Deck 11: Manage Marketing Channels and Points of Customer Interface

Question 1

Physical distribution,or logistics,is the integrated process of moving input materials to the producer,in-process inventory through the firm,and finished goods out of the firm through the channel of distribution.

Answer 1

True
Explanation: Physical distribution, or logistics, is the integrated process of moving input materials to the producer, in-process inventory through the firm, and finished goods out of the firm through the channel of distribution.

Question 2

Receiving and properly processing customer orders is a critical step in getting product moving through the supply chain.

Answer 2

True
Explanation: Receiving and properly processing customer orders is a critical step in getting product moving through the supply chain. It is also a point at which mistakes can easily occur, and when a mistake occurs in the order it usually carries through the whole fulfillment system.

Question 3

The degree of push versus pull used is fundamental in framing the channel structure and relationships that are likely to optimize a product's success.

Answer 3

True
Explanation: The third aspect of channel decisions by marketing managers relates to what channel functions are most important to the success of the particular products. In large measure, this decision is framed by whether the general approach is a push strategy or a pull strategy.

Question 4

Often,channel members adopt an approach of utilizing their unique competencies to influence others in the channel.

Question 5

Exclusive dealing may be legal if the parties show exclusivity is essential for strategic reasons,such as to maintain product image.

Question 6

In reality,cutting out intermediaries is always a guarantee of saving consumers money.

Question 7

Within a particular product category,the variety and assortment of products carried by retailers tends to be very similar.

Question 8

While popular with consumers,vending machines are not particularly profitable.

Question 9

Channel intermediaries enhance utilities by providing a wide array of specific functions.

Question 10

The primary advantage of the television home shopping retail format is the ability to show and demonstrate the product.

Question 11

A producer can always grant an intermediary an exclusive territory for sales purposes.

Question 12

In evaluating a website,one of the key measures is its "stickiness," which refers to the length of time visitors remain at the site.

Question 13

Despite profound changes,retail remains a small,insignificant part of the supply chain and consumer marketing.

Question 14

In an ideal supply chain,materials of all kinds are handled as many times as possible.

Question 15

Many organizations are beginning to consider their customers-both end users and within a channel-as less important members of a value network.

Question 16

A channel is a system of interdependent relationships among a set of organizations that facilitates the exchange process.

Question 17

Unresolved channel conflict will never result in an uncooperative and inefficient channel,but it may impact end-user consumers through inferior products,spotty inventory,and higher prices.

Question 18

The value chain portrays a mixture of primary and support activities utilized by an organization to design,produce,market,deliver,and support its products.

Question 19

A push strategy doesn't mean a manufacturer would refrain from engaging in any channel incentives,but rather that the incentives would likely be greatly reduced versus a pull strategy.

Question 20

When marketing planning,a good channel decision is the most important within the entire planning process because it does leads to market advantage over competitors.

Question 21

Introducing one intermediary into a channel can contribute to greatly _______________ that are necessary to complete an exchange.

A)Creating assortments
B)Reducing transactions
C)Transportation and storage functions
D)Facilitating functions
E)Disintermediation

Question 22

In a(n)________________,the sheer size and power of one of the channel members places it in a position of channel control.

A)Insourcing arrangement
B)Vertical marketing system (VMS)
C)Corporate VMS
D)Contractual VMS
E)Administered VMS

Question 23

A(n)_________________ contains one or more intermediary levels.

A)Channel distribution
B)Merchant intermediary
C)Agent intermediary
D)Direct channel
E)Indirect channel

Question 24

Channel intermediaries enhance utilities by providing a wide array of specific functions including ________________.

A)Physical distribution functions
B)Transaction and communication functions
C)Facilitating functions
D)Both physical distribution functions and transaction and communication functions
E)Physical distribution functions, Transaction and communication functions, and Facilitating functions

Question 25

_____________,in whatever form,is the point of contact in the supply chain with the consumer of the product.

A)Retailing
B)Breadth of merchandise
C)Customer touchpoints
D)Assortment
E)Variety

Question 26

Intermediaries engage in ________________ when they accumulate products from several sources and then make those products available down the channel as a convenient assortment for consumers.

A)Creating assortments
B)Reducing transactions
C)Transportation and storage functions
D)Facilitating functions
E)Disintermediation

Question 27

_____________ perform a variety of physical distribution,transaction and communication,and facilitating functions that make exchange possible.

A)Channel distributions
B)Merchant intermediaries
C)Agent intermediaries
D)Direct channels
E)Indirect channels

Question 28

Rock Solid is a company that manufactures different mixes of mortar for building projects.Recently it decided to outsource its warehousing in order to focus more on making great mortar mixes.This is an example of _________________.

