Deck 12: Marketing Channels: Delivering Customer Value

Question 1

Most producers today sell their goods directly to ________.

A) final users
B) final users and marketing members
C) intermediaries
D) warehouses
E) third-party logistics providers

Answer 1

intermediaries

Question 2

Which of the following is NOT a key function that intermediaries play in completing transactions?

A) promotion
B) information
C) matching
D) risk taking
E) negotiation

Answer 2

risk taking

Question 3

An advantage of a channel of distribution over selling direct to consumers is that each channel member plays a(n)________ in the channel.

A) time-saving part
B) specialized role
C) decisional role
D) informational role
E) disciplinary role

Answer 3

specialized role

Question 4

A business marketer can sell to sell to various types of __________,who in turn sell to these customers.

A) final users
B) final users and marketing members
C) intermediaries
D) the government at various levels
E) competitors

Question 5

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

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

Question 6

From the economic system's point of view,the role of marketing intermediaries is to transform the assortment of products made by producers into the assortment of products wanted by ________.

A) channel members
B) distributors
C) consumers
D) manufacturers
E) marketers

Question 7

________________ buy large quantities from many producers and break them down into the smaller quantities and broader assortments wanted by consumers.

A) Intermediaries
B) Marketing channel members
C) Corporate marketers
D) Finance companies
E) Customers

Question 8

Joanie Chan is experiencing a disagreement with intermediaries in the channel over who should do what and for what rewards.Joanie is experiencing ________.

A) a tying disagreement
B) channel conflict
C) channel disintermediation
D) third-party logistics
E) channel intermediation

Question 9

Intermediaries play an important role in matching ________.

A) dealer with customer
B) supply and demand
C) product to region
D) manufacturer to product
E) information and promotion

Question 10

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

A) less distance between producer and end consumer
B) less control
C) fewer potential ideas
D) higher taxes
E) fewer channel partners

Question 11

Which of the following is NOT a key function that intermediaries play in helping to fulfill a completed transaction?

A) physical distribution
B) promotion
C) financing
D) risk taking
E) storing goods

Question 12

________ the manufacturer or service provider is the set of firms that supply the raw materials,components,parts,information,finances,and expertise needed to create a product or service.

A) Downstream from
B) Upstream from
C) Disintermediated from
D) Horizontal to
E) Parallel with

Question 13

In a(n)________ channel,the same member both produces and distributes a product or service.

A) tiered
B) direct
C) horizontal
D) vertical
E) exclusive

Question 14

In marketing terms,we say that the number of intermediary levels indicates the ________ of a channel.

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

Question 15

Channel members add value by bridging the major gaps of ________ that separate goods and services from those who would use them.

A) time, need, and form
B) place, possession, and form
C) time, place, and possession
D) place, time, and need
E) place, need, and distribution

Question 16

In a global marketplace,selling a product is sometimes easier than getting it to _________.

A) promotion
B) acquisition
C) customers
D) return product
E) by-product

Question 17

Which of the following is NOT a typical supply chain member?

A) resellers
B) customers
C) intermediaries
D) government agencies
E) raw materials supplier

Question 18

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 generally backlogged with orders
E) refuse to store products for longer than a few days

Question 19

When suppliers,distributors,and customers partner with each other to improve the performance of the entire system,they are participating in a ________.

A) value delivery network
B) channel of distribution
C) supply chain
D) demand chain
E) conventional distribution channel

Question 20

All of the following are typical supply chain members EXCEPT ________.

A) resellers
B) customers
C) intermediaries
D) intermediary creditors
E) C and D

Question 21

The four major steps of designing a channel system are analyzing consumer needs,setting channel objectives,________,and evaluating the alternatives.

A) establishing a budget
B) identifying major channel alternatives
C) seeking regulatory approval
D) seeking legal advice
E) measuring objectives

Question 22

Which of the following are the three major types of vertical marketing systems?

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

Question 23

Due in a large part to advances in technology,________ is a major trend whereby product and service producers are bypassing intermediaries and going directly to final buyers,or radically new types of channel intermediaries are emerging to displace traditional ones.

