Deck 11: Managing Marketing Channels and the Supply Chain

Question 1

Cutting out intermediaries is always a guarantee of saving consumers' money.

Answer 1

False

Question 2

A push strategy doesn't mean a manufacturer wouldn't engage in any channel incentives,but rather that the incentives would likely be greatly reduced versus a pull strategy.

Answer 2

False

Question 3

Intensive distribution is typically associated with shopping goods.

Answer 3

False

Question 4

In case of marketing planning,a good channel decision can be one of the most important decisions within the entire planning process because it leads to market advantage over competitors.

Question 5

Unresolved channel conflict will never result in an uncooperative and inefficient channel,but it may impact end-user consumers through inferior products,spotty inventory,and higher prices.

Question 6

Exclusive dealing may be legal if the parties show exclusivity is essential for strategic reasons,such as to maintain product image.

Question 7

Effective transportation management is one way that many firms can keep a lid on costs while also optimizing delivery options for customers.

Question 8

Often,channel members adopt an approach of utilizing their unique competencies to influence others in the channel.

Question 9

Physical distribution,or logistics,is the integrated process of moving input materials to the producer,in-process inventory through the firm,and finished goods out of the firm through the channel of distribution.

Question 10

Outbound logistics deals with how to get goods back to a manufacturer or intermediary after purchase.

Question 11

A producer can always grant an intermediary an exclusive territory for sales purposes.

Question 12

Many organizations are beginning to consider their customers-both end-users and within a channel-as less important members of a value network.

Question 13

A channel is a system of interdependent relationships among a set of organizations that facilitates the exchange process.

Question 14

Channel intermediaries enhance utilities by providing a wide array of specific functions.

Question 15

The value chain portrays a mixture of primary and support activities utilized by an organization to design,produce,market,deliver,and support its products.

Question 16

An agent is a business entity that negotiates purchases,sales,or both and takes title to the goods involved.

Question 17

Manufacturers' costs would skyrocket if they held the responsibility for interfacing with and delivering products to every one of their end users.

Question 18

Collecting market and competitive information helps only one member of the channel in offering the right product mix at the right prices.

Question 19

Most post-mortems on the cause of the dot-com bust point to poor channel and supply chain practices as the No.1 reason why so many of those initial e-marketers failed.

Question 20

Exclusive distribution often arises because a significant personal selling effort is required with the consumer before product purchase.

Question 21

When McDonald's requires franchisees that want to participate in the latest scratch-off game to sign an agreement as to how the game will be promoted and administered in the store,it is exercising ____________ to control misuse of the promotional activity.

A) Coercive power
B) Reward power
C) Expert power
D) Referent power
E) Legitimate power

Question 22

Channel members add their value by bridging gaps in form,time,place,and ownership that naturally exist between __________________.

A) Consumers and transporters
B) Producers and transporters
C) Producers and consumers
D) Producers and retailers
E) None of the above

Question 23

______________ functions are among the most commonly provided channel intermediary activities.

A) Market research
B) Quality evaluation
C) New product development
D) Product advertising
E) Transportation and storage

Question 24

Subway,the world's largest franchise system,is an example of _______.

A) Diversification
B) Horizontal integration
C) Corporate VMS
D) Contractual VMS
E) Administered VMS

Question 25

Intermediaries engage in ________________ when they accumulate products from several sources and then make those products available down the channel as a convenient assortment for consumers.

A) Creating assortments
B) Reducing transactions
C) Reverse logistics
D) Facilitating functions
E) Disintermediation

Question 26

________________ occurs within a channel to better match quantities needed to space constraints and inventory turnover requirements.

A) Reverse logistics
B) Disintermediation
C) Assortment creation
D) Breaking bulk
E) Accumulating bulk

Question 27

A channel of distribution consists of interdependent entities that are __________________.

A) Aligned for the purpose of transferring possession of a product from producer to consumer or business user
B) Aligned for the purpose of evaluating the quality of the product at each stage in a supply chain
C) Interconnected to perform manufacturing before a transporter takes the finished product
D) Working together to develop new products
E) None of the above

Question 28

Jenn has recently decided to take a value network approach to create a competitive advantage over her competitors.She is trying this because __________________.

