Deck 10: Marketing Channels and Supply Chain

Question 1

Buybooks generates more sales volume from its website than its stores.This is an example of a promotional website.

Answer 1

False

Question 2

Supply chain activities are generally considered outside of the scope of marketing.

Answer 2

False

Question 3

Sporty Feet produces a special brand of footwear called FootTrekkers and sells it to wholesalers.The wholesalers are intermediaries.

Answer 3

True

Question 4

Multichannel marketing is the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in the traditional marketplace and in the online marketspace.

Question 5

Business channels are typically shorter than consumer channels.

Question 6

Tiffany & Co., the exclusive jewellery retailer, manufactures about half of the fine jewellery items that are offered for sale through its 150 stores and boutiques worldwide.This is an example of backward integration.

Question 7

Berta does online research on laptops.She reads various reviews by laptop owners and makes her choice.She later goes to a retail store to purchase the laptop.Berta is a cross-channel shopper.

Question 8

User manuals are an example of information utility.

Question 9

Mozza cheese, a popular cheese distributor, distributes its cheeses to liquor stores across Canada, to use the liquor stores marketing channel.This is an example of dual distribution.

Question 10

Under a contractual vertical marketing system, a firm at one level of a channel owns the firm at the next level or owns the entire channel.

Question 11

Channel length refers to the number of intermediaries in a distribution channel.

Question 12

If a producer owns the intermediary at the next level down in the channel, it is referred to as backward integration.

Question 13

Transactional websites are used less frequently by manufacturers of consumer products.

Question 14

Dual distribution is an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.

Question 15

A marketing channel includes the individuals and firms involved in making products and services available.

Question 16

Gourmet Coffees sells its coffees through Gourmet Coffee stores and select gift shops, and its Morning Fresh brand of coffees through supermarket stores.This is an example of an electronic marketing channel.

Question 17

Amazon.ca is an example of an electronic marketing channel.

Question 18

Shoppers' Galore issues credit cards to consumers so that they can buy now and pay later.This is an example of a transactional function of an intermediary.

Question 19

Form utility involves efforts by intermediaries to help buyers take possession of a product or service, such as providing various ways for payment to be made for a product-by credit card, debit card, cash, or cheque.

Question 20

Proctor & Gamble sells products to consumers utilizing only retailers in the channel.This exemplifies a direct channel.

Question 21

An electronics store buys electronic products from a manufacturer.It reaches out to retailers through promotional activities.However, the store is unable to sell some of the stock, and suffers a loss.Which of the following functions is the electronic store performing as an intermediary?

A)facilitating function
B)financing function
C)logistical function
D)transactional function

Question 22

Rob stops at the supermarket to purchase a package of Oreo cookies and other items on his grocery list.He is the ultimate buyer in a chain that starts from the producer through intermediaries such as the grocery store.This chain is called the _____.

A)consumer market
B)marketing intermediary
C)marketing channel
D)transactional route

Question 23

Which of the following is true about intermediaries?

A)They refer to cross-channel shoppers who research products online and then purchase them at a retail store.
B)They refer to individuals or firms performing a role in the marketing channel.
C)They refer to marketers who hoard goods and sell them to consumers when demand is high.
D)They refer to manufacturers of goods used in the production of other goods.

Question 24

For marketers, the value of the supply chain is

A)To perform the activities needed to get products or services to customers
B)To minimize the costs of distribution
C)To encourage customers to buy more products at one time
D)Attain as many retail outlets as possible

Question 25

Brad often buys Nestlé products for his family from Seven Eleven Supermarket.Seven Eleven can be termed as a(n) _____.

A)consumer
B)wholesaler
C)agent
D)retailer

Question 26

Intermediaries make selling goods and services more efficient because the intermediaries minimize the number of sales contacts necessary to reach a target market.This highlights the:

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

Question 27

Vertical conflict occurs between intermediaries at the same level in a marketing channel, such as between two or more retailers or two or more wholesalers that handle the same manufacturer's brands.

Question 28

The set of individuals and firms involved in the process of making a product available for use by consumers and business users together make a(n) _____.

A)wholesale business
B)marketing channel
C)advertising consortium
D)consumers' advocacy group

Question 29

Shop 'N' Hop has introduced a convenient payment mode for its customers.Customers can buy merchandise and pay for it at a later date.Which of the following functions is the store performing as an intermediary?

A)facilitating function
B)logistical function
C)informational function
D)transactional function

Question 30

Gathering, sorting, and dispersing products are some of the _____ functions of the intermediary.

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

Question 31

Intermediaries performing a transactional function in distribution are engaged in buying, selling, and _____.

A)channelling
B)strategizing
C)liaising
D)risk taking

Question 32

When a channel member bypasses another member and sells directly to consumers, disintermediation occurs.

Question 33

Het Providers sell goods to other businesses and intermediaries in the marketing channel on credit.Het maintains inventories of goods and is authorized by the manufacturers.Het Providers can be classified as a _____.

