Question 1

The type of vertical marketing system that achieves coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership is referred to as a(n)__________.

Accepted Answer

An administered vertical marketing system achieves coordination through the size and power of one channel member, usually a manufacturer or a retailer, rather than through ownership or contractual agreements with other channel members. The dominant member coordinates the activities of the others, who may be independent firms.

Question 2

Franchising is one form of a(n)__________.

Accepted Answer

Franchising is a contractual vertical marketing system where the franchisor grants the franchisee the right to use its trademark, products, and business systems in exchange for a fee and ongoing royalties. In a contractual vertical marketing system, the relationship between the franchisor and franchisee is governed by a contract that outlines the rights and obligations of each party. This contract allows the franchisor to maintain control over the quality and consistency of the products and services offered by the franchisee.

Question 3

In terms of target market coverage,density refers to the number of __________ in a geographical area.

Accepted Answer

The answer of In terms of target market coverage,density refers...

Question 4

_________ exists when a franchisor licenses individuals or firms to dispense a service under a trade name and specific guidelines.

Accepted Answer

Service-sponsored franchise system exists when a franchisor licenses individuals or firms to dispense a service under a trade name and specific guidelines. The other options listed refer to different types of franchise systems, but do not match the description given in the question.

Question 5

Firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others employ a __________.

Accepted Answer

The answer of Firms that have designed a unique approach...

Question 6

There are four popular types of franchising: (1)manufacturer-sponsored retail franchise systems; (2)manufacturer-sponsored wholesale franchise systems; (3)service-sponsored franchise systems; and (4)__________.

Accepted Answer

The answer of There are four popular types of franchising:...

Question 7

There are four popular types of franchising: (1)manufacturer-sponsored retail franchise systems,(2)__________; (3)service-sponsored retail franchise systems; and (4)service-sponsored franchise systems.

Accepted Answer

The answer of There are four popular types of franchising:...

Question 8

Ford uses a(n)__________,whereby the company license dealers in North America to sell Ford automobiles subject to various sales and service conditions.

Accepted Answer

Ford uses a manufacturer-sponsored retail franchise system, whereby dealers are licensed to sell Ford automobiles and must comply with the company's various sales and service conditions.

Question 9

There are four popular types of franchising: (1)__________; (2)manufacturer-sponsored wholesale franchise systems; (3)service-sponsored retail franchise systems; and (4)service-sponsored franchise systems.

Accepted Answer

The answer of There are four popular types of franchising:...

Question 10

An administered vertical marketing system refers to a marketing system

Accepted Answer

The answer of An administered vertical marketing system refers to...

Question 11

Franchising refers to

Accepted Answer

Franchising refers to a contractual arrangement between a parent company and an individual or firm that allows the latter to operate a certain type of business under an established name and according to specific rules. The franchisor provides the franchisee with support and guidance, including training, marketing materials, and operational procedures, in exchange for ongoing fees and royalties.

Question 12

The four most popular types of franchise arrangements are

Accepted Answer

The answer of The four most popular types of franchise...

Question 13

A __________ is common in the soft drink industry where the manufacturer sells its concentrate to wholesalers,who carbonate it,and market the finished product to retailers.

Accepted Answer

The given scenario describes a manufacturer-sponsored wholesale franchise system. The manufacturer (soft drink company) sells its concentrate to the wholesalers, who carbonate it and distribute it to the retailers. The manufacturer maintains control over the quality and distribution of the product, making it a franchising system. This is different from a manufacturer-sponsored retail franchise system, where the manufacturer directly sells and markets the finished product to the retailers.

Question 14

In the automobile industry,many companies use a __________,whereby a manufacturer licenses dealers to sell its cars subject to various sales and service conditions.

Accepted Answer

The manufacturer-sponsored retail franchise system is a common practice in the automobile industry, where the manufacturer licenses dealers to sell its cars subject to various sales and service conditions. This allows the manufacturer to maintain control over its brand and products while allowing the dealers to operate their businesses independently.

Question 15

Procter & Gamble can obtain cooperation from supermarkets in terms of displaying,promoting,and pricing its products,given its broad assortment of brand-name products.Which type of vertical marketing system does Procter & Gamble represent?

Accepted Answer

Procter & Gamble represents an administered vertical marketing system, where the dominant member (P&G) coordinates the activities of the other members through informal means such as leadership, communication, and relationship. They obtain cooperation from supermarkets through their brand name and reputation.

Question 16

Which of the following statements describes the difference between a corporate vertical marketing system and an administered vertical marketing system?

Accepted Answer

Administered vertical marketing systems achieve coordination through the size and influence of one channel member, while corporate vertical marketing systems achieve coordination through ownership.