A) She frees up internal resources
B) Her firm can be more nimble in addressing external uncontrollable opportunities and threats
C) She has an advantage over firms that have high costs associated with performing many of the value chain functions
D) A & C
E) A, B & C

Question 29

All of the following are the sources of power that are relevant in a channel setting EXCEPT:

A) Coercive power
B) Administered power
C) Reward power
D) Expert power
E) Referent power

Question 30

A value network perspective is a macro-level strategic approach that is being adopted by many firms in part because of the intense competition to cut __________ and maximize ____________ every step of the way to market.

A) Costs, process efficiencies
B) Process efficiencies, costs
C) Costs, profits
D) Time inefficiencies, profits
E) None of the above

Question 31

The _____________ is thought of as an overarching system of formal and informal relationships,within which the firm participates to procure,transform and enhance,and ultimately supply its offerings in final form within a market space.

A) Value network
B) Virtual organization
C) Network organization
D) Value chain
E) Intermediaries

Question 32

A_____________ eliminates many in-house business functions and activities in favor of focusing only on those aspects for which it is best equipped to add value.

A) Horizontal organization
B) Vertical organization
C) Network organization
D) Matrix organization
E) Value organization

Question 33

A(n)_____ has no intermediaries and operates strictly from producer to end-user consumer or business user.

A) Direct channel
B) Indirect channel
C) Corporate VMS
D) Contractual VMS
E) Administered VMS

Question 34

Retailer cooperative is an example of _____________.

A) Diversification
B) Horizontal integration
C) Corporate VMS
D) Contractual VMS
E) Administered VMS

Question 35

Braum's Ice Cream and Dairy Store chain started in the 1930s as a family dairy farm in Kansas.Over time the Braum family acquired almost every aspect of its distribution channel-milk processing,other product manufacturing,transportation,warehousing,and the Braum's stores.This is an example of _____________.

A) Diversification
B) Horizontal integration
C) Corporate VMS
D) Contractual VMS
E) Administered VMS

Question 36

_____________ take title to the product.

A) Auction houses
B) Merchant intermediaries
C) Agent intermediaries
D) Clearing houses
E) Stock exchanges

Question 37

A ________________ represents all organizations involved in supplying a firm,the members of its channels of distribution,and its end-user consumers and business users.

A) Warehouse system
B) Supply chain
C) Market information system
D) Value chain
E) Quality circle

Question 38

P&G and Walmart have developed a strategic alliance that includes connectivity of inventory,billing systems,and market research.Approaches such as this are often referred to as _____________.

A) Diversification
B) Partner relationship management (PRM) strategies
C) Vertical integration
D) Horizontal integration
E) Market penetration strategies

Question 39

Channel intermediaries enhance utilities by providing a wide array of specific functions including _______________.

A) Physical distribution functions
B) Transaction and communication functions
C) Facilitating functions
D) A & B
E) A, B & C

Question 40

Some industries take in product from multiple sources and transform it,often through sorting it into different classifications for sales through the channel.This is an example of _____________.

A) Reverse logistics
B) Disintermediation
C) Assortment creation
D) Breaking bulk
E) Accumulating bulk

Question 41

For years,P&G was the channel captain in every channel in which it was a member based on the clout of its extensive stable of No.1 brands.This is an example of _______________.

A) Diversification
B) Horizontal integration
C) Corporate VMS
D) Contractual VMS
E) Administered VMS

Question 42

A _______________ consists of vertically aligned networks behaving and performing as a unified system.

A) Matrix system
B) Vertical Marketing System (VMS)
C) Value chain
D) Management information system
E) Marketing information system

Question 43

______________ is the degree to which any member of a marketing channel can exercise influence over the other members of the channel.

A) Channel power
B) Channel conflict
C) Expert power
D) Reward power
E) Coercive power

Question 44

When frozen-food sections of supermarkets are reset to accommodate new-product entries and remove discontinued items,Stouffer reps are often trusted to help store clerks reset the shelves and in many instances Stouffer's is given prime display space in the freezer case.This indicates that Stouffer's enjoys ________ within the channel.

A) Coercive power
B) Reward power
C) Expert power
D) Referent power
E) Legitimate power

Question 45

In an administered VMS,the sheer size and power of one of the channel members places it in a position of channel control.The lead player in such situations may be referred to as the _____________,signifying its ability to control many aspects of that channel's operations.

