Question 1

If speed is a concern, the two best modes of transporting goods are:

Accepted Answer

Air and truck are the fastest modes of transporting goods, with air being the quickest for long distances and truck providing flexibility and speed for shorter distances.

Question 2

Independent producers, wholesalers and retailers constitute a(n):

Accepted Answer

Independent producers, wholesalers, and retailers that work together informally, without strong organizational ties but through common economic goals, constitute a conventional marketing system. This system is characterized by its components operating independently to satisfy their own objectives.

Question 3

Phillipa's Bakery has earned a reputation for its hand- made breads and pastries. To protect the "artisan" image that her products have developed, Phillipa does not want to sell her products in multinational supermarkets. Instead, she sells direct through her four bakery outlets in Melbourne and suburbs. In addition, Phillipa sells her breads and pastries via carefully chosen farmer's markets and a few small, independent supermarkets. Phillipa's distribution strategy is BEST described as which of the following?

Accepted Answer

The answer of Phillipa's Bakery has earned a reputation for...

Question 4

When a company's internal departments work together and cooperate with marketing channel members to provide better customer service and trim distribution costs, this is known as:

Accepted Answer

The scenario described is a perfect example of integrated logistics management, where different departments of a company collaborate with channel members to provide better customer service and reduce distribution costs. This strategy ensures efficient management of logistics activities, including inventory management, transportation, and order processing, to create value for customers and generate profits for all stakeholders involved.

Question 5

Channel objectives should be:

Accepted Answer

Channel objectives should be written with the strengths and weaknesses of intermediaries in mind to ensure that the objectives are realistic and achievable. Stating the objectives in terms of which channels will be used and designing them to be impervious to temporary changes in the external environment may limit flexibility and adaptability. Channel objectives should also be tailored to specific product lines rather than being uniform across all products.

Question 6

Sears obtains more than 50 per cent of its goods from companies that it partly or wholly owns. This would be an example of a(n):

Accepted Answer

This is an example of a corporate vertical marketing network/ system (VMN/VMS), where a company owns or controls various levels of the supply chain, such as manufacturing, distribution, and retail. In this case, Sears owns or partly owns the companies that supply it with goods, giving it control and coordination over its supply chain.

Question 7

Select the word that best completes the following sentence. Historically,_________ have lacked the power and leadership to manage channel conflict.

Accepted Answer

The answer of Select the word that best completes the...

Question 8

When Evans Toys for Boys agreed not to carry any other brand of motorcycle EXCEPT Kawasaki, it was an example of a(n):

Accepted Answer

An exclusive distribution arrangement refers to an agreement between a manufacturer and a distributor in which the distributor is given the exclusive right to sell the manufacturer's product or products within a specified geographic area or market segment. In this case, Evans Toys for Boys agreed to only carry Kawasaki motorcycles, indicating an exclusive distribution arrangement with Kawasaki.

Question 9

If Pizza Hut franchisees complain that other Pizza Hut franchisees are cheating on ingredients, giving poor service, and are hurting the overall Pizza Hut image, these complaints are indicative of a:

Accepted Answer

Horizontal conflict occurs among firms at the same level of the distribution channel, such as between different franchisees of the same brand.

Question 10

Most shopping goods manufacturers, such as those selling televisions, furniture and appliances, probably utilise:

Accepted Answer

Selective distribution allows manufacturers to carefully choose which retailers will sell their products, ensuring that the brand is positioned appropriately and that the right customers are targeted. This is likely the most efficient and effective option for shopping goods manufacturers.

Question 11

Finished goods stored as a buffer against future demand or warehoused in between production and intermediaries is termed:

Accepted Answer

The term used for finished goods stored as a buffer against future demand or warehoused in between production and intermediaries is inventory. This helps in maintaining a buffer stock to meet the future needs of customers and ensures a continuous flow of goods in the supply chain. Options A, C, and D are not correct as they do not term this specific concept.

Question 12

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

Accepted Answer

The number of intermediary levels in a marketing channel indicates the length of the channel. A longer channel involves more intermediaries between the producer and the consumer.

Question 13

When a producer has a conflict with its wholesalers, the producer is experiencing_________ conflict.

Accepted Answer

Vertical channel conflict occurs between different levels of the same channel of distribution, such as between a producer and its wholesalers or retailers. In this case, the conflict is between a producer and its wholesalers, making A the correct choice. Direct channel conflict occurs between a manufacturer and its direct customers (e.g. a manufacturer selling directly to consumers), single channel conflict occurs within the same level of a distribution channel, horizontal channel conflict occurs between companies at the same level of distribution (e.g. two wholesalers), and multichannel conflict occurs when a company uses multiple channels to distribute its products and experiences conflict between them.

Question 14

Managing the entire value added flows of materials and products both upstream and downstream is known as:

Accepted Answer

Supply chain management involves overseeing the entire process of moving goods and services from the supplier to the customer, including all aspects of production, transportation, and distribution. It encompasses the flow of materials, money, and information between businesses and organizations involved in the creation and delivery of a product or service.

Question 15

What are the three gaps that separate goods and services from those who would use them?

Accepted Answer

The answer of What are the three gaps that separate...

Question 16

The Rocky Corporation has developed a distribution system composed of intermediaries which Rocky either owns or has under contract. Rocky has established a:

Accepted Answer

Rocky Corporation has established a vertical marketing system as it owns or has contracts with intermediaries involved in the distribution of its products. A vertical marketing system involves the coordination and integration of various levels of a distribution chain to achieve better efficiency and effectiveness in serving customers.

Question 17

The task performed by channel members concerned with grading, assembling and packaging is:

Accepted Answer

Matching involves activities such as grading, assembling, and packaging, which are aimed at ensuring the products meet the preferences and requirements of the end consumers.

Question 18

One of the following is NOT a key function that intermediaries play in completing transactions. Choose it.

Accepted Answer

Intermediaries play key functions in completing transactions through information, financing, promotion, negotiation, and pricing. Therefore, option E is not a correct choice as pricing is one of the key functions that intermediaries play in completing transactions.

Question 19

Logistics is a matter of:

Accepted Answer

Logistics involves finding trade-offs between different cost areas, such as balancing the costs of transportation versus production lot quantity. While ensuring a least cost physical distribution and optimizing sales transportation costs are important components of logistics, they are not the only considerations. Therefore, option A is the best choice as it encompasses all the given options while still being specific enough.

Question 20

By definition, a(n) _________centre receives goods from various company plants and suppliers and moves them out as soon as possible.

Accepted Answer

A distribution centre is specifically designed to receive goods from various company plants and suppliers and move them out as soon as possible. Field centres are typically used in agriculture, storage centres are used for long-term storage, common centres do not refer to a specific function in logistics, and automated centres refer to a method of operation rather than a specific function.

Quiz 13: Marketing Channels and Logistics Networks