Question 1

Nita can visit her local supermarket and buy a dozen roses,a gallon of milk,two birthday cards,a bag of cat litter,and a pan for roasting a turkey.This illustrates how channels of distribution benefit consumers by ________.
A)creating atmospherics
B)creating assortments
C)directing logistics
D)managing knowledge
E)managing relationships

Accepted Answer

Channels of distribution create assortments, which refers to the variety of products that are available to consumers in one place. In this example, Nita is able to purchase multiple items in one location, making the shopping experience more convenient for her.

Question 2

Which type of vertical marketing system (VMS)gives an organization more control over both supply sources and resale of its products,while at the same time increasing the organization's capital investment and its fixed costs?
A)administered
B)contractual
C)conventional
D)corporate
E)horizontal

Accepted Answer

In a corporate VMS, a single entity owns and controls the entire distribution channel, including supply sources and resale of products. This gives the organization the most control and allows for greater economies of scale, but also requires a significant capital investment and fixed costs to establish and maintain the system. Administered VMS relies on the power of one dominant channel member to coordinate the activities of the others, contractual VMS relies on contracts that specify how the members will work together, conventional VMS consists of independent members at different levels of the distribution chain who work together through formal channels, and horizontal VMS involves two or more unrelated companies coming together to exploit a new marketing opportunity. None of these provide the same degree of control and investment as a corporate VMS.

Question 3

Increasingly commonplace today is the appearance of two different franchise chains under the same roof,such as Pizza-Hut and Taco Bell.This is an example of a(n)________ marketing system.
A)administered
B)conventional
C)cooperative
D)vertical
E)horizontal

Accepted Answer

This is an example of a horizontal marketing system, where two independent companies come together to offer complementary products or services under one roof.

Question 4

Which of the following is most likely exclusively distributed?
A)BMW automobiles
B)Diesel blue jeans
C)Bazooka bubble gum
D)Prairie Farms yogurt
E)Coca-Cola

Accepted Answer

BMW automobiles are most likely exclusively distributed through authorized dealerships, which are carefully selected and limited in number by BMW.

Question 5

Burt can visit his local hardware store and buy one 4-inch paint brush and not the case of 24 brushes that the retailer had to buy.This is an example of how the channel of distribution facilitates ________.
A)assortment creation
B)risk taking
C)breaking bulk
D)relationship management
E)logistics

Accepted Answer

Breaking bulk refers to the process of dividing larger quantities of goods into smaller lots in order to meet the needs of buyers. In this scenario, the retailer purchased a case of 24 brushes (larger quantity) and then sold just one brush to Burt (smaller quantity). The channel of distribution (the hardware store) facilitated this process by breaking bulk and making it possible for Burt to purchase only what he needed.

Question 6

Which of the following modes of transportation would most likely be used to quickly haul lettuce from California,where it was grown,to markets in Nevada?
A)trucks
B)railroads
C)air
D)pipeline
E)water

Accepted Answer

Trucks are the most effective mode of transporting perishable goods, such as lettuce, over a relatively short distance. This is because they can be loaded quickly, can travel on roads that lead directly to the markets, and can control the temperature and humidity inside the truck to ensure the freshness and quality of the produce. Railroads, air transport, pipelines, and water transport would either be too slow, not have convenient routes, or not be suitable for transporting perishable goods.

Question 7

Jewels for the Rich and Famous sells very exclusive jewelry with a minimum price of $25,000 to customers around the world.Speed of delivery to distant markets is a must.Management should use ________ as its main carrier.
A)railroads
B)air
C)trucks
D)water
E)pipeline

Accepted Answer

Air transportation is the fastest mode of transportation, which is important for delivering high-end jewelry to distant markets quickly. Additionally, air carriers provide high levels of security and tracking, which is crucial for valuable and exclusive items like those sold by Jewels for the Rich and Famous.

Question 8

Tony Pool Chemical Co.purchased 144 buckets of chlorine tablets over the Internet from Chemical,Inc. ,which then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store.Chemical,Inc.is an example of which of the following?
A)a piggyback marketer
B)a reverse flow marketer
C)a disintermediator
D)a hybrid marketer
E)a wholesaling intermediary

Accepted Answer

Chemical, Inc. acts as a wholesaling intermediary between the manufacturer and Tony Pool Chemical Co.

