Principles of Marketing 6th Edition

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Exam
Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) In your text, the system that efficiently and effectively makes and moves products to end users is termed ________.

A) physical distribution
B) logistics network management
C) a goods and services transportation network
D) cross docking
E) a supply chain
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

2) The modern marketing organisation uses its marketing logistics strength to coordinate functions and manage the
activities of a range of entities. Which of the following is NOT one of them?

A) suppliers
B) purchasing agents
C) manufacturers
D) intermediaries
E) government departments
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

3) Through the use of ________, or 'smart tag' technology, a company is able to locate exactly where a product is within the
supply chain.

A) RFID
B) PRM
C) VMS
D) IT
E) 3PL
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Use of IT

4) The supply chain involves many decisions related to marketing channels and logistics. Which of the following would be
a logistics decision?

A) whether to sole-source
B) where to locate a plant
C) what type of operational process to use
D) whether to supply from inventory or from production
E) All of the above.
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

5) The supply chain management involves many activities and decisions related to marketing channels and logistics.
Which of the following would NOT be a supply chain management decision?
A) sales forecasting
B) production plans
C) the total cost of logistics
D) transportation
E) All of the above.
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

6) The main supply chain functions focusing on the customer end include which of the following ?

A) warehousing
B) inventory management
C) transportation
D) logistics information management
E) All of the above.
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

7) Jewels for the Rich and Famous sells very exclusive jewellery with a minimum price of $25 000 to customers around the
world. Speed of delivery to distant markets is a must. Management should consider using ________ as its main carrier.

A) rail
B) air
C) truck
D) the internet
E) water
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Reflective Thinking

8) A firm located in a seaport town sells rock, gravel and sand to local markets. It has just been awarded a large contract
with a company 500 miles down the coast. Management should consider switching from truck to ________ transport.

A) water
B) rail
C) pipeline
D) air
E) None of the above.
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Reflective Thinking

9) Which of the following lists of intermodal transportation combinations means rail and trucks, water and trucks, and
water and rail?

A) fishyback, airtruck and trainship

B) piggyback, airtruck and fishyback
C) trainship, fishyback and piggyback
D) piggyback, fishyback and trainship
E) piggyback, fishyback and birdyback
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

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

A) trucks
B) rail
C) the internet
D) air
E) ship
Diff: 1
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Use of IT

11) In choosing a transportation mode for a product, shippers must balance many considerations. Which of the following is
NOT a principal consideration for selecting the optimal transportation mode?

A) speed
B) dependability
C) availability
D) cost
E) company reputation
Diff: 3
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

12) The modern marketing supply chain might also be thought of as a value delivery network.

A) True
B) False
Diff: 1
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

13) The following terms are often used interchangeably by different commentators: logistics, marketing logistics,
integrated logistics management, supply-chain management, materials management and physical distribution.

A) True
B) False
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

14) In moving goods, managers try to choose a set of warehouses, or cross-docking points, and transportation carriers that
will deliver finished goods to final destinations in the desired time and/or at the lowest total cost.

A) True
B) False
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

15) The total cost of logistics is minimal and can amount to just 5-10 per cent of a product's cost.

A) True
B) False
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

16) Logistics, more than almost any other marketing activity, affects the environment and a firm's environmental
sustainability efforts.

A) True
B) False
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

17) Developing a green supply chain is not only environmentally responsible; it can also be profitable.

A) True
B) False
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

18) Marketing logistics trade-offs occur when management seeks to find optimal results in terms of achieving shareholder
value while also achieving maximal sales and cash flow for the company.

A) True
B) False
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

19) A company using just-in-time (JIT) logistics carries only small inventories and uses sophisticated forecasting along with
flexibly delivery so that supplies of new stock arrive only when they are needed.

A) True
B) False
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

20) Carrying too much inventory is always preferable to carrying too little.

A) True
B) False
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

21) Many large and resourceful marketing companies, such as Coles, Woolworths, Metcash and Unilever are investing
heavily to make the full use of RFID technology a reality.

A) True
B) False
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

22) A 'smart tag' or RFID technology is a small transmitter chip embedded in or placed on products and packaging,
allowing the products to be tracked throughout the distribution channel.

A) True
B) False
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
23) The modern marketing organisation uses its ________ strength to coordinate functions within it by managing the
activities of suppliers, purchasing agents, manufacturers, marketers, intermediaries and customers.
Diff: 3
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

24) In moving goods, managers try to choose a set of warehouses (stocking points), or cross-docking points, and
transportation carriers that will deliver finished goods to final destinations in the desired ________ and/or at the lowest
________.
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

25) The goal of marketing logistics should be to provide a(n) ________ level of customer service at the least cost.
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

26) The difference between distribution centres and storage warehouses is that distribution centres are designed to
________ goods rather than just store them.
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

27) 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.
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Use of IT

28) ________ account for the major share of freight movement within Australia with some 40 per cent of total cargo
tonne-kilometres moved.
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

29) Air carriers transport less than ________ per cent of cargo tonne-kilometres of the nation's goods.
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

30) Among the most frequently air-freighted products are ________.

Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

31) The ________ carries digital products from producer to customer via satellite, cable or copper wire.
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

32) Using ________ ________ ________ systems, retailers can share real-time data on sales and current inventory levels with
suppliers who take responsibility for ordering and delivering products to retailers, thereby saving time and money.
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Use of IT

ESSAY. Write your answer in the space provided or on a separate sheet of paper.
33) Briefly outline how channel members add value to a marketing system.
Diff: 2
Learning Obj.: 10.1 Describe the nature of supply chain management and how marketing channels add value. pp. 298-305
AACSB: Communication

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
34) A marketing ________ is a network of interdependent organisations called intermediaries that are involved in the
process of making a product or services available to users.

A) channel
B) network
C) structure
D) chain
E) complex
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

35) Members of the marketing channel add value when they move goods from producers and suppliers to consumers by
overcoming ________, ________ and ________ gaps that arise when separate suppliers are unable to coordinate supply and
demand.

A) time; place; possession

B) time; substance; style
C) form; economic; service
D) market; competitive; strategic
E) access; convenience; service
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

36) Marketing channel members perform many key functions. Which of the following is NOT normally a channel function?

A) information gathering and distributing

B) matching the offer to the buyer's needs
C) negotiating an agreement on price and other terms to facilitate transfer of ownership
D) risk taking—assuming the risks of carrying out the channel work.
E) sale of products or services to final end users
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

37) Intermediaries usually offer a firm more than it can achieve on its own. Which of the following is most likely an
advantage of working with intermediaries?

A) financial support
B) fast service
C) scale of operation
D) working relationships with foreign distributors
E) strategy development
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Reflective Thinking

38) From the economic system's point of view, the role of marketing intermediaries is to transform the assortment of
products made by producers into the assortment of products wanted by ________.

A) channel members
B) distributors
C) consumers
D) manufacturers
E) marketers
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

39) Producers benefit from using intermediaries because they ________.

A) offer greater efficiency in making goods available to target markets

B) bring a fresh point of view to strategy development
C) eliminate risk
D) are generally backlogged with orders
E) refuse to store products for longer than a few days
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

40) Proud Pets, a producer of clothing and accessories for pets, has recently partnered with a regional chain of pet stores.
Which of the following would Proud Pets be LEAST likely to expect from its new channel member?

A) promoting its products through advertising

B) assembling and packaging its products for final sale
C) distributing relevant marketing research information
D) identifying raw materials and other productive inputs
E) negotiating on its products' prices
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Reflective Thinking

41) Intermediaries play an important role in coordinating ________.

A) dealer with customer

B) supply and demand
C) strategy and product
D) manufacturer to product
E) information and promotion
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

42) In marketing terms, we say that the number of intermediary levels indicates the ________ of a channel.

A) depth
B) complexity
C) involvement
D) length
E) width
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

43) To a producer of goods, a greater number of channel levels means ________ and greater channel complexity.

