Deck 14: Delivering Value Through Supply Chains and Logistics

Question 1

Marketers know that ________ may be the only one of the four Ps to offer an opportunity for competitive advantage.

A)promotion
B)product
C)place
D)price
E)None of the above

Answer 1

C

Question 2

________ activities handle advertising,promotion,channel selection and pricing.

A)Inbound raw materials
B)Production
C)Outbound finished products
D)Marketing
E)Customer service

Answer 2

D

Question 3

Hewlett-Packard uses hundreds of suppliers in manufacturing its computers and it sells those items through hundreds of online and off-line retailers worldwide.How is this a channel of distribution?

Answer 3

A channel of distribution is when a series of firms or individuals facilitate the movement of a product from the producer to the final customer.Hewlett-Packard is working with companies who make parts that are integrated to become computers that are sold to customers.

Question 4

The difference between a supply chain and a channel of distribution is that ________.

A)not all members of the channel of distribution sell the same product
B)all channel members use the same pricing methods
C)supply chains include companies that supply materials for production plus transport to final consumer
D)not all members of the channel of distribution are in the supply chain
E)supply chain members all use the same promotion methods

Question 5

Distribution channels create efficiencies by reducing the number of transactions necessary for goods to flow from different manufacturers to large numbers of customers.One of the ways this occurs is through ________.

A)relationship management
B)creating assortments
C)cost-based pricing
D)the creation of atmospherics
E)the absence of economies of scale

Question 6

A channel of distribution may include ________.

A)channel intermediaries
B)indirect channels
C)direct channels
D)A and B
E)A,B,and C

Question 7

________ functions such as providing parts and repairs make the purchase process easier for consumers and manufacturers.

A)Distribution
B)Facilitating
C)Intermediary
D)Expediting
E)Purchasing

Question 8

A/n ________ is a series of companies or individuals that facilitate the movement of a product from the producer to the final customers.

A)value system chain
B)retailer chain
C)marketing pipeline
D)channel of distribution
E)industrial network

Question 9

________ are the firms and individuals who help move the product to the consumer or the business user.

A)Futurists
B)Distribution handlers
C)Strategic alliances
D)Channel intermediaries
E)Globalised companies

Question 10

Waverly is a manufacturer of wallpaper and matching fabrics that can be used to make curtains,bedspreads,tablecloths,and chair coverings.Wholesalers buy the Waverly products and distribute them to leading department stores,major specialty stores,and independent paint and wallpaper stores.This is an example of a/n ________.

A)value system chain
B)channel of distribution
C)marketing pipeline
D)retailer chain
E)industrial network

Question 11

________ transforms the materials into final product form,such as by machining,packaging,and assembly.

A)Inbound raw materials
B)Production
C)Outbound finished products
D)Marketing
E)Customer service

Question 12

The ________ encompasses all the activities a firm does to create products and services that in turn create value for the consumer and make a profit for the company.

A)channel of distribution
B)value chain
C)goods supplying chain
D)industrial network
E)retailer chain

Question 13

Which of the following is the best example of a direct channel?

A)Family Dollar Store sells modelling clay to school-aged children.
B)A wholesaler sells candy to convenience stores that then sell the candy to store patrons.
C)A farmer sells corn to the Hughes household who will eat it for supper.
D)A farmer in Colombia sells flowers to an international broker who makes sure the flowers reach consumers in Australia and New Zealand.
E)J&L Manufacturing Company sells flat-pack desks to The Design Centre,and The Design Centre then sells it to consumers.

Question 14

Channels of distribution ________.

A)do not create any kind of utility
B)do not create time or place utility
C)create promotion,product,and place utility
D)create time,place,ownership,and form utility
E)create time,place,and ownership utility

Question 15

Compare and contrast the value chain,the supply chain and the channel of distribution and indicate the importance of each.

Question 16

Intermediaries also ________.

A)provide information about customer complaints,changing preferences and new competitors
B)provide the sales force with marketing communications
C)purchase products to make available to retailers who in turn manage transactions with customers
D)provide two-way communication for manufacturers
E)All of the above

Question 17

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

A)bulk-breaking
B)relationship management
C)creating assortments
D)the creation of atmospherics
E)cross-docking

Question 18

Which of the following are examples of facilitating functions that might be performed by a retailer of large appliances?

