Question 1

The purpose of implementing a vertical marketing system is to:

Accepted Answer

The purpose of implementing a vertical marketing system is to achieve channel economies and create the maximum marketing impact. This system is designed to coordinate and integrate the activities of different channel members, such as manufacturers, wholesalers, and retailers, to reduce distribution costs and increase the efficiency of the overall channel. This approach is commonly used in industries where there is a high degree of competition and pressure to reduce costs while maintaining service levels. By bringing all of the channel members together, a vertical marketing system can improve communication, reduce duplication of effort, and achieve economies of scale, which can ultimately result in better prices for customers and increased profitability for the firms involved.

Question 2

A recent innovation in marketing channels whereby one firm's marketing channel is used to sell another firm's products is called a(n):

Accepted Answer

A strategic channel alliance is when one firm's marketing channel is used to sell another firm's products. This allows both firms to benefit from the strengths of their respective marketing channels and expand their customer base. Integrated channel alliance suggests a deeper level of integration between the marketing channels, which may involve sharing customer data and resources. Dual distribution refers to a firm selling its products through multiple channels, and cooperative distribution refers to two or more firms sharing distribution activities (such as warehousing or transportation).

Question 3

Which of the following is a type of merchant wholesaler?

Accepted Answer

The answer of Which of the following is a type...

Question 4

When Kraft Foods uses the distribution system of Ajinomoto, a major Japanese food company, to market its Maxwell House coffee in Japan. It is employing a(n)__________ strategy.

Accepted Answer

Kraft Foods is using a strategic channel alliance by partnering with Ajinomoto to distribute its Maxwell House coffee in Japan.

Question 5

Which type of marketing channel arrangement is good for a firm to use in international marketing where the creation of marketing channel relationships is expensive and time consuming?

Accepted Answer

Strategic channel alliance would be a good choice for a firm to use in international marketing where the creation of marketing channel relationships is expensive and time consuming because it involves partnering with another company in a foreign market to use their existing distribution channels. This allows the firm to quickly enter the market without having to invest time and resources into creating their own distribution channels.

Question 6

Josmar Farms, sells their products directly at their storefront, at a local farmers market, through a local convenience store, and through an online storefront using Facebook. They are referred to as a(n):

Accepted Answer

Josmar Farms sells their products through multiple channels or platforms, such as a physical storefront, farmers market, convenience store, and online storefront using Facebook. This makes them a multichannel retailer.

Question 7

Kraft distributes Starbucks coffee in supermarkets. This is called a(n):

Accepted Answer

A strategic channel alliance is when two companies join together to market or distribute a product. In this case, Kraft and Starbucks have formed a partnership to distribute Starbucks coffee in supermarkets, making B the best choice. Cooperative distribution typically involves various companies working together to distribute a product, while integrated channel alliance and dual distribution involve different methods of distributing a product through multiple channels.

Question 8

A regional manufacturer of dairy products has developed a frozen soy-based yogurt product. It feels the choice of distribution channel is critical to the product's success, especially since it wants to have the product distributed nationally. However, it will take some time before sales take off, and it wants to make sure the marketing program is consistent everywhere. It should use:

Accepted Answer

The answer of A regional manufacturer of dairy products has...

Question 9

Which type of wholesaler carries a broad assortment of merchandise and performs all channel functions?

Accepted Answer

General merchandise wholesalers carry a broad assortment of merchandise and perform all channel functions, including warehousing, transportation, financing, and risk bearing. Limited-line wholesalers specialize in a narrow range of products, rack jobbers specialize in selling and merchandising specific products on behalf of manufacturers, and specialty merchandise wholesalers specialize in unique or hard-to-find products.

Question 10

Which limited-service wholesalers perform no facilitating functions?

Accepted Answer

Cash-and-carry wholesalers and truck jobbers perform no facilitating functions. Cash-and-carry wholesalers sell products to customers who pay cash and take the products with them, and truck jobbers transport products to retailers without storing or displaying them. Neither perform any additional functions, such as financing or promoting products.

Question 11

All of the following are hauled using the ice road built in Nunavut except:

Accepted Answer

The article does not mention anything about a conveyer system being hauled using the ice road in Nunavut.

