Question 1

Bombardier makes corporate jets.Its brand name is well known and respected in the corporate Jet market.The aircraft company relies on outside suppliers for design support and to share development costs and market risks but Bombardier is considered the leader in determining design and marketing of its planes.For its newest plane, the Continental, Bombardier has about 30 prime suppliers-about ten of those have been involved since the initial design phase.Furthermore, as the owner of the defunct Lear Jet Corporation, Bombardier is the leading marketer of corporate jets.Bombardier is an example of a _________.

Accepted Answer

Bombardier is an example of a channel captain because it leads and coordinates the design and marketing efforts in its supply chain, despite relying on external suppliers for support.

Question 2

A firm can become a channel captain because it is typically the channel member with the ability to influence the behavior of other members.Influence can take four forms: economic influence; expertise; the legitimate right of one channel member to direct the behavior of other members; and

Accepted Answer

Identification with a particular channel member can create influence as it fosters loyalty and alignment with that member's goals and strategies.

Question 3

A firm can become a channel captain because it is typically the channel member with the ability to influence the behavior of other members.Influence can take four forms: economic influence; identification with a particular channel member; the legitimate right of one channel member to direct the behavior of other members; and

Accepted Answer

Economic influence is a common way for a firm to become a channel captain as it often has the most resources and can use its buying power to influence the behavior of other channel members. The other options, such as expertise or familial ties, may be factors in some cases, but they are not as universally applicable as economic influence.

Question 4

The practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point-of-origin to point-of consumption to satisfy customer requirements is referred to as __________.

Accepted Answer

The answer of The practice of organizing the cost-effective flow...

Question 5

A marketing channel relies on __________ to make products available to consumers and industrial users.

Accepted Answer

Logistics is the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements.

Question 6

American Hospital Supply helps its customers (Hospitals) manage inventory and streamline order processing for hundreds of medical supplies.The source of American Hospital Supply's power is

Accepted Answer

American Hospital Supply's power comes from its expertise in inventory management and order processing for medical supplies. This expertise is valued by hospitals and gives American Hospital Supply a competitive advantage in the market.

Question 7

Johnson Controls can receive an order for automobile seats from Ford and deliver the order four hours later, beginning with raw materials and ending with delivery of the finished seats to ford.As used by Johnson Controls, logistics

Accepted Answer

Logistics in this scenario involves creating utility for Ford by providing fast and efficient delivery of the ordered automobile seats. It does not increase Ford's inventory, add additional steps to the value proposition, include drop-shipping, or have no influence on Ford's supply chain.

Question 8

Goodyear Tire dealers became irate when Goodyear Tire Company decided to sell its brands through Sears, walmart, and Sam's Clubs.Many switched to competing tire makers.This is an example of _________.

Accepted Answer

The answer of Goodyear Tire dealers became irate when Goodyear...

Question 9

Horizontal conflict refers to

Accepted Answer

Horizontal conflict is conflict that occurs between intermediaries at the same level in a marketing channel. An example of this would be two or more retailers competing for customers in the same area, or two or more wholesalers competing for the same manufacturers.

Question 10

Activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost is referred to as __________.

Accepted Answer

Logistics is the process of planning, implementing, and controlling the movement of goods or services from the point of origin to the point of consumption. It involves activities such as transportation, warehousing, inventory management, and order fulfillment. The focus is on ensuring that the right products are available at the right place and time, while minimizing costs. Distribution and warehousing are part of the logistics function, but they do not encompass all of its activities. Sensitivity and direct selling are not related to logistics.

Question 11

Sports Port, a motorcycle and fishing boat retailer located in a small northern Minnesota town, was the world's largest dealer for Crestliner fishing boats.In order to meet the demand of his many customers, the owner of Sports Port worked with a wide variety of channel members, ranging from the manufacturer of the boats to trucking firms, other retailers, and even detailers.Such a diverse channel of distribution often resulted in channel conflict.However, due to his strong consumer following, the owner of Sports Port had the power to resolve disputes between channel members.The owner of Sports Port served as the __________ in the channel of distribution.

Accepted Answer

The owner of Sports Port acted as the channel captain, which means that he managed the relationships between the different channel members and resolved any disputes that may arise. Despite working with a diverse group of channel members, the owner of Sports Port had the power to control the channel due to his strong consumer following.

Question 12

Channel captain refers to

Accepted Answer

The term "channel captain" refers to a channel member (producer, wholesaler, or retailer) who takes on the role of coordinating, directing, and supporting the other channel members to achieve the common goal of the distribution channel. The channel captain is responsible for managing and leading the channel, but does not necessarily have more power or authority than other members.

Question 13

A firm can become a channel captain because it is typically the channel member with the ability to influence the behavior of other members.Influence can take four forms: expertise; identification with a particular channel member; the legitimate right of one channel member to direct the behavior of other members; and

Accepted Answer

Economic influence is the most likely choice as it refers to the ability of a channel member to control resources or rewards that are important to other members, such as pricing policies or exclusive territories. The other options are less relevant to the concept of influence in a marketing channel.

Question 14

Logistics refers to

Accepted Answer

Logistics refers to the coordination of activities involved in getting the right amount of the right product to the right place at the right time at the lowest possible cost distribution management. This involves activities such as inventory management, transportation, warehousing, and order fulfillment.

Question 15

Walmart is a channel captain because of their strong image, number of outlets, and purchasing volume.The source of walmart's power is

Accepted Answer

Walmart's power as a channel captain primarily comes from its economic influence, which is derived from its large number of outlets and significant purchasing volume. This economic power allows Walmart to exert considerable influence over its suppliers and other channel members.

Question 16

Neiman-Marcus is a retailer that many small manufacturers would like to be associated with.A product placement in Neiman-Marcus will increase the prestige of a smaller brand.The source of Neiman-Marcus' power is

Accepted Answer

Neiman-Marcus' power comes from being a sought-after identification for a particular channel member, as it has established itself as an upscale retailer with a prestigious reputation. As a result, smaller brands would benefit from being associated with Neiman-Marcus, which would increase their prestige and recognition.

Question 17

Those activities that focus on getting the right amount of the right product to the right place at the right time at the lowest possible cost are referred to as

Accepted Answer

Logistics specifically focuses on the activities of planning, coordinating, and executing the movement and storage of goods from the point of origin to the point of consumption, making it the best choice for this question. Strategic marketing pertains to the development of marketing plans and strategies, while strategic distribution and distribution management are general terms that can encompass logistics but also refer to broader aspects of inventory management and channel strategies. Logistic-assisted manufacturing (LAD) is not a commonly known term or practice in the field of logistics.

Question 18

Logistics is most closely related to which element of the marketing mix?

Accepted Answer

Logistics is closely related to the element of the marketing mix known as place or distribution. This involves the movement and storage of products from the manufacturer to the final consumer, including transportation, warehousing, and inventory management.

Question 19

A channel member (producer, wholesaler, or retailer) who coordinates, directs, and supports other channel members is referred to as a _________.

Accepted Answer

A channel captain is responsible for guiding, coordinating, and supporting other members of the distribution channel to ensure that the product successfully reaches the end customer. They may set standards, resolve disputes, and make decisions regarding the overall strategy of the channel. The other answer choices do not accurately describe this role.

Question 20

Logistics management refers to

Accepted Answer

Logistics management is the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point-of-origin to point-of consumption to satisfy customer requirements. The other options do not fully capture the meaning and scope of logistics management.

Quiz 13: Managing Marketing Channels and Supply Chains