Question 17

Jacob has developed a lawn care service that will revolutionize the lawn care industry.However,Jacob has limited operating capital and yet he still wants a wide distribution of his new product.Which of the following options would be the best choice for Jacob?

Accepted Answer

Establishing a service-sponsored retail franchise system would be the best choice for Jacob. This option would allow him to expand his business quickly without having to invest a lot of his limited capital. By partnering with franchisees, Jacob could leverage their local knowledge, operating capital and willingness to invest, to increase the exposure of his brand and product. Franchisees are typically highly motivated to make their business successful since they have a direct financial interest in the outcome. In addition, a franchise system provides a standardized system and operating procedures that can help ensure consistent quality, which is essential for a lawn care service. This option also allows Jacob to maintain control over his core processes, while still expanding his reach.

Question 18

When choosing a marketing channel or intermediary,it is important to ask three key questions: (1)Which channel and intermediaries will provide the best coverage of the target market? (2)Which channel and intermediaries will best satisfy the buying requirements of the target market? and (3)

Accepted Answer

The final question that needs to be asked when choosing a marketing channel or intermediary is which channel and intermediaries will be the most profitable. While the other questions are important, ultimately a business needs to choose the channel that will maximize its profits.

Question 19

Walmart can obtain cooperation from manufacturers in terms of product specifications,price levels,and promotional support,given its position as the world's largest retailer.Walmart is an example of a(n)

Accepted Answer

Walmart's position as the world's largest retailer allows it to exercise significant control over manufacturers in terms of product specifications, pricing, and promotional support. This is an example of an administered vertical marketing system, where one channel member essentially directs and coordinates the activities of others in the channel.

Question 20

__________ is common in the employment services and tax services industries where franchisors license individuals or firms to dispense a service under a trade name and specific guidelines.

Accepted Answer

Service-sponsored franchise system is the only option among the given choices that describes the licensing of individuals or firms to dispense a service under a trade name and specific guidelines, which is common in employment services and tax services industries. The other options refer to manufacturer-sponsored franchise systems that differ in the type of product or service being franchised. Administered vertical marketing system, on the other hand, refers to a coordinated distribution system where dominant channel members exert control over the others.

Quiz 12: Managing Marketing Channels and Supply Chains

The type of vertical marketing system that achieves coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership is referred to as a(n) __________.

Franchising is one form of a(n) __________.

In terms of target market coverage,density refers to the number of __________ in a geographical area.

_________ exists when a franchisor licenses individuals or firms to dispense a service under a trade name and specific guidelines.

Firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others employ a __________.

There are four popular types of franchising: (1) manufacturer-sponsored retail franchise systems; (2) manufacturer-sponsored wholesale franchise systems; (3) service-sponsored franchise systems; and (4) __________.

There are four popular types of franchising: (1) manufacturer-sponsored retail franchise systems,(2) __________; (3) service-sponsored retail franchise systems; and (4) service-sponsored franchise systems.

Ford uses a(n) __________,whereby the company license dealers in North America to sell Ford automobiles subject to various sales and service conditions.

There are four popular types of franchising: (1) __________; (2) manufacturer-sponsored wholesale franchise systems; (3) service-sponsored retail franchise systems; and (4) service-sponsored franchise systems.

An administered vertical marketing system refers to a marketing system

Franchising refers to

The four most popular types of franchise arrangements are

A __________ is common in the soft drink industry where the manufacturer sells its concentrate to wholesalers,who carbonate it,and market the finished product to retailers.

In the automobile industry,many companies use a __________,whereby a manufacturer licenses dealers to sell its cars subject to various sales and service conditions.

Procter & Gamble can obtain cooperation from supermarkets in terms of displaying,promoting,and pricing its products,given its broad assortment of brand-name products.Which type of vertical marketing system does Procter & Gamble represent?

Which of the following statements describes the difference between a corporate vertical marketing system and an administered vertical marketing system?

Jacob has developed a lawn care service that will revolutionize the lawn care industry.However,Jacob has limited operating capital and yet he still wants a wide distribution of his new product.Which of the following options would be the best choice for Jacob?

When choosing a marketing channel or intermediary,it is important to ask three key questions: (1) Which channel and intermediaries will provide the best coverage of the target market? (2) Which channel and intermediaries will best satisfy the buying requirements of the target market? and (3)

Walmart can obtain cooperation from manufacturers in terms of product specifications,price levels,and promotional support,given its position as the world's largest retailer.Walmart is an example of a(n)

__________ is common in the employment services and tax services industries where franchisors license individuals or firms to dispense a service under a trade name and specific guidelines.