Deck 13: Marketing Channels and Supply-Chain Management

Question 1

Distribution decisions have little influence on the rest of the marketing mix.

Answer 1

False

Question 2

Today, marketing focuses solely on certain downstream supply-chain activities.

Answer 2

False

Question 3

The services or responsibilities provided by some intermediaries can be eliminated effectively without causing an increase in the services or responsibilities provided by other intermediaries.

Answer 3

False

Question 4

The purpose of a marketing channel is to make products available at the right time at the right place in the right quantities.

Question 5

Place utility is created by the customer having access to the product to use or store for future use.

Question 6

Supply chains start with the producer.

Question 7

Marketing intermediaries are marketing institutions, such as retailers and wholesalers, which perform marketing functions necessary to direct products to customers.

Question 8

Long-term commitments usually characterize the relationships among channel members.

Question 9

A marketing channel is not the same thing as a distribution channel.

Question 10

Sometimes a marketing channel is quite simple and short, perhaps running directly from a producer to the final user or consumer.

Question 11

Buyers' behavior is unimportant to channel members.

Question 12

Marketing intermediaries bridge the gap between suppliers (or producers) and buyers (or consumers).

Question 13

The shortest possible distribution channel would be producer to retailer to consumer.

Question 14

Marketing channels create several types of utility including time, place, possession, and form.

Question 15

It is usually easier to change marketing channels than to change prices or promotion.

Question 16

Supply-chain management includes only producers, wholesalers, retailers, and customers.

Question 17

Agents are seldom used in channels for consumer products.

Question 18

The cost of a business product may affect the distribution channel selected for it.

Question 19

Marketing intermediaries never establish pricing policies and terms of sale.

Question 20

Marketing intermediaries can reduce the cost of exchanges.

Question 21

Industrial distributors and their agents are typical types of intermediaries found in channels for consumer products.

Question 22

The Internet is making the line between different marketing channels increasingly blurred.

Question 23

When higher-priced or technically complex business products are involved, business customers prefer to deal directly with producers rather than through intermediaries.

Question 24

Small firms are more likely to be in a position to have more distribution centers that may reduce delivery times to customers.

Question 25

Jamie is a shoe designer. She developed a new type of high-heeled shoe at a reasonable price point. It is time to decide how the shoe should be distributed. Jamie knows that the shoe will require adequate service from retailers at the point of purchase. She should use an exclusive distribution strategy.

Question 26

Some marketing channels are organized and controlled by a single leader.

Question 27

Business customers prefer to deal with producers through intermediaries and thus eliminate much of the burden of sorting out details.

Question 28

Both a manufacturers' agent and an industrial distributor may be used when the organizational marketer wishes to cover a larger geographic area but does not maintain a sales force.

Question 29

Marketers of complex and expensive products such as automobiles will likely employ long channels with many knowledgeable intermediaries.

Question 30

A producer that sells similar products through different channels under different brand names is engaging in multichannel distribution.

Question 31

Retailers are frequently found in business product channels.

Question 32

Like manufacturers' agents, industrial distributors do not take title to products or carry inventories.

Question 33

Only producers can be channel captains.

Question 34

Specialty products that require service information and are consumed over a long period of time are likely to be distributed on an exclusive basis.

Question 35

Intensive distribution is appropriate for shopping products.

Question 36

Agents are used in business channels for standardized products and in situations in which information gathering and selling functions are important.

Question 37

Multichannel distribution is the use of a variety of marketing channels to ensure maximum distribution.

Question 38

The success or failure of a competitor's marketing channel may encourage or dissuade an organization from considering a similar approach.

Question 39

Channel power is an ability related to influencing the goals of other channel members.

Question 40

Convenience products usually are distributed intensively because sales of these products tend to have a direct relationship to availability.

Question 41

Conflicts with the retailer may develop if the dealer decides to place too much emphasis on competing product lines.

Question 42

Inventory management involves developing and maintaining adequate assortments of products to meet customers' needs.

Question 43

Whereas the marketing channel is a group of interrelated organizations that directs products to customers, physical distribution deals with physical movement and storage of products both within and among intermediaries.

Question 44

The overall safety stock, or inventory needed to prevent a stockout, depends on the general level of prices.

Question 45

Producers do not engage in horizontal integration.

Question 46

During order entry, a customer's credit rating is checked by the credit department.

Question 47

Channel conflict is necessary to facilitate efficient performance within the channel.

Question 48

Safety stock helps protect an organization against stockouts.

Question 49

The reorder point can be calculated by multiplying the usage rate by the order lead time and then adding in the number of safety stock.

Question 50

When American Airlines acquired U.S. Airways, this was an example of a contractual VMS.

Question 51

Because of its speed, electronic order processing provides greater flexibility than manual processing in unique situations.

Question 52

Drawing together the processes and functions of two or more stages of the channel under one management is horizontal integration.

Question 53

The main objectives of physical distribution are decreasing costs while increasing customer service.

Question 54

Order processing can be manual or electronic.

Question 55

In vertical integration, control is expanded to two or more successive links of production or distribution.

Question 56

Inventory decisions seldom have a strong impact on physical distribution costs and on the level of customer service provided.

Question 57

Warehousing involves designing and operating facilities to store and move goods.

Question 58

Unit loading is grouping one or more boxes on a skid.

Question 59

Materials handling is important in efficient warehouse operations but has little to do with customers' ultimate satisfaction with a product.

Question 60

Franchising is typical of the administered vertical marketing system.

Question 61

Pipelines are not one of the major transportation modes for moving goods between cities in the United States.

Question 62

The courts have determined that producers have the right under most circumstances to choose or reject the channel members with which they will do business.

Question 63

Private warehouses are usually leased or purchased when a firm believes its warehouse needs are so stable that it can make a long-term commitment to fixed facilities.

Question 64

The use of a freight forwarder that consolidates shipments from several organizations into efficient lot sizes usually increases transit time and sometimes raises shipping costs.

Question 65

Rail transportation is the fastest yet most expensive form of shipping.

Question 66

Third-party logistics firms combine shipments from several organizations into efficient lot sizes.

Question 67

RFID uses radio waves to identify and track materials tagged with special microchips.

Question 68

Transportation is the least expensive physical distribution function.

Question 69

Public warehouses do not furnish security for products being used as collateral for loans.

Question 70

Exclusive dealing occurs when a supplier stipulates that a channel member must purchase additional products besides the one it wants.

Question 71

Bonded storage means that goods will not be released until U.S. customs duties or federal or state taxes or other fees are paid.

Question 72

Cost, speed, load flexibility, dependability, frequency, and accessibility are considered when choosing a transportation mode.

Question 73

Third-party logistics firms have special expertise in core physical distribution activities and can often perform these activities more efficiently.

Question 74

Because costs for small shipments (under 500 pounds) are sharply higher than costs for full loads in railroad cars and trucks, firms share costs and services by consolidating shipments.

Question 75

Refusal-to-deal arrangements involve a manufacturer that forbids an intermediary to carry products of competing manufacturers.

Question 76

Public warehouses are business organizations whose primary activity is providing storage and related physical distribution facilities on a rental basis to government organizations.

Question 77

Full-line forcing requires that channel members purchase the supplier's entire line to obtain any of the products.

Question 78

Product availability is dependent on transportation functions.

Question 79

Freight forwarders are companies that offer several shipment methods, including rail, truck, and air service.

Question 80

On-time deliveries may give a firm a competitive edge.