A) less distance between producer and end consumer

B) less control
C) more potential ideas
D) higher taxes
E) fewer channel members
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

44) Which type of product might require a more direct marketing channel to avoid delays and too much handling?

A) lower-priced products
B) perishable products
C) high-priced products
D) products in their maturity stage
E) products in their decline stage
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Reflective Thinking

45) Each layer of intermediary that performs some work in bringing the product and its ownership closer to the final buyer
is a channel ________.

A) layer
B) level
C) tier
D) stratum
E) None of the above.
Diff: 3
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

46) A direct marketing channel consists of how many levels?

A) zero
B) one
C) two
D) three
E) It is inappropriate to use levels when describing direct marketing.
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

47) Which of the following statements about a zero-level channel is correct?

A) It may also be called a backward channel.

B) It is the same as a direct marketing channel.
C) It has only one intermediary between producer and consumer.
D) It has three members.
E) It refers to intensive distribution channels where there are an indeterminate number of channel members.
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

48) The goal of channels in the service sector is to make the service ________.

A) available to target populations

B) affordable, differentiated and easy to find
C) risk free, readily available and differentiated
D) differentiated, targeted and affordable
E) affordable and accessible
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

49) Marketing channels may be used to market ________.

A) a hospital
B) government ideas
C) birth-control clinics
D) comedians
E) All of the above.
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Reflective Thinking

50) 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
Diff: 3
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication
51) When two Hungry Jacks restaurants have a disagreement over who should be able to sell in quantity at a discount to
local athletic teams, it is called a ________ channel conflict.

A) vertical
B) disintermediation
C) multichannel
D) horizontal
E) functional
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Reflective Thinking

52) Staples Office Supply opened an online store that created competition with many of its dealers. The corporate office
created a(n) ________ conflict.

A) vertical
B) problematic
C) functional
D) horizontal
E) intermediation
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Reflective Thinking

53) 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 behavioural system
C) corporate marketing system
D) vertical marketing system
E) multichannel system
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

54) ________ 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
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

55) David Jones terminated its arrangements to supply clothing from popular fashion label, Country Road, following the
latter's increasing involvement with direct factory outlets. For the prestige retailer, David Jones, Country Road's activities
were not only a direct source of competition, but also represented an inconsistency with their carefully crafted prestige
image. This is an example of ________.
A) exclusive dealing
B) channel conflict
C) a breakdown in a contractual network
D) a power struggle
E) All of the above.
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

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

A) corporate, contractual and chain

B) contractual, corporate and independent
C) corporate, contractual and administered
D) administered, independent and franchised
E) corporate, contractual and task
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

57) A ________ consists of producers, wholesalers and retailers acting as a unified system.

A) value-driven marketing network

B) corporate marketing network
C) complex marketing network
D) physical distribution system
E) vertical marketing network
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

58) Historically, ________ have lacked strong leadership and have been troubled by damaging conflict and poor
performance.

A) corporate vertical marketing systems

B) contractual vertical marketing systems
C) conventional marketing channels
D) administered vertical marketing systems
E) conventional vertical marketing systems
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

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

A) product-related
B) independent
C) contract
D) franchised
E) None of the above.
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication
60) A channel consisting of one or more independent producers, wholesalers or retailers each seeking to maximise its own
profits even at the expense of profits for the channel as a whole is a(n) ________.

A) vertical marketing system

B) conventional marketing channel
C) independent channel allocation
D) corporate VMS
E) administered vertical marketing system
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

61) An advantage of a vertical marketing network (VMN) over a conventional distribution channel is that it acts as a
________ system.

A) unified
B) democratic
C) socially responsible
D) customer-driven
E) task-driven
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

62) The Beta Corporation retains outright ownership of all members of its distribution channel. Beta's channel would be
best described as a(n) ________.

A) corporate VMN
B) consolidated VMN
C) administrative VMN
D) contractual VMN
E) proprietary VMN
Diff: 1
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Reflective Thinking

63) Equitable Products Corporation has negotiated legal agreements with each member of its channel to ensure channel
coordination, and it spells out procedures for conflict management. The firm's distribution system would be best described
as a(n) ________.

A) administrative VMN
B) contractual VMN
C) consolidated VMN
D) corporate VMN
E) proprietary VMN
Diff: 1
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Reflective Thinking

64) A corporate VMN has the advantage of controlling the entire distribution chain under ________.

A) a profit-maximising strategic plan

B) single ownership
C) mass distribution
D) a few intermediaries
E) franchise agreements
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

65) Which of the following is NOT a form of contractual VMN?

A) wholesaler sponsored voluntary chain

B) retailer cooperative
C) manufacturer-sponsored retailer franchise network
D) service-firm-sponsored retailer franchise network
E) corporate vertically managed network
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

66) 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 VMN
C) corporate VMN
D) conventional marketing channel
E) multichannel distribution system
Diff: 1
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

67) In a ________, two or more companies at one level join together to follow a new marketing opportunity.

A) franchise
B) corporate VMN
C) horizontal marketing network
D) multichannel distribution network
E) conventional distribution channel
Diff: 1
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

68) Which of the following is an example of a manufacturer-sponsored retailer franchise system?

A) fast-food restaurants such as McDonald's and Hungry Jacks

B) Ford and its network of independent franchised dealers
C) licensed bottlers that bottle and sell Coca-Cola to retailers
D) a motel chain such as Holiday Inn and Quest Group
E) All of the above.
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Reflective Thinking

69) When a Hudsons coffee shop offers its products inside of a private hospital, it is acting as part of a ________.

A) conventional distribution channel

B) direct marketing channel
C) disintermediated system
D) administered VMS
E) horizontal marketing system
Diff: 3
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Reflective Thinking

70) Which of the following is an example of a multichannel distribution system?

A) K-Mart setting up outlets in several new countries

B) Myer catalogue and retail store sales
C) Avon's door-to-door distribution
D) a hotel providing guest privileges at a health spa across the street
E) All of the above.
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Reflective Thinking

71) It is becoming rare for marketers to use a(n) ________ marketing channel to reach their target markets.

A) single
B) dual
C) controlled
D) complex
E) tertiary
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

72) Multichannel distribution systems are also called ________.

A) dual distribution systems

B) hybrid marketing systems
C) administered franchises
D) horizontal multichannel systems
E) contractual marketing systems
Diff: 3
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

73) ________ occur when a single firm sets up two or more marketing channels to reach one or more customer segments.

A) Dual distribution systems

B) Multichannel distribution networks
C) Administered franchises
D) Horizontal multichannel systems
E) Contractual marketing systems
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

74) Orica's Dulux paint is sold through company-owned trade stores in Australasia as well as through competing outlets
such as Bunnings and Mitre 10, and it is sold directly via the internet to professional painters. This is an example of
________.

A) dual distribution systems

B) multichannel distribution networks
C) administered franchises
D) horizontal multichannel systems
E) contractual marketing systems
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Reflective Thinking

75) As marketing manager for Globe Imports and Exports, you want to start reaping the benefits of a multichannel
distribution system. You will likely enjoy all of the following EXCEPT which one?

A) expanded sales
B) expanded market coverage
C) selling at a higher gross margin
D) opportunities to tailor products and services to the needs of diverse segments
E) greater profitability
Diff: 3
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Reflective Thinking

76) 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
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Reflective Thinking

77) Disintermediation refers to ________.

A) a process of restructuring marketing channels in order to deal more directly with customers
B) a process of attempting to exert some control over complex and fragmented channels
C) a shift from conventional to vertical marketing networks
D) a synonym for direct marketing
E) the process of acting as a mediator in channel conflict
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

78) Due in a large part to advances in technology, ________ is a major trend whereby product and service producers are
bypassing intermediaries and going directly to final buyers, or radically new types of channel intermediaries are emerging
to displace traditional ones.

A) the vertical marketing system

B) the corporate marketing system
C) disintermediation
D) the corporate merger
E) the hostile takeover
Diff: 1
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Use of IT

79) Producers who can afford to set up their own channels are unlikely to use intermediaries.

