Deck 12: Deliver the Value Through Supply Chain Management, Channels of Distribution, and Logistics

Question 1

A firm that brings in outside companies to accomplish supply chain activities is using ________.

A)insourcing
B)outsourcing
C)crowdsourcing
D)intensive distribution
E)exclusive distribution

Answer 1

B

Question 2

Channel members can help producers by identifying customer complaints, customer preferences, and new competitors in the market.These are all examples of the ________ function of channel intermediaries.

A)communication
B)marketing
C)promotional
D)transaction
E)management

Answer 2

A

Question 3

Intermediaries that do business with many different manufacturers and many different customers are most accurately referred to as ________.

A)interdependent intermediaries
B)dependent intermediaries
C)independent intermediaries
D)wholesalers
E)retail outlets

Answer 3

C

Question 4

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

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

Question 5

Which of the following is the series of firms or individuals that facilitate(s) the movement of a product from the producer to the final customers?

A)the industrial network
B)the retailer chain
C)the multilevel network
D)the channel of distribution
E)the conventional marketing system

Question 6

Producers benefit from using intermediaries because they ________.

A)offer greater efficiency in making goods available to target markets
B)bring a fresh point of view to strategy development
C)eliminate risk
D)are rarely backlogged with orders
E)will store products indefinitely

Question 7

Functions provided by channel intermediaries that make the purchase process easier for customers and manufacturers are referred to as ________ functions.

A)distributing
B)facilitating
C)management
D)marketing
E)wholesaling

Question 8

Through the practice of insourcing, a company brings in an external company to run its ________.

A)human resource management
B)nonessential operations
C)essential operations
D)value proposition
E)facilitating functions

Question 9

Limited-service merchant wholesalers are less likely than full-service merchant wholesalers to do which of the following?

A)set the prices of the merchandise they sell
B)take title to the merchandise they sell
C)suffer financial losses if the merchandise they sell is damaged or stolen
D)offer marketing assistance or delivery for the products they sell
E)use their own sales force

Question 10

Offering credit to buyers and providing refund services for products are both examples of ________ functions provided by channel intermediaries.

A)communication
B)marketing
C)promotional
D)facilitating
E)management

Question 11

The theft and unauthorized repurposing of intellectual material via the Internet is called ________.

A)information logistics theft
B)non-permission-based downloading
C)online distribution piracy
D)disintermediation
E)taking title

Question 12

Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials to components to final products that are delivered to final buyers.

A)supply chain management
B)channel of distribution management
C)partnership relationship marketing
D)enterprise resource planning
E)knowledge management

Question 13

Which of the following describes a comprehensive approach to collecting, organizing, storing, and retrieving a firm's information assets?

A)logistics
B)knowledge management
C)facilitation
D)enterprise resource planning
E)just in time techniques

Question 14

Which group of independent intermediaries can be divided into the two broad types of full-service and limited-service?

A)brokers
B)agents
C)sales branches
D)specialty wholesalers
E)merchant wholesalers

Question 15

Wholesalers and retailers purchase large quantities of goods from manufacturers but sell only one or a few at a time to many different customers.This process is called ________.

A)creating assortments
B)breaking bulk
C)third-party logistics
D)order processing
E)inventory control

Question 16

When a company uses ________, it brings in an external company to run some of its essential operations.

A)outsourcing
B)insourcing
C)conventional marketing
D)logistics management
E)a vertical marketing system

Question 17

Through a process of ________, traditional intermediaries are being eliminated as many companies question the value added by layers in the distribution channel.

A)knowledge management
B)disintermediation
C)horizontal marketing
D)vertical marketing
E)hybrid marketing

Question 18

Which of the following includes all the activities necessary to convert raw materials into a good or service and put it in the hands of the consumer or business customer?

A)the supply chain
B)the value chain
C)the channel of distribution
D)the retailer chain
E)the industrial network

Question 19

Wholesalers and retailers create efficiencies in the flow of goods from producer to end consumer by ________ when they provide a variety of products in one location.

A)creating assortments
B)just in time processing
C)third-party logistics
D)order processing
E)inventory control

Question 20

Which of the following is the term for the firms and individuals who help move a product to the consumer or the business user?

