Question 1

Supply chain and logistics managers play a large part in the manufacture of automobiles. It is estimated that logistics costs account for ________ percent of the retail price you pay for a new car.

Accepted Answer

A)  1 to 2 
B)  4 to 5 
C)  8 to 10 
D)  12 to 15 
E)  25 to 30

Question 2

CPW (Cereals Partners Worldwide) is a ________ designed from the start to be a global business. It joined the cereal manufacturing and marketing capability of General Mills with the distribution clout of Nestlé.

Accepted Answer

A)  dual distribution partnership 
B)  multichannel distribution system 
C)  cooperative distribution channel 
D)  strategic channel alliance 
E)  bilateral trade cooperative

Question 3

An efficient consumer response system refers to

Accepted Answer

A)  an order replenishment system that maintains a 10 percent inventory rate at all times in order to guarantee there will never be stockouts. 
B)  an online virtual inventory storage program that allows firms to enter in minute-by-minute information in order to avoid stockouts due to unforeseen environmental forces. 
C)  a computer program that allows even the smallest manufacturer to manage its inventory system. 
D)  an inventory management system that is designed to make the process of reordering and receiving products as simple as possible. 
E)  an exclusive contractual agreement between delivery services such as FedEx or UPS to deliver expedited orders at a special low rate, regardless of the day and time.

Question 4

Because its customers desire rapid delivery and a wide variety of customizable products, Dell made a conscious decision to use ________ supply chain to meet these requirements.

Accepted Answer

A)  an integrated 
B)  an efficient 
C)  a harmonized 
D)  a responsive 
E)  a multitiered

Question 5

A marketing channel intermediary that purchases merchandise for resale at retail outlets is engaging in ________ function.

Accepted Answer

A)  a transactional 
B)  a logistical 
C)  a facilitating 
D)  a risk-taking 
E)  an assorting

Question 6

Mail-order selling, catalog sales, telemarketing, interactive media, and televised home shopping are all examples of

Accepted Answer

A)  direct to consumer marketing channels. 
B)  indirect marketing channels. 
C)  multimedia marketing channels. 
D)  virtual marketing channels. 
E)  personal selling.

Question 7

Figure 15-2
-Intermediaries perform three basic functions. In Figure 15-2 above, B represents ________ function.

Accepted Answer

A)  a middleman 
B)  a logistical 
C)  a facilitating 
D)  an operational 
E)  a transactional

Question 8

Efficient supply chains

Accepted Answer

A)  can only be achieved with agents being utilized in the marketing channel. 
B)  rely on large geographically dispersed inventory warehouses. 
C)  traditionally use expensive, but faster, modes of transportation. 
D)  may utilize cross-docking. 
E)  emphasize the use of tying arrangements.

Question 9

________ is an intermediary that sells to consumers.

Accepted Answer

A)  An agent 
B)  A retailer 
C)  A wholesaler 
D)  A distributor 
E)  A broker

Question 10

Two sources of horizontal conflict are common, including when

Accepted Answer

A)  a manufacturer decreases its distribution coverage in a geographical area from intensive to selective. 
B)  disagreements arise over how profit margins are distributed among channel members. 
C)  manufacturers believe wholesalers or retailers are not giving their products adequate attention. 
D)  a channel member bypasses another member and sells or buys products direct. 
E)  dual distribution causes conflict between different types of retailers that carry the same brands.

Question 11

A small electronics company has begun production of a line of high-quality, professional studio-model components targeted at audiophiles who shop at thousands of specialty stores across the United States. How should the electronics company best distribute its new products?

Accepted Answer

A)  Use its established indirect marketing channel. 
B)  Distribute directly to mass market consumers. 
C)  Distribute through agents that sell to specialty electronics stores that will feature the new line. 
D)  Sell directly to specialty electronics stores that will feature the new line. 
E)  Establish its own chain of electronics retail stores.

Question 12

In terms of distribution, when marketing channel members are engaged in buying, selling, and risk taking, they are performing ________ functions.

Accepted Answer

A)  logistical 
B)  merchandising 
C)  facilitating 
D)  implementation 
E)  transactional

Question 13

The most important consideration in choosing a marketing channel when buyers have limited knowledge or desire specific data about a product or service is to provide

Accepted Answer

A)  postsale services. 
B)  seller adaptability. 
C)  information. 
D)  convenience. 
E)  presale services.

Question 14

As it relates to the definition of logistics management, flow refers to decisions needed to move

Accepted Answer

A)  raw materials to the producer. 
B)  semi-finished materials to a merchant wholesaler. 
C)  finished products to the distributor. 
D)  finished products directly from the producer to the retailer. 
E)  a product from the source of raw materials to consumption.

Question 15

Figure 15-2
-Intermediaries perform three basic functions. In Figure 15-2 above, Box A represents ________ function.

Accepted Answer

A)  a middleman 
B)  a logistical 
C)  a facilitating 
D)  an operational 
E)  a transactional

Question 16

In an example of ________, Kraft Foods uses the distribution system of Ajinomoto, a major Japanese food company, to market its Maxwell House coffee in Japan.

Accepted Answer

A)  a direct marketing channel 
B)  an industrial distribution system 
C)  a dual distribution system 
D)  a franchising operation 
E)  a strategic channel alliance

Question 17

Rather than compete with large greeting card companies for shelf space in supermarkets, several smaller card companies place their cards in pack-and-ship stores where the customer can mail a card on the spur of the moment, and in racks in car washes where customers who are waiting for their cars can browse and purchase cards. This is an example of which type of marketing channel strategy?

Accepted Answer

A)  a strategic channel alliance 
B)  multichannel distribution 
C)  parallel distribution 
D)  dual distribution 
E)  direct distribution

Question 18

Full-line forcing is a special kind of ________. This practice involves a supplier requiring that a channel member carry its full line of products in order to sell a specific item in the supplier's line.

Accepted Answer

A)  resale restriction 
B)  vertical integration 
C)  exclusive dealing 
D)  refusal to deal 
E)  tying arrangement

Question 19

Which type of distribution lies between the two distribution extremes and means that a firm selects a few retail outlets in a specific geographical area to carry its products?

Accepted Answer

A)  intensive distribution 
B)  extensive distribution 
C)  exclusive distribution 
D)  selective distribution 
E)  concentrated distribution

Question 20

-Channel Sales and Profit Marketing DashboardCharlesburg Furniture sells its furniture through furniture store chains, independent furniture stores, and department store chains, mostly in the southern United States. The company has traditionally allocated its marketing funds for cooperative advertising, in-store displays, and retail sales support on the basis of dollar sales by channel. According to the Marketing Dashboard above, it should consider

Accepted Answer

A)  increasing the marketing budget for furniture store chains. 
B)  focusing more selling efforts on department stores to increase the number of outlets. 
C)  discontinue advertising for furniture store chains. 
D)  allocating a larger proportion of its advertising budget to independent furniture stores. 
E)  reducing distribution in independent furniture stores.

Exam 15: Managing Marketing Channels and Supply Chains