A) the vertical marketing system
B) the corporate marketing system
C) disintermediation
D) the corporate merger
E) the hostile takeover

Question 24

________ conflict,which occurs between different levels of the same channel,is more common than ________ conflict,which occurs among firms at the same level of the channel.

A) Horizontal; vertical
B) Vertical; horizontal
C) Contractual; corporate
D) Corporate; franchise
E) Wholesaler; retailer

Question 25

To increase a channel's service level,the channel must provide a greater assortment of products,more add-on services,or ________.

A) lower prices
B) fewer middlemen
C) faster delivery
D) more competition
E) less follow-up

Question 26

Which of the following is an example of a manufacturer-sponsored retailer franchise system?

A) fast-food restaurants such as McDonald's and Burger King
B) Starbucks operating within Target stores
C) Toyota and its network of independent franchised dealers
D) licensed bottlers that bottle and sell Coca-Cola to retailers
E) motels such as Holiday Inn and Ramada Inn

Question 27

A distinguishing feature of a contractual VMS is that coordination and conflict management among the independent members of the channel are attained through ________.

A) agents and brokers
B) unspoken partnerships
C) limited liability incorporation
D) contractual agreements
E) natural competitive forces

Question 28

An advantage of a vertical marketing system (VMS)is that it acts as a ________ system.

A) unified
B) creative
C) modern
D) customer-driven
E) task-driven

Question 29

Historically,________ have lacked the leadership to assign member roles and manage conflict.

A) corporate vertical marketing systems
B) contractual vertical marketing systems
C) conventional distribution channels
D) administered vertical marketing systems
E) conventional vertical marketing systems

Question 30

As marketing manager for Globe Imports and Exports,you want to start reaping the benefits of a multichannel distribution system.You will likely enjoy all of the following EXCEPT which one?

A) expanded sales
B) expanded market coverage
C) selling at a higher gross margin
D) opportunities to tailor products and services to the needs of diverse segments
E) A and C

Question 31

The most common type of contractual relationship in business is the ________.

A) franchise organization
B) administered marketing system
C) conventional marketing channel
D) corporate VMS
E) horizontal marketing system

Question 32

Which of the following is the most likely disadvantage of disintermediation?

A) decreasing understanding of complex markets
B) direct competition with established channels
C) fewer opportunities for franchising
D) increasing disintermediation
E) reducing conflict among channel members

Question 33

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

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

Question 34

Companies should state their channel objectives in terms of targeted levels of ________.

A) co-op advertising
B) efficiency
C) customer service
D) conflict reduction
E) profitability

Question 35

A channel consisting of one or more independent producers,wholesalers,or retailers that seek to maximize their own profit-even at the expense of profits for the channel as a whole-is a(n)________.

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

Question 36

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

A) a profit-maximizing strategic plan
B) single ownership
C) mass distribution
D) contracts among separate members
E) franchise agreements

Question 37

Philips,the global appliance manufacturer,exchanging shares with TCL,a Chinese appliance manufacturer,so that Philips can use TCL's 2,000 distribution outlets throughout China is an example of what form of channel development?

A) conventional distribution channel
B) corporate VMS
C) contractual VMS
D) administered VMS
E) horizontal marketing system

Question 38

Which of the following should be the first step in designing a marketing channel?

A) identifying channel objectives
B) identifying what consumers want from the channel
C) analyzing channel alternatives
D) evaluating intermediaries
E) exploring international opportunities

Question 39

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

A) horizontal marketing system
B) administered VMS
C) corporate VMS
D) multichannel distribution system
E) conventional marketing channel

Question 40

A conventional distribution channel consists of one or more ________ producers,wholesalers,and retailers.

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

Question 41

Which product will most likely be intensively distributed?

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

Question 42

Marketing logistics involves which of the following distribution flows?

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

Question 43

Most companies practice strong PRM to forge long-term relationships with channel members.What does PRM stand for?

