Deck 11: Marketing Channels and Supply Chain Management

Question 1

Which discrepancy is created when a product is produced but a consumer is not ready to purchase it?

A) assortment
B) supply
C) possession
D) temporal

Answer 1

D

Question 2

The major characteristic used to differentiate between types of intermediaries is whether they do one of the following.Which one?

A) raise profit margins for independent middlemen
B) install exchange barriers such as location,time,and quantity
C) decrease economies of scale
D) take title to the products they sell

Answer 2

D

Question 3

What is a business structure of interdependent organizations that reaches from the point of product origin to the consumer?

A) a marketing channel or channel of distribution
B) a marketing mix intermediary
C) a selective distribution channel
D) a transportation channel or channel of movement

Answer 3

A

Question 4

Distribution channels aid in overcoming barriers to exchange that are created in the production process by overcoming all of the following types of discrepancies EXCEPT which one?

A) temporal
B) possession
C) quantity
D) spatial

Question 5

How can marketing channels achieve economies of scale?

A) through overcoming spatial discrepancies
B) through specialization and division of labour
C) through contact expertise
D) through overcoming discrepancies of quantity

Question 6

McKesson Company provides health care products to pharmacies.For example,it purchases bandages,gauze,antibacterial cream,and ointments (or anything else you would need to treat a cut or scrape)from a variety of different manufacturers.Its goal is to provide each pharmacy with every item a customer might want to treat a cut.How is McKesson aiding consumers?

A) by overcoming discrepancy of quantity
B) by overcoming discrepancy of assortment
C) by overcoming discrepancy of possession
D) by overcoming spatial discrepancy

Question 7

The difference between the amount of product produced and the amount an end user wants to buy is a discrepancy of which of the following?

A) possession
B) quantity
C) accumulation
D) assortment

Question 8

If a retail outlet does not offer all the items necessary in order to use or to receive full satisfaction from a product that it sells,what is there?

A) a temporal discrepancy
B) a discrepancy of quantity
C) a discrepancy of possession
D) a discrepancy of assortment

Question 9

A flour mill purchases bags of wheat from hundreds of different farmers.Then it grinds the wheat into flour and packages it into 2-kilo,5-kilo,10-kilo,and 25-kilo bags.By selling the packaged flour,the mill has aided the grocery stores by overcoming which discrepancy?

A) possession
B) assortment
C) quantity
D) space

Question 10

YKK slide fasteners (zippers)are made in Macon,Georgia,yet manufacturers all over the world use zippers to manufacturer,clothes,luggage,shoes,and other items.Having wholesalers around the world helps to overcome which discrepancy for YKK?

A) ownership
B) creation
C) temporal
D) spatial

Question 11

One configuration of a marketing channel entails producers selling to consumers with no intermediaries involved.What is this called?

A) a limited distribution system
B) a vertical marketing system
C) a direct channel
D) a conventional channel

Question 12

Which of the following are wholesaling intermediaries that facilitate the sales of a product from producer to end user by representing retailers,wholesalers,or manufacturers and providing little input as to the terms of the sale?

A) channel cooperatives
B) agents and brokers
C) merchant wholesalers
D) channel functionaries

Question 13

Marketing channels make distribution simpler by reducing the number of transactions required to get products from manufacturers to consumers.What is this called?

A) contact efficiency
B) forward integration
C) reciprocity
D) elimination of temporal discrepancies

Question 14

To facilitate manufacturing in China,Ingersoll-Rand uses 18 different local suppliers of key component parts.These suppliers are part of which of the following for Ingersoll-Rand?

A) the channel of distribution
B) the materials-handling network
C) the communication network
D) the demand chain

Question 15

Which of the following is an institution that buys goods from manufacturers,takes title to these goods,and resells them to businesses,government agencies,and/or other wholesalers or retailers?

A) an agent
B) a drop shipper
C) a marketing cooperative
D) a merchant wholesaler

Question 16

Markets are often scattered over large geographic regions,yet a manufacturer may have only one location in the country.What type of discrepancy does this create?

A) spatial
B) assortment
C) quantity
D) temporal

Question 17

W.W.Grainger,Inc. ,is one of the world's largest business-to-business distributors of equipment,component parts,and supplies in the United States and Canada.It has ownership title to over 220,000 products,which are stocked in one national and nine regional warehouses to guarantee product availability and quick service to the many manufacturers who are its customers.What is W.W.Grainger an example of?

A) a hypermarket intermediary
B) an agent or broker
C) a merchant wholesaler
D) a consumer market

Question 18

A manufacturer may produce only one product,yet additional products may be required to actually use the first product.What does this create?

A) a discrepancy of possession
B) a discrepancy of quantity
C) a spatial discrepancy
D) a discrepancy of assortment

Question 19

Retailers and merchant wholesalers are examples of intermediaries that do which of the following?