A)third-party logistics providers
B)channel leaders
C)channel intermediaries
D)enterprise resource planners
E)strategic allies

Question 21

Which of the following is in place when a producer, dealer, wholesaler, retailer, or customer interacts with more than one type of channel?

A)dual or multiple distribution system
B)intermediation
C)knowledge management
D)supply chain management
E)vertical marketing system

Question 22

What are the three major types of vertical marketing systems?

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

Question 23

The owner of a grocery store wants to have non-food items delivered, priced, displayed and inventoried by a wholesaler.Which type of wholesaler best fits the owner's needs?

A)drop shipper
B)cash-and-carry wholesaler
C)truck jobber
D)rack jobber
E)mail-order wholesaler

Question 24

Which of the following statements about a vertical marketing system (VMS) is true?

A)A VMS is a channel in which there is cooperation among channel members at two or more different levels of the channel.
B)Members of a VMS operate totally independently of one another outside of buying and selling one another's products.
C)The three types of vertical marketing systems are independent, conventional, and customized.
D)Channel conflict is a more serious problem in a vertical marketing system than in a conventional marketing system.
E)Conventional marketing systems are more efficient than vertical marketing systems.

Question 25

Once an organization has developed its distribution objectives, it should next ________.

A)identify the channel leader
B)determine a distribution budget
C)select the optimum number of channel levels
D)define the target market and articulate the market segmentation strategy
E)evaluate the internal and external environments

Question 26

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

A)a profit-maximizing strategic plan
B)single ownership
C)mass distribution
D)a limited number of intermediaries
E)contractual agreements

Question 27

An intermediary who ________ legally owns the goods being handled.

A)breaks bulk
B)takes title
C)creates assortments
D)takes consignments
E)selectively distributes

Question 28

The producer-retailer-consumer channel is ________.

A)the most efficient channel
B)also referred to as a triple channel
C)the shortest indirect channel
D)the shortest direct channel
E)a rarely used channel form

Question 29

Which of the following is most likely to force a manufacturer to pay a slotting allowance?

A)a selling agent
B)a merchandise broker
C)a large retail chain
D)a small retailer
E)a rack jobber

Question 30

To a producer of goods, a greater number of channel levels means ________.

A)less distance between producer and end consumer
B)less control
C)more creativity
D)higher taxes
E)multiple distribution systems

Question 31

Manufacturers' ________, also called manufacturers' representatives, represent a buyer or seller on an ongoing basis.

A)brokers
B)franchisers
C)agents
D)retailers
E)intermediaries

Question 32

Which of the following should be the first step in distribution planning?

A)identifying the channel leader
B)determining a distribution budget
C)developing distribution objectives
D)evaluating the internal and external environments
E)determining the desired level of distribution intensity

Question 33

Which of the following are intermediaries that receive fees for facilitating transactions in markets such as real estate, food, and used equipment in which there are a lot of small buyers and sellers?

A)manufacturers' agents
B)selling agents
C)commission merchants
D)merchandise brokers
E)sale mediators

Question 34

Which of the following is a distribution system that uses different channels and communication methods to reach and serve a target market?

A)a vertical marketing system
B)a horizontal marketing system
C)a hybrid marketing system
D)a logistics system
E)an intensive distribution system

Question 35

Ed Barney owns a chain of small gift shops.Before buying merchandise to carry in his store, Barney can visit a ________ where he can examine a manufacturer's products before he stocks his stores.

A)sales office
B)manufacturer's showroom
C)commission merchandise mart
D)merchandise brokerage
E)manufacturer's office

Question 36

Conventional distribution channels consist of one or more ________ producers, wholesalers, and retailers.

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

Question 37

A commission merchant would most likely sell which of the following?

A)agricultural products
B)extractive materials such as coal and iron
C)convenience goods such as gum and candy
D)clothing and textiles
E)real estate

Question 38

Which of the following statements about business-to-business channels is true?

A)Direct channels are more common in business-to-business markets than consumer markets.
B)Business-to-business channels have few parallels with consumer channels.
C)The size of business markets makes indirect channels more efficient.
D)Indirect channels are more common in business-to-business markets than consumer markets.
E)When an industrial distributor is included in a business-to-business channel, the channel is by definition direct.

