Deck 13: Managing Marketing Channels and Supply Chains

Question 1

A(n) _________ is any intermediary between manufacturer and end-user markets.

A)middleman
B)wholesaler
C)retailer
D)broker
E)agent

Answer 1

A

Question 2

Agent refers to

A)any intermediary with legal authority to act on behalf of the manufacturer.
B)independent firms or individuals whose principal function is to transport goods.
C)any intermediary who takes ownership of a manufacturer's goods or services and then finds multiple buyers for those goods or services.
D)a manufacturer's paid representative and acting voice in initial sales transactions.
E)a manufacturing "match-maker" who actively seeks out potential buyers and brings them to the manufacturer; if a "match" is made, the agent receives a fixed fee.

Answer 2

A

Question 3

Remax assists sellers in marketing their property and selling it for the highest possible price under the best terms.Remax is an example of a

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

Answer 3

B

Question 4

Middleman refers to

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 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 the consumer.
E)an intermediary who sells to ultimate consumers.

Question 5

Any intermediary with legal authority to act on behalf of the manufacturer is referred to as a

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

Question 6

A(n) _________ is an intermediary who sells to other intermediaries.

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

Question 7

Establishments primarily engaged in wholesaling livestock, grain and other farm products would be classified as

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

Question 8

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

A)line of distribution.
B)marketing channel.
C)delivery consortium.
D)allocation channel.
E)distribution mix.

Question 9

When callaway opened its "online" store, they wanted to be very careful not to ruin the good relationship they had with their loyal trade partners.To make sure this did not happen, Callaway

A)credited retail stores for online sales.
B)offered their retail partners greater trade allowances.
C)offered their retail partners Callaway stock options.
D)discounted merchandise in retail outlets but not online.
E)offered incentives for retailers if they encouraged their store customers to shop online.

Question 10

Any intermediary between manufacturer and end-user markets is referred to as a(n)

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

Question 11

An intermediary who sells to consumers is referred to as a(n) _________.

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

Question 12

An intermediary who sells to other intermediaries, usually to retailers; usually in consumer markets is referred to as a(n) _________.

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

Question 13

Callaway markets its products through on-and off-course golf retailers and sporting goods retailers, and also has its own online store, which makes it a full-fledged

A)cross channel marketer
B)multichannel marketer
C)industrial marketer
D)direct marketer
E)merchant marketer

Question 14

A _________ can be compared to a pipeline through which water flows - making possible the flow of goods from a producer, through intermediaries, to a buyer.

A)chain of command
B)marketing channel
C)marketing hierarchy
D)marketing agent
E)marketing middleman

Question 15

Wholesaler refers to

A)an intermediary who sells to other intermediaries, usually to retailers; usually in consumer markets.
B)independent firms or individuals whose principal function is to bring buyers and sellers together.
C)any intermediary who takes ownership of a manufacturer's goods or services and then finds multiple buyers for those goods or services.
D)a manufacturer's paid representative and acting voice in initial sales transactions.
E)a manufacturing "match-maker" who actively seeks out potential buyers and brings them to the manufacturer; if a "match" is made, the agent receives a fixed fee.

Question 16

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

A)consumer
B)retailer
C)wholesaler
D)brokerage firm
E)middleman

Question 17

A(n) _________ is an intermediary who sells to consumers.

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

Question 18

Retailer refers to

A)an intermediary who sells only to other intermediaries.
B)a manufacturer's paid representative and acting voice in initial sales transactions.
C)an intermediary who sells to other intermediaries, usually to retailers.
D)an intermediary who takes possession of a product, alters it in some way, and sells it to the ultimate consumer.
E)an intermediary who sells to consumers.

Question 19

You probably own several pairs of shoes.Further, it is highly likely you purchased those shoes at retail stores located in a shopping mall.It is quite unlikely you bought the shoes directly from the manufacturer.In fact, most goods are brought to you via a(n) _________, which consists of several organizations involved in the process of marketing products or services and making them available for our use as consumers.

