Deck 14: Managing Marketing Channels and Supply Chains

Question 1

Several artists in Victoria,British Columbia,have created an arrangement to sell their paintings.They have set up an art gallery in downtown Charleston,so tourists and art lovers can look at their paintings and buy the ones they like.Each artist takes a turn acting as the sales clerk at the gallery.In terms of the marketing channel,the artist who is on duty in the gallery is acting as a(n):

A)ultimate consumer.
B)retailer.
C)wholesaler.
D)brokerage firm.

Answer 1

B

Question 2

Figure: 14-1
A variety of terms are used for marketing intermediaries.They vary in specificity and use in consumer and business markets.According to Figure 14-1,the term that would be used to describe the intermediary in Cell "B," would be __________.

A)retailer
B)middleman
C)wholesaler
D)agent or broker

Answer 2

D

Question 3

The three basic functions performed by intermediaries are:

A)accommodating functions, logistical functions, and transactional functions.
B)implementation functions, accommodating functions, and contractual functions.
C)contractual functions, facilitating functions, and logistical functions.
D)transactional functions, logistical functions, and facilitating functions.

Answer 3

D

Question 4

Callaway has a presence in over __________ countries.

A)50
B)75
C)95
D)100

Question 5

Figure: 14-1
A variety of terms are used for marketing intermediaries.They vary in specificity and use in consumer and business markets.According to Figure 14-1,the term that would be used to describe the intermediary in Cell "C," would be __________.

A)retailer
B)middleman
C)wholesaler
D)distributor

Question 6

Rob stops at the supermarket to purchase a package of Oreo and other groceries.He is the ultimate consumer in a pipeline from the producer through intermediaries including the grocery store.This pipeline is actually a:

A)consumer market.
B)marketing intermediary.
C)marketing channel.
D)transactional function.

Question 7

You probably own several pairs of blue jeans.Further,it is likely that you purchased those jeans at retail stores located in a shopping mall.It is quite unlikely you bought the jeans directly from the manufacturer.In fact,most goods are brought to you via a(n)____,which consists of several organizations involved in the process of marketing products or services and making them available for our use as consumers.

A)organizational chain of command
B)organizational hierarchy
C)marketing channel
D)marketing hierarchy

Question 8

Figure: 14-1
A variety of terms are used for marketing intermediaries.They vary in specificity and use in consumer and business markets.According to Figure 14-1,the term that would be used to describe the intermediary in Cell "E," would be __________.

A)retailer
B)middleman
C)wholesaler
D)distributor

Question 9

Two students,Nick and Lee,were studying for an upcoming exam in their Introduction to Marketing course.While studying the chapter on Marketing Channels and Wholesalers,Nick made the following statement,"If it weren't for wholesalers and other intermediaries in the channel of distribution,the products we buy would cost a lot less!" After contemplating Nick's statement,Lee said,"Wait a minute.We learned in class that channel intermediaries actually make marketing more efficient by minimizing the number of transactions necessary to sell products." Lee's statement refers to:

A)value created by channel intermediaries.
B)channel intermediary development.
C)price inflation by channel intermediaries.
D)channel intermediary promotional efforts.

Question 10

Figure: 14-1
A variety of terms are used for marketing intermediaries.They vary in specificity and use in consumer and business markets.According to Figure 14-1,the term that would be used to describe the intermediary in Cell "A," would be __________.

A)retailer
B)middleman
C)wholesaler
D)distributor

Question 11

A dealer is another more imprecise term for each of the following EXCEPT:

A)a middleman
B)a wholesaler
C)a retailer
D)manufacturer

Question 12

On your way into school today,you stopped by Mac's Milk to pick up a Red Bull for an energy pickup.Mac's Milk is an example of a(n):

A)distribution line.
B)marketing channel.
C)consortium.
D)cartel.

Question 13

Which of the following statements about the terms used for marketing intermediaries is true?

A)The most precise terms used to describe marketing intermediaries are dealer and distributor.
B)A retailer sells to business markets.
C)An agent has no legal authority to act on behalf of a manufacturer.
D)A middleman is any intermediary between manufacturer and end-user markets.

Question 14

Annual sales for Callaway Golf are approaching:

A)$100 million
B)$500 million
C)$750 million
D)$1 billion

Question 15

Which of the following does Callaway Golf NOT,market and sell its products through?

