Deck 15: Managing Marketing Channels and Supply Chains

Question 1

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.

Answer 1

A

Question 2

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) distribution matrix.
C) retailer.
D) wholesaler.
E) distributor.

Answer 2

A

Question 3

__________ is any intermediary between a manufacturer and end-user markets.

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

Answer 3

D

Question 4

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 5

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

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

Question 6

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.

Question 7

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 8

__________ 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 hierarchy
C) marketing agent
D) marketing channel
E) marketing middleman

Question 9

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) manufacturer
C) wholesaler
D) retailer
E) distributor

Question 10

__________ is an intermediary who sells to other intermediaries.

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

Question 11

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 12

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

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

Question 13

__________ is an intermediary who sells to consumers.

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

Question 14

Jaffar (Jeff)Tabrizi is the owner and president of Tabrizi Oriental Rugs located in Toronto,Canada.He personally shops the world over,handpicks and orders authentic and beautiful handmade rugs,which he has shipped to Canada,where he sells them through his brick-and-mortar stores and at his www.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 15

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

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

Question 16

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 17

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 18

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

Question 19

probably own several pairs of shoes.Further,it is highly 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 via a __________,which consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.

A) marketing intermediary
B) distribution hierarchy
C) marketing chain of command
D) distribution matrix
E) marketing channel

Question 20

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

A) offered its retail partners greater trade allowances.
B) offered its retail partners Callaway stock options.
C) had one of its retail stores get the credit for an online sale.
D) offered incentives for retailers if they encouraged their store customers to shop online.
E) discounted merchandise in retail outlets but not online.

Question 21

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

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

Question 22

Figure 15-1
variety of terms are used for marketing intermediaries.According to Figure 15-1 above,"E" represents a(n)__________.

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

Question 23

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 24

Figure 15-1
variety of terms are used for marketing intermediaries.According to Figure 15-1 above,"B" represents a(n)__________.

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

Question 25

Figure 15-1
variety of terms are used for marketing intermediaries.According to Figure 15-1 above,"C" represents a(n)__________.

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

Question 26

Figure 15-1
variety of terms are used for marketing intermediaries.According to Figure 15-1 above,"A" represents a(n)__________.

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

Question 27

Figure 15-1
variety of terms are used for marketing intermediaries.According to Figure 15-1 above,"D" represents a(n)__________.

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

Question 28

marketing channel intermediary that purchases merchandise for resale at retail outlets would be an example of a(n)__________ function.

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

Question 29

Figure 15-2
Intermediaries perform three basic functions.According to Figure 15-2 above,"A" represents a(n)__________.

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

Question 30

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

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

Question 31

Figure 15-2
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 32

three basic functions intermediaries perform 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) transactional functions, logistical functions, and facilitating functions.
E) facilitating functions, accommodating functions, and implementation functions.

Question 33

"risk" in 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, which may become obsolete.
D) trying new promotional campaigns.
E) investments in new product development.

Question 34

Logistical function activities include

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

Question 35

Figure 15-2
Intermediaries perform three basic functions.According to Figure 15-2 above,"C" represents a(n)__________.

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

Question 36

Figure 15-2
Intermediaries perform three basic functions.According to Figure 15-2 above,"B" represents a(n)__________.

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

Question 37

distributor refers to

A) 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 to other intermediaries, usually to retailers.
E) an intermediary who sells only to other intermediaries.

Question 38

Figure 15-1
variety of terms are used for marketing intermediaries.According to Figure 15-1 above,"F" represents a(n)__________.

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

Question 39

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) channel intermediary development.
B) the relationships between channel intermediaries themselves.
C) the value created by channel intermediaries.
D) channel intermediary promotional efforts.
E) an inaccurate statement by Lee; Nick was correct.

Question 40

Intermediaries who perform a variety of 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 41

__________ exists when producers and ultimate consumers deal one-on-one with each other.

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

Question 42

Facilitating function activities include

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

Question 43

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 44

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

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

Question 45

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

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

Question 46

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

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?

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

Question 48

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 49

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 50

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 51

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

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

Question 52

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 53

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 54

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

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

Question 55

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

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

Question 56

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

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

Question 57

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 58

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

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

Question 59

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

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

Question 60

marketing channel members are engaged in gathering,sorting,and dispersing products,they are performing __________ functions.

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

Question 61

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 62

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

Question 63

Figure 15-3
Figure 15-3 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) insurance products
B) direct-to-home food products
C) automobiles
D) construction machinery
E) candy

Question 64

Figure 15-3
Figure 15-3 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 65

Figure 15-3
Figure 15-3 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) candy bars
B) automobiles
C) car insurance
D) dental services
E) tickets to a rock concert

Question 66

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 67

Figure 15-3
Figure 15-3 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) automobiles
B) jewelry
C) construction machinery
D) candy
E) insurance products

Question 68

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 alliances
C) marketing channel
D) dual distributive channel
E) direct channel

Question 69

Figure 15-3
Figure 15-3 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 70

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 71

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

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

Question 72

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

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

Question 73

small electronics company manufactures a line of low- to moderate-quality stereo components that are distributed through wholesalers to mass-market retailers such as Walmart.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 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 74

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 75

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

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

Question 76

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 77

Figure 15-3
Figure 15-3 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 78

Figure 15-3
Figure 15-3 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 79

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 15-3 above.Which of the following products would most likely be marketed using this kind of channel?

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

Question 80

channel that includes intermediaries that are between the producer and consumer 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