Question 1

The __________ specifically prohibits exclusive dealing and tying arrangements when they lessen competition or create monopolies.

Accepted Answer

The Clayton Act specifically prohibits exclusive dealing and tying arrangements when they lessen competition or create monopolies. The Sherman Act and the Federal Trade Commission Act also address monopolistic behavior, but the Clayton Act is more specific in regard to exclusive dealing and tying arrangements. The Robinson-Patman Act deals with price discrimination and the Consumer Goods Pricing Act is not a real act.

Question 2

Neiman-Marcus is a retailer that many small manufacturers would like to be associated with.A product placement in Neiman-Marcus will increase the prestige of a smaller brand.The source of Neiman-Marcus's power is its

Accepted Answer

Neiman-Marcus's power comes from its sought-after identification with a particular channel member, as it is known for being an upscale retailer. Being associated with Neiman-Marcus can increase the prestige of smaller brands.

Question 3

A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members.Influence can take four forms,one of which is

Accepted Answer

The answer of A firm becomes a channel captain because...

Question 4

Sports Port,a motorcycle and fishing boat retailer located in a small northern Minnesota town,was the world's largest dealer for Crestliner fishing boats.In order to meet the demand of his many customers,the owner of Sports Port works with a wide variety of channel members,ranging from the manufacturer of the boats to trucking firms,other retailers,and even detailers (firms that clean,polish,and wax boats).Such a diverse channel of distribution often resulted in channel conflict.However,due to his strong consumer following,the owner of Sports Port had the power to resolve disputes between channel members.The owner of Sports Port serves as the __________ in the channel of distribution.

Accepted Answer

The owner of Sports Port is referred to as the "captain" of the channel, which suggests that he takes charge and is responsible for coordinating the activities of the various channel members. He has the power to resolve disputes due to his strong consumer following, which confirms his role as the leader of the channel. Therefore, the best choice is D, channel captain.

Question 5

All the following sources produce channel conflict EXCEPT:

Accepted Answer

Vendor-managed inventory is a strategy in which the manufacturer manages the inventory levels at the retailer's location, thus reducing channel conflict. The other options increase the likelihood of channel conflict by either disrupting established relationships (B), changing the distribution structure (A), or creating disagreements over profits (C) or attention given to products (D).

Question 6

Two sources of horizontal conflict are common.One is when __________.

Accepted Answer

The answer of Two sources of horizontal conflict are common.One...

Question 7

The Federal Trade Commission and the Justice Department monitor channel practices that __________,create monopolies,or otherwise represent unfair methods of competition under the Sherman Act (1890)and the Clayton Act (1914).

Accepted Answer

The FTC and DOJ monitor channel practices that restrain competition, as this goes against the Sherman and Clayton Acts which aim to promote competition and prevent the creation of monopolies. The other choices, such as patent infringement, advertising, and public opinion manipulation, may also be monitored by the FTC and DOJ, but they are not specifically related to channel practices.

Question 8

The Clayton Act prohibits,restricts,or influences all of the following channel strategies and practices EXCEPT:

Accepted Answer

The answer of The Clayton Act prohibits,restricts,or influences all of...

Question 9

A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members.Influence can take four forms,one of which is

Accepted Answer

Expertise is the ability to provide valuable knowledge or skills that other channel members do not possess. A firm with expertise in a particular area may be able to influence other members to follow its lead and take actions that benefit the channel as a whole. This can result in the firm becoming a channel captain. The other options do not directly relate to a firm's ability to influence other members and become a channel captain.

Question 10

The __________ and the Justice Department monitor channel practices that restrain competition,create monopolies,or otherwise represent unfair methods of competition under the provisions of the Clayton Act or the Sherman Act.

Accepted Answer

The Federal Trade Commission (FTC) and the Justice Department are responsible for monitoring and enforcing laws related to competition and antitrust practices. The Consumer Product Safety Commission focuses on product safety issues, the Better Business Bureau is a non-profit organization focused on promoting ethical business practices, the American Marketing Association is a professional association for marketers, and the Department of Commerce is responsible for promoting economic growth and trade.

Question 11

The __________ has been used to prosecute resale restrictions,which are a supplier's attempt to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may be sold.

Accepted Answer

The answer of The __________ has been used to prosecute...

Question 12

A channel captain refers to

Accepted Answer

A channel captain is a channel member who takes on a leadership role in coordinating, directing, and supporting other channel members. They may be a producer, wholesaler, or retailer who is responsible for ensuring that the overall channel strategy is implemented effectively. The channel captain is not necessarily the person with the greatest authority, but rather the one who takes an active role in guiding the channel.

Question 13

Figure 15-7 above shows six channel practices that restrain competition,create monopolies,or otherwise represent unfair methods of competition."A" represents the __________,which is the law Congress passed to regulate vertical integration,exclusive,dealing,dual distribution,tying arrangements,and refusal to deal.

