Deck 12: Marketing Channels: Delivering Customer Value

Question 1

Which of the following is the best example of a direct channel?

A)Family Dollar Store sells modeling clay to school- age children.
B)A wholesaler sells candy to convenience stores,who then sell it to store patrons.
C)A farmer in Columbia sells flowers to an international broker,who makes sure the flowers reach consumers in the United States.
D)J&L Manufacturing Company sells drapery hardware to The Home Depot's Design Center,and the Design Center then sells it to consumers.
E)Farmer Mintz sells corn to the Hughes household,who will eat it for supper.

Answer 1

E

Question 2

Which of the following is an example of a complete business- to- business channel?

A)producer to retailer to consumer
B)business distributor to business customer
C)producer to wholesaler to retailer to consumer
D)producer to distributor to business customer
E)producer to sales branch

Answer 2

D

Question 3

Which of the following best states the goal of integrated supply chain management?

A)to stabilize costs
B)to ensure consistent services with minimal costs
C)to harmonize all of the company's logistics decisions
D)to eliminate conflict and increase cooperation among channel members
E)to increase services with minimal cost through teamwork

Answer 3

C

Question 4

Marketing logistics involves getting the right product to the right customer in the right place at the right time.Which one of the following is NOT included in this process?

A)implementing the plan for the flow of goods and services
B)planning the flow of logistics information to meet customer requirements at a profit
C)planning the physical flow of goods and services
D)gathering customer's ideas for new products
E)controlling the physical flow of goods,services,and information

Question 5

Marketing logistics involves which of the following distribution flows?

A)outbound,inbound,and reverse
B)outbound and reverse only
C)outbound and inbound only
D)inbound and reverse only
E)outbound only

Question 6

Which type of vertical marketing system (VMS)gives an organization more control over both production and resale of its products,while at the same time increasing the organization's capital investment and its fixed costs?

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

Question 7

Chewing gum is stocked in many outlets in the same market or community;in fact,it is placed in as many outlets as possible.This is an example of distribution.

A)exclusive
B)disintermediated
C)selective
D)intensive
E)multichannel

Question 8

the manufacturer or service provider is the set of firms that supply the raw materials,components,parts,information,finances,and expertise needed to create a product or service.

A)Disintermediated from
B)Downstream from
C)Horizontal to
D)Parallel with
E)Upstream from

Question 9

Most companies practice strong PRM to forge long- term relationships with channel members.What does PRM stand for?

A)partner relationship management
B)personnel roster maintenance
C)primary relationship management
D)perennial relationship management
E)potential relationship management

Question 10

When Netflix began delivering DVDs directly to customers through the mail instead of using a brick- and- mortar system,Netflix was following the trend of .

A)disintermediation
B)indirect marketing
C)exclusive distribution
D)selective distribution
E)a franchise system

Question 11

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)opportunities to tailor products and services to the needs of diverse segments
C)selling at a higher gross margin
D)expanded market coverage
E)A and C

Question 12

When establishing the responsibilities of channel members,the producer establishes a list price,sets discounts for intermediaries,and defines each channel member's .

A)mission
B)legal rights
C)customers
D)sales limits
E)territory

Question 13

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)administered VMS
B)conventional marketing channel
C)horizontal marketing system
D)multichannel distribution system
E)corporate VMS

Question 14

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

A)administered,independent,and franchised
B)contractual,corporate,and independent
C)contractual,corporate,and administered
D)corporate,contractual,and chain
E)contractual,corporate,and task

Question 15

Which of the following is NOT a key function that intermediaries play in helping to fulfill a completed transaction?

A)risk taking
B)storing goods
C)physical distribution
D)promotion
E)financing

Question 16

Intermediaries play an important role in matching .

A)manufacturer to product
B)dealer with customer
C)product to region
D)information and promotion
E)supply and demand

Question 17

An intensive distribution strategy is most suitable for which consumer product category?

A)shopping products
B)convenience products
C)supplies
D)unsought goods
E)luxury products

Question 18

In a ,two or more companies at one level join together to develop a new marketing opportunity.

A)franchise
B)horizontal marketing system
C)conventional distribution channel
D)multichannel distribution system
E)corporate VMS

Question 19

Most producers today sell their goods directly to _.

A)intermediaries
B)third- party logistics providers
C)final users
D)warehouses
E)final users and marketing members

Question 20

logistics controls the movement of products from points of production to consumers.

A)Reverse
B)Horizontal
C)Vertical
D)Inbound
E)Outbound

Question 21

Max Samuelson is a high- end fashion designer who markets his clothing lines through a limited number of highly reputable retailers.Max uses .