A)Network organization
B)Value network
C)Virtual organization
D)Both network organization and value network
E)Both network organization and virtual organization

Question 29

Good Egg Co.buys eggs from local farmers,sorts them into different grades,and then packages them to sell to larger grocers.Good Egg Co.is performing the distribution function of ______________.

A)Physical distribution
B)Supply chain
C)Supply chain management
D)Breaking bulk
E)Accumulating bulk

Question 30

Jenn has recently decided to take a value network approach to create a competitive advantage over her competitors.She is trying this because ___________________.

A)She frees up internal resources
B)Her firm can be more nimble in addressing external uncontrollable opportunities and threats
C)She has an advantage over firms that have high costs associated with performing many of the value chain functions
D)Both she frees up internal resources and she has an advantage over firms that have high costs associated with performing many of the value chain functions
E)She frees up internal resources, Her firm can be more nimble in addressing external uncontrollable opportunities and threats, and She has an advantage over firms that have high costs associated with performing many of the value chain functions

Question 31

_____________ is any business activity that creates value in the delivery of goods and services to consumers for their personal,nonbusiness consumption and is an essential component of the supply chain.

A)Customer touchpoint
B)Retailing
C)Breadth of merchandise
D)Depth of merchandise
E)Variety

Question 32

Channel members add their value by bridging gaps in form,time,place,and ownership that naturally exist between ___________________.

A)Consumers and transporters
B)Producers and transporters
C)Producers and consumers
D)Producers and retailers
E)None of these

Question 33

A value network perspective is a macro-level strategic approach that is being adopted by many firms in part because of the intense competition to cut __________ and maximize ____________ every step of the way to market.

A)Costs, process efficiencies
B)Process efficiencies, costs
C)Costs, profits
D)Time inefficiencies, profits
E)None of these

Question 34

The role of retailing is to _________________.

A)Offer variety to customers
B)Separate large product volume into consumer purchase quantities
C)Maintain inventory levels
D)Make additional services available
E)All of these

Question 35

A ________________ has no intermediaries and operates strictly from producer to end-user consumer or business user.

A)Channel distribution
B)Merchant intermediary
C)Agent intermediary
D)Direct channel
E)Indirect channel

Question 36

The _____________ is thought of as an overarching system of formal and informal relationships,within which the firm participates to procure,transform and enhance,and ultimately supply its offerings in final form within a market space.

A)Value network
B)Virtual organization
C)Network organization
D)Value chain
E)Intermediary network

Question 37

__________ take title to the product.

A)Channel distributions
B)Merchant intermediaries
C)Agent intermediaries
D)Direct channels
E)Indirect channels

Question 38

A(n)________________ represents all organizations involved in supplying a firm,the members of its channels of distribution,and its end-user consumers and business users.

A)Physical distribution system
B)Supply chain
C)Supply chain management
D)Breaking bulk
E)Accumulating bulk

Question 39

The _____________ eliminates many in-house business functions and activities in favor of focusing only on those aspects for which it is best equipped to add value.

A)Value network
B)Value co-creation
C)Network organization
D)Nimbleness
E)Intermediary

Question 40

A channel of distribution consists of interdependent entities that are ___________________.

A)Aligned for the purpose of transferring possession of a product from producer to consumer or business user
B)Aligned for the purpose of creating cost efficiencies only
C)Interconnected to perform manufacturing before a transporter takes the finished product
D)Working together to develop new products
E)None of these

Question 41

In an administered VMS,the sheer size and power of one of the channel members places it in a position of channel control.The lead player in such situations may be referred to as the ______________,signifying its ability to control many aspects of that channel's operations.

A)Lieutenant
B)Retailer cooperative
C)Wholesaler cooperative
D)Channel captain
E)Partner relationship management (PRM) strategies

Question 42

____________ consists of vertically aligned networks behaving and performing as a unified system.

A)Insourcing
B)Vertical marketing system (VMS)
C)Corporate VMS
D)Contractual VMS
E)Administered VMS

Question 43

It is possible that a(n)________________ can be more formally structured through strategic alliances and partnership agreements among channel members that agree to work in mutual cooperation.An example of this is the relationship between Walmart and Procter & Gamble.

A)Insourcing arrangement
B)Vertical marketing system (VMS)
C)Corporate VMS
D)Contractual VMS
E)Administered VMS

Question 44

Nadia works for a major soda distributor.Recently the company has begun to discuss buying a transportation company to move its product from its own manufacturing facility to the consumer.This is an example of _______________.

