Deck 14: Managing Marketing Channels and Supply Chains

Question 1

Which of the following does Callaway Golf NOT market and sell its products through?

A)online store
B)using athletes as salespeople (i.e., like Tupperware)
C)sporting goods retailers
D)on- and off-course golf retailers

Answer 1

B

Question 2

Partnerships are critical for Callaway Golf, which solution was implemented to ensure that partnerships were not jeopardized when they opened an online store?

A)allowing retailers to take credit if they fulfill buyer's order within 24hrs
B)the online store did not jeopardize their loyal partners
C)allowing individuals to order online but pickup at a given store
D)10 percent of every online sale was shared to all of Callaway's partners through their profit sharing program

Answer 2

A

Question 3

Reference: 14-01
Figure 14-1

A variety of terms are used for marketing intermediaries. They vary in specificity and use in consumer and business markets. According to Figure 14-1, the term that would be used to describe the intermediary in Cell "B," would be _.

A)wholesaler
B)retailer
C)middleman
D)agent or broker

Answer 3

D

Question 4

Intermediaries make the selling of goods more efficient by:

A)maximizing the number of contacts necessary between producer and consumer.
B)identifying target markets.
C)minimizing the number of sales contacts between producer and consumer.
D)reducing manufacturing costs.

Question 5

Reference: 14-01
Figure 14-1

A variety of terms are used for marketing intermediaries. They vary in specificity and use in consumer and business markets. According to Figure 14-1, the term that would be used to describe the intermediary in Cell "A," would be _.

A)middleman
B)wholesaler
C)distributor
D)retailer

Question 6

Rob stops at the supermarket to purchase a package of Oreo and other groceries. He is the ultimate consumer in a pipeline from the producer through intermediaries including the grocery store. This pipeline is actually a:

A)marketing intermediary.
B)transactional function.
C)consumer market.
D)marketing channel.

Question 7

A trucking company is shipping goods from a manufacturer in the USA up to Winnipeg, Manitoba. When the truck reaches the border, a(n)helps the
Truck clear the border as they have legal authority to deal with customs.

A)wholesaler
B)dealer
C)agent or broker
D)retailer

Question 8

You probably own several pairs of blue jeans. Further, it is likely that you purchased those jeans at retail stores located in a shopping mall. It is quite unlikely you bought the jeans directly from the manufacturer. In fact, most goods are brought to you via a(n), which consists of several organizations involved in the process of marketing products or services and making them available for our use as consumers.

A)organizational chain of command
B)marketing hierarchy
C)marketing channel
D)organizational hierarchy

Question 9

The three basic functions performed by intermediaries are:

A)contractual functions, facilitating functions, and logistical functions.
B)accommodating functions, logistical functions, and transactional functions.
C)transactional functions, logistical functions, and facilitating functions.
D)implementation functions, accommodating functions, and contractual functions.

Question 10

Several artists in Victoria, British Columbia, have created an arrangement to sell their paintings. They have set up an art gallery in downtown Charleston, so tourists and art lovers can look at their paintings and buy the ones they like. Each artist takes a turn acting as the sales clerk at the gallery. In terms of the marketing channel, the artist who is on duty in the gallery is acting as a(n):

A)wholesaler.
B)brokerage firm.
C)retailer.
D)ultimate consumer.

Question 11

Reference: 14-01
Figure 14-1

A variety of terms are used for marketing intermediaries. They vary in specificity and use in consumer and business markets. According to Figure 14-1, the term that would be used to describe the intermediary in Cell "C," would be _.

A)distributor
B)wholesaler
C)middleman
D)retailer

Question 12

On your way into school today, you stopped by Mac's Milk to pick up a Red Bull for an energy pickup. Mac's Milk is an example of a(n):

A)marketing channel.
B)consortium.
C)distribution line.
D)cartel.

Question 13

When Future Shop purchases the latest Dell computer from the manufacturer, with plans of selling it in their stores, they are taking a(n)in case the product does not sell.

A)chance
B)strategic partnership
C)risk
D)product refund

Question 14

Two students, Nick and Lee, were studying for an upcoming exam in their Introduction to Marketing course. While studying the chapter on Marketing Channels and Wholesalers, Nick made the following statement, "If it weren't for wholesalers and other intermediaries in the channel of distribution, the products we buy would cost a lot less!" After contemplating Nick's statement, Lee said, "Wait a minute. We learned in class that channel intermediaries actually make marketing more efficient by
Minimizing the number of transactions necessary to sell products." Lee's statement refers to:

A)channel intermediary development.
B)price inflation by channel intermediaries.
C)value created by channel intermediaries.
D)channel intermediary promotional efforts.