A)tying agreements
B)exclusive distribution
C)full- line forcing
D)exclusive territorial agreements
E)exclusive dealing

Question 22

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.

A)supply chain management
B)economic order quantity
C)reduction- inventory management
D)limited inventory logistics
E)just- in- time logistics

Question 23

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)higher taxes
D)fewer channel partners
E)fewer potential ideas

Question 24

Tiffany & Co jewelry can only be found in a limited number of intermediaries.This is an example of _ distribution.

A)exclusive
B)intensive
C)independent
D)quality
E)high- end

Question 25

All of the institutions in a channel are connected by flows,including physical flow,flow of ownership,payment flow,information flow,and flow.

A)return product
B)by- product
C)acquisition
D)promotion
E)customer

Question 26

A producer of a strong brand that agrees to sell its brand to a dealer only if the dealer will take some or all of the rest of the line is using .

A)exclusive distribution
B)exclusive dealing
C)a tying agreement
D)disintermediation
E)intensive distribution

Question 27

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

A)motels such as Holiday Inn and Ramada Inn
B)Ford and its network of independent franchised dealers
C)fast- food restaurants such as McDonald's and Burger King
D)licensed bottlers that bottle and sell Coca- Cola to retailers
E)Starbucks operating within Target stores

Question 28

Refer to the scenario below to answer the following questions.
Miller Meat Company contracts with several Midwestern farmers to raise beef and pork for its meat processing center.To guarantee freshness,Miller Meat Company relies on a vast distribution network.For delivery to local grocers in Indiana,Miller Meat uses its own fleet of refrigerated trucks;delivery to these Indiana grocers constitutes 65 percent of Miller Meat's business.For deliveries in Illinois,Wisconsin,and points directly west of the Mississippi River,Miller Meat Company contracts with a refrigerated fleet that specializes in expediting smaller shipments.For faster delivery during peak times,Miller Meat Company often uses its own trucks to deliver to the expedited fleet's consolidation point from its distribution warehouse in Indiana.During the holiday season,however,several specialty distributors contract with Miller Meat Company to package specialty meats in gift boxes,then ship them directly to the recipients.For these specialty shipments within Indiana,Illinois,and Wisconsin,Miller uses its normal delivery mode.For all other specialty shipments,Miller ships from its distribution warehouse via air,then contracts with expedited carriers in various cities to deliver to the recipients.
Which of the following is one of Miller Meat Company's upstream partners?

A)the refrigerated fleet that expedites small shipments
B)Midwestern farmers who raise beef and pork for the meat processing center
C)recipients of Miller's gift boxes
D)local grocers in Indiana who sell the company's products
E)air carriers that take Miller's specialty shipments

Question 29

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 corporate merger
B)the hostile takeover
C)the corporate marketing system
D)disintermediation
E)the vertical marketing system

Question 30

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)distributing relevant marketing research information
B)negotiating on its products' prices
C)assembling and packaging its products for final sale
D)identifying raw materials and other productive inputs
E)promoting its products through advertising

Question 31

Fresh Direct,an online grocer delivering to homes and offices in and around New York City,recently switched its entire fleet to biodiesel trucks.These trucks run on used cooking oil rather than gas,drastically reducing the company's carbon dioxide footprint.Fresh Direct has developed a(n).

A)green supply chain
B)indirect marketing channel
C)intermodal transportation system
D)exclusive dealing system
E)tying agreement

Question 32

A distinguishing feature of a contractual VMS is that coordination and conflict management among the independent members of the channel are attained through .

A)contractual agreements
B)limited liability incorporation
C)natural competitive forces
D)agents and brokers
E)unspoken partnerships

Question 33

The most common type of contractual relationship in business is the .

A)administered marketing system
B)corporate VMS
C)franchise organization
D)conventional marketing channel
E)horizontal marketing system

Question 34

China and India each contain more than one billion people.However,companies can access only a small percentage of these potential markets due to .

A)indifference toward Western products
B)inadequate distribution systems
C)insurmountable language barriers
D)the religious caste system
E)high regional taxes

Question 35

Which of the following modes of transportation would most likely be used to quickly haul lettuce from California where it was grown to markets in Nevada?

A)pipeline
B)piggyback
C)air
D)trucks
E)water

Question 36

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

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

Question 37

A channel consisting of one or more separate producers,wholesalers,or retailers that seek to maximize their own profits-even at the expense of profits for the channel as a whole-is a(n) .

