,Nick made the following statement,"If it weren't for wholesalers and other intermediaries in the channel of distribution,the products we buy would cost a lot less!" After contemplating Nick's statement,Lee said,"Wait a minute.We learned in class that channel intermediaries actually make marketing more efficient by minimizing the number of transactions necessary to sell products." Lee's statement refers to:


A) value created by channel intermediaries.
B) channel intermediary development.
C) price inflation by channel intermediaries.
D) channel intermediary promotional efforts.

E) None of the above
F) A) and C)

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Which of the following customer service components is likely to be most critical for Ford when it purchases new-to-the-manufacturer automobile tires (tires put on new Ford cars) ?


A) lead time
B) dependability and on-time delivery
C) communication
D) convenience

E) A) and B)
F) B) and C)

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In a direct channel,all channel functions are performed by:


A) retailers.
B) wholesalers.
C) producers.
D) brokers and agents.

E) A) and D)
F) None of the above

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Irving Oil,which refines gasoline and also operates retail gasoline stations,illustrates:


A) forward integration.
B) backward integration.
C) vertical channel.
D) horizontal channel.

E) B) and C)
F) A) and D)

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The dominant member of a keiretsu is the:


A) customer.
B) producer.
C) local wholesaler.
D) full-line wholesaler.

E) B) and D)
F) B) and C)

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Abbott Laboratories,a manufacturer of several popular over-the-counter medications,warehouses and delivers all of 3M's medical and surgical products to hospitals across the nation.The agreement between Abbott Laboratories and 3M is an example of:


A) multichannel distribution.
B) a direct marketing channel.
C) a cooperative distribution channel.
D) a strategic channel alliance.

E) All of the above
F) None of the above

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Which of the following statements about the terms used for marketing intermediaries is true?


A) The most precise terms used to describe marketing intermediaries are dealer and distributor.
B) A retailer sells to business markets.
C) An agent has no legal authority to act on behalf of a manufacturer.
D) A middleman is any intermediary between manufacturer and end-user markets.

E) A) and B)
F) All of the above

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During the 1990s,Sports Port,a motorcycle and fishing boat retailer located in a small northern Minnesota town,was the world's largest dealer for Crestliner fishing boats.In order to meet the demand of his many customers,the owner of Sports Port worked with a wide variety of channel members,ranging from the manufacturer of the boats to trucking firms,other retailers,and even detailers.Such a diverse channel of distribution often resulted in channel conflict.However,due to his strong consumer following,the owner of Sports Port had the power to resolve disputes between channel members.The owner of Sports Port served as the _____ in the channel of distribution.


A) wholesaler
B) producer
C) channel captain
D) channel spokesperson

E) A) and B)
F) All of the above

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Describe the typical stages involved in the processing of customer orders.

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Coppley has been a suit manufacturer in Hamilton,Ontario for over 100 years.They also own several retail stores,where their products are for sale.Coppley uses:


A) dual distribution.
B) forward integration.
C) backward integration.
D) horizontal integration.

E) All of the above
F) C) and D)

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Mail-order selling,catalogue sales,and telemarketing,are all examples of:


A) indirect marketing.
B) direct marketing.
C) impersonal marketing.
D) channel bypass marketing.

E) B) and D)
F) A) and D)

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MachineTools.com sells grinders,boring mills,and engine lathes.The website has listed goods from over 700 machinery manufacturers,2,500 distributors of new equipment,and 650 dealers of used inventory for sale at the website.MachineTools.com relies on a well-established channel of manufacturers,distributors,and machinery dealers to provide the merchandise that is sold through this:


A) Internet distribution channel.
B) electronic marketing channel.
C) virtual marketing channel.
D) consumer-responsive channel.

E) A) and B)
F) A) and C)

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Why is customer service said to be highly situational?

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Which type of marketing channel arrangement is good for a firm to use in international marketing where the creation of marketing channel relationships is expensive and time consuming?


A) dual distribution
B) strategic channel alliance
C) cooperative distribution
D) integrated global channel alliance

E) A) and B)
F) A) and C)

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All of the following are sources of power determining which channel member will be the channel captain,except:


A) social power
B) expertise
C) identification with a particular channel member
D) legitimate rights through contracts

E) All of the above
F) B) and C)

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Some supermarket chains demand slotting allowances from manufacturers,paid in the form of money or free goods,to stock and display products.Is the practice of charging slotting allowances ethical behaviour?

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