Question 1

Which of the following offers the greatest potential for vertical channel conflict?

Accepted Answer

A)   Sears and a Goodyear tire store
B)   Macy's department store and a bed-and-bath retailer
C)   Procter & Gamble and Colgate-Palmolive
D)   Kmart and a Hallmark Card Shop
E)   Toys R Us and Mattel, a toy manufacturer

Question 2

A middleman:

Accepted Answer

A)   cannot deal directly with ultimate consumers.
B)   never takes physical possession of the product.
C)   does not aid in the transfer of ownership.
D)   can always be labeled as "full service."
E)   is described by none of the above.

Question 3

The manufacturer is the most appropriate member to control the distribution channel.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements about vertical marketing systems (VMSs)  is True?

Accepted Answer

A)   The horizontal marketing system is much more efficient than the VMS.
B)   VMSs tend to increase duplication of marketing services.
C)   There is a trend away from the use of VMSs.
D)   VMSs give manufacturers monopolistic control over the channel.
E)   None of the above statements about VMSs is True.

Question 5

Intensity of distribution refers to:

Accepted Answer

A)   which element of the marketing mix is emphasized.
B)   the number of middlemen used at the wholesale and retail levels in a particular territory.
C)   whether a direct or indirect channel is used.
D)   which forms of transportation will be used to distribute the product.
E)   the amount of money spent on promotion.

Question 6

Unilever is the world's largest manufacturer of ice cream. When the Anglo-Dutch company decided to invest in retailing ice cream, it developed ice-cream vans and kiosks that it would set up on the world's beaches. Unilever engaged in:

Accepted Answer

A)   multiple sourcing
B)   disintermediation
C)   cross-selling
D)   collaborative selling
E)   relationship marketing

Question 7

Which of the following statements about vertical channel conflict is True?

Accepted Answer

A)   The type of product being marketed has no effect on vertical channel conflict.
B)   Channel conflict usually occurs in the marketing of business products.
C)   The main source of vertical channel conflict is scrambled merchandising.
D)   Vertical conflicts typically occur between producer and wholesaler or between producer and retailer.
E)   None of the above statements about vertical channel conflict is True.

Question 8

Lenox china, Estee Lauder perfume, Oneida flatware, and Martex towels are sold in a number of department stores, but not in all that might like to carry these brands. This is an example of _____ distribution.

Accepted Answer

A)   exclusive
B)   intensive
C)   direct
D)   selective
E)   dual

Question 9

Fisher-Price toys can be purchased at retail stores and through its shop-at-home catalog as well as at its Web site, www.fisherprice.com. Fisher-Price is engaged in which of the following practices?

Accepted Answer

A)   multiple sourcing
B)   disintermediation
C)   cross-selling
D)   collaborative selling
E)   relationship marketing

Question 10

When Gourmet Concepts, a company that makes and sells specialty desserts to restaurant chains, began operations, it had to design its distribution strategy very carefully. The first decision it had to make about its distribution channel was to:

Accepted Answer

A)   specify the role of distribution in its entire marketing mix.
B)   examine competitors' channels.
C)   choose specific channel members.
D)   determine the desired intensity of distribution.
E)   select the type of distribution channel to use.

Question 11

The Kroger supermarket chain operates a factory that manufactures cheese that is sold in the retail stores under the Kroger label. This is an example of a(n) :

Accepted Answer

A)   contractual VMS.
B)   administered VMS.
C)   wholesaler-sponsored voluntary chain.
D)   corporate VMS.
E)   franchise system.

Question 12

Polo/Ralph Lauren manufactures the clothing in sells in its own retail stores. In this scenario, Polo/Ralph Lauren is an example of a(n) :

Accepted Answer

A)   contractual VMS.
B)   administered VMS.
C)   wholesaler-sponsored voluntary chain.
D)   corporate VMS.
E)   franchise system.

Question 13

If OceanView Flowers were to threaten to remove a retailer's right to distribute its line of lifelike silk flowers if the retailer carries any competing brands of silk flower, OceanView would be using:

Accepted Answer

A)   a tying contract.
B)   an exclusive-territory policy.
C)   an intensive distribution strategy.
D)   exclusive dealing.
E)   horizontal conflict.

Question 14

Which of the following is an example of a contractual VMS?

Accepted Answer

A)   Radio Shack stores owned by the parent company
B)   Post cereals
C)   Holiday Inn franchises
D)   Kraft dairy products
E)   all of the above

Question 15

Some producers establish direct channels because they want to control their product's distribution, even though a direct channel may be more costly than an indirect channel.

