Deck 11: Marketing Channels and Supply Chain Management

Question 1

What is the movement of products through more than one marketing channel to reach the same market called?

A) multiple selling
B) dual distribution
C) distribution redundancy
D) reverse distribution

Answer 1

B

Question 2

Who are marketing intermediaries?

A) middlemen that operate between producers and consumers or business users
B) management consulting firms that advise producers on distribution strategy
C) "personal shoppers" who are paid to purchase products for busy customers and businesses
D) financial institutions that arrange financing terms for business purchases

Answer 2

A

Question 3

What is an organized system of marketing institutions and relationships called that promotes the physical flow and ownership of goods and services from producer to consumer or business user?

A) an intermediary institution
B) a marketing fulfillment organization
C) retail marketing
D) a marketing channel

Answer 3

D

Question 4

Which marketplace generally has the longest distribution channels?

A) business-to-business
B) consumer
C) not-for-profit
D) service firms

Question 5

Which of the following products would NOT be sold through a short channel?

A) a deck of cards
B) custom-made computer system
C) dairy products
D) a candy bar in a vending machine

Question 6

In which of the following decision areas does physical distribution NOT extend beyond transportation?

A) inventory control
B) material handling
C) risk analysis
D) protective packaging

Question 7

Which of the following is an example of direct selling to the consumer market?

A) a purchase of hair-care products from a beauty salon
B) a car purchase from a Honda dealer
C) a SONY television purchase at Best Buy
D) a party plan selling jewellery

Question 8

Which of the following variables does NOT affect the selection of a channel strategy?

A) product characteristics
B) the size of the producer and competitive environment
C) legal and liability issues
D) market factors

Question 9

How does the traditional marketing channel proceed?

A) from producer to business user
B) from producer to wholesaler to retailer to consumer
C) from producer to agent to business user
D) from producer to agent to wholesaler to retailer to customer

Question 10

Which of the following is one factor that would ordinarily result in a longer marketing channel?

A) a high level of geographic concentration of customers
B) a product with a low level of technical complexity
C) the manufacturer's desire to control the channel
D) the product's need for specialized knowledge, technical information, and regular service

Question 11

What are the two critical components of a distribution strategy?

A) marketing channels and logistics and supply chain management
B) physical distribution and relationship marketing
C) location and cost
D) warehousing and transportation

Question 12

What results from business customers being more geographically concentrated and fewer in number than individual consumers?

A) shorter business channels compared to consumer goods channels
B) moving products effectively through wholesale and retail markets simultaneously
C) reduction in price from producer to user
D) more middlemen and unique channel structures than consumer channels

Question 13

When is direct selling MOST common?

A) during raw material purchases in the B2B marketplace
B) during purchases between retailers and consumers
C) during product purchases that do not require installation
D) during product purchases that require little demonstration

Question 14

Cynthia, a marketing director for a chemical company, is looking for an independent intermediary that will take title to the goods.Who is Cynthia looking for?

A) an extended channel member
B) an industrial distributor
C) a direct seller
D) a reverse channel seller

Question 15

What is the term industrial distributor essentially synonymous with?

A) franchiser
B) middle user
C) wholesaler
D) retailer

Question 16

In the context of marketing channels, who do business purchasers usually prefer to buy from?

A) manufacturers
B) retailers
C) wholesalers
D) agents

Question 17

Why do marketing channels play a key role in marketing strategy?

A) because they provide criteria for promotional expenditures
B) because they provide the means by which products move from producer to ultimate user
C) because they allow more participants to contribute to the economy
D) because they extend the amount of time it takes between the between producer and consumer

Question 18

In addition to traditional drug stores, Dr.Scholl's foot care company has decided to market through home medical care supply centres and telemarketing to podiatrists.What is this an example of?

A) reverse marketing channels
B) home marketing
C) scrambled merchandising
D) dual distribution

Question 19

Small producers in the industrial market may attempt to market their offerings to large wholesalers by utilizing agents.What are these agents called?

A) industrial distributors
B) manufacturers' representatives
C) direct marketers
D) auction companies

Question 20

How does direct selling as a marketing channel carry goods?

A) directly from producer to retail storage warehouse
B) directly from producer to channel captain
C) directly from producer to intermediary that will take title and possession
D) directly from producer to ultimate consumer or business purchaser

Question 21

Who is primarily responsible for achieving cooperation that resolves conflict among marketing channel members?

