Question 1

Select the greatest advantage of horizontal channel integration.

Accepted Answer

A)  The flexibility of the channel is decreased. 
B)  The markets are more heterogeneous. 
C)  The expanded number of units is coordinated. 
D)  Efficiencies in advertising,marketing research,and purchasing are increased. 
E)  Planning and research are increased to cope with increased competition. 
A)  The flexibility of the channel is decreased. 
B)  The markets are more heterogeneous. 
C)  The expanded number of units is coordinated. 
D)  Efficiencies in advertising,marketing research,and purchasing are increased. 
E)  Planning and research are increased to cope with increased competition.

Question 2

A commonly used computerized means of integrating order processing with production,inventory,accounting,and transportation is

Accepted Answer

A)  web-based inventory management. 
B)  just-in-time. 
C)  electronic data interchange. 
D)  universal product codes. 
E)  activity based management. 
A)  web-based inventory management. 
B)  just-in-time. 
C)  electronic data interchange. 
D)  universal product codes. 
E)  activity based management.

Question 3

A single leader who controls and organizes a marketing channel is called a

Accepted Answer

A)  channel champion. 
B)  distribution leader. 
C)  marketing maverick. 
D)  channel captain. 
E)  lead distributor. 
A)  channel champion. 
B)  distribution leader. 
C)  marketing maverick. 
D)  channel captain. 
E)  lead distributor.

Question 4

What is the reorder point if the usage rate is 10 units per day,the order lead time is five days,and the safety stock is 30?

Accepted Answer

A)  50 
B)  150 
C)  80 
D)  200 
E)  400 
A)  50 
B)  150 
C)  80 
D)  200 
E)  400

Question 5

Having products available when the customer wants them is called

Accepted Answer

A)  place utility. 
B)  time utility. 
C)  availability. 
D)  possession utility. 
E)  chronavailability. 
A)  place utility. 
B)  time utility. 
C)  availability. 
D)  possession utility. 
E)  chronavailability.

Question 6

Marketing channels create three types of utility for consumers including

Accepted Answer

A)  place,time,and possession. 
B)  location,availability,and suitability. 
C)  time,location,and promotion. 
D)  retailer,wholesaler,and producer. 
E)  position,possession,and place. 
A)  place,time,and possession. 
B)  location,availability,and suitability. 
C)  time,location,and promotion. 
D)  retailer,wholesaler,and producer. 
E)  position,possession,and place.

Question 7

Marketing channel members are likely to experience misunderstandings,frustration,and poorly coordinated strategies as a result of

Accepted Answer

A)  channel conflict caused by inefficient communication between channel members. 
B)  open communication among the channel members. 
C)  methods of channel coordination designed to reduce ambiguity. 
D)  negotiating territorial issues among regional distributors of a product. 
E)  allowing one member of the channel to take the role of channel captain. 
A)  channel conflict caused by inefficient communication between channel members. 
B)  open communication among the channel members. 
C)  methods of channel coordination designed to reduce ambiguity. 
D)  negotiating territorial issues among regional distributors of a product. 
E)  allowing one member of the channel to take the role of channel captain.

Question 8

For which of the following products would exclusive distribution be most appropriate?

Accepted Answer

A)  Gasoline 
B)  Rolls Royce automobile 
C)  Washing machine 
D)  Laundry detergent 
E)  Moderately priced luggage 
A)  Gasoline 
B)  Rolls Royce automobile 
C)  Washing machine 
D)  Laundry detergent 
E)  Moderately priced luggage

Question 9

Rob Stevens is the head of a company that produces computer software for production scheduling.The firm is small and presently does not generate enough volume to justify hiring a sales force.The firm is probably using ____ to maintain contact with the firms using its products.

Accepted Answer

A)  wholesalers 
B)  brokers 
C)  agents 
D)  merchants 
E)  retailers 
A)  wholesalers 
B)  brokers 
C)  agents 
D)  merchants 
E)  retailers

Question 10

An independent business that takes title to products and carries inventories is a(n)

Accepted Answer

A)  industrial distributor. 
B)  intermediary. 
C)  agency. 
D)  wholesaler. 
E)  producer. 
A)  industrial distributor. 
B)  intermediary. 
C)  agency. 
D)  wholesaler. 
E)  producer.