A)retailer
B)supplier
C)broker
D)distributor

Question 34

TrendyJeans sells its jeans through a few retail outlets in a specific geographical location.This is an example of exclusive distribution.

Question 35

Channel choice typically depends upon market, company and product factors.

Question 36

Logistics is concerned only with the flow of finished goods to the consumer.

Question 37

Manufacturer-sponsored wholesale franchise systems are prominent where a manufacturer licenses dealers to sell its cars subject to various sales and service conditions.

Question 38

A supermarket chain buys fruits and vegetables from different sources, transfers them to its stores, and arranges them for its customers.Which of the following functions is the store performing as an intermediary?

A)transactional function
B)informational function
C)logistical function
D)facilitating function

Question 39

Electronic data interchange is the computer-to-computer exchange of business documents from a retailer to a supplier and back.

Question 40

Gordon Brothers buys electronic goods from manufacturers, and sells them to stores like E-Land, Freid Electronics, and TechnoTouch Electronics.Gordon Brothers can be classified as a(n) _____.

A)agent
B)retailer
C)wholesaler
D)consumer

Question 41

Which of the following is true about indirect marketing channels?

A)In such channels, marketing must be targeted to shoppers who research products online and then purchase them at retail stores.
B)They refer to online stores that manufacture their own products and sell them to consumers worldwide via their own website.
C)In such channels, the producer must perform all marketing functions.
D)In such channels, intermediaries are inserted between the producer and consumers and perform numerous channel functions.

Question 42

_____ websites focus mainly on converting an online browser into an online, catalogue, or in-store buyer using website design elements.

A)Promotional
B)Transitional
C)Transactional
D)Facilitating

Question 43

_____ websites are essentially electronic storefronts.

A)Informational
B)Transactional
C)Promotional
D)Logistical

Question 44

Tabi's and Radio Shack provide appealing displays of their products and an environment that caters to their customers.This is an example of _____ utility.

A)possession
B)time
C)form
D)place

Question 45

Roses and Tulips, a popular chain of florists in Vancouver, provides one-hour delivery of flowers only within Vancouver.This is an example of _____ utility.

A)place
B)information
C)time
D)possession

Question 46

Seven Eleven Stores has introduced different modes of payment that customers can use for their purchases.Customers can now use cash, debit cards, credit cards, or cheques.This is an example of _____ utility.

A)possession
B)place
C)form
D)time

Question 47

The purpose of a vertical marketing system is to:

A)dissuade retailers from dealing with other manufacturers or wholesalers.
B)limit the number of retail outlets served, or maintain a limited service region.
C)achieve channel economies and maximum marketing impact.
D)eliminate competition by narrowing the channel from supplier to consumer.

Question 48

______ is a dominant retailer that exemplifies electronic marketing channels.

A)McDonalds
B)Apple
C)Ford
D)Amazon

Question 49

A(n) _____ is the independent selling arm of producers, and represents a producer to industrial users.

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

Question 50

An online pottery store, myclayworks.com, designs and produces high-quality pottery products and sells them online to consumers around the world.Which marketing channel has the online store adopted?

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

Question 51

A(n) _____ channel employs the Internet to make goods and services available to consumers or business buyers.

A)product-driven
B)electronic marketing
C)horizontal
D)consumer-responsive

Question 52

A(n) _____ channel is an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.

A)electronic marketing
B)virtual marketing
C)consumer-responsive
D)dual distribution

Question 53

Channels for business goods, when compared to those for consumer goods, tend to be

A)Shorter and based on larger orders
B)Longer and based on smaller orders
C)Less consistent and more transactional
D)more service-based and indirect in nature

Question 54

_____ marketing systems are professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.

A)Symbiotic
B)Horizontal
C)Vertical
D)Functional

Question 55

Future Electronics, a leading electronics retail chain, mails user manuals to its regular customers.This is an example of _____ utility.

A)form
B)time
C)place
D)information

Question 56

Levi's sells its clothing line directly through its own stores, as well as through other retail stores such as The Bay, Zellers, and Sears.This is an example of a(n) _____.

A)consumer-responsive channel
B)strategic channel alliance
C)electronic marketing channel
D)dual distribution channel

Question 57

Candletime, a company manufacturing different types of candles for cakes, sells its candles through different bakeries in the city.In this scenario, Candletime is using the bakeries' marketing channel to sell its candles products.This is an example of a(n) _____.

A)virtual marketing channel
B)strategic channel alliance
C)consumer-responsive channel
D)electronic marketing channel

Question 58

A consumer who researches products online and then purchases them at a retail store is called a(n) _____.

A)cross-channel shopper
B)channel hopper
C)e-commerce consumer
D)dual consumer

Question 59

_____ is the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in the traditional marketplace and in the online marketspace.

