Question 1

Computerized inventory control systems available to all channel members will mean:

Accepted Answer

The answer of Computerized inventory control systems available to all...

Question 2

An Internet-based technology that enables both large and small businesses and organizations to utilize computer applications without having to have their own hardware, software, office computing space, and staff is called:

Accepted Answer

Cloud computing allows businesses and organizations to access computer applications and services through the internet, without the need for their own hardware, software, and staff. This enables cost efficiency and flexibility in managing business processes.

Question 3

Interbrand competition versus intrabrand competition has been evaluated by the courts in considering:

Accepted Answer

The answer of Interbrand competition versus intrabrand competition has been...

Question 4

The channel manager must __________ the legal environment as it affects the channel.

Accepted Answer

Having a general knowledge of the legal environment is essential for a channel manager to navigate legal issues effectively without necessarily being an expert or focusing too narrowly on specific legislation or court cases.

Question 5

Which of the following is not a relatively new type of technology that can have a major impact on marketing channels?

Accepted Answer

Uniform Product Codes, also known as barcodes, have been in use since the 1970s and are not a new technology. Smartphones, mobile robots, 3-D modeling, and ultra-wideband technology are all relatively new technologies that have the potential to impact marketing channels.

Question 6

The Simplicity Pattern case indicates that manufacturers:

Accepted Answer

The Simplicity Pattern case established the concept of "functional competition," meaning that even if different channel members have different operating characteristics, they can still be considered competitors in the eyes of the law. Therefore, manufacturers cannot assume that retailers with different business models are not in competition, and must be careful in their pricing and distribution policies to avoid violating antitrust laws.

Question 7

Territorial restrictions constitute one of the major types of:

Accepted Answer

Territorial restrictions are a form of resale restrictions, where manufacturers limit the areas in which a retailer can sell their products. This is done to control market saturation, protect territories, or maintain price levels.

Question 8

An increasing number of manufacturers are opening their own stores that carry the same merchandise sold by independent retailers. This practice introduces a potential legal question regarding:

Accepted Answer

Dual distribution refers to the practice of a manufacturer or supplier distributing its products through both independent retailers and their own stores. This can lead to concerns about competition and potential conflicts with the contracts and agreements between the manufacturer and the independent retailers.

Question 9

K&B Products, a producer of perfumes, prohibits its intermediaries from selling competitive perfume products. K&B is engaged in:

Accepted Answer

K&B Products is engaging in exclusive dealing, which is when a manufacturer requires its intermediaries to only carry its products and not its competitors. This is a common practice to maintain control over distribution and protect market share.

Question 10

A federal act that specifically deals with the anticompetitive issues of acquisitions and mergers through vertical integration is the:

Accepted Answer

The Celler-Kefauver Act, passed in 1950, amended the Clayton Act and strengthened the government's ability to prevent anticompetitive acquisitions and mergers through vertical integration. Specifically, it prohibits acquisitions that reduce competition in any line of commerce in any section of the country, even if the acquired company is not a direct competitor of the acquiring company. This act also established a review process for proposed acquisitions and mergers by the federal government to determine if they violate antitrust laws.

Question 11

When Häagen Dazs, the Pillsbury-owned premium ice cream company, told its wholesalers that its policy was to sell only through wholesalers that did not sell competing products, Häagen Dazs was engaging in:

Accepted Answer

Häagen Dazs is engaging in exclusive dealing by insisting that its wholesalers do not sell competing products.

Question 12

The _______________ Act passed in 1914 granted powers to investigate and enforce unfair methods of competition in interstate commerce.

Accepted Answer

The Federal Trade Commission Act of 1914 created the Federal Trade Commission (FTC) and granted it the powers to investigate and enforce unfair methods of competition in interstate commerce. The other acts listed also relate to antitrust laws, but do not specifically grant these powers to the FTC.

Question 13

The "Colgate Doctrine" is:

Accepted Answer

The Colgate Doctrine is a legal principle that allows sellers to use their own criteria and judgment in selecting channel members. It is based on a 1919 Supreme Court case, Colgate v. United States, which upheld the right of a manufacturer to refuse to deal with distributors who did not adhere to its suggested retail prices. This doctrine provides manufacturers with the legal basis for establishing selective distribution systems and retaining control over the pricing of their products.

Question 14

When a supplier requires its channel members to carry a broad group of its products in order to sell any particular product in the supplier's line, the supplier is involved in:

Accepted Answer

Full-line forcing is when a supplier requires its channel members to carry a broad group of its products in order to sell any particular product in the supplier's line. This limits the channel member's ability to choose which products to carry and can restrict competition.

Question 15

A piece of federal legislation that specifically deals with price discrimination is the:

Accepted Answer

The Robinson-Patman Act specifically deals with price discrimination, making it the correct choice. The Clayton Act deals with antitrust regulation in general, the Baitman-Roberson and Price Maintenance Acts do not exist, and the Patman-Morgan Act deals with credit practices.

Question 16

A relatively new technology that uses an electronic tag to track people or products using radio waves is called?

Accepted Answer

The technology described specifically mentions the use of an electronic tag and radio waves, which is characteristic of RFID technology. The other options do not specifically mention the use of electronic tags or radio waves.

Question 17

All technology has both up sides and down sides. To manufacturers, the downside of electronic scanners and computerized inventory control systems is:

Accepted Answer

Electronic scanners and computerized inventory control systems enable retailers to react quickly to sales and adjust their orders accordingly. This means that manufacturers may suddenly see a decrease in demand for slow-selling products and have excess inventory.

Question 18

Dual distribution occurs when:

Accepted Answer

The answer of Dual distribution occurs when:
...

Question 19

A widespread acceptance of teleshopping and/or computer shopping might very well do all of the following except:

Accepted Answer

The acceptance of teleshopping and computer shopping might decrease the need for traditional retail stores and increase consumer shopping efficiency. It might give rise to new types of facilitating agencies that help consumers purchase products. However, it is unlikely to decrease changes made by channel participants, as retailers and manufacturers will still need to adapt to this new mode of shopping. It might also not give small retailers the same access to markets as large retailers since large retailers might have more resources to invest in teleshopping and computer shopping infrastructure.

Question 20

Price maintenance laws enacted by state governments that allowed retail price fixing, were no longer exempted from federal antitrust legislation with the repeal of the:

Accepted Answer

The Miller-Tydings and McGuire Acts exempted price maintenance agreements from federal antitrust laws as long as the agreements were not "unreasonable," but this exemption was repealed by the passage of the Federal Trade Commission Improvements Act in 1980. Therefore, state laws that allowed for retail price fixing were no longer exempted from federal antitrust legislation.

Quiz 3: The Environment of Marketing Channels