Deck 15: Deliver Value Through Supply Chain Management, channels of Distribution, and Logistics

Question 1

Functions provided by channel intermediaries that make the purchase process easier for customers and manufacturers are referred to as ________ functions.

A)distributing
B)facilitating
C)management
D)marketing
E)wholesaling

Answer 1

B

Question 2

The theft and unauthorized repurposing of intellectual material via the Internet is called ________.

A)information logistics theft
B)non-permission-based downloading
C)online distribution piracy
D)disintermediation
E)taking title

Answer 2

C

Question 3

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

A)creating assortments
B)breaking bulk
C)third-party logistics
D)order processing
E)inventory control

Answer 3

B

Question 4

Through ________,many companies today are strengthening their connections to all partners,from providers of raw materials to components to final products that are delivered to final buyers.

A)supply chain management
B)channel of distribution management
C)partnership relationship marketing
D)enterprise resource planning
E)knowledge management

Question 5

Which of the following is the term for the firms and individuals who help move a product to the consumer or the business user?

A)third-party logistics providers
B)channel leaders
C)channel intermediaries
D)enterprise resource planners
E)strategic allies

Question 6

Which of the following is the series of firms or individuals that facilitate(s)the movement of a product from the producer to the final customers?

A)the industrial network
B)the retailer chain
C)the multilevel network
D)the channel of distribution
E)the conventional marketing system

Question 7

Producers benefit from using intermediaries because they ________.

A)offer greater efficiency in making goods available to target markets
B)bring a fresh point of view to strategy development
C)eliminate risk
D)are rarely backlogged with orders
E)will store products indefinitely

Question 8

Channels of distribution provide which of the following?

A)time,place,and ownership utility
B)promotion,product,and place utility
C)time,place,and form utility
D)promotion and form utility
E)time and promotion utility

Question 9

Intermediaries that do business with many different manufacturers and many different customers are most accurately referred to as ________.

A)interdependent intermediaries
B)dependent intermediaries
C)independent intermediaries
D)wholesalers
E)retail outlets

Question 10

A firm that brings in outside companies to accomplish supply chain activities is using ________.

A)insourcing
B)outsourcing
C)crowdsourcing
D)intensive distribution
E)exclusive distribution

Question 11

Retailers handle the financial exchange when a customer pays for a product.This is an example of the ________ function of channel intermediaries.

A)communication
B)marketing
C)promotional
D)transaction
E)management

Question 12

Through the practice of insourcing,a company brings in an external company to run its ________.

A)human resource management
B)nonessential operations
C)essential operations
D)value proposition
E)facilitating functions

Question 13

Offering credit to buyers and providing refund services for products are both examples of ________ functions provided by channel intermediaries.

A)communication
B)marketing
C)promotional
D)facilitating
E)management

Question 14

Which of the following includes all the activities necessary to convert raw materials into a good or service and put it in the hands of the consumer or business customer?

A)the supply chain
B)the value chain
C)the channel of distribution
D)the retailer chain
E)the industrial network

Question 15

At minimum,a channel of distribution consists of a producer and a(n)________.

A)wholesaler
B)agent
C)broker
D)intermediary
E)customer

Question 16

Channel members can help producers by identifying customer complaints,customer preferences,and new competitors in the market.These are all examples of the ________ function of channel intermediaries.

A)communication
B)marketing
C)promotional
D)transaction
E)management

Question 17

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

A)knowledge management
B)disintermediation
C)horizontal marketing
D)vertical marketing
E)hybrid marketing

Question 18

Wholesalers and retailers create efficiencies in the flow of goods from producer to end consumer by ________ when they provide a variety of products in one location.

A)creating assortments
B)just in time processing
C)third-party logistics
D)order processing
E)inventory control

Question 19

Which of the following describes a comprehensive approach to collecting,organizing,storing,and retrieving a firm's information assets?

A)logistics
B)knowledge management
C)facilitation
D)enterprise resource planning
E)just in time techniques

Question 20

When a company uses ________,it brings in an external company to run some of its essential operations.

A)outsourcing
B)insourcing
C)conventional marketing
D)logistics management
E)a vertical marketing system

Question 21

Ed Barney owns a chain of small gift shops.Before buying merchandise to carry in his store,Barney can visit a ________ where he can examine a manufacturer's products before he stocks his stores.

