MKT101 - Chapter 12 Review

Through the use of ________, or "smart tag" technology, a company is able to locate a product's exact position within the supply chain.

A) RFID

B) PRM

C) VMS

D) IT

E) 3PL

• A) RFID

• B) PRM

• C) VMS

• D) IT

• E) 3PL

To reduce inventory management costs, many companies use a system called ________, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation.

• A) reduction-inventory management

• B) just-in-time logistics

• C) limited inventory logistics

• D) supply chain management

• E) economic order quantity

Which of the following transportation modes is used for digital products?

• A) trucks

• B) rail

• C) the Internet

• D) air

• E) ship

________ logistics controls the movement of products from points of production to consumers.

• A) Inbound

• B) Reverse

• C) Outbound

• D) Vertical

• E) Horizontal

A producer of a strong brand that agrees to sell its brand to a dealer only if the dealer will take some or all of the rest of the line is using ________.

• A) exclusive distribution

• B) exclusive dealing

• C) intensive distribution

• D) a tying agreement

• E) disintermediation

Sometimes a seller requires its dealers to abstain from handling competitors' products in an arrangement called ________.

• A) exclusive distribution

• B) exclusive dealing

• C) selective distribution

• D) exclusive pricing

• E) disintermediation

Most companies practice strong PRM to forge long-term relationships with channel members. What does PRM stand for?

• A) primary relationship management

• B) potential relationship management

• C) perennial relationship management

• D) partner relationship management

• E) personnel roster maintenance

When determining the number of channel members to use at each level, three strategies are available: intensive, exclusive, and ________ distribution.

• A) multichannel

• B) selective

• C) international

• D) direct

• E) extensive

The four major steps of designing a channel system are analyzing consumer needs, setting channel objectives, ________, and evaluating the alternatives.

• A) establishing a budget

• B) identifying major channel alternatives

• C) seeking regulatory approval

• D) seeking legal advice

• E) measuring objectives

Which of the following is the most likely disadvantage of adding new channels in a multichannel distribution system?

• A) decreasing understanding of complex markets

• B) decreasing control over the system

• C) fewer opportunities for franchising

• D) increasing disintermediation

• E) reducing conflict among channel members