Question 12

Ryder Integrated Logistics is charged with making Saturn's JIT system work smoothly. A driver is equipped with a plastic key that plugs into an on-truck computer. The computer informs the driver of all of the following except:

Accepted Answer

The on-truck computer informs the driver of the route to use, where to go, and how much time to spend getting to the destination. Therefore, the driver is informed of all of the listed factors.

Question 13

A Ryder truck driver downloads delivery instructions from an onboard computer to help get supplies for Saturn, an automobile manufacturer. This is part of Saturn's ________.

Accepted Answer

Just-in-time inventory system is a logistics strategy where inventory is received and processed only when it is needed, reducing inventory carrying costs and increasing efficiency. The delivery instructions being downloaded by the Ryder truck driver suggest that Saturn is utilizing a just-in-time inventory system to receive supplies from its suppliers.

Question 14

Bauer Sports Inc. is a wholesaler that specifically focuses on hockey skates, hockey helmets, and hockey gloves. Bauer Sports Inc. is likely a(n):

Accepted Answer

Bauer Sports Inc. focuses specifically on hockey skates, hockey helmets, and hockey gloves, indicating that they are a specialty merchandise wholesaler.

Question 15

Abbott Laboratories, a manufacturer of several popular over-the-counter medications, warehouses and delivers all of 3M's medical and surgical products to hospitals across the nation. The agreement between Abbott Laboratories and 3M is an example of:

Accepted Answer

The agreement between Abbott Laboratories and 3M is an example of a strategic channel alliance where two companies come together to leverage each other's strengths in order to achieve a common goal. Abbott Laboratories' expertise in warehousing and delivering products complements 3M's production of medical and surgical products, resulting in an effective distribution channel.

Question 16

Which of the following is NOT a type of limited-service wholesaler?

Accepted Answer

A general merchandise wholesaler is a type of full-service wholesaler, which offers a wide range of products and services to retailers. The other options are all types of limited-service wholesalers. Truck jobbers sell and deliver directly from their trucks, rack jobbers provide and maintain product displays in retail stores, and cash-and-carry wholesalers require customers to pay and carry out their own products.

Question 17

Merchant wholesalers are independently owned firms that_________ the merchandise they handle.

Accepted Answer

Independent merchant wholesalers take ownership of the merchandise they handle, meaning they purchase and hold inventory before selling it to retailers or other buyers.

Question 18

Meyers Inc. is a Canadian company that manufactures and distributes coffee products in Canada. Because of the wide popularity of its products in Canada, Meyers wants to initiate distribution internationally as soon as possible. The most efficient distribution arrangement in terms of cost and time for Meyers Inc. to use would be:

Accepted Answer

A strategic channel alliance would be the most efficient choice as it involves partnering with existing distributors who already have established networks in international markets, reducing the time and cost of setting up new distribution channels. It also allows Meyers to benefit from the local knowledge and expertise of its partners. Cooperative distribution involves sharing the cost of distribution with other companies and may not be practical for Meyers in terms of control over its brand and products. Multichannel marketing would involve using multiple distribution channels, which could be costly and time-consuming for Meyers. Direct marketing may be effective for reaching customers directly, but would not be the most efficient for international distribution.

Question 19

The ice roads play a vital ________ in the _________of Canada's growing diamond industry.

Accepted Answer

The correct answer is "logistics function; supply chain" because the logistics function refers to the planning, implementation, and control of the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet customer requirements. In the context of Canada's diamond industry, the ice roads are crucial for transporting supplies and diamonds, thus playing a key role in the supply chain logistics.

Question 20

All of the following are types of specialty merchandise wholesalers EXCEPT:

Accepted Answer

Drop shippers, truck jobbers, and rack jobbers are all examples of specialty merchandise wholesalers. Televised home shopping networks, on the other hand, are not considered traditional wholesalers as they typically sell directly to consumers.

Quiz 14: Managing Marketing Channels and Supply Chains

The purpose of implementing a vertical marketing system is to:

A recent innovation in marketing channels whereby one firm's marketing channel is used to sell another firm's products is called a(n) :

Which of the following is a type of merchant wholesaler?

When Kraft Foods uses the distribution system of Ajinomoto, a major Japanese food company, to market its Maxwell House coffee in Japan. It is employing a(n) __________ strategy.