Deck 9: Distribution and Supply Chain Management

Question 1

The sources of power or influence change as a supply chain moves toward integration and collaboration. In collaborative supply chains, the most important source of power is based on:

A) rewards.
B) sales volume.
C) information.
D) coercion.
E) firm size.

Answer 1

C

Question 2

Which of the following statements best describes a channel that is effective?

A) A channel that has no redundancies
B) A channel that provides the best in terms of time, place, and possession utility
C) An integrated channel that operates at half the cost of competing channels
D) A tightly integrated channel that operates with little or no waste
E) A channel that meets the needs of all supply chain partners

Answer 2

B

Question 3

What is considered to be the most important factor to successful supply chain management in today's economy?

A) channel integration
B) cost control
C) profit maximization
D) channel effectiveness
E) category management

Answer 3

A

Question 4

Which member of the marketing channel has the primary responsibility of fulfilling the channel's main functions?

A) manufacturers
B) wholesalers
C) retailers
D) customers
E) It does not matter.

Question 5

Hallmark is a good example of a company that uses _____ distribution as a means of offering two or more lines of the same merchandise through two or more outlets.

A) direct
B) secondary
C) split
D) dual
E) complementary

Question 6

In most marketing channels for consumer products, the balance of power has shifted to _____ due to their size and control over information.

A) consumers
B) mass merchandise retailers
C) wholesalers
D) brokers and distributors
E) manufacturers

Question 7

In some cases, manufacturers can require that wholesalers, brokers, agents, or retailers not carry or represent products from any competing manufacturer. Violations of these restrictions can cause a manufacturer to cut off supply to the intermediary in question. This situation represents which of the following potential ethical or legal issues in supply chain management?

A) exclusive channel arrangements
B) tying contracts
C) channel stuffing
D) dual distribution
E) restricted supply chains

Question 8

Which of the following statements best describes a channel that is efficient?

A) A channel that provides maximum time utility
B) A channel that has eliminated all wholesalers
C) A channel that provides the best in terms of place utility
D) An integrated channel that reduces redundancies and waste
E) All of the above describe efficient channels of distribution.

Question 9

Because the company was angered by the actions of its resellers, Acme Manufacturing decided to slow down deliveries and postpone product availability to these resellers. What type of power is Acme wielding?

A) legitimate power
B) coercive power
C) referent power
D) reward power
E) logistical power

Question 10

A _____ is an organized system of marketing institutions through which products, resources, information, funds and/or product ownership flow from the point of production to the final user.

A) marketing network
B) distribution hub
C) supply chain
D) marketing channel
E) product network

Question 11

Ensuring the availability of products in the right place in the right quantities at the right time in a cost efficient manner is the main focus of:

A) physical distribution.
B) marketing networks.
C) supply chain management.
D) channel management.
E) network management.

Question 12

What is the most appropriate type of distribution to use when customers need the opportunity to comparison shop, or when after-sale services are important?

A) exclusive distribution
B) service-based distribution
C) intensive distribution
D) comparative distribution
E) selective distribution

Question 13

As pressures have increased to cut expenses and increase profit margins, many marketing channels have strongly embraced _____. The rapid increase in nonstore retailing is a prime example of this growing trend.

A) extended enterprise management
B) channel specialization
C) category management
D) outsourcing
E) direct distribution

Question 14

Many products, such as candy, soft drinks, and gum are sold via intensive distribution. However, this strategy has a major drawback. What is it?

A) It maximizes profit margin rather than sales volume.
B) It encourages customers to shop around for the lowest price.
C) It promotes a very high degree of brand switching.
D) The manufacturer must give up a good degree of control over pricing and product display.
E) It gives customers fewer opportunities to find the product.

Question 15

Overall, the trends occurring in marketing channels today (growth in e-commerce, shifting power, outsourcing, growth in direct distribution/nonstore retailing, and growth in dual distribution) have one major theme in common. What is that theme?

A) enhancing the reputation of the supply chain
B) reducing the risk of legal action in the supply chain
C) increasing channel efficiency by reducing waste, overhead, and other costs
D) securing more power and control for manufacturers
E) All of the above are common themes.

Question 16

In the Mercedes dealer network, individual dealers are given the sole right to sell Mercedes vehicles within a defined geographic area. What type of distribution does Mercedes employ?

A) exclusive distribution
B) intensive distribution
C) selective distribution
D) limited distribution
E) prestige-based distribution

Question 17

Today, though cutting expenses is still a main factor, the desire of many firms to focus on core competencies is a driving force behind the increase in:

A) category management.
B) channel integration.
C) referent power.
D) product differentiation.
E) outsourcing.

Question 18

Recently, a major manufacturer of small kitchen appliances implemented a program whereby retailers could purchase the firm's popular coffee makers and blenders, but only if the retailers agreed to purchase its less popular irons and food processors. Many of the retailers became angry and threatened to sue the manufacturer for forcing them into a(n):

A) exclusive channel arrangement.
B) channel stuffing arrangement.
C) dual distribution agreement.
D) tying arrangement.
E) restricted supply agreement.

Question 19

The most basic benefit of marketing channels is _____ where channels reduce the number of contacts necessary to exchange products.

A) host reduction
B) time efficiency
C) contact efficiency
D) spatial realignment
E) accumulation

Question 20

In terms of marketing channel functions, which of the following statements describes the concept of discrepancy of quantity?

A) Manufacturers make one or a few product(s); customers need variety and assortment.
B) Channels must make products available in convenient locations.
C) Channels add value to products by standardizing the exchange process.
D) Channels must provide for the storage of products for future purchase and use.
E) Manufacturers produce large quantities; customers usually want only one item.

Question 21

Identify and discuss the three major structural options for distribution. In your answer, identify the major advantages and disadvantages of each option.

Question 22

Discuss the growth and importance of outsourcing in today's economy. What are the driving factors or themes that lead firms to outsource business functions, including channel functions?

Question 23

Compare and contrast the traditional use of power in a marketing channel versus today's notion of integrated and collaborative supply chains. Do the five traditional power bases still play a role in today's era of collaboration? Explain.

Question 24

Identify and describe the major differences between traditional marketing channels and true supply chains. What are the characteristics of true supply chains that cause them to outperform traditional channels by a wide margin?

Question 25

Explain why distribution and supply chain management are critical to achieving a sustainable competitive advantage and true differentiation in the marketplace. How are these issues related to other elements of the marketing program in determining competitive advantage?