A) Channel member
B) Retailer cooperative
C) Wholesaler cooperative
D) Channel captain
E) Channel partner

Question 46

Facilitating functions performed by intermediaries include a variety of activities that help fulfill completed transactions and also maintain the viability of the channel relationships.These include _______________.

A) Financing
B) Market research
C) Buying
D) A & B
E) A & C

Question 47

A processing house gathers eggs from individual farm operators for sorting by grade and size,then to be packaged and sent on their way to retailers.The processing house is performing the function of ___________.

A) Reverse logistics
B) Disintermediation
C) Assortment creation
D) Breaking bulk
E) Accumulating bulk

Question 48

Nadia works for a major soda distributor.Recently the company has begun to discuss buying a transportation company to move their product from their own manufacturing facility to the consumer.This is an example of ________________.

A) Insourcing
B) Vertical Marketing System (VMS)
C) Corporate VMS
D) Contractual VMS
E) Administered VMS

Question 49

Through a _________________,retailers contract for varying degrees of exclusive dealings with a particular wholesaler.

A) Franchise organization
B) Retailer cooperative
C) Wholesaler cooperative
D) Channel captains
E) Partner relationship management (PRM) strategies

Question 50

A(n)________________ creates a powerful competitive advantage in the marketplace due to cost and process efficiencies realized when a channel is strictly controlled by one entity.

A) Insourcing arrangement
B) Marketing information system
C) Corporate VMS
D) Contractual VMS
E) Administered VMS

Question 51

_____________ is the shortening or collapsing of marketing channels due to the elimination of one or more intermediaries,and is common in the electronic channel.

A) Creating assortments
B) Reducing transactions
C) Accumulating bulk
D) Breaking bulk
E) Disintermediation

Question 52

Introducing even one intermediary into a channel can contribute to greatly _______________ that are necessary to complete an exchange.

A) Increasing the costs
B) Reducing the transactions
C) Lowering the quality of the processes
D) Enhancing the quality of the processes
E) Increasing the duration of the transactions

Question 53

The goal of the ________________ is to share resources,especially knowledge-based resources,to affect optimally profitable relationships between two channel members.

A) Market development strategies
B) Diversification strategies
C) Third-party logistics
D) Vertical integration strategies
E) Partner relationship management (PRM) strategies

Question 54

A(n)__________________ consists of otherwise independent entities that are bound together legally through contractual agreement.

A) Value chain
B) Matrix organization
C) Corporate VMS
D) Contractual VMS
E) Administered VMS

Question 55

By combining efforts,____________ gain advantages through enhanced buying and distribution power that allow them to better compete with supermarket chains than if the stores were buying separately.

A) Horizontal organizations
B) Retailer cooperatives
C) Matrix organizations
D) Channel captains
E) Vertical organizations

Question 56

Financing,market research,risk-taking,and other services are considered to be _______________.

A) Inventory management functions
B) Transaction and communication functions,
C) Transportation and storage functions
D) Facilitating functions
E) Disintermediation functions

Question 57

_______________ is the approach that is attractive for many firms whose core competencies do not include elements of supply chain management.

A) Insourcing
B) Vertical Marketing System (VMS)
C) Outbound logistics
D) Inbound logistics
E) Reverse logistics

Question 58

Entrepreneur magazine reports that ________________ remain the highest-potential startup and growth mechanism for small-business owners,and it is an effective way to expand a distribution channel quickly and efficiently.

A) Franchise organizations
B) Retailer cooperatives
C) Wholesaler cooperatives
D) Channel captains
E) Partner relationship management (PRM) strategies

Question 59

In _____________ a channel member has invested in backward or forward vertical integration by buying a controlling interest in other intermediaries.

A) Third-party logistics
B) Reverse logistics
C) Corporate VMS
D) Contractual VMS
E) Administered VMS

Question 60

In a(n)_______________,the sheer size and power of one of the channel members places it in a position of channel control.

