Question 1

__________ 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

In this scenario, the manufacturer is only selling its concentrate to wholesalers who then market it to retailers. This is an example of a manufacturer-sponsored wholesale franchise system. Option D of a manufacturer-sponsored retail franchise system does not apply because the manufacturer is not directly marketing the finished product to retailers. Options A and B of service-sponsored franchise system and service-sponsored retail franchise system are not applicable to the soft drink industry. Option E of administered vertical marketing system is also not applicable because the manufacturer is not controlling the entire distribution channel.

Question 2

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

Accepted Answer

General Motors uses a manufacturer-sponsored retail franchise system, where the company licenses dealers in North America to sell GM automobiles subject to various sales and service conditions.

Question 3

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 their trademark and business system in exchange for a fee and ongoing royalties.

Question 4

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 is referred to as __________.

Accepted Answer

Franchising is a contractual arrangement between a parent company (franchisor) and an individual or firm (franchisee) that allows the latter to operate a certain type of business under an established name and according to specific rules. The franchisee pays a fee to the franchisor and agrees to operate the business according to the franchisor's guidelines.

Question 5

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 manufacturer coordinates the marketing activities of independent retailers and other downstream partners to achieve efficient and effective distribution and promotion of its products.

Question 6

__________ 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 a type of franchising in which the franchisor licenses individuals or firms to provide services under a trade name and specific guidelines. This type of franchising is commonly used in the employment services and tax services industries. Therefore, option A is the best choice. Options B, C, D, and E are not appropriate as they refer to other types of franchising.

Question 7

four most popular types of franchise arrangements are

Accepted Answer

The four most popular types of franchise arrangements are service-sponsored franchise systems, service-sponsored retail franchise systems, manufacturer-sponsored wholesale franchise systems, and manufacturer-sponsored retail franchise systems.

Question 8

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 9

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 as it would allow him to have a wide distribution of his product without requiring a lot of operating capital. Franchisees would invest their own capital to open and operate their location, allowing Jacob to expand his business without assuming a lot of financial risk. Additionally, the franchisees would be trained and controlled by Jacob's company, ensuring that the quality of the lawn care service remains consistent across all locations.

Question 10

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 the best choice because it accurately describes the relationship between automobile manufacturers and their dealers. The manufacturer licenses dealers to sell its cars and provides them with various sales and service conditions, such as dealership design and branding requirements, training programs, and advertising support. This creates a standardized retail environment for consumers and ensures that the manufacturer's brand image remains consistent across all dealerships.

Question 11

Hardware is a national ___________ that allows its members,retailers of paint and hardware products,to concentrate their buying power through wholesalers and more importantly plan collaborative promotional and pricing activities.

Accepted Answer

The description best fits a retailer-sponsored cooperative, as it involves retailers collaborating with each other to increase their buying power and engage in joint promotional and pricing activities. A service-sponsored retail system and a manufacturer-sponsored cooperative involve a central entity coordinating the efforts of the retailers/manufacturers. An administered cooperative system involves a third-party administering the cooperative, while a wholesaler-sponsored voluntary chain involves wholesalers coordinating with each other.

Question 12

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

The type of vertical marketing system described in the question is an administered vertical marketing system, where coordination between stages of production and distribution is achieved through the dominant channel member's size and influence rather than through ownership or contractual arrangements. In this system, the dominant player exercises leadership by providing leadership, coordination, and support to the other members of the distribution chain.

Question 13

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 14

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 rather than through ownership, while corporate vertical marketing systems rely on contractual agreements among different entities owned by a single corporation.

Question 15

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

Accepted Answer

A service-sponsored franchise system is when a franchisor licenses individuals or firms to dispense a service under a trade name and specific guidelines. This type of franchise system is commonly used in industries such as fast food, real estate, and cleaning services.

Question 16

Franchising refers to

Accepted Answer

Franchising is a contractual arrangement between a parent company (franchisor) and an individual or firm (franchisee) that allows the franchisee to operate a certain type of business under an established name and according to specific rules. The franchisor provides the franchisee with the use of its trademark, products, and services, as well as ongoing support and training. In return, the franchisee pays a franchise fee and ongoing royalties to the franchisor.

Question 17

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 18

administered vertical marketing system refers to a marketing system

Accepted Answer

An administered vertical marketing system is coordinated by the size and influence of one powerful channel member, rather than through ownership or contractual agreements.

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 is an example of an administered vertical marketing system because they have significant influence over the manufacturers they work with and dictate specifications, prices, and promotional support.

Question 20

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 blank refers to the type of franchising where the franchisor licenses its trademark and business methods to a franchisee who then sells the product under the franchisor's name and branding. This type of franchising is known as a "manufacturer-sponsored wholesale franchise system." Choices A, C, D, and E are not the correct types of franchising to fill in the blank.

Quiz 15: Managing Marketing Channels and Supply Chains