Deck 12: Marketing Channels and Supply Chain Management

Question 1

Which type of intermediaries are retailers and merchant wholesalers?

A)those that take title to a product
B)those that create temporal and spatial discrepancies
C)those that use consumer promotions
D)those that do not benefit from any economies of scale

Answer 1

A
Retailers and merchant wholesalers own the merchandise and control the terms of its ultimate sale.

Question 2

To facilitate manufacturing in China,Ingersoll-Rand uses 18 different local suppliers of key component parts.What are these suppliers part of for Ingersoll-Rand?

A)its communication network
B)its channel of distribution
C)its supply pyramid
D)its demand chain

Answer 2

B

Question 3

Cutter & Buck is a high-end fashion sportswear company.Even though swimwear is a product category that does not sell year-round,its sales remain steady all year because Cutter & Buck sells to wholesale distributors that stock the product.Which type of discrepancy are its wholesale distributors helping to overcome?

A)spatial
B)possession
C)quantity
D)temporal

Answer 3

D
A temporal discrepancy is created when a product is produced but a consumer is not ready to purchase it.

Question 4

Vicobello is a major manufacturer of outdoor fountains that are currently popular in gardens.Even though fountains represent a product category that does not sell year-round due to inclement weather,Vicobello's sales remain steady all year because it sells to wholesale distributors that stock the product.Which type of discrepancy are its wholesale distributors primarily helping to overcome?

A)assortment
B)possession
C)quantity
D)temporal

Question 5

What is the term for a business structure of interdependent organizations that reaches from the point of product origin to the consumer?

A)a marketing mix channel
B)a selective distribution channel
C)a marketing channel or channel of distribution
D)a transportation channel or channel of movement

Question 6

A manufacturer may produce only one product,yet additional products may be required to actually use the first product.What does this create?

A)a discrepancy of quantity
B)a discrepancy of assortment
C)a spatial discrepancy
D)a temporal discrepancy

Question 7

What exists when a retail outlet does not offer all the items necessary in order for the buyer to use or to receive full satisfaction from a product purchased there?

A)a discrepancy of assortment
B)a spatial discrepancy
C)a temporal discrepancy
D)a discrepancy of possession

Question 8

Long Island Lefty provides retailers and other businesses with the latest and the best products for left-handed consumers.It buys all types of products from a variety of manufacturers and stores the merchandise in its New York warehouse until purchased by buyers.Long Island Lefty does not sell to end users.What is Long Island Lefty an example of?

A)agent or broker
B)merchant wholesaler
C)retailer
D)consumer market

Question 9

How can marketing channels achieve economies of scale?

A)through overcoming spatial discrepancies
B)through contact expertise
C)through specialization and division of labour
D)through overcoming discrepancies of quantity

Question 10

Distribution channels aid in overcoming barriers to exchange that are created in the production process by overcoming all of the following types of discrepancies EXCEPT which of the following?

A)possession
B)assortment
C)quantity
D)temporal

Question 11

Which type of discrepancy is created when a product is produced but a consumer is not ready to purchase it?

A)quantity
B)possession
C)temporal
D)assortment

Question 12

Markets are often scattered over large geographic regions,yet a manufacturer may have only one location in the country.Which type of discrepancy does this create?

A)spatial
B)temporal
C)assortment
D)quantity

Question 13

Marketing channels make distribution simpler by reducing the number of transactions required to get products from manufacturers to consumers.What is this called?

A)forward integration.
B)contact efficiency
C)sorting
D)reciprocity

Question 14

Ontario Natural Food is a grocery wholesale cooperative,it provides all kinds of meats,cereals,canned and fresh fruits and vegetables,beauty aids,healthcare items,and pet products to the supermarkets in its channel.What is Ontario Natural Food overcoming to aid its customers?

A)spatial discrepancy
B)discrepancy of quantity
C)discrepancy of assortment
D)demand discrepancies

Question 15

What is the term for an institution that buys goods from manufacturers,takes title to these goods,and resells them to businesses,government agencies,and/or other wholesalers or retailers?

