Question 1

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

The scenario described in the question is an example of a manufacturer-sponsored wholesale franchise system, where the manufacturer (in this case, the soft drink company) sells its concentrate to wholesalers who then carbonate it and sell the finished product to retailers.

Question 2

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 answer of There are four popular types of franchising:...

Question 3

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

The description fits the definition of a manufacturer-sponsored retail franchise system, where a manufacturer licenses dealers (the retail franchisee) to sell its cars subject to various sales and service conditions.

Question 4

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 plays the important role in a(n)

Accepted Answer

Walmart's ability to obtain cooperation from manufacturers in terms of product specifications, price levels, and promotional support is indicative of an administered system of distribution, specifically an administered vertical marketing system. In this system, a dominant channel member, like Walmart, coordinates with other members of the distribution channel, such as manufacturers, to achieve efficiencies and enhance the overall value proposition offered to end consumers.

Question 5

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 6

The four most popular types of franchise arrangements are

Accepted Answer

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

Question 7

Jacob has developed a lawn care service that will revolutionize the lawn care industry. 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 option for Jacob with limited operating capital who wants a wide distribution of his new product. This would allow him to partner with other businesses who can use his lawn care service and also benefit from his marketing and branding efforts. Franchisees would have a stake in the success of the business and would be motivated to promote and expand the business. This would provide the exposure Jacob needs without him having to invest a lot of capital in opening branch offices or developing an administered vertical marketing system.

Question 8

The 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

An administered vertical marketing system achieves coordination at successive stages of production and distribution through the size and influence of one channel member rather than through ownership or contractual agreements. This type of system is characterized by a dominant member who coordinates the activities of the other members.

Question 9

Franchising is one form of a(n) __________.

Accepted Answer

Franchising is a type of contractual vertical marketing system where a franchisor grants a franchisee the right to use its brand and operating system in exchange for fees and ongoing support.

Question 10

Which of the following statements best 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, while corporate systems achieve it through ownership.

Question 11

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 12

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 a dominant player (in this case, Procter & Gamble) coordinates and leads the activities of other channel members (such as supermarkets) through its size or power.

Question 13

In terms of target market coverage, density refers to the number of __________ in a geographical area.

Accepted Answer

The answer of In terms of target market coverage, density...

Question 14

When choosing a marketing channel or intermediary, it is important to ask three key questions: (1) Which channel and intermediaries will provide the best coverage of the target market? (2) Which channel and intermediaries will best satisfy the buying requirements of the target market? and (3)

Accepted Answer

The final question that needs to be asked when choosing a marketing channel or intermediary is which channel and intermediaries will be the most profitable. While the other questions are important, ultimately a business needs to choose the channel that will maximize its profits.

Question 15

A(n) __________ 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

The description given in the question matches with the characteristics of a service-sponsored franchise system, as the franchisor licenses individuals or firms to provide a specific service under a trade name and specific guidelines. The employment services and tax services industries are examples of service-based industries that commonly use this type of franchise system. The other options mentioned - service-sponsored retail franchise system, manufacturer-sponsored wholesale franchise system, manufacturer-sponsored retail franchise system, and administered vertical marketing system - do not fit the given description as accurately.

Question 16

A(n) __________ 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 the type of franchise system in which a franchisor allows individuals or firms to dispense a service under a trademark or trade name, and specific guidelines. Examples of such franchises include H&R Block, Jiffy Lube, and Servpro.

Question 17

An administered vertical marketing system refers to a marketing system

Accepted Answer

The answer of An administered vertical marketing system refers to...

Question 18

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 pays a fee for the rights to use the franchisor's trademark, products, and business processes, and in return, the franchisor provides the franchisee with training, support, and marketing assistance.

Question 19

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 20

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

The given description precisely matches with the manufacturer-sponsored retail franchise system. This system allows a manufacturing company to license dealers to sell their products subject to various sales and service conditions. And in this case, the manufacturer is Ford, and the authorized dealers are permitted to sell Ford automobiles to final consumers.

Quiz 12: Managing Marketing Channels and Supply Chains

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.

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.

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

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 plays the important role in a(n)

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.

The four most popular types of franchise arrangements are

Jacob has developed a lawn care service that will revolutionize the lawn care industry. 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?

The 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) __________.

Franchising is one form of a(n) __________.

Which of the following statements best describes the difference between a corporate vertical marketing system and an administered vertical marketing system?

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

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?

In terms of target market coverage, density refers to the number of __________ in a geographical area.

When choosing a marketing channel or intermediary, it is important to ask three key questions: (1) Which channel and intermediaries will provide the best coverage of the target market? (2) Which channel and intermediaries will best satisfy the buying requirements of the target market? and (3)

A(n) __________ 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.

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

An administered vertical marketing system refers to a marketing system

Franchising refers to

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) __________.

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