Question 1

The sources of power or influence change as a supply chain moves toward integration and collaboration. In collaborative supply chains, the most important source of power is based on:

Accepted Answer

In collaborative supply chains, information is the most important source of power or influence because it enables partners to make better decisions, coordinate activities, and optimize operations. Rewards, sales volume, coercion, and firm size may still have some influence, but they are likely to be secondary to information sharing and collaboration.

Question 2

Which of the following statements best describes a channel that is effective?

Accepted Answer

An effective channel is one that provides the best in terms of time, place, and possession utility, which means that it efficiently delivers the right products, at the right place, and at the right time to the customers. Redundancies and waste may increase costs, while meeting the needs of all supply chain partners may not necessarily mean that the channel is efficient or effective.

Question 3

What is considered to be the most important factor to successful supply chain management in today's economy?

Accepted Answer

Channel integration, or the coordination and collaboration among all parties in the supply chain, is widely considered the most important factor to successful supply chain management in today's economy. This includes integrating suppliers, manufacturers, distributors, retailers, and customers into a single, cohesive network that shares information and resources in real time. Without effective channel integration, supply chain operations are prone to inefficiencies, disruptions, and increased costs.

Question 4

Which member of the marketing channel has the primary responsibility of fulfilling the channel's main functions?

Accepted Answer

The answer of Which member of the marketing channel has...

Question 5

Hallmark is a good example of a company that uses _____ distribution as a means of offering two or more lines of the same merchandise through two or more outlets.

Accepted Answer

Hallmark uses dual distribution by offering its products through multiple outlets, such as its own stores, as well as through partnerships with other retailers. This allows Hallmark to reach a broader customer base and offer its products through both physical and online channels.

Question 6

In most marketing channels for consumer products, the balance of power has shifted to _____ due to their size and control over information.

Accepted Answer

Mass merchandise retailers like Walmart and Amazon have gained significant power in the marketing channel due to their large size and control over information. They can negotiate favorable terms with manufacturers and distributors, and their influence can make or break a product's success in the market. Consumers also have some power due to their ability to share feedback and reviews online, but mass merchandise retailers currently hold more power.

Question 7

In some cases, manufacturers can require that wholesalers, brokers, agents, or retailers not carry or represent products from any competing manufacturer. Violations of these restrictions can cause a manufacturer to cut off supply to the intermediary in question. This situation represents which of the following potential ethical or legal issues in supply chain management?

Accepted Answer

Exclusive channel arrangements occur when a manufacturer requires intermediaries to only carry their products and not those of competitors, which can raise ethical and legal concerns.

Question 8

Which of the following statements best describes a channel that is efficient?

Accepted Answer

An integrated channel that reduces redundancies and waste is the best statement describing an efficient channel. While A, B, and C all relate to different aspects of efficiency in a channel (time, intermediaries, and place), they do not necessarily indicate an overall efficient channel. An integrated channel, on the other hand, involves streamlining processes and eliminating waste, improving the overall efficiency of the channel.

Question 9

Because the company was angered by the actions of its resellers, Acme Manufacturing decided to slow down deliveries and postpone product availability to these resellers. What type of power is Acme wielding?

Accepted Answer

Acme Manufacturing is using coercive power as they are punishing their resellers by slowing down deliveries and postponing product availability due to their actions.

Question 10

A _____ is an organized system of marketing institutions through which products, resources, information, funds and/or product ownership flow from the point of production to the final user.

Accepted Answer

A marketing channel is an organized system of marketing institutions that facilitates the flow of goods and services from manufacturers to end-users. It includes intermediaries such as wholesalers, retailers, agents, and brokers who help to channel goods from the producer to the consumer. The marketing channel is responsible for making these products and services available to the end-users in the most efficient and cost-effective manner possible, while also providing added value to both the producer and the consumer.

Question 11

Ensuring the availability of products in the right place in the right quantities at the right time in a cost efficient manner is the main focus of:

Accepted Answer

The answer of Ensuring the availability of products in the...