A)a merchant wholesaler
B)a drop shipper
C)a channel cooperative
D)a marketing cooperative

Question 16

McKesson Company provides health care products to pharmacies.For example,it purchases bandages,gauze,antibacterial cream,and ointments (or anything else you would need to treat a cut or scrape)from a variety of different manufacturers.Its goal is to provide each pharmacy with every item a customer might want to treat a cut.What is McKesson overcoming to aid consumers?

A)spatial discrepancy
B)discrepancy of quantity
C)discrepancy of assortment
D)discrepancy of possession

Question 17

W.W.Grainger,Inc. ,is one of the world's largest business-to-business distributors of equipment,component parts,and supplies in the United States and Canada.It has ownership title to over 220,000 products,which are stocked in one national and nine regional warehouses to guarantee product availability and quick service to the many manufacturers that are its customers.What is W.W.Grainger an example of?

A)agent or broker
B)merchant wholesaler
C)retailer
D)consumer market

Question 18

YKK slide fasteners (zippers)are made in Brandon,Manitoba yet manufacturers all over the world use YKK zippers to manufacture clothes,luggage,shoes,and other items.Which type of discrepancy do wholesalers around the world primarily help to overcome?

A)creation
B)temporal
C)assortment
D)spatial

Question 19

What is the difference between the amount of product produced and the amount an end user wants to buy?

A)a discrepancy of quantity
B)a discrepancy of assortment
C)a discrepancy of accumulation
D)a discrepancy of possession

Question 20

What is the major characteristic used to differentiate between types of intermediaries?

A)whether they prevent specialization of labour
B)whether they decrease economies of scale
C)whether they take title to the products they sell
D)whether they raise profit margins for independent middlemen

Question 21

Which type of distribution occurs when a producer selects two or more different channels to distribute the same products to target markets?

A)intensive
B)multiple
C)contractual
D)cumulative

Question 22

Which of the following are wholesaling intermediaries that facilitate the sales of a product from producer to end user by representing retailers,wholesalers,or manufacturers and providing little input as to the terms of the sale?

A)marketing facilitators
B)channel cooperatives
C)agents and brokers
D)merchant wholesalers

Question 23

Centigon is a manufacturer of customized armoured vehicles for military,private,presidential,and commercial uses.Each armoured vehicle is designed to deliver security on the road while also achieving optimum levels of performance and comfort.For distribution,what would you expect Centigon to use?

A)a horizontally integrated channel
B)a reciprocal system
C)a direct channel
D)a vertical marketing system

Question 24

Which term describes the process of strategically managing the efficient flow and storage of raw materials,in-process inventory,and finished goods from point of origin to point of consumption?

A)contract logistics
B)logistics
C)disintermediation
D)channel facilitation

Question 25

Which of the following is NOT a channel member typically used by manufacturers as they route their products to consumers?

A)retailer
B)industrial distributor
C)producer
D)wholesaler

Question 26

Sherwin-Williams Company has not only grown to be the largest producer of paints and coatings in Canada and the United States,but is among the largest producers in the world.For distribution,what would you expect Sherwin-Williams to use?

A)a network of facilitating agents
B)a horizontally integrated channel
C)a direct channel
D)a vertical marketing system

Question 27

What do companies selling standardized items of moderate or low value to other businesses (not to consumers)often use?

A)retailers
B)industrial distributors
C)direct marketing organizations
D)agents and brokers

Question 28

What is breaking bulk at the wholesale level called?

A)allocating
B)accumulation
C)storing
D)downsizing

Question 29

Which channel is typically used for industrial products?

A)direct
B)industrial distributor
C)wholesaler
D)retailer

Question 30

Which of the following best describes agents and brokers?

A)They have a great deal of control and risk invested in the goods.
B)They represent only manufacturers in sales situations.
C)They generally are on salary with the manufacturer.
D)They do not take title to merchandise.

