Deck 15: Managing Marketing Channels and Supply Chains

Question 1

Marcos stops at the shopping mall to purchase a new pair of jeans from an H&M store. He is the ultimate consumer in a pipeline from the producer through intermediaries, including the clothing store. This pipeline is actually a

A) marketing tunnel.
B) consumer market.
C) marketing channel.
D) transactional conduit.
E) distribution matrix.

Answer 1

C

Question 2

Lara lives in a rural area but near the suburbs. She buys produce, eggs, and honey from her neighbors and on most weekends she runs a very popular stand at a busy farmer's market. In terms of the marketing channel, Lara's farmer's market booth would be considered the

A) ultimate consumer.
B) agent.
C) wholesaler.
D) retailer.
E) distributor.

Answer 2

D

Question 3

An imprecise term for intermediaries that perform a variety of functions, including selling, maintaining inventories, extending credit is

A) agents.
B) brokers.
C) retailers.
D) wholesalers.
E) distributors.

Answer 3

E

Question 4

A middleman is

A) a person or firm whose sole responsibility is bringing a buyer to the last link in the distribution chain.
B) a person or firm whose sole responsibility is to find distributors for a manufacturer's products.
C) any intermediary between a manufacturer and end-user markets.
D) a person or firm that takes possession of a product and in some way alters it before passing it on to ultimate consumers.
E) an intermediary that sells to ultimate consumers.

Question 5

Any intermediary with legal authority to act on behalf of the manufacturer but that does not take title to products is referred to as

A) a dealer.
B) an agent.
C) a retailer.
D) a wholesaler.
E) a distributor.

Question 6

Jaffar (Jeff) Tabrizi is the owner and president of Tabrizi Oriental Rugs located in Toronto, Canada. He personally shops the world over, handpicks, and orders authentic and beautiful handmade rugs. He has them shipped to Canada, where he sells them through his brick-and-mortar stores and his www.tabrizi.com website. In terms of the marketing channel, Tabrizi is acting as

A) a consumer.
B) an agent.
C) a wholesaler.
D) a brokerage firm.
E) a middleman.

Question 7

Establishments primarily engaged in selling grain and small farm products to retail feed stores would be classified as

A) retailers.
B) brokers.
C) ultimate consumers.
D) wholesalers.
E) agents.

Question 8

A wholesaler is

A) the independent firm or individual whose principal function is to bring buyers and sellers together.
B) any intermediary that takes ownership of a manufacturer's products or services and then finds multiple buyers for those products or services.
C) an intermediary that sells to other intermediaries, usually to retailers in consumer markets.
D) an intermediary that sells to consumers.
E) a manufacturing "matchmaker" that actively seeks out potential consumers and brings them to retailers.

Question 9

A retailer is

A) an intermediary that sells only to other intermediaries.
B) any intermediary between a manufacturer and industrial markets.
C) an intermediary that sells to other distributors.
D) an intermediary that takes possession of a product, alters it in some way, and then sells it to the ultimate consumer.
E) an intermediary that sells to consumers.

Question 10

Distributor is

A) an imprecise term for intermediaries that perform a variety of distribution functions, including selling, maintaining inventories, and extending credit.
B) the term for an intermediary that sells only to manufacturers.
C) the term for an intermediary that takes possession of a product, alters it in some way, and then sells it to the ultimate consumer.
D) the term for an intermediary that sells only to consumers.
E) the term for an intermediary that sells only to other intermediaries.

Question 11

________ is an intermediary that sells to consumers.

A) An agent
B) A retailer
C) A wholesaler
D) A distributor
E) A broker

Question 12

A ________ can be compared to a pipeline through which water flows-making possible the flow of products and services from a producer, through intermediaries, to a buyer.

A) marketing chain
B) marketing hierarchy
C) marketing agent
D) marketing channel
E) marketing network

Question 13

You probably own several pairs of shoes. Further, it is likely you purchased those shoes at retail stores located in a shopping mall and not directly from the manufacturer. In fact, most products are brought to you from a series of other individuals or firms known as a

A) marketing network.
B) distribution hierarchy.
C) marketing chain.
D) distribution matrix.
E) marketing channel.