Question 39

Which of the following is true about sales branches, sales offices, and manufacturers' showrooms?

A)They are all manufacturer-owned intermediaries.
B)They all determine the marketing strategy for the products they sell.
C)They are all independent intermediaries.
D)They all carry inventory and take title to the inventory they carry.
E)They perform the same functions as self-service wholesalers.

Question 40

In business-to-business channels, the functions of a merchant wholesaler are performed by a(n) ________.

A)sales office
B)commission merchant
C)merchant broker
D)business retailer
E)industrial distributor

Question 41

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

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

Question 42

Which of the following is NOT a function of a point-of-sale (POS) system?

A)collecting sales data
B)connecting directly into a store's inventory-control system
C)evaluating bids from potential suppliers
D)collecting data on returns and transfers to other stores
E)automatically sending orders to suppliers

Question 43

Through the use of ________, a company is able to know exactly where a product is located within the distribution channel.

A)ERP
B)RFID
C)PRM
D)VMS
E)JIT

Question 44

Which of the following is the final stop in the distribution channel in which organizations sell goods and services to consumers for their personal use?

A)franchising
B)retailing
C)brokering
D)wholesaling

Question 45

Physical distribution activities include all of the following EXCEPT which one?

A)order processing
B)warehousing
C)materials handling
D)transportation
E)order getting

Question 46

Burger King, Holiday Inn, Avis, and H&R Block tax service are all franchises, which means they are also members of a(n) ________ vertical marketing system (VMS).

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

Question 47

Which type of distribution means limiting distribution of a product to a single outlet in a particular region?

A)exclusive
B)intensive
C)selective
D)independent
E)insourced

Question 48

Which of the following is the process of designing, managing, and improving the movement of products through the supply chain?

A)logistics
B)warehousing
C)materials handling
D)inventory management
E)distribution strategy

Question 49

According to the ________ hypothesis, new retailing forms often begin as low-margin, low-price, low-status operations to challenge established retailers, then become successful, and eventually take the place of the established retailers they had challenged.

A)agent
B)broker
C)wheel-of-retailing
D)warehousing
E)retail life cycle

Question 50

Which of the following do manufacturers typically NOT use as a factor in deciding which mode of transportation to use for a product?

A)dependability
B)cost
C)accessibility
D)responsiveness
E)traceability

Question 51

Which of the following is another name for the channel leader?

A)materials expert
B)distribution facilitator
C)franchiser
D)channel captain
E)logistics leader

Question 52

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)just in time (JIT)
B)supply chain management
C)value chain management
D)logistics management
E)enterprise resource planning (ERP)

Question 53

Which of the following is a logistics activity that involves developing and implementing a process to ensure the firm always has sufficient goods available to meet customers' demands--no more and no less?

A)materials handling
B)inventory control
C)supply chain supervision
D)order processing
E)distribution implementation

Question 54

Marketing logistics involves which of the following types of distribution flows?

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

Question 55

In the ________ stage of the retail life cycle, the retailer often is an aggressive entrepreneur who takes a unique approach to doing business by creating a differential advantage, such as competing on the basis of low price, offering a distinctive assortment, or using a different way to distribute products.

A)expansion
B)introduction
C)extension
D)maturity
E)growth

Question 56

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

A)have greater capacity
B)store goods for longer periods
C)perform other functions, such as breaking bulk
D)primarily be owned by the manufacturer
E)be automated

Question 57

In a ________, two or more companies at the same channel level join together to develop a new marketing opportunity.

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

Question 58

The ________ is a way to categorize retail operations by the conditions they face at different points in their existence.

A)product life cycle
B)retail life cycle
C)pyramid scheme
D)merchandise mix
E)retail placement theory

Question 59

Shoplifting, sweethearting, and retail borrowing are all problems that contribute to ________.

A)off-price retailing
B)shrinkage
C)pyramid schemes
D)understored trade areas
E)pop-up retailing

Question 60

When two or more separately owned retail firms combine, a(n) ________ has occurred.

A)downturn
B)merger
C)expansion
D)shrinkage
E)niche strategy

Question 61

Which of the following is a discount retailer owned by a manufacturer that provides the manufacturer a store to sell off defective merchandise?