Question 31

Marketing channels perform which of the following logistical activities?

A)transporting
B)promoting
C)negotiating
D)risk taking

Question 32

Which of the following includes managing the movement of raw materials and parts from their sources to production sites;managing the movement of materials,semi-finished,and finished products within and among plants,warehouses,and distribution centres;and the planning and coordinating of the physical distribution of finished goods to intermediaries and final buyers?

A)logistics
B)materials handling
C)intermodal transportation
D)contract logistics

Question 33

Transactional channel functions include all of the following activities EXCEPT

A)contacting buyers
B)promoting the products to be sold
C)taking the risks associated with product inventories
D)physical distribution and sorting

Question 34

Which of the following is NOT a sorting activity?

A)assorting
B)accumulation
C)allocation
D)possession

Question 35

Vicobello is a manufacturer of outdoor fountains that are currently popular in gardens.Even though fountains represent a product category that does not sell year-round due to inclement weather,Vicobello's sales remain steady all year because it sells to wholesale distributors that stock the product.Which type of functions do the wholesale distributors perform for the manufacturer?

A)financial
B)facilitating
C)logistical
D)promotional

Question 36

What are the three basic functions performed by channel intermediaries?

A)transactional,logistical,and facilitating
B)contacting,negotiating,and ownership
C)promoting,distributing,and bulk breaking
D)assorting,accumulating,and allocating

Question 37

The only way Jim Keeler in British Columbia can get a box of Carolyn Popwell's Festive Holiday Truffles from Washington is to order it through the mail.Popwell,who makes the candy by hand,uses which of the following type of channels?

A)wholesaler
B)agent/broker
C)reciprocal
D)direct

Question 38

One configuration of a marketing channel entails producers selling to consumers with no intermediaries involved.What is this called?

A)a limited distribution system
B)a vertical marketing system
C)a reciprocal channel
D)a direct channel

Question 39

Generally,what determines the type of intermediary a manufacturer should use?

A)product characteristics,buyer consideration,and market characteristics
B)competitive conditions and government regulations
C)all controllable marketing factors
D)only noncontrollable environmental factors

Question 40

Which of the following are examples of facilitating functions performed by wholesaling intermediaries?

A)sorting and storing
B)risk taking and promotion
C)assorting,accumulating,grading,and allocating
D)researching and financing

Question 41

Selfridges is the second-largest department store in Great Britain.It works with House of Frasier,one of its competitors,to reduce operating costs by sharing channels of distribution to ship goods from more than 1,500 suppliers.
When Delphi-Grundig,a manufacturer of state-of-the-art car radios,decided to expand its marketing efforts into countries in which its products are not currently available,it did not have the time or resources to spend on developing new channels of distribution.What should Delphi-Grundig consider using?

A)an industrial distributor
B)a franchising system
C)a strategic channel alliance
D)a channel cooperative

Question 42

Selfridges is the second-largest department store in Great Britain.It works with House of Frasier,one of its competitors,to reduce operating costs by sharing channels of distribution to ship goods from more than 1,500 suppliers.
Which of the following statements best describes supply chain management?

A)Supply chain management is supply chain driven.
B)Supply chain management focuses on pulling products into the marketplace.
C)Outsourcing is not used with supply chain management.
D)Supply chain management focuses on pushing products into the marketplace.

Question 43

Selfridges is the second-largest department store in Great Britain.It works with House of Frasier,one of its competitors,to reduce operating costs by sharing channels of distribution to ship goods from more than 1,500 suppliers.
Which of the following best describes supply chain management?

A)It is a physical flow process.
B)It is customer driven.
C)It provides enhanced customer and economic value.
D)It plays the role of communicator of customer demand.

Question 44

When the new father left the maternity ward to find something to eat,he was surprised to see he could buy McDonald's fast food in the hospital dining room.What is McDonald's utilizing?