A)independent channel allocation
B)administered vertical marketing system
C)conventional distribution channel
D)vertical marketing system
E)corporate VMS

Question 38

When McDonald's offers its products inside of a Walmart store,it is using a(n).

A)horizontal marketing system
B)conventional distribution channel
C)corporate VMS
D)administered VMS
E)contractual VMS

Question 39

In the proper order,identify the correct terms for these intermodal transportation combinations: rail and truck,water and truck,water and rail.

A)trainship;fishyback;piggyback
B)fishyback;airtruck;trainship
C)piggyback;fishyback;trainship
D)piggyback,fishyback;birdyback
E)piggyback;airtruck;fishyback

Question 40

When determining the number of channel members to use at each level,three strategies are available: intensive,exclusive,and distribution.

A)multichannel
B)extensive
C)direct
D)international
E)selective

Question 41

At minimum,a marketing channel consists of a producer and a(n).

A)agent
B)intermediary
C)customer
D)wholesaler
E)broker

Question 42

Another term for the supply chain that suggests a sense and respond view of the market is .

A)distribution channel
B)demand chain
C)channel of distribution
D)supply and demand chain
E)physical distribution

Question 43

A corporate VMS has the advantage of controlling the entire distribution chain through .

A)franchise agreements
B)a profit- maximizing strategic plan
C)contracts among separate members
D)single ownership
E)mass distribution

Question 44

Through the use of ,or "smart tag" technology,a company is able to locate a product's exact position within the supply chain.

A)IT
B)VMS
C)RFID
D)3PL
E)PRM

Question 45

The four major steps of designing a channel system are analyzing consumer needs,setting channel objectives,,and evaluating the alternatives.

A)seeking regulatory approval
B)measuring objectives
C)establishing a budget
D)identifying major channel alternatives
E)seeking legal advice

Question 46

Sometimes a seller requires its dealers to abstain from handling competitors' products in an arrangement called .

A)exclusive distribution
B)exclusive pricing
C)exclusive dealing
D)disintermediation
E)selective distribution

Question 47

Producers benefit from using intermediaries because they .

A)bring a fresh point of view to strategy development
B)refuse to store products for longer than a few days
C)offer greater efficiency in making goods available to target markets
D)eliminate risk
E)are generally backlogged with orders

Question 48

When suppliers,distributors,and customers partner with each other to improve the performance of the entire system,they are participating in a _ .

A)supply chain
B)conventional distribution channel
C)channel of distribution
D)value delivery network
E)demand chain

Question 49

Steve's Physco Skates sells its products to Walmart,who then sells them to the consumer.This is an example of a(n).

A)producer channel
B)direct marketing channel
C)indirect marketing channel
D)retailer channel
E)corporate vertical marketing system

Question 50

Grayville Rock and Gravel,located in a seaport town,sells rock,gravel,and sand to local markets.It has just been awarded a contract with a company 500 miles down the coast.Management should consider switching from truck to transport.

A)water
B)air
C)rail
D)pipeline
E)none of the above

Question 51

logistics concerns the methods consumers use to send products to a producer for return or repair.

A)Vertical
B)Outbound
C)Reverse
D)Inbound
E)Horizontal

Question 52

Why is it important for manufacturers to be sensitive to the needs of their dealers?

A)Dealer support is essential to creating value for the customer.
B)Manufacturers have few legal rights.
C)Manufacturers cannot break commitments to channel.
D)Dealers can easily be replaced by third- party logistics providers.
E)Dealers have few legal rights.

Question 53

UPS Supply Chain Solutions,which handles all of its clients' "grunt work" associated with logistics,is an example of .

A)selective distribution
B)a distribution center
C)a cross- functional,cross- company team
D)integrated logistics management
E)a third- party logistics provider

Question 54

The difference between distribution centers and storage warehouses is that distribution centers are designed to _.

A)be automated
B)move goods rather than just store them
C)primarily be owned by the manufacturer
D)store goods for longer periods
E)hold larger volumes

Question 55

The goal of marketing logistics should be to provide a level of customer service at the least cost.

A)targeted
B)minimum
C)noncompetitive
D)moderate
E)maximum

Question 56

Sometimes a producer chooses only a few dealers in a territory to distribute its products or services.Generally these dealers are given a right to distribution.

A)exclusive
B)administered
C)intensive
D)selective
E)corporate

Question 57

Which of the following is an example of horizontal channel conflict?

A)managers of two separate Holiday Inns disagreeing over what constitutes poor service
B)disgruntled factory workers complaining about a small pay raise
C)United Airlines competing with Northwest Airlines for customers
D)the BMW dealership in Fort Wayne complaining that the BMW dealership in Indianapolis is situated too close
E)A and D

Question 58

Which of the following innovations has created opportunities for significant gains in distribution efficiency?

