Which of the following is an example of a complete business-to-business channel?

16) Which of the following is an example of a complete business-to-business channel?

A) producer to retailer to consumer

B) producer to wholesaler to retailer to consumer

C) producer to sales branch

D) business distributor to business customer

E) producer to distributor to business customer

Answer:  E

Diff: 2        Page Ref: 344

Skill:  Concept

Objective:  12-1

17) All of the institutions in a channel are connected by flows, including physical flow, flow of ownership, payment flow, information flow, and ________ flow.

A) promotion

B) acquisition

C) customer

D) return product

E) by-product

Answer:  A

Diff: 2        Page Ref: 344

Skill:  Concept

Objective:  12-1

18) A distribution channel is more than a collection of firms connected by various flows; it is a(n) ________ in which people and companies interact to accomplish individual, company, and channel goals.

A) added value chain

B) complex behavioral system

C) corporate marketing system

D) vertical marketing system

E) multichannel system

Answer:  B

Diff: 2        Page Ref: 344

Skill:  Concept

Objective:  12-2

19) An advantage of a channel of distribution over selling direct to consumers is that each channel member plays a(n) ________ in the channel.

A) time-saving part

B) specialized role

C) decisional role

D) informational role

E) disciplinary role

Answer:  B

Diff: 2        Page Ref: 344

Skill:  Concept

Objective:  12-2

20) Joanie Calvert is experiencing a disagreement with intermediaries in the channel over who should do what and for what rewards. Joanie is experiencing ________.

A) a tying disagreement

B) channel conflict

C) channel disintermediation

D) third-party logistics

E) channel intermediation

Answer:  B

Diff: 1        Page Ref: 344

Skill:  Concept

Objective:  12-2

21) ________ conflict, which occurs between different levels of the same channel, is more common than ________ conflict, which occurs among firms at the same level of the channel.

A) Horizontal; vertical

B) Vertical; horizontal

C) Contractual; corporate

D) Corporate; franchise

E) Wholesaler; retailer

Answer:  B

Diff: 2        Page Ref: 344

Skill:  Concept

Objective:  12-2

22) Historically, ________ have lacked the leadership to assign member roles and manage conflict.

A) corporate vertical marketing systems

B) contractual vertical marketing systems

C) conventional distribution channels

D) administered vertical marketing systems

E) conventional vertical marketing systems

Answer:  C

Diff: 2        Page Ref: 345

Skill:  Concept

Objective:  12-2

23) A conventional distribution channel consists of one or more ________ producers, wholesalers, and retailers.

A) product-related

B) independent

C) contract

D) estranged

E) merchant

Answer:  B

Diff: 2        Page Ref: 345

Skill:  Concept

Objective:  12-2

24) A channel consisting of one or more separate producers, wholesalers, or retailers that seek to maximize their own profit-even at the expense of profits for the channel as a whole-is a(n) ________.

A) vertical marketing system

B) conventional distribution channel

C) independent channel allocation

D) corporate VMS

E) administered vertical marketing system

Answer:  B

Diff: 2        Page Ref: 345

Skill:  Concept

Objective:  12-2

25) An advantage of a vertical marketing system (VMS) is that it acts as a ________ system.

A) unified

B) creative

C) modern

D) customer-driven

E) task-driven

Answer:  A

Diff: 3        Page Ref: 345

Skill:  Concept

Objective:  12-2

26) A corporate VMS has the advantage of controlling the entire distribution chain through ________.

A) a profit-maximizing strategic plan

B) single ownership

C) mass distribution

D) contracts among separate members

E) franchise agreements

Answer:  B

Diff: 1        Page Ref: 345

Skill:  Concept

Objective:  12-2

27) Which of the following are the three major types of vertical marketing systems?

A) corporate, contractual, and chain

B) contractual, corporate, and independent

C) contractual, corporate, and administered

D) administered, independent, and franchised

E) contractual, corporate, and task

Answer:  C

Diff: 2        Page Ref: 345

Skill:  Concept

Objective:  12-2

28) A distinguishing feature of a contractual VMS is that coordination and conflict management among the independent members of the channel are attained through ________.

A) agents and brokers

B) unspoken partnerships

C) limited liability incorporation

D) contractual agreements

E) natural competitive forces

Answer:  D

Diff: 1        Page Ref: 346

Skill:  Concept

Objective:  12-2

29) The most common type of contractual relationship in business is the ________.

A) franchise organization

B) administered marketing system

C) conventional marketing channel

D) corporate VMS

E) horizontal marketing system

Answer:  A

Diff: 1        Page Ref: 346

Skill:  Concept

Objective:  12-2

30) Leadership in which type of marketing system is assumed not through common ownership or contractual ties but through the size and power of one or a few dominant channel members?

A) horizontal marketing system

B) administered VMS

C) corporate VMS

D) multichannel distribution system

E) conventional marketing channel

Answer:  B

Diff: 1        Page Ref: 348

Skill:  Concept

Objective:  12-2