Question 14

An agent is

A) any intermediary with legal authority to act on behalf of the manufacturer but that does not take title to products.
B) independent firms or individuals whose principal function is to transport goods.
C) any intermediary that takes ownership of a manufacturer's goods or services and then finds multiple buyers for them.
D) a manufacturer's paid representative and acting voice in initial sales transactions.
E) a manufacturing "matchmaker" that actively seeks out potential consumers and brings them to retailers.

Question 15

Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users are referred to as a

A) marketing channel.
B) parallel distribution.
C) retailer.
D) wholesaler.
E) distributor.

Question 16

Any intermediary between a manufacturer and end-user markets can be called a

A) retailer.
B) middleman.
C) wholesaler.
D) broker.
E) distributor.

Question 17

An intermediary that sells to other intermediaries, usually to retailers in consumer markets, is referred to as

A) a broker.
B) an agent.
C) a retailer.
D) a distributor.
E) a wholesaler.

Question 18

Your best friend just bought a longboard at BC Surf & Sport. In terms of the marketing channel, BC Surf & Sport is

A) an ultimate consumer.
B) a manufacturer.
C) a wholesaler.
D) a retailer.
E) a distributor.

Question 19

Several artists in Charleston, South Carolina, show and sell their work in an art gallery downtown. The gallery is owned by an art lover who does not buy the paintings but displays the work of various artists. She collects a percentage on each piece sold. In terms of the marketing channel, the gallery is

A) an ultimate consumer.
B) a manufacturer.
C) a wholesaler.
D) an agent.
E) a clearinghouse.

Question 20

Managing Eddie Bauer's ________ is a complex task due to starkly different objectives: efficiently keeping the products most desired by customers replenished and displayed on store shelves for one channel, while providing wider product assortments and even customized products shipped from a distribution center for another.

A) competitors
B) retail partners
C) supply chain
D) retail outlets
E) discounted merchandising arm

Question 21

Intermediaries performing a transactional function in distribution are engaged in buying, selling, and

A) storing.
B) financing.
C) transporting.
D) risk taking.
E) merchandising.

Question 22

Facilitating functions performed by channel intermediaries include

A) buying and selling.
B) assorting, sorting, and storing.
C) financing, grading, and marketing information and research.
D) risk taking.
E) transportation.

Question 23

Assembling and protecting products at a convenient location to offer better customer service is an example of a ________ function performed by channel intermediaries.

A) transactional
B) facilitating
C) grading
D) risk-taking
E) logistical

Question 24

In terms of distribution, when marketing channel members are engaged in buying, selling, and risk taking, they are performing ________ functions.

A) logistical
B) merchandising
C) facilitating
D) implementation
E) transactional

Question 25

Intermediaries perform facilitating functions, which assist producers in making products and services more attractive to buyers. These activities include

A) producing, assembling, and distributing.
B) transportation and distribution.
C) buying, selling, and risk-taking.
D) assorting, sorting, and storing.
E) financing, grading, and marketing information and research.

Question 26

Figure 15-2

-Intermediaries perform three basic functions. In Figure 15-2 above, B represents ________ function.

A) a middleman
B) a logistical
C) a facilitating
D) an operational
E) a transactional

Question 27

Risk taking as a transactional function refers to

A) unpredictable costs of transportation because of fuel prices.
B) product liability from poorly produced products that become defective.
C) the need to stock merchandise in anticipation of sales.
D) trying new promotional campaigns.
E) investments in new-product development.

Question 28

An even more imprecise term than distributor, ________ can mean the same as retailer, wholesaler, and more.

A) broker
B) order taker
C) agent
D) dealer
E) consumer

Question 29

When marketing channel members are engaged in assorting, storing, sorting, and transporting products and services, they are performing ________ functions.

A) logistical
B) merchandising
C) facilitating
D) implementation
E) transactional

Question 30

Logistical function activities include ________ products and services.

A) buying and selling
B) assorting, storing, sorting, and transporting
C) financing and grading
D) risk-taking
E) marketing information and research

Question 31

Figure 15-2

-Intermediaries perform three basic functions. In Figure 15-2 above, Box A represents ________ function.

A) a middleman
B) a logistical
C) a facilitating
D) an operational
E) a transactional

Question 32

Creating product assortments from several sources to serve customers is an example of a ________ function performed by channel intermediaries.

