Deck 12: Managing Marketing Channels and Supply Chains

Question 1

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.

Answer 1

A

Question 2

A 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 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 who sells to ultimate consumers.

Answer 2

C

Question 3

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

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

Answer 3

D

Question 4

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

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

Question 5

Callaway Golf 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)remarketer.

Question 6

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

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

Question 7

Any intermediary with legal authority to act on behalf of the manufacturer is referred to as a(n) __________.

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

Question 8

An imprecise terms for intermediaries who perform a variety of functions, including selling, maintaining inventories, extending credit, and so on, are referred to as __________.

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

Question 9

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 10

Jeff Tabrizi is the owner of Tabrizi Oriental Rugs located in Toronto, Canada. He shops the world over, handpicks, and orders beautiful, authentic 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, Jeff is acting as a(n) __________.

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

Question 11

A retailer refers to

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

Question 12

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

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

Question 13

A distributor refers to

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

Question 14

When Callaway Golf opened its online store, it wanted to be sensitive to its retail channel. It did this by

A)offering its retail partners greater trade allowances.
B)offering its retail partners Callaway stock options.
C)creating a platform with original content that helps consumers, whichever channel they use.
D)offered incentives for retailers if they encouraged their store customers to shop online.
E)discounted merchandise in retail outlets but not onlinE.Callaway Golf's commitment to creating original content helps to give consumers a better feel for the company and its product when they go to purchase equipment online and at retail.

Question 15

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 16

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 those from other artists. She only collects a percentage on each piece sold. In terms of the marketing channel, the gallery is a(n) __________.

A)ultimate consumer
B)manufacturer
C)wholesaler
D)agent
E)dealer

Question 17

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

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

Question 18

A wholesaler refers to

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

Question 19

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 known as a

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

Question 20

An 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 them.
D)a manufacturer's paid representative and acting voice in initial sales transactions.
E)a manufacturing "matchmaker" who actively seeks out potential consumers and brings them to retailers.

Question 21

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 for and research of

Question 22

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

A)broker
B)buying committee
C)agent
D)dealer
E)supplier

Question 23

A variety of terms are used for marketing intermediaries. According to Figure 12-1 above, E represents a(n) __________.

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

Question 24

A variety of terms are used for marketing intermediaries. According to Figure 12-1 above, C represents a(n) __________.

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

Question 25

Intermediaries perform three basic functions. According to Figure 12-2 above, Box A represents a(n) __________.

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

Question 26

A marketing channel intermediary that contacts potential customers, promotes products, and seeks orders would be engaging in a(n) __________ function.

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

Question 27

A variety of terms are used for marketing intermediaries. According to Figure 12-1 above, B represents a(n) __________.

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

Question 28

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 though it may become obsolete.
D)trying new promotional campaigns that are unproven with consumers.
E)investments in new product development even when the product has a low chance of long-term success.

Question 29

Automakers such as Chrysler, Ford, and General Motors utilize a __________ network to sell cars to consumers.

A)dealer
B)broker
C)supplier
D)agent
E)wholesaler

Question 30

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 31

Intermediaries perform three basic functions. According to Figure 12-2 above, C represents a(n) __________.

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

Question 32

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

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

Question 33

A variety of terms are used for marketing intermediaries. According to Figure 12-1 above, Box A represents a(n) __________.

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

Question 34

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

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

Question 35

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 36

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 37

A variety of terms are used for marketing intermediaries. According to Figure 12-1 above, F represents a(n) __________.

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

Question 38

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 39

Intermediaries perform three basic functions. According to Figure 12-2 above, B represents a(n) __________.

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

Question 40

A variety of terms are used for marketing intermediaries. According to Figure 12-1 above, D represents a(n) __________.

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

Question 41

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 42

Egg distributors determine the relative quality of the product and put a rating on the packaging, such as Grade A or Grade AA. 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 43

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

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

Question 44

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

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

Question 45

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 46

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 strip 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 47

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 48

Extending credit to customers would be an example of a __________ function performed by channel intermediaries.

