Question 1

Finished goods stored as a buffer against future demand or warehoused in between production and intermediaries is termed:

Accepted Answer

A)  containers. 
B)  inventory. 
C)  cargo. 
D)  pallets. 
E)  none of the above 
A)  containers. 
B)  inventory. 
C)  cargo. 
D)  pallets. 
E)  none of the above B

Question 2

Taupo Manufacturing Inc. has opted for direct distribution even though it knows that it would be cheaper to use intermediaries. Identify as many possible reasons as you can to support this decision.

Accepted Answer

It may be that no intermediaries were capable of providing the specialised services required by the firm's product, or intermediaries that could provide the necessary support may already have been taken by competitive firms. In some cases, appropriate intermediaries may be available, and the manufacturer may still opt for direct distribution for non- economic reasons. Sellers may choose direct distribution to obtain the greatest amount of control over the way in which its product is sold. Direct distribution allows the seller to control selling price, to assure that product image is not damaged by using it as a price or loss leader. Freshness can be assured under direct distribution. The seller can assure that local promotion is consistent in tone and quality with what is done at the national level. If such concerns are strong enough, the seller may willingly pay higher distribution costs.

Question 3

Phillipa's Bakery has earned a reputation for its hand- made breads and pastries. To protect the "artisan" image that her products have developed, Phillipa does not want to sell her products in multinational supermarkets. Instead, she sells direct through her four bakery outlets in Melbourne and suburbs. In addition, Phillipa sells her breads and pastries via carefully chosen farmer's markets and a few small, independent supermarkets. Phillipa's distribution strategy is BEST described as which of the following?

Accepted Answer

A)  exclusive 
B)  mass 
C)  concentrated 
D)  intensive 
E)  selective 
A)  exclusive 
B)  mass 
C)  concentrated 
D)  intensive 
E)  selective A

Question 4

The term hybrid marketing channel networks would describe a situation where a tyre manufacturer sells directly to an auto manufacturer, sells through mass merchandisers to the replacement market, and bids for government purchases.

Accepted Answer

A) True 
 B)False

Question 5

Marketing channel members perform a number of functions. Which of the following is NOT one of the functions outlined in your text?

Accepted Answer

A)  Risk reduction 
B)  Risk taking 
C)  Negotiation 
D)  Information 
E)  All of the above are channel member functions. 
A)  Risk reduction 
B)  Risk taking 
C)  Negotiation 
D)  Information 
E)  All of the above are channel member functions.

Question 6

Modern Homes sells a range of home improvement products such as blinds, curtains and solar panels. Modern deals directly with the consumer through its web- site and 1800 numbers advertised on television. Modern Homes' distribution system consist of how many levels?

Accepted Answer

A)  one level 
B)  two levels 
C)  zero levels 
D)  three levels 
E)  None of the above-it is not appropriate to use channel levels in direct distribution. 
A)  one level 
B)  two levels 
C)  zero levels 
D)  three levels 
E)  None of the above-it is not appropriate to use channel levels in direct distribution.

Question 7

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

Accepted Answer

A)  complexity 
B)  length 
C)  depth 
D)  involvement 
E)  width 
A)  complexity 
B)  length 
C)  depth 
D)  involvement 
E)  width

Question 8

One of the following is NOT a key function that intermediaries play in completing transactions. Choose it.

Accepted Answer

A)  information 
B)  financing 
C)  promotion 
D)  negotiation 
E)  pricing 
A)  information 
B)  financing 
C)  promotion 
D)  negotiation 
E)  pricing

Question 9

Piaget Watches has a restrictive policy of only establishing one or two dealers within a given large geographic area. Buyers of this type of expensive Swiss watch will travel to acquire the product, so this_________ form of distribution is appropriate for the product.

Accepted Answer

A)  selective 
B)  intensive 
C)  intermediary 
D)  exclusive 
E)  dual 
A)  selective 
B)  intensive 
C)  intermediary 
D)  exclusive 
E)  dual

Question 10

A retailer cooperative is a vertical marketing system.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is NOT one of the types of franchise?

