Question 1

Parul has just taken over her family's business after spending ten years in the marketing department of a large corporation. She met with a representative from one of the firm's biggest customers, who told her, "We should think about how we can make the pie bigger rather than fighting over the size of the slices." She had expected a more cutthroat approach rather than this call for a
A)partnering relationship.
B)shared mission statement.
C)common marketing system.
D)corporate vertical marketing system.
E)linked supply chain.

Accepted Answer

The customer's statement suggests a collaborative and cooperative approach, which aligns with the idea of a partnering relationship. This approach focuses on jointly expanding the market, rather than fighting over a specific share.

Question 2

Marketing channels and supply chains comprise various buying entities that form relationships with one another. The basic motivating factor in these interactions is
A)collaboration creates transactional relationships.
B)the most powerful member of the supply chain always wins.
C)each party wants something from the others.
D)the participants must create the best possible EDI system.
E)retail floor salespeople need emotional support from management.

Accepted Answer

The basic motivating factor in interactions between buying entities in marketing channels and supply chains is that each party wants something from the others. This could be anything from goods or services to information or support. Collaboration and transactional relationships may result from these interactions, but the ultimate motivation is the fulfillment of each party's needs or desires. The idea that the most powerful member of the supply chain always wins is not necessarily true, and the creation of an EDI system may be a means to an end, but it is not the motivating factor in these interactions. The emotional support of retail floor salespeople is also not directly related to the motivations behind marketing channels and supply chains.

Question 3

Brigson Manufacturing Group works with several different suppliers for component parts. One of the suppliers, Caster Corp. has achieved control over the entire supply chain because it tells Brigson when caster orders can be shipped and only ships them when Brigson orders at least ten pallets worth of product. In this situation, Caster Corp. demonstrates ________ in this supply chain.
A)production
B)persistence
C)promotion
D)power
E)pressure

Accepted Answer

Caster Corp. has power in this supply chain as it controls the shipping and demands Brigson to order a certain amount of product before shipping.

Question 4

When there is a partnering relationship in business, _______ is the belief that the partner is honest and benevolent.
A)interdependence
B)credibility
C)trust
D)profit
E)communication

Accepted Answer

Trust is the belief that the partner is honest and benevolent. Interdependence refers to the reliance on each other for mutual benefit, credibility refers to the quality of being trusted and believed in, profit refers to the financial gain, and communication is the exchange of information. While all of these factors may contribute to a successful partnership, trust is essential for establishing a strong, long-lasting relationship.

Question 5

When supply chain members view their goals and ultimate success as intricately linked, or ________, they develop deeper long-term relationships.
A)conventional
B)vertical
C)horizontal
D)administered
E)interdependent

Accepted Answer

When supply chain members view their goals and ultimate success as intricately linked, or interdependent, they understand that the success of one member depends on the success of the others. This fosters a sense of collaboration and mutual benefit, leading to deeper and more long-term relationships between the members.

Question 6

Walmart may have ________ power if a supplier desperately wants to be associated with Walmart, because being known as an important Walmart supplier enables that supplier to attract other retailers' business.
A)referent
B)legitimate
C)licensing arrangement.
D)information
E)coercive

Accepted Answer

Referent power is based on the attractiveness and charisma of the leader; in this context, Walmart's status and influence can make suppliers eager to associate with it, hoping that this association will enhance their attractiveness to other retailers.

Question 7

Katrine's Kitchen Klassics sells products to a large big-box store. Unfortunately, Katrine's doesn't have much say about how their products are marketed at the store because the big-box store feels it is much more knowledgeable about how to market. What type of power does this represent?
A)expertise
B)referent
C)coercive
D)legitimate
E)information

Accepted Answer

The big-box store believes it has superior knowledge and skills in marketing, which represents expertise power.

