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Resale restrictions refer to when a supplier


A) requires a channel member to sell only its products.
B) requires a channel member to finance all loans through the supplier's bank.
C) requires to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may sell.
D) attempts to sell used or pre-owned products as new.
E) attempts to sell used products that have expired or will soon become obsolete without informing the buyer.

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Multichannel marketing


A) creates greater elasticity of demand for its products.
B) can leverage the value-adding capabilities of different channels.
C) creates greater inelasticity of demand for its product.
D) allows firms to legally circumvent paying taxes on revenue generated by online sales.
E) allow customers to avoid shipping and handling charges.

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A refusal to deal with existing channel members may be illegal under the __________.


A) Robinson-Patman Act
B) Sherman Act
C) Federal Trade Commission Act
D) Consumer Goods Pricing Act
E) Clayton Act

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The three major types of vertical marketing systems are administered,corporate,and __________.


A) integrated
B) cooperative
C) delegated
D) manufacturer-dominated
E) contractual

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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 "C" would be an appropriate marketing channel for __________.


A) Hershey's candy
B) Toyota automobiles
C) State Farm car insurance
D) Aspen dental services
E) Ticketmaster tickets to a rock concert

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Bombardier is the leading marketer of corporate jets.Its brand name is well known and respected in the corporate jet market.The aircraft company relies on outside suppliers for design support and to share development costs and market risks,but Bombardier is considered the leader in determining design and marketing of its planes.For its newest plane,Bombardier has about 30 prime suppliers-about 10 of those have been involved since the initial design phase.Bombardier is an example of a __________.


A) product champion
B) channel general
C) channel director
D) channel coordinator
E) channel captain

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A variety of terms are used for marketing intermediaries.According to Figure 15-1 above,"F" represents a(n) __________.


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

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Jaffar (Jeff) Tabrizi is the owner and president of Tabrizi Oriental Rugs located in Toronto,Canada.He personally shops the world over,handpicks,and orders authentic and beautiful handmade rugs.He has them shipped to Canada,where he sells them through his brick-and-mortar stores and his www.tabrizi.com website.In terms of the marketing channel,Jeff is acting as a(n) __________.


A) consumer
B) agent
C) wholesaler
D) brokerage firm
E) middleman

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


A) target market customers
B) competitors
C) wholesalers
D) retail stores
E) stakeholders

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Questions of legality regarding tying arrangements and exclusive dealing would most likely occur in


A) corporate vertical marketing systems.
B) administered vertical marketing systems.
C) franchises.
D) horizontal marketing systems.
E) retail-sponsored cooperatives.

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Butler-McDonald,an Indianapolis firm,recycles outdated computers to reclaim reusable materials such as plastics,copper,zinc,silver,and gold.Butler-McDonald is implementing


A) salvage marketing.
B) materials transformation.
C) cyclical materials handling.
D) reverse logistics.
E) cause-related marketing.

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Logistics is most closely related to which element of the marketing mix?


A) product
B) place
C) production
D) promotion
E) price

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


A) service-sponsored producer franchise system
B) service-sponsored retail franchise system
C) manufacturer-sponsored wholesale franchise system
D) manufacturer-sponsored retail franchise system
E) administered vertical marketing system

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A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members.Influence can take four forms,one of which is


A) stakeholder position.
B) familial ties to other channel members.
C) longevity in the industry.
D) identification with a particular channel member.
E) geographic proximity to the manufacturing plant.

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An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product is referred to as __________.


A) a strategic channel alliance
B) multiple level selling
C) parallel distribution
D) dual distribution
E) recursive distribution

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The __________ has been used to prosecute resale restrictions,which are a supplier's attempt to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may be sold.


A) Sherman Act
B) Robinson-Patman Act
C) Federal Trade Commission Act
D) Clayton Act
E) Consumer Goods Pricing Act

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Exclusive distribution refers to


A) the distribution of products or services in markets where there are currently no other competitors.
B) the distribution of products or services where the producer owns the entire channel of distribution.
C) the density of distribution whereby a firm tries to place its products or services with only one retail outlet in a specified geographical area.
D) the density of distribution whereby a firm tries to place its products or services in as many outlets as possible.
E) the density of distribution whereby a firm tries to place its products or services in a few retail outlets in a specific area.

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A commonly used indirect channel moves product from producer to retailer to consumer.This channel is used when


A) the cost of maintaining inventory is low.
B) the cost of inventory makes it too expensive to use a wholesaler.
C) there is little if any seasonal demand.
D) the risk lies solely with the manufacturer.
E) the retail outlets are regionally located.

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Conflict occurring between intermediaries at the same level in a marketing channel,such as between two or more retailers that carry the same manufacturer's brands,is referred to as __________.


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

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A retailer-sponsored cooperative refers to


A) small,independent retailers forming an organization that operates a wholesale facility cooperatively.
B) a vertical marketing system that involves a contractual relationship between a wholesaler and small independent retailers to standardize and coordinate buying practices,merchandising programs,and inventory management.
C) an agreement among small,privately owned manufacturers to pool their resources by sharing installations,heavy equipment,and warehousing that they would be unable to afford on their own.
D) an agreement among retailers to pool their resources by purchasing services such as signage,snow removal,and trash removal that affects the physical space (strip mall,etc. ) they all share.
E) small,independent retailers that pool their resources to fiancé store expansion programs.

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