A) the manufacturer
B) the channel captain
C) the channel power broker
D) the wholesaler

Question 22

What type of channel conflict is between two or more wholesalers or two or more retailers?

A) competitive
B) vertical
C) horizontal
D) cross-channel

Question 23

What would occur between KitchenAid and retailers if KitchenAid established an electronic storefront where customers could purchase mixers and accessories from the company's website?

A) vertical channel conflicts
B) horizontal channel conflicts
C) exclusive dealing agreements
D) tying agreements

Question 24

What type of distribution is the process of using every channel available to bring a product to market?

A) exclusive
B) specialized
C) selective
D) intensive

Question 25

What does distribution intensity refer to?

A) tying agreements held with intermediaries
B) the amount of monthly cooperative advertising that a producer contracts with a number of retailers
C) the number of intermediaries through which a producer distributes goods in a particular market
D) the concentration of wholesalers carrying competing products in a given geography

Question 26

What is a planned marketing channel system called that is designed to improve distribution efficiency and cost-effectiveness through functional integration?

A) an intensive marketing system
B) a horizontal marketing system
C) an exclusive marketing system
D) a vertical marketing system

Question 27

What occurs when a selective distribution strategy is chosen by a firm?

A) The firm seeks to distribute its products through all available channels in its trade areas.
B) A single wholesaler or retailer in an area is granted exclusive rights to sell its line.
C) Only a limited number of retailers in a market area can handle its line.
D) The number of product outlets available to the consumer is unlimited.

Question 28

What is a major difference between an administered vertical marketing system and a contractual system?

A) Administered marketing systems are larger than contractual systems.
B) Administered systems depend on channel captains, whereas contractual systems depend on formal agreements.
C) Administered systems usually have common names and similar inventories, whereas contractual systems may include non-competing members.
D) Contractual systems depend on effective working relationships built up over the years, whereas administered systems depend upon finite control.

Question 29

Lakeview Industries contracts with Marine Motor Distributors to carry its newly patented outboard engine.In exchange for exclusive dealership rights, Marine Motor has agreed to carry the full line of nautical clothing accessories offered by Lakeview.What can this agreement best be described as?

A) a distributor contract
B) a tying agreement
C) a channel selection
D) an exclusive dealing agreement

Question 30

Who are marketing intermediaries very beneficial to?

A) producers with wide product lines
B) a small producer trying to sell to large customers
C) suppliers with a small and concentrated market of customers
D) well-financed national manufacturers

Question 31

While exclusive distribution is legal for companies first entering a market, what does such an agreement violate if used by firms with a sizable market share seeking to bar competitors from the market?

A) a distributor contract
B) a tying agreement
C) the Competition Act
D) a vertical territory restriction

Question 32

Who is the dominant and controlling member of a marketing channel?

A) the vertical lead
B) the producer
C) the channel captain
D) the wholesaler that sells to the retailer

Question 33

What type of marketing channel conflict can result when identically branded products are carried in competing retail pharmacies, discount houses, department stores, convenience stores, and mail-order houses?

A) coercive
B) vertical
C) competitive
D) horizontal

Question 34

What type of distribution has a limited number of marketing intermediaries in a geographic region?

A) selective
B) intensive
C) limited
D) exclusive

Question 35

What are goods called when they are manufactured abroad under license from a Canadian manufacturer, and then sold in the Canadian market in competition with Canadian-produced goods from the Canadian manufacturer?

A) black market goods
B) inferior goods
C) grey goods
D) horizontal goods

Question 36

Sherwin-Williams Paint Company sells the paint it manufactures through its company-owned retail paint stores.What type of marketing system is the company's marketing channel?

A) corporate
B) horizontal
C) administered
D) contractual

Question 37

What is a common characteristic of a channel when the unit price of the product is low?

A) The product will be sold direct.
B) The channel is short..
C) The channel length will not be affected.
D) The channel is long.

Question 38

What must a wholesaler do to grow profitably in a competitive environment?

A) cut costs in every possible area
B) make as many tying agreements as possible
C) move into exclusive distribution of a majority of product lines that are to be carried
D) provide better service at a lower cost than manufacturers or retailers can do themselves

Question 39

When can an intermediary be eliminated from a marketing channel?

A) when another intermediary or a new system replaces it
B) when the elimination is demanded by a retailer
C) when there is mutual consent between manufacturer and wholesaler
D) when the consumer prefers to buy wholesale

Question 40

What is the difference between a retail cooperative and a wholesale-sponsored voluntary chain?