A)organizational chain of command
B)marketing chain of command
C)organizational hierarchy
D)marketing hierarchy
E)marketing channel

Question 20

Jay stops at the shopping mall to purchase a new pair of jeans from the diesel store.He is the ultimate consumer in a pipeline from the producer through intermediaries including the clothing store.This pipeline is actually a

A)consumer market.
B)marketing intermediary.
C)marketing channel.
D)transactional function.
E)logistical function.

Question 21

A variety of terms are used for marketing intermediaries.They vary in specificity and use in consumer and business markets.According to figure 13-1 above, the term that would be used to describe the intermediary in cell "E," would be _________.

A)retailer
B)middleman
C)wholesaler
D)distributor
E)agent or broker

Question 22

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

A)channeling
B)strategizing
C)acting as a liaison
D)risk taking
E)merchandising

Question 23

Automakers such as Chrysler, Ford, and General Motors utilize a __________ network.

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

Question 24

Assuming business risks in the ownership of inventory that can become obsolete or deteriorate would be an example of a __________ function.

A)transactional
B)logistical
C)facilitating
D)grading
E)storing

Question 25

Distributor refers to

A)an intermediary who sells only to manufacturers.
B)intermediaries who perform a variety of distribution functions, including selling, maintaining inventories, extending credit, and so on.
C)a manufacturer's paid representative and acting voice in initial sales transactions.
D)an intermediary who sells to other intermediaries, usually to retailers.
E)an intermediary who takes possession of a product; alters it in some way; and sells it to the ultimate consumer.

Question 26

Several artists in Charleston, South Carolina, have created an arrangement to sell their paintings.They have set up an art gallery in downtown Charleston so tourists and art lovers can look at their paintings and buy the ones they like.Each artist takes a turn acting as the sales clerk at the gallery.In terms of the marketing channel, the artist who is on duty in the gallery is acting as a(n) _________.

A)ultimate consumer
B)retailer
C)wholesaler
D)brokerage firm
E)end user

Question 27

The "risk" in a transitional function refers to

A)unpredictable costs of transportation because of fuel prices.
B)product liability from poorly produced products.
C)risks in the ownership of inventory that can become obsolete or deteriorate.
D)the inability to stock merchandise in anticipation of sales.
E)investments in new product development.

Question 28

Logistical function activities include

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

Question 29

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

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

Question 30

A variety of terms are used for marketing intermediaries.They vary in specificity and use in consumer and business markets.According to figure 13-1 above, the term that would be used to describe the intermediary in cell "C," would be _________.

A)retailer
B)middleman
C)wholesaler
D)distributor
E)agent or broker

Question 31

Intermediaries who perform a variety of distribution functions, including selling, maintaining inventories, extending credit, and so on are referred to as _________.

A)dealers
B)brokers
C)retailers
D)wholesalers
E)distributors

Question 32

A variety of terms are used for marketing intermediaries.They vary in specificity and use in consumer and business markets.According to figure 13-1 above, the term that would be used to describe the intermediary in cell "A," would be _________.

A)retailer
B)middleman
C)wholesaler
D)distributor
E)agent or broker

Question 33

The "risk" in a transitional function refers to

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

Question 34

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

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

Question 35

Creating product assortments from several sources to serve customers would be an example of a __________ function.

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

Question 36

The three basic functions performed by intermediaries are

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

Question 37

When marketing channel members are engaged in gathering, storing, sorting, and transporting products to buyers, they are performing __________ functions.

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

Question 38

A variety of terms are used for marketing intermediaries.They vary in specificity and use in consumer and business markets.According to figure 13-1 above, the term that would be used to describe the intermediary in cell "B," would be _________.

A)retailer
B)middleman
C)wholesaler
D)distributor
E)agent or broker

Question 39

A more imprecise term than distributor that can mean the same as distributor, retailer, wholesaler, and so forth.According to figure 13-1 above, the term that would be used to describe the intermediary in cell "f," would be _________.