A) True
B) False
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Analytic Skills

80) With increased use of the internet, few producers sell through intermediaries today.

A) True
B) False
Diff: 1
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Use of IT

81) Members of the marketing channel add value when they move goods from producers and suppliers to consumers by
overcoming time, placement and possession gaps.

A) True
B) False
Diff: 1
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

82) A major role played by intermediaries is to buy large quantities of products from many producers and break them
down into the smaller quantities and broader assortments wanted by consumers.

A) True
B) False
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

83) Members of the marketing channel may help a company complete transactions by performing key functions such as
promotion and negotiation.

A) True
B) False
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

84) The producer and the final consumer are part of every type of marketing channel.

A) True
B) False
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication
85) In a direct marketing channel, which has no intermediary levels, the company sells directly to consumers.

A) True
B) False
Diff: 1
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

86) The manager of the local McDonald's franchise in Bankstown had recently had her request to participate in cooperative
advertising, like the other McDonald's in her district, refused by Head Office. Now she is irritated and demands fairness in
treatment. This is an example of horizontal conflict.

A) True
B) False
Diff: 3
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Reflective Thinking

87) Channel conflict is always damaging and managers should do all they can to eradicate it altogether.

A) True
B) False
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

88) In a conventional distribution channel, no channel member has much control over the other members, and no formal
means exists for assigning roles and resolving channel conflict.

A) True
B) False
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

89) When Haynes, a Ballarat paint manufacturer, has single ownership of integrated, successive stages of production and
distribution, it has created a corporate VMS.

A) True
B) False
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Reflective Thinking

90) The three main types of franchises are manufacturer-sponsored retailers, manufacturer-sponsored wholesalers and
service-firm-sponsored retailers.

A) True
B) False
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication
91) When the dry cleaners and the laundromat in your home town join forces to follow a new marketing opportunity, they
are forming a horizontal marketing network.

A) True
B) False
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Reflective Thinking

92) Allfarmers Produce Company has a route selling to more than 100 groceries, schools and restaurants at wholesale
prices. Last week the owners opened up a walk-in discounted consumer produce outlet in the local town. It is now using a
multichannel network.

A) True
B) False
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Reflective Thinking

93) Disintermediation involves restructuring marketing channels to deal more directly with customers.

A) True
B) False
Diff: 1
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

94) Marketers using multichannels gain sales with each new channel but also risk offending existing channels.

A) True
B) False
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
95) The use of intermediaries largely reflects their greater ________ in making goods available to target markets.
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

96) Marketing channels are a major part of any marketing logistics network and involve the interaction of ________ to
bring the goods and services to the marketplace.
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

97) A marketing ________ is a set of interdependent organisations involved in the process of making a product or service
available to users.
Diff: 1
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

98) Members of the marketing channel add ________ when they move goods from producers and suppliers to consumers.
Diff: 3
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

99) Although channel members are dependent on one another, disagreements can and do occur. Such disagreements are
known as channel ________.
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

100) ________ conflict is conflict between firms at the same level of the channel.
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

101) ________ conflict is conflict between different levels of the same channel, and is even more common.
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

102) A(n) ________ marketing network consists of producers, wholesalers and retailers acting as a unified network; one
channel member owns the others, has contracts with them or wields so much power that they all cooperate.
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

103) A(n) ________ VMN is a vertical marketing network that combines successive stages of production and distribution
under single ownership; channel leadership is established through common ownership.
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

104) A(n) ________ marketing network is one in which two or more companies at one level join together to follow a new
marketing opportunity.
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

ESSAY. Write your answer in the space provided or on a separate sheet of paper.
105) Compare and contrast a conventional distribution channel with a vertical marketing system (VMS).
Diff: 3
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

106) Why are multichannel distribution systems gaining popularity today?

Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Communication

107) Outline the ways that retailers are using technology to enhance the in-store customer experience.
Diff: 2
Learning Obj.: 10.2 Describe the nature of marketing channels and how they organise to create value. pp. 305-316
AACSB: Use of IT

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
108) ________ involves all the activities involved in selling goods or services directly to final consumers for their personal,
non-business use.

A) Wholesaling
B) Producing
C) Retailing
D) Consumer marketing
E) Direct marketing
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Reflective Thinking

109) A producer sells its products to K-Mart, who then onsells them to the consumers. This is an example of a(n) ________.

A) direct marketing channel

B) producer channel
C) indirect marketing channel
D) retailer channel
E) corporate vertical marketing system
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Reflective Thinking

110) Every night at about 1:00 am, a shift worker stops by the 7-11 store near her house. She often buys milk or bread while
she's there, even though the prices at the 7-11 are higher than at her local Woolworths supermarket. The 7-11 is an example
of a ________.

A) specialty store
B) superstore
C) warehouse store
D) convenience store
E) combination store
Diff: 1
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Reflective Thinking

111) Costco opened its first Australian outlet in Melbourne in 2009 amid much media hype about the deep discounts on a
wide range of products. Costco's business model requires consumers to become members with a subscription fee of $60
before they are entitled to make purchases from the store. Costco would best be described as a ________.

A) combination store
B) factory outlet
C) discount store
D) superstore
E) warehouse club
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Reflective Thinking

112) Officeworks carries a deep assortment of goods for the home office or small business. Product lines include office
stationery, office equipment, computer software and hardware, and office furniture—as well as services including copying
and printing. Officeworks would be best described as a ________.

A) category killer
B) factory outlet
C) discount store
D) superstore
E) warehouse club
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Reflective Thinking

113) Consumers who value such factors as location, ease of access and non-traditional store hours more than large
assortments and lower prices are likely to purchase in ________.

A) convenience stores
B) shopping stores
C) department stores
D) hypermarkets
E) discount stores
Diff: 3
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Reflective Thinking

114) Some retail stores are designed to allow customers to easily locate merchandise which they pay for at centrally-located
checkouts before loading the goods into their own cars. This approach to retailing is best described as ________.

A) self-service retailing
B) no-service retailing
C) limited-service retailing
D) full-service retailing
E) None of the above.
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

115) Retailers who typically offer some sales assistance and information as well as credit and merchandise return services
to support the sale of the shopping goods they carry are known as ________.

A) full-service
B) low-service
C) limited-service
D) self-service
E) no service
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

116) Specialty stores and first-class department stores are most likely to employ a ________ approach.

A) self-service
B) full-service
C) low-service
D) limited-service
E) None of the above.
Diff: 3
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

117) A store that carries a narrow product line with a deep assortment within that line is called a ________.

A) specialty store
B) department store
C) convenience store
D) self-service store
E) discount store
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

118) Stores that offer a wide variety of product lines organised according to type of product are known as ________.

A) department stores
B) convenience stores
C) specialty stores
D) discount stores
E) None of the above.
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

119) Of the following, the store that is best described as a large, low-cost, low-margin, high-volume, self-service retailer is
the ________.

A) convenience store
B) specialty store
C) supermarket
D) factory outlet store
E) discount store
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

120) An amateur jogger goes to the Adidas warehouse to find athletic shoes and clothing at lower prices than that charged
by department stores and sports stores. The room within the factory complex carries leftover merchandise, overruns,
samples and irregulars. This is an example of a ________.

A) combination store
B) factory outlet
C) discount store
D) superstore
E) warehouse club
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Reflective Thinking

121) Independent retailers who join together to form their own wholesaling operation and conduct joint merchandising
and promotional activities are called a ________.

A) wholesaler cooperative
B) voluntary chain
C) purchasing cooperative
D) retailer cooperative
E) hyperchain
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

122) Two or more outlets that are commonly owned and controlled, employ central buying and merchandising, and sell
similar lines of merchandise are known as ________.

A) chain stores
B) retail cooperatives
C) franchises
D) retail banner groups
E) retail conglomerates
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

123) A feature of David Jones is the availability of fashion by high profile Australian designers. Some of labels carried by
David Jones include Thurley, Bianca Spender, Camilla & Marc, Collette by Collette Dinnigan and Willow. None of these
designer labels are carried by any other department store or fashion retail outlet. For David Jones, this is an example of
________.