A)on- and off-course golf retailers
B)sporting goods retailers
C)online store
D)using athletes as salespeople (i.e.like Tupperware)

Question 16

Figure: 14-1
A variety of terms are used for marketing intermediaries.They vary in specificity and use in consumer and business markets.According to Figure 14-1,the term that would be used to describe the intermediary in Cell "D," would be __________.

A)retailer
B)middleman
C)wholesaler
D)distributor

Question 17

One could describe Callaway's approach to marketing channels as:

A)single channel
B)online e-commerce
C)multichannel
D)several channel

Question 18

Intermediaries make the selling of goods more efficient by:

A)maximizing the number of contacts necessary between producer and consumer.
B)identifying target markets.
C)reducing manufacturing costs.
D)minimizing the number of sales contacts between producer and consumer.

Question 19

A trucking company is shipping goods from a manufacturer in the USA up to Winnipeg,Manitoba.When the truck reaches the border,a(n)_____________ helps the truck clear the border as they have legal authority to deal with customs.

A)dealer
B)agent or broker
C)retailer
D)wholesaler

Question 20

Partnerships are critical for Callaway Golf,which solution was implemented to ensure that partnerships were not jeopardized when they opened an online store?

A)allowing retailers to take credit if they fulfill buyer's order within 24hrs
B)allowing individuals to order online but pickup at a given store
C)the online store did not jeopardize their loyal partners
D)10 percent of every online sale was shared to all of Callaway's partners through their profit sharing program

Question 21

Longaberger baskets are sold at parties.A hostess invites friends and neighbours to admire the baskets the company has sent to display and takes orders.In return,the hostess is able to purchase the baskets at a discount.Longaberger uses which type of marketing channel?

A)clustering
B)direct channel
C)indirect channels
D)marketing channel

Question 22

Metro shopping centres receives ten bushels of Apples every day,they then sort them as either "A," "B," or "C" grade apples and price accordingly.This activity is known as:

A)financing
B)grading
C)sorting
D)storing

Question 23

Figure: 14-1
A variety of terms are used for marketing intermediaries.They vary in specificity and use in consumer and business markets.According to Figure 14-1,the term that would be used to describe the intermediary in Cell "F," would be __________.

A)retailer
B)dealer
C)wholesaler
D)distributor

Question 24

When Hunter went to the hardware store looking for gloves to wear while refinishing a table,he bought one pair because that was all he needed,but when the hardware store purchased the gloves,it purchased a case containing 100 pairs of identical gloves.Which logistical function did the hardware store perform for Hunter?

A)marketing
B)buying
C)sorting
D)assorting

Question 25

A consumer buys berries at Remlinger Farms,flour and sugar at a bulk food store,and milk and butter at a supermarket,then returns home to bake two dozen strawberry pies for a family reunion.Which logistical function activity did the consumer engage in that is ordinarily performed by a retailer?

A)assorting
B)storing
C)sorting
D)transporting

Question 26

Every Saturday morning you like driving out to the apple orchard and purchasing right from the farmer.This purchasing form is considered:

A)strategic channel alliance
B)direct channel
C)marketing channel
D)indirect channel

Question 27

Receiving a flyer from Future Shop is an example of which function completed by an intermediary?

A)selling
B)transporting
C)marketing information
D)buying

Question 28

When Best Buy purchases a new Xbox 360 game to sell,they receive them in bulk quantities of 500.The Best Buy employees then separate them to individual products that consumers will purchase.This is an example of which activity?

A)buying and selling
B)sorting products
C)financing and grading
D)risk taking

Question 29

When Dell Computer sells made-to-order PCs via its website,it is an example of which type of marketing channel?

A)Direct channel
B)Indirect channel
C)Strategic channel alliances
D)Marketing channel

Question 30

Direct Energy selling utilities contracts,door to door is an example of which type of marketing channel?

A)direct channel
B)indirect channel
C)strategic channel alliances
D)marketing channel

Question 31

When Future Shop purchases the latest Dell computer from the manufacturer,with plans of selling it in their stores,they are taking a(n)___________ in case the product does not sell.

A)chance
B)product refund
C)strategic partnership
D)risk

Question 32

Before consumers see a movie,it is assigned a rating such as G or PG based on its language and content.This rating system is most closely related to which facilitating function activity performed by marketing intermediaries?

