Question 1

Generally,which of the following determine what type of intermediary a manufacturer should use?

Accepted Answer

Product characteristics, buyer consideration, and market conditions are important factors that should be taken into account when deciding what type of intermediary a manufacturer should use. Controllable marketing factors and non-controllable environmental factors may also play a role, but they are not the only determining factors. Additionally, competitive conditions and government regulations may have an impact, but they are not the primary factors that manufacturers consider when choosing intermediaries.

Question 2

Which of the following includes managing the movement of raw materials and parts from their sources to production sites;managing the movement of materials,semi-finished,and finished products within and among plants,warehouses,and distribution centres;as well as the planning and coordinating of the physical distribution of finished goods to intermediaries and final buyers?

Accepted Answer

Logistics includes managing the movement of raw materials and parts from their sources to production sites; managing the movement of materials, semi-finished, and finished products within and among plants, warehouses, and distribution centres; as well as the planning and coordinating of the physical distribution of finished goods to intermediaries and final buyers. Intermodal transportation refers to the use of multiple modes of transportation (e.g. truck, train, ship) for a single shipment, whereas contract logistics involves outsourcing logistics and supply chain management functions to a third-party provider. Materials handling refers specifically to the physical handling and movement of materials within a facility.

Question 3

On the Internet,which of the following allow companies to automate their supply chains while sharing information only with select suppliers?

Accepted Answer

The answer of On the Internet,which of the following allow...

Question 4

Marketing channels perform all of the following logistical activities EXCEPT which one?

Accepted Answer

Risk taking is not a logistical activity, but rather a strategic decision made by the company. Logistics activities involve physical movement and handling of products, such as assorting, grading, and sorting.

Question 5

Transactional channel functions include all of the following activities EXCEPT which one?

Accepted Answer

Physical distribution and sorting are logistical functions, not transactional channel functions.

Question 6

What is breaking bulk at the wholesale level called?

Accepted Answer

Allocating refers to the process of breaking bulk at the wholesale level, where large quantities of goods are divided into smaller lots for distribution to retailers.

Question 7

What do companies selling standardized items of moderate or low value to other companies often use?

Accepted Answer

Industrial distributors specialize in selling standardized items of moderate or low value to other companies. They are often used by manufacturers who want to get their products to a wide range of customers but don't have the time or resources to establish relationships with individual buyers. Agents and brokers are typically used for more complex and high-value sales, while direct marketing organizations and retailers are more geared towards consumer sales.

Question 8

Which of the following is a sorting activity?

Accepted Answer

Assorting is the activity of sorting items or objects based on certain criteria, such as size, color, or type.

Question 9

What is the most typically used channel for industrial products?

Accepted Answer

Industrial products are often sold through the direct channel as it allows manufacturers to have better control over the sales process and maintain closer relationships with their customers.

Question 10

Which of the following describes the process of strategically managing the efficient flow and storage of raw materials,in-process inventory,and finished goods from point of origin to point of consumption?

Accepted Answer

Logistics is the process of managing the flow of goods from the origin to the point of consumption. It involves planning, implementing, and controlling the movement and storage of goods, and it includes activities such as transportation, inventory management, warehousing, and packaging. Contract logistics refers to the outsourcing of logistics activities to a third-party provider, disintermediation refers to the elimination of intermediaries in a supply chain, and channel facilitation refers to the processes involved in making products available to customers through various channels.

Question 11

Which distribution occurs when a producer selects two or more different channels to distribute the same products to target markets?

Accepted Answer

Multiple distribution occurs when a producer chooses two or more different channels to distribute the same product to target markets. This allows the producer to expand their reach and increase their market share. Selective distribution involves a producer choosing some but not all potential distributors, while intensive distribution involves the producer making their product available in as many outlets as possible. Contractual distribution involves a contractual agreement between the producer and the distributor.

Question 12

According to the text,which of the following statements about merchant wholesalers is true?

Accepted Answer

Merchant wholesalers often deal with frequent ordering due to the nature of their business, which involves distributing products to retailers or other businesses that need to maintain inventory levels. This necessitates a system where orders are placed regularly to ensure stock availability.

Question 13

Broad Corporation is a wholesale company that sells health care products to pharmacies,hospitals,rehabilitation centres,and nursing homes.This is an example of which type of distribution?

Accepted Answer

Broad Corporation uses a multiple distribution strategy by selling its products through various types of customers such as pharmacies, hospitals, rehabilitation centers, and nursing homes, rather than focusing on a single distribution channel.

Question 14

What are the three basic functions channel members perform?

Accepted Answer

The three basic functions channel members perform are transactional (buying and selling), logistical (transporting and storing), and facilitating (financing, grading and marketing research). Option A is incorrect because ownership is not a basic function of channel members. Option C is incorrect because it describes the functions of a wholesaler only. Option D is incorrect because it does not cover all basic functions of channel members.

Question 15

Which of the following are examples of facilitating functions performed by wholesaling intermediaries?

Accepted Answer

Facilitating functions performed by wholesaling intermediaries include researching and financing, as these activities help in the smooth operation and efficiency of the distribution process.

Question 16

Which of the following is a channel member typically used by manufacturers as they route their products to consumers?

Accepted Answer

The answer of Which of the following is a channel...

Question 17

Vutek manufactures printing machines used to print high-resolution graphics for billboards,bus cards,banners,and posters.What would you expect Vutek to use for distribution?

Accepted Answer

Vutek manufactures expensive and specialized equipment that requires technical expertise for installation and maintenance. Therefore, a direct channel would be the best choice for them to have better control over the delivery of their product and ensure that their customers receive proper installation and maintenance support directly from Vutek's personnel.

Question 18

The only way Sal Ford in Manitoba can get one of Ian Broan's wind chimes from B.C.is to order it through the mail.Ian Broan,who makes the wind chimes from scrap metal,uses which of the following exclusively?

Accepted Answer

Since Ian Broan sells his wind chimes through mail orders, he uses a direct channel of distribution. This means that the wind chimes go straight from the producer (Ian Broan) to the consumer (Sal Ford) without any intermediaries involved. Therefore, option D is the best choice. The other options (vertical marketing system, reciprocal channel, exclusive distribution system) do not accurately describe Ian Broan's distribution method.

Question 19

When the new father left the maternity ward to find something to eat,he was surprised to see that he could buy McDonald's fast food in the hospital dining room.What is McDonald's utilizing?

Accepted Answer

McDonald's is utilizing a nontraditional channel by selling fast food in a hospital dining room, which is not a typical location for a fast food chain.

Question 20

Fred Farkle just purchased his new home computer on-line at dell.ca.Which marketing channel route was taken for this transaction?

Accepted Answer

A direct channel was used for this transaction as the product was purchased directly from the manufacturer's website (dell.ca) without the involvement of any intermediaries such as retailers, wholesalers, or agents.

Quiz 11: Marketing Channels and Supply Chain Management