Accepted Answer

"A" represents the practices that the Clayton Act regulates. The Sherman Act addresses horizontal restraints of trade, the Robinson-Patman Act addresses price discrimination, the Federal Trade Commission Act created the FTC to enforce antitrust laws, and the Consumer Goods Pricing Act is not relevant to this question. Therefore, the best choice is the Clayton Act.

Question 14

Walmart is a channel captain because of its strong image,number of outlets,and purchasing volume.The source of Walmart's power is its

Accepted Answer

Walmart's power as a channel captain comes from its economic influence, demonstrated by its large purchasing volume and number of outlets.

Question 15

American Hospital Supply helps its customers (hospitals)manage inventory and streamline order processing for hundreds of medical supplies.The source of American Hospital Supply's power is its

Accepted Answer

American Hospital Supply's power comes from its expertise in helping hospitals manage inventory and streamline order processing.

Question 16

A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members.Influence can take four forms,one of which is

Accepted Answer

A firm becomes a channel captain because of its ability to influence the behavior of other channel members, and economic influence is one of the ways in which a firm can exert that influence. This includes a firm's market share, financial resources, and bargaining power, all of which can be used to persuade or compel other members to follow its lead. The other options (B, C, D, E) may be factors in a firm's ability to become a channel captain, but they are not a form of influence in and of themselves.

Question 17

A channel member (producer,wholesaler,or retailer)who coordinates,directs,and supports other channel members is referred to as a __________.

Accepted Answer

A channel captain is a channel member who takes on a leadership role within the channel and helps to coordinate, direct, and support other members. This includes facilitating communication, resolving conflicts, and working to achieve common goals. While other options such as "channel coordinator" may also be role titles within a channel, "channel captain" specifically implies a leadership role.

Question 18

Goodyear Tire dealers became irate when Goodyear Tire Company decided to sell its brands through Sears,Walmart,and Sam's Club.Many switched to competing tire makers.This is an example of __________.

Accepted Answer

The answer of Goodyear Tire dealers became irate when Goodyear...

Question 19

Figure 15-7 above shows six channel practices that restrain competition,create monopolies,or otherwise represent unfair methods of competition."B" represents the __________,which is the law Congress passed to regulate dual distribution and resale restrictions.

Accepted Answer

The answer of Figure 15-7 above shows six channel practices...

Question 20

Bombardier is the leading marketer of corporate jets.Its brand name is well known and respected in the corporate jet market.The aircraft company relies on outside suppliers for design support and to share development costs and market risks,but Bombardier is considered the leader in determining design and marketing of its planes.For its newest plane,Bombardier has about 30 prime suppliers-about 10 of those have been involved since the initial design phase.Bombardier is an example of a __________.

Accepted Answer

Bombardier is considered the leader in determining design and marketing of its planes, which aligns with the role of a channel captain, who leads and coordinates the activities of the channel members.

Quiz 15: Managing Marketing Channels and Supply Chains

The __________ specifically prohibits exclusive dealing and tying arrangements when they lessen competition or create monopolies.

Neiman-Marcus is a retailer that many small manufacturers would like to be associated with.A product placement in Neiman-Marcus will increase the prestige of a smaller brand.The source of Neiman-Marcus's power is its

A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members.Influence can take four forms,one of which is

All the following sources produce channel conflict EXCEPT:

Two sources of horizontal conflict are common.One is when __________.

The Federal Trade Commission and the Justice Department monitor channel practices that __________,create monopolies,or otherwise represent unfair methods of competition under the Sherman Act (1890) and the Clayton Act (1914) .

The Clayton Act prohibits,restricts,or influences all of the following channel strategies and practices EXCEPT:

A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members.Influence can take four forms,one of which is

The __________ and the Justice Department monitor channel practices that restrain competition,create monopolies,or otherwise represent unfair methods of competition under the provisions of the Clayton Act or the Sherman Act.

The __________ has been used to prosecute resale restrictions,which are a supplier's attempt to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may be sold.

A channel captain refers to

Walmart is a channel captain because of its strong image,number of outlets,and purchasing volume.The source of Walmart's power is its

American Hospital Supply helps its customers (hospitals) manage inventory and streamline order processing for hundreds of medical supplies.The source of American Hospital Supply's power is its

A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members.Influence can take four forms,one of which is

A channel member (producer,wholesaler,or retailer) who coordinates,directs,and supports other channel members is referred to as a __________.

Goodyear Tire dealers became irate when Goodyear Tire Company decided to sell its brands through Sears,Walmart,and Sam's Club.Many switched to competing tire makers.This is an example of __________.

Figure 15-7 above shows six channel practices that restrain competition,create monopolies,or otherwise represent unfair methods of competition."B" represents the __________,which is the law Congress passed to regulate dual distribution and resale restrictions.