Question 8

Barb overheard an unpleasant encounter between the manager of the paint store where she works and a sales rep who sells a well-known line of paint products. The rep insisted that his products should be more prominently displayed. The manager had other plans and told him so, and the conversation turned into a loud argument. What Barb observed was an example of
A)sales tactics.
B)channel conflict.
C)retail strategy tension.
D)passive aggressive behavior.
E)a failure of EDI processes.

Accepted Answer

The situation described is an example of channel conflict, which occurs when there is disagreement or tension between different members of a distribution channel, such as the manufacturer, wholesaler, and retailer. The sales rep and the manager are both part of the same distribution channel for paint products, but they have different ideas about how the products should be marketed and displayed. This disagreement can lead to tension and conflict, which can affect the performance of the channel as a whole.

Question 9

In a(n)________ marketing channel, each member attempts to satisfy its own objectives.
A)cooperative
B)corporate
C)contractual
D)administered
E)conventional

Accepted Answer

In a conventional marketing channel, each member operates independently and often seeks to achieve its own objectives, which can sometimes lead to conflicts within the channel. This contrasts with more integrated or cooperative structures where members work closely together towards common goals.

Question 10

If a firm declared that it wanted to develop a strategic relationship, but was unwilling to commit funds or any effort to make it succeed, there would be an obvious lack of
A)mutual trust.
B)common goals.
C)a contractual arrangement.
D)credible commitments.
E)open communication.

Accepted Answer

A strategic relationship requires credible commitments from both parties involved. If one party is unwilling to commit funds or effort, it shows a lack of credibility and commitment to the relationship, which can lead to a breakdown in trust and common goals.

Question 11

Because Walmart has vast knowledge about the consumer goods market, it might exert ________ power over P&G by providing or withholding important market data.
A)coercive
B)reward
C)referent
D)legitimate
E)information

Accepted Answer

Walmart can exert information power over P&G by providing or withholding important market data due to their understanding of the consumer goods market.

Question 12

Who retains complete power in a corporate vertical marketing system?
A)retail outlets
B)transportation companies
C)warehouse distribution centers
D)suppliers
E)parent company

Accepted Answer

In a corporate vertical marketing system, the parent company retains complete power as they own and control all the other entities within the system. They coordinate and manage the distribution of goods and services from the production stage to the final point of sale, including the retail outlets, transportation companies, and warehouse distribution centers.

Question 13

In a vertical marketing system, if the system is ________, the less likely conflict will occur.
A)less formal
B)more independent
C)less independent
D)more conventional
E)more formal

Accepted Answer

Vertical marketing systems that are more formal tend to have established rules, regulations, and procedures in place, which can help reduce the likelihood of conflicts between members of the system. This is because everyone involved in the system understands their roles and responsibilities, which helps to ensure that each member is working towards the same goal. Conversely, less formal systems may lack clear guidelines and lead to confusion or disagreements between members.

Question 14

When Bob's Burger Barn wants french fries delivered in smaller batches more frequently, it offers its distributors an incentive in the form of special bonuses to change their schedules. Bob's Burger Barn demonstrates which kind of power?
A)coercive
B)reward
C)referent
D)expertise
E)information

Accepted Answer

Bob's Burger Barn is using a reward power strategy by offering the distributors special bonuses.

Question 15

In a(n)________ marketing channel, several independent members each attempt maximize their profits.
A)cooperative
B)independent
C)contractual
D)administered
E)corporate

Accepted Answer

Independent marketing channels consist of several independent members who act in their own self-interest to maximize their profits. This type of channel lacks formal coordination or contractual agreements among its members.

Question 16

When her company's component parts were delivered late for the second time in a month, Brigitte withheld payment from her supplier until it was back on schedule. This is an example of ________ power.
A)coercive
B)reward
C)referent
D)expertise
E)legitimate

Accepted Answer

Brigitte is using coercive power by withholding payment until the supplier meets the agreed upon delivery schedule.