Question 15

Reference: 14-01
Figure 14-1

A variety of terms are used for marketing intermediaries. They vary in specificity and use in consumer and business markets. According to Figure 14-1, the term that would be used to describe the intermediary in Cell "F," would be _.

A)wholesaler
B)retailer
C)dealer
D)distributor

Question 16

Reference: 14-01
Figure 14-1

A variety of terms are used for marketing intermediaries. They vary in specificity and use in consumer and business markets. According to Figure 14-1, the term that would be used to describe the intermediary in Cell "E," would be _.

A)middleman
B)wholesaler
C)retailer
D)distributor

Question 17

One could describe Callaway's approach to marketing channels as:

A)multichannel
B)single channel
C)online e-commerce
D)several channel

Question 18

Callaway has a presence in over countries.

A)95
B)50
C)100
D)75

Question 19

Which of the following statements about the terms used for marketing intermediaries is true?

A)A middleman is any intermediary between manufacturer and end-user markets.
B)The most precise terms used to describe marketing intermediaries are dealer and distributor.
C)A retailer sells to business markets.
D)An agent has no legal authority to act on behalf of a manufacturer.

Question 20

Reference: 14-01
Figure 14-1

A variety of terms are used for marketing intermediaries. They vary in specificity and use in consumer and business markets. According to Figure 14-1, the term that would be used to describe the intermediary in Cell "D," would be _.

A)distributor
B)middleman
C)retailer
D)wholesaler

Question 21

A channel that includes intermediaries between the producer and consumer and perform numerous channel functions are referred to as a(n)

A)multi-level channel.
B)full-service channel.
C)indirect channel.
D)skewed channel.

Question 22

When Dell Computer sells made-to-order PCs via its website, it is an example of which type of marketing channel?

A)Direct channel
B)Strategic channel alliances
C)Indirect channel
D)Marketing channel

Question 23

In terms of distribution, when marketing channel members are engaged in financing, grading, marketing information and research, they are performing the _ function.

A)transformational
B)facilitating
C)implementing
D)logistical

Question 24

Receiving a flyer from Future Shop is an example of which function completed by an intermediary?

A)selling
B)buying
C)marketing information
D)transporting

Question 25

In a direct channel, all channel functions are performed by:

A)wholesalers.
B)retailers.
C)brokers and agents.
D)producers.

Question 26

Before consumers see a movie, it is assigned a rating such as G or PG based on its language and content. This rating system is most closely related to which facilitating function activity performed by marketing intermediaries?

A)sorting
B)grading
C)marketing
D)risk taking

Question 27

Longaberger baskets are sold at parties. A hostess invites friends and neighbours to admire the baskets the company has sent to display and takes orders. In return, the hostess is able to purchase the baskets at a discount. Longaberger uses which type of marketing channel?

A)marketing channel
B)direct channel
C)clustering
D)indirect channels

Question 28

When Hunter went to the hardware store looking for gloves to wear while refinishing a table, he bought one pair because that was all he needed, but when the hardware store purchased the gloves, it purchased a case containing 100 pairs of identical gloves. Which logistical function did the hardware store perform for Hunter?

A)buying
B)sorting
C)marketing
D)assorting

Question 29

In terms of distribution, when marketing channel members are engaged in buying, selling, and risk taking, they are performing functions.

A)facilitating
B)transformational
C)transactional
D)logistical

Question 30

When Best Buy purchases a new Xbox 360 game to sell, they receive them in bulk quantities of 500. The Best Buy employees then separate them to individual products that consumers will purchase. This is an example of which activity?

A)sorting products
B)risk taking
C)buying and selling
D)financing and grading

Question 31

Metro shopping centres receives ten bushels of Apples every day, they then sort them as either "A," "B," or "C" grade apples and price accordingly. This activity is known as:

A)storing
B)sorting
C)grading
D)financing

Question 32

In an episode of the Glee television series, members of the glee club were selling home-baked cupcakes at school, to raise money. The students selling their cupcakes without any intermediary would be an example of

A)personalized distribution.
B)direct channel of distribution.
C)informal channel of distribution.
D)non-permanent distribution.

