Question 1

A _ _ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.
A) disintermediation system
B) distribution centre
C) manufacturing chain
D) value delivery network
E) marketing intermediary

Accepted Answer

A value delivery network is a system where a company, its suppliers, distributors, and customers work together to improve the performance of the entire system.

Question 2

is a set of interdependent organizations that help make a product or service of a company available for use by consumers or business users.
A) An upstream channel
B) A marketing channel
C) A research and development channel
D) A raw materials supplier
E) A backward integration chain

Accepted Answer

A marketing channel is a set of interdependent organizations that help make a product or service available for use by consumers or business users.

Question 3

Direct marketing is the longest distribution channel between a producer and consumer.

Accepted Answer

Direct marketing is the shortest distribution channel between a producer and consumer, as it involves selling products or services directly to consumers without the need for intermediaries such as wholesalers or retailers.

Question 4

The authors suggest that the term "supply chain" may be too limited because it takes a "make-and-sell" view of the business. They believe the term is more appropriate because it suggests a "sense-and-respond" view of the market.
A) "upstream chain"
B) "demand chain"
C) "production chain"
D) "market chain"
E) "downstream chain"

Accepted Answer

The term "demand chain" is more appropriate as it emphasizes a "sense-and-respond" approach, focusing on understanding and responding to market demands rather than just producing and selling products.

Question 5

A firm that uses direct marketing would sell its products through .
A) the company website
B) one marketing intermediary
C) multiple intermediaries
D) large wholesalers
E) big box retailers

Accepted Answer

Direct marketing involves selling products directly to consumers without the use of intermediaries, and a company website is a common channel for this approach.

Question 6

Mary Kay Cosmetics and The Pampered Chef sell their products through home and office sales parties, online websites, and social media. Both companies use a(n) _ channel to distribute their offerings.
A) functional
B) direct
C) indirect
D) layered
E) behavioural

Accepted Answer

Both Mary Kay Cosmetics and The Pampered Chef use a direct channel to distribute their products, as they sell directly to consumers through parties, websites, and social media without intermediaries.

Question 7

Introducing intermediaries into a distribution chain increases the number of direct channel transactions between a manufacturer and its customers.

Accepted Answer

Introducing intermediaries into a distribution chain means adding additional middlemen such as wholesalers, distributors, or retailers between the manufacturer and the end customers. This may result in fewer direct channel transactions between the manufacturer and customers as the intermediaries are involved in the sales process.

Question 8

A(n) is considered a marketing intermediary.
A) advertiser
B) customer
C) producer
D) manufacturer
E) wholesaler

Accepted Answer

A wholesaler is a marketing intermediary that buys goods in large quantities from producers and sells them to retailers or other businesses.

Question 9

All the institutions in a channel are connected by several types of flows. Canadian retailers like Sobey's and Loblaws provide key sales information to their wholesalers. This is an example of .
A) promotion flow
B) physical flow
C) flow of ownership
D) payment flow
E) information flow

Accepted Answer

This is an example of information flow, as it involves the transfer of sales data from retailers to wholesalers.

Question 10

Channel members add value by bridging the major time, place, and possession gaps that separate goods and services from those who use them.

Accepted Answer

Channel members facilitate the distribution process by ensuring that products are available at the right time, place, and in the right condition for consumers, thus adding value to the supply chain.

Question 11

In which of the following situations is a producer guaranteed full control over product sales?
A) a direct marketing channel
B) an administered marketing system
C) a corporate marketing channel
D) a horizontal marketing system
E) a contractual distribution channel

Accepted Answer

A direct marketing channel gives the producer full control over product sales because the producer sells directly to the consumer, eliminating the need for intermediaries.

Question 12

Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain?
A) BlueHill
B) Kevin Pinker
C) the consumer
D) SoftStar
E) Abundon

Accepted Answer

Abundon is the marketing intermediary as it acts as a middleman between the companies that create the programs (SoftStar and BlueHill) and the end consumers, facilitating the sale of the programs.

Question 13

Intermediaries play a minimal role in matching supply and demand.

Accepted Answer

Intermediaries often play a significant role in matching supply and demand by facilitating transactions, providing market information, and reducing transaction costs.

Question 14

Producers use marketing intermediaries because they .
A) monitor day-to-day activities during production
B) create greater efficiency in making goods available to target markets
C) supply inexpensive raw materials for manufacturing products
D) form a part of the company's direct channel
E) provide technical expertise for faster production

Accepted Answer

Marketing intermediaries help in distributing products more efficiently by bridging the gap between producers and consumers, thus making goods more accessible to target markets.