A) create temporal and spatial discrepancies
B) do not benefit from any economies of scale
C) use consumer promotions
D) take title to a product

Question 20

Which of the following BEST describes agents and brokers?

A) They have a great deal of control and risk invested in the goods.
B) They represent only manufacturers in sales situations.
C) They have a great deal of input on the terms of the sale.
D) They do not take title to merchandise.

Question 21

Generally,which of the following determine what type of intermediary a manufacturer should use?

A) all controllable marketing factors
B) product characteristics,buyer consideration,and market conditions
C) competitive conditions and government regulations
D) only noncontrollable environmental factors

Question 22

Which of the following includes managing the movement of raw materials and parts from their sources to production sites;managing the movement of materials,semi-finished,and finished products within and among plants,warehouses,and distribution centres;as well as the planning and coordinating of the physical distribution of finished goods to intermediaries and final buyers?

A) intermodal transportation
B) contract logistics
C) logistics
D) materials handling

Question 23

On the Internet,which of the following allow companies to automate their supply chains while sharing information only with select suppliers?

A) disintermediation
B) shopping bots
C) Internet agents
D) private exchanges

Question 24

Marketing channels perform all of the following logistical activities EXCEPT which one?

A) assorting products into homogeneous or heterogeneous collections
B) grading
C) sorting
D) risk taking

Question 25

Transactional channel functions include all of the following activities EXCEPT which one?

A) promoting the products to be sold
B) physical distribution and sorting
C) taking the risks associated with product inventories
D) contacting buyers

Question 26

What is breaking bulk at the wholesale level called?

A) downsizing
B) sorting out
C) grading
D) allocating

Question 27

What do companies selling standardized items of moderate or low value to other companies often use?

A) industrial distributors
B) agents and brokers
C) direct marketing organizations
D) retailers

Question 28

Which of the following is a sorting activity?

A) assembling
B) possession
C) assorting
D) repairing

Question 29

What is the most typically used channel for industrial products?

A) the direct channel
B) the industrial distributor channel
C) the extended channel
D) the wholesaler channel

Question 30

Which of the following describes the process of strategically managing the efficient flow and storage of raw materials,in-process inventory,and finished goods from point of origin to point of consumption?

A) logistics
B) contract logistics
C) disintermediation
D) channel facilitation

Question 31

Which distribution occurs when a producer selects two or more different channels to distribute the same products to target markets?

A) selective
B) intensive
C) multiple
D) contractual

Question 32

According to the text,which of the following statements about merchant wholesalers is true?

A) The buyer is generally satisfied with a long lead time when the merchant wholesaler is acting as the facilitating intermediary.
B) Products typically carried by merchant wholesalers are technically simple.
C) Customers of merchant wholesalers are typically concentrated.
D) Frequent ordering is commonplace with a merchant wholesaler.

Question 33

Broad Corporation is a wholesale company that sells health care products to pharmacies,hospitals,rehabilitation centres,and nursing homes.This is an example of which type of distribution?

A) intensive
B) multiple
C) cumulative
D) aggregated

Question 34

What are the three basic functions channel members perform?

A) contacting,negotiating,and ownership
B) transactional,logistical,and facilitating
C) assorting,accumulating,and allocating
D) promoting,distributing,and bulk-breaking

Question 35

Which of the following are examples of facilitating functions performed by wholesaling intermediaries?

A) assorting,accumulating,grading,and allocating
B) financial management and storing
C) researching and financing
D) sorting and storing

Question 36

Which of the following is a channel member typically used by manufacturers as they route their products to consumers?

A) producer
B) supplier
C) other manufacturers
D) industrial distributor

Question 37

Vutek manufactures printing machines used to print high-resolution graphics for billboards,bus cards,banners,and posters.What would you expect Vutek to use for distribution?

A) a horizontally integrated channel
B) a network of facilitating agents
C) a vertical marketing system
D) a direct channel

Question 38

The only way Sal Ford in Manitoba can get one of Ian Broan's wind chimes from B.C.is to order it through the mail.Ian Broan,who makes the wind chimes from scrap metal,uses which of the following exclusively?

A) a vertical marketing system
B) a reciprocal channel
C) an exclusive distribution system
D) a direct channel

Question 39

When the new father left the maternity ward to find something to eat,he was surprised to see that he could buy McDonald's fast food in the hospital dining room.What is McDonald's utilizing?

A) logistical distribution
B) multiplicative channels
C) a strategic channel alliance
D) a nontraditional channel

Question 40

Fred Farkle just purchased his new home computer on-line at dell.ca.Which marketing channel route was taken for this transaction?

A) an indirect channel
B) a retailer channel
C) a direct channel
D) a wholesaler channel

Question 41

Which of the following BEST describes supply chain management?

A) It is a physical flow process.
B) It plays the role of stimulator of customer demand.
C) It is supplier driven.
D) It decreases customer and economic value.

