59. _____ distribution is achieved by screening dealers to eliminate all but a few in any single geographic
area. Shopping goods and some specialty products that consumers are willing to search for are sold
this way.
a.
Intensive
b.
Selective
c.
Exclusive
d.
Dual
e.
Controlled
60. Hill’s Pet Nutrition products are distributed mainly through specialty pet food stores and veterinarians
rather than mass retailers like Target or Kmart. Only a few dealers are chosen in any single geographic
area. This is an example of _____ distribution.
a.
dual
b.
intensive
c.
exclusive
d.
selective
e.
controlled
61. Canesta Company has developed a virtual keyboard out of light to be used with cell phones and
personal digital assistants (PDAs). The product beams an image of a keyboard on a desk, allowing the
user to type on the image. The words are picked up by the user’s digital device. When introduced to the
market, the device will sell for less than $50. What level of distribution intensity should the company
use?
a.
Exclusive
b.
Controlled
c.
Extensive
d.
Reciprocal
e.
Selective
62. Polo brand apparel is only available in fine department stores or from Polo retail stores. Which
distribution strategy has Polo adopted?
a.
Extensive
b.
Intensive
c.
Premium
d.
Selective
e.
Pioneering
63. Which level of distribution intensity is the most restrictive and entails establishing only one or a few
dealers within a given geographic area?
a.
Selective
b.
Intensive
c.
Exclusive
d.
Dual
e.
Premium
64. Nike has collaborated with a small number of specific stores in which they release their line of SB
Skateboarding shoes. One of those stores is Goods, located in downtown Seattle. This is an example of
_____ distribution.
a.
exclusive
b.
intensive
c.
selective
d.
reciprocal
e.
premium
65. Caterpillar, the manufacturer of tractors and other earthmoving equipment, has an extremely high
market share, which means customers seek the dealers out regardless of where they are. There are
approximately 50 Caterpillar dealers in the United States—one in each state. From this information,
you can surmise that Caterpillar uses _____ distribution.
a.
selective
b.
premium
c.
intensive
d.
exclusive
e.
inclusive
66. Which of the following types of distribution channel relationships is considered to be temporary?
a.
Arm’s-Length
b.
Functional
c.
Cooperative
d.
Hierarchical
e.
Integrated
67. This summer, college student Pat is planning on selling kites at Panama City Beach. He has found
some suppliers and preordered all of the kites he thinks he can sell this summer. What type of a
distribution channel relationship does Pat have with his suppliers?
a.
Arm’s-Length
b.
Functional
c.
Cooperative
d.
Hierarchical
e.
Integrated
68. With the _____ channel relationship, both parties retain their independence and pursue their own
interests while attempting to benefit from the goods or services provided by the other.
a.
Arm’s-Length
b.
functional
c.
cooperative
d.
hierarchical
e.
integrated
69. The major weakness to Arm’s-Length relationships is:
a.
the failure of one of the parties will result in the failure of the other party
b.
the large amount of capital needed to form the relationship
c.
opportunistic behavior on the part of one of the parties
d.
they force the parties into a strongly interdependent relationship
e.
they explicitly define the relationships to the involved channel members
70. _____ distribution channel relationships are situations where one company or several companies
acting as one perform all channel functions.
a.
Arm’s-Length
b.
Functional
c.
Cooperative
d.
Hierarchical
e.
Integrated
71. One of the earliest, largest and most famous examples of vertical integration was the Carnegie Steel
Company. The company controlled not only the mills where the steel was manufactured but also the
mines where the iron ore was extracted, the coal mines that supplied the coal, the ships that transported
the iron ore and the railroads that transported the coal to the factory. Carnegie Steel has a(n) _____
channel relationship.
a.