Question 15

Which of the following is an example of a horizontal conflict in a distribution channel?
A) a Nike shoe dealer complaining that the shoes provided to the dealer are defective
B) a Walmart executive complaining to a Pepsi executive for not replenishing stocks on time
C) a Gucci executive complaining to Gucci's suppliers of delays in shipping consignments
D) a FedEx agent complaining that a DHL agent is cutting off his business
E) a Ford car dealer complaining that another Ford dealer is underpricing the same models

Accepted Answer

Horizontal conflict occurs between entities at the same level in a distribution channel, such as two dealers of the same brand competing against each other.

Question 16

Which of the following would be considered an upstream partner in a company's supply chain?
A) a firm that exclusively markets a product to other businesses
B) a firm that provides technical expertise in the production of a product
C) a firm that resells a finished product and shares the net sales with the producer
D) a firm that buys products at wholesale cost from the company
E) a firm that markets a product to consumers through social media

Accepted Answer

An upstream partner in a supply chain is typically involved in the earlier stages of production, such as providing raw materials or technical expertise needed for production.

Question 17

Canadian dairy production operates under a national supply management system, which controls the output of the thousands of Canadian dairy farmers. The purpose is to ensure a fair return for the farmers by controlling the output of dairy products to meet demand, thus avoiding any potential surpluses or shortages. This ensures stable and higher prices for the producer. This system also places restrictions on imports. The consequence of this is that _.
A) consumers pay a lower price for dairy products at the store
B) consumers pay a higher price for dairy products at the store
C) more dairy farmers have lower incomes
D) dairy farmers prefer to produce non-dairy products and convert their farms to other types of farming (wheat, corn, pork)
E) none of the above

Accepted Answer

The supply management system leads to higher prices for consumers because it restricts supply to maintain stable and higher prices for producers.

Question 18

Which of the following applies to a marketing intermediary who buys brand name toothpaste from 10 different manufacturers, consolidates offerings, and then resells the various brands to 500 supermarkets throughout Canada?
A) transform the assortments of products made by producers into the assortments wanted by consumers
B) facilitate the production of products without direct customer feedback
C) help a company develop a direct channel selling system
D) increase the amount of work that must be done by producers and consumers
E) buy small quantities of products from producers and break them down into narrow assortments for customers

Accepted Answer

The marketing intermediary consolidates products from multiple manufacturers and provides a variety of choices to supermarkets, transforming the producers' assortments into those desired by consumers.

Question 19

What are the different functions of the members of a marketing channel?

Accepted Answer

The answer of What are the different functions of the...

Question 20

Using , a company uses one or more levels of intermediaries to help bring its products to final buyers. Examples: most of the things you buy-everything from toothpaste to cameras to cars.
A) direct marketing channels
B) wholesaler marketing channels
C) retailer marketing systems
D) indirect marketing channels
E) social media

Accepted Answer

Indirect marketing channels involve one or more intermediaries, such as wholesalers or retailers, to help bring products to final buyers.

Quiz 10: Marketing Channels: Delivering Customer Value

A _ _ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.

is a set of interdependent organizations that help make a product or service of a company available for use by consumers or business users.

Direct marketing is the longest distribution channel between a producer and consumer.

The authors suggest that the term "supply chain" may be too limited because it takes a "make-and-sell" view of the business. They believe the term is more appropriate because it suggests a "sense-and-respond" view of the market.

A firm that uses direct marketing would sell its products through .

Mary Kay Cosmetics and The Pampered Chef sell their products through home and office sales parties, online websites, and social media. Both companies use a(n) _ channel to distribute their offerings.

Introducing intermediaries into a distribution chain increases the number of direct channel transactions between a manufacturer and its customers.

A(n) is considered a marketing intermediary.

All the institutions in a channel are connected by several types of flows. Canadian retailers like Sobey's and Loblaws provide key sales information to their wholesalers. This is an example of .

Channel members add value by bridging the major time, place, and possession gaps that separate goods and services from those who use them.

In which of the following situations is a producer guaranteed full control over product sales?

Intermediaries play a minimal role in matching supply and demand.

Producers use marketing intermediaries because they .

Which of the following is an example of a horizontal conflict in a distribution channel?

Which of the following would be considered an upstream partner in a company's supply chain?

Which of the following applies to a marketing intermediary who buys brand name toothpaste from 10 different manufacturers, consolidates offerings, and then resells the various brands to 500 supermarkets throughout Canada?

What are the different functions of the members of a marketing channel?

Using , a company uses one or more levels of intermediaries to help bring its products to final buyers. Examples: most of the things you buy-everything from toothpaste to cameras to cars.