Question 1

The key to managing inventory is to balance the costs and benefits of holding larger inventories with the costs and benefits of holding less.

Accepted Answer

This statement is true. It is crucial to find the optimal level of inventory that will minimize costs while still meeting customer demand. Holding too much inventory incurs storage and carrying costs, while holding too little inventory can result in stockouts and lost sales.

Question 2

Distribution systems are relatively consistent from country to country,making it easy for international marketers to design channels.

Accepted Answer

Distribution systems can vary significantly from country to country due to differences in infrastructure, regulations, and cultural norms. Therefore, international marketers need to do extensive research and customization of their distribution channels to effectively reach their target markets.

Question 3

A major role played by intermediaries is to buy large quantities of products from many producers and break them down into the smaller quantities and broader assortments wanted by consumers.

Accepted Answer

Intermediaries like wholesalers, distributors, and retailers often buy products in bulk from producers and then sell them in smaller quantities to consumers. They play an important role in matching the supply and demand of goods and services in the market.

Question 4

When Sherwin Williams Paint Company has single ownership of integrated,successive stages of production and distribution,it has created a corporate VMS.

Accepted Answer

A corporate VMS (Vertical Marketing System) is where a single entity owns and manages various stages of production and distribution, and Sherwin Williams Paint Company fits this description.

Question 5

In creating customer value,it is more important for a company to build relationships with downstream channel partners than with upstream supplier partners.

Accepted Answer

Both upstream and downstream relationships are crucial for creating customer value. Upstream suppliers provide the necessary inputs for products, while downstream partners help deliver products to customers. Balancing both is essential for a successful value chain.

Question 6

The producer and intermediaries need to agree on the terms and responsibilities of each member,including price policies,conditions of sale,territorial rights,and specific services to be performed by each party.

Accepted Answer

This statement is true. In order for the producer and intermediaries to work together effectively, they must establish clear terms and responsibilities for each party involved. This may include agreements on pricing, sales conditions, territorial rights, and the specific services that each member will perform.

Question 7

Disintermediation has occurred when an online marketer takes business away from traditional brick- and- mortar retailers.

Accepted Answer

Disintermediation refers to the process of eliminating intermediaries between the producer and the consumer. In the context of online marketing, disintermediation occurs when consumers bypass traditional brick-and-mortar retailers and purchase products directly from online marketers.

Question 8

When the NewWay Dry Cleaners and The Easy Laundromat in your hometown join forces to follow a new marketing opportunity,they are forming a horizontal marketing system.

Accepted Answer

This is because the two businesses are operating at the same level in the same industry and are collaborating to pursue a common goal or opportunity, which is characteristic of a horizontal marketing system.

Question 9

Disintermediation as a trend is on the rise in U.S.business.

Accepted Answer

Disintermediation, the removal of intermediaries between producers and consumers, is becoming more common in U.S.business. This is due in part to the increasing use of e-commerce and direct-to-consumer models by companies.

Question 10

The term supply chain may be too limited because it takes a make- and- sell view of the business.

Accepted Answer

Supply chain management only focuses on the flow of goods and services from the suppliers to the customers, ignoring the pre-manufacturing stages and the post-consumption stages. This view limited the understanding of the business and may not capture the full picture of the value creation process. Therefore, the term supply chain may be too limited.

Question 11

Generally speaking,a company's marketing channel objectives are influenced by the level of customer service sought,the nature of the company,its products,its marketing intermediaries,its competitors,and the environment.

Accepted Answer

The statement is true, as the company's marketing channel objectives need to align with the factors listed in order to achieve the desired level of customer service and effectively reach target markets.

Question 12

Members of the marketing channel may help a company complete transactions by performing key functions such as promotion and negotiation.

Accepted Answer

Members of the marketing channel, such as retailers and wholesalers, often help companies complete transactions by promoting the products to customers and negotiating with other members of the channel to ensure smooth delivery of goods.

Question 13

Producing a product or service and making it available to buyers requires building relationships not just with customers,but also with key suppliers and resellers in the company's supply chain.

Accepted Answer

Building relationships with key suppliers and resellers is essential for ensuring a smooth and efficient supply chain, which ultimately benefits the company and its customers. Without these relationships, production and delivery of the product or service may be delayed or disrupted, leading to dissatisfied customers and lost revenue.

Question 14

Imaginative distribution systems can be used to gain a competitive advantage.

Accepted Answer

Imaginative distribution systems can be used to differentiate a company's products or services and create a unique selling proposition, thus giving them a competitive advantage. Some examples of imaginative distribution systems include using drones for delivery, implementing subscription-based models, or partnering with other businesses for co-distribution.

Question 15

Always Fresh Produce Company has a route selling to more than 100 groceries,schools,and restaurants at wholesale prices.Last week,the owners opened up a walk- in discounted consumer produce outlet.Always is now using a multichannel distribution system.

Accepted Answer

The statement describes that Always Fresh Produce Company is now using a multichannel distribution system by adding a walk-in discounted consumer produce outlet to their existing route selling to groceries, schools, and restaurants at wholesale prices.

Question 16

In a conventional distribution channel,no channel member has much control over the other members,and no formal means exists for assigning roles and resolving channel conflict.

Accepted Answer

In a conventional distribution channel, each member operates independently, and there is no central authority to enforce rules or resolve conflicts, leading to potential inefficiencies and disputes.

Question 17

Intensive distribution seeks many outlets in a market,while selective distribution seeks only one outlet in a given market area.

Accepted Answer

Intensive distribution seeks to place the product in as many outlets as possible, while selective distribution involves carefully selecting one or a few outlets in a particular market area.

Question 18

Under the strategy of exclusive distribution,a seller allows only certain retail outlets to carry its products.

Accepted Answer

Under exclusive distribution, the seller restricts the distribution of their products to only a select few retail outlets or distributors.

Question 19

When shipping large amounts of bulk products such as forest products,coal,sand,or rock over long distances,a company should choose large trucks because of their low cost per ton shipped.

Accepted Answer

When shipping large amounts of bulk products over long distances, it is often more cost-effective to use trains or barges rather than trucks. These modes of transportation can handle larger quantities of goods and have a lower cost per ton shipped.

Question 20

Due to the success of the Internet,few producers sell through intermediaries today.

Accepted Answer

While the Internet has enabled some producers to sell directly to consumers, many still choose to sell through intermediaries such as retailers, wholesalers, or distributors.

Quiz 12: Marketing Channels: Delivering Customer Value