A)dealer
B)retailer
C)middleman
D)wholesaler
E)agent or broker

Question 40

A variety of terms are used for marketing intermediaries.They vary in specificity and use in consumer and business markets.According to figure 13-1 above, the term that would be used to describe the intermediary in cell "D," would be _________.

A)retailer
B)middleman
C)wholesaler
D)distributor
E)agent or broker

Question 41

When producers and ultimate consumers deal with each other one-on-one, it is referred to as a(n)

A)strategic channel alliance.
B)dual distribution channel.
C)marketing channel.
D)indirect channel.
E)direct channel.

Question 42

Intermediaries make the selling of goods more efficient by

A)eliminating inventory costs.
B)identifying target markets.
C)reducing manufacturing costs.
D)minimizing the number of sales contacts between producer and consumer.
E)maximizing the number of contacts necessary between producer and consumer.

Question 43

Facilitating function activities include

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

Question 44

Inspecting, testing, or judging products, and assigning them quality grades would be an example of a __________ function.

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

Question 45

Figure 13-2 above, shows that there are three functions that intermediaries perform.What is the function ("A," "B,", or "C") whose activities include financing, grading, and marketing information and research?

A)transactional function
B)middleman function
C)facilitating function
D)logistical function
E)operational function

Question 46

A(n) __________ exists when producers and ultimate consumers deal one-on-one with each other.

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

Question 47

Intermediaries make possible the flow of products from producers to ultimate consumers by performing three basic functions.According to figure 13-2 above, the term that would be used to describe the intermediary function in cell "C," would be _________.

A)transactional function
B)middleman function
C)facilitating function
D)logistical function
E)operational function

Question 48

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

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

Question 49

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 50

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 other consumers?

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

Question 51

Direct channel refers to

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

Question 52

Before consumers see a movie, it is assigned a rating such as g or pg based on its language and content.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 53

Physically moving a product to customers would be an example of a __________ function.

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

Question 54

Intermediaries perform facilitating function activities, which assist producers in making goods 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 55

Two students, Nick and Lee, were studying for an upcoming exam in their introduction to marketing course.While studying the chapter on marketing channels and wholesalers, Nick made the following statement: "if it weren't for wholesalers and other intermediaries in the channel of distribution, the products we buy would cost a lot less!" after contemplating Nick's statement, Lee said, "wait a minute.We learned in class that channel intermediaries actually make marketing more efficient by minimizing the number of transactions necessary to sell products." Lee's statement refers to

A)value created by channel intermediaries.
B)channel intermediary development.
C)price inflation by channel intermediaries.
D)channel intermediary promotional efforts.
E)an inaccurate statement by Lee; Nick was correct.

Question 56

Purchasing in large quantities and breaking into smaller amounts desired by customers would be an example of a __________ function.

A)transactional
B)logistical
C)facilitating
D)transporting
E)risk taking

Question 57

Assembling and protecting products at a convenient location to offer better customer service would be an example of a __________ function.

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

Question 58

Intermediaries make possible the flow of products from producers to ultimate consumers by performing three basic functions.According to figure 13-2 above, the term that would be used to describe the intermediary function in cell "A," would be _________.

A)transactional function
B)middleman function
C)logistical function
D)facilitating function
E)operational function

Question 59

Intermediaries make possible the flow of products from producers to ultimate consumers by performing three basic functions.According to figure 13-2 above, the term that would be used to describe the intermediary function in cell "B," would be _________.

A)transactional function
B)middleman function
C)logistical function
D)facilitating function
E)operational function

Question 60

Extending credit to customers would be an example of a __________ function.

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

Question 61

A channel that includes intermediaries that are between the producer and consumer and perform numerous channel functions are referred to as a(n)

A)indirect channels.
B)skewed channels.
C)multi-level channels.
D)full-service channels.
E)limited-service channels.

Question 62

Figure 13-4 above, shows the four most common marketing channels for industrial products and services.Cubicle "c" would be a good example of purchasing a _________.

A)iMB mainframe
B)caterpillar excavator
C)electrical motors
D)industrial fasteners
E)bombardier aircraft

Question 63

A small electronics company manufactures a line of low to moderate quality stereo components that are distributed through wholesalers to mass-market retailers such as wal-mart.The electronics company has begun production of a small line of high quality, professional studio-model components.How should the small electronics company best distribute its new products?

