Question 1

Which of the following would be considered an upstream partner in a company's supply chain?
A) a firm that resells a finished product and shares the net sales with the producer
B) a firm that provides technical expertise in the production of a product
C) a firm that markets a product to consumers through social media
D) a firm that buys products at wholesale cost from the company
E) a firm that exclusively markets a product to other businesses

Accepted Answer

An upstream partner is a company that provides goods or services that are essential to the production of a company's products or services. Therefore, a firm that provides technical expertise in the production of a product would be considered an upstream partner. Answer A is incorrect because a firm that resells a finished product is considered a downstream partner. Answer C is incorrect because a firm that markets a product directly to consumers is not an upstream partner. Answer D is incorrect because a firm that buys products from the company is considered a downstream partner. Answer E is incorrect because although a firm that exclusively markets a product to other businesses is B2B, it is not necessarily an upstream partner.

Question 2

Which of the following is an example of a horizontal conflict in a distribution channel?
A) a Nike shoe dealer complaining that the shoes provided to the dealer are defective
B) a Ford car dealer complaining that another Ford dealer is underpricing the same models
C) a FedEx agent complaining that a DHL agent is cutting off his business
D) a Walmart executive complaining to a Pepsi executive for not replenishing stocks on time
E) a Gucci executive complaining to Gucci's suppliers of delays in shipping consignments

Accepted Answer

A horizontal conflict occurs between members at the same level of a distribution channel, in this case, Ford dealers competing with each other. The other options involve vertical conflicts between different levels of the distribution channel.

Question 3

Most producers sell their goods directly to final users.

Accepted Answer

Most producers do not sell their goods directly to final users. They typically sell their goods to wholesalers, retailers, or distributors who then sell the goods to the end users.

Question 4

All the institutions in a channel are connected by several types of flows. When a retailer conveys to a wholesaler that a new line of hip-hop clothing is not selling, this is an example of ________.
A) payment flow
B) flow of ownership
C) physical flow
D) information flow
E) promotion flow

Accepted Answer

The retailer conveying information to the wholesaler about the slow sales of a new line of hip-hop clothing is an example of information flow.

Question 5

________ are sets of interdependent organizations that help make the product or service of a company available for use by consumers or business users.
A) Research and development channels
B) Upstream channels
C) Marketing channels
D) Raw materials suppliers
E) Backward integration chains

Accepted Answer

Marketing channels refer to the set of organizations that help make the products or services of a company available for use by consumers or business users. These channels may include retailers, distributors, wholesalers, and other intermediaries who play a role in getting products from the manufacturer to the end-user. The primary goal of marketing channels is to ensure that the right product is available in the right place at the right time to meet customer demand.

Question 6

Which of the following applies to a marketing intermediary who buys brand name toothpaste from 10 different manufacturers, consolidates offerings, and then resells the various brands to 500 supermarkets in Florida?
A) facilitate the production of products without direct customer feedback
B) help a company develop a direct channel selling system
C) buy small quantities of products from producers and break them down into narrow assortments for customers
D) increase the amount of work that must be done by producers and consumers
E) transform the assortments of products made by producers into the assortments wanted by consumers

Accepted Answer

The marketing intermediary is transforming the assortments of products made by producers into the assortments wanted by consumers. They are consolidating the offerings of 10 different manufacturers and then reselling the various brands to 500 supermarkets in Florida. This process involves changing the assortment of products to better meet the preferences and needs of the end consumers.

Question 7

Producers use marketing intermediaries because they ________.
A) create greater efficiency in making goods available to target markets
B) supply inexpensive raw materials for manufacturing products
C) provide technical expertise for faster production
D) monitor day-to-day activities during production
E) form a part of the company's direct channel

Accepted Answer

Marketing intermediaries can help create greater efficiency in making goods available to target markets by performing tasks such as distribution, transportation, and selling, which allows producers to focus on their core competencies.

Question 8

Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain?
A) SoftStar
B) BlueHill
C) the consumer
D) Abundon
E) Kevin Pinker

Accepted Answer

Abundon is the marketing intermediary as they are the ones who purchase the programs from SoftStar and BlueHill and sell them to the final consumers and businesses.

Question 9

A firm that uses direct marketing would most likely sell its products through ________.
A) one marketing intermediary
B) big box retailers
C) large wholesalers
D) multiple intermediaries
E) the company Web site

Accepted Answer

Direct marketing involves selling products directly to consumers without the use of intermediaries. Therefore, the company would most likely sell its products through its own website.

Question 10

A(n)________ is considered a marketing intermediary.
A) customer
B) producer
C) manufacturer
D) wholesaler
E) advertiser

Accepted Answer

A wholesaler is a type of marketing intermediary that buys products from manufacturers and sells them to retailers.

Question 11

Java Jane's first coffeehouse was very successful due to the unique flavors, on-site baked goods, and inviting ambiance. The owner, Jane Phillips, decided to franchise her operation when she was approached by several interested investors. Which type of marketing system has Java Jane's most likely adopted?
A) an administered marketing system
B) a contractual marketing system
C) a horizontal marketing channel
D) a direct marketing channel
E) a vertical marketing channel

Accepted Answer

Java Jane's is using a contractual marketing system by franchising the operation to investors. This allows for a standardized offering and consistency across different locations while also allowing for individual ownership and management of each franchise.