Accepted Answer

A) True 
 B)False

Question 16

Suppose the manufacturer of Prince tennis equipment will not let retailers carry its product line if the stores also carry products made by any of Prince's competitors. This would be an example of:

Accepted Answer

A)   a tying contract.
B)   an exclusive-territory policy.
C)   an intensive distribution strategy.
D)   exclusive dealing.
E)   horizontal conflict.

Question 17

If there is a traditional channel for consumer goods, it is:

Accepted Answer

A)   from producer to consumer.
B)   from producer to retailer to consumer.
C)   from producer to agent to retailer to consumer.
D)   from producer to wholesaler to retailer to consumer.
E)   from producer to agent to wholesaler to retailer to consumer.

Question 18

For which of the following products would its manufacturer most likely choose selective distribution?

Accepted Answer

A)   Oreo single-serving packages
B)   Armstrong flooring
C)   Energizer batteries
D)   Steinway pianos
E)   Florida orange juice

Question 19

What kind of distribution channel does a company that prunes trees and removes dead branches use?

Accepted Answer

A)   flexible
B)   direct
C)   hierarchical
D)   administered
E)   indirect

Question 20

A _____ _____ _____ is a tightly coordinated distribution channel designed specifically to improve  operating efficiency and marketing effectiveness.

Accepted Answer

vertical m...

Exam 14: Channels of Distribution

Fisher-Price toys can be purchased at retail stores and through its shop-at-home catalog as well as at its Web site, www.fisherprice.com. Fisher-Price is engaged in which of the following practices?

Correct AnswerverifiedShow Answer

Lenox china, Estee Lauder perfume, Oneida flatware, and Martex towels are sold in a number of department stores, but not in all that might like to carry these brands. This is an example of _____ distribution.

Correct AnswerverifiedShow Answer

The manufacturer is the most appropriate member to control the distribution channel.

Correct AnswerverifiedShow Answer

Suppose the manufacturer of Prince tennis equipment will not let retailers carry its product line if the stores also carry products made by any of Prince's competitors. This would be an example of:

Correct AnswerverifiedShow Answer

What kind of distribution channel does a company that prunes trees and removes dead branches use?

Correct AnswerverifiedShow Answer

Which of the following statements about vertical channel conflict is True?

Correct AnswerverifiedShow Answer

The Kroger supermarket chain operates a factory that manufactures cheese that is sold in the retail stores under the Kroger label. This is an example of a(n) :

Correct AnswerverifiedShow Answer

Polo/Ralph Lauren manufactures the clothing in sells in its own retail stores. In this scenario, Polo/Ralph Lauren is an example of a(n) :

Correct AnswerverifiedShow Answer

Which of the following statements about vertical marketing systems (VMSs) is True?

Correct AnswerverifiedShow Answer

If OceanView Flowers were to threaten to remove a retailer's right to distribute its line of lifelike silk flowers if the retailer carries any competing brands of silk flower, OceanView would be using:

Correct AnswerverifiedShow Answer

Some producers establish direct channels because they want to control their product's distribution, even though a direct channel may be more costly than an indirect channel.

Correct AnswerverifiedShow Answer

When Gourmet Concepts, a company that makes and sells specialty desserts to restaurant chains, began operations, it had to design its distribution strategy very carefully. The first decision it had to make about its distribution channel was to:

Correct AnswerverifiedShow Answer

Unilever is the world's largest manufacturer of ice cream. When the Anglo-Dutch company decided to invest in retailing ice cream, it developed ice-cream vans and kiosks that it would set up on the world's beaches. Unilever engaged in:

Correct AnswerverifiedShow Answer

A middleman:

Correct AnswerverifiedShow Answer

For which of the following products would its manufacturer most likely choose selective distribution?

Correct AnswerverifiedShow Answer

Which of the following offers the greatest potential for vertical channel conflict?

Correct AnswerverifiedShow Answer

Which of the following is an example of a contractual VMS?

Correct AnswerverifiedShow Answer

Intensity of distribution refers to:

Correct AnswerverifiedShow Answer

If there is a traditional channel for consumer goods, it is:

Correct AnswerverifiedShow Answer

A _____ _____ _____ is a tightly coordinated distribution channel designed specifically to improve operating efficiency and marketing effectiveness.

Correct Answerverifiedvertical m...View AnswerShow Answer

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A ___ _ ___ is a tightly coordinated distribution channel designed specifically to improve operating efficiency and marketing effectiveness.

Correct Answer
verified
vertical m...
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