A)grading
B)sorting
C)risk taking
D)marketing

Question 33

The Schwan Food Company of Marshall,Alberta,markets a full line of frozen foods in 49 states and parts of Canada using door-to-door salespeople who sell from refrigerated trucks.This particular method of distribution is called a(n):

A)direct channel.
B)indirect channel.
C)facilitated channel.
D)customer service channel.

Question 34

In a direct channel,all channel functions are performed by:

A)retailers.
B)wholesalers.
C)producers.
D)brokers and agents.

Question 35

In terms of distribution,when marketing channel members are engaged in assorting,storing,sorting,and transporting,they are performing _____ functions.

A)logistical
B)transformational
C)facilitating
D)implementing

Question 36

A small electronics company manufactures a line of low to moderate quality stereo components that are distributed through wholesalers to mass market retailers such as Walmart.The electronics company has begun production of a small line of high quality,professional studio model components.How should the small electronics company distribute its new products?

A)use its established channel
B)distribute indirectly to mass market retailers
C)distribute through agents who sell to specialty electronics stores who will feature the new line
D)sell indirectly to specialty electronics stores who will feature the new line

Question 37

The Facilitation Manager at Costco is likely doing which of the following activities?

A)financing, grading, and marketing information and research.
B)transportation and distribution.
C)buying, selling, and risk taking.
D)assorting, sorting, and storing.

Question 38

In an episode of the Andy Griffith television series,two local farmers were selling the produce they grew on their farms from the back of their pickup trucks to local people that drove by on the road.The farmers selling their products without wholesalers or retailers were an example of a:

A)roadside channel of distribution.
B)traveling channel of distribution.
C)intermediate channel of distribution.
D)direct channel of distribution.

Question 39

In terms of distribution,when marketing channel members are engaged in buying,selling,and risk taking,they are performing _____ functions.

A)logistical
B)transformational
C)facilitating
D)transactional

Question 40

In terms of distribution,when marketing channel members are engaged in financing,grading,marketing information and research,they are performing the _____ function.

A)logistical
B)transformational
C)facilitating
D)implementing

Question 41

Adding a wholesaler to the marketing channel for consumer goods is most common for:

A)low-cost, low-unit-value items.
B)low-cost, high-unit-value items.
C)high-cost, low-unit-value items.
D)high-cost, high-unit-value items.

Question 42

Pharmaceutical companies sell to hospitals and clinics directly.They market their products to large retail chains that distribute the medicines to their stores across the nation.They also sell to drug wholesalers that sell to the remaining independent drugstores in Canada.What method of distribution is used by pharmaceutical companies?

A)multichannel distribution
B)vertical distribution
C)horizontal distribution
D)direct distribution

Question 43

The most indirect channel for consumer goods incorporates agents,wholesalers,and retailers and is most commonly used when:

A)there are only a few large manufacturers but many small retailers.
B)there are low-cost, low-unit-volume goods.
C)there are many small manufacturers and many small retailers.
D)there is too large an inventory to be carried by wholesalers.

Question 44

The most common indirect channel moves product from producer to retailer to consumer.This type of channel is most likely to exist with each of the following EXCEPT:

A)the retailer is large and can buy in large quantities.
B)the cost of inventory makes it too expensive to use a wholesaler.
C)there are so many product variations that a wholesaler could not carry them all in sufficient quantity.
D)the retailer is small and buys in small quantities.

Question 45

A channel that includes intermediaries between the producer and consumer and perform numerous channel functions are referred to as a(n)

A)indirect channel.
B)skewed channel.
C)multi-level channel.
D)full-service channel.

Question 46

An intermediary that performs a variety of marketing channel functions involving selling,stocking,and delivering a full product assortment as well as providing financing for industrial goods and services is known as a(n):

A)business distributor
B)wholesaler
C)disintermediary
D)channel captain

Question 47

International Products,Burlington,Ontario,a firm that sells industrial cleansers and lubricants wanted to sell its product to factories,hospitals,and labs in China,but it did not have the necessary expertise.As a result International Products hired Asia Marketing & Management to sell,stock,and deliver a full assortment of products to the Chinese market.Asia Marketing & Management is an example of a(n):

A)agent.
B)wholesaler.
C)business distributor.
D)retailer.