A)sales office
B)manufacturer's showroom
C)commission merchandise mart
D)merchandise brokerage
E)manufacturer's office

Question 22

Which of the following are intermediaries that receive fees for facilitating transactions in markets such as real estate,food,and used equipment in which there are a lot of small buyers and sellers?

A)manufacturers' agents
B)selling agents
C)commission merchants
D)merchandise brokers
E)sale mediators

Question 23

Manufacturers' ________,also called manufacturers' representatives,represent a buyer or seller on an ongoing basis.

A)brokers
B)franchisers
C)agents
D)retailers
E)intermediaries

Question 24

Mail-order wholesalers are associated with all of the following EXCEPT which one?

A)selling products to small retailers and other industrial customers
B)selling products to retailers in remote locations
C)allowing shipment prior to receiving payment
D)carrying products in inventory
E)selling through catalogs

Question 25

To a producer of goods,a greater number of channel levels means ________.

A)less distance between producer and end consumer
B)less control
C)more creativity
D)higher taxes
E)multiple distribution systems

Question 26

A commission merchant would most likely sell which of the following?

A)agricultural products
B)extractive materials such as coal and iron
C)convenience goods such as gum and candy
D)clothing and textiles
E)real estate

Question 27

A(n)________ brings buyers and sellers together and facilitates transactions,typically charging a fee after a transaction is completed.

A)cash-and-carry wholesaler
B)broker
C)retailer
D)wholesaler
E)commission merchant

Question 28

Which of the following statements about merchandise brokers is true?

A)Brokers are paid salaries by the manufacturers for whom they work.
B)Brokers never take title to the merchandise they sell.
C)Brokers work for manufacturer-owned intermediaries.
D)Brokers typically represent sellers on an ongoing basis.
E)Brokers work in industries with only a few,very large buyers and sellers.

Question 29

Truck jobbers are limited-service merchant wholesalers who would most likely handle which of the following?

A)building materials
B)fruits and vegetables
C)coal and lumber
D)cosmetics
E)magazines

Question 30

Drop shippers do all of the following EXCEPT which one?

A)take title to the merchandise
B)take actual possession of the merchandise
C)take orders from retailers and industry buyers
D)bill retailers and industry buyers
E)assume the same risks as other types of limited-service merchant wholesalers

Question 31

An intermediary who ________ legally owns the goods being handled.

A)breaks bulk
B)takes title
C)creates assortments
D)takes consignments
E)selectively distributes

Question 32

Which of the following is true about sales branches,sales offices,and manufacturers' showrooms?

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

Question 33

Limited-service merchant wholesalers are less likely than full-service merchant wholesalers to do which of the following?

A)set the prices of the merchandise they sell
B)take title to the merchandise they sell
C)suffer financial losses if the merchandise they sell is damaged or stolen
D)offer marketing assistance or delivery for the products they sell
E)use their own sales force

Question 34

Which of the following are manufacturer-owned facilities that carry inventory and provide sales and services to customers?

A)sales offices
B)sales branches
C)manufacturers' showrooms
D)manufacturers' offices
E)merchandise brokerages

Question 35

Which of the following are manufacturer-owned facilities that do not carry inventory but provide selling functions for the manufacturer in a specific geographic area?

A)commission merchandise marts
B)merchandise brokerages
C)sales offices
D)sales branches
E)manufacturers' showrooms

Question 36

Which group of independent intermediaries can be divided into the two broad types of full-service and limited-service?

A)brokers
B)agents
C)sales branches
D)specialty wholesalers
E)merchant wholesalers

Question 37

Which of the following statements about manufacturers' agents is true?

A)Manufacturers' agents are also called manufacturers' brokers.
B)Manufacturers' agents most typically work for only one manufacturer.
C)Manufacturers' agents are compensated with commissions based on a percentage of what they sell.
D)Manufacturers' agents have unlimited sales territories.
E)Manufacturers' agents are entirely supervised by the manufacturer for whom they sell.

Question 38

Rack jobbers are limited-service merchant wholesalers who would most likely handle which of the following?

A)imported plants
B)precious minerals
C)agricultural products
D)perishable food items
E)magazines

Question 39

The producer-retailer-consumer channel is ________.