A) primary relationship management
B) potential relationship management
C) perennial relationship management
D) partner relationship management
E) personnel roster maintenance

Question 44

Sometimes a producer chooses only a few dealers in a territory to distribute its products or services.Generally these dealers are given a right to ________ distribution.

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

Question 45

When a company is identifying its major channel alternatives,it should consider its choices in terms of ________ of intermediaries.

A) size, power, and profitability
B) power, cooperativeness, and location
C) types, number, and responsibilities
D) capacity, creativity, profitability
E) types, breadth, depth

Question 46

An intensive distribution strategy is most suitable for which consumer product category?

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

Question 47

Exclusive dealing is legal as long as it does not ________ or tend to create a monopoly and as long as both parties enter into the agreement ________.

A) substantially lessen competition; coercively
B) restrict trade; for a cause
C) substantially lessen competition; voluntarily
D) interfere with competitors; forcefully
E) create a smaller market; permanently

Question 48

It is most common for international marketers to ________ their channel strategies for each country.

A) extend
B) adapt
C) restrict
D) seek approval for
E) eliminate

Question 49

Caterpillar,the famous heavy equipment manufacturer,has a reputation for working in harmony with its worldwide distribution network of independent dealers.Caterpillar has shared its successes with its dealers and protected its dealers during difficult economic times.This is an example of ________.

A) intensive distribution
B) integrated logistics management
C) disintermediation
D) 3PL
E) PRM

Question 50

Which type of product might require a more direct marketing channel to avoid delays and too much handling?

A) lower-priced products
B) perishable products
C) high-priced products
D) products in their maturity stage
E) products in their decline stage

Question 51

A producer of a strong brand that agrees to sell its brand to a dealer only if the dealer will take some or all of the rest of the line is using ________.

A) exclusive distribution
B) exclusive dealing
C) intensive distribution
D) a tying agreement
E) disintermediation

Question 52

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

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

Question 53

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) exclusive
B) selective
C) intensive
D) administered
E) corporate

Question 54

Sometimes a seller requires its dealers to abstain from handling competitors' products in an arrangement called ________.

A) exclusive distribution
B) exclusive dealing
C) selective distribution
D) exclusive pricing
E) disintermediation

Question 55

Sometimes ______________ regulation can greatly restrict how a company distributes products in global markets.

A) competitors or partners
B) customs or government
C) competitors or marketers
D) customers or employees
E) competitors or customers

Question 56

When establishing the responsibilities of channel members,the producer establishes a list price,sets discounts for intermediaries,and defines each channel member's ________.

A) sales limits
B) territory
C) legal rights
D) customers
E) mission

Question 57

When a company compares the likely sales,costs,and profitability of different channel alternatives,it is using ________ criteria to evaluate its channel options.

A) selective
B) adaptive
C) economic
D) control
E) distribution

Question 58

Marketing logistics involves getting the right product to the right customer in the right place at the right time.Which one of the following is NOT included in this process?

A) planning the physical flow of goods and services
B) implementing the plan for the flow of goods and services
C) controlling the physical flow of goods, services, and information
D) gathering customer's ideas for new products
E) planning the flow of logistics information to meet customer requirements at a profit

Question 59

________ logistics controls the movement of products from points of production to consumers.

A) Inbound
B) Reverse
C) Outbound
D) Vertical
E) Horizontal

Question 60

China and India each contain more than one billion people.However,companies can access only a small percentage of these potential markets due to ________.

A) inadequate distribution systems
B) indifference toward Western products
C) high regional taxes
D) the religious caste system
E) insurmountable language barriers

Question 61

Which of the following transportation modes is used for digital products?

A) trucks
B) rail
C) the Internet
D) air
E) ship

Question 62

Which of the following best states the goal of integrated supply chain management?

A) to stabilize costs
B) to increase services with minimal cost through teamwork
C) to harmonize all of the company's logistics decisions
D) to eliminate conflict and increase cooperation among channel members
E) to ensure consistent services with minimal costs

Question 63

Aleoca sells its bicycles to Carrefour,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) retailer channel
E) corporate vertical marketing system

Question 64

The goal of marketing logistics should be to provide a ________ level of customer service at the least cost.