Question 48

In an episode of the Glee television series,members of the glee club were selling home-baked cupcakes at school,to raise money.The students selling their cupcakes without any intermediary would be an example of

A)personalized distribution.
B)non-permanent distribution.
C)informal channel of distribution.
D)direct channel of distribution.

Question 49

Callaway Golf,by using an online and storefront strategy to sell the same product is an example of which type of arrangement?

A)A strategic channel alliance
B)Multiple level selling
C)Parallel distribution
D)Multichannel distribution

Question 50

The most common indirect channel moves product from producer to retailer to consumer.This type of channel is most likely to exist in all of the following scenarios,except when:

A)the retailer is large and can buy in large quantities.
B)the cost of inventory makes it too expensive to use a wholesaler.
C)there are so many product variations that a wholesaler could not carry them all in sufficient quantity.
D)the cost of maintaining inventory is low.

Question 51

Canada has gone from producing and marketing no diamonds to being the third-largest producer of diamonds in the world.This is largely due to the construction of a(n)_____________.

A)just-in-time inventory system
B)railway system
C)confederate bridge
D)ice road

Question 52

Facebook,Amazon.ca,Expedia.ca,and Dell.ca are all examples of:

A)Internet distribution channels
B)Electronic marketing channels
C)Virtual marketing channels
D)Consumer-responsive channels

Question 53

When you order a sweater from an L.L.Bean mail-order catalogue,what type of marketing channel are you and the company using?

A)cash and carry marketing
B)intensive distribution
C)selective distribution
D)direct marketing

Question 54

Mail-order selling,catalogue sales,and telemarketing,are all examples of:

A)indirect marketing.
B)direct marketing.
C)impersonal marketing.
D)channel bypass marketing.

Question 55

The channel strategy demonstrated when Black & Decker sells its tools in the consumer market under the Black & Decker name and basically the same tool to the business market using the DeWalt brand name.Black & Decker is using:

A)strategic channel alliance.
B)multi-intermediary distribution.
C)parallel distribution.
D)multichannel distribution.

Question 56

MachineTools.com sells grinders,boring mills,and engine lathes.The website has listed goods from over 700 machinery manufacturers,2,500 distributors of new equipment,and 650 dealers of used inventory for sale at the website.MachineTools.com relies on a well-established channel of manufacturers,distributors,and machinery dealers to provide the merchandise that is sold through this:

A)Internet distribution channel.
B)electronic marketing channel.
C)virtual marketing channel.
D)consumer-responsive channel.

Question 57

A method of marketing which allows consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson is referred to as:

A)Indirect marketing
B)Direct marketing
C)Impersonal marketing
D)Personal selling

Question 58

Indirect channels for consumer goods

A)occur when one firm's marketing channels are used to sell another firm's products.
B)include producers and end-users dealing directly with each other.
C)include intermediaries that are between the producer and consumer and perform numerous channel functions.
D)are arrangements whereby a firm reaches buyers by employing two or more different types of marketing channels for the same basic product.

Question 59

Business distributors perform functions that are most like which intermediary in the consumer goods marketing channel?

A)manufacturers
B)retailers
C)agents
D)wholesalers

Question 60

Hybrid marketing channels or dual distribution are two terms that mean the same as:

A)strategic channel alliance.
B)multi-intermediary distribution.
C)parallel distribution.
D)multichannel distribution.

Question 61

Josmar Farms,sells their products directly at their storefront,at a local farmers market,through a local convenience store,and through an online storefront using Facebook.They are referred to as a(n):

A)multichannel retailers.
B)poly-retailers.
C)multi-retailers.
D)multi-tailers

Question 62

All of the following are hauled using the ice road built in Nunavut except:

A)300,000 tons of fuel
B)explosives
C)steel
D)conveyer system

Question 63

Merchant wholesalers are independently owned firms that _____ the merchandise they handle.

A)take title to
B)broker
C)act as agent for
D)determine intensity strategy for

Question 64

A regional manufacturer of dairy products has developed a frozen soy-based yogurt product.It feels the choice of distribution channel is critical to the product's success,especially since it wants to have the product distributed nationally.However,it will take some time before sales take off,and it wants to make sure the marketing program is consistent everywhere.It should use:

A)its own sales force to sell directly to retailers.
B)the services of a selling agent to sell to general merchandise wholesalers who will sell to retailers.
C)a dual distribution system composed of both direct and indirect wholesalers.
D)manufacturers' agents to sell to truck jobbers who in turn will deal with retailers.