A) The wholesaler buys ownership shares of the retail operations.
B) The cooperative has private label brands.
C) The retailers purchase ownership shares of the cooperative.
D) The wholesaler-sponsored voluntary chain has contractual agreements.

Question 41

What is an improved or supplemental service called that is added to the supply chain to provide enhanced benefits, but is NOT expected by the customer?

A) value-added service
B) demarketing
C) cost-plus products
D) optimization

Question 42

Which of the following is an example of a customer service standard?

A) "We provide credit for good accounts; all others must pay cash."
B) "Our purpose is to minimize time utility."
C) "We will deliver orders within four days or less."
D) "We maintain large inventories to ship dated goods."

Question 43

Which of the following are NOT physical distribution elements?

A) customer service and order processing
B) inventory control and materials handling
C) raw material procurement and operations management
D) transportation and warehousing

Question 44

What are customer-service standards?

A) definitions of acceptable performance for service quality
B) the result of effective service cost trade-offs
C) functional service areas that require changes in strategy
D) tied directly to service suboptimization requirements

Question 45

What is the rate given by carriers to shippers as a reward either for regular use or for large-quantity shipments called?

A) flat rate
B) class rate
C) contract rate
D) commodity rate

Question 46

The outsourcing of distribution functions as a way of cutting costs is becoming more common for Canadian and foreign companies.What are the outsourcing specialists who contract to handle distribution called?

A) outsourcing alliances
B) intermodal distributors
C) third-party logistics firms
D) supply chain coordinators

Question 47

A home-furnishings distributor needs to ship products to another warehouse 500 kilometres away.The company vans are needed for local deliveries, so the warehouse must call an outside carrier to ship the products.What type of freight carrier will the company MOST likely call?

A) private carrier
B) common carrier
C) contract carrier
D) intermodal freight company

Question 48

Management at Granger Industries is evaluating the company's distribution system to determine if cost-cutting measures will impact performance.Ralph, an employee with experience in annual cost-cutting negotiations, suggests the company consider synergies between elements of the distribution system instead of judging each activity on its own merits.What is Ralph trying to avoid with the cuts?

A) angering loyal customers
B) suboptimization
C) losing the company's comparative advantage
D) ignoring the customer-service standards

Question 49

The manager of each physical distribution function attempts to minimize costs.However, due to the impact of one physical distribution task on the other, he/she obtains less than optimal results.What is this condition called?

A) slow order processing
B) suboptimization
C) inventory fluctuations
D) a poor customer service standard

Question 50

What is an organized group of components linked according to a plan for achieving specific distribution objectives called?

A) a physical distribution system
B) a nonphysical system
C) a product promotion system
D) a physical promotion system

Question 51

What is the MOST efficient form of transportation for coal, grains, nonmetallic minerals, and lumber products?

A) air cargo
B) motor freight
C) railroads
D) water carriers

Question 52

What is the sequence of suppliers and activities that contributes to creating and delivering merchandise called?

A) a supply chain
B) a distribution contract
C) a logistics channel
D) a retail cooperative

Question 53

What is technology that uses a tiny chip with identification information that can be read by a scanner from a distance called?

A) Radio frequency identification
B) Universal Product Code
C) enterprise resource technology
D) logistics technology

Question 54

What does the supply chain begin with?

A) the finished good rolling off the end of the production line
B) firms seeking new markets for their products
C) the product being loaded aboard the rail car for shipment
D) the raw material inputs for the manufacturing process of a product

Question 55

Pennzoil products are shipped to the Canadian Tire warehouse regularly.Assuming Pennzoil ships three truckloads biweekly, it is in a position to negotiate rates with a trucking company.What is the discounted rate called?

A) insider rate
B) customer rate
C) class rate
D) contract rate

Question 56

What is managing warehouse and storage facilities a part of?

A) downstream supply chain management
B) backward integration
C) forward integration
D) upstream supply chain management

Question 57

Which of the following is a characteristic of private carriers?

A) They are also called institutional carriers.
B) They observe strict rate and service regulations.
C) They are regional carriers.
D) They do not offer services for hire.

Question 58

What type of carrier is the "backbone of the transportation industry"?

A) private carrier
B) common carrier
C) institutional carrier
D) bulk carrier

Question 59

What is the standard rate that carriers charge for transporting specific goods from point A to point B called?

