Question 1

A manufacturer is forced to outsource production to a country with lower labour costs because of pressure from the retailer to keep prices down or lose this business. This is referred to as
A) vertical conflict.
B) rationalization.
C) retailer power syndrome.
D) selective distribution.
E) horizontal conflict.

Accepted Answer

The answer of A manufacturer is forced to outsource production...

Question 2

When a direct distribution channel is employed, which channel member usually has control?
A) the agent
B) the customer
C) the retailer
D) the manufacturer
E) the wholesaler

Accepted Answer

In a direct distribution channel, the manufacturer sells directly to the customer, thus retaining control over the distribution process.

Question 3

Manufacturers who supply the Canadian grocery industry are under constant pressure to provide deep discounts to retain distribution and secure shelf space in stores. Which channel member is exerting control in this industry?
A) wholesalers
B) brokers
C) agents
D) retailers
E) manufacturers

Accepted Answer

Retailers exert control in this industry as they have the power to demand discounts from manufacturers to secure shelf space and distribution in their stores.

Question 4

Robert wants to sell his brand of pickles in Loblaws stores. He approached each of the local store managers, but was referred to Loblaws' East Distribution's buyer. Who has control in this type of channel?
A) agent
B) manufacturer
C) buyer
D) wholesaler
E) restrictive channel

Accepted Answer

The answer of Robert wants to sell his brand of...

Question 5

The channel captain or leader of a distribution channel should be the
A) wholesaler.
B) channel member that integrates and coordinates the objectives of all members.
C) retailer.
D) agent or broker.
E) manufacturer.

Accepted Answer

The channel captain or leader of a distribution channel should be the channel member that integrates and coordinates the objectives of all members.

Question 6

Ford and General Motors are examples of companies that achieve cooperation in the channel through
A) cooperative control.
B) manufacturer control.
C) retailer control.
D) consumer control.
E) wholesaler control.

Accepted Answer

The answer of Ford and General Motors are examples of...

Question 7

Which of the following has the role of integrating and coordinating the objectives and policies of the members of the supply channel?
A) agent
B) wholesaler
C) category manager
D) channel captain
E) broker

Accepted Answer

A channel captain is responsible for integrating and coordinating the objectives and policies of the members of the supply channel to ensure smooth operation and alignment.

Question 8

Independent retailers that join together to buy from an agreed upon wholesaler is known as a
A) retail cooperative.
B) voluntary chain.
C) partnership.
D) franchise.
E) wholesale cooperative.

Accepted Answer

The answer of Independent retailers that join together to buy...

Question 9

A vertical marketing system in which the organization with the greatest economic influence has control is called a(n)
A) monopoly.
B) administered VMS.
C) corporate VMS.
D) contractual VMS.
E) economic VMS.

Accepted Answer

An administered VMS is a vertical marketing system where one organization, usually the one with the greatest economic influence, controls the activities of the others without formal ownership.

Question 10

Co-op stores in Western Canada are an example of a(n)
A) horizontal marketing system.
B) administered VMS.
C) contractual VMS.
D) corporate VMS.
E) integrated VMS.

Accepted Answer

Co-op stores in Western Canada are an example of a contractual vertical marketing system (VMS) where independent firms at different levels of production and distribution work together through contracts to achieve greater economies or sales impact than they could achieve alone.

Question 11

An organization like Loblaw Companies Limited, with divisions including Shoppers Drug Mart, Real Canadian Superstore, and Joe Fresh, has significant control at the retail level and consequently purchases a large portion of many of its suppliers' output. This is an example of ________ vertical marketing system.
A) an exclusive
B) an administered
C) a retail cooperative
D) a contractual
E) a corporate

Accepted Answer

An administered vertical marketing system is one where one member of the distribution channel wields enough power to effectively control the activities of the other members without formal agreements. Loblaw Companies Limited, through its significant retail presence, can exert influence over its suppliers, making it an example of an administered system.

Question 12

A manufacturer owns and operates its own retail outlets (e.g., Imperial Oil owns Esso retailers). This is an example of
A) a retail cooperative.
B) horizontal integration.
C) a contractual vertical marketing system.
D) a corporate vertical marketing system.
E) voluntary chain operation.

Accepted Answer

A corporate vertical marketing system is when a single company owns multiple levels of its supply chain, such as manufacturing and retailing.

Question 13

In Canada, Choice Hotels owns Comfort Inn, Comfort Suites, Quality Inn, Sleep Inn, Clarion, Rodeway Inn, and Econo Lodge End. This is an example of
A) a manufacturer-sponsored retailing operation.
B) an administered vertical marketing system.
C) a joint marketing system.
D) a horizontal marketing system.
E) a producer-retailer controlled channel.

