Question 1

Explain how distribution channels add value.

Accepted Answer

Distribution channels are composed of various entities that are buying, such as retailers or wholesalers; selling, such as manufacturers or wholesalers; or helping facilitate the exchange, such as transportation companies.Like interactions between people, these relationships can range from close working partnerships to one-time arrangements.In almost all cases though, they occur because the parties want something from one another.
Distribution channels perform a variety of transactional, logistical, and facilitating functions.One important role played by intermediaries is to reduce the number of marketplace contacts, resulting in more efficient systems.Intermediaries also match the requirements of individual consumers to the goods that manufacturers produce; handle physical distribution and storage of goods, making them available for customers to purchase; facilitate searches by both buyers and sellers; and standardize exchange transactions.While channel functions may shift from one intermediary or channel member to another, it's important to recognize that they cannot be eliminated.

Question 2

Maintaining inventory on behalf of a manufacturer is an example of a facilitating function of intermediaries.

Accepted Answer

A) True 
 B)False  False

Question 3

Retailers sell products directly to consumers.

Accepted Answer

A) True 
 B)False  True

Question 4

Josfer Inc. is a beverage manufacturer. It sells beverages through a variety of intermediaries. The firm attempts to place its products in as many outlets as possible.
-Which of the following is an example of a facilitating function that Josfer's supply chain partners might perform?

Accepted Answer

A) They maintain inventory and protect goods. 
B) They purchase goods from Josfer. 
C) They own the finished goods of Josfer. 
D) They transact with potential customers. 
E) They extend credit to Josfer's customers. 
A) They maintain inventory and protect goods. 
B) They purchase goods from Josfer. 
C) They own the finished goods of Josfer. 
D) They transact with potential customers. 
E) They extend credit to Josfer's customers.

Question 5

Briefly explain an exclusive distribution strategy.Provide an example of a company that uses this strategy.

Accepted Answer

Manufacturers might use an exclusive dis

Question 6

Fine Computers Inc.is a manufacturer of personal computers and computer parts.The company sells all its products by allowing customers to select specific products they want and place orders online.This distribution system is an example of which type of distribution?

Accepted Answer

A) Circular 
B) Direct 
C) Parallel 
D) Multiple 
E) Multichannel 
A) Circular 
B) Direct 
C) Parallel 
D) Multiple 
E) Multichannel

Question 7

Josfer Inc. is a beverage manufacturer. It sells beverages through a variety of intermediaries. The firm attempts to place its products in as many outlets as possible.
-Josfer requires its intermediaries to sell goods to other intermediaries, whenever possible.The intermediaries, in this case, are performing which function?

Accepted Answer

A) Transactional 
B) Supportive 
C) Logistical 
D) Facilitating 
E) Collaborating 
A) Transactional 
B) Supportive 
C) Logistical 
D) Facilitating 
E) Collaborating

Question 8

Successful strategic relationships require all the followings, EXCEPT:

Accepted Answer

A) Open communication 
B) Common goals 
C) Mutual trust 
D) Mutual contract 
E) Credible commitments 
A) Open communication 
B) Common goals 
C) Mutual trust 
D) Mutual contract 
E) Credible commitments

Question 9

A key advantage of a radio frequency identification tag is that it:

Accepted Answer

A) helps deliver less merchandise on a more frequent basis. 
B) co-ordinates deliveries to distribution centres. 
C) eliminates the need to handle items individually. 
D) prevents distribution centres from receiving whole truckloads of merchandise. 
E) enables manufacturers and distributors to increase overall inventory. 
A) helps deliver less merchandise on a more frequent basis. 
B) co-ordinates deliveries to distribution centres. 
C) eliminates the need to handle items individually. 
D) prevents distribution centres from receiving whole truckloads of merchandise. 
E) enables manufacturers and distributors to increase overall inventory.

Question 10

Compare and contrast distribution channel, supply chain, and logistics management.