A)the most efficient channel
B)also referred to as a triple channel
C)the shortest indirect channel
D)the shortest direct channel
E)a rarely used channel form

Question 40

The owner of a grocery store wants to have non-food items delivered,priced,displayed and inventoried by a wholesaler.Which type of wholesaler best fits the owner's needs?

A)drop shipper
B)cash-and-carry wholesaler
C)truck jobber
D)rack jobber
E)mail-order wholesaler

Question 41

A channel consisting of one or more independent producers,wholesalers,or retailers,each seeking to maximize its own profits with little concern for other channel members,is a(n)________.

A)independent vertical marketing system
B)conventional marketing system
C)independent channel
D)corporate vertical marketing system
E)administered vertical marketing system

Question 42

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

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

Question 43

Leadership in which type of marketing system is assumed not through common ownership or contractual ties but through the size and power of a single dominant channel member?

A)a horizontal marketing system
B)an administered vertical marketing system
C)a corporate vertical marketing system
D)a conventional marketing system
E)a multiple distribution system

Question 44

A corporate VMS has the advantage of controlling the entire distribution chain under ________.

A)a profit-maximizing strategic plan
B)single ownership
C)mass distribution
D)a limited number of intermediaries
E)contractual agreements

Question 45

Conventional distribution channels consist of one or more ________ producers,wholesalers,and retailers.

A)independent
B)product-related
C)contract
D)merchant
E)domestic

Question 46

Which of the following should be the first step in distribution planning?

A)identifying the channel leader
B)determining a distribution budget
C)developing distribution objectives
D)evaluating the internal and external environments
E)determining the desired level of distribution intensity

Question 47

When determining the number of channel members to use at each level,three strategies are available: intensive,exclusive,and ________ distribution.

A)multiple
B)selective
C)international
D)direct
E)extensive

Question 48

In business-to-business channels,the functions of a merchant wholesaler are performed by a(n)________.

A)sales office
B)commission merchant
C)merchant broker
D)business retailer
E)industrial distributor

Question 49

What are the three major types of vertical marketing systems?

A)corporate,contractual,and chain
B)contractual,corporate,and independent
C)corporate,contractual,and administered
D)administered,independent,and franchised
E)corporate,franchised,and task

Question 50

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

Question 51

Once an organization has developed its distribution objectives,it should next ________.

A)identify the channel leader
B)determine a distribution budget
C)select the optimum number of channel levels
D)define the target market and articulate the market segmentation strategy
E)evaluate the internal and external environments

Question 52

Which of the following is a distribution system that uses different channels and communication methods to reach and serve a target market?

A)a vertical marketing system
B)a horizontal marketing system
C)a hybrid marketing system
D)a logistics system
E)an intensive distribution system

Question 53

Which of the following is in place when a producer,dealer,wholesaler,retailer,or customer interacts with more than one type of channel?

A)dual or multiple distribution system
B)intermediation
C)knowledge management
D)supply chain management
E)vertical marketing system

Question 54

A retailer cooperative is a form of a(n)________ vertical marketing system (VMS).

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

Question 55

Which of the following is NOT a true statement about conventional marketing systems?

A)Conventional marketing systems are multilevel distribution channels.
B)Most conventional marketing systems are highly successful.
C)Members of conventional marketing systems work independently of one another.
D)Members of conventional marketing systems do not work toward the same broad goals.
E)Relationships between members of conventional marketing systems are limited to simply buying and selling from one another.

Question 56

Which of the following is most likely to force a manufacturer to pay a slotting allowance?

A)a selling agent
B)a merchandise broker
C)a large retail chain
D)a small retailer
E)a rack jobber

Question 57

Burger King,Holiday Inn,Avis,and H&R Block tax service are all franchises,which means they are also members of a(n)________ vertical marketing system (VMS).

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

Question 58

Which type of distribution means limiting distribution of a product to a single outlet in a particular region?

A)exclusive
B)intensive
C)selective
D)independent
E)insourced

Question 59

In a ________,two or more companies at the same channel level join together to develop a new marketing opportunity.

A)franchise
B)corporate VMS
C)horizontal marketing system
D)multiple distribution system
E)conventional marketing system

Question 60

Which type of distribution is used when the producer wants to place its products with more than one,but fewer than all,of the intermediaries who are willing to carry its products?

A)exclusive
B)intensive
C)selective
D)dual
E)multiple

Question 61

Which stage of activity in logistics involves shipping the product out to customers?