A)use its established channel
B)distribute directly to mass market retailers
C)distribute through agents who sell to specialty electronics stores who will feature the new line
D)sell directly to specialty electronics stores who will feature the new line
E)establish its own chain of electronics retail stores

Question 64

The most indirect channel employed when where many small manufacturers and many small retailers and an intermediary are is used to help coordinate a large supply of the product would best be represented in Cubicle "d" in figure 13-3 above.Which of the following products would be a good example of purchasing in this channel?

A)dental services
B)automobiles
C)pool supplies
D)rugs made in india
E)candy bars

Question 65

Figure 13-4 above, shows the four most common marketing channels for industrial products and services.Cubicle "d" would be a good example of purchasing a _________.

A)supercomputer
B)electrical products
C)boeing aircraft
D)caterpillar dozer
E)industrial fasteners

Question 66

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

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

Question 67

Figure 13-4 above, shows the four most common marketing channels for industrial products and services.Cubicle "b" would be a good example of purchasing a _________.

A)cray supercomputer
B)magnetic resonance imaging machine
C)john Deere excavator
D)industrial fasteners
E)electrical products

Question 68

Figure 13-4 above, shows the four most common marketing channels for industrial products and services.Cubicle "a" would be a good example of purchasing a _________.

A)boeing aircraft
B)caterpillar lift truck
C)john Deer tractor
D)fencing system
E)electrical products

Question 69

A commonly used indirect channel moves product from producer to retailer to consumer.This channel is used when the cost of inventory makes it too expensive to use a wholesaler or 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 70

Figure 13-3
Figure 13-3 above, represents four common marketing channels for consumer products and services which differ by the kind and number of intermediaries.Cubicle "c" would be a good example of purchasing a _________.

A)candy bar
B)new vehicle
C)car insurance
D)boston pizza
E)ticket to a rock concert

Question 71

A commonly used indirect channel moves product from producer to retailer to consumer.This channel is used when the retailer is large and can buy in large quantities from a producer or when

A)the cost of maintaining inventory is low.
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 72

Industrial distributor refers to

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

Question 73

In an episode of the Glee television series, members of the glee club were selling home-baked cupcakes at school, to raise money.The students selling their cupcakes without any intermediary would be an example of

A)personalized distribution.
B)non-permanent distribution.
C)informal channel of distribution.
D)direct channel of distribution.
E)indirect channel of distribution.

Question 74

Indirect channels for consumer goods

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)occurs when a retailer sells its product in a store and on the internet.

Question 75

An intermediary that performs a variety of marketing channel functions involving selling, stocking, and delivering a full product assortment and financing, is referred to as a(n) _________.

A)agent
B)wholesaler
C)disintermediary
D)channel captain
E)industrial distributor

Question 76

When dell computer sells made-to-order PCs via its web site, it is an example of which type of marketing channel?

A)direct channel
B)indirect channel
C)strategic channel alliances
D)marketing channel
E)dual distributive channel

Question 77

Figure 13-3
Figure 13-3 above, depicts four common marketing channels for consumer products and services which differ by the kind and number of intermediaries.Cubicle "a" would be a good example of which of the following?

A)automobiles
B)jewelry
C)insurance products
D)construction machinery
E)candy

Question 78

Schwan's Sales Enterprises of Marshall, Minnesota, markets a full line of frozen foods in 50 countries, including the United States door-to-door salespeople who sell from refrigerated trucks.This particular method of distribution is referred to as a(n)

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

Question 79

Figure 13-3
Figure 13-3 above, depicts four common marketing channels for consumer products and services which differ by the kind and number of intermediaries.Cubicle "b" would be a good example of which of the following?

A)services of an insurance company
B)food delivered to your door
C)purchasing of a vehicle
D)services of a private nurse
E)purchasing legal services

Question 80

In a direct channel, all channel functions are performed by _________.

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