A)logistical distribution alliance
B)multiplicative channels
C)a nontraditional channel
D)a strategic channel alliance

Question 45

Peachtree Windows has no windows in inventory waiting for someone to order them.It does not make a window until it is ordered.It is able to make 27,000 different window configurations.
Refer to Peachtree Windows.The company promises delivery in five working days because of the excellent relationships it has established with its suppliers.What does this partnering relationship that Peachtree Windows has established with its suppliers and contractors indicate the use of?

A)supply chain management
B)yield management
C)channel networks
D)horizontal marketing networks

Question 46

Which type of distribution is aimed at maximum market coverage and is used for many convenience goods and supplies that need to be available in every outlet where the potential customer might want to buy them?

A)selective franchising
B)channel franchising
C)intensive distribution
D)exclusive distribution

Question 47

Canesta Company has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants (PDAs).The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device.When introduced to the market,the device will sell for less than $50.
Refer to Canesta Company.If,in choosing its channel,Canesta is most concerned about supplying the number of consumers who have expressed interest in such a device,what will its choice of channels largely be influenced by?

A)exclusivity agreements
B)market factors
C)product factors
D)internal environmental agreements

Question 48

Selfridges is the second-largest department store in Great Britain.It works with House of Frasier,one of its competitors,to reduce operating costs by sharing channels of distribution to ship goods from more than 1,500 suppliers.
Refer to Selfridges.In choosing a channel of distribution,Selfridges more than likely relied on which of the following?

A)market factors
B)ownership requirements
C)production factors
D)geodemographic requirements

Question 49

Canesta Company has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants (PDAs).The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device.When introduced to the market,the device will sell for less than $50.
Refer to Canesta Company.If,in choosing its channel,Canesta is most concerned about its lack of financial,managerial,and marketing resources to support the product's introduction,what will its choice of channels largely be influenced by?

A)factors of ownership
B)market factors
C)producer factors
D)product factors

Question 50

Peachtree Windows has no windows in inventory waiting for someone to order them.It does not make a window until it is ordered.It is able to make 27,000 different window configurations.
Which of the following statements best illustrates how market factors affect channel decisions?

A)Industrial customers tend to buy in larger quantities and require more customer service.
B)Geographically concentrated target markets should be served with an indirect sales force.
C)Widely dispersed markets require fewer intermediaries.
D)A very large market requires fewer intermediaries.

Question 51

Which of the following use another manufacturer's already established channel and are used most often when the creation of marketing channel relationships may be expensive and time consuming?

A)strategic channel alliances
B)relationship channels
C)reverse channels
D)multiple distribution alliances

Question 52

Selfridges is the second-largest department store in Great Britain.It works with House of Frasier,one of its competitors,to reduce operating costs by sharing channels of distribution to ship goods from more than 1,500 suppliers.
Which of the following coordinates and integrates all of the activities performed by channel members into a seamless process,from the source to the point of consumption,resulting in enhanced customer and economic value?

A)channel power
B)materials handling
C)supply chain management
D)physical distribution

Question 53

Selfridges is the second-largest department store in Great Britain.It works with House of Frasier,one of its competitors,to reduce operating costs by sharing channels of distribution to ship goods from more than 1,500 suppliers.
Refer to Selfridges.What are Selfridges and House of Frasier engaged in?

A)vertical conflict
B)an integrated supply chain
C)a strategic channel alliance
D)an information-based distribution channel

Question 54

Peachtree Windows has no windows in inventory waiting for someone to order them.It does not make a window until it is ordered.It is able to make 27,000 different window configurations.
Refer to Peachtree Windows.The company will make special adjustments to these configurations if there is a request for modifications as long as the modifications meet the company's exacting safety requirements.What does Peachtree Window engage in?

A)niche marketing
B)product development
C)mass customization
D)marketing aggregation

Question 55

The Hudson Bay Company distributes furniture,television sets,silverware,clothing and more throughout Canada.Which type of distribution does The Bay use?