A)Insourcing
B)Vertical marketing system (VMS)
C)Corporate VMS
D)Contractual VMS
E)Administered VMS

Question 45

Famous Al's purchases different fruits from local farmers and then sells them to local restaurants and retailers.If the fruits rot before Al sells them he takes the loss.As an intermediary,Famous Al's is performing the function of ________________.

A)Financing
B)Market research
C)Buying
D)Risk-taking
E)None of these

Question 46

Entrepreneur magazine reports that ________________ remain the highest-potential start-up and growth mechanism for small-business owners,and are an effective way to expand a distribution channel quickly and efficiently.

A)Franchise organizations
B)Retailer cooperatives
C)Wholesaler cooperatives
D)Channel captains
E)Partner relationship management (PRM) strategies

Question 47

XYZ intermediary works with large consumer product manufacturers as well as small local retailers.The company buys large quantities of products from the manufacturers and sells them in smaller quantities to retailers.XYZ is performing the distribution function of _________________.

A)Physical distribution
B)Supply chain
C)Supply chain management
D)Breaking bulk
E)Accumulating bulk

Question 48

A(n)__________________ consists of otherwise independent entities that are bound together legally through contractual agreement.

A)Insourcing arrangement
B)Vertical marketing system (VMS)
C)Corporate VMS
D)Contractual VMS
E)Administered VMS

Question 49

Ultimately,________________ can occur in which channel members experience disagreements and their relationship can become strained or fall apart.

A)Channel power
B)Channel conflict
C)Expert power
D)Reward power
E)Coercive power

Question 50

Financing,market research,risk-taking,and other services are considered to be _________________________.

A)Creating assortments
B)Reducing transactions
C)Transportation and storage functions
D)Facilitating functions
E)Disintermediation

Question 51

By combining efforts,____________ gain advantages through enhanced buying and distribution power,which allow them to better compete with supermarket chains than if the stores were buying separately.

A)Franchise organizations
B)Retailer cooperatives
C)Wholesaler cooperatives
D)Channel captains
E)Partner relationship management (PRM) strategies

Question 52

The goal of the ________________ is to share resources,especially remembering-based resources,to effect optimally profitable relationships between two channel members.

A)Lieutenant
B)Retailer cooperative
C)Wholesaler cooperative
D)Channel captain
E)Partner relationship management (PRM) strategies

Question 53

XYZ is a Cleveland-based wholesaler that retailers contract for varying degrees of exclusive dealings with a particular wholesaler.XYZ is an example of a ________________.

A)Franchise organization
B)Retailer cooperative
C)Wholesaler cooperative
D)Channel captain
E)Partner relationship management (PRM) strategy

Question 54

A(n)________________ creates a powerful competitive advantage in the marketplace due to cost and process efficiencies realized when a channel is strictly controlled by one entity.

A)Insourcing arrangement
B)Vertical marketing system (VMS)
C)Corporate VMS
D)Contractual VMS
E)Administered VMS

Question 55

______________ is the degree to which any member of a marketing channel can exercise influence over the other members of the channel.

A)Channel power
B)Channel conflict
C)Expert power
D)Reward power
E)Coercive power

Question 56

Keisha is in charge of overseeing the flow of activities among several entities for Walmart.Her main objective is to coordinate these value-adding activities in a way that adds value.She is in charge of _______________.

A)Physical distribution
B)Supply chain
C)Supply chain management
D)Breaking bulk
E)Accumulating bulk

Question 57

Producers make money by pushing finished goods out the door and into the channel of distribution.As such,the most commonly provided channel intermediary activities are _______________.

A)Creating assortments
B)Reducing transactions
C)Transportation and storage functions
D)Facilitating functions
E)Disintermediation

Question 58

In ________________ a channel member has invested in backward or forward vertical integration by buying a controlling interest in other intermediaries.

A)Insourcing arrangement
B)Vertical marketing system (VMS)
C)Corporate VMS
D)Contractual VMS
E)Administered VMS

Question 59

Local Farmers of Tampa Bay is a group of more than 100 farmers who have banded together to gain cost and operating economies of scale.The Local Farmers group is an example of a ______ .

A)Retailer cooperative
B)Vertical marketing system (VMS)
C)Corporate VMS
D)Contractual VMS
E)Administered VMS

Question 60

_____________ is the shortening or collapsing of marketing channels due to the elimination of one or more intermediaries,and is common in the electronic channel.