A) transactional
B) facilitating
C) selling
D) logistical
E) risk-taking

Question 33

The three basic functions intermediaries perform are

A) planning, implementing, and evaluating functions.
B) implementation, accommodating, and contractual functions.
C) contractual, facilitating, and logistical functions.
D) transactional, logistical, and facilitating functions.
E) facilitating, accommodating, and implementation functions.

Question 34

Purchasing products for resale or acting as an agent for supply of a product would be an example of ________ function.

A) a logistical
B) a facilitating
C) a risk-taking
D) a transactional
E) an assorting

Question 35

Automakers such as Chrysler, Ford, and General Motors utilize ________ networks.

A) dealer
B) broker
C) retailer
D) distributor
E) wholesaler

Question 36

Physically moving a product to customers is an example of a ________ function performed by channel intermediaries.

A) transactional
B) logistical
C) facilitating
D) selling
E) sorting

Question 37

In terms of distribution, when marketing channel members are engaged in financing, grading, and marketing information and research, they are performing the ________ function.

A) logistical
B) transformational
C) implementing
D) facilitating
E) transactional

Question 38

When Hunter went to the hardware store looking for gloves to wear while refinishing a table, he bought one pair because that was all he needed. But when the hardware store purchased the gloves, it purchased a case containing 100 pairs of identical gloves. Which logistical function did the hardware store perform for Hunter and its other customers?

A) marketing
B) buying
C) sorting
D) assorting
E) risk-taking

Question 39

Figure 15-2

-Intermediaries perform three basic functions. In Figure 15-2 above, C represents ________ function.

A) a middleman
B) a logistical
C) a facilitating
D) an operational
E) a transactional

Question 40

A marketing channel intermediary that purchases merchandise for resale at retail outlets is engaging in ________ function.

A) a transactional
B) a logistical
C) a facilitating
D) a risk-taking
E) an assorting

Question 41

________ exists when producers and ultimate consumers deal one-on-one with each other.

A) A strategic channel alliance
B) A direct channel
C) A horizontal marketing exchange
D) An indirect channel
E) A dual distribution channel

Question 42

A commonly used indirect channel moves product from producer to retailer to consumer. Companies like Target and The Home Depot buy directly from manufacturers rather than wholesalers. This channel is used when

A) the retail outlets are regionally located.
B) the cost of maintaining inventory is low.
C) there is little if any seasonal demand.
D) the risk lies solely with the manufacturer.
E) the retailer is large and can buy in large quantities from a producer.

Question 43

Extending credit to customers is an example of a ________ function performed by channel intermediaries.

A) transactional
B) logistical
C) facilitating
D) buying
E) risk-taking

Question 44

A direct channel exists when

A) producers and end users deal with each other on a one-on-one basis.
B) the producer and consumer perform numerous channel functions.
C) a firm reaches different buyers by employing two or more different types of channels for the same basic product.
D) an intermediary sells to other intermediaries, usually to retailers in consumer markets.
E) an agent or broker brings ultimate consumers to manufacturers.

Question 45

A textile artist can buy fabric, thread, and batting, create an heirloom quilt, and then sell the finished work to customers in a kiosk decorated with some of the quilts produced to entice customers who shop at the local mall. By designing the quilts and kiosk with aesthetic value, the artist creates ________ utility.

A) application
B) possession
C) time
D) place
E) form

Question 46

Marketing channels help create value for consumers through four utilities. These utilities are

A) product, price, promotion, and place.
B) form, function, risk-taking, and selling.
C) time, place, form, and possession.
D) transactional, logistical, facilitating, and marketing.
E) buying, selling, storing, and transporting.

Question 47

In a direct channel, all channel functions are performed by

A) retailers.
B) wholesalers.
C) producers.
D) brokers and agents.
E) middlemen.

Question 48

As the number of intermediaries between a producer and buyer increases, the channel is viewed as increasing in

A) variety.
B) scope.
C) depth.
D) scale.
E) length.

Question 49

The Schwan's Company of Marshall, Minnesota, the largest direct-to-home provider of foods in the United States, uses route sales representatives who sell to consumers from refrigerated trucks. This particular method of distribution is referred to as

A) an indirect channel.
B) a direct channel.
C) a facilitated channel.
D) a customer-service channel.
E) a truck-jobber channel.