A)intensive
B)multiple
C)cumulative
D)aggregated

Question 56

Selfridges is the second-largest department store in Great Britain.It works with House of Frasier,one of its competitors,to reduce operating costs by sharing channels of distribution to ship goods from more than 1,500 suppliers.
Cambridge Research & Instrumentation,Inc. ,a pioneer of liquid crystal-based imaging solutions,and Hinds Instruments,a leading developer of advanced birefringence measurement solutions,have announced that Hinds,with its considerable experience serving the advanced applications segment of this market,will distribute Cambridge's highly regarded imaging technology.What will the two companies engage in?

A)vertical conflict
B)an integrated supply chain
C)a strategic channel alliance
D)an information-based distribution channel

Question 57

When Blockbuster decided to establish Radio Shack stores within its existing stores,it seemed like a "marriage made in heaven" between a DVD rental chain known for frequent,loyal shoppers and one of the most identifiable consumer electronics retail brands.What was this an example of?

A)an agent/broker-dominated alliance
B)multiplicative channels
C)a nontraditional channel
D)a strategic channel alliance

Question 58

Canesta Company has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants (PDAs).The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device.When introduced to the market,the device will sell for less than $50.
Refer to Canesta Company.If,in choosing its channel,Canesta is most concerned about the life cycle of the device,what will its choice of channels largely be influenced by?

A)factors of production.
B)customer characteristics.
C)product factors.
D)market factors.

Question 59

Canesta Company has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants (PDAs).The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device.When introduced to the market,the device will sell for less than $50.
Refer to Canesta Company.What level of distribution intensity should the company use?

A)exclusive
B)extensive
C)reciprocal
D)selective

Question 60

Peachtree Windows has no windows in inventory waiting for someone to order them.It does not make a window until it is ordered.It is able to make 27,000 different window configurations.
A large automotive after-market business wanted to improve its current situation,which is characterized by excessive inventory,incomplete information,high logistics costs,slow reactions to environmental change,and lost profits at the retail level.Would supply chain management be of any help to the business?

A)Yes,supply chain management is designed to coordinate and integrate all the activities from raw materials to product consumption.
B)No,supply chain management is applicable to only distribution strategies for products being sold to the consumer market.
C)Yes,supply chain management would be very useful because it relies so heavily on benchmarking.
D)No,supply chain management requires an expensive investment of time and resources to make it worthwhile.

Question 61

Toothpaste is sold in grocery stores,service stations,convenience stores,drugstores,discount stores,and motel vending machines.What type of distribution strategy is used for toothpaste?

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

Question 62

What is the term for the joint effort of all channel members to create a supply chain that serves customers and creates a competitive advantage?

A)selective partnering
B)direct distribution
C)channel partnering
D)intensive integration

Question 63

Girls can log onto www.Barbie.com and design their own special Barbie doll.They can choose the doll's skin tone,hair colour,clothes,accessories,and name.The doll is created to the new owner's specifications and mailed to her by Mattel.With this doll,what is Mattel using?

A)market aggregation
B)niche marketing
C)mass customization
D)disintermediation

Question 64

Shopping goods and some specialty products that consumers are willing to search for are sold through a type of distribution that is achieved by screening dealers to eliminate all but a few in any single geographic area.What is the type of distribution being used?

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

Question 65

Using VictoryStore.com's online design tools and templates,lovers need do little more than choose the type of gift they want to give including candy,apparel,candles,and more.After a template is chosen,the personalized item-complete with a message declaring love-is only a few keystrokes away.Steve Grubbs,owner of VictoryStore.com,says,"Our designers have created a website full of cool designs;all the customer has to do is change the text,enter the credit card and wait for the gift to arrive a few days later." What is VictoryStore.com offering its customers?

A)build-to-order
B)market aggregation
C)disintermediation
D)market development

Question 66

Caterpillar,the manufacturer of tractors and other earthmoving equipment,has an extremely high market share,which means customers seek out the dealers,regardless of where they are.There are approximately eight Caterpillar dealers in all of Canada.From this information,which type of distribution does Caterpillar use?

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

Question 67

Which of the following is NOT a logistics component of the supply chain?