A) contract rate
B) special rate
C) class rate
D) insider rate

Question 60

Which of the following is a characteristic of common carriers moving freight?

A) move if freight is non-hazardous
B) move by limited-rate contract
C) move for private contracts
D) move by all modes of transport

Question 61

What is the highest cost mode of transportation?

A) overnight common carrier
B) air freight
C) non-stop rail express
D) high-pressure pipeline

Question 62

What type of train bypasses intermediate terminals to speed up schedules and may carry a variety of commodities?

A) a containerized train
B) a unit train
C) an intermodal train
D) a run-through train

Question 63

Which of the following is a cost that influences where a warehouse should be located?

A) delivery cost
B) computer systems cost
C) product rotation cost
D) value cost of raw material content

Question 64

What is the form of transportation that has the lowest transport cost per tonne?

A) railroad
B) water freight
C) air freight
D) pipeline

Question 65

Relative to the size of a warehouse operation, when do facilities and materials-handling costs on a per-unit basis decrease?

A) when volume decreases
B) when volume increases
C) when volume stays the same
D) when volume has ongoing fluctuations

Question 66

What is the air freight industry currently facing?

A) overnight delivery service growth that has leveled off
B) unprecedented growth in market share of freight hauling
C) competition from foreign air carriers
D) deregulation

Question 67

What is the MOST effective means of transporting products such as natural gas and crude oil?

A) by water carrier
B) by piggyback
C) by pipeline
D) by bulk motor carrier

Question 68

What is the shipping activity of a 1000-tonne shipment that has moved 1000 kilometres?

A) 10 000 tonne-kilometres
B) 100 000 tonne-kilometres
C) 1 000 000 tonne-kilometres
D) 2 000 000 tonne-kilometres

Question 69

What form of transportation is in control of the largest share of the freight business as measured in tonne-kilometres?

A) Air carriers
B) Railroads
C) Water carriers
D) Motor carriers

Question 70

Which of the following is the MOST accurate statement concerning pipelines?

A) They are regulated by common carrier rates.
B) They are ranked third in number of tonne-kilometres transported.
C) They are a relatively fast means of shipping due to their 24-hour availability.
D) They are dependable but a high-maintenance carrier.

Question 71

What are the three forms of intermodal coordination?

A) piggyback, fishyback, and birdyback
B) port, sea, and air
C) carrier, inland, and express
D) rail, truck, and boat

Question 72

What percentage of all consumer goods is transported by the trucking industry?

A) 25 percent
B) 50 percent
C) 75 percent
D) 90 percent

Question 73

What type of train runs back and forth between a single loading point and a single destination to deliver one commodity?

A) a containerized train
B) a piggyback train
C) an intermodal train
D) a unit train

Question 74

Which of the following is an advantage of pipeline transport?

A) accommodation of only select products
B) limited and specialized transport locations
C) low maintenance
D) careful and slow speed of transport

Question 75

What are bulky, low-unit-value commodities efficiently transported by?

A) run-through trains
B) double-stack container trains
C) barge lines
D) motor carriers

Question 76

Why does the trucking industry receive higher revenues per tonne shipped?

A) The trucking industry charges more.
B) Government regulation limits the fees that the railways can charge.
C) Trucking concentrates on shipping manufactured products.
D) Truck drivers haul smaller loads.

Question 77

What is the form of intermodal coordination in which motor carriers deliver shipments to air carriers that transport them between airports and then turn them over to motor carriers for local delivery?

A) air-land now
B) air-cargo express
C) migration shipping
D) birdyback

Question 78

Tractor trailers of products ride stacked on barges along a river.When they reach shore, they will be attached to truck cabs and driven to warehouses hundreds of kilometres away.What is the first type of intermodal hauling called?

A) birdyback service
B) piggyback service
C) fishyback service
D) double-stack service

Question 79

What is the major difference between a storage warehouse and a distribution warehouse?

A) Storage warehouses attempt to balance supply and demand.
B) A distribution warehouse is used for products with seasonal supply or demand.
C) Storage warehouses hold goods for short periods of time.
D) Distribution warehouses store products for moderate to long periods of time.

Question 80

What does the term tonne-kilometre refer to?

A) moving one cubic metre of freight one kilometre
B) moving one tonne longer than 100 kilometres
C) moving one tonne of freight one kilometre
D) moving a full load one kilometre