A)Creating assortments
B)Reducing transactions
C)Transportation and storage functions
D)Facilitating functions
E)Disintermediation

Question 61

Distribution strategies can be __________________.

A)Intensive
B)Selective
C)Exclusive
D)Both intensive and exclusive
E)Intensive, Selective, and Exclusive

Question 62

______________ involves an explicit or implicit threat that a channel captain will invoke negative consequences on a channel member if it does not comply with the leader's request or expectations.

A)Coercive power
B)Reward power
C)Expert power
D)Referent power
E)Legitimate power

Question 63

Unresolved channel conflict can result not only in an uncooperative and inefficient channel,but it can also ultimately impact end-user consumers through ________________.

A)Inferior products
B)Spotty inventory
C)Higher prices
D)Both inferior products and spotty inventory
E)Inferior products, Spotty inventory, and Higher prices

Question 64

When a channel member is respected,admired,or revered based on one or more attributes,that member enjoys ________________ within the channel.

A)Coercive power
B)Reward power
C)Expert power
D)Referent power
E)Legitimate power

Question 65

_______________ is often part of an overall positioning strategy built on prestige,scarcity,and premium pricing.

A)Selective distribution
B)Exclusive distribution
C)Widespread distribution
D)Convenience distribution
E)Intensive distribution

Question 66

One example of a push strategy is _______________.

A)Couponing
B)Consumer rebates
C)Sales contests
D)Paying a slotting allowance
E)Both sales contests and paying a slotting allowance

Question 67

___________ is not a source of channel power.

A)Reward power
B)Referent power
C)Legitimate power
D)Consumer power
E)Expert power

Question 68

Intensive distribution is typically associated with low-cost ________________.

A)High-technology goods
B)Durable goods
C)Convenience goods
D)Impulse goods
E)Shopping goods

Question 69

____________ implies that many of the promotional activities take place from the manufacturer downward through the channel of distribution.

A)Selective distribution
B)Exclusive distribution
C)Push strategy
D)Pull strategy
E)Intensive distribution

Question 70

Consumers engage in limited search for items like fashion clothing,home furnishings,and appliances.These are examples of ______________ goods.

A)High-technology goods
B)Durable goods
C)Convenience goods
D)Impulse goods
E)Shopping goods

Question 71

Voss water deals only with a single wholesaler in every state.The wholesaler has to deal with specific hotels and restaurants.Voss employs a(n)______________ strategy.

A)Selective distribution
B)Exclusive distribution
C)Push
D)Pull
E)Shelf fee

Question 72

In deciding on the right balance between control and flexibility in a channel,marketing managers must consider all of the following except _______________.

A)The type of products involved
B)Cost issues among the various options
C)Strength of belief in the accuracy of the sales forecast
D)Likelihood that major changes will occur in the customer or competitive marketplace that would necessitate restructuring the channel
E)None of these

Question 73

_________________ refers to sourcing materials and knowledge inputs from external suppliers to the point at which production begins.

A)Outbound logistics
B)Inbound logistics
C)Reverse logistics
D)Order processing
E)Enterprise resource planning (ERP) systems

Question 74

_______________ is the process that starts with production and ends with the delivery of the final product.

A)Outbound logistics
B)Inbound logistics
C)Reverse logistics
D)Stock-out
E)Enterprise resource planning (ERP) systems

Question 75

When the objective is to obtain maximum product exposure throughout the channel,a(n)________________ strategy is designed to saturate every possible intermediary and especially retailers.

A)Distribution intensity
B)Intensive distribution
C)Channel length
D)Logistics
E)Shopping goods supply

Question 76

A manufacturer employing a(n)________________ focuses much of its promotional investment on the end-user consumer.

A)Selective distribution
B)Exclusive distribution
C)Push strategy
D)Pull strategy
E)Shelf fee

Question 77

The motivating force for suppliers to work with large chain stores is that the stores can offer huge ______________ in the form of writing big orders.

A)Coercive power
B)Reward power
C)Expert power
D)Referent power
E)Legitimate power

Question 78

______________ results from contracts such as franchise agreements or other formal agreements.

A)Coercive power
B)Reward power
C)Expert power
D)Referent power
E)Legitimate power

Question 79

________________ may take the form of sharing important product remembering.

A)Coercive power
B)Reward power
C)Expert power
D)Referent power
E)Legitimate power

Question 80

____________ are appropriate for intensive distribution,as their sales rely on the consumer seeing the product,feeling an immediate want,and being able to purchase now.

A)High-technology goods
B)Durable goods
C)Convenience goods
D)Impulse goods
E)Shopping goods