A)push marketing strategy
B)production scheduling
C)inventory control
D)order processing

Question 68

Which of the following best describes channel conflict?

A)It always has an adverse effect on the members of the channel.
B)It is often caused by an inability of some channel members to keep up with the changing times.
C)It can appear as either internal or external.
D)It does not occur when multiple distribution channels are used.

Question 69

Because buyers need to be willing to search or travel to acquire the product,one form of distribution is limited to consumer specialty goods,a few shopping goods,and major industrial equipment.Which most restrictive form of market coverage entails establishing only one or a few dealers within a given geographic area?

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

Question 70

Which of the following manufacturers most likely uses intensive distribution?

A)Cadbury Adams,manufacturer of Certs breath fresheners
B)Citizen,a manufacturer of digital scales
C)Champion,a manufacturer of inline skates
D)Cuisinart,a manufacturer of kitchen appliances

Question 71

Walker Zanger,Inc.manufactures decorative tile.The company has a policy of only having one or two dealers within a given large geographic area.Buyers of Walker Zanger brand terra-cotta and mosaic tiles for home decorating will travel to acquire just the right product,so which type of distribution is appropriate for the tile?

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

Question 72

More than 800,000 fans are willing to buy subscriptions to watch Major League Baseball (MLB)games online at MLB.com.That business is worth more than $100 million to MLB.But this online broadcast takes those fans away from the broadcasters that pay MLB hundreds of millions of dollars for the right to carry the games.What is creating a clash of goals and methods between MLB and broadcast television?

A)horizontal market share takeover
B)lateral channel takeover
C)niche market conflict
D)channel conflict

Question 73

Honda uses just-in-time manufacturing to build its Odyssey minivans.Five companies that make component parts for the Honda Odyssey relocated to Southern Ontario when Honda announced plans to build a new Odyssey manufacturing plant in Alliston,Ontario.This relocation in order to provide efficient delivery of goods indicates that Honda is which of the following?

A)a channel captain
B)a horizontal integrator
C)a distribution champion
D)a demand maverick

Question 74

The Discovery Channel joined with the BBC to send an expedition of top scientists to explore a seabed site off Indonesia.Because these two cable networks compete for viewership,what is there potential for as a result of this project?

A)horizontal conflict
B)trade loading
C)exclusive distribution
D)channel partnering

Question 75

When does horizontal channel conflict occur most often?

A)when manufacturers practise multiple distribution
B)when manufacturers practise value-added pricing
C)when manufacturers practise exclusive distribution
D)when manufacturers practise channel partnering

Question 76

DeBeers sells most of the diamonds it produces to industry.The company controls over 90 percent of the market and has great power over its distributors.In its marketing channel,what would DeBeers be considered?

A)a channel authority
B)a channel member
C)a channel leader
D)a channel gatekeeper

Question 77

Husqvarna Viking manufactures sewing machines.The company carefully screens its dealers to ensure a quality dealer image and service ability.Only a few dealers are chosen in any single geographic area.Which type of distribution does Husqvarna Viking use?

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

Question 78

The LaCoste brand apparel was once available at Zellers and a number of other non-luxury retailers.Today the LaCoste brand can be found only at Holt Renfrew's and LaCoste boutiques.From this information,you can surmise that LaCoste has adopted which type of distribution strategy?

A)extensive
B)intensive
C)premium
D)selective

Question 79

What is another name for a channel leader?

A)channel captain
B)channel facilitator
C)distribution supervisor
D)channel gatekeeper

Question 80

Johns Manville is the only manufacturer to offer a complete line of Formaldehyde-free fibreglass building insulation,which offers superior energy efficiency in hard-to-reach cathedral ceilings and flat roof cavities;it is also an excellent sound control for interior floors.As the only manufacturer and patent holder of this revolutionary insulation,Johns Manville has great power over its dealers.What is Johns Manville an example of?

A)a channel authority
B)a channel regulator
C)a channel captain
D)a channel gatekeeper