A)Provide customers with a repair service.
B)Give refunds if customers are dissatisfied with their appliance purchases.
C)Stock and sell repair parts to customers.
D)Offer credit to customers who want to buy an appliance.
E)All of the above

Question 19

________ activities such as installation or repair enhance or maintain the value of the product.

A)Inbound raw materials
B)Production
C)Outbound finished products
D)Marketing
E)Customer service

Question 20

During the ________ activity in the value chain stage,the company receives materials it needs to manufacture its products.

A)inbound raw materials
B)production
C)outbound finished product
D)marketing
E)customer service

Question 21

You are in the market to purchase a cell phone.You plan on purchasing the phone,the battery pack,a carrying case,and a charging device that can be used in your car.Identify all of the transactions that will be necessary if you purchase all of the mentioned items without intermediaries.Which transactions will be necessary if you purchase all of the mentioned items with intermediaries?

Question 22

What is disintermediation? How do marketers and consumers benefit from disintermediation? Provide a marketplace example.

Question 23

The fact Brenda can visit her local supermarket and buy a dozen roses,a litre of milk,two birthday cards,a bag of cat litter,and a pan for roasting a chicken illustrates how channels of distribution benefit consumers by ________.

A)the creation of atmospherics
B)creating assortments
C)the absence of economies of scale
D)relationship management
E)piggybacking

Question 24

Distribution channels create efficiencies by reducing the number of transactions necessary for goods to flow from many different manufacturers to large numbers of customers.Discuss two ways that they create efficiencies and provide an example of each.

Question 25

________ is/are a comprehensive approach to collecting,organising,storing,and retrieving a firm's information assets.

A)Logistics
B)Hybrid marketing system
C)Facilitating functions
D)Knowledge management
E)Intensive distribution

Question 26

Bruce can visit his local hardware store and buy one 4-inch paintbrush and not the case of 24 that the retailer had to buy.This is an example of ________.

A)the creation of atmospherics
B)relationship management
C)risk taking
D)breaking bulk
E)creating assortments

Question 27

How might the internet affect the operations of a local DVD rental outlet?

Question 28

________ do business with many different manufacturers and customers and are not controlled by any manufacturer.

A)Interdependent intermediaries
B)Logistics intermediaries
C)Hybrid intermediaries
D)Facilitating intermediaries
E)Independent intermediaries

Question 29

Which of the following statements about merchandise brokers is true?

A)Brokers are manufacturer-owned intermediaries.
B)Brokers typically represent sellers on an ongoing basis.
C)Brokers never take title to the merchandise they sell.
D)Brokers are paid salaries by the manufacturers for whom they work.
E)All of the above

Question 30

What impact could the internet have on the distribution channel for the lady in rural Australia or New Zealand who makes handmade dolls that currently are only sold at local craft shows?

Question 31

An indirect channel includes one or more channel intermediaries.What are the functions of channel intermediaries? Identify one product or service that would use the services of channel intermediaries and explain why.

Question 32

An example of ________ would be when a department store provides a refund to a customer.

A)horizontal marketing system
B)creating assortments
C)breaking bulk
D)knowledge management
E)facilitating functions

Question 33

Discuss what is meant by the term 'direct channel' and provide an example.

Question 34

An appliance,television,stereo,or computer dealer may serve as an authorised repair centre,provide maintenance contracts,and sell essential suppliers to customers.What types of channel functions is this dealer performing?

Question 35

Discuss how distribution channels can create efficiencies for consumers.Illustrate using the example of a laptop computer and a chocolate bar.

Question 36

Manufacturers' agents are ________.

A)most often found working as employees of large,international corporations
B)also called manufacturers' brokers
C)completely supervised by the manufacturer for which they sell
D)compensated based on what they sell
E)manufacturer-owned intermediaries

Question 37

A consumer can purchase airline tickets for a Qantas flight from Brisbane to Sydney online without the need for a travel agent.This is an example of ________.