Question 11

Channel decisions are important to marketers mostly because

Accepted Answer

A)  they are relatively flexible to change quickly. 
B)  consumers value reasonable prices delivered through marketing channels. 
C)  they dictate what promotional strategies companies should use. 
D)  many businesses are marketing intermediaries. 
E)  they involve long-term commitments and affect customer accessibility. 
A)  they are relatively flexible to change quickly. 
B)  consumers value reasonable prices delivered through marketing channels. 
C)  they dictate what promotional strategies companies should use. 
D)  many businesses are marketing intermediaries. 
E)  they involve long-term commitments and affect customer accessibility.

Question 12

Fansteel manufactures parts used in jet engines,which it sells to companies such as Boeing.When shipping products to Boeing,Fansteel seals the parts in 8' $\times$ 8' $\times$ 40' boxes for shipping to decrease loss and damage.This method of materials handling is

Accepted Answer

A)  unit loading. 
B)  containerization. 
C)  freight forwarding. 
D)  unitized shipping. 
E)  bonded packaging. 
A)  unit loading. 
B)  containerization. 
C)  freight forwarding. 
D)  unitized shipping. 
E)  bonded packaging.

Question 13

Use the following to answer the questions.
Star Supplies,Inc.manufactures commercial-grade floor cleaners,such as vacuums and floor polishers.The firm has recently begun manufacturing other janitorial-related product lines,such as paper products and chemical cleaners.Star Supplies distributes its products in two ways.It sells its vacuum,floor polisher,and janitorial supply products to an independent business that takes title to the products and then sells them to various small businesses throughout the region.Also,Star has a list of large businesses that it distributes to directly,on an as-needed basis.These businesses keep very little inventory and purchase janitorial supplies in small quantities.Recently,Star has decided to add new two new service product lines-paper shredding and a uniform rental service.Clint Rodriguez,the marketing manager,is conducting a meeting to discuss the ways in which Star can strategically manage these new businesses.Star has the choice of marketing the paper shredding service to their large business clients,by picking up the paper as they drop off the other janitorial supplies,or they can buy a small paper shredding business and market to both large and small business customers.With regard to the uniform rental service,Star can either pick up and deliver the uniforms to the small businesses themselves,or contract that out to a third party.
-Refer to Scenario 14.2.Star Supplies,Inc.is most likely using which of the following to market its vacuum,floor polisher,and janitorial supplies to its small business customers?

Accepted Answer

A)  Wholesalers 
B)  Retailers 
C)  Merchants 
D)  Industrial distributors 
E)  Manufacturers' agents 
A)  Wholesalers 
B)  Retailers 
C)  Merchants 
D)  Industrial distributors 
E)  Manufacturers' agents

Question 14

Using only some of the available outlets to distribute a product is called

Accepted Answer

A)  selective distribution. 
B)  intensive distribution. 
C)  channel conflict. 
D)  vertical channel integration. 
E)  exclusive distribution. 
A)  selective distribution. 
B)  intensive distribution. 
C)  channel conflict. 
D)  vertical channel integration. 
E)  exclusive distribution.

Question 15

Vertical channel integration

Accepted Answer

A)  results in two or more different management teams for each member of the channel. 
B)  is made possible when a large corporation divests itself of smaller subsidiaries. 
C)  is a shift back to the conventional channel of distribution. 
D)  combines institutions at the same level of operation. 
E)  is made possible by purchasing the operations of a link in the channel. 
A)  results in two or more different management teams for each member of the channel. 
B)  is made possible when a large corporation divests itself of smaller subsidiaries. 
C)  is a shift back to the conventional channel of distribution. 
D)  combines institutions at the same level of operation. 
E)  is made possible by purchasing the operations of a link in the channel.