Accepted Answer

The answer of In Canada, Choice Hotels owns Comfort Inn,...

Question 14

When consumers physically review a product in a retail store and then search online for the best deal, this is known as
A) showboating.
B) comparison shopping.
C) showrooming.
D) consumer control.
E) retail spillover.

Accepted Answer

Showrooming is the practice where consumers examine products in a physical store but then purchase them online, often at a lower price.

Question 15

Facilitating efficient production and delivery of goods to customers is the goal of
A) the diffusion of innovation.
B) regional marketing management systems.
C) multi-channelling.
D) horizontal conflict.
E) supply chain management.

Accepted Answer

Supply chain management focuses on optimizing the production and delivery processes to ensure goods are efficiently produced and delivered to customers.

Question 16

A sequence of companies that performs activities related to the creation and delivery of a good or service to consumers or business customers is called a
A) business chain.
B) corporate chain.
C) transaction chain.
D) supply chain.
E) commerce chain.

Accepted Answer

A supply chain refers to the entire system of organizations, people, activities, information, and resources involved in creating and delivering a product or service from suppliers to consumers.

Question 17

A manufacturer in Toronto would solve the problem of the high costs of shipping small orders to individual customers in Calgary or Edmonton by using
A) a distribution warehouse system.
B) a piggybacking system.
C) a containerization system.
D) a just-in-time inventory system.
E) a storage warehousing system.

Accepted Answer

A distribution warehouse system allows the manufacturer to ship large quantities to a central location, from which smaller orders can be distributed to individual customers, reducing shipping costs.

Question 18

The planning, implementing, and controlling of the physical flow of materials, finished goods, and related information from points of origin to points of consumption to meet customer requirements at a profit is referred to as
A) horizontal marketing management.
B) customization.
C) contract marketing.
D) vertical marketing management.
E) logistics marketing.

Accepted Answer

Logistics marketing involves the management of the flow of goods, services, and information from the point of origin to the point of consumption to meet customer requirements efficiently and profitably.

Question 19

"The grouping of individual items into an economical shipping quantity that is sealed in a protective container for intermodal transportation"is called
A) economic order quantity.
B) modularization.
C) transportation coordination.
D) piggybacking.
E) containerization.

Accepted Answer

Containerization refers to the practice of grouping individual items into a single, sealed container for efficient and secure intermodal transportation.

Question 20

A marketing manager who wants fast and frequent deliveries to nearby markets should use
A) airways.
B) pipelines.
C) trucks.
D) inland waterways.
E) railroads.

Accepted Answer

Trucks are ideal for fast and frequent deliveries to nearby markets due to their flexibility and ability to navigate local roads efficiently.

Quiz 12: Distribution and Supply Chain Management

A manufacturer is forced to outsource production to a country with lower labour costs because of pressure from the retailer to keep prices down or lose this business. This is referred to as

When a direct distribution channel is employed, which channel member usually has control?

Manufacturers who supply the Canadian grocery industry are under constant pressure to provide deep discounts to retain distribution and secure shelf space in stores. Which channel member is exerting control in this industry?

Robert wants to sell his brand of pickles in Loblaws stores. He approached each of the local store managers, but was referred to Loblaws' East Distribution's buyer. Who has control in this type of channel?

The channel captain or leader of a distribution channel should be the

Ford and General Motors are examples of companies that achieve cooperation in the channel through

Which of the following has the role of integrating and coordinating the objectives and policies of the members of the supply channel?

Independent retailers that join together to buy from an agreed upon wholesaler is known as a

A vertical marketing system in which the organization with the greatest economic influence has control is called a(n)

Co-op stores in Western Canada are an example of a(n)

A manufacturer owns and operates its own retail outlets (e.g., Imperial Oil owns Esso retailers) . This is an example of

In Canada, Choice Hotels owns Comfort Inn, Comfort Suites, Quality Inn, Sleep Inn, Clarion, Rodeway Inn, and Econo Lodge End. This is an example of

When consumers physically review a product in a retail store and then search online for the best deal, this is known as

Facilitating efficient production and delivery of goods to customers is the goal of

A sequence of companies that performs activities related to the creation and delivery of a good or service to consumers or business customers is called a

A manufacturer in Toronto would solve the problem of the high costs of shipping small orders to individual customers in Calgary or Edmonton by using

The planning, implementing, and controlling of the physical flow of materials, finished goods, and related information from points of origin to points of consumption to meet customer requirements at a profit is referred to as

"The grouping of individual items into an economical shipping quantity that is sealed in a protective container for intermodal transportation"is called

A marketing manager who wants fast and frequent deliveries to nearby markets should use