Question 1

Which of the following is a feature of using an Internet marketing channel?

Accepted Answer

Using an Internet marketing channel enables companies to offer individualized offerings through customization and personalization options. It does not necessarily reduce the need for other channels of distribution or marketing expenses, but it can supplement and enhance a company's overall marketing strategy.

Question 2

Which of the following enables aligning personal goals along corporate goals?

Accepted Answer

The answer of Which of the following enables aligning personal...

Question 3

Stitch, a bespoke designer boutique, in Florida, caters to over 150 customers every month. The customers usually choose and purchase fabric at the same store and depend on an in-house tailor's recommendations for purchasing the right amount of fabric. If the employees of Stitch overestimate the amount of fabric required or overcharge customers for fabric, they will be violating the value of _____ in the AMA Statement of Ethics.

Accepted Answer

Overestimating the amount of fabric required or overcharging customers for fabric violates the value of fairness in the AMA Statement of Ethics. This is because it would result in the customers paying more than what is actually required, which is unfair to them.

Question 4

A customer information storehouse enables

Accepted Answer

A customer information storehouse allows retailers to keep track of customers' purchase history and preferences, which can be used to provide a seamless experience for customers. This can include personalized recommendations and targeted marketing, ultimately creating a better overall experience for the customer.

Question 5

A toy manufacturer realizes that its latest product presents a choking hazard due to some of the components used in the toy. This occured despite the prior implementation of safety measures to prevent such an occurrence. The toy manufacturer is faced with a decision to recall over a million products or place a warning label on each product. This type of situation is representative of _____.

Accepted Answer

This situation presents an ethical dilemma as the toy manufacturer must weigh the potential harm to consumers against the financial cost of recalling over a million products or placing warning labels on each product. The decision they make will have ethical consequences for the company and its stakeholders.

Question 6

DRM Bikes received an order for a customized bike. Bret, the employee in charge of ordering parts for the custom bikes, ordered two fewer clamping bolts and realized the mistake only after his co-worker Julio complained of a shortage in clamping bolts. Julio suggested that it was best to inform the customer about the situation and place a new order for a set of bolts. Martino, Bret's co-worker, suggested using an old pair of bolts because the average customer wouldn't recognize the difference. However, Bret knows that the customer is an experienced biker who will notice the difference, and hence suggested that they use the old pair on a bike for a customer who would not. Considering the evidence presented, what is the ethical step for the sales manager to take?

Accepted Answer

The ethical choice in this situation is to inform the customer about the mistake and place a new order for the correct set of bolts. It is not ethical to deceive the customer by using an old pair of bolts or delaying delivery with a false excuse. Honesty and transparency is always the best policy in ethical dilemmas.

Question 7

Which of the following is true of a conventional marketing channel?

Accepted Answer

In a conventional marketing channel, each member strives to satisfy its own objectives. This means that each member of the channel works independently to achieve their own goals, such as maximizing profits, rather than working together in the best interest of the channel as a whole.

Question 8

QuickFix Inc., a clothing supplier, sends an advanced shipping notice document to Western Stores. Which of the following information is most likely to be conveyed by this document?

Accepted Answer

An advanced shipping notice document typically conveys information related to the size and quantity of the shipment, such as the number of units shipped and the dimensions of the packages. It is intended to provide the recipient with advance notice of a shipment so that they can be prepared to receive it and process it quickly. Details regarding the transfer of ownership, prices, and warehousing are typically not included in an advanced shipping notice.

Question 9

In a franchise system,:

Accepted Answer

In a franchise system, the franchisee pays a lump sum plus a royalty on all sales in return for the right to operate a business in a specific location. The franchisor provides the name, format, training, advertising, and ongoing support to the franchisee, but the franchisee generally has some control over store design, product or service offerings, and management decisions. Option A is incorrect because it describes the opposite scenario, where the franchisor operates a retail location. Option C is incorrect because it suggests that franchisees have complete control over certain areas, which is not usually the case. Option D is incorrect because franchisors and franchisees both receive profits, and the payment structure can vary. Option E is partially correct, but franchisees are not solely responsible for system development - this is typically an ongoing collaboration between franchisor and franchisee.