Arm’s-Length
b.
functional
c.
cooperative
d.
hierarchical
e.
integrated
72. A _____ consists of several companies acting together in a highly organized and efficient manner,
while employing the same or similar techniques as a single vertically integrated company.
a.
distribution arrangement
b.
marketing channel
c.
transactional relationship
d.
supply chain
e.
agent/broker channel
73. _____ channel relationships include non-equity agreements such as franchising and licensing, as well
as equity-based joint ventures and strategic alliances.
a.
Arm’s-Length
b.
Functional
c.
Cooperative
d.
Hierarchical
e.
Integrated
74. Which channel relationship is less ambiguous than an Arm’s-Length relationship but without the
longer-term and/or capital investment required to achieve full integration?
a.
Ersatz
b.
Cooperative
c.
Functional
d.
Integrated
e.
Supplemental
75. In 1935, Howard Johnson teamed up with Reginald Sprague to establish the first modern restaurant
franchise. Their idea was to let independent operators use the same name, food, supplies, logo and
even building design in exchange for a fee. In terms of the type of channel relationships established,
this non-equity agreement would require a(n) _____ relationship.
a.
negotiated
b.
functional
c.
integrated
d.
cooperative
e.
Arm’s-Length
76. The capacity of a particular marketing channel member to control or influence the behavior of other
channel members is known as:
a.
channel power
b.
channel conflict
c.
channel control
d.
channel dominance
e.
channel inversion
77. Walmart is the largest retailer in the world and many consumer package-goods manufacturers like
Kraft have offices in Bentonville, Arkansas where Walmart is headquartered. Walmart has the ability
to influence manufacturers to lower their prices so that it can deliver on its low-price guarantee to
consumers. Walmart possesses:
a.
channel influence
b.
channel supremacy
c.
channel power
d.
channel exclusivity
e.
channel clout
78. A situation that occurs when one marketing channel member intentionally affects another member’s
behavior is called:
a.
channel power
b.
channel control
c.
channel conflict
d.
channel dominance
e.
channel inversion
79. A channel leader is also called a(n):
a.
intermediary leader
b.
channel captain
c.
channel facilitator
d.
distribution supervisor
e.
channel gatekeeper
80. DeBeers sells most of the diamonds it produces to industry. The company controls over 90 percent of
the market and has great power over its distributors. In its marketing channel, DeBeers would be
considered a:
a.
channel authority
b.
channel member
c.
channel leader
d.
channel gatekeeper
e.
power broker
81. Johns Manville is the only manufacturer to offer a complete line of Formaldehyde-free fiber glass
building insulation, which offers superior energy efficiency in hard-to-reach cathedral ceilings and flat
roof cavities; plus it is an excellent sound control for interior floors. As the only manufacturer and
patent-holder of this revolutionary insulation, Johns Manville has great power over its dealers. It is an
example of a:
a.
channel authority
b.
channel regulator
c.
channel captain
d.
channel gatekeeper
e.
power broker
82. Channel conflict:
a.
always has an adverse effect on the members of the channel
b.
is not caused by ideological differences because such differences would prevent the
members from ever operating as a channel
c.
is often caused by an inability of some channel members to keep up with the changing
times
d.
can appear as either internal or external
e.
does not occur when multiple distribution channels are used
83. Almost a million fans are willing to buy subscriptions to watch Major League Baseball (MLB) games
online at MLB.com. That business is worth more than $100 million to MLB. But this online broadcast
takes those fans away from the broadcasters that pay MLB hundreds of millions of dollars for the right
to carry the games. Which of the following is likely to occur between MLB and broadcast television?
a.
Horizontal market share
b.
Lateral channel takeover
c.
Niche market conflict
d.
Channel conflict
e.
