Question 1

A large automotive after-market business wanted to improve its current situation,which is characterized by excessive inventory,incomplete information,high logistics costs,slow reactions to environmental change,and lost profits at the retail level.Would supply chain management be of any help to the business?

Accepted Answer

The correct answer contains the definition of supply chain management.

Question 2

Peachtree Windows does not make a window until an order is received.It can promise delivery in five working days because of the excellent relationships it has established with its suppliers.The partnering relationship that Peachtree Windows has established with its suppliers indicates the use of:

Accepted Answer

Supply chain management coordinates and integrates all the activities from raw materials to product consumption.

Question 3

When Delphi-Grundig,a manufacturer of state-of-the-art car radios,decided to expand its marketing efforts into countries in which its products are not currently available,it did not have the time or resources to spend on developing new channels of distribution.Delphi-Grundig should consider a(n):

Accepted Answer

Strategic channel alliances use another manufacturer's already established channel and are used when the creation of marketing channel relationships may be expensive and time-consuming.

Question 4

Canesta Company has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants (PDAs).The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device.When introduced to the market,the device will sell for less than $50.If,in choosing its channel,Canesta is most concerned about the life cycle of the device,then its choice of channels will largely be influenced by:

Accepted Answer

Stage of the product life cycle is a product factor.

Question 5

Canesta Company has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants (PDAs).The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device.When introduced to the market,the device will sell for less than $50.If,in choosing its channel,Canesta is most concerned about its lack of financial,managerial,and marketing resources to support the product's introduction,then its choice of channels will largely be influenced by:

Accepted Answer

Financial,managerial,and marketing issues are producer factors.

Question 6

The connected chain of all of the business entities,both internal and external to the company,that perform or support the logistics function is known as the:

Accepted Answer

A company's supply chain includes all of the companies involved in all of the upstream and downstream flows of products,services,finances,and information,from initial suppliers (point of origin)to the ultimate customer (point of consumption).

Question 7

All of the following accurately describe supply chain management EXCEPT:

Accepted Answer

In earlier days,standardized products were "pushed" down through the supply channel to the consumer,but now the system relies on customers to "pull" the product through the channel.

Question 8

Chewing gum and soft drinks are sold in grocery stores,service stations,convenience stores,drugstores,discount stores,and motel vending machines.This is a example of a(n)_____ distribution strategy.

Accepted Answer

Intensive distribution is distribution aimed at maximum market coverage.It is used for many convenience goods that need to be available in every outlet where the potential customer might want to buy them.

Question 9

_____ is distribution aimed at maximum market coverage.It is used for many convenience goods and supplies that need to be available in every outlet where the potential customer might want to buy them.

Accepted Answer

The objective of intensive distribution is to achieve mass-market selling.

Question 10

Companies selling standardized items of moderate or low value to other businesses (not to consumers)often use:

Accepted Answer

In many ways,an industrial distributor is like a supermarket for organizations.

Question 11

Supply chain managers are responsible for all of the following EXCEPT:

Accepted Answer

While supply chains should agree on and commit to principles of activity-based costing (ABC),it is not the supply chain manager's responsibility to audit suppliers.

Question 12

_____ coordinates and integrates all of the activities performed by channel members into a seamless process,from the source to the point of consumption,resulting in enhanced customer and economic value.

Accepted Answer

This is the definition of supply chain management.

Question 13

Centigon is a manufacturer of customized armored vehicles for military,private,presidential,and commercial uses.Each armored vehicle is designed to deliver security on the road while also achieving optimum levels of performance and comfort.For distribution,you would expect Centigon to use a:

Accepted Answer

For customized business products requiring detailed specifications,the most common channel structure is the direct channel because of the amount of interaction and direct communication required.

Question 14

Customers can purchase HP computers from retail stores like Best Buy and Office Depot,online directly from HP,and through various catalogs.HP is using a(n)_____ distribution arrangement.

Accepted Answer

Multiple distribution occurs when a producer selects two or more different channels to distribute the same products to target markets.

Question 15

All of the following are typical channel members in marketing channels for consumer products EXCEPT:

Accepted Answer

Industrial distributors are used for distributing industrial,not consumer products.See also Exhibit 12.3 and Exhibit 12.4.

Question 16

Selfridges is the second-largest department store in Great Britain.It works with House of Frasier,one of its competitors,to reduce operating costs by sharing channels of distribution to ship goods from 1,500 plus suppliers.Selfridges and House of Frasier are engaged in:

Accepted Answer

A strategic channel alliance is a cooperative agreement between businesses to use each other's already established distribution channels.

Question 17

Which of the following enables a company to use another manufacturer's already established channel?

Accepted Answer

Alliances are used most often when the creation of marketing channel relationships may be too expensive and time-consuming.

Question 18

Which of the following statements concerning how market factors affect channel decisions is true?

Accepted Answer

Generally,a very large market requires more intermediaries,including wholesalers and retailers

Question 19

All of the following are benefits of supply chain management EXCEPT:

Accepted Answer

Cash flow will likely increase due to higher revenues.

Question 20

_____ distribution occurs when a producer selects two or more different channels to distribute the same products to target markets.

Accepted Answer

Dual distribution (multiple distribution),is the use of two (or more)channels to distribute the same product to target markets.

Quiz 12: Marketing Channels and Supply Chain Management