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Cessna is considered the volume leader in the executive-jet market.It has been described as "almost totally vertically integrated." This quote means that Cessna


A) does not fall under the jurisdiction of any federal regulatory agency.
B) owns several of the entities that would make up the traditional marketing channel.
C) has eliminated economies of scale.
D) has achieved a high level of social responsibility.
E) uses outsourcing for all component parts and materials.

F) A) and E)
G) A) and B)

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What is the first step in choosing the right supply chain?


A) understand the supply chain
B) develop a list of qualified channel members
C) enumerate logistics specifications
D) compare multiple-channel alternatives
E) understand the customer

F) C) and E)
G) A) and B)

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Cross-docking is most closely related to __________.


A) efficient supply chains
B) intermodal transportation
C) responsive supply chains
D) reverse logistics
E) exclusive distribution

F) B) and D)
G) D) and E)

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Figure 15-4 above depicts the four most common marketing channels for business products and services."Y" represents


A) consumers.
B) industrial users.
C) dual distributors.
D) agents or brokers.
E) industrial distributors.

F) C) and E)
G) C) and D)

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__________ is a special kind of tying arrangement,which involves a supplier requiring that a channel member carry its full line of products in order to sell a specific item in the supplier's line.


A) Resale restriction
B) Vertical integration
C) Exclusive dealing
D) Refusal to deal
E) Full-line forcing

F) A) and B)
G) A) and E)

Correct Answer

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One of the sales growth strategies Amazon considered early on is (the) __________.


A) sales of books
B) sales of consulting services
C) sales of original paintings and wall art
D) selling Amazon's distribution centers
E) sales of greeting cards and invitations

F) A) and E)
G) C) and D)

Correct Answer

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Some manufacturers have tried to use the brand loyalty of their consumers to force retailers to carry only their products and none from their competitors.These manufacturers were trying to force retailers to participate in a practice known as a(n)


A) resale restriction.
B) vertical integration.
C) exclusive dealing.
D) refusal to deal.
E) tying arrangement.

F) C) and E)
G) All of the above

Correct Answer

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Which of the following BEST DESCRIBES the goal for a firm's inventory and transportation costs?


A) focus more on minimizing required inventory costs
B) focus more on minimizing required transportation costs
C) minimize the sum of inventory and transportation costs
D) maximize the difference between required inventory and transportation costs
E) set a level of transportation costs and minimize the required inventory costs

F) B) and D)
G) A) and E)

Correct Answer

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An industrial distributor refers to


A) an intermediary that performs a variety of marketing channel functions involving selling,stocking,delivering a full product assortment,and financing.
B) an intermediary that maintains its own salesforce and performs all channel functions.
C) an intermediary that deals exclusively with the selling,stocking,and delivery of raw materials used by manufacturers in the production of its products.
D) an intermediary that deals with a single product line within a single industry.
E) an intermediary that performs functions involving selling,stocking,and delivery of industrial goods but is unable to provide financing due to the normally large expenditures.

F) A) and C)
G) A) and B)

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You probably own several pairs of shoes.Further,it is likely you purchased those shoes at retail stores located in a shopping mall and not directly from the manufacturer.In fact,most products are brought to you from a series of other individuals or firms known as a __________.


A) marketing network
B) distribution hierarchy
C) marketing chain
D) distribution matrix
E) marketing channel

F) A) and D)
G) A) and E)

Correct Answer

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Goodyear Tire dealers became irate when Goodyear Tire Company decided to sell its brands through Sears,Walmart,and Sam's Club.Many switched to competing tire makers.This is an example of __________.


A) corporate conflict
B) vertical conflict
C) horizontal conflict
D) administered conflict
E) contractual conflict

F) A) and C)
G) A) and D)

Correct Answer

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An even more imprecise term than distributor,__________ can mean the same as retailer,wholesaler and more.


A) broker
B) retailer
C) agent
D) dealer
E) wholesaler

F) A) and E)
G) None of the above

Correct Answer

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Customer convenience is an important consideration when choosing a marketing channel.A commonly held view among website developers is the "__________" where consumers will abandon their efforts to enter or navigate a website if download time exceeds this amount of time.


A) five second rule
B) six second rule
C) seven second rule
D) eight second rule
E) ten second rule

F) B) and C)
G) D) and E)

Correct Answer

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The density of distribution whereby a firm tries to place its products or services in as many outlets as possible is referred to as __________.


A) intensive distribution
B) extensive distribution
C) selective distribution
D) exclusive distribution
E) concentrated distribution

F) None of the above
G) A) and D)

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Figure 15-3 above depicts four common marketing channels for consumer products and services that differ by the kind and number of intermediaries.Channel "B" would be an appropriate marketing channel for which of the following?


A) State Farm insurance services
B) Schwan direct-to-home food products
C) Toyota automobiles
D) John Deere construction machinery
E) Hershey's candy

F) All of the above
G) D) and E)

Correct Answer

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There are three variations of contractual systems: wholesaler-sponsored voluntary chains,retailer-sponsored cooperatives,and __________.


A) franchising
B) service-oriented voluntary chains
C) channel-dominated voluntary chains
D) distributorship cooperatives
E) reseller franchising

F) D) and E)
G) B) and C)

Correct Answer

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Which of the following statements regarding supply chains is most accurate?


A) The most common form of supply chain is the collaborative-response efficiency strategy.
B) In order for a supply chain to work effectively,key decisions should be made by a third-party logistics provider.
C) There is no one best supply chain for every company.
D) The longer the supply chain,the greater the economies of scale and the better the profit margins.
E) Supply chains should consider the needs of suppliers,provided those needs are consistent with marketing strategies.

F) A) and C)
G) D) and E)

Correct Answer

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Rather than compete with large greeting card companies for shelf space in supermarkets,several smaller card companies place their cards in pack-and-ship stores where the customer can mail a card on the spur of the moment,and in racks in carwashes where customers who are waiting for their cars can browse and purchase cards.This would be an example of which type of marketing channel strategy?


A) a strategic channel alliance
B) multichannel distribution
C) parallel distribution
D) dual distribution
E) direct distribution

F) A) and D)
G) B) and E)

Correct Answer

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Tiffany & Co.manufactures about half of the fine jewelry items for sale in its stores and boutiques worldwide.Tiffany & Co.practices


A) backward integration.
B) forward integration.
C) vertical integration.
D) joint venturing.
E) horizontal integration.

F) A) and D)
G) A) and C)

Correct Answer

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Activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost are referred to as __________.


A) sensitivity
B) distribution
C) logistics
D) direct selling
E) warehousing

F) A) and D)
G) D) and E)

Correct Answer

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