Question 65

A recent innovation in marketing channels whereby one firm's marketing channel is used to sell another firm's products is called a(n):

A)dual distribution.
B)strategic channel alliance.
C)cooperative distribution.
D)integrated channel alliance.

Question 66

Apple Inc.sells its products in its own retail stores,through its own website,and through other retailers such as Best Buy.Apple is using:

A)strategic channel alliance.
B)multichannel distribution.
C)parallel distribution.
D)multi-intermediary distribution.

Question 67

Which limited-service wholesalers perform no facilitating functions?

A)selling agents and drop shippers
B)manufacturers' agents and selling agents
C)specialty merchandise wholesalers and rack jobbers
D)cash-and-carry wholesalers and truck jobbers

Question 68

Kraft distributes Starbucks coffee in supermarkets.This is called a(n):

A)dual distribution.
B)strategic channel alliance.
C)cooperative distribution.
D)integrated channel alliance.

Question 69

Which of the following is NOT a type of limited-service wholesaler?

A)cash-and-carry wholesaler
B)rack jobber
C)truck jobber
D)general merchandise wholesaler

Question 70

Which type of wholesaler carries a broad assortment of merchandise and performs all channel functions?

A)general merchandise wholesaler
B)limited-line wholesaler
C)specialty merchandise wholesaler
D)rack jobber

Question 71

Which type of marketing channel arrangement is good for a firm to use in international marketing where the creation of marketing channel relationships is expensive and time consuming?

A)dual distribution
B)strategic channel alliance
C)cooperative distribution
D)integrated global channel alliance

Question 72

All of the following are types of specialty merchandise wholesalers EXCEPT:

A)televised home shopping networks.
B)rack jobbers.
C)drop shippers.
D)truck jobbers.

Question 73

Which of the following is a type of merchant wholesaler?

A)cash-and-carry wholesaler
B)rack jobbers
C)truck jobbers
D)specialty merchandise wholesaler

Question 74

The ice roads play a vital ________________ in the ____________ of Canada's growing diamond industry.

A)supply chain; logistics function
B)logistics function; supply chain
C)pricing function; supply chain
D)supply chain; pricing function

Question 75

Bauer Sports Inc.is a wholesaler that specifically focuses on hockey skates,hockey helmets,and hockey gloves.Bauer Sports Inc.is likely a(n):

A)general merchandise wholesaler
B)limited-service wholesaler
C)specialty merchandise wholesaler
D)cash-and-carry wholesaler

Question 76

Hallmark sells its Hallmark greeting cards through Hallmark stores and select department stores,and its Ambassador brand of cards through discount and drugstore chains,thus reaching different customers with different brands.Hallmark is using:

A)strategic channel alliance.
B)multi-product distribution.
C)multichannel distribution.
D)multi-intermediary distribution.

Question 77

When Kraft Foods uses the distribution system of Ajinomoto,a major Japanese food company,to market its Maxwell House coffee in Japan.It is employing a(n)___________ strategy.

A)strategic channel alliance
B)industrial distributor
C)dual distribution system
D)direct marketing channel

Question 78

Meyers,Inc.is a Canadian company that manufactures and distributes coffee products in Canada Because of the wide popularity of its products in the Canada,Meyers wants to initiate distribution internationally as soon as possible.The most efficient distribution arrangement in terms of cost and time for Meyers Inc.to use would be:

A)multichannel distribution.
B)direct marketing.
C)cooperative distribution.
D)strategic channel alliance.

Question 79

GE sells certain appliances directly to home and apartment builders but uses retail stores to sell other appliances to regular homeowners.GE is using:

A)strategic channel alliance.
B)multichannel distribution.
C)parallel distribution.
D)multi-intermediary distribution.

Question 80

Abbott Laboratories,a manufacturer of several popular over-the-counter medications,warehouses and delivers all of 3M's medical and surgical products to hospitals across the nation.The agreement between Abbott Laboratories and 3M is an example of:

A)multichannel distribution.
B)a direct marketing channel.
C)a cooperative distribution channel.
D)a strategic channel alliance.