Accepted Answer

A)  wholesaler- sponsored franchise network 
B)  manufacturer- sponsored retailer franchise network 
C)  service- firm- sponsored franchise network 
D)  manufacturer- sponsored wholesaler franchise network 
A)  wholesaler- sponsored franchise network 
B)  manufacturer- sponsored retailer franchise network 
C)  service- firm- sponsored franchise network 
D)  manufacturer- sponsored wholesaler franchise network

Question 12

Franchise operations, such as Kwik Copy Printing, Domino's Pizza, and Hertz Car Rentals, are examples of:

Accepted Answer

A)  contractual VMNs. 
B)  conventional marketing systems. 
C)  horizontal marketing systems. 
D)  administered VMNs. 
E)  corporate VMNs. 
A)  contractual VMNs. 
B)  conventional marketing systems. 
C)  horizontal marketing systems. 
D)  administered VMNs. 
E)  corporate VMNs.

Question 13

Containerisation consists of putting goods in boxes or trailers that are easy to transfer between two transportation modes.

Accepted Answer

A) True 
 B)False

Question 14

For which of the following would a manufacturer be most likely to use selective distribution?

Accepted Answer

A)  designer baby clothes 
B)  milk 
C)  cat food 
D)  plastic measuring spoons 
E)  $10 bird feeders 
A)  designer baby clothes 
B)  milk 
C)  cat food 
D)  plastic measuring spoons 
E)  $10 bird feeders

Question 15

The process of moving broken, unwanted, excess or products returned by customers to resellers or distributors is known as:

Accepted Answer

A)  outbound distribution. 
B)  inverse distribution. 
C)  reverse distribution. 
D)  inbound distribution. 
E)  none of the above 
A)  outbound distribution. 
B)  inverse distribution. 
C)  reverse distribution. 
D)  inbound distribution. 
E)  none of the above

Question 16

The primary rationale for the use of intermediaries is their superior efficiency in making goods widely available and accessible to target markets.

Accepted Answer

A) True 
 B)False

Question 17

Remo Corporation is experiencing conflicts between the various levels which compose its channel of distribution. This is called:

Accepted Answer

A)  functional conflict. 
B)  vertical conflict. 
C)  intermediary conflict. 
D)  member conflict. 
E)  horizontal conflict. 
A)  functional conflict. 
B)  vertical conflict. 
C)  intermediary conflict. 
D)  member conflict. 
E)  horizontal conflict.

Question 18

The first step in designing a marketing channel is analysing consumer needs for service outputs.

Accepted Answer

A) True 
 B)False

Question 19

By definition, a(n) _________centre receives goods from various company plants and suppliers and moves them out as soon as possible.

Accepted Answer

A)  field 
B)  distribution 
C)  storage 
D)  common 
E)  automated 
A)  field 
B)  distribution 
C)  storage 
D)  common 
E)  automated

Question 20

Producers benefit from using intermediaries because they:

Accepted Answer

A)  are generally backlogged with orders. 
B)  refuse to store products for longer than a couple of days. 
C)  operate less expensively. 
D)  save a lot of work. 
E)  offer greater efficiency in making goods available to target markets. 
A)  are generally backlogged with orders. 
B)  refuse to store products for longer than a couple of days. 
C)  operate less expensively. 
D)  save a lot of work. 
E)  offer greater efficiency in making goods available to target markets.

Finished goods stored as a buffer against future demand or warehoused in between production and intermediaries is termed:

Taupo Manufacturing Inc. has opted for direct distribution even though it knows that it would be cheaper to use intermediaries. Identify as many possible reasons as you can to support this decision.

The term hybrid marketing channel networks would describe a situation where a tyre manufacturer sells directly to an auto manufacturer, sells through mass merchandisers to the replacement market, and bids for government purchases.

Marketing channel members perform a number of functions. Which of the following is NOT one of the functions outlined in your text?

Modern Homes sells a range of home improvement products such as blinds, curtains and solar panels. Modern deals directly with the consumer through its web- site and 1800 numbers advertised on television. Modern Homes' distribution system consist of how many levels?

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

One of the following is NOT a key function that intermediaries play in completing transactions. Choose it.

