Question 1

Leadership in the channel is attained through the size and power of one of the channel members in a(n):

Accepted Answer

Leadership in an administered vertical marketing network (VMN) is typically achieved through the size and power of one of the channel members, who then wields influence over the others without the need for formal contracts or equity stakes.

Question 2

All of the following are considered to be forms of a vertical marketing network/system (VMN/VMS) EXCEPT:

Accepted Answer

Global is not a form of vertical marketing network/system (VMN/VMS). The other options (Corporate, Contractual, Administered) are all forms of VMN/VMS where there is cooperation and coordination among different levels of the distribution channel.

Question 3

Which of the following is NOT one of the trends in distribution management discussed in your text?

Accepted Answer

The answer of Which of the following is NOT one...

Question 4

Firms which utilise more than one intermediary, but fewer than all of the intermediaries that could potentially carry their products, are said to employ:

Accepted Answer

Selective distribution involves using a limited number of intermediaries to distribute a product. This strategy allows for some control over the distribution process while still reaching a significant portion of the target market.

Question 5

A type of contractual VMN in which the channel member is linked in to the production- distribution process is the:

Accepted Answer

A franchise organization is a type of contractual VMN in which the channel member is linked in to the production-distribution process. Franchisees are given the right to distribute a company's goods or services, using the company's trademark, name, and business model. This allows the franchisor to expand quickly while maintaining control over the distribution process.

Question 6

Franchise operations, such as Kwik Copy Printing, Domino's Pizza, and Hertz Car Rentals, are examples of:

Accepted Answer

Franchise operations are examples of contractual vertical marketing systems (VMNs), where independent firms at different levels of production and distribution join together through contracts to achieve greater economies of scale and greater sales impact than they could achieve alone.

Question 7

Reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred is associated with which of the following key functions performed by the marketing channel?

Accepted Answer

Negotiation involves reaching an agreement on price and other terms of the offer. The other functions are not directly related to transferring ownership or possession. Contact is the act of finding and communicating with potential buyers or sellers, selling involves persuading customers to buy the product, information involves gathering and disseminating information about the market and product, and matching involves connecting buyers and sellers.

Question 8

Select the word that best completes the following sentence. A(n)_________ marketing channel consist of independent producers, wholesalers and retailers.

Accepted Answer

Conventional marketing channels consist of independent producers, wholesalers, and retailers, each operating as separate businesses.

Question 9

The process of moving products from suppliers to the factory is known as:

Accepted Answer

The process of moving products from suppliers to the factory is known as inbound distribution.

Question 10

Conflict between channel members at the same level of the channel is called simply:

Accepted Answer

Horizontal conflict refers to the conflict that arises between channel members at the same level of the channel, such as between two retailers or two wholesalers.

Question 11

Coordination and conflict management is attained through single ownership at different levels of the channel in a(n):

Accepted Answer

A corporate Vertical Marketing Network (VMN) achieves coordination and conflict management through single ownership across different levels of the channel.

Question 12

Which of the following is NOT a type of franchise?

Accepted Answer

There are three main types of franchises: service-firm-sponsored, manufacturer-sponsored retailer, and manufacturer-sponsored wholesaler. Option D, retail-wholesaler-sponsored retail-wholesale franchise system, is not a type of franchise.

Question 13

IBM, at one time sold its products using its own sales force exclusively. Today, however, the market has prompted changes in IBM's distribution philosophy. The company now has 18 new channels in addition to its own sales force. The correct description of this form of marketing would be to characterise IBM's approach as being one where_________ are used.

Accepted Answer

IBM's approach can be described as a hybrid marketing system because it uses multiple channels (18 in addition to its own sales force) to distribute its products.

Question 14

When a company like Coca- Cola has disagreements with some of its bottlers over business practices, it is a form of:

Accepted Answer

Vertical conflict refers to a disagreement or conflict that arises between different levels or tiers of the same distribution channel. In this case, Coca-Cola (the manufacturer) and its bottlers (the intermediaries or distributors) represent different levels in the same distribution channel. Therefore, any disagreement between them would be considered a form of vertical conflict.

Question 15

Coordination and conflict management is achieved through the use of written, legally- binding agreements among independent channel members in a(n):

Accepted Answer

The use of written, legally-binding agreements is a characteristic of a contractual vertical marketing network (VMN). In this type of network, independent channel members come together through contractual agreements to coordinate and manage conflict. The other options listed (consolidated VMN, corporate VMN, proprietary VMN, and administrative VMN) do not necessarily involve written, legally-binding agreements.

Question 16

Avon, Amway and Tupperware use which of the following forms of channel distribution?

Accepted Answer

Avon, Amway, and Tupperware all use direct marketing channels, where they sell their products directly to consumers without intermediaries such as retailers.

Question 17

The process of moving broken, unwanted, excess or products returned by customers to resellers or distributors is known as:

Accepted Answer

Reverse distribution specifically refers to the process of moving goods that are not fit for regular distribution back through the supply chain.

Question 18

When Coca- Cola and Nestlé formed a joint venture to market ready- to- drink coffee and tea worldwide, the type of marketing system that was formed would be best described as being a:

Accepted Answer

A horizontal marketing system is formed when two or more companies at the same level in the distribution channel, often competitors, come together to exploit a new marketing opportunity. In this case, Coca-Cola and Nestlé, both major players in their respective fields, collaborated to market ready-to-drink coffee and tea worldwide, making it a horizontal marketing system.

Question 19

The task performed by channel members that involves finding and communicating with prospective buyers is:

Accepted Answer

Contact involves finding and communicating with prospective buyers, which is a key task performed by channel members in the distribution channel.

Question 20

Two or more unrelated companies at one channel level join together to pursue a new marketing opportunity in:

Accepted Answer

Two or more unrelated companies at one channel level join together to pursue a new marketing opportunity in horizontal marketing, which involves the combination of companies in the same industry to offer the market a wider range of choices and increase efficiency in production and distribution. It is different from vertical marketing, which involves the combination of companies at different levels of production and distribution, and partnership marketing, which involves companies from different industries collaborating for mutual benefit. Homogeneous marketing and administered VMN are not relevant to this situation.

Quiz 13: Marketing Channels and Logistics Networks

Leadership in the channel is attained through the size and power of one of the channel members in a(n) :