Market share conflict
84. Honda uses just-in-time manufacturing to build its Odyssey minivans. Five companies that make
component parts for the Honda Odyssey relocated to Alabama and states bordering Alabama when
Honda announced plans to build a new Odyssey manufacturing plant in Alabama. This relocation in
order to provide efficient delivery of goods indicates Honda is a:
a.
channel captain
b.
horizontal integrator
c.
distribution champion
d.
distribution ombudsman
e.
demand maverick
85. Channel conflict that occurs among channel members on the same level is known as:
a.
primary conflict
b.
organic conflict
c.
internal conflict
d.
horizontal conflict
e.
vertical conflict
86. Horizontal channel conflict occurs most often when manufacturers practice:
a.
dual or multiple distribution
b.
trade loading
c.
promotional pricing
d.
direct distribution
e.
channel distribution
87. Goodyear tire dealers were hurt financially when Goodyear made the decision to distribute its tires
through retailers such as Sears and Walmart in addition to the exclusive dealerships it had established.
The conflict that occurred at the retail level is an example of:
a.
horizontal conflict
b.
trade loading
c.
value-added pricing
d.
exclusive distribution
e.
channel partnering
88. Channel conflict that occurs between different levels in a marketing channel is referred to as:
a.
horizontal conflict
b.
primary conflict
c.
vertical conflict
d.
secondary conflict
e.
parallel conflict
89. You can purchase an iPod at a variety of retail locations, such as Best Buy and MicroCenter.
However, iPods can also be purchased at Apple Stores or from Apple’s web site. This creates the
potential for _____ conflict in the channel of distribution.
a.
primary
b.
secondary
c.
horizontal
d.
vertical
e.
parallel
90. When two companies with a marketing channel have an agreement,_____ justice reflects the extent to
which each is willing to abide by both its written rules and intended spirit.
a.
ethical
b.
procedural
c.
distributive
d.
interactional
e.
tertiary
91. According to the terms of their agreement, a small convenience store pays its distributor on time on the
15th of every month. In term, the distributor makes sure to deliver product to the convenience store in
an accurate and timely way. The parties in this marketing channel appear to be committed to the
principles of _____ justice.
a.
distributive
b.
restorative
c.
procedural
d.
retributive
e.
organizational
92. Which of the following is the best definition of distributive justice?
a.
the extent to which outcomes and rewards shared by parties in a marketing channel are
distributed fairly
b.
the level of punishment a marketing channel member needs to receive in order to
discourage unethical behavior
c.
the extent to which parties in a marketing channel treat one another in socially acceptable
or desirable ways
d.
the willingness of one party in a marketing channel to “make things right” with other
channel members that have been treated unfairly
e.
the extent to which parties in a marketing channel treat one another equitably according to
predefined terms or processes
93. _____ is the joint effort of all channel members to create a supply chain that serves customers and
creates a competitive advantage.
a.
Selective partnering
b.
Direct distribution
c.
Channel partnering
d.
Intensive integration
e.
Closed channel distribution
94. ___Which of the following is a characteristic of a partnership-based firm?
a.
Long-term relationship between manufacturer and supplier
b.
Large number of suppliers
c.
Minimal level of information sharing
d.
Small investment required
e.
Price more important than value
95. Which of the following statements about developing global marketing channels is FALSE?
a.
Channel structures and types abroad are generally similar to those found in the United
States.
b.
Developing effective marketing channels in emerging nations is complicated due to
different retail format preferences.
c.
The Internet has proved to be a way for pirates to circumvent authorized distribution
channels.
d.
Some countries enact economic policies that directly or indirectly regulate channel
choices.
e.
All of the above are false.
96. _____ occurs when products are distributed through unauthorized marketing channels.
a.
Black marketing
b.
Countertrading
c.
Channel malfeasance
d.
“Gray” marketing
e.
Reverse channeling
97. It seems counterintuitive, but Jon Jordan, CEO of Southern Audio Services (SAS) in Baton Rouge,
wants to curb the number of dealers who are selling his car speakers. Jordan understands that he can’t
handpick all his vendors, but he never expected the rise in unauthorized dealers that came with the
e-commerce boom. When Jordan decided to look for the SAS name on eBay, he came up thousands of
sellers. These eBay sellers are engaging in:
a.
black marketing
b.
channel malfeasance
c.
countertrading
d.
reverse channeling
e.
gray marketing