A)Web- based logistics systems
B)tying agreements
C)storage warehouses
D)customer relationship management
E)contractual vertical marketing systems

Question 59

Using ,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.

A)an Intranet
B)continuous inventory replenishment systems
C)intensive distribution
D)dual distribution modes
E)integrated distribution

Question 60

Jewels for the Rich and Famous sells very exclusive jewelry 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)the Internet
D)truck
E)water

Question 61

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)Wholesaler;retailer
B)Horizontal;vertical
C)Corporate;franchise
D)Contractual;corporate
E)Vertical;horizontal

Question 62

Which of the following is NOT a typical supply chain member?

A)resellers
B)intermediaries
C)customers
D)government agencies
E)raw materials supplier

Question 63

When Home Depot allows key suppliers to use its stores as a testing ground for new merchandising programs,it is conducting a(n)_ .

A)cross- functional,cross- company team
B)third- party project
C)shared project
D)integrated logistics system
E)partnership management system

Question 64

Exclusive dealing is legal as long as it does not or tend to create a monopoly and as long as both parties enter into the agreement .

A)interfere with competitors;forcefully
B)substantially lessen competition;voluntarily
C)substantially lessen competition;coercively
D)create a smaller market;permanently
E)restrict trade;for a cause

Question 65

Caterpillar,the famous heavy equipment manufacturer,has a reputation for working in harmony with its worldwide distribution network of independent dealers.Caterpillar has shared its successes with its dealers and protected its dealers during difficult economic times.This is an example of _ _.

A)intensive distribution
B)PRM
C)integrated logistics management
D)disintermediation
E)3PL

Question 66

When two Taco Bell restaurants have a disagreement over who should be able to sell in quantity at a discount to the local high school band,they are in a conflict.

A)vertical
B)functional
C)logistics
D)horizontal
E)conventional channel

Question 67

Blockbuster offers DVD rentals through its Total Access online rental service and through its bricks- and- mortar stores.This is an example of a(n)_ .

A)administered VMS
B)contractual VMS
C)multichannel distribution system
D)conventional distribution channel
E)horizontal marketing system

Question 68

When a company compares the likely sales,costs,and profitability of different channel alternatives,it is using _ _ criteria to evaluate its channel options.

A)distribution
B)adaptive
C)selective
D)economic
E)control

Question 69

A manufacturer that uses a third- party logistics provider to fulfill all of its logistics need is using a(n).

A)direct marketing channel
B)horizontal marketing system
C)conventional distribution channel
D)franchise organization
E)corporate vertical marketing system

Question 70

Which of the following is NOT a key function that intermediaries play in completing transactions?

A)information
B)matching
C)promotion
D)risk taking
E)negotiation

Question 71

An advantage of a channel of distribution over selling direct to consumers is that each channel member plays a(n)in the channel.

A)informational role
B)time- saving part
C)specialized role
D)disciplinary role
E)decisional role

Question 72

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

A)products in their maturity stage
B)products in their decline stage
C)lower- priced products
D)high- priced products
E)perishable products

Question 73

Which of the following is NOT an area of responsibility for a logistics manager?

A)promotions
B)purchasing
C)warehousing
D)inventory
E)information systems

Question 74

Which of the following should be the first step in designing a marketing channel?

A)identifying what consumers want from the channel
B)evaluating intermediaries
C)identifying channel objectives
D)exploring international opportunities
E)analyzing channel alternatives

Question 75

To increase a channel's service level,the channel must provide a greater assortment of products,more add- on services,or .

A)faster delivery
B)lower prices
C)less follow- up
D)fewer middlemen
E)more competition

Question 76

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)multichannel system
B)vertical marketing system
C)complex behavioral system
D)added value chain
E)corporate marketing system

Question 77

A conventional distribution channel consists of one or more _ producers,wholesalers,and retailers.

A)independent
B)product- related
C)contract
D)merchant
E)estranged

Question 78

A company should think of its intermediaries as both its and _.

A)customers;partners
B)competitors;partners
C)competitors;marketers
D)customers;employees
E)competitors;customers

Question 79

It is most common for international marketers to their channel strategies for each country.

A)adapt
B)restrict
C)eliminate
D)extend
E)seek approval for

Question 80

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

A)Avon's door- to- door distribution
B)Walmart locating to several countries
C)a hotel providing guest privileges at a health spa across the street
D)JC Penney's catalog and retail store sales
E)Starbuck's location inside of book stores