Question 1

Channel members are also known as _____.

Accepted Answer

Channel members are also known as intermediaries because they act as middlemen in the distribution process, facilitating the movement of products from manufacturers to consumers.

Question 2

Which of the following is a function of marketing channel members?

Accepted Answer

Marketing channel members help producers achieve economies of scale through specialization and division of labor, which allows for more efficient production and distribution processes.

Question 3

Phoenix Farm,a firm that sells farm products,gathers fresh food products in one place for its customers.Customers can buy eggs,milk,meat,vegetables,and so on without spending a great amount of time and energy shopping around.Phoenix Farm is a _____.

Accepted Answer

Phoenix Farm is a retailer because it sells farm products directly to customers, allowing them to purchase various items in one location without the need to shop around.

Question 4

Which of the following statements is true of channel members?

Accepted Answer

Channel members provide contact efficiency by bringing buyers and sellers together.

Question 5

Agents and brokers are wholesaling intermediaries who take title to the goods and services they market.

Accepted Answer

Agents and brokers are intermediaries who facilitate the sale of goods and services but do not take title to them. They act on behalf of buyers or sellers and earn a commission for their services.

Question 6

The marketing channel is the "upstream" portion of the supply chain that is charged with moving component parts or raw materials to the producer.

Accepted Answer

The marketing channel is the "downstream" portion of the supply chain, responsible for moving finished products from the producer to the consumer.

Question 7

Which of the following is true of retailers?

Accepted Answer

Retailers provide contact efficiency for consumers by offering a variety of products in one location, making it easier for consumers to find and purchase what they need.

Question 8

West Coast Traders provides expertise for a range of products within a category.It markets and facilitates the sale of many different manufacturers' products to a grocery chain.However,West Coast Traders never takes ownership of any food products,so it would be considered a(n)____________________.

Accepted Answer

West Coast Traders acts as an intermediary that facilitates sales without taking ownership of the products, which is characteristic of an agent or a broker.

Question 9

The composition and appearance of a product that make it desirable constitute its ______ utility.

Accepted Answer

Form utility refers to the value added to a product through its design, features, and appearance, making it desirable to consumers.

Question 10

Which statement is true of agents and brokers?

Accepted Answer

Agents and brokers represent manufacturers' products to potential customers but do not take title to the goods.

Question 11

_____ is a business structure of interdependent organizations that reaches from the point of production to the consumer and facilitates the downstream physical movement of goods through the supply chain.

Accepted Answer

A marketing channel is a business structure that involves interdependent organizations working together to move goods from production to the consumer, facilitating the downstream movement in the supply chain.

Question 12

Which of the following entails the logistical function of intermediaries in marketing channels?

Accepted Answer

The logistical function of intermediaries involves activities like sorting, accumulation, consolidation, and allocation of assets to meet customer requirements, ensuring that products are available in the right quantities and locations.

Question 13

Acme Foundation provides information about channel members and consumers by getting answers to key questions such as,Who are the buyers? Where are they located? Why do they buy? Acme also ensures that channel members have the money to keep products moving through the channel to the ultimate consumer.The function of Acme described here is ______.

Accepted Answer

The function described is facilitating, as Acme Foundation is providing information and ensuring financial support to channel members, which are key aspects of facilitating functions in marketing channels.

Question 14

Four consumers each want to buy a refrigerator.Without a retail intermediary like Best Buy,fridge manufacturers Walton,Sub-Zero,Bosch,Kenmore,and General Electric would each have to make four contacts to reach the four consumers who are in the target market,for a total of twenty transactions.But when Best Buy acts as an intermediary between the producer and consumers,each producer needs to make only one contact,reducing the number to nine transactions.This is an example of a ______.

Accepted Answer

Retailers like Best Buy provide contact efficiency by reducing the number of transactions needed between producers and consumers.

Question 15

Mezzah Bros.,a video store that sells DVDs and entertainment publications,stores its products in separate warehouses.Moreover,it uses different modes of transportation to deliver them to customers.This scenario illustrates the _____ functions of Mezzah Bros.

Accepted Answer

The scenario describes the storage and transportation of products, which are key components of logistical functions.

Question 16

Which of the following is NOT a function of the retailer?

Accepted Answer

Retailers typically take title to the products they sell, meaning they own the goods until they are sold to the consumer. Transacting sales without taking title is more characteristic of agents or brokers, not retailers.

Question 17

Which of the following is a similarity between merchant wholesalers and retailers?

Accepted Answer

Both merchant wholesalers and retailers take title to the products they sell, meaning they own the products and can set their own terms of sale.

Question 18

IndigBlue Inc.,a distributor of audio equipment,component parts,and supplies,takes title to all its products.It operates a few warehouses where it stores the finished goods and reships them to its clients,resellers,and other vendors.IndigBlue Inc.is an example of a ____.

Accepted Answer

IndigBlue Inc. is a merchant wholesaler because it takes title to the products it distributes, stores them in warehouses, and reships them to clients and vendors.

Question 19

Which of the following statements is true of the exchange utility?

Accepted Answer

Exchange utility refers to the increased value of a product that is created when its ownership is transferred from seller to buyer, enhancing customer satisfaction through the transaction process.

Question 20

Because wholesalers neither dramatically alter the product they handle nor sell it directly to the consumer,their value hinges on their providing retailers ______.

Accepted Answer

Wholesalers provide time and place utility by ensuring products are available when and where needed, and contact efficiency by reducing the number of contacts needed between manufacturers and retailers.

Quiz 13: Supply Chain Management and Marketing Channels