Question 33

The Schwan Food Company of Marshall, Alberta, markets a full line of frozen foods in 49 states and parts of Canada using door-to-door salespeople who sell from refrigerated trucks. This particular method of distribution is called a(n):

A)indirect channel.
B)direct channel.
C)customer service channel.
D)facilitated channel.

Question 34

The Facilitation Manager at Costco is likely doing which of the following activities?

A)financing, grading, and marketing information and research.
B)buying, selling, and risk taking.
C)transportation and distribution.
D)assorting, sorting, and storing.

Question 35

A small electronics company manufactures a line of low to moderate quality stereo components that are distributed through wholesalers to mass market retailers such as Walmart. The electronics company has begun production of a small line of high quality, professional studio model components. How should the small electronics company distribute its new products?

A)sell indirectly to specialty electronics stores who will feature the new line
B)distribute indirectly to mass market retailers
C)distribute through agents who sell to specialty electronics stores who will feature the new line
D)use its established channel

Question 36

A consumer buys berries at Remlinger Farms, flour and sugar at a bulk food store, and milk and butter at a supermarket, then returns home to bake two dozen strawberry pies for a family reunion. Which logistical function activity did the consumer engage in that is ordinarily performed by a retailer?

A)sorting
B)storing
C)transporting
D)assorting

Question 37

In an episode of the Andy Griffith television series, two local farmers were selling the produce they grew on their farms from the back of their pickup trucks to local people that drove by on the road. The farmers selling their products without wholesalers or retailers were an example of a:

A)roadside channel of distribution.
B)direct channel of distribution.
C)traveling channel of distribution.
D)intermediate channel of distribution.

Question 38

Every Saturday morning you like driving out to the apple orchard and purchasing right from the farmer. This purchasing form is considered:

A)indirect channel
B)marketing channel
C)strategic channel alliance
D)direct channel

Question 39

In terms of distribution, when marketing channel members are engaged in assorting, storing, sorting, and transporting, they are performing functions.

A)logistical
B)implementing
C)transformational
D)facilitating

Question 40

Direct Energy selling utilities contracts, door to door is an example of which type of marketing channel?

A)marketing channel
B)indirect channel
C)strategic channel alliances
D)direct channel

Question 41

The most indirect channel for consumer goods incorporates agents, wholesalers, and retailers and is most commonly used when:

A)there are many small manufacturers and many small retailers.
B)there is too large an inventory to be carried by wholesalers.
C)there are only a few large manufacturers but many small retailers.
D)there are low-cost, low-unit-volume goods.

Question 42

Adding a wholesaler to the marketing channel for consumer goods is most common for:

A)high-cost, high-unit-value items.
B)low-cost, high-unit-value items.
C)high-cost, low-unit-value items.
D)low-cost, low-unit-value items.

Question 43

International Products, Burlington, Ontario, a firm that sells industrial cleansers and lubricants wanted to sell its product to factories, hospitals, and labs in China, but it did not have the necessary expertise. As a result International Products hired Asia
Marketing & Management to sell, stock, and deliver a full assortment of products to the Chinese market. Asia Marketing & Management is an example of a(n):

A)retailer.
B)agent.
C)wholesaler.
D)business distributor.

Question 44

The channel strategy is demonstrated when Black & Decker sells its tools in the consumer market under the Black & Decker name and basically the same tool to the business market using the DeWalt brand name. Black & Decker is using:

A)multichannel marketing.
B)multi-intermediary distribution.
C)parallel distribution.
D)strategic channel alliance.

Question 45

An intermediary that performs a variety of marketing channel functions involving selling, stocking, and delivering a full product assortment as well as providing financing for industrial goods and services is known as a(n):

A)wholesaler
B)business distributor
C)disintermediary
D)channel captain

Question 46

Pharmaceutical companies sell to hospitals and clinics directly. They market their products to large retail chains that distribute the medicines to their stores across the nation. They also sell to drug wholesalers that sell to the remaining independent drugstores in Canada. What method of distribution is used by pharmaceutical companies?

A)vertical distribution
B)direct distribution
C)multichannel marketing
D)horizontal distribution

Question 47

Apple Inc. sells its products in its own retail stores, through its own website, and through other retailers such as Best Buy. Apple is using:

A)parallel distribution.
B)multichannel marketing.
C)strategic channel alliance.
D)multi-intermediary distribution.