A) maximum
B) targeted
C) moderate
D) minimum
E) noncompetitive

Question 65

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

A) A manufacturing company sells drapery hardware to Takashimaya department store, which then sells it to consumers.
B) Daiso sells modeling clay to school-age children.
C) A wholesaler sells candy to convenience stores, who then sell it to store patrons.
D) Avon and Amway sell their products door to door, through home and office sales parties, and on the Web.
E) A farmer in Columbia sells flowers to an international broker, who makes sure the flowers reach consumers in Asia.

Question 66

Using ________,retailers can share real-time data on sales and current inventory levels with suppliers who take responsibility for ordering and delivering products to retailers,thereby saving time and money.

A) dual distribution modes
B) continuous inventory replenishment systems
C) an Intranet
D) intensive distribution
E) integrated distribution

Question 67

Which of the following is NOT a marketing intermediary?

A) the supplier of the raw materials used to make glass windows
B) the distributor who sells stained glass windows
C) the wholesaler who buys the stained glass window from its creator
D) the showroom that displays glass windows for customers to see
E) the manufacturers' agent who sells the stained glass windows

Question 68

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) reduction-inventory management
B) just-in-time logistics
C) limited inventory logistics
D) supply chain management
E) economic order quantity

Question 69

In choosing a _____________ for a product,shippers must balance many considerations: speed,dependability,availability,cost,and others.

A) integrated logistics system
B) partnership management system
C) transportation mode
D) third-party project
E) cross-functional, cross-company team

Question 70

Li & Fung's Total Value-Added Package,which handles all of its clients' "grunt work" associated with logistics,is an example of ________.

A) integrated logistics management
B) a distribution center
C) selective distribution
D) a third-party logistics provider
E) a cross-functional, cross-company team

Question 71

Through the use of ________,or "smart tag" technology,a company is able to locate a product's exact position within the supply chain.

A) RFID
B) PRM
C) VMS
D) IT
E) 3PL

Question 72

Asian Box Solutions wants to provide better customer service while trimming distribution costs through teamwork,both inside the company and among all the marketing channel organizations.Asian Box Solutions is thinking of ________.

A) integrated logistics management
B) vendor-managed inventory
C) customer relationship management
D) third-party logistics
E) disintermediation

Question 73

Which of the following is NOT an area of responsibility for a logistics manager?

A) information systems
B) warehousing
C) promotions
D) inventory
E) purchasing

Question 74

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

A) store goods for longer periods
B) hold larger volumes
C) move goods rather than just store them
D) primarily be owned by the manufacturer
E) be automated

Question 75

Which of the following innovations has created opportunities for significant gains in distribution efficiency?

A) tying agreements
B) Web-based logistics systems
C) customer relationship management
D) contractual vertical marketing systems
E) storage warehouses

Question 76

When Toyota dealers in one territory complain that dealers in another steal sales from them by pricing too low or by advertising outside their assigned territories,they are in a ________ conflict.

A) vertical
B) conventional channel
C) logistics
D) horizontal
E) functional

Question 77

By _______________,a company can gain a complete distribution system without incurring the costs,delays,and risks associated with setting up its own system.

A) promoting its products through advertising
B) assembling and packaging its products for final sale
C) distributing relevant marketing research information
D) outsourcing its logistics
E) negotiating on its products' prices

Question 78

In the proper order,identify the correct terms for these intermodal transportation combinations: rail and truck,water and truck,water and rail.

A) fishyback; airtruck; trainship
B) piggyback; airtruck; fishyback
C) trainship; fishyback; piggyback
D) piggyback; fishyback; trainship
E) piggyback, fishyback; birdyback

Question 79

Today,a growing number of firms now outsource some or all of their logistics to ________.

A) cross-functional teams
B) disintermediaries
C) horizontal channel members
D) third-party logistics providers
E) competitors

Question 80

________ logistics concerns the moving of broken,unwanted,or excess products.

A) Inbound
B) Reverse
C) Outbound
D) Vertical
E) Horizontal