Question 12

Direct marketing is the longest distribution channel between a producer and consumer.

Accepted Answer

Direct marketing is actually the shortest distribution channel between a producer and consumer, as it involves selling products directly to consumers without intermediaries such as wholesalers or retailers.

Question 13

Introducing intermediaries into a distribution chain increases the number of direct channel transactions between a manufacturer and its customers.

Accepted Answer

Introducing intermediaries into a distribution chain creates indirect channels of transactions where the manufacturer passes on the products to intermediaries who then distribute the products to the end customers. This increases the number of indirect channel transactions rather than direct transactions between a manufacturer and its customers.

Question 14

What are the different functions of the members of a marketing channel?

Accepted Answer

The answer of What are the different functions of the...

Question 15

The USA Cotton Growers Cooperative sells unfinished cotton to The Weaving Experts who refine the raw material for sale to The Sheet Factory. It's then used in the manufacturing process of 300, 400, and 500 thread count bed sheet sets. The Sheet Factory distributes their products through a number of wholesalers, including Linen Traders. Linen Traders then resells the bed sheet sets to retailer Bedding Plus who markets the products to consumers. Which of the following represents a marketing intermediary transaction?
A) only Linen Traders
B) only Bedding Plus
C) only The Weaving Experts
D) Linen Traders selling to Bedding Plus
E) The Weaving Experts selling to Linen Traders

Accepted Answer

Linen Traders reselling the bed sheet sets to retailer Bedding Plus represents a marketing intermediary transaction. They are intermediaries between the manufacturer and the end consumer, providing distribution and selling services.

Question 16

From a producer's point of view, a greater number of levels in a supply chain means less control and greater channel complexity.

Accepted Answer

With each additional level in a supply chain, the producer has less control over the production and distribution process, and there may be greater complexity in coordinating with intermediaries or retailers.

Question 17

Mary Kay Cosmetics and Amway sell their products through home and office sales parties, online Web sites, and social media. Both companies use a(n)________ channel to distribute their offerings.
A) functional
B) indirect
C) direct
D) layered
E) behavioral

Accepted Answer

Mary Kay Cosmetics and Amway sell directly to their customers through home and office sales parties, online Web sites, and social media. Therefore, they use a direct distribution channel.

Question 18

The authors suggest that the term "supply chain" may be too limited because it takes a "make-and-sell" view of the business. They believe the term ________ is more appropriate because it suggests a "sense-and-respond" view of the market.
A) "upstream chain"
B) "downstream chain"
C) "market chain"
D) "production chain"
E) "demand chain"

Accepted Answer

The authors suggest that the term "supply chain" is too limited and propose the term "demand chain" as a more appropriate view of the market, suggesting a "sense-and-respond" approach to meeting customer demand. The other options ("upstream chain," "downstream chain," "market chain," and "production chain") do not convey the same focus on customer demand and responsiveness.

Question 19

In which of the following situations is a producer guaranteed full control over product sales?
A) a corporate marketing channel
B) a direct marketing channel
C) a contractual distribution channel
D) a horizontal marketing system
E) an administered marketing system

Accepted Answer

In a direct marketing channel, the producer sells their products directly to the end consumers, thus having full control over product sales. Other channels may involve intermediaries who can influence or even control the sales process.

Question 20

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.
A) manufacturing chain
B) distribution center
C) marketing intermediary
D) value delivery network
E) disintermediation system

Accepted Answer

A value delivery network is a more comprehensive view of a marketing channel, as it also includes the suppliers and distributors in addition to the customers. The network is a partnership among these entities to ensure that the entire system operates efficiently and effectively, with the ultimate goal of delivering value to the end customer.

Quiz 10: Marketing Channels: Delivering Customer Value

Which of the following would be considered an upstream partner in a company's supply chain?

Which of the following is an example of a horizontal conflict in a distribution channel?

Most producers sell their goods directly to final users.

All the institutions in a channel are connected by several types of flows. When a retailer conveys to a wholesaler that a new line of hip-hop clothing is not selling, this is an example of ________.

________ are sets of interdependent organizations that help make the product or service of a company available for use by consumers or business users.

Which of the following applies to a marketing intermediary who buys brand name toothpaste from 10 different manufacturers, consolidates offerings, and then resells the various brands to 500 supermarkets in Florida?

Producers use marketing intermediaries because they ________.

A firm that uses direct marketing would most likely sell its products through ________.

A(n) ________ is considered a marketing intermediary.

Direct marketing is the longest distribution channel between a producer and consumer.

Introducing intermediaries into a distribution chain increases the number of direct channel transactions between a manufacturer and its customers.

What are the different functions of the members of a marketing channel?

From a producer's point of view, a greater number of levels in a supply chain means less control and greater channel complexity.

Mary Kay Cosmetics and Amway sell their products through home and office sales parties, online Web sites, and social media. Both companies use a(n) ________ channel to distribute their offerings.

The authors suggest that the term "supply chain" may be too limited because it takes a "make-and-sell" view of the business. They believe the term ________ is more appropriate because it suggests a "sense-and-respond" view of the market.

In which of the following situations is a producer guaranteed full control over product sales?

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.