Deck 15: Deliver Value Through Supply Chain Manage-Ment: Channels of Distribution and Logistics

Question 1

In the chapter opener,Darden Restaurants had a(n)distributor,one who was the single food distributor.

A)extensive
B)intensive
C)administered
D)exclusive
E)selective

Answer 1

D

Question 2

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

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

Answer 2

E

Question 3

Channels of distribution provide which of the following?

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

Answer 3

B

Question 4

Which of the following statements about business- to- business channels is true?

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

Question 5

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

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

Question 6

The fastest and most expensive mode of transportation is .

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

Question 7

In many industries,traditional intermediaries are dropping by the wayside because of changes in and the growth of marketing.

A)state and local laws; target
B)federal laws; business- to- business
C)franchise structure; independent
D)technology; on- line
E)channel design; retail

Question 8

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

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

Question 9

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

Question 10

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

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

Question 11

Jewels for the Rich and Famous sells very exclusive jewelry with a minimum price of $25,000 to customers around the world.Speed of delivery to distant markets is a must.Management should use as its main carrier.

A)air
B)pipeline
C)water
D)railroads
E)trucks

Question 12

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

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

Question 13

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

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

Question 14

Tony Pool Chemical Co.purchased 144 buckets of chlorine tablets over the Internet from Chemical,Inc.,then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store.Chemical,Inc.took title to the pool chemicals but never actually took possession of them.Chemical,Inc.is an example of a .

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

Question 15

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

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

Question 16

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

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

Question 17

Producers benefit from using intermediaries because they .

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

Question 18

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

Question 19

Running advertisements in local newspapers,offering credit to buyers,and providing maintenance service for products are all examples of functions provided by channel intermediaries.

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

Question 20

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)manufacturer's office
E)merchandise brokerage

Question 21

Which of the following encompasses all of a firm's activities to create products and services that in turn create value for the consumer and make a profit for the company?

A)the vertical marketing system
B)the supply chain
C)the value chain
D)the conventional marketing system
E)the channel of distribution

Question 22

Nita can visit her local supermarket and buy a dozen roses,a gallon of milk,two birthday cards,a bag of cat litter,and a pan for roasting a turkey.This illustrates how channels of distribution benefit consumers by .

A)managing relationships
B)creating atmospherics
C)managing logistics
D)managing knowledge
E)creating assortments

Question 23

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

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

Question 24

Each department in a company that carries out value- creating activities can be thought of as a link in the company's .

A)vertical marketing system
B)value chain
C)supply chain
D)enterprise resource planning system
E)insourcing chain

Question 25

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)strategic allies
C)channel intermediaries
D)channel leaders
E)enterprise resource planners

Question 26

Which of the following activities in the value chain involves the transformation of materials into final product form,such as by machining,packaging,and assembly?

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

Question 27

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

Question 28

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

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

Question 29

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

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

Question 30

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

A)Members of conventional marketing systems are not working toward the same broad goals.
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)Conventional marketing systems are multilevel distribution channels.

Question 31

A brand of variety stores is part of a wholesaler- sponsored voluntary chain.This means these retailers are members of a(n)vertical marketing system (VMS).

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

Question 32

Chewing gum is stocked in many outlets in the same market or community; in fact,it is placed in as many outlets as possible.This is an example of distribution.

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

Question 33

What are the three major types of vertical marketing systems?

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

Question 34

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

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

Question 35

The producer- retailer- consumer channel is .

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

Question 36

Which of the following is most likely exclusively distributed?

A)Coca- Cola
B)BMW automobiles
C)Diesel blue jeans
D)Prairie Farms yogurt
E)Bazooka bubble gum

Question 37

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

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

Question 38

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

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

Question 39

Which stage of activity in the value chain involves activities that enhance or maintain the value of the product,such as by installation or repair?

A)services
B)operations
C)outbound logistics
D)marketing and sales
E)procurement

Question 40

Which of the following is most likely intensively distributed?

A)Coca- Cola
B)BMW automobiles
C)Nike running shoes
D)Diesel blue jeans
E)Olympus digital cameras

Question 41

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

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

Question 42

Which of the following is an example of a dual distribution system?

A)Avon's door- to- door distribution
B)Starbucks located inside a bookstore
C)a hotel providing guest privileges at a nearby health spa
D)J)C.Penney's catalog and retail store sales
E)Wal- Mart locating in several countries

Question 43

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

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

Question 44

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

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

Question 45

Support activities in the generic value chain include all of the following EXCEPT which one?

A)procurement
B)market research
C)human resource management
D)firm infrastructure
E)technology development

Question 46

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

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

Question 47

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

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

Question 48

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)inbound
C)outbound
D)logistic
E)direct

Question 49

Which of the following modes of transportation would most likely be used to quickly haul lettuce from California where it was grown to markets in Nevada?

A)trucks
B)pipeline
C)air
D)railroads
E)water

Question 50

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

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

Question 51

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

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

Question 52

,or manufacturers' representatives,represent a buyer or seller on an ongoing basis.

A)Brokers
B)Franchisers
C)Intermediaries
D)Retailers
E)Agents

Question 53

Tony Pool Chemical Co.purchased 144 buckets of chlorine tablets over the Internet from Chemical,Inc.,who then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store.Chemical,Inc.is an example of which of the following?

A)a reverse flow marketer
B)a piggyback marketer
C)a wholesaling intermediary
D)a hybrid marketer
E)a disintermediator

Question 54

A(n)brings buyers and sellers together and assists in negotiations.

A)agent
B)commission merchant
C)broker
D)wholesaler
E)retailer

Question 55

In marketing terms,the number of intermediary levels indicates the of a channel.

A)depth
B)width
C)involvement
D)length
E)effectiveness

Question 56

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

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

Question 57

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

Question 58

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

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

Question 59

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

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

Question 60

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

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

Question 61

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

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

Question 62

Suzie Chan strengthens her company's connections by treating suppliers of raw materials,vendors,and distributors as partners in delivering customer value.What type of management is she practicing?

A)outsourcing
B)customer development
C)channel of distribution
D)insourcing
E)supply chain

Question 63

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

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

Question 64

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

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

Question 65

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

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

Question 66

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

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

Question 67

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

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

Question 68

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

Question 69

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

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

Question 70

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

Question 71

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

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

Question 72

An independent hardware retail store 100 miles from the nearest city of more than 5,000 people but providing needed supplies for area ranchers would most likely buy its plumbing and electrical supplies through a _ _.

A)rack jobber
B)merchandise broker
C)truck jobber
D)mail- order wholesaler
E)commission merchant

Question 73

Which of the following statements about merchandise brokers is true?

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

Question 74

Which of the primary activities in the value chain involves handling advertising,promotion,channel selection,and pricing?

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

Question 75

Increasingly commonplace today is the appearance of two different franchise chains under the same roof,such as Pizza- Hut and Taco Bell.This is an example of a(n)marketing system.

A)horizontal
B)cooperative
C)administered
D)vertical
E)conventional

Question 76

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

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

Question 77

Drop shippers do all of the following EXCEPT which one?

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

Question 78

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

Question 79

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

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

Question 80

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 rack jobber
D)a small retailer
E)a large retail chain