A)de-marketing
B)cross-docking
C)reverse distribution
D)disintermediation
E)piggybacking

Question 38

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

A)piggybacking
B)cross-docking
C)disintermediation
D)reverse distribution
E)demarketing

Question 39

A medical researcher at a drug company in Auckland,New Zealand has been working on analysing a certain strain of bacteria that is causing New Zealanders persistent coughs.A medical researcher at the same drug company in Melbourne,Australia has been analysing this same strain of bacteria for over a year.These two researchers sharing their research data and results is an example of ________.

A)enterprise resource planning
B)horizontal marketing
C)logistics
D)knowledge management
E)value chain

Question 40

A restaurant changes to online and text ordering only.Customers place their orders online or send a text and the order is ready when they come to the drive-through window.Explain the concept of disintermediation and the benefits to the restaurant.

Question 41

Cool Stuff is a business that buys cigarettes,lollies,and gum from many different manufacturers and then resells the items to a variety of different stores.Cool Stuff owns the goods it sells and suffers losses if the products are stolen or become out-of-date.It has developed its own marketing strategy and is an example of a ________.

A)rack shipper
B)merchandise agent
C)merchant wholesaler
D)job racker
E)merchandise broker

Question 42

Sales branches ________.

A)operate facilities in which customers can view permanent displays of the manufacturers' products
B)act like agents and do not carry any inventory
C)are manufacturer-owned facilities that carry inventory and provide sales and services to customers
D)operate the same as sales offices
E)are independent wholesalers commonly used to sell industrial equipment

Question 43

The producer-retailer-consumer channel is ________.

A)the channel ideal but does not exist in real life
B)the shortest indirect channel
C)often referred to as a triple channel
D)a rarely used form of direct channel
E)the most common direct distribution channel in consumer marketing

Question 44

Hybrid marketing systems include ________.

A)distributors
B)direct mail
C)direct sales
D)retail sales
E)All of the above

Question 45

The first step in deciding on a distribution plan is to ________.

A)evaluate the internal and external environments
B)develop appropriate distribution objectives that support the organisation's overall marketing plan
C)determine a distribution budget
D)determine the desired level of distribution intensity
E)vote on who will be the channel leader

Question 46

Sales agents ________.

A)control the marketing strategy for the products they sell
B)have unlimited sales territories
C)are typically found in furniture,clothing,and textile industries
D)perform the same functions as full service wholesalers
E)All of the above

Question 47

Cool Stuff is a business that buys cigarettes,candy,and gum from many different manufacturers and then resells the items to a variety of different stores.Cool Stuff is an example of a/n ________.

A)independent intermediary
B)reverse marketer
C)functional provider
D)brokerage company
E)disintermediator

Question 48

Sales branches,sales offices,and manufacturers' showrooms ________.

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

Question 49

Why would manufacturers use a direct channel of distribution?

A)To eliminate all channel functions
B)Because of consumer familiarity with known retailers
C)To have more control over product distribution
D)To reduce the fixed costs associated with production
E)To more efficiently distribute services

Question 50

In a/n ________ marketing system,two or more firms at the same channel level agree to work together to get their products to the customer.

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

Question 51

Which of the following statements about distribution channels for services is true?

A)Insurance is often sold through an indirect channel of distribution.
B)All services are sold using an indirect channel.
C)Services create channel problems because of their need for storage.
D)There are no intermediaries in a service channel.
E)All services are sold using a direct channel.

Question 52

Once an organisation has developed its distribution objectives,it should then ________.

A)evaluate the internal and external environments
B)determine a distribution budget
C)define its target market and its market segmentation strategy
D)determine the desired level of distribution intensity
E)vote on who will be the channel leader

Question 53

With ________,producers,dealers,wholesalers,retailers,and customers interact with more than one type of channel.

A)intermediation
B)dual distribution systems
C)knowledge management
D)supply chains
E)hybrid marketing systems

Question 54

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

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

Question 55

Members of a/n ________ vertical marketing system (VMS)often use a common name,cooperate in advertising and other promotion,and develop their own private-label products.

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

Question 56

Which of the following statements describes conventional marketing systems?