Question 10

Serenity Inc. exercises reward power over a channel partner when Serenity:

Accepted Answer

Reward power is exercised when a company offers incentives or rewards to motivate others to achieve specific outcomes. In this scenario, Serenity Inc. exercises reward power over its channel partner ACTFast Transporters by offering them a monetary incentive to improve their transportation speed.

Question 11

Power in a marketing channel exists when:

Accepted Answer

Power in a marketing channel exists when one firm has the means or ability to dictate the actions of another member at a different level of distribution. This can lead to disputes and conflicts if one firm abuses its power and it can affect the profitability and success of the entire channel.

Question 12

CL Corp. buys stationery supplies from Sharpe Inc. on a large scale and sells smaller quantities to several stationery stores around the country. In this scenario, CL Corp. is an example of a _____.

Accepted Answer

CL Corp. buys stationery supplies in bulk from Sharpe Inc. and sells smaller quantities to several stationery stores around the country. This indicates that CL Corp. is acting as a wholesaler, which is an intermediary that purchases goods in large quantities from manufacturers or other suppliers and then sells smaller quantities to retailers or other intermediaries.

Question 13

As compared to a value, a norm is:

Accepted Answer

Norms are established standards of conduct maintained by an organization or society, guiding behavior and expectations.

Question 14

Sunshine Foods Inc., an international fast-food chain, allows JP Inc. to use its logo and operate a retail outlet in the name of Sunshine Foods for a specified fee. Sunshine Foods also provides JP Inc. with assistance in relocating and establishing the outlet. This type of arrangement is known as _____.

Accepted Answer

The arrangement described in the scenario is that of franchising, where Sunshine Foods allows JP Inc. to use its logo and operate a retail outlet in exchange for a fee and assistance in establishing the outlet.

Question 15

Which of the following is true of distribution centers?

Accepted Answer

Distribution centers allow retailers to carry less inventory in individual stores, as they can rely on the distribution center to replenish stock quickly. This results in lower inventory investments for the entire system.

Question 16

_____ retailers offer an inconsistent assortment of brand name merchandise at a significant discount from the manufacturer's suggested retail price (MSRP).

Accepted Answer

Off-price retailers specialize in offering brand name merchandise at a significant discount from the MSRP, but their product assortment may vary from one store to another. Limited-line retailers offer a narrow range of products within a particular category, hypermarkets offer a large variety of products across multiple categories, convenience stores offer a limited selection of products for customers' convenience, and extreme value retailers typically offer low-priced, generic items.

Question 17

In a distribution center, getting merchandise floor-ready means _____.

Accepted Answer

Getting merchandise floor-ready means preparing the merchandise to be placed on the selling floor, where customers will be able to purchase it. This can include tasks such as unpacking, labeling, inspecting, and arranging the merchandise in a visually appealing way. Packaging merchandise for storage in the distribution center (A), sending merchandise to a specific store (C), checking for damage or accuracy upon receipt (D), and recording receipts (E) are all important tasks in the distribution center, but they are not specifically related to getting merchandise floor-ready.

Question 18

In an administered vertical marketing system,:

Accepted Answer

In an administered vertical marketing system, one member (usually the manufacturer) can direct the actions of other channel members (such as distributors or retailers) without owning them or having a contractual relationship with them. This type of system allows for a more coordinated and efficient distribution process.

Question 19

An inventory-management system in which the supplier determines the amount of product a retailer needs and automatically delivers the appropriate items is referred to as _____.

Accepted Answer

Vendor-managed inventory (VMI) is a type of inventory management system where the supplier is responsible for monitoring and replenishing inventory levels for the retailer. The supplier has access to real-time sales data from the retailer's point of sale system and is able to determine when products need to be restocked. This allows for more efficient inventory management and can help to reduce stockouts and overstocking.

Question 20

Which of the following is true of an administrative marketing channel?

Accepted Answer

In an administrative marketing channel, the dominant member controls or holds the balance of power, despite there being no common ownership. This allows for greater control and coordination within the channel compared to a channel held together only by contractual relationships or where each member tries to maximize their own profits.

Exam 1: Professional Certified Marketer