A) national brands
B) selective brands
C) exclusive merchandise
D) repositioning
E) competitive blocking
Diff: 3
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Reflective Thinking

124) Many new types of retailing forms began as low-margin, low-price, low-status operations according to the concept
called ________.

A) the wheel of retailing

B) retailing cycle
C) cyclical retailing
D) retail evolutionary cycle
E) retail life-cycle
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

125) The most common type of agent wholesaler is ________.

A) limited service wholesaler

B) merchant wholesaler
C) broker
D) manufacturers' agent
E) subcontracted salesforce
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

126) ________ do not take title to goods and perform only a few functions. Their main function is to facilitate buying and
selling, for which they are paid a commission.

A) Agents and brokers

B) Industrial distributors
C) Rack jobbers
D) Producer's cooperatives
E) Commission merchants
Diff: 1
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

127) ________ are expected to bring buyers and sellers together and are paid by the party hiring them. They do not carry
inventory, get involved in financing or assume risk.

A) Brokers
B) Agents
C) Rack jobbers
D) Producer's cooperatives
E) Commission merchants
Diff: 1
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

128) A shopping centre is a group of retail businesses planned, developed, owned and managed as a unit.

A) True
B) False
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

129) The retailing sector suffers from chronic overcapacity, resulting in fierce competition for customer dollars.
A) True
B) False
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

130) In Australia, strip shopping centres, usually built along arterial roads and other high traffic routes, have been a major
component in the retail distribution spectrum.

A) True
B) False
Diff: 1
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
131) All activities involved in selling goods or services directly to final consumers for their personal, non-business use is
known as ________.
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

132) A(n) ________ is a contractual association between a manufacturer, wholesaler or service organisation and
independent business people who buy the right to own and operate one or more business units.
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

133) _________ must first define their target markets and then decide how they will position themselves in those markets.
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

134) Retailers must decide on three main product variables: product assortment, ________ ________ and ________ ________.
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

135) Unlike other forms of shopping centre, ________ ________ ________ are not centrally owned or managed.
Diff: 2
Learning Obj.: 10.3 Discuss retailing, retailers' marketing decisions and the different ways of classifying stores, and describe retailing
trends and developments. pp. 316-328
AACSB: Communication

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
136) Which of the following functions is NOT likely to be performed by a wholesaler?

A) gathering market information

B) buying and assortment building
C) bulk breaking
D) risk bearing
E) selling goods or services to final consumers
Diff: 2
Learning Obj.: 10.4 Compare and contrast the different types of wholesalers and their marketing decisions, and discuss wholesaling
trends. pp. 328-332
AACSB: Communication

137) The largest single group of wholesalers, accounting for roughly 50 per cent of all wholesaling, are the ________.

A) limited service wholesalers

B) merchant wholesalers
C) brokers
D) manufacturers' agents
E) None of the above.
Diff: 2
Learning Obj.: 10.4 Compare and contrast the different types of wholesalers and their marketing decisions, and discuss wholesaling
trends. pp. 328-332
AACSB: Communication

138) Wholesalers who have a limited line of fast-moving goods, sell to small retailers for cash and normally do not deliver
are known as ________.

A) cash-and-carry wholesalers
B) truck wholesalers
C) drop shoppers
D) rack jobbers
E) None of the above.
Diff: 2
Learning Obj.: 10.4 Compare and contrast the different types of wholesalers and their marketing decisions, and discuss wholesaling
trends. pp. 328-332
AACSB: Communication

139) Wholesalers that are owned by farmer-members who assemble farm products to sell in local markets are known as
________.

A) producers' cooperatives
B) truck wholesalers
C) produce wholesalers
D) cash-and-carry cooperatives
E) None of the above.
Diff: 3
Learning Obj.: 10.4 Compare and contrast the different types of wholesalers and their marketing decisions, and discuss wholesaling
trends. pp. 328-332
AACSB: Communication

140) Which of the following products would be most likely handled by a drop shipper?

A) fresh-cut orchids
B) plastic beverage sets
C) snack cakes
D) timber
E) laptop computers
Diff: 1
Learning Obj.: 10.4 Compare and contrast the different types of wholesalers and their marketing decisions, and discuss wholesaling
trends. pp. 328-332
AACSB: Communication

141) Wholesalers fall into three main groups. Which of the following is largest of those groups?

A) merchant wholesalers
B) agents and brokers
C) producers' co-operatives
D) manufacturers' sales branches and offices
E) full-line sales contractors
Diff: 1
Learning Obj.: 10.4 Compare and contrast the different types of wholesalers and their marketing decisions, and discuss wholesaling
trends. pp. 328-332
AACSB: Communication

142) The wholesaler who represents two or more manufacturers of related lines is called a ________.

A) broker
B) manufacturer's agent
C) commission agent
D) selling agent
E) contractor
Diff: 1
Learning Obj.: 10.4 Compare and contrast the different types of wholesalers and their marketing decisions, and discuss wholesaling
trends. pp. 328-332
AACSB: Communication

143) The wholesaler who contracts to sell a producer's entire output with no territory limits is called a ________.

A) broker
B) manufacturer's agent
C) commission agent
D) selling agent
E) contractor
Diff: 1
Learning Obj.: 10.4 Compare and contrast the different types of wholesalers and their marketing decisions, and discuss wholesaling
trends. pp. 328-332
AACSB: Communication

144) Wholesalers today are increasing the number of lines they carry, choosing to carry a wider assortment in an effort to
attract a broader mix of customers.

A) True
B) False
Diff: 2
Learning Obj.: 10.4 Compare and contrast the different types of wholesalers and their marketing decisions, and discuss wholesaling
trends. pp. 328-332
AACSB: Communication

145) Wholesalers today must define their target markets and position themselves effectively.

A) True
B) False
Diff: 2
Learning Obj.: 10.4 Compare and contrast the different types of wholesalers and their marketing decisions, and discuss wholesaling
trends. pp. 328-332
AACSB: Communication

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
146) ________ includes all activities involved in selling goods and service to those buying for resale or business use.
Diff: 1
Learning Obj.: 10.4 Compare and contrast the different types of wholesalers and their marketing decisions, and discuss wholesaling
trends. pp. 328-332
AACSB: Communication

147) Wholesalers fall into three main groups—merchant wholesalers, brokers and ________, and manufacturers' sales
branches and offices.
Diff: 3
Learning Obj.: 10.4 Compare and contrast the different types of wholesalers and their marketing decisions, and discuss wholesaling
trends. pp. 328-332
AACSB: Communication

