Marketing Final Exam

Relationship is considered to be temporary pts 1 ref

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Unformatted text preview: City Beach. He has found some suppliers and has 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 ANS: A The arm’s-length relationship is considered to be temporary. PTS: 1 REF: 211 Thinking KEY: CB&E Model Distribution OBJ: 13-5 TOP: AACSB Reflective MSC: BLOOMS Application 65. 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 ANS: A These types of relationships are often referred to as “arm’s-length” relationships due to the companies’ unwillingness or lack of ability to develop a closer type of relationship. PTS: 1 REF: 211 Thinking KEY: CB&E Model Distribution OBJ: 13-5 TOP: AACSB Reflective MSC: BLOOMS Knowledge 66. _____ distribution channel relationships are situations where one company, or several companies acting as one, performs all channel functions. a. Arm’s-length b. Functional c. Cooperative d. Hierarchical e. Integrated ANS: E Integrated relationships are tightly connected, with linked processes across and between firm boundaries and high levels of trust and interfirm commitment. PTS: 1 REF: 211 Thinking KEY: CB&E Model Distribution OBJ: 13-5 TOP: AACSB Reflective MSC: BLOOMS Knowledge 67. 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 had a(n) _____ channel relationship. a. arm’s-length b. functional c. cooperative d. hierarchical e. integrated ANS: E Integrated distribution channel relationships are situations where one company, or several companies acting as one, performs all channel functions. PTS: 1 REF: 211 Thinking KEY: CB&E Model Distribution OBJ: 13-5 TOP: AACSB Reflective MSC: BLOOMS Application 68. _____ channel relationships include nonequity 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. e. Hierarchical Integrated ANS: C Cooperative relationships are between companies that take the form of informal partnership with moderate levels of trust and information sharing as needed to further each company’s goals. PTS: 1 REF: 211 Thinking KEY: CB&E Model Distribution OBJ: 13-5 TOP: AACSB Reflective MSC: BLOOMS Knowledge 69. Which channel relationship is less ambiguous than an arm’s-length relationship but without the longer-term and/or capital investment required to ac...
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