Question 9

Chewing gum is stocked in many outlets in the same market or community;in fact,it is placed in as many outlets as possible.This is an example of ________ distribution.
A)exclusive
B)selective
C)dual
D)intensive
E)disintermediated

Accepted Answer

Intensive distribution is a strategy that aims to place a product in as many outlets as possible. This is commonly used for products with high demand and low price points, such as chewing gum, where consumers expect the product to be readily available in multiple locations.

Question 10

A brand of variety stores is part of a wholesaler-sponsored voluntary chain.This means these retailers are members of a(n)________ vertical marketing system (VMS).
A)administered
B)conventional
C)corporate
D)horizontal
E)contractual

Accepted Answer

A voluntary chain is a type of contractual VMS. In this system, independent retailers join together to gain buying power and marketing support from a larger wholesaler or franchisor, but they retain ownership and control over their individual stores.

Question 11

Tony Pool Chemical Co.purchased 144 buckets of chlorine tablets over the Internet from Chemical,Inc. ,then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store.Chemical,Inc.took title to the pool chemicals but never actually took possession of them.Chemical,Inc.is an example of a ________.
A)drop shipper
B)truck jobber
C)rack jobber
D)mail-order wholesaler
E)cash-and-carry wholesaler

Accepted Answer

A drop shipper is a type of wholesaler who takes orders from retailers and arranges for the goods to be shipped directly from the manufacturer to the retailer's customer. In this scenario, Chemical, Inc. took title to the pool chemicals but did not take physical possession of them, indicating that they were acting as a drop shipper for Tony Pool Chemical Co.

Question 12

An independent hardware retail store 100 miles from the nearest city of more than 5,000 people but providing needed supplies for area ranchers would most likely buy its plumbing and electrical supplies through a ________.
A)truck jobber
B)commission merchant
C)mail-order wholesaler
D)rack jobber
E)merchandise broker

Accepted Answer

Since the hardware retail store is located 100 miles from the nearest city, it is unlikely to have access to a lot of local suppliers for plumbing and electrical supplies. Therefore, it may opt to buy these supplies through a mail-order wholesaler to ensure they have the necessary inventory to serve the area ranchers. A truck jobber typically sells directly from a truck to retailers, but the remote location may make this option less feasible. Commission merchants typically deal with perishable goods and are unlikely to offer plumbing and electrical supplies. Rack jobbers provide and maintain displays of merchandise in stores, but do not typically supply plumbing and electrical supplies. Merchandise brokers are intermediaries who help connect buyers with suppliers, but may not be the best option for a remote store.

Question 13

Which of the following is an example of a dual distribution system?
A)Walmart locating in several countries
B)J)C.Penney's catalog and retail store sales
C)Avon's door-to-door distribution
D)Starbucks located inside a bookstore
E)a hotel providing guest privileges at a nearby health spa

Accepted Answer

Dual distribution involves a company using two or more distribution channels to reach its target customers. J.C. Penney's catalog and retail store sales are an example of dual distribution because the company is selling its products through both physical retail stores and a catalog.

Question 14

Grayville Rock and Gravel,located in a seaport town,sells rock,gravel,and sand to local markets.It has just been awarded a contract with a company 500 miles down the coast.Management should consider switching from truck to ________ transport to save money.
A)water
B)railroads
C)pipeline
D)air
E)none of the above

Accepted Answer

Since Grayville Rock and Gravel is located in a seaport town and the company they have a contract with is located 500 miles down the coast, switching to water transport would be the most feasible option to save money. It would be faster and more cost-effective to ship the materials by sea than by truck or any other method.

Question 15

You own an independent store in your neighborhood and like to offer fresh seafood in your meat display case.Which type of wholesaler is likely to best serve you?
A)cash-and-carry wholesaler
B)drop shipper
C)rack jobber
D)selling agent
E)commission merchant

Accepted Answer

Cash-and-carry wholesalers typically cater to small retailers by offering a wide range of products, including perishable goods like seafood, without requiring minimum orders or deliveries, making them ideal for an independent store owner looking to stock fresh items.

Question 16

Which of the following is most likely intensively distributed?
A)Olympus digital cameras
B)BMW automobiles
C)Diesel blue jeans
D)Coca-Cola
E)Nike running shoes

Accepted Answer

Coca-Cola is a globally recognized brand and is widely available in grocery stores, vending machines, restaurants, and convenience stores worldwide. It is intensively distributed, meaning it is marketed and sold in many different channels and locations.

Question 17

A business buys candy and gum from many different manufacturers and then resells the items to a variety of different stores.The business is an example of a(n)________.
A)independent intermediary
B)manufacturer-owned intermediary
C)disintermediator
D)reverse marketer
E)brokerage company

Accepted Answer

The answer of A business buys candy and gum from...