A)a specialty store
B)a factory outlet store
C)a department store
D)a general merchandise discount store
E)a warehouse club

Question 62

Store location planners look at a store's ________, the geographic zone that accounts for the majority of its sales and customers.

A)trade area
B)microenvironment
C)primary market
D)traffic paths
E)target market

Question 63

________ combine an economy supermarket with other lower-priced non-food merchandise.

A)Variety stores
B)Category killers
C)Supercenters
D)Box stores
E)Convenience stores

Question 64

Experts predicting that destination retail will be a future trend believe that consumers will soon visit retailers more for ________ than for the basic process of purchasing products.

A)information
B)credit services
C)comparison shopping
D)entertainment
E)social opportunities

Question 65

________ carry a narrow assortment of product lines with deep assortments within those lines.

A)Supermarkets
B)Specialty stores
C)Convenience stores
D)Discount stores
E)Off-price stores

Question 66

For the retailer, the practice of ________ results in lower total sales and, in many cases, damaged merchandise.

A)sweethearting
B)experiential shopping
C)retail borrowing
D)off-price retailing
E)network marketing

Question 67

Which of the following types of retailers have been more successful in Europe than in Canada?

A)convenience stores
B)supermarkets
C)specialty stores
D)warehouse clubs
E)hypermarkets

Question 68

Which of the following is the term for how the marketplace perceives a retailer relative to the competition?

A)store layout
B)store atmosphere
C)merchandise assortment
D)store image
E)market segmentation

Question 69

Which type of store carries a wide variety of items and offers a deep selection, but has been squeezed in recent years between more focused and more service-oriented specialty stores on the one hand and more efficient, lower-priced discounters on the other?

A)department
B)factory outlet
C)off-price
D)hypermarket
E)wholesaler

Question 70

A ________ is a set of related products a retailer offers.

A)merchandise mix
B)merchandise assortment
C)merchandise breadth
D)product depth
E)product line

Question 71

Which of the following is NOT a benefit provided by e-commerce?

A)It provides consumers the satisfaction of instant gratification.
B)It reduces the cost of doing business.
C)It enables specialized businesses to be more successful.
D)It provides consumers more access to pricing information.
E)It broadens product choices for consumers in smaller communities.

Question 72

Which of the following prohibits door-to-door selling unless prior permission has been granted by the household?

A)the National Do Not Call Registry
B)a Green River Ordinance
C)permission-based e-marketing
D)network marketing
E)a party plan system

Question 73

Which of the following is NOT an element involved in the creation of store atmospherics?

A)color
B)furnishings
C)smells
D)sounds
E)knowledgeable personnel

Question 74

________, such as Walmart Canada and Old Navy, provide merchandise return and offer credit, but customers select merchandise without much assistance.

A)Self-service retailers
B)Full-service retailers
C)Specialty retailers
D)Off-price retailers
E)Limited-service retailers

Question 75

Which of the following is any method a firm uses to complete an exchange that does NOT require a customer to visit a store?

A)kiosk merchandising
B)nonstore retailing
C)direct selling
D)exchange retailing
E)e-commerce

Question 76

Retail stores are often classified on the breadth and depth of their merchandise assortment.The breadth of the merchandise is the number of different lines available.The merchandise breadth may be classified as ________ or ________.

A)narrow; broad
B)narrow; deep
C)shallow; broad
D)shallow; deep
E)narrow; full

Question 77

________ e-commerce is the online exchange between companies and individual consumers.

A)B2B
B)B2C
C)P2P
D)C2C
E)C2B

Question 78

A retail site's storefront and marquee are both examples of ________.

A)store layout
B)visual merchandising
C)experiential marketing
D)trade areas
E)customer services

Question 79

In ________, a master distributor recruits other people to become distributors.The master distributor sells the company's products to the people she entices to join and receives commissions on all the merchandise sold by the people she recruits.

A)multilevel marketing
B)integrated sales
C)disintermediated sales
D)hierarchical sales
E)party plan systems

Question 80

Through the ________ of direct selling, people tend to get caught up in the "group spirit" and buy things they would not normally buy if alone.

A)multilevel network
B)pyramid scheme
C)automatic vending system
D)door-to-door sales
E)party plan system