A)Cross-channel shopping
B)Multichannel marketing
C)Dual-level distribution
D)Strategic channel alliance

Question 60

A Shell Canada gas station is located on a national highway.This is an example of _____ utility.

A)time
B)place
C)possession
D)form

Question 61

_____ distribution occurs when only one retail outlet in a specified geographical area carries the firm's products.

A)Direct
B)Dual
C)Selective
D)Exclusive

Question 62

Under a _____ marketing system, a firm at one level of a channel owns the firm at the next level or owns the entire channel.

A)multi-product
B)horizontal
C)functional
D)corporate vertical

Question 63

Which of the following distribution channels did Holler's Jeans adopt for its products?

A)intensive distribution
B)dual distribution
C)exclusive distribution
D)selective distribution

Question 64

_____ distribution means that a firm chooses a few retail outlets in a specific geographical area to carry its products.

A)Dual
B)Intensive
C)Selective
D)Direct

Question 65

Chrysler licenses dealers to sell its cars subject to various sales and service conditions.This is an example of a _____.

A)manufacturer-sponsored wholesale franchise system
B)retailer-sponsored cooperative
C)wholesaler-sponsored voluntary chain
D)manufacturer-sponsored retail franchise system

Question 66

Sony distributes its laptops through few retail outlets in a specific geographical area.Which of the following channel designs has Sony adopted?

A)exclusive distribution
B)selective distribution
C)direct distribution
D)dual distribution

Question 67

_____ means that a firm tries to place its products and services in as many outlets as possible.

A)Exclusive distribution
B)Niche marketing
C)Intensive distribution
D)Product placement

Question 68

Mocha Jive coffee shops operate their own cafés and have a subsidiary company, Perfect Cookies, that produces a wide variety of cookies and snacks for their stores.This is an example of _____.

A)dual distribution
B)selective distribution
C)backward integration
D)horizontal marketing system

Question 69

_____ is a contractual agreement between a parent company and an individual or a firm that allows the individual/firm to operate a certain type of business under an established name and according to specific rules set by the parent company.

A)Franchising
B)Joint venture agreement
C)Wholesaler-sponsored voluntary chain
D)Retailer-sponsored cooperative

Question 70

Cocoarich chocolates aim to place their chocolates products "within an arm's reach of desire" of their customers.They ensure that their products are placed in as many stores as possible.This is an example of _____.

A)diversification
B)exclusive distribution
C)intensive distribution
D)selective distribution

Question 71

_____ systems are provided by firms that have designed a unique approach for selling merchandise to customers.

A)Retailer-sponsored
B)Manufacturer-sponsored wholesale franchise
C)Service franchise
D)Retail franchise

Question 72

_____ involve a wholesaler that develops a contractual relationship with small, independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management efforts.

A)Manufacturer-sponsored wholesale franchise systems
B)Wholesaler-sponsored voluntary chains
C)Retailer-sponsored cooperatives
D)Manufacturer-sponsored retail franchise systems

Question 73

Trend-drinks, a leading manufacturer of fizz drinks, licenses wholesalers (bottlers) that purchase concentrate from Trend-drinks and then carbonate, bottle, promote, and distribute its products to supermarkets and restaurants.This is an example of _____.

A)service franchise systems
B)wholesaler-sponsored voluntary chains
C)retailer-sponsored cooperatives
D)manufacturer-sponsored wholesale franchise systems

Question 74

_____ exist when small, independent retailers form an organization that operates a wholesale facility cooperatively.

A)Retail franchise systems
B)Service franchise systems
C)Manufacturer-sponsored retail franchise systems
D)Retailer-sponsored cooperatives

Question 75

When a retailer owns a manufacturing operation, it is called _____.

A)backward integration
B)selective distribution
C)forward integration
D)horizontal marketing systems

Question 76

Gap manufactures clothing and also owns apparel shops.This is an example of _____.

A)backward integration
B)horizontal marketing systems
C)selective distribution
D)forward integration

Question 77

Which of the following channel designs are chosen for specialty products or services like high-end sports vehicles, exclusive women's jewellery, and yachts because only one retail outlet in a specified geographical area carries these products?

A)intensive distribution
B)selective distribution
C)exclusive distribution
D)dual distribution

Question 78

Jenna's Denim sold its products through only one retail outlet in a specified geographical area.This approach is known as _____.

A)selective distribution
B)exclusive distribution
C)direct distribution
D)intensive distribution

Question 79

_____ systems exist when franchisers license individuals or firms to dispense a service under a trade name and specific guidelines.

A)Retail franchise
B)Service franchise
C)Wholesaler-sponsored
D)Manufacturer-sponsored wholesale franchise

Question 80

Under a _____ marketing system, independent production and distribution firms combine their efforts on a legally agreed upon basis to obtain greater functional economies and marketing impact than they could achieve alone.

A)horizontal
B)functional
C)contractual vertical
D)corporate vertical