Question 1

Franchising is one form of a(n)__________.

Accepted Answer

Franchising is a contractual vertical marketing system where a franchisor grants a franchisee the rights to use its name, trademarks, and business model in exchange for a fee and ongoing royalties. The franchisee operates under the franchisor's guidelines and standards, but remains an independent entity.

Question 2

Which type of contractual vertical marketing system involves small independent retailers forming an organization that operates a wholesale facility cooperatively?

Accepted Answer

This type of contractual vertical marketing system is known as a retailer-sponsored cooperative, where small independent retailers come together to form an organization that operates a wholesale facility cooperatively.

Question 3

IGA and Ben Franklin variety and craft stores are examples of

Accepted Answer

The answer of IGA and Ben Franklin variety and craft...

Question 4

A __________ 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

A manufacturer-sponsored wholesale franchise system is the most fitting description for the given scenario where the manufacturer sells the concentrate to wholesalers, who then market the finished product to retailers. This type of franchise system is commonly used in the soft drink industry.

Question 5

Franchising refers to

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 typically pays an initial fee as well as ongoing royalties to the franchisor in exchange for the right to use the established business model and brand name.

Question 6

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

Accepted Answer

The description provided fits the definition of a service-sponsored franchise system, where the franchisee is licensed to provide a specific service under the franchisor's trade name and guidelines. The other options (A, B, C, D) do not fit the description provided.

Question 7

In 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

This is because the options of "manufacturer-sponsored wholesale franchise system" and "administered vertical marketing system" do not accurately describe the relationship between manufacturers and dealerships in the automobile industry. The options of "service-sponsored producer franchise system" and "service-sponsored retail franchise system" do not include the manufacturer, who is pivotal in the relationship. Therefore, the best choice is "manufacturer-sponsored retail franchise system", where the manufacturer licenses dealers to sell its cars subject to various sales and service conditions.

Question 8

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

A service-sponsored retail franchise system is used by firms that create a unique service approach and sell the franchise to others to replicate and profit from it.

Question 9

A 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

The description provided is that of a franchise agreement, where the parent company (franchisor) allows the individual or firm (franchisee) to use their established name and operate a specific type of business according to set rules. The other options listed refer to different types of marketing systems and do not fit the given description.

Question 10

A vertical marketing system that involves a contractual relationship between a wholesaler and small independent retailers to standardize and coordinate buying practices,merchandising programs,and inventory management efforts is referred to as a(n)__________.

Accepted Answer

Wholesaler-sponsored voluntary chain involves a contractual relationship between a wholesaler and small independent retailers to standardize and coordinate various aspects of their operations. This system allows retailers to benefit from the buying power of the wholesaler while maintaining their independence.

Question 11

There are three variations of contractual systems: retailer-sponsored cooperatives,franchising,and __________.

Accepted Answer

The other two variations of contractual systems mentioned in the question are retailer-sponsored cooperatives and franchising. Therefore, the missing option must be one of the other common variations, which is wholesaler-sponsored voluntary chains.

Question 12

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 13

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

By establishing a service-sponsored retail franchise system, Jacob can leverage the resources and capital of franchisees to expand his lawn care service to a wider audience without depleting his limited operating capital. Franchisees can also provide localized expertise and knowledge, which can help to better serve customers in different regions. This option can help Jacob achieve wide distribution while minimizing financial risk.

Question 14

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 missing type of franchising is manufacturer-sponsored wholesale franchise systems, where the franchisee buys products from the franchisor to sell to their own customers. The other three types mentioned in the question are already listed.

Question 15

The arrangement in which small,independent retailers form an organization that operates a wholesale facility cooperatively is referred to as a(n)__________.

Accepted Answer

A retailer-sponsored cooperative is an arrangement in which small, independent retailers form an organization that operates a wholesale facility cooperatively. This allows them to purchase goods at lower prices by buying in bulk and sharing costs. This type of cooperative can help small retailers compete with larger chains by offering customers a wider selection of products at lower prices.

Question 16

The four most popular types of franchise arrangements are

Accepted Answer

The answer of The four most popular types of franchise...

Question 17

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

Accepted Answer

Ford uses a manufacturer-sponsored retail franchise system, where licensed dealers in North America can sell Ford automobiles subject to various sales and service conditions.

Question 18

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 19

A retailer-sponsored cooperative refers to

Accepted Answer

A retailer-sponsored cooperative refers to small, independent retailers forming an organization that operates a wholesale facility cooperatively.

Question 20

Ace 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

Ace Hardware is a retailer-sponsored cooperative, as it is owned and operated by its member retailers who work together to improve their buying and promotional power.

Quiz 15: Managing Marketing Channels and Supply Chains

Franchising is one form of a(n) __________.

Which type of contractual vertical marketing system involves small independent retailers forming an organization that operates a wholesale facility cooperatively?

IGA and Ben Franklin variety and craft stores are examples of

A __________ 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.

Franchising refers to

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

In the automobile industry,many companies use a __________,whereby a manufacturer licenses dealers to sell its cars subject to various sales and service conditions.

Firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others employ a __________.

A 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 __________.

A vertical marketing system that involves a contractual relationship between a wholesaler and small independent retailers to standardize and coordinate buying practices,merchandising programs,and inventory management efforts is referred to as a(n) __________.

There are three variations of contractual systems: retailer-sponsored cooperatives,franchising,and __________.

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) __________.

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?

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.

The arrangement in which small,independent retailers form an organization that operates a wholesale facility cooperatively is referred to as a(n) __________.

The four most popular types of franchise arrangements are

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

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.

A retailer-sponsored cooperative refers to

Ace 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.