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

Question 49

Intermediaries perform facilitating function activities, 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 providing marketing information and research.

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 its other customers here?

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

Question 51

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

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

Question 52

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

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

Question 53

A direct channel is when

A)producers and end-users deal with each other on a one-on-one basis.
B)the producer and consumer and 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 54

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

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

Question 55

Physically moving a product to customers would be an example of a __________ function performed by channel intermediaries.

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

Question 56

Facilitating function activities include

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

Question 57

Though uninformed consumers may not appreciate the extra markups from channel members, the four utilities each provide methods of

A)channel intermediary development.
B)relationship management between channel intermediaries themselves.
C)value creation by channel intermediaries.
D)channel intermediary promotional efforts.
E)a way to recoup cost overruns.

Question 58

A snack vending machine located in a university building that students use between classes when hungry creates both __________ utility.

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

Question 59

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

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

Question 60

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

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

Question 61

A commonly used indirect channel moves product from producer to retailer to consumer. This channel is used 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 62

Figure 12-3 above depicts four common marketing channels for consumer products and services that differ by the kind and number of intermediaries. Channel B would be an appropriate marketing channel for which of the following?

A)State Farm insurance services
B)Schwan direct-to-home food products
C)Toyota automobiles
D)John Deere construction machinery
E)Hershey's candy

Question 63

Figure 12-3 above depicts the four most common marketing channels for consumer products and services. Z represents

A)consumers.
B)industrial users.
C)wholesalers.
D)agents or brokers.
E)retailers.

Question 64

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 65

Figure 12-3 above depicts the four most common marketing channels for consumer products and services. W represents

A)consumers.
B)industrial users.
C)wholesalers.
D)agents or brokers.
E)retailers.

Question 66

Figure 12-3 above depicts the four most common marketing channels for consumer products and services. Y represents

A)consumers.
B)industrial users.
C)wholesalers.
D)agents or brokers.
E)retailers.

Question 67

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(n) __________.

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

Question 68

-The most indirect marketing channel is employed where many small manufacturers and many small retailers and other intermediaries are used to help coordinate a large supply of the product. This channel is represented in Channel D in Figure 12-3 above. Which of the following 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 69

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 70

A commonly used indirect channel moves product from producer to retailer to consumer. 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 71

Figure 12-3 above depicts four common marketing channels for consumer products and services that differ by the kind and number of intermediaries. Channel C would be an appropriate marketing channel for __________.

A)Hershey's candy
B)Toyota automobiles
C)State Farm car insurance
D)Aspen dental services
E)Ticketmaster tickets to a rock concert

Question 72

Schwan's Sales Enterprises of Marshall, Minnesota, markets a full line of frozen foods in 49 states and parts of Canada using door-to-door salespeople who sell from its refrigerated trucks. This particular method of distribution is referred to as a(n)

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

Question 73

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

Question 74

A small electronics company has begun production of a small line of high-quality, professional studio-model components targeted at audiophiles who shop at thousands of specialty stores across the U.S. How should the small 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 who 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 75

In a business marketing channel, an industrial distributor refers to

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 salesforce 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 76

Figure 12-3 above depicts four common marketing channels for consumer products and services that differ by the kind and number of intermediaries. Channel A would be an appropriate marketing channel for which of the following?

A)Toyota automobiles
B)Shane Company jewelry
C)John Deere construction machinery
D)Hershey's candy
E)State Farm insurance services

Question 77

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

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

Question 78

In an episode of the Glee television series, members of the glee club sold home-baked cupcakes at school to raise money. Students selling the cupcakes that they made to others that would enjoy them would be an example of a(n)

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

Question 79

Figure 12-3 above depicts the four most common marketing channels for consumer products and services. X represents

A)consumers.
B)industrial users.
C)wholesalers.
D)agents or brokers.
E)retailers.

Question 80

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

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