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Exam 13: Marketing Channels and Supply-Chain Management

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Question 61

Multiple Choice

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In an administered vertical marketing system (VMS) , interorganizational relationships are

A) achieved by informal coordination.
B) formalized through contracts.
C) combined under the ownership of a single organization.
D) guided by legal agreements.
E) achieved by clearly defining the obligations and rights of all channel members.

F) B) and C)
G) A) and B)

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Question 62

Multiple Choice

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Jeff Wood's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces capital requirements for the producers. Jeff's company is an example of a(n) ____ in a distribution channel.

A) direct distributor
B) manufacturers' agent
C) industrial distributor
D) producers' agent
E) wholesalers' agent

F) B) and C)
G) A) and B)

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Question 63

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If a microchip in a computer at the Pentagon failed, which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from New York City?

Transportation is the least expensive physical distribution function.

The Fisher-Price company produces toys and baby-related products. For the introduction of its line of nursery furniture for infants and small children, the Fisher Company will most likely use ____ distribution for the products.

Select the greatest advantage of horizontal channel integration.

Dual distribution involves the use of two or more marketing channels for distributing the same products to the same target market.

IMA Wholesalers is a distributor of car repair parts and supplies, selling to both retailers and auto repair service businesses. Recently, IMA has been promoting the Pennzoil brand of oil over the Quaker State brand of oil by offering larger discounts to the channel members. If IMA continues to do this, ____ is likely to result.

Because of its speed, electronic order processing provides greater flexibility than manual processing in unique situations.

Some marketing channels are organized and controlled by a single leader.

Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called

River City, Inc. is an independent business that takes title to products and carries inventories. River City, Inc. is most likely a(n)

When channel members are linked by legal agreements that specify each member's rights and responsibilities, ____ exists.

Freight transportation companies that offer several different shipment methods are called

How do marketing channel decisions influence the rest of the marketing mix?

What is the reorder point if the usage rate is 10 units per day, the order lead time is five days, and the safety stock is 30?

Select Comfort, a producer of adjustable air mattresses, sells most of its products through direct mail sales and on its website . This channel would be classified as

When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a

The reorder point is computed by multiplying the service standard by the order lead time.

Kolder Inc. is using a new just-in-time inventory management system that requires ordering smaller quantities of parts more frequently. The success of its business depends significantly on receiving these parts very quickly, so like many other companies using just-in-time, Kolder Inc. is relying more on the ____ mode of transportation despite its expense.