Question 50

Having a product or service where consumers want it is ________ utility.

A) form
B) place
C) time
D) possession
E) location

Question 51

Inspecting, testing, or judging products and assigning them quality grades is an example of a ________ function performed by channel intermediaries.

A) transactional
B) logistical
C) storing
D) facilitating
E) risk-taking

Question 52

An example of ________ utility involves intermediaries shipping goods directly to buyers of a product.

A) time
B) form
C) place
D) possession
E) transactional

Question 53

Though uninformed consumers focus largely on the extra markups from channel members, the four utilities each provide opportunities for

A) channel intermediary development.
B) relationship management between channel intermediaries themselves.
C) value created by channel intermediaries.
D) channel intermediary promotional efforts.
E) recouping cost overruns.

Question 54

A snack vending machine located in a university building creates both ________ utility.

A) time and place
B) place and form
C) form and creation
D) possession and form
E) application and place

Question 55

When Dell Computer sells made-to-order PCs to customers online via its website, it is an example of which type of marketing channel?

A) indirect channel
B) strategic channel alliance
C) consumer channel
D) dual distributive channel
E) direct channel

Question 56

Enhancing a product or service to make it more appealing to buyers is ________ utility.

A) time
B) place
C) possession
D) form
E) transactional

Question 57

Members of a high-school glee club sold home-baked cupcakes at school to raise money. The students selling their cupcakes to classmates would be an example of

A) a personalized distribution.
B) a nonpermanent distribution.
C) an informal channel of distribution.
D) a direct channel of distribution.
E) an indirect channel of distribution.

Question 58

Indirect channels for consumer products

A) occur when one firm's marketing channels are used to sell another firm's products.
B) include producers and end users dealing directly with each other.
C) include intermediaries that are between the producer and consumer and perform numerous channel functions.
D) are arrangements whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.
E) occur when a retailer sells its product in a store and on the Internet.

Question 59

Southern pine lumber is visually inspected and placed into categories like "Select Structural," "No. 1," and "No. 2." These categories reflect characteristics of the wood and are related to its suggested uses. This rating system is most closely related to which facilitating function activity performed by marketing intermediaries?

A) grading
B) sorting
C) risk-taking
D) marketing
E) assorting

Question 60

A channel that includes intermediaries that are between the producer and consumers and perform numerous channel functions is referred to as

A) an indirect channel.
B) a direct channel.
C) a multilevel channel.
D) a full-service channel.
E) a limited-service channel.

Question 61

In marketing channels for business products, an intermediary that performs a variety of marketing channel functions including selling, stocking, delivering a full product assortment, and financing is referred to as

A) an agent.
B) an industrial distributor.
C) a wholesaler.
D) a retailer.
E) a channel captain.

Question 62

The most indirect channel for consumer products incorporates agents, wholesalers, and retailers and is most commonly used when there

A) are only a few large manufacturers but many small retailers.
B) are low-cost, low unit volume goods.
C) is too large an inventory to be carried by wholesalers.
D) are many small manufacturers and many small retailers.
E) are many manufacturers with a limited inventory competing for a small group of retailers.

Question 63

A commonly used indirect channel moves product from producer to retailer to consumer. Automobile manufacturers use this channel because

A) inventory is unpredictable.
B) the cost of inventory makes it too expensive to use a wholesaler.
C) there is little if any seasonal demand.
D) the risk lies solely with the manufacturer.
E) the retail outlets are regionally located.

Question 64

The most common intermediaries in the marketing channels for business products are industrial distributors and

A) manufacturers.
B) retailers.
C) agents.
D) wholesalers.
E) brokers.

Question 65

The most indirect marketing channel is employed where many intermediaries are used to help coordinate the distribution of the product. Which of these products would most likely be marketed using this kind of channel?

A) Aspen dental services
B) Toyota automobiles
C) Leslie pool supplies
D) Jaipur rugs made in India
E) Hershey's candy bars

Question 66

Mail-order selling, catalog sales, telemarketing, interactive media, and televised home shopping are all examples of

A) direct to consumer marketing channels.
B) indirect marketing channels.
C) multimedia marketing channels.
D) virtual marketing channels.
E) personal selling.

Question 67

Industrial distributors perform functions that are most like which intermediary in the consumer products marketing channel?