Accepted Answer

A distribution channel is the set of ins

Question 11

A retail store that sells multiple brands helps brands obtain competitive intelligence about the customers.Which of the following intermediary functions does this relate to?

Accepted Answer

A) Physical distribution 
B) Financing 
C) Promotion 
D) Risk taking 
E) Gathering information 
A) Physical distribution 
B) Financing 
C) Promotion 
D) Risk taking 
E) Gathering information

Question 12

Which of the following is NOT an example of a transactional function that intermediaries perform?

Accepted Answer

A) Promote products to attract consumers 
B) Purchasing goods for resale 
C) Transact with potential customers 
D) Own inventory that can become outdated 
E) Sharing competitive intelligence about customers 
A) Promote products to attract consumers 
B) Purchasing goods for resale 
C) Transact with potential customers 
D) Own inventory that can become outdated 
E) Sharing competitive intelligence about customers

Question 13

Logistics was traditionally the responsibility of:

Accepted Answer

A) procurements 
B) suppliers 
C) operations 
D) marketing departments 
E) administrations 
A) procurements 
B) suppliers 
C) operations 
D) marketing departments 
E) administrations

Question 14

Successful strategic relationships develop because both parties:

Accepted Answer

A) only make intangible investments in the relationship. 
B) make credible commitments to the relationship. 
C) have dissimilar goals and varied interests. 
D) share only limited information with one another. 
E) focus on maintaining the relationship for a short period. 
A) only make intangible investments in the relationship. 
B) make credible commitments to the relationship. 
C) have dissimilar goals and varied interests. 
D) share only limited information with one another. 
E) focus on maintaining the relationship for a short period.

Question 15

A supply chain relationship in which members are committed to maintaining long-term interactions and investing in mutually beneficial opportunities is referred to as a(n)_____ relationship.

Accepted Answer

A) informational 
B) strategic 
C) logistical 
D) functional 
E) operational 
A) informational 
B) strategic 
C) logistical 
D) functional 
E) operational

Question 16

Which of the following is one of the important factors for successful strategic relationships?

Accepted Answer

A) Mutual trust 
B) Closed communication 
C) Varied goals 
D) Intangible investments 
E) Exclusive distribution 
A) Mutual trust 
B) Closed communication 
C) Varied goals 
D) Intangible investments 
E) Exclusive distribution

Question 17

Mystic Gifts is a manufacturer of gift articles.The company sells its products to businesses and individual consumers.The company sells directly to most of its industrial buyers by using company salespeople and sells to individual consumers through third-party retail outlets.The company also has an Internet shop to sell gifts.What type of distribution strategy has Mystic Gifts adapted?

Accepted Answer

A) Indirect distribution 
B) Circular distribution 
C) Direct distribution 
D) Personal distribution 
E) Multichannel distribution 
A) Indirect distribution 
B) Circular distribution 
C) Direct distribution 
D) Personal distribution 
E) Multichannel distribution

Question 18

Channel conflict results when supply chain members have similar goals, roles, or rewards.

Accepted Answer

A) True 
 B)False

Question 19

A company with a corporate vertical marketing system is most likely to:

Accepted Answer

A) join with other firms through contracts to obtain economies of scale and co-ordination. 
B) satisfy its own objectives and maximize its own profits, often at the expense of the others. 
C) have less control and cannot dictate the priorities and objectives of the supply chain. 
D) own facilities such as manufacturing plants, warehouse facilities, and retail outlets. 
E) allow another firm to operate a retail outlet, using the format developed by the company. 
A) join with other firms through contracts to obtain economies of scale and co-ordination. 
B) satisfy its own objectives and maximize its own profits, often at the expense of the others. 
C) have less control and cannot dictate the priorities and objectives of the supply chain. 
D) own facilities such as manufacturing plants, warehouse facilities, and retail outlets. 
E) allow another firm to operate a retail outlet, using the format developed by the company.

Question 20

Explain logistics management.

Accepted Answer

Logistics management describes the integ

Explain how distribution channels add value.