Question 42

Which of the following coordinates and integrates all of the activities performed by channel members into a seamless process,from the source to the point of consumption,resulting in enhanced customer and economic value?

A) materials handling
B) physical distribution
C) yield management
D) supply chain management

Question 43

Grainhead Company in Moose Jaw,Saskatchewan,would like to expand to international markets,but it has neither the time nor the resources to spend on developing channels of distribution.What should the company consider?

A) a reverse channel
B) a strategic channel alliance
C) a channel cooperative
D) an industrial distributor

Question 44

What is another name for a channel leader?

A) a channel gatekeeper
B) a channel facilitator
C) a distribution supervisor
D) a channel captain

Question 45

According to the text,which of the following statements about supply chain management is true?

A) Supply chain management focuses on pulling products into the marketplace.
B) Supply chain management is supply chain driven.
C) Supply chain management focuses on pushing products into the marketplace.
D) Supply chain management provides customers with maximum service levels.

Question 46

Which of the following manufacturers most likely uses intensive distribution?

A) Cannondale,a manufacturer of bicycles and sportswear
B) Sauder,a manufacturer of furniture
C) Schwinn,a manufacturer of bicycles
D) Coca-Cola,a manufacturer of soft drinks and bottled water

Question 47

DeBeers sells most of the diamonds it produces to industry.The company controls over 90 percent of the market and has great power over its distributors.In its marketing channel,what would DeBeers be considered?

A) a channel leader
B) a channel member
C) a power broker
D) a channel authority

Question 48

Husqvarna Viking manufacturers sewing machines.The company carefully screens its dealers to ensure a quality dealer image and service ability.Only a few dealers are chosen in any single geographic area.This is an example of what type of distribution?

A) exclusive
B) controlled
C) selective
D) intensive

Question 49

Which of the following BEST describes supply chain management?

A) It is controlled at the manufacturer/producer level.
B) It is a logistics function controlled by transportation companies.
C) It is the process of strategically managing the efficient flow and storage of raw materials and finished goods from point of origin to point of consumption.
D) It is a business structure of interdependent organizations that reach from the point of product origin to the wholesaler.

Question 50

According to the text,which of the following statements concerning how market factors affect channel decisions is true?

A) A very large market requires fewer intermediaries.
B) Geographically concentrated target markets should be served with an indirect sales force.
C) New firms in extremely competitive markets will be more successful if they use indirect channels.
D) Industrial customers tend to buy in larger quantities and require more customer service.

Question 51

What would be the level of distribution used to support a product's image and allow for a higher profit margin?

A) exclusive
B) selective
C) closed
D) intensive

Question 52

Which distribution is aimed at maximum market coverage and is used for many convenience goods and supplies that need to be available in every outlet where the potential customer might want to buy them?

A) intensive distribution
B) horizontal channelling
C) selective distribution
D) exclusive distribution

Question 53

The most restrictive form of market coverage entails establishing only one or a few dealers within a given geographic area.Because buyers need to be willing to search or travel to acquire the product,this form of distribution is limited to consumer specialty goods,a few shopping goods,and major industrial equipment.What is this type of distribution?

A) selective
B) intensive
C) exclusive
D) premium

Question 54

What level of distribution would you recommend Mercedes-Benz use for the retail outlets for its automotive products?

A) open distribution
B) selective distribution
C) exclusive distribution
D) closed distribution

Question 55

Which of the following use another manufacturer's already established channel and are used when the creation of marketing channel relationships may be expensive and time consuming?

A) relationship channels
B) strategic channel alliances
C) nontraditional channelization
D) reverse channels

Question 56

If you were a manufacturer who wanted to maximize control of the sales efforts of your product but desired an indirect channel of distribution,what type of distribution system would you likely choose?

A) comprehensive
B) selective
C) intensive
D) exclusive

Question 57

Intensity of distribution for any product refers to which of the following?

A) the number of manufacturers in the marketplace
B) the number of intermediaries to be used in each market
C) the amount of money spent on channel logistics
D) the intensity of competing products in the marketplace

Question 58

Walker Zanger,Inc.manufactures decorative tile.The company has a policy of having only one or two dealers within a given large geographic area.Buyers of Walker Zanger brand terra cotta and mosaic tiles for home decorating will travel to acquire just the right product,so what type of distribution is appropriate for the tile?

A) reciprocal
B) premium
C) intensive
D) exclusive

Question 59

Mouthwash is sold in grocery stores,service stations,convenience stores,drugstores,discount stores,and motel vending machines.What type of distribution strategy is being used?

