Question 1

If a company decides to distribute its products through one retailer or dealer in the trading area,then the company is following a(n) _____ distribution strategy.

Accepted Answer

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

Question 2

Discuss the factors that influence distribution decision.

Accepted Answer

The factors that influence the distribution decision include buyer considerations,product characteristics,and financial and control factors.
Buyer Considerations-Manufacturers look at the amount and frequency of purchases by buyers,as well as the margins over manufacturing costs that are available to pay for direct selling costs.
Competitive Considerations-Distribution channels are an important aspect of how a company differentiates itself and its products from others,and this may impel decision makers toward increased emphasis on direct channels.The Internet can change the economics of distribution in favor of direct marketing.
Product Characteristics-Companies consider product characteristics in deciding whether to use a direct or distribution-channel strategy.Complex goods and services often require close contact between customers and the producer,who may have to provide application assistance,service,and other supporting activities.
Financial and Control Considerations-It is necessary to decide if resources are available for direct distribution,and,if they are,whether selling direct to end-users is the best use of the resources.Both the costs and benefits need to be evaluated.Direct distribution gives the manufacturer control over distribution,since independent organizations cannot be managed in the same manner as company employees.This may be an important factor to the manufacturer.

Question 3

A single product makes distribution by the manufacturer economically feasible,whereas the cost of direct sales for a complete line may be prohibitive.

Accepted Answer

A) True 
 B)False  False

Question 4

Buying and selling activities by marketing intermediaries reduce the number of transactions for producers and end-users.

Accepted Answer

A) True 
 B)False

Question 5

Agile supply chains require long-term partnership with suppliers.

Accepted Answer

A) True 
 B)False

Question 6

Often customers shop for information in one channel,then defect from that channel to make the purchase in another medium.This process is referred to as _____.

Accepted Answer

A)   personal selling
B)   channel surfing
C)   direct distribution
D)   channel mapping

Question 7

Which of the following factors favors direct distribution by the manufacturer?

Accepted Answer

A)   Simple product/application
B)   Large number of geographically concentrated buyers
C)   Opportunity for competitive advantage
D)   Small and frequent purchases

Question 8

_____ VMS includes various formal arrangements between channel participants including franchising and voluntary chains of independent retailers.

Accepted Answer

A)   Ownership
B)   Contractual
C)   Administered
D)   Relationship

Question 9

If a company decides to distribute its products in many of the retail outlets in a trading area that might normally carry such a product,it is using a(n) _____ distribution approach.

Accepted Answer

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

Question 10

_____ is defined as the group of vertically aligned organizations that keep improving a product in moving from basic supplies to finished products for consumer and organizational end-users.

Accepted Answer

A)   Value chain
B)   Distribution strategy
C)   Retail strategy
D)   Digital channel

Question 11

Relationships between the conventional distribution channel participants are rather informal and the members are not closely coordinated.

Accepted Answer

A) True 
 B)False

Question 12

Channel _____ refers to the strategic shift from one channel to another.

Accepted Answer

A)   invasion
B)   migration
C)   innovation
D)   audit

Question 13

_____ is a network of value chain organizations performing functions that connect goods and services with end-users.

Accepted Answer

A)   Line extension
B)   Retail chain
C)   Channel of distribution
D)   Digital channel

Question 14

A primary feature of a vertical marketing system is the management (or coordination) of the distribution channel collectively by the organizations involved.

Accepted Answer

A) True 
 B)False

Question 15

The _____ of distribution is a group of vertically linked independent organizations,each trying to look out for itself,with limited concern for the total performance of the channel.

Accepted Answer

A)   digital channel
B)   vertical marketing system
C)   direct channel
D)   conventional channel

Question 16

Which of the following is the final step in selecting the distribution strategy?

Accepted Answer

A)   Selecting the channel configuration
B)   Determining the type of channel arrangement
C)   Deciding the intensity of distribution
D)   Identifying appropriate distribution strategy

Question 17

Which of the following value-added activities helps to meet buyers' time-of-purchase and variety preferences?

Accepted Answer

A)   Assembly of products into inventory
B)   Transportation
C)   Processing and storage of goods
D)   Advertising and sales promotion

Question 18

Discuss the impact of e-procurement in business-to-business marketing.

Accepted Answer

The answer of  Discuss the impact of e-procurement in business-to-business...

Question 19

Which of the following value-added activities would most effectively reduce the number of transactions for producers and end-users?

Accepted Answer

A)   Assembly of products into inventory
B)   Servicing and repairs
C)   Processing and storage of goods
D)   Buying and selling activities by marketing intermediaries

Question 20

The _____ supply chain seeks to remove waste and manage volatility out of the supply chain by leveling demand.

Accepted Answer

A)   fluid
B)   agile
C)   lean
D)   conventional

Exam 10: Value Chain Strategy

If a company decides to distribute its products through one retailer or dealer in the trading area,then the company is following a(n) _____ distribution strategy.

Discuss the factors that influence distribution decision.

A single product makes distribution by the manufacturer economically feasible,whereas the cost of direct sales for a complete line may be prohibitive.

Buying and selling activities by marketing intermediaries reduce the number of transactions for producers and end-users.

Agile supply chains require long-term partnership with suppliers.

Often customers shop for information in one channel,then defect from that channel to make the purchase in another medium.This process is referred to as _____.

Which of the following factors favors direct distribution by the manufacturer?

_____ VMS includes various formal arrangements between channel participants including franchising and voluntary chains of independent retailers.

If a company decides to distribute its products in many of the retail outlets in a trading area that might normally carry such a product,it is using a(n) _____ distribution approach.

_____ is defined as the group of vertically aligned organizations that keep improving a product in moving from basic supplies to finished products for consumer and organizational end-users.

Relationships between the conventional distribution channel participants are rather informal and the members are not closely coordinated.

Channel _____ refers to the strategic shift from one channel to another.

_____ is a network of value chain organizations performing functions that connect goods and services with end-users.

A primary feature of a vertical marketing system is the management (or coordination) of the distribution channel collectively by the organizations involved.

The _____ of distribution is a group of vertically linked independent organizations,each trying to look out for itself,with limited concern for the total performance of the channel.

Which of the following is the final step in selecting the distribution strategy?

Which of the following value-added activities helps to meet buyers' time-of-purchase and variety preferences?

Discuss the impact of e-procurement in business-to-business marketing.

Which of the following value-added activities would most effectively reduce the number of transactions for producers and end-users?

The _____ supply chain seeks to remove waste and manage volatility out of the supply chain by leveling demand.