A) Value chain
B) Matrix organization
C) Corporate VMS
D) Contractual VMS
E) Administered VMS

Question 61

________________ may take the form of sharing important product knowledge.

A) Coercive power
B) Reward power
C) Expert power
D) Referent power
E) Legitimate power

Question 62

_____________,goods for which a consumer may engage in a limited search,are candidates for selective distribution.

A) High technology goods
B) Durable goods
C) Convenience goods
D) Impulse goods
E) Shopping goods

Question 63

Intensive distribution is typically associated with _______________.

A) High technology goods
B) Very expensive goods
C) Convenience goods
D) Scarce goods
E) Shopping goods

Question 64

When the objective is to obtain maximum product exposure throughout the channel,a(n)_________________ strategy is designed to saturate every possible intermediary and especially retailers.

A) Market development
B) Intensive distribution
C) Selective distribution
D) Exclusive distribution
E) Product development

Question 65

Impulse goods are appropriate for ______________,as their sales rely on the consumer seeing the product,feeling an immediate want,and being able to purchase now.

A) Market development
B) Intensive distribution
C) Selective distribution
D) Exclusive distribution
E) Product development

Question 66

Unresolved channel conflict can result not only in an uncooperative and inefficient channel,but it can also ultimately impact end-user consumers through _______________.

A) Inferior products
B) Spotty inventory
C) Higher prices
D) A & B
E) A, B & C

Question 67

When a channel member is respected,admired,or revered based on one or more attributes,that member enjoys ________________ within the channel.

A) Coercive power
B) Reward power
C) Expert power
D) Referent power
E) Legitimate power

Question 68

A manufacturer employing a(n)________________ focuses much of its promotional investment on the end-user consumer.

A) Selective distribution
B) Exclusive distribution
C) Push strategy
D) Pull strategy
E) Intensive distribution

Question 69

Distribution strategies can be _________________.

A) Intensive
B) Selective
C) Exclusive
D) A & C
E) A, B & C

Question 70

A(n)____________ implies that many of the promotional activities take place from the manufacturer downward through the channel of distribution.

A) Selective distribution strategy
B) Exclusive distribution strategy
C) Push strategy
D) Pull strategy
E) Intensive distribution strategy

Question 71

In deciding on the right balance between control and flexibility in a channel,marketing managers must consider all of the following EXCEPT ______________.

A) The type of products involved
B) Cost issues among the various options
C) Strength of belief in the accuracy of the sales forecast
D) Likelihood that major changes will occur in the customer or competitive marketplace that would necessitate restructuring the channel
E) None of the above

Question 72

________________ refers to sourcing materials and knowledge inputs from external suppliers to the point at which production begins.

A) Outbound logistics
B) Inbound logistics
C) Reverse logistics
D) Disintermediation
E) Third-party logistics

Question 73

One example of a push strategy is ______________.

A) Couponing
B) Consumer rebates
C) Funding an extra incentive to a wholesale drug salesperson for pushing a particular medication to an independent pharmacy
D) Heavy advertising in mass media
E) Direct marketing

Question 74

___________ is not a source of channel power.

A) Reward power
B) Referent power
C) Legitimate power
D) Consumer power
E) Expert power

Question 75

The motivating force for suppliers to work with large chain stores is that the stores have huge ______________ because they can write big orders.

A) Coercive power
B) Reward power
C) Expert power
D) Referent power
E) Legitimate power

Question 76

Traditionally,logistics was thought of as _____________.

A) Outbound logistics
B) Inbound logistics
C) Reverse logistics
D) Stock out
E) Third-party logistics

Question 77

______________ also often arises because a significant personal selling effort is required with the consumer before product purchase.

A) Selective distribution
B) Exclusive distribution
C) Push strategies
D) Pull strategies
E) Intensive distribution

Question 78

_______________ is often part of an overall positioning strategy built on prestige,scarcity,and premium pricing.

A) Selective distribution
B) Exclusive distribution
C) Widespread distribution
D) Convenience distribution
E) Intensive distribution

Question 79

______________ involves an explicit or implicit threat that a channel captain will invoke negative consequences on a channel member if it does not comply with the leader's request or expectations.

A) Coercive power
B) Reward power
C) Expert power
D) Referent power
E) Legitimate power

Question 80

______________ results from contracts such as franchise agreements or other formal agreements.

A) Coercive power
B) Reward power
C) Expert power
D) Referent power
E) Legitimate power