Question 17

Heidi would love to get her company's line of bathroom cleaners into Walmart. She believes that if Walmart sells the products, other retailers will also want to. Which type of power does Heidi hope to achieve?
A)legitimate
B)information
C)coercive
D)referent
E)expertise

Accepted Answer

Heidi is hoping to achieve referent power by getting Walmart to carry her company's line of bathroom cleaners. If Walmart sells the products successfully, it would create a social proof and other retailers would want to sell them as well.

Question 18

When Braun's Big Box stores promise to purchase larger quantities if a manufacturer will lower its wholesale price, it is exhibiting ________ power.
A)reward
B)coercive
C)knowledge
D)legitimate
E)referent

Accepted Answer

Reward power is being exhibited here because Braun's Big Box stores are offering a positive incentive (the promise of purchasing larger quantities) in exchange for a lower wholesale price from the manufacturer.

Question 19

Walmart needs P&G to satisfy its customers, and P&G recognizes that if it can keep Walmart happy, it will have more than enough business for years to come. Walmart and P&G recognize that it is in their common interest to be
A)separate identities.
B)strategic partners.
C)supply chain intermediaries.
D)in a corporate vertical marketing system.
E)in an administered vertical marketing system.

Accepted Answer

Both Walmart and P&G recognize the mutual benefit of working together and have formed a strategic partnership to satisfy their customers and ensure long-term business success.

Question 20

When ________ power is evident, the channel member exerting the power offers some type of compensation to gain power.
A)referent
B)coercive
C)reward
D)legitimate
E)expertise

Accepted Answer

When reward power is evident, the channel member with more power offers some kind of compensation to gain power. This compensation, in turn, reinforces the desired behavior of the less powerful channel member, and the more powerful member continues to hold onto and possibly increase their power.

Quiz 15: Supply Chain and Channel Management

Marketing channels and supply chains comprise various buying entities that form relationships with one another. The basic motivating factor in these interactions is

When there is a partnering relationship in business, _______ is the belief that the partner is honest and benevolent.

When supply chain members view their goals and ultimate success as intricately linked, or ________, they develop deeper long-term relationships.

Walmart may have ________ power if a supplier desperately wants to be associated with Walmart, because being known as an important Walmart supplier enables that supplier to attract other retailers' business.

Katrine's Kitchen Klassics sells products to a large big-box store. Unfortunately, Katrine's doesn't have much say about how their products are marketed at the store because the big-box store feels it is much more knowledgeable about how to market. What type of power does this represent?

In a(n) ________ marketing channel, each member attempts to satisfy its own objectives.

If a firm declared that it wanted to develop a strategic relationship, but was unwilling to commit funds or any effort to make it succeed, there would be an obvious lack of

Because Walmart has vast knowledge about the consumer goods market, it might exert ________ power over P&G by providing or withholding important market data.

Who retains complete power in a corporate vertical marketing system?

In a vertical marketing system, if the system is ________, the less likely conflict will occur.

When Bob's Burger Barn wants french fries delivered in smaller batches more frequently, it offers its distributors an incentive in the form of special bonuses to change their schedules. Bob's Burger Barn demonstrates which kind of power?

In a(n) ________ marketing channel, several independent members each attempt maximize their profits.

When her company's component parts were delivered late for the second time in a month, Brigitte withheld payment from her supplier until it was back on schedule. This is an example of ________ power.

Heidi would love to get her company's line of bathroom cleaners into Walmart. She believes that if Walmart sells the products, other retailers will also want to. Which type of power does Heidi hope to achieve?

When Braun's Big Box stores promise to purchase larger quantities if a manufacturer will lower its wholesale price, it is exhibiting ________ power.

Walmart needs P&G to satisfy its customers, and P&G recognizes that if it can keep Walmart happy, it will have more than enough business for years to come. Walmart and P&G recognize that it is in their common interest to be

When ________ power is evident, the channel member exerting the power offers some type of compensation to gain power.