Question 1

Hi! Notes Card Shops has been approached by Novel Teas,a producer of herbal teas and exotic spices.Novel Teas wants to sell its products in the Hi! Notes stores under an administered distribution system.If Hi! Notes accepts Novel Teas proposal,it will perform many marketing services for the tea maker in exchange for a flat fee.

Accepted Answer

The answer of Hi! Notes Card Shops has been approached...

Question 2

Corporate distribution systems consist of several independently owned intermediaries,all of them organized as multinational corporations.

Accepted Answer

The answer of Corporate distribution systems consist of several independently...

Question 3

Denise Shipman works in the marketing department of a major manufacturing firm.She spends a great deal of time trying to coordinate the movement of materials,parts,finished goods,and information through all of the organizations involved in the distribution process.These activities suggest that Denise's job responsibilities focus on supply chain management.

Accepted Answer

Supply chain management involves the coordination of all activities involved in the movement of materials, products, and information through the supply chain from suppliers to customers. Denise's job responsibilities of coordinating the movement of materials, parts, finished goods, and information through different organizations suggest that her focus is on supply chain management.

Question 4

Supply chain management manages the movement of relevant information as well as the movement of parts and finished goods through all organizations involved in the supply chain.

Accepted Answer

This statement is true. Supply chain management is responsible for managing not just the physical movement of goods, but also the flow of information related to those goods throughout the entire supply chain.

Question 5

The process of managing the movement of raw materials,parts,work in progress,finished goods,and related information through all of the organizations involved in the supply chain in a timely manner is called multi-modal management.

Accepted Answer

Multi-modal management refers specifically to the use of multiple modes of transportation (such as truck, rail, air, or sea) to move goods through the supply chain. The process of managing the movement of materials and information is generally referred to as supply chain management.

Question 6

Retailers agree to cooperate with producers in administered distribution systems because the producers provide extensive marketing services to the retailer for free.

Accepted Answer

In administered distribution systems, producers provide marketing services such as promotion, training, and support to retailers for free. In return, the retailers agree to cooperate with the producers by following their guidelines and stocking their products. This partnership benefits both parties by increasing sales, improving brand recognition, and creating loyal customers.

Question 7

Franchise systems,wholesaler-sponsored chains,and retail cooperatives are all forms of contractual distribution systems.

Accepted Answer

Franchise systems, wholesaler-sponsored chains, and retail cooperatives all involve contractual agreements between different parties in the distribution process.

Question 8

Imaginex Toys,Inc.produces toys designed to stimulate the imaginations of young children.In order to control all of the marketing operations,Imaginex owns all of the organizations in the channel of distribution for its toys,including a chain of Imaginex retail stores.The approach taken by Imaginex is known as an administered distribution system.

Accepted Answer

The answer of Imaginex Toys,Inc.produces toys designed to stimulate the...

Question 9

In the Reaching Beyond Our Borders box in the chapter,Coca-Cola found out that more than 80 percent of the developing world's customers buy products from very small entrepreneurs rather than larger stores.

Accepted Answer

The Reaching Beyond Our Borders box in the chapter states that Coca-Cola found out that more than 80 percent of the developing world's customers buy products from very small entrepreneurs rather than larger stores.

Question 10

In an administered distribution system,retail stores manage all of the marketing functions at the retail level.

Accepted Answer

In an administered distribution system, the manufacturer manages all of the marketing functions and the retail stores simply sell the products.

Question 11

The entire collection of organizations that move goods and services from the source of raw materials to the final consumer is referred to as the supply chain.

Accepted Answer

This statement is true. The supply chain includes all the entities involved in the process of producing and delivering goods and services, from raw material extraction to final delivery to the end customer.

Question 12

For a supply chain to be efficient,all of the activities must be performed by organizations that are owned by the manufacturer.

Accepted Answer

A supply chain can involve multiple organizations, such as suppliers, manufacturers, distributors, and retailers. These organizations can be either owned by the manufacturer or operate independently. The key to a efficient supply chain is coordination and collaboration among all organizations involved.

Question 13

One advantage of a franchise system of distribution is that it results in a consistent level of quality and service.

Accepted Answer

Franchise systems typically have strict standards and guidelines that must be followed by all franchisees, resulting in a consistent level of quality and service across all locations.

Question 14

A problem with the corporate distribution system is that the manufacturer has very little control over the operations of the retailers and other marketing intermediaries in the system.

Accepted Answer

The answer of A problem with the corporate distribution system...

Question 15

Wholesaler-sponsored chains consist of stores that are all owned by a single corporation.

Accepted Answer

Wholesaler-sponsored chains consist of stores that are owned by independent retailers who are members of a cooperative or franchise, not by a single corporation.

Question 16

In retail cooperatives,the members of the distribution system are bound to cooperate by a contractual agreement.

Accepted Answer

Retail cooperatives operate through a contractual agreement between members, which binds them to cooperate in the distribution system.

Question 17

Lazee Ladd Furniture obtains materials from several suppliers and uses these materials to produce its goods.It relies on several marketing intermediaries to help it distribute the furniture.Together,Lazee Ladd,its suppliers,and the marketing intermediaries are all part of a supply chain.

Accepted Answer

The statement correctly describes the concept of a supply chain, where multiple entities work together to produce and distribute goods.

Question 18

Because supply chains are so complex,firms have found it difficult to outsource supply chain management.

Accepted Answer

The answer of Because supply chains are so complex,firms have...

Question 19

Even though all of the hardware stores that operate under the name of Hardie's Hardware are independently owned and managed,they have signed an agreement to participate in chain promotions,and cooperate as a unified system of stores.The Hardie's Hardware stores are using a distribution system known as a wholesaler-sponsored chain.

Accepted Answer

The statement accurately describes the situation of the Hardie's Hardware stores as a wholesaler-sponsored chain.

Question 20

Supply chain management not only deals with the movement of materials,parts,and finished goods,it also manages the return of goods and recycling of materials when appropriate.

Accepted Answer

This statement is true. Supply chain management includes managing the entire lifecycle of a product, from sourcing raw materials to disposing of finished goods, including reverse logistics for returns and recycling.

Quiz 15: Distributing Products