Question 12

What is the most appropriate type of distribution to use when customers need the opportunity to comparison shop, or when after-sale services are important?

Accepted Answer

Selective distribution is the most appropriate type of distribution when customers need the opportunity to comparison shop or when after-sale services are important. Selective distribution allows manufacturers to carefully choose which retailers or dealers they work with, ensuring that their products are sold only through those that provide a certain level of customer service and support. This helps to ensure that customers have access to the necessary information to make informed decisions and that they are able to receive adequate after-sale support if needed.

Question 13

As pressures have increased to cut expenses and increase profit margins, many marketing channels have strongly embraced _____. The rapid increase in nonstore retailing is a prime example of this growing trend.

Accepted Answer

Direct distribution refers to selling products directly to consumers without intermediaries, which aligns with the trend of nonstore retailing, such as online sales, to cut costs and increase profits.

Question 14

Many products, such as candy, soft drinks, and gum are sold via intensive distribution. However, this strategy has a major drawback. What is it?

Accepted Answer

Intensive distribution involves placing a product in as many outlets as possible. This strategy can lead to manufacturers losing some control over how their products are priced and displayed because they must negotiate and comply with the practices of numerous retailers.

Question 15

Overall, the trends occurring in marketing channels today (growth in e-commerce, shifting power, outsourcing, growth in direct distribution/nonstore retailing, and growth in dual distribution) have one major theme in common. What is that theme?

Accepted Answer

The common theme among the trends is increasing channel efficiency by reducing waste, overhead, and other costs. This is seen in the growth of e-commerce and direct distribution/nonstore retailing, as well as the outsourcing of certain functions to third-party providers. Shifting power and growth in dual distribution may also contribute to this theme by allowing for more efficient and effective supply chain management. The other options are not supported by the trends in marketing channels.

Question 16

In the Mercedes dealer network, individual dealers are given the sole right to sell Mercedes vehicles within a defined geographic area. What type of distribution does Mercedes employ?

Accepted Answer

Mercedes employs exclusive distribution by granting individual dealers exclusive rights to sell its vehicles in specific geographic areas, limiting the number of outlets to maintain a high level of service quality and brand prestige.

Question 17

Today, though cutting expenses is still a main factor, the desire of many firms to focus on core competencies is a driving force behind the increase in:

Accepted Answer

The desire of many firms to focus on core competencies is driving the increase in outsourcing. By outsourcing non-core functions, companies can concentrate on their strengths and become more efficient, while also cutting expenses. Categories A, B, C, and D are not directly related to the concept of focusing on core competencies.

Question 18

Recently, a major manufacturer of small kitchen appliances implemented a program whereby retailers could purchase the firm's popular coffee makers and blenders, but only if the retailers agreed to purchase its less popular irons and food processors. Many of the retailers became angry and threatened to sue the manufacturer for forcing them into a(n):

Accepted Answer

The manufacturer is making the purchase of the popular coffee makers and blenders contingent on the purchase of the less popular irons and food processors. This is known as a tying arrangement, which can be illegal under certain circumstances. The retailers feel forced into buying the less popular products in order to have access to the popular ones, which is seen as anti-competitive behavior.

Question 19

The most basic benefit of marketing channels is _____ where channels reduce the number of contacts necessary to exchange products.

Accepted Answer

Marketing channels provide contact efficiency by reducing the number of contacts necessary to exchange products. This means that intermediaries in the channels help to bridge the gap between the manufacturer and the end consumer, making it easier and more efficient for products to be distributed and sold. Host reduction, time efficiency, spatial realignment, and accumulation are not the most basic benefit of marketing channels.

Question 20

In terms of marketing channel functions, which of the following statements describes the concept of discrepancy of quantity?

Accepted Answer

The concept of discrepancy of quantity refers to the difference between the large quantities produced by manufacturers and the small quantities desired by customers. Option E accurately describes this concept.

Quiz 9: Distribution and Supply Chain Management