148) A(n) ________ brings buyers and sellers together and assists in negotiations.
Diff: 1
Learning Obj.: 10.4 Compare and contrast the different types of wholesalers and their marketing decisions, and discuss wholesaling
trends. pp. 328-332
AACSB: Communication
1) E
2) E
3) A
4) E
5) C
6) E
7) B
8) A
9) D
10) C
11) E
12) A
13) A
14) A
15) B
16) A
17) A
18) B
19) A
20) B
21) A
22) A
23) logistics
24) time; total cost
25) targeted
26) move
27) just-in-time (JIT)
28) Railroads
29) one
30) perishables
31) internet
32) continuous inventory replenishment
33) Suggested Answer: Intermediaries reduce the amount of work that must be done by both producers and consumers.
They transform the assortment of products made by producers into the assortment wanted by consumers. They buy large
quantities from many producers and break them down into the smaller quantities and broader assortments wanted by
consumers. Intermediaries help to match supply and demand. Channel members add value by bridging the major time,
place and possession gaps that separate goods and services from those who would use them.
34) A
35) A
36) E
37) C
38) C
39) A
40) D
41) B
42) D
43) B
44) B
45) B
46) A
47) B
48) A
49) E
50) A
51) D
52) A
53) B
54) B
55) B
56) C
57) E
58) C
59) B
60) B
61) A
62) A
63) B
64) B
65) E
66) B
67) C
68) B
69) E
70) B
71) A
72) B
73) B
74) B
75) C
76) B
77) A
78) C
79) B
80) B
81) A
82) A
83) A
84) A
85) A
86) B
87) B
88) A
89) A
90) A
91) A
92) A
93) A
94) A
95) efficiency
96) intermediaries
97) channel
98) value
99) conflict
100) Horizontal
101) Vertical
102) vertical
103) corporate
104) horizontal
105) Suggested Answer: A conventional distribution channel consists of one or more independent producers, wholesalers
and retailers. Each is a separate business seeking to maximise its own profits, even at the expense of the system as a whole.
No channel member has much control over the other members, and no formal means exists for assigning roles and
resolving channel conflict. On the other hand, a vertical marketing system is a unified system made up of producers,
wholesalers, and retailers. While members of a conventional distribution channel seek to maximise their own profits,
members of a vertical marketing system all cooperate because either one member owns the others, one has contracts with
the others or one wields more power than the others.
106) Suggested Answer: Multichannel distribution systems exist when a single firm sets up two or more marketing
channels to reach one or more customer segments. Such a system offers advantages to firms facing large and complex
markets. It allows the firms to expand sales and market coverage. It allows firms to tailor their products and services to the
specific needs of diverse customer segments. Larger bottom-line profits may occur.
107) Suggested Answer: Today's customers have become used to the speed and convenience of online environments and
use it to control the buying process. Retailers are beginning to understand this and are using retail technology to connect
with consumers.
Many retailers now routinely use technologies ranging from touch-screen kiosks, handheld shopping assistants,
customer-loyalty cards and self-scanning checkout systems.
These technologies provide consumers with a range of benefits from increased information about stocks, prices, etc.
(via kiosks), through to speed and efficiency (self-scanning checkouts) and improved relationships (via loyalty systems).
108) C
109) C
110) D
111) E
112) A
113) A
114) A
115) C
116) B
117) A
118) A
119) C
120) B
121) B
122) A
123) C
124) A
125) D
126) A
127) A
128) A
129) A
130) A
131) retailing
132) franchise
133) Retailers
134) services mix; store atmosphere
135) strip shopping centres
136) E
137) B
138) A
139) A
140) D
141) A
142) B
143) D
144) B
145) A
146) Wholesaling
147) agents
148) broker
Another random document with
no related content on Scribd:
empanelling of juries composed exclusively of sympathizers
with the territorial class, that the liberty of the Press in
Ireland has been assailed, and influential organs of opinion
prosecuted in the endeavour to silence public comment on this
iniquitous system; that grievous and vindictive fines have
been exacted from districts obnoxious to the landlord interest
by means of charges for extra police quartered upon peaceful
populations, and that the people of Ireland have been
subjected to divers others the like cruel oppressions and
provocations; and humbly to represent to your Majesty that, it
being of the highest constitutional import to encourage the
Irish people to seek the redress of their grievances by the
fullest freedom of speech and of combination which is
warranted by the example of the trade unions of Great Britain,
this House is of opinion that the attacks at present directed
by the Executive against the rights of free speech and of
combination in Ireland should cease, and that the legislation
protecting the trade unions in the exercise of their rights of
combination against capital and non-union labour should be
extended to all agricultural combinations of a similar
character in that country."

In his speech supporting the amendment Mr. O'Brien charged

that, "there being no real crime in Ireland, the Executive
there had made crime of perfectly legitimate actions, treating
the people as if the object was to goad them into conspiracy
and violence. The record of the league was virtually a
crimeless one, it had carried on its work now for three years
without any of those blood-curdling incidents which coercion
Ministers used to smack their lips over in that House. … The
league, which had been tested by time and had proved its power
at the general election, had started and carried on in Ireland
an irresistible agitation for the suppression, for the
abolition of landlordism, and had elicited in the King's first
Speech a promise, such as it was, of another land Bill,
although two years ago that House was assured that there was
no longer an Irish land question."
 An extensive combination, he said, was going on in Ireland
against the taking of evicted farms, and "what form of trade
unionism could be more legitimate?" But charges of
intimidation and conspiracy; he claimed, were trumped up, and
juries were packed, for the suppression of this movement,
though it went no farther than trades unions in England could
go with no interference. "The Irish people exercised the right
of combination in the United Irish League, and they would
continue to exercise it whether the Government liked it or
not, in order to obtain the land on conditions that would give
its cultivators a living wage. In the ranks of the
organization were 500,000 farmers and labourers, representing
with their families three-fourths of the population of
Ireland. Their object was to parcel out the vast grazing lands
lying derelict among the cottagers who were starving on their
verge. A department of the Government was actually engaged in
carrying out the programme of the league, but at such a
snail's pace that it would take centuries to make any
impression upon the mass of misery which existed in the
country."

After several hours of debate the amendment to

the Address was rejected by 203 votes against 109.

----------IRELAND: End--------

IRON, Combinations in the production of.

See (in this volume)

TRUSTS: UNITED STATES.

IRON GATES OF THE DANUBE, Opening of the.

See (in this volume)

AUSTRIA-HUNGARY: A. D. 1896.
ISLE DU DIABLE.

See (in this volume)

FRANCE: A. D. 1897-1899.

ISRAEL, The People of:

Discovery of the sole mention of them in Egyptian inscriptions.

See (in this volume)

ARCHÆOLOGICAL RESEARCH: EGYPT: RESULTS.

ISTHMIAN CANAL, The.

See (in this volume)

CANAL, INTEROCEANIC.

ISTHMIAN RAILWAY, The Tehuantepec.

See (in this volume)

MEXICO: A. D. 1898-1900.

ITAGAKI, Count: Leader of the Japanese Liberal party.

See (in this volume)

JAPAN: A. D. 1890-1898.

{273}

----------ITALY: Start--------

ITALY: Recent archæological explorations.

See (in this volume)

ARCHÆOLOGICAL RESEARCH: ITALY.

ITALY: A. D. 1895-1896.
Accusations against the Crispi Ministry.
Fresh offense to the Vatican.
Disastrous war with Abyssinia.
Fall of Crispi.

In elections to the Italian Chamber of Deputies, which took

place in May, 1895, the government, under Signor Crispi, was
accused of audacious practices, striking the names of opposed
electors from the voting lists, to the number, it is said, of
several hundreds of thousands, and contriving otherwise to
paralyze the opposition to itself. The result of the elections
was the return of 336 government candidates, against 98 of
other parties. An attempt to obtain an official return of all
the deputies who were receiving pay from the State, directly
or indirectly, was skilfully baffled by Signor Crispi, and
remained a matter of rumor and guess. In September, the
government gave fresh offense to the Vatican by an imposing
celebration of the 25th anniversary of the entry of the
Italian troops into Rome, with a display of the flag of
free-masonry. Hostility of France and Russia to Italy was made
acute "by the renewal, on the return of Lord Salisbury to
office in 1895, of an agreement between England, Austria and
Italy for common action in the Eastern question, originally
made in 1887. In virtue of this agreement Italy sent her fleet
to the Aegean to support Great Britain at the opening of the
Armenian question [see, in this volume, TURKEY: A. D. 1895,
and after], and the consequence was that France and Russia put
pressure on Abyssinia to renew hostilities against Italy. This
new campaign Crispi was ill-prepared to meet, as he had
detailed a corps d'armée for an expedition to Asia Minor in
conjunction with the naval preparations, and the strength of
the forces under arms did not enable the minister of war to
detach another corps to Erythrea. To complete the difficulties
of the position, a coolness arose between the Emperor of
Germany and the government of Crispi, the latter having
notified the German government that he should at the proper
time denounce the Treaty of the Triple Alliance with the
object of providing better security for Italian interests in
Africa. The Emperor in reply advised the King of Italy that
Crispi was becoming importunate and must be got rid of. This
defection probably determined the fall of Crispi. It gave such
strength to the opposition at home, that the intrigues of the
Court and military circles succeeded in paralyzing all his
military plans, and especially in preventing him from
superseding Baratieri, now recognized as incompetent for the
enlarged operations which were in view. The King refused to
consent to the suppression until it became imperative through
the increase of the force to a point at which a superior
officer was necessitated by the regulations, when Baldissera
was appointed to the superior command. But before Baldissera
could enter on his command, Baratieri, against the distinct
orders of the government, attacked with a force of 14,000 men
the impregnable positions near Adowah which Menelek held with
80,000. He was met by the most crushing defeat that Italy has
had to undergo in modern times. Out of the total force no less
than 6,000 perished.