A)Conventional marketing systems are multi-level distribution channels.
B)Relationships between members of conventional marketing systems are limited to simply buying and selling from one another.
C)Members of conventional marketing systems work independently of one another.
D)Most conventional marketing systems are highly successful.
E)All of the above

Question 57

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)The size of business markets makes indirect channels more efficient.
C)Business-to-business channels are completely different from consumer channels.
D)When an industrial distributor is included in a business-to-business channel,the channel is by definition direct.
E)Indirect channels are more common in business-to-business markets than consumer markets.

Question 58

In a ________,a single channel member controls channel behaviour in order to avoid channel conflict and to create economies through size,eliminating duplication of services,and creating buying bargaining power.

A)vertical marketing system
B)functional organisational structure
C)franchise organisation
D)horizontal marketing system
E)mechanistic organisational structure

Question 59

________ are manufacturer-owned facilities that do not carry inventory but provide selling functions for the manufacturer in a specific geographic area.

A)Sales offices
B)Manufacturers' showroom
C)Sales branches
D)Commission merchants
E)Merchandise brokers

Question 60

________ distribution aims at maximising market coverage by selling a product through all wholesalers and retailers that will stock and sell the product.

A)Selective
B)Intensive
C)Specialty
D)Profit-maximisation
E)Exclusive

Question 61

Why are direct channels of distribution common in business-to-business markets?

Question 62

A franchisor involved in contractual agreements with its franchisees has what type of power?

A)Charismatic power
B)Legitimate power
C)Economic power
D)Delegated power
E)None of the above

Question 63

Channel leaders have power because of ________.

A)the legal authority granted by a contract
B)their ability to let channel members handle its most profitable products
C)their ability to control resources
D)their ability to take profitable product lines away from intermediaries
E)All of the above

Question 64

Which of the following criteria are not typically used by a manufacturer to decide which mode of transportation to use?

A)Accessibility
B)Respectfulness
C)Cost
D)Traceability
E)Dependability

Question 65

The simplest channel of distribution is the direct channel.What are the three advantages of a farmer selling strawberries grown on their farm directly to consumers?

Question 66

A local manufacturer makes several different flavours and package sizes of dog and cat food treats.This company has a sales force that contacts retailers who sell their products,they offer in-house lines of credit to customers,and they do advertising for all of the products.How would this type of intermediary be classified?

Question 67

Contrast intensive,selective and exclusive distribution.Provide two examples of products that would logically be distributed in each of these ways.

Question 68

Warehousing provides ________ utility by storing products until consumers need them.

A)place
B)production
C)ownership
D)time
E)form

Question 69

________ is the process of designing,managing,and improving,the movement of products through the supply chain.

A)Inventory management
B)Distribution strategy
C)Materials handling
D)Logistics
E)Warehousing

Question 70

McDonald's,Holiday Inn and Avis Rent a Car are all franchises,which means they are also members of a/n ________ vertical marketing system (VMS).

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

Question 71

What are the similarities and differences between independent intermediaries and manufacturer-owned intermediaries?

Question 72

Selective distribution strategies are most often used with which consumer product category?

A)Shopping goods
B)Convenience goods
C)Unsought goods
D)Supplies
E)Specialty goods

Question 73

________ is a logistics activity that involves developing and implementing processes to ensure firms always have goods available to meet customers' demands.

A)Distribution implementation
B)Order processing
C)Materials handling
D)Supply chain supervision
E)Inventory control

Question 74

Cheap and Cheerful variety stores are part of a wholesaler-sponsored voluntary chain where cooperation is contractually specified.This means Cheap and Cheerful retailers are members of a/n ________ vertical marketing system (VMS).

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

Question 75

Physical distribution activities include all of the following EXCEPT ________.

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

Question 76

A major manufacturer of bread sells its finished products to a grocery store chain.This grocery store then sells the bread to its customer.What type of channels of distribution is this?

Question 77

Explain the difference between conventional,vertical,horizontal and hybrid marketing systems and why marketers might adopt each.

Question 78

Qantas Airlines is a member of the oneworld Alliance that includes airlines such as British Airways and Cathay Pacific Airways.Air New Zealand is a member of the Star Alliance,including airlines such as Air Canada.What type of marketing system are both Qantas and Air New Zealand using?

Question 79

Explain the four steps in distribution planning and indicate why a marketer might choose an intensive,exclusive or selective distribution strategy.

Question 80

What are the sources of power for a channel leader?