Question 1

An environmental analysis is an important step in distribution planning.

Accepted Answer

An environmental analysis helps to identify the factors that may affect the distribution process, such as regulations, market trends, and sustainability concerns. Understanding these factors can help a company make informed decisions about its distribution planning.

Question 2

How can a firm benefit from involvement in a contractual VMS?

Accepted Answer

The answer of How can a firm benefit from involvement...

Question 3

Intensive distribution seeks many outlets in a market,while selective distribution seeks only one outlet in a given market area.

Accepted Answer

Intensive distribution seeks to have its product available in as many outlets as possible, while selective distribution seeks to carefully select and limit the number of outlets to maintain better control over the product's image and distribution. Therefore, the statement is false.

Question 4

What types of products are exclusively distributed?

Accepted Answer

The answer of What types of products are exclusively distributed?...

Question 5

A franchise organization is a type of contractual VMS.

Accepted Answer

A franchise organization is a type of contractual VMS where a franchisor grants the right to operate its business model, product, and brand name to a franchisee in return for a fee or royalty.

Question 6

What types of products are intensively distributed?

Accepted Answer

The answer of What types of products are intensively distributed?...

Question 7

Which type of vertical marketing system (VMS)gives an organization more control over both supply sources and resale of its products,while at the same time increasing the organization's capital investment and its fixed costs?
A)administered
B)contractual
C)conventional
D)corporate
E)horizontal

Accepted Answer

A corporate VMS involves the integration of successive stages of production and distribution under single ownership, giving the organization more control over supply sources and resale of its products. However, it requires a higher level of capital investment and fixed costs due to the ownership and control of multiple stages.

Question 8

Explain channel power in a vertical marketing system.

Accepted Answer

The answer of Explain channel power in a vertical marketing...

Question 9

When the NewWay Dry Cleaners and The Easy Laundromat in your hometown join forces to pursue a new marketing opportunity,they are forming a horizontal marketing system.

Accepted Answer

NewWay Dry Cleaners and The Easy Laundromat are both in the same industry and are joining forces to pursue a common goal, which is a characteristic of a horizontal marketing system.

Question 10

Selective distribution strategies are most suitable for convenience products.

Accepted Answer

Selective distribution strategies are most suitable for high-end or luxury products, not convenience products that are widely available through multiple channels.

Question 11

How can a firm benefit from participating in a horizontal marketing system?

Accepted Answer

The answer of How can a firm benefit from participating...

Question 12

In a conventional marketing system,no channel member has much control over the other members,and no formal means exists for assigning roles and resolving channel conflict.

Accepted Answer

In a conventional marketing system, each channel member operates independently, and there is no dominant member to control or coordinate the activities of the others, leading to a lack of formal mechanisms for assigning roles and resolving conflicts.

Question 13

Compare and contrast a conventional marketing system with a vertical marketing system (VMS).

Accepted Answer

The answer of Compare and contrast a conventional marketing system...

Question 14

The first step in planning a channel strategy is to determine what markets need to be reached.

Accepted Answer

The answer of The first step in planning a channel...

Question 15

Describe the three sources of power for a channel captain.

Accepted Answer

The answer of Describe the three sources of power for...

Question 16

A brand of variety stores is part of a wholesaler-sponsored voluntary chain.This means these retailers are members of a(n)________ vertical marketing system (VMS).
A)administered
B)conventional
C)corporate
D)horizontal
E)contractual

Accepted Answer

A voluntary chain is a type of contractual vertical marketing system where independent retailers band together to increase their buying power and compete with larger chain stores. The wholesaler sponsors the voluntary chain and provides support and resources to its members.

Question 17

When Sherwin-Williams Paint Company has single ownership of integrated,successive stages of production and distribution,it has created a corporate VMS.

Accepted Answer

A corporate VMS (Vertical Marketing System) is where a single entity owns and manages various stages of production and distribution, and Sherwin Williams Paint Company fits this description.

Question 18

Compare and contrast the three distribution strategies,giving examples of products that might be distributed through each strategy.

Accepted Answer

The answer of Compare and contrast the three distribution strategies,giving...

Question 19

What types of products are selectively distributed?

Accepted Answer

The answer of What types of products are selectively distributed?...

Question 20

Which of the following is the process of designing,managing,and improving the movement of products through the supply chain?
A)logistics
B)warehousing
C)materials handling
D)inventory management
E)distribution strategy

Accepted Answer

Logistics specifically encompasses the design, management, and improvement of the movement of products through the supply chain. Warehousing, materials handling, inventory management, and distribution strategy may all be components of logistics, but are not the comprehensive process of logistics itself.

Quiz 11: Deliver Value Through Supply Chain Management,channels of Distribution,and Logistics