"The history of this affair still remains more or less a

secret, the court-martial which followed being rather
calculated to bury than expose the facts of the case, but the
immediate effect was to induce the ministry to resign without
waiting for the assembling of parliament. The magnitude of the
disaster made it evident that, considering the Italian
temperament and its tendency to panic, the responsibility for
it would be visited on the ministry, though it was only
responsible in so far as it had submitted to the Royal
decision deferring the recall of Baratieri. The King,
unwilling to accept the programme of Rudini, gave the
formation of the new ministry to General Ricotti, a Senator,
Rudini taking the portfolio of home affairs (March, 1896). …
The scheme of army reorganization proposed by Ricotti, which
aimed at improving the efficiency of the force by devoting
money rather to the instruction of the rank and file than to
the maintenance of superfluous officers, was opposed, … the
law was defeated in the chamber, and Ricotti gave place to
 Rudini as President of the Council. The rejection of Ricotti's
plan was a triumph for the Franco-Russian party, which had
re-assumed the direction of foreign affairs. Africa, under
this policy, being excluded from the Italian sphere of action,
peace was made with Menelek [October 26, 1896] on terms which
practically implied withdrawal from Erythrea to the port of
Massowah. This measure satisfied the exigencies of the old
Right, while the Radicals were conciliated by the exclusion
and proscription of Crispi and by the understanding with
France, as well as by the reversal of the repressive policy
towards the extreme members of their party. Thus the year 1897
saw Italy reduced to inertia abroad and apathy within."

W. J. Stillman,
The Union of Italy,
chapter 15
(Cambridge: University Press).

The peace made with King Menelek in 1896 ended the Italian
claim to a protectorate over Abyssinia, which seems never to
have had any basis of right. It started from a treaty
negotiated in 1889, known as the Treaty of Uchali, which
purported to be no more than an ordinary settlement of
friendly relations, commercial and political. But the
convention contained a clause which is said to have read in
the Amharic (the court and official language of Abyssinia),
"the King of Abyssinia may make use of the government of the
King of Italy in all matters whereon he may have to treat with
other governments." In the Italian version of the treaty, the
innocent permissive phrase, "may make use," became, it is
said, an obligatory "agrees to make use," &c., and was so
communicated to foreign governments, furnishing grounds for a
claim of "protection" which the Abyssinians rejected
indignantly. Hence the wars which proved disastrous to Italy.

ITALY: A. D. 1897.
Dissolution of the Chamber.
 Election of Deputies.
Reconstruction of the Ministry.

Early in the year a royal decree dissolved the Chamber of

Deputies, and elections held in March gave the Rudini Ministry
a large majority. The Catholic party refrained almost entirely
from voting. But divisions arose in the course of the year
which brought about a reconstruction of the Cabinet in
December, Signor Rudini still being at the head. An important
event of the year was the resolution of the Italian government
to evacuate Kassala, on the Abyssinian frontier, directly
eastward from Khartum. The Italians had taken it from the
Mahdists in 1894. It now became part of the Anglo-Egyptian
territory.

{274}

ITALY: A. D. 1898.
Arbitration Treaty with Argentine Republic.

See (in this volume)

ARGENTINE REPUBLIC: A. D. 1898.

ITALY: A. D. 1898 (March-June).

Report on charges against Signor Crispi.
His resignation from Parliament and re-election.
Change of Ministry.

In March, a special commission, appointed the previous

December, to investigate certain serious charges against the
ex-Premier, Signor Crispi, reported his culpability, but that
nothing in his conduct could be brought for trial before the
High Court. The charges were connected with a scandalous
wrecking of several banks, at Rome, Naples, and elsewhere,
which had occurred during Signor Crispi's administration, and
which was found to be due to political extortions practiced on
those institutions by members and agents of the government.
 Personally, it did not appear that the ex-Premier had profited
by what was done; but his wife seemed to have been a large
recipient of gain, and moneys wrung from the banks had been
used for party political purposes and for the government
secret service fund. On the report made by the commission
Signor Crispi resigned his seat in Parliament, and was
promptly re-elected from Palermo by an overwhelming majority.
In May, the Ministry of the Marquis di Rudini, much weakened
by the troubled state of the country, was reconstructed, but
only to hold its ground for another month. On the 17th of
June, upon a threatened vote of want of confidence, it
resigned, and, on the 28th, a new Liberal Ministry took
office, with General Pelloux at its head.

ITALY: A. D. 1898 (April-May).

Bread riots in the south and
revolutionary outbreaks in the north.

"May 1898 will be remembered for a long time in Italy, and one
may wish that the eventful month may mark the turning-point in
political life of the new kingdom. The revolt was general, the
explosion broke out almost suddenly, but long was the period
of preparation. 'Malcontento' is quite a household word in
Italy—and the Italians had more than one reason to be
dissatisfied with their national government. The rise in the
price of bread, as a consequence of the Hispano-American war,
was the immediate, but by no means the only, cause of the
uprising which darkened the skies of sunny Italy for several
days. The enormous taxation imposed upon a people yet young in
its national life, in order to carry out a policy far too big for
the financial means of the country; the failure in the attempt
to establish a strong colony in the Red Sea; the economic war
with France; the scanty help Italy received from her allies in
time of need; the political corruption, unchecked when not
encouraged by those who stood at the helm of the State; the
impotence of the Chambers of Deputies to deal with the
evil-doers as the claims of justice and the voice of the
people required, all these evils have prepared a propitious
ground for the agitators both of the radical and reactionary
parties.

"The Bread Riots began towards the end of April, and in a few
days they assumed a very alarming aspect, especially in the
small towns of the Neapolitan provinces, inhabited by people
ordinarily pacific and law-abiding. The destruction of
property was wanton and wide-spread, women careless of their
lives leading the men to the assault. In many cases the riots
soon came to an end; in others the immediate abolition of the
'octroi' did not produce the desired effect. … There was no
organization in the Neapolitan provinces; the riots were
absolutely independent of one another, but they were
originated by the same cause—misery; they aimed at the same
object—a loud protest by means of devastation; they all ended
in the same way—viz., after two or three days the soldiers
restored order, the dead were buried, and the ringleaders
taken to prison to be dealt with by the military court. In the
north, at Milan, the uprising was of quite a different
character. In the south of Italy it was truly a question of
bread and bread alone. In Central Italy it was a question of
work, in Lombardy a truly revolutionary movement. The
Neapolitan mob shouted for bread and bread alone, some asking
for cheaper bread, some others for 'free bread.' In Tuscany
the cry was, 'Pane o Lavoro!' (bread or work). In Lombardy
quite another trumpet was sounded: 'Down with the Government!
Down with the Dynasty!'