A)inbound logistics
B)operations
C)outbound logistics
D)reverse logistics
E)services

Question 62

Proud Pets,a producer of clothing and accessories for pets,has recently partnered with a regional chain of pet stores.Which of the following would Proud Pets be LEAST likely to expect from its new channel member?

A)promoting its products through advertising
B)assembling and packaging its products for final sale
C)distributing relevant market information
D)identifying raw materials and other productive inputs
E)taking a risk that items may not sell

Question 63

The perfect order measurement calculates which of the following?

A)the amount of inventory that is just right to warehouse
B)the origin,current location,and destination of a tagged product
C)the most cost-effective and efficient mode of transportation
D)the value of the time utility provided to customers through logistics
E)the error-free rate of each stage of a purchase order

Question 64

Steve's Physco Skates sells its products to Walmart,who then sells them to the consumer.This is an example of a(n)________.

A)direct marketing channel
B)producer channel
C)indirect marketing channel
D)horizontal marketing system
E)corporate vertical marketing system

Question 65

Selective distribution strategy is most suitable for which consumer product category?

A)convenience goods
B)unsought goods
C)shopping products
D)luxury products
E)materials and supplies

Question 66

Through the use of ________,a company is able to know exactly where a product is located within the distribution channel.

A)ERP
B)RFID
C)PRM
D)VMS
E)JIT

Question 67

The difference between distribution centers and storage warehouses is that distribution centers are designed to ________.

A)have greater capacity
B)store goods for longer periods
C)perform other functions,such as breaking bulk
D)primarily be owned by the manufacturer
E)be automated

Question 68

Physical distribution activities include all of the following EXCEPT which one?

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

Question 69

Which of the following is a logistics activity that involves developing and implementing a process to ensure the firm always has sufficient goods available to meet customers' demands--no more and no less?

A)materials handling
B)inventory control
C)supply chain supervision
D)order processing
E)distribution implementation

Question 70

Which of the following is the process of designing,managing,and improving the movement of products through the supply chain?

A)logistics
B)warehousing
C)materials handling
D)inventory management
E)distribution strategy

Question 71

During the stage of ________ activities,the company receives materials it needs to manufacture its products.

A)inbound logistics
B)operations
C)outbound logistics
D)marketing and sales
E)service

Question 72

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

A)J&L Manufacturing Company sells drapery hardware to The Home Depot's Design Center,and the Design Center then sells it to consumers.
B)Family Dollar Store sells modeling clay to school-age children.
C)A wholesaler sells candy to convenience stores who then sell it to store patrons.
D)Farmer Mintz sells corn to the Hughes household who will eat it for supper.
E)A farmer in Colombia sells flowers to an international broker who makes sure the flowers reach consumers in the United States.

Question 73

Which of the following is another name for the channel leader?

A)materials expert
B)distribution facilitator
C)franchiser
D)channel captain
E)logistics leader

Question 74

Marketing logistics involves which of the following types of distribution flows?

A)outbound and inbound only
B)outbound,inbound,and reverse
C)outbound and reverse only
D)inbound and reverse only
E)outbound only

Question 75

A husband and wife have a small store that is located at a beach resort.The only products sold at this store are hand-dipped and sculptured candles made by this couple.Marketers would classify the channel of distribution for these candles as ________.

A)indirect
B)direct
C)logistic
D)reverse
E)inbound

Question 76

What type of utility does warehousing provide to consumers by holding onto products until consumers need them?

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

Question 77

A new company called LidRock is prospering because it figured out a novel way to get music,video games,and movies into the hands of consumers: on mini-CDs tucked into the lids of soft drinks.LidRock is focusing on which one of the four Ps?

A)product
B)price
C)promotion
D)place
E)packaging

Question 78

To reduce inventory management costs,many companies use a system called ________,which involves carrying only small inventories of parts or merchandise,often only enough for a few days of operation.

A)just in time (JIT)
B)supply chain management
C)value chain management
D)logistics management
E)enterprise resource planning (ERP)

Question 79

The fastest and most expensive mode of transportation is ________.

A)railroads
B)water
C)the Internet
D)pipeline
E)air

Question 80

Which of the following do manufacturers typically NOT use as a factor in deciding which mode of transportation to use for a product?

A)dependability
B)cost
C)accessibility
D)responsiveness
E)traceability