A) intensive
B) selective
C) exclusive
D) reciprocal

Question 60

Which distribution is achieved by screening dealers to eliminate all but a few in any single geographic area? (Shopping goods and some specialty products that consumers are willing to search for are sold this way. )

A) intensive
B) dual
C) controlled
D) selective

Question 61

Sewing machine retailers want to sell as many machines as possible in order to maximize profits,regardless of whether the piece is manufactured by Singer,Janome,or Husqvarna Viking.But the Singer manufacturer wants a certain sales volume and market share in each market.What can this situation produce?

A) market share conflict
B) channel conflict
C) horizontal market share
D) lateral channel takeover

Question 62

Honda uses just-in-time manufacturing to build its Odyssey minivans.Five companies that make component parts for the Honda Odyssey relocated to Alabama and states bordering Alabama when Honda announced plans to build a new Odyssey manufacturing plant in Alabama.This relocation in order to provide efficient delivery of goods indicates that Honda is which of the following?

A) a horizontal integrator
B) a demand maverick
C) a distribution champion
D) a channel captain

Question 63

Which of the following is a member of the supply chain team that moves just-picked cotton to finished clothing and then to the consumer of that clothing?

A) the ad agency that develops the promotion for competitors' clothing
B) the worker who picks the cotton
C) the trucking company that hauls the workers to the cotton fields
D) the warehouse in which the cotton was temporarily stored

Question 64

Which of the following BEST describes channel conflict?

A) It can appear as either internal or external.
B) It is often caused by an inability of some channel members to keep up with the changing times.
C) It is not caused by ideological differences because such differences would prevent the members from ever operating as a channel.
D) It always has an adverse effect on the members of the channel.

Question 65

A manufacturer of sewing machines has decided to implement just-in-time manufacturing.What can the manufacturer expect?

A) finished product quality reductions
B) the need for more backup suppliers
C) more frequent deliveries and reduced inventory
D) reduced errors in the purchasing system

Question 66

What is the joint effort of all channel members to create a supply chain that serves customers and creates a competitive advantage?

A) selective partnering
B) intensive integration
C) closed channel distribution
D) channel partnering

Question 67

What is another name for just-in-time production (JIT)?

A) lean production
B) mass customization
C) outsourcing
D) disintermediation

Question 68

What is a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer's or a customer's needs?

A) direct sourcing
B) an inventory control system
C) warehousing
D) contract logistics

Question 69

A newspaper article on supply chain management discusses the importance of lean production.The article therefore focuses on the role of which of the following in supply chain management?

A) materials-handling systems
B) supply chain organization
C) just-in-time manufacturing
D) electronic distribution

Question 70

Which of the following means that raw materials arrive at the assembly line in guaranteed working order,and finished products are generally shipped to the customer immediately after completion? (It also reduces inventory levels and delivers the product as it is needed in the store. )

A) contract logistics
B) just-in-time manufacturing
C) value-added channelization
D) intermodal manufacturing

Question 71

Manufacturers that establish a web presence and sell their products over the web in e-commerce-enabled sites invoke which of the following with existing intermediaries?

A) channel partnering
B) vertical conflict
C) horizontal conflict
D) channel leadership

Question 72

In which logistical component of the supply chain will you find electronic data interchange a common feature?

A) transportation
B) order processing
C) materials handling
D) production scheduling

Question 73

Which of the following is a logistics component of the supply chain?

A) production scheduling
B) outsourcing
C) push marketing strategy
D) order taking

Question 74

Girls can log onto www.Barbie.com and design their own special Barbie doll.They can choose the doll's skin tone,hair colour,clothes,accessories,and name.The doll is created to the new owner's specifications and mailed to her by Mattel.What is Mattel using with this doll?

A) customer accumulation
B) mass customization
C) disintermediation
D) niche marketing

Question 75

What kind of inputs are used in distribution resource planning?

A) sales forecasts
B) raw materials
C) unfulfilled orders
D) mode of production to be used

Question 76

When does horizontal channel conflict occur most often?

A) when manufacturers practise multiple distribution
B) when manufacturers practise exclusive distribution
C) when manufacturers practise value-added pricing
D) when manufacturers practise channel partnering

Question 77

In which logistical component of the supply chain will you find distribution resource planning a common feature?

A) production scheduling
B) materials handling
C) inventory control
D) order processing

Question 78

What is the goal of inventory control?

A) to estimate proper usage rates
B) to determine order timing and order quantity
C) to minimize inventory levels while maintaining an adequate supply to meet customer demands
D) to integrate JIT to reduce risks of obsolescence,theft,and damage

Question 79

Paris Miki is a Tokyo eyeglass store that uses special software to design frames and lenses that conform to the shape of the customer's face.What is Paris Miki engaged in?

A) market development
B) batch production
C) disintermediation
D) build-to-order

Question 80

What is the direct electronic transmission,from computer to computer,of standard business forms between two organizations,so orders can become virtually paperless and information about the order is available to both firms?

A) just-in-time inventory
B) electronic data interchange
C) direct sourcing
D) business prioritizing