"The Milanese, of all the people of Italy, have plenty of work

and bread, and it is admitted by all that bread had nothing to
do with the revolt of Milan. I have studied this movement from
its inception, and my conclusion is that the revolt broke out
long before it was expected, thus making the discomfiture more
certain. The great majority of the population of Milan was,
and is, conservative and loyal to the King, although not
pleased with the doings of the Government. Only a minority,
but a very noisy and active minority, is against monarchical
institutions. For some time past the revolutionary party of
Milan have made no mystery of their political aspirations
towards the establishment of a Milanese republic, to be called
'Republica Ambrogiana.' … Milan is also the headquarters of
Socialism and Anarchism. Socialists and Republicans once upon
a time were implacable foes. Many a battle they fought one
against the other; but since 1886 the two have come to love
each other more, or to hate each other less, whichever it may
be; and towards the end of 1895 they entered into partnership
against their common enemy—Crispi! Then the Anarchists came
in. Decent Republicans and timid Socialists were rather averse
to ally themselves with anarchy; the very name was loathsome
to them. However, this natural mistrust soon disappeared, and
the Anarchists were welcomed into the dual alliance. Still
another element was to enter—the clerical party. … The
clericals have not a special cry of their own. They satisfied
themselves by rubbing their hands and saying: 'Down it goes at
last.' Little they knew that not the dynasty, not united Italy
was then going down, but society itself. … A friend of mine,
who was in the midst of the revolt, assures me that its
importance has been very much exaggerated in the first reports
sent abroad; and from the official documents, since published,
it appears that about 90 barricades were erected, and some 20
houses ransacked to provide the necessary material to build
them. The number of the killed amounted to 72, and that of the
seriously wounded to 63. On Monday evening [May 9] order was
restored in Milan. … On Wednesday morning shops and factories
were reopened, but it will take years to undo the mischief
done on May 7, 8, and 9, 1898. All are sadder now; one may
hope that they will be wiser also. The agitators, the deluded,
the masses, the governing classes, the Government, all have
had their lesson."

G. D. Vecchia,
The Revolt in Italy
(Contemporary Review, July, 1898).
{275}

ITALY: A. D. 1899 (May-July).

Representation in the Peace Conference at The Hague.

See (in this volume)

PEACE CONFERENCE.

ITALY: A. D. 1899-1900.
Parliamentary disorder, leading to arbitrary government.
Assassination of King Humbert.

Much feeling was excited in Italy by the agreement between

Great Britain and France which practically awarded most of the
Sahara Hinterland of Tripoli (a possession long hoped for and
expected by the Italians), as well as that of Tunis, Algiers,
and Morocco, to France (see, in this volume, NIGERIA). The
government was accused of want of vigor in opposing this, and
was held responsible, at the same time, for the humiliating
failure of an attempt to secure a share of spoils in China, by
lease of Sammun Bay. The resignation of the Ministry was
consequent, early in May; but the King retained General
Pelloux at the head of the government, and new associates in
his cabinet were found. The Chamber of Deputies became
unmanageable; obstruction, very much in the Austrian manner,
was carried to such an extent that Parliament was prorogued.
The King then, by royal decree, conferred extraordinary powers
on the Ministry, suspending, at the same time, rights of meeting
and association, to suppress political agitation, and taking,
in fact, a serious backward step, toward government outside of
constitutional law. Liberals of all shades, and, apparently, many
constitutional Conservatives, were alarmed and outraged by
this threatening measure, and, when Parliament was reconvened,
the proceedings of obstruction were renewed with more persistency
than before. The government then attempted an arbitrary
adoption of rules to prevent obstruction; whereupon (April 3,
 1900) the entire Opposition left the House in a body. The
situation at length became such that the King adjourned the
Parliament sine die, on the 16th of May, and a new Chamber of
Deputies was elected on the 3d of the month following. The
Opposition was considerably strengthened in the election, and
the Ministry of General Pelloux, finding itself more helpless
in Parliament than ever, resigned on the 18th of June. A new
Cabinet under Signor Saracco was formed.

On the 29th of July, 1900, King Humbert was assassinated by an

Italian anarchist, named Angelo Bresci, who went to Italy for
the purpose, from Paterson, New Jersey, in the United States,
where he had latterly been living. The King was at Monza, and
had been distributing prizes at a gymnasium. At the close of
the ceremony, as he entered his carriage, the assassin fired
three shots at him, inflicting wounds from which the King died
within an hour. The murderer was seized on the spot, tried and
convicted of the crime. He received the severest penalty that
Italian law could inflict, which was imprisonment for life.
The son who succeeds King Humbert, Victor Emmanuel III., was
in his thirty-first year when thus tragically raised to the
throne. He is weak in body, but is reputed to have an
excellent mind. He was wedded in 1896 to Princess Helene of
Montenegro.

ITALY: A. D. 1900.
Military and naval expenditure.

See (in this volume)

WAR BUDGETS.

ITALY: A. D. 1900.
Naval strength.

See (in this volume)

NAVIES OF THE SEA POWERS.
ITALY: A. D. 1900 (January).
Adhesion to the arrangement of an "open door" commercial
policy in China.

See (in this volume)

CHINA: A. D. 1899-1900 (SEPTEMBER-FEBRUARY).

ITALY: A. D. 1900 (January).

Exposure of the Mafia.

Circumstances came to light in the course of the year 1899

which compelled the government to enter upon an investigation
of the doings of the Sicilian secret society known as the
Mafia. This resulted in the arrest of a number of persons,
including a Sicilian member of the Chamber of Deputies, named
Palizzolo, charged with complicity in the murder, seven years
before, of the Marquis Notarbartolo, manager of the Bank of
Sicily at Palermo. The accused were brought to Milan for
trial, which took place in January, 1900, and the disclosures
then Made showed that Sicily had long been terrorized and
tyrannized, in all departments of affairs, by a few men who
controlled this murderous secret organization, Palizzolo
being, apparently, the head of the fiendish crew. One of the
ministers in the Italian government, General Mirri, Secretary
of War, was found to have had, at least, some scandalous
understandings with the Mafia, and he was forced to resign.

ITALY: A. D. 1900 (January-March).

The outbreak of the "Boxers" in northern China.

See (in this volume)

CHINA: A. D. 1900 (JANUARY-MARCH).

ITALY: A. D. 1900 (June-December).

Co-operation with the Powers in China.

See (in this volume)

 CHINA.

ITALY: A. D. 1900 (July-September).

An Italian view of the state of the country.

"Appearances, it is well known, are often deceptive, and the

present condition of Italy is a case in point. Discontent is
not a new thing for the Italian mind to be agitated by, but
there is an enormous difference between being discontented
with the Government of the day and being dissatisfied with the
national institutions. Italians have a quick perception and
are extremely impulsive; they often act suddenly and on the
impression of the moment, but they are also apt to fall into a
state of lethargy, during which the will of the nation is very
weak, both as a stimulus to good government and as repressive
of that which is bad. There are, however, times in which this
will asserts itself. Italy is just passing through one of
these lucid intervals.

"The assassination of King Humbert seems to have awakened the

whole nation from a long sleep. Those who thought there was no
affection left for monarchical institutions in Italy must have
experienced a very depressing disappointment. For forty-eight
hours there was no king at all in Italy. King Humbert was dead
and his successor was somewhere on the high seas, but nobody knew
exactly where, yet not a single disorderly movement was
noticed anywhere. Clericals, Socialists, Republicans, the
three declared enemies of the monarchy, entirely disappeared
from the scene during the crisis.
{276}
If anyone of these parties, which during the last period of
national lethargy had grown more audacious and bolder, had
only attempted to assert itself, the Italian public 'en masse'
would have revolted against it, and performed one of those
acts of summary justice of which the history of Italy
furnishes abundant examples. I think this absence of disorder
of any kind is the most convincing proof that can be adduced
 in favour of the present state of things in Italy. Surely, if
the people had been nursing in their hearts a general revolt,
that was the moment for action.

"Of course a few anarchists here and there have rejoiced over
the crime of their comrade; however, I venture to assert that
it is not quite correct to call Italy the hotbed of anarchy.
It is true that many of the most fierce anarchists are Italian
by birth; but anarchism did not originate in Italy, it was
imported there. France and Russia had—under another
name—anarchists long before the name of any Italian was ever
connected with anarchism. … Political education is still in
Italy of very poor quality—truthfully speaking, there is none.
Even the anarchists go elsewhere to perfect their education.
The assassins of Carnot, of the Empress Elizabeth, and of
Canovas, had their political education perfected in Paris or
in London. Italy does not export political murderers, as was
very unkindly said on the occasion of the assassination of the
Empress of Austria. Italy at the worst exports only the rough
material for the making of anarchical murderers. Even the
assassin of King Humbert belongs to this category. He left
Italy with no homicidal mania in him. He was not then a wild
beast with a human face, to make use of an expression uttered
by Signor Saracco, the Premier of Italy. The anarchist clubs
of Paris, London, and New York were his university colleges."