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

Question 68

Allowing consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson is referred to as

A) an indirect marketing channel.
B) a direct to consumer marketing channel.
C) a multimarketing channel.
D) channel bypass marketing.
E) personal selling.

Question 69

An industrial distributor is

A) an intermediary that performs a variety of marketing channel functions involving selling, stocking, delivering a full product assortment, and financing.
B) an intermediary that maintains its own sales force and performs all channel functions.
C) an intermediary that deals exclusively with the selling, stocking, and delivery of raw materials used by manufacturers in the production of its products.
D) an intermediary that deals with a single product line within a single industry.
E) an intermediary that performs functions involving selling, stocking, and delivery of industrial goods but is unable to provide financing due to the normally large expenditures.

Question 70

Which of these products or services must typically be provided by traditional and not by digital marketing channels?

A) car rental reservations
B) software
C) orthopedic surgery
D) music
E) education

Question 71

Multichannel marketing is the blending of different ________ channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.

A) pricing
B) production
C) communication and delivery
D) direct and indirect
E) promotion

Question 72

________ seeks to leverage the value-adding capabilities of both electronic marketing and traditional delivery. Catalogs can serve as shopping tools for online purchasing, and websites can help consumers do their homework before visiting a store.

A) Direct marketing
B) Indirect marketing
C) Intensive marketing
D) Multichannel marketing
E) Automated marketing

Question 73

International Products, a U.S. firm that sells industrial cleansers and lubricants, wanted to sell its product to factories, hospitals, and labs in China, but it did not have the necessary expertise. As a result, International Products hired Asia Marketing & Management to sell, stock, and deliver a full assortment of products to the Chinese market. Asia Marketing & Management is an example of

A) an agent.
B) a wholesaler.
C) a global broker.
D) a retailer.
E) an industrial distributor.

Question 74

A direct to consumer marketing channel refers to

A) the distribution of products and services directly from the manufacturer's production site to end users.
B) the traditional chain of distribution from manufacturer to retailer to consumer.
C) the use of agents that represent a single producer and are responsible for the entire marketing function of that producer.
D) a method of distribution that allows consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson.
E) a method of distribution that allows consumers to buy products through direct personal interaction with the manufacturer's representatives in order to provide more personalized service.

Question 75

The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online is referred to as

A) direct marketing.
B) indirect marketing.
C) intensive marketing.
D) multichannel marketing.
E) digital marketing.

Question 76

Digital marketing channels refer to

A) the use of the Internet to make products and services available for consumption or use by consumers or organizational buyers.
B) a firm's computer-driven inventory management through an entirely mechanized warehousing system.
C) intranet systems linking all aspects of production within a single firm.
D) the information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings.
E) the name given to all Internet addresses that end in ".com" to indicate that these websites are commercial entities that distribute goods and services.

Question 77

A small electronics company has begun production of a line of high-quality, professional studio-model components targeted at audiophiles who shop at thousands of specialty stores across the United States. How should the electronics company best distribute its new products?

A) Use its established indirect marketing channel.
B) Distribute directly to mass market consumers.
C) Distribute through agents that sell to specialty electronics stores that will feature the new line.
D) Sell directly to specialty electronics stores that will feature the new line.
E) Establish its own chain of electronics retail stores.

Question 78

Using the Internet to make products and services available for consumption or use by consumers or organizational buyers is referred to as

A) electronic distribution channels.
B) virtual marketing channels.
C) World Wide Web networks.
D) digital marketing channels.
E) Web 3.0 marketing channels.

Question 79

When you order a sweater from an L.L.Bean mail-order catalog, what type of marketing channel are you and the company using?

A) cash and carry marketing channel
B) intensive distribution channel
C) selective distribution channel
D) indirect marketing channel
E) direct to consumer marketing channel

Question 80

MachineTools.com sells grinders, boring mills, and engine lathes. Its website lists products from over 700 machinery manufacturers, 2,500 distributors of new equipment, and 650 dealers of used inventory for sale. MachineTools.com relies on a well-established channel of manufacturers, distributors, and machinery dealers to provide the merchandise that is sold through this

A) electronic government channel.
B) virtual marketing channel.
C) World Wide Web network.
D) mediated channel.
E) digital marketing channel.