Maintaining inventory on behalf of a manufacturer is an example of a facilitating function of intermediaries.

Retailers sell products directly to consumers.

Josfer Inc. is a beverage manufacturer. It sells beverages through a variety of intermediaries. The firm attempts to place its products in as many outlets as possible. -Which of the following is an example of a facilitating function that Josfer's supply chain partners might perform?

Briefly explain an exclusive distribution strategy.Provide an example of a company that uses this strategy.

Fine Computers Inc.is a manufacturer of personal computers and computer parts.The company sells all its products by allowing customers to select specific products they want and place orders online.This distribution system is an example of which type of distribution?

Successful strategic relationships require all the followings, EXCEPT:

A key advantage of a radio frequency identification tag is that it:

Compare and contrast distribution channel, supply chain, and logistics management.

A retail store that sells multiple brands helps brands obtain competitive intelligence about the customers.Which of the following intermediary functions does this relate to?

Which of the following is NOT an example of a transactional function that intermediaries perform?

Logistics was traditionally the responsibility of:

Successful strategic relationships develop because both parties:

A supply chain relationship in which members are committed to maintaining long-term interactions and investing in mutually beneficial opportunities is referred to as a(n)_____ relationship.

Which of the following is one of the important factors for successful strategic relationships?

Channel conflict results when supply chain members have similar goals, roles, or rewards.

A company with a corporate vertical marketing system is most likely to:

Explain logistics management.

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Analyzing the Marketing Environment

Consumer Behaviour

Business-To-Business Marketing

Segmentation, Targeting, and Positioning

Marketing Research

Developing New Products

Product, Branding, and Packaging Decisions

Services: The Intangible Product

Pricing Concepts and Strategies: Establishing Value

Retailing and Omni-Channel Marketing

Integrated Marketing Communications

Advertising, Sales Promotions, and Personal Selling

Social and Mobile Marketing

Global Marketing

Ethics and Socially Responsible Marketing

Filters

Exam 12: Distribution Channels

Explain how distribution channels add value.

Maintaining inventory on behalf of a manufacturer is an example of a facilitating function of intermediaries.

Retailers sell products directly to consumers.

Josfer Inc. is a beverage manufacturer. It sells beverages through a variety of intermediaries. The firm attempts to place its products in as many outlets as possible. -Which of the following is an example of a facilitating function that Josfer's supply chain partners might perform?

Briefly explain an exclusive distribution strategy.Provide an example of a company that uses this strategy.

Fine Computers Inc.is a manufacturer of personal computers and computer parts.The company sells all its products by allowing customers to select specific products they want and place orders online.This distribution system is an example of which type of distribution?

Successful strategic relationships require all the followings, EXCEPT:

A key advantage of a radio frequency identification tag is that it:

Compare and contrast distribution channel, supply chain, and logistics management.

A retail store that sells multiple brands helps brands obtain competitive intelligence about the customers.Which of the following intermediary functions does this relate to?

Which of the following is NOT an example of a transactional function that intermediaries perform?

Logistics was traditionally the responsibility of:

Successful strategic relationships develop because both parties:

A supply chain relationship in which members are committed to maintaining long-term interactions and investing in mutually beneficial opportunities is referred to as a(n)_____ relationship.

Which of the following is one of the important factors for successful strategic relationships?

Channel conflict results when supply chain members have similar goals, roles, or rewards.

A company with a corporate vertical marketing system is most likely to:

Explain logistics management.

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Analyzing the Marketing Environment

Consumer Behaviour

Business-To-Business Marketing

Segmentation, Targeting, and Positioning

Marketing Research

Developing New Products

Product, Branding, and Packaging Decisions

Services: The Intangible Product

Pricing Concepts and Strategies: Establishing Value

Retailing and Omni-Channel Marketing

Integrated Marketing Communications

Advertising, Sales Promotions, and Personal Selling

Social and Mobile Marketing

Global Marketing

Ethics and Socially Responsible Marketing

Filters