Piaget Watches has a restrictive policy of only establishing one or two dealers within a given large geographic area. Buyers of this type of expensive Swiss watch will travel to acquire the product, so this_________ form of distribution is appropriate for the product.

A retailer cooperative is a vertical marketing system.

Which of the following is NOT one of the types of franchise?

Franchise operations, such as Kwik Copy Printing, Domino's Pizza, and Hertz Car Rentals, are examples of:

Containerisation consists of putting goods in boxes or trailers that are easy to transfer between two transportation modes.

For which of the following would a manufacturer be most likely to use selective distribution?

The process of moving broken, unwanted, excess or products returned by customers to resellers or distributors is known as:

The primary rationale for the use of intermediaries is their superior efficiency in making goods widely available and accessible to target markets.

Remo Corporation is experiencing conflicts between the various levels which compose its channel of distribution. This is called:

The first step in designing a marketing channel is analysing consumer needs for service outputs.

By definition, a(n) _________centre receives goods from various company plants and suppliers and moves them out as soon as possible.

Producers benefit from using intermediaries because they:

Marketing: Creating Superior Customer Value

Marketing: Delivering and Capturing Value

Strategic Planning and Marketing

Marketing Strategies for Competitive Advantage

The Global Marketing Environment

Information Management and Marketing Research

Consumer Behaviour

Business-To-Business Behaviour

Market Segmentation, Targeting and Positioning

Products and Services Marketing

New Products

Pricing for Value

Retailing and Wholesaling

Advertising and Public Relations

Sales Promotion and Selling

Direct and Online Marketing

Tapping Into Markets Across the Globe

Responsible Marketing

Filters

Exam 13: Marketing Channels and Logistics Networks

Finished goods stored as a buffer against future demand or warehoused in between production and intermediaries is termed:

Taupo Manufacturing Inc. has opted for direct distribution even though it knows that it would be cheaper to use intermediaries. Identify as many possible reasons as you can to support this decision.

The term hybrid marketing channel networks would describe a situation where a tyre manufacturer sells directly to an auto manufacturer, sells through mass merchandisers to the replacement market, and bids for government purchases.

Marketing channel members perform a number of functions. Which of the following is NOT one of the functions outlined in your text?

Modern Homes sells a range of home improvement products such as blinds, curtains and solar panels. Modern deals directly with the consumer through its web- site and 1800 numbers advertised on television. Modern Homes' distribution system consist of how many levels?

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

One of the following is NOT a key function that intermediaries play in completing transactions. Choose it.

Piaget Watches has a restrictive policy of only establishing one or two dealers within a given large geographic area. Buyers of this type of expensive Swiss watch will travel to acquire the product, so this_________ form of distribution is appropriate for the product.

A retailer cooperative is a vertical marketing system.

Which of the following is NOT one of the types of franchise?

Franchise operations, such as Kwik Copy Printing, Domino's Pizza, and Hertz Car Rentals, are examples of:

Containerisation consists of putting goods in boxes or trailers that are easy to transfer between two transportation modes.

For which of the following would a manufacturer be most likely to use selective distribution?

The process of moving broken, unwanted, excess or products returned by customers to resellers or distributors is known as:

The primary rationale for the use of intermediaries is their superior efficiency in making goods widely available and accessible to target markets.

Remo Corporation is experiencing conflicts between the various levels which compose its channel of distribution. This is called:

The first step in designing a marketing channel is analysing consumer needs for service outputs.

By definition, a(n) _________centre receives goods from various company plants and suppliers and moves them out as soon as possible.

Producers benefit from using intermediaries because they:

Marketing: Creating Superior Customer Value

Marketing: Delivering and Capturing Value

Strategic Planning and Marketing

Marketing Strategies for Competitive Advantage

The Global Marketing Environment

Information Management and Marketing Research

Consumer Behaviour

Business-To-Business Behaviour

Market Segmentation, Targeting and Positioning

Products and Services Marketing

New Products

Pricing for Value

Retailing and Wholesaling

Advertising and Public Relations

Sales Promotion and Selling

Direct and Online Marketing

Tapping Into Markets Across the Globe

Responsible Marketing

Filters