Question 48

Canada has gone from producing and marketing no diamonds to being the third-largest producer of diamonds in the world. This is largely due to the construction of a(n) ________.

A)just-in-time inventory system
B)confederate bridge
C)railway system
D)ice road

Question 49

Business distributors perform functions that are most like which intermediary in the consumer goods marketing channel?

A)wholesalers
B)retailers
C)manufactur ers
D)agents

Question 50

Hallmark sells its Hallmark greeting cards through Hallmark stores and select department stores, and its Ambassador brand of cards through discount and drugstore chains, thus reaching different customers with different brands. Hallmark is using:

A)multi-intermediary distribution.
B)multi-product distribution.
C)multichannel marketing.
D)strategic channel alliance.

Question 51

The most common indirect channel moves product from producer to retailer to consumer. This type of channel is most likely to exist in all of the following scenarios, except when:

A)there are so many product variations that a wholesaler could not carry them all in sufficient quantity.
B)the cost of inventory makes it too expensive to use a wholesaler.
C)the cost of maintaining inventory is low.
D)the retailer is large and can buy in large quantities.

Question 52

Mail-order selling, catalogue sales, and telemarketing, are all examples of:

A)indirect marketing.
B)impersonal marketing.
C)direct marketing.
D)channel bypass marketing.

Question 53

Facebook, Amazon.ca, Expedia.ca, and Dell.ca are all examples of:

A)Consumer-responsive channels
B)Internet distribution channels
C)Virtual marketing channels
D)Internet marketing channels

Question 54

A method of marketing which allows consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson is referred to as:

A)Impersonal marketing
B)Indirect marketing
C)Personal selling
D)Direct marketing

Question 55

GE sells certain appliances directly to home and apartment builders but uses retail stores to sell other appliances to regular homeowners. GE is using:

A)strategic channel alliance.
B)multichannel marketing.
C)multi-intermediary distribution.
D)parallel distribution.

Question 56

Indirect channels for consumer goods

A)include producers and end-users dealing directly with each other.
B)include intermediaries that are between the producer and consumer and perform numerous channel functions.
C)are arrangements whereby a firm reaches buyers by employing two or more different types of marketing channels for the same basic product.
D)occur when one firm's marketing channels are used to sell another firm's products.

Question 57

Hybrid marketing channels or dual distribution are two terms that mean the same as:

A)multichannel marketing.
B)parallel distribution.
C)multi-intermediary distribution.
D)strategic channel alliance.

Question 58

MachineTools.com sells grinders, boring mills, and engine lathes. The website has listed goods from over 700 machinery manufacturers, 2,500 distributors of new equipment, and 650 dealers of used inventory for sale at the website. MachineTools.com relies on a well-established channel of manufacturers, distributors, and machinery dealers to provide the merchandise that is sold through this:

A)Internet distribution channel.
B)Internet marketing channel.
C)consumer-responsive channel.
D)virtual marketing channel.

Question 59

The most common indirect channel moves product from producer to retailer to consumer. This type of channel is most likely to exist with each of the following EXCEPT:

A)the retailer is large and can buy in large quantities.
B)there are so many product variations that a wholesaler could not carry them all in sufficient quantity.
C)the cost of inventory makes it too expensive to use a wholesaler.
D)the retailer is small and buys in small quantities.

Question 60

Callaway Golf uses an online and storefront strategy to sell the same product. This is an example of which type of arrangement?

A)Multiple level selling
B)Multichannel marketing
C)A strategic channel alliance
D)Parallel distribution

Question 61

The purpose of implementing a vertical marketing system is to:

A)maximize marketing impact by working directly with consumers
B)coordinate the agents and brokers
C)maximize marketing impact with agents and wholesalers
D)achieve channel economies and create the maximum marketing impact

Question 62

A recent innovation in marketing channels whereby one firm's marketing channel is used to sell another firm's products is called a(n):

A)strategic channel alliance.
B)integrated channel alliance.
C)dual distribution.
D)cooperative distribution.

Question 63

Which of the following is a type of merchant wholesaler?

A)truck jobbers
B)rack jobbers
C)cash-and-carry wholesaler
D)specialty merchandise wholesaler

Question 64

When Kraft Foods uses the distribution system of Ajinomoto, a major Japanese food company, to market its Maxwell House coffee in Japan. It is employing a(n)_ strategy.