Question 18

Which of the following is NOT a channel intermediary?
A)the supplier of the raw materials used to make glass windows
B)the distributor who sells stained glass windows
C)the wholesaler who buys the stained glass window from its creator
D)the showroom that displays glass windows for customers to see
E)the manufacturers' agent who sells the stained glass windows

Accepted Answer

A supplier of raw materials used to make glass windows is not a channel intermediary because they are a part of the supply chain but not a part of the distribution chain. The distributor, wholesaler, showroom, and manufacturer's agent are all examples of channel intermediaries who play a role in distributing the product to the end consumer.

Question 19

At some catalog retailers,employees on roller skates called pickers are handed a printout of the products a customer wants,and then the pickers skate through large warehouses accumulating the desired products into one central location.The pickers are engaged in ________.
A)enterprise resource planning
B)transportation
C)materials handling
D)warehousing
E)inventory control

Accepted Answer

The pickers are engaged in materials handling, which refers to the physical movement and management of goods within a warehouse or distribution center. They are responsible for picking products from their storage locations and bringing them to a central location for packaging and shipment, which requires a high level of skill and efficiency. While enterprise resource planning (A) and inventory control (E) are important aspects of catalog retailing, they are not directly involved in the physical handling of products. Transportation (B) and warehousing (D) are related concepts, but they do not specifically describe the activity of the pickers on roller skates.

Question 20

Tiffany & Co jewelry can only be found in a limited number of intermediaries.This is an example of ________ distribution.
A)exclusive
B)intensive
C)independent
D)quality
E)high-end

Accepted Answer

The fact that Tiffany & Co jewelry can only be found in a limited number of intermediaries indicates that the company utilizes exclusive distribution, where the product is only sold through a limited number of carefully chosen intermediaries in a specific geographic area.

Quiz 15: Deliver Value Through Supply Chain Management, channels of Distribution, and Logistics

Nita can visit her local supermarket and buy a dozen roses,a gallon of milk,two birthday cards,a bag of cat litter,and a pan for roasting a turkey.This illustrates how channels of distribution benefit consumers by ________.

Which type of vertical marketing system (VMS) gives an organization more control over both supply sources and resale of its products,while at the same time increasing the organization's capital investment and its fixed costs?

Increasingly commonplace today is the appearance of two different franchise chains under the same roof,such as Pizza-Hut and Taco Bell.This is an example of a(n) ________ marketing system.

Which of the following is most likely exclusively distributed?

Burt can visit his local hardware store and buy one 4-inch paint brush and not the case of 24 brushes that the retailer had to buy.This is an example of how the channel of distribution facilitates ________.

Which of the following modes of transportation would most likely be used to quickly haul lettuce from California,where it was grown,to markets in Nevada?

Jewels for the Rich and Famous sells very exclusive jewelry with a minimum price of $25,000 to customers around the world.Speed of delivery to distant markets is a must.Management should use ________ as its main carrier.

Tony Pool Chemical Co.purchased 144 buckets of chlorine tablets over the Internet from Chemical,Inc. ,which then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store.Chemical,Inc.is an example of which of the following?

Chewing gum is stocked in many outlets in the same market or community;in fact,it is placed in as many outlets as possible.This is an example of ________ distribution.

A brand of variety stores is part of a wholesaler-sponsored voluntary chain.This means these retailers are members of a(n) ________ vertical marketing system (VMS) .

An independent hardware retail store 100 miles from the nearest city of more than 5,000 people but providing needed supplies for area ranchers would most likely buy its plumbing and electrical supplies through a ________.

Which of the following is an example of a dual distribution system?

Grayville Rock and Gravel,located in a seaport town,sells rock,gravel,and sand to local markets.It has just been awarded a contract with a company 500 miles down the coast.Management should consider switching from truck to ________ transport to save money.

You own an independent store in your neighborhood and like to offer fresh seafood in your meat display case.Which type of wholesaler is likely to best serve you?

Which of the following is most likely intensively distributed?

A business buys candy and gum from many different manufacturers and then resells the items to a variety of different stores.The business is an example of a(n) ________.

Which of the following is NOT a channel intermediary?

At some catalog retailers,employees on roller skates called pickers are handed a printout of the products a customer wants,and then the pickers skate through large warehouses accumulating the desired products into one central location.The pickers are engaged in ________.

Tiffany & Co jewelry can only be found in a limited number of intermediaries.This is an example of ________ distribution.