Question 16

If Nokia decides to make changes in its marketing channels,the strategic significance is that channel decisions are

Accepted Answer

A)  long-term commitments. 
B)  short-term commitments. 
C)  easier to change than prices. 
D)  easier to change than promotion. 
E)  impossible to change. 
A)  long-term commitments. 
B)  short-term commitments. 
C)  easier to change than prices. 
D)  easier to change than promotion. 
E)  impossible to change.

Question 17

At the annual managers' planning conference,Jackie Conrad asks the other managers to consider her proposal to increase the quantity of inventory to a five-week supply in order to increase the percentage of completely filled customer orders from 85 percent to 90 percent.She states that she is willing to trade off the ____ incurred for the positive effect of better customer service.

Accepted Answer

A)  lower response time 
B)  higher warehousing costs 
C)  higher transportation costs 
D)  higher order processing costs 
E)  higher performance levels 
A)  lower response time 
B)  higher warehousing costs 
C)  higher transportation costs 
D)  higher order processing costs 
E)  higher performance levels

Question 18

Compare and contrast the three major levels of market coverage.

Accepted Answer

The three major levels of market coverag

Question 19

Organizational buyers are especially partial to direct marketing channels when

Accepted Answer

A)  they buy cheap materials in large quantities. 
B)  they try a new product for the first time. 
C)  they are filling an order for a very important customer. 
D)  a modified rebuy type of decision is involved. 
E)  expensive and/or complex equipment is involved. 
A)  they buy cheap materials in large quantities. 
B)  they try a new product for the first time. 
C)  they are filling an order for a very important customer. 
D)  a modified rebuy type of decision is involved. 
E)  expensive and/or complex equipment is involved.

Question 20

Discuss the importance of order processing in the physical distribution system.

Accepted Answer

The answer of Discuss the importance of order processing in...

Exam 14: A Supply Chain Management and Marketing Channels

Select the greatest advantage of horizontal channel integration.

A commonly used computerized means of integrating order processing with production,inventory,accounting,and transportation is

A single leader who controls and organizes a marketing channel is called a

What is the reorder point if the usage rate is 10 units per day,the order lead time is five days,and the safety stock is 30?

Having products available when the customer wants them is called

Marketing channels create three types of utility for consumers including

Marketing channel members are likely to experience misunderstandings,frustration,and poorly coordinated strategies as a result of

For which of the following products would exclusive distribution be most appropriate?

Rob Stevens is the head of a company that produces computer software for production scheduling.The firm is small and presently does not generate enough volume to justify hiring a sales force.The firm is probably using ____ to maintain contact with the firms using its products.

An independent business that takes title to products and carries inventories is a(n)

Channel decisions are important to marketers mostly because

Fansteel manufactures parts used in jet engines,which it sells to companies such as Boeing.When shipping products to Boeing,Fansteel seals the parts in 8' ×\times× 8' ×\times× 40' boxes for shipping to decrease loss and damage.This method of materials handling is

Using only some of the available outlets to distribute a product is called

Vertical channel integration

If Nokia decides to make changes in its marketing channels,the strategic significance is that channel decisions are

Compare and contrast the three major levels of market coverage.

Organizational buyers are especially partial to direct marketing channels when

Discuss the importance of order processing in the physical distribution system.

Strategic Marketing Management

Developing and Implementing Marketing Strategies

The Global Marketing Environment

Information for Marketing Decisions

Selecting Target Markets

Consumer Behavior

Business Buying Behavior

International Marketing

Digital Marketing and Social Media

Product Decisions

Strategic Product Management

Services Marketing

Strategic Management of Branding and Packaging

B Supply Chain Management and Marketing Channels

A Retailing,wholesaling and Direct Marketing

B Retailing,wholesaling and Direct Marketing

Integrated Marketing Communications

Advertising and Publicrelations

Personal Selling and Sales Promotion

Strategic Pricing Management

Pricingdecisions

Global Issues,social Responsibility and Marketing

Filters

Fansteel manufactures parts used in jet engines,which it sells to companies such as Boeing.When shipping products to Boeing,Fansteel seals the parts in 8' $\times$ 8' $\times$ 40' boxes for shipping to decrease loss and damage.This method of materials handling is