A)strategic channel alliance
B)industrial distributor
C)direct marketing channel
D)dual distribution system

Question 65

Which type of marketing channel arrangement is good for a firm to use in international marketing where the creation of marketing channel relationships is expensive and time consuming?

A)dual distribution
B)strategic channel alliance
C)integrated global channel alliance
D)cooperative distribution

Question 66

Josmar Farms, sells their products directly at their storefront, at a local farmers market, through a local convenience store, and through an online storefront using Facebook. They are referred to as a(n):

A)multi-tailers
B)multi-retailers.
C)poly-retailers.
D)multichannel retailers.

Question 67

Kraft distributes Starbucks coffee in supermarkets. This is called a(n):

A)cooperative distribution.
B)strategic channel alliance.
C)integrated channel alliance.
D)dual distribution.

Question 68

A regional manufacturer of dairy products has developed a frozen soy-based yogurt product. It feels the choice of distribution channel is critical to the product's success, especially since it wants to have the product distributed nationally. However, it will take some time before sales take off, and it wants to make sure the marketing program is consistent everywhere. It should use:

A)the services of a selling agent to sell to general merchandise wholesalers who will sell to retailers.
B)a dual distribution system composed of both direct and indirect wholesalers.
C)its own sales force to sell directly to retailers.
D)manufacturers' agents to sell to truck jobbers who in turn will deal with retailers.

Question 69

Which type of wholesaler carries a broad assortment of merchandise and performs all channel functions?

A)limited-line wholesaler
B)rack jobber
C)general merchandise wholesaler
D)specialty merchandise wholesaler

Question 70

Which limited-service wholesalers perform no facilitating functions?

A)cash-and-carry wholesalers and truck jobbers
B)selling agents and drop shippers
C)specialty merchandise wholesalers and rack jobbers
D)manufacturers' agents and selling agents

Question 71

All of the following are hauled using the ice road built in Nunavut except:

A)steel
B)conveyer system
C)300,000 tons of fuel
D)explosives

Question 72

Ryder Integrated Logistics is charged with making Saturn's JIT system work smoothly. A driver is equipped with a plastic key that plugs into an on-truck computer. The computer informs the driver of all of the following except:

A)the route to use
B)where to go
C)how much time to spend getting to the destination
D)all of these

Question 73

A Ryder truck driver downloads delivery instructions from an onboard computer to help get supplies for Saturn, an automobile manufacturer. This is part of Saturn's ________.

A)wholesaling system
B)customer service system
C)target market coverage
D)just-in-time inventory system

Question 74

Bauer Sports Inc. is a wholesaler that specifically focuses on hockey skates, hockey helmets, and hockey gloves. Bauer Sports Inc. is likely a(n):

A)general merchandise wholesaler
B)specialty merchandise wholesaler
C)cash-and-carry wholesaler
D)limited-service wholesaler

Question 75

Abbott Laboratories, a manufacturer of several popular over-the-counter medications, warehouses and delivers all of 3M's medical and surgical products to hospitals across the nation. The agreement between Abbott Laboratories and 3M is an example of:

A)a cooperative distribution channel.
B)a strategic channel alliance.
C)a direct marketing channel.
D)multichannel marketing.

Question 76

Which of the following is NOT a type of limited-service wholesaler?

A)truck jobber
B)rack jobber
C)general merchandise wholesaler
D)cash-and-carry wholesaler

Question 77

Merchant wholesalers are independently owned firms that the merchandise they handle.

A)take title to
B)determine intensity strategy for
C)broker
D)act as agent for

Question 78

Meyers Inc. is a Canadian company that manufactures and distributes coffee products in Canada. Because of the wide popularity of its products in Canada, Meyers wants to initiate distribution internationally as soon as possible. The most efficient distribution arrangement in terms of cost and time for Meyers Inc. to use would be:

A)cooperative distribution.
B)a strategic channel alliance.
C)multichannel marketing.
D)direct marketing.

Question 79

The ice roads play a vital ________ in the of Canada's growing diamond industry.

A)supply chain; logistics function
B)logistics function; supply chain
C)supply chain; pricing function
D)pricing function; supply chain

Question 80

All of the following are types of specialty merchandise wholesalers EXCEPT:

A)drop shippers.
B)truck jobbers.
C)televised home shopping networks.
D)rack jobbers.