G. D. Vecchia,
The Situation in Italy
(Nineteenth Century Review, September, 1900).

ITALY: A. D. 1901.
Fall of the Saracco Ministry.
Formation of a Liberal Cabinet under Signor Zanardelli.
Census of the kingdom.

The Saracco Ministry, which took direction of the government

in June, 1900, was defeated on the 6th of February, 1901, and
compelled to resign. An extraordinarily heavy vote (318 to
102) was cast against it in condemnation of its conduct in
matters relating to a "Chamber of Labor" at Genoa. First, it
had ordered the dissolution of that body, as being subversive
in influence, and then, when a "strike" occurred in Genoa, as
the consequence, it receded from its action and reconstituted
the Chamber. By the first proceeding it had disgusted the
Conservatives; by the second the Radicals, and by its
indecision the Moderates. They combined to overthrow it. With
some difficulty a new Cabinet was formed containing Liberals
of various shades, with Signor Zanardelli, a veteran
republican of the Garibaldi generation, at its head. A writer
who has frequently discussed foreign politics with a good deal
of knowledge in the columns of the "New York Tribune," over
the signature "Ex-Attache," believes that Zanardelli is
committed "to anti-clerical legislation of the most drastic
and far reaching character," and "may be depended upon to
proceed against the Vatican with a vigor unprecedented in the
annals of united Italy. And there will be," he thinks, "no
attempt on the part of Victor Emmanuel to hold him in leash.
Existing laws will be enforced to the utmost against the
Papacy, while new measures may be looked for to restrict
further the activity of the Church as a factor in political
life, to extend the control of the government over all
ecclesiastical enterprises and undertakings and to emphasize
the fact that all Italians, no matter whether they form part
of the Papal Court or not, are Italian citizens, as well as
subjects of the Italian crown, and required to obey the laws
and to fulfil their obligations as such."

A Press despatch from Rome, in February, announced that "the

result of the first Italian census in 20 years has proved a
surprise. It shows that the population is 35,000,000, while it
was not expected that it would exceed 31,000,000. The ratio of
increase is greater than in any other European country. This
is ascribed to improved sanitation. The birthrate continues
high. It is estimated that 5,000,000 Italians have gone to the
 United States and South America."

----------ITALY: End--------

ITO, Marquis:
Administration and political experiments.

See (in this volume)

JAPAN: A. D. 1890-1898; 1898-1899;
and 1900 (AUGUST-OCTOBER).

J.

JACKSON-HARMSWORTH EXPEDITION, Return of the.

See (in this volume)

POLAR EXPEDITION, 1897.

JAMAICA: A. D. 1898.
Industrial condition.

See (in this volume)

WEST INDIES, THE BRITISH: A. D. 1897.

JAMAICA: A. D. 1899.
Financial crisis and conflict between
the Governor and the Legislative Assembly.

A crisis in the financial circumstances of the Colony,

consequent on expenditures exceeding revenue for several
years, was reached in 1899, and led to a serious conflict of
views between the Governor and the Legislative Assembly. The
latter is constituted of members partly elected and partly
appointed by the Governor. The elected members of the Assembly
had been in the majority, hitherto, but the Governor possessed
authority to add to the nominated membership, and he exercised
that authority, as a means of obtaining action on a tariff
 bill which he held to be a necessary measure. He did so under
instructions from the British Colonial Secretary. Before this
occurred, an agent of the Colonial Office, Sir David Barbour,
had been sent to Jamaica to report on the financial situation.
His report, submitted in June, besides recommending financial
remedies, contained some references to the political
constitution of the colony—among them these:

{277}

"The peculiar constitution of the Government had … an

influence in bringing about, or aggravating the present
financial difficulties: When it was apparent that either more
revenue must be raised or expenditure must be reduced, the
Government was in favour of increasing taxation, while the
elected members of the Legislative Council pressed for
reductions of expenditure. From the nature of the
Constitution, the Government was practically unable to carry
proposals for increased taxation in opposition to the votes of
nine elected members, while the elected members could not in
any satisfactory manner enforce reduction of expenditure. The
present state of things shows that both increase of taxation
and reduction of expenditure were necessary, but though there
has been much friction in recent years, and great loss of time
in the Legislative Council, neither increase of taxation nor
reduction of expenditure was effected in any degree at all
adequate to avert the difficulties which were approaching. …
The Home Government are, in the last resort, responsible for
the financial condition of Jamaica, while, under ordinary
circumstances, the Colonial Office exercises at present no
real direct and immediate control over the finances. … It may
be taken for granted that under any circumstances Her
Majesty's Government would be unwilling to see the Colony sink
into a condition of insolvency without an effort for its
relief, and as the ultimate responsibility must, therefore,
rest on Her Majesty's Government it would seem better to
exercise the power of control, while it is still possible to
apply a remedy, rather than to wait until the mischief can
only be redressed at the cost of the British taxpayer. On the
other hand, as no real responsibility can be enforced on the
Elected Members, it seems necessary to give the Governor some
practicable means of enforcing his policy, and I would suggest
that this might be done by keeping the number of nominated
Members at its full strength so that in case of need the
Governor would only have to make the necessary declaration,
and would not have to go through the preliminary operation of
adding to the number of nominated Members."

On the 22d of August, the report of Sir David Barbour was

reviewed at length by the Colonial Secretary, Mr. Chamberlain,
in a despatch to Governor Hemming, and the above
recommendations were substantially approved and made
instructions to the Governor. "Two plain facts in connection
with this matter," said the Colonial Secretary, "must force
themselves upon the attention of all who study the question,
still more of all who are called upon to find a solution of
it. The first is, that 'the Home Government,' in Sir David
Barbour's words, 'are in the last resort responsible for the
financial condition of Jamaica.' The second is that as a
'working compromise,' the existing system has failed. It is a
compromise, but it has not worked. I am not now so much
concerned with principle as with practice. As a machine for
doing the work which has to be done the present system has
failed. It is in fact impossible, except where tact and
goodwill and friendly feeling exist in an unusual degree, for
the government of a country to be carried on when those who
are responsible for it are in a permanent minority in the
Legislature. I decline to allow the Jamaica Government to
remain in that position any longer, not merely because it is
unfair to them, but also because, recognizing the ultimate
responsibility of Her Majesty's Government for the solvency of
the Colony, I must ensure that the measures which they may
consider necessary are carried out. I must instruct you,
therefore, before the Legislative Council is again summoned,
 to fill up the full number of nominated members and to retain
them, using at your discretion the power given you by the
Constitution to declare measures to be of paramount
importance. You will give the Council and the public to
understand that this step is taken by my express instructions.
It is my hope that the Elected Members will recognise that my
decision is based on public grounds, and has become
inevitable, that they will loyally accept it, and co-operate
with me and with you for the good of the Colony."

Great Britain,
Parliamentary Publications
(Papers by Command:
Jamaica, 1899 [C.-9412] and 1900 [Cd.-125]).

----------JAMESON, Dr. Leander S.: Start--------

JAMESON, Dr. Leander S.:

Administrator of Rhodesia.

See (in this volume)

SOUTH AFRICA (BRITISH SOUTH AFRICA COMPANY):
A. D. 1894-1895.

JAMESON, Dr. Leander S.:

Raid into the Transvaal.
Surrender.
Trial in England.
Imprisonment.

See (in this volume)

SOUTH AFRICA (THE TRANSVAAL): A. D. 1895-1896.

JAMESON, Dr. Leander S.:

The German Emperor's message to President Kruger
concerning the Jameson Raid.