MRKT 305 CHAPTER 16 EXAM QUESTIONS WELL ANSWERED LATEST UPDATE 2026
Supply Chain Management - Answers The set of approaches and techniques firms use to efficiently
and effectively integrate suppliers, manufacturers, warehouses, stores, and transportation
intermediaries into a seamless process that produces merchandise in the right quantities, at the right
locations, and at the right time.
Marketing Channel Management - Answers The process by which firms develop, coordinate, and
evaluate channel members to improve product availability and customer satisfaction.
Wholesaler - Answers A firm engaged in buying, taking title to, and often storing and physically
handling goods in large quantities, then reselling them (usually in smaller quantities) to retailers or
industrial/business users.
Direct Supply Chain - Answers A supply chain in which consumers buy directly from the manufacturer
without using intermediaries such as wholesalers or retailers.
Indirect Supply Chain - Answers A supply chain in which one or more intermediaries (such as
wholesalers and retailers) work between the manufacturer and the consumer.
Distribution Center - Answers A facility for receiving, storing, and distributing merchandise to stores
or directly to customers.
Fulfillment Center - Answers A specialized distribution center designed to process and ship online
customer orders directly to consumers.
Just-in-Time (JIT) Inventory System - Answers An inventory management approach in which
merchandise is delivered exactly when needed, reducing inventory holding costs and improving
efficiency.
Quick Response (QR) Inventory System - Answers A system in which inventory is reordered
automatically based on real-time sales data to keep products stocked efficiently.
Advanced Shipping Notice (ASN) - Answers An electronic document sent by a supplier to a retailer
before shipment, detailing exactly what is included in the shipment.
Universal Product Code (UPC) - Answers A black-and-white 13-digit bar code used to identify
merchandise and transmit product information electronically.
Radio Frequency Identification (RFID) - Answers A wireless tracking technology using tiny chips that
automatically transmit product information to scanners.
Power - Answers The ability of one channel member to influence another channel member's
decisions or behavior.
Coercive Power - Answers The ability to influence another member through threats, punishment, or
fear of negative consequences.
Reward Power - Answers The ability to influence another member by offering incentives, benefits, or
rewards.
Legitimate Power - Answers Influence gained because one channel member has recognized authority
or legal rights.
Expertise Power - Answers Influence gained because one member possesses special knowledge, skills,
or expertise.
Referent Power - Answers Influence gained because one member is admired, respected, or wants to
be associated with another.
Information Power - Answers The ability to influence because one member possesses important or
valuable information.
Franchising - Answers A contractual agreement in which one firm (franchisor) allows another
(franchisee) to operate a business using its brand, products, and business system.
Franchisor - Answers The company that grants the right to another business to operate using its
brand and system.
Franchisee - Answers The independent business owner who purchases the right to operate under a
franchisor's brand and system.
Corporate Vertical Marketing System - Answers A channel system in which a single firm owns
multiple stages of production or distribution.
Independent Marketing Channel - Answers A conventional channel where each channel member
operates independently and seeks to maximize its own profits.
Conventional Marketing Channel - Answers A marketing channel made up of independent producers,
wholesalers, and retailers acting separately.
Supply Chain Management - Answers The set of approaches and techniques firms use to efficiently
and effectively integrate suppliers, manufacturers, warehouses, stores, and transportation
intermediaries into a seamless process that produces merchandise in the right quantities, at the right
locations, and at the right time.
Marketing Channel Management - Answers The process by which firms develop, coordinate, and
evaluate channel members to improve product availability and customer satisfaction.
Wholesaler - Answers A firm engaged in buying, taking title to, and often storing and physically
handling goods in large quantities, then reselling them (usually in smaller quantities) to retailers or
industrial/business users.
Direct Supply Chain - Answers A supply chain in which consumers buy directly from the manufacturer
without using intermediaries such as wholesalers or retailers.
Indirect Supply Chain - Answers A supply chain in which one or more intermediaries (such as
wholesalers and retailers) work between the manufacturer and the consumer.
Distribution Center - Answers A facility for receiving, storing, and distributing merchandise to stores
or directly to customers.
Fulfillment Center - Answers A specialized distribution center designed to process and ship online
customer orders directly to consumers.
Just-in-Time (JIT) Inventory System - Answers An inventory management approach in which
merchandise is delivered exactly when needed, reducing inventory holding costs and improving
efficiency.
Quick Response (QR) Inventory System - Answers A system in which inventory is reordered
automatically based on real-time sales data to keep products stocked efficiently.
Advanced Shipping Notice (ASN) - Answers An electronic document sent by a supplier to a retailer
before shipment, detailing exactly what is included in the shipment.
Universal Product Code (UPC) - Answers A black-and-white 13-digit bar code used to identify
merchandise and transmit product information electronically.
Radio Frequency Identification (RFID) - Answers A wireless tracking technology using tiny chips that
automatically transmit product information to scanners.
Power - Answers The ability of one channel member to influence another channel member's
decisions or behavior.
Coercive Power - Answers The ability to influence another member through threats, punishment, or
fear of negative consequences.
Reward Power - Answers The ability to influence another member by offering incentives, benefits, or
rewards.
Legitimate Power - Answers Influence gained because one channel member has recognized authority
or legal rights.
Expertise Power - Answers Influence gained because one member possesses special knowledge, skills,
or expertise.
Referent Power - Answers Influence gained because one member is admired, respected, or wants to
be associated with another.
Information Power - Answers The ability to influence because one member possesses important or
valuable information.
Franchising - Answers A contractual agreement in which one firm (franchisor) allows another
(franchisee) to operate a business using its brand, products, and business system.
Franchisor - Answers The company that grants the right to another business to operate using its
brand and system.
Franchisee - Answers The independent business owner who purchases the right to operate under a
franchisor's brand and system.
Corporate Vertical Marketing System - Answers A channel system in which a single firm owns
multiple stages of production or distribution.
Independent Marketing Channel - Answers A conventional channel where each channel member
operates independently and seeks to maximize its own profits.
Conventional Marketing Channel - Answers A marketing channel made up of independent producers,
wholesalers, and retailers acting separately.
