Question 1

What is the primary determinant in deciding how materials will be handled?

Accepted Answer

A)  Unit loading 
B)  Containerization 
C)  Customer preference 
D)  Cost reduction 
E)  Product characteristics

Question 2

Scenario 14.2 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 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

Question 3

Scenario 14.1 Use the following to answer the questions.
Liz Claiborne, Inc. markets several different brands, under their own Claiborne name label, as well as others. Their primary brands, such as Liz Claiborne, Liz & Co, and DKNY, are sold to wholesalers. These brands are then available through retail department stores such as Kohl's and Macy's. Their wholesale-based brands division is positioned as customer-focused and cost-efficient. Their premium brands division includes labels such as Kate Spade, Juicy Couture, and Mexx. These premium brands are sold through stores that the Claiborne company owns.
Refer to Scenario 14.1. If Liz Claiborne were to distribute their Kate Spade brand through its company-owned stores and through wholesalers, to major department stores, then Liz Claiborne would be using ____ distribution.

Accepted Answer

A)  intensive 
B)  vertical 
C)  horizontal 
D)  multichannel 
E)  exclusive

Question 4

According to the text, physical distribution cost tradeoffs enable firms to

Accepted Answer

A)  resolve pricing conflicts among channel partners. 
B)  minimize risk during test marketing of new products. 
C)  reduce costs of all distribution functions simultaneously. 
D)  resolve pricing conflicts within industry sectors. 
E)  utilize resources for greatest cost-effectiveness.

Question 5

When channel members are linked by legal agreements that specify each member's rights and responsibilities, ____ exists.

Accepted Answer

A)  horizontal channel integration 
B)  an administered VMS 
C)  a corporate VMS 
D)  a channel captain 
E)  a contractual VMS

Question 6

Which of the following includes activities such as manufacturing, research, sales, advertising, and shipping, as well as involving all entities that facilitate product distribution?

Accepted Answer

A)  Channel management 
B)  Inventory management 
C)  Supply-chain management 
D)  Logistics management 
E)  Supply management

Question 7

Companies that sell products with high profit margins are more likely to use _______________. Companies selling products whose sales are directly related to product availability will most likely use ______________.

Accepted Answer

A)  extensive distribution; intensive distribution 
B)  extensive distributive; selective distribution 
C)  selective distribution; intensive distribution 
D)  selective distribution; extensive distribution 
E)  intensive distribution; extensive distribution

Question 8

Public warehouses are business organizations whose primary activity is providing storage and related physical distribution facilities on a rental basis to government organizations.

Accepted Answer

A) True 
 B)False

Question 9

Channel conflict is necessary to facilitate efficient performance within the channel.

Accepted Answer

A) True 
 B)False

Question 10

Scenario 14.1 Use the following to answer the questions.
Liz Claiborne, Inc. markets several different brands, under their own Claiborne name label, as well as others. Their primary brands, such as Liz Claiborne, Liz & Co, and DKNY, are sold to wholesalers. These brands are then available through retail department stores such as Kohl's and Macy's. Their wholesale-based brands division is positioned as customer-focused and cost-efficient. Their premium brands division includes labels such as Kate Spade, Juicy Couture, and Mexx. These premium brands are sold through stores that the Claiborne company owns.
Refer to Scenario 14.1. Which of the following is most likely the primary factor Liz Claiborne, Inc. used when selecting the marketing channel for its Juicy Couture brand?

Accepted Answer

A)  Characteristics of the intermediaries 
B)  Product attributes 
C)  Type of organization 
D)  Marketing environmental forces 
E)  Competition

Question 11

Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) ____ channel.

Accepted Answer

A)  producer-to-business buyer 
B)  producer-to-industrial-distributor-to-business buyer 
C)  producer-to-agent-to-business buyer 
D)  equipment 
E)  consumer

Question 12

If a microchip in a computer at the Pentagon failed, which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from New York City?

Accepted Answer

A)  Government vehicle 
B)  Airway 
C)  Waterway 
D)  Truck 
E)  Railroad

Question 13

Joseph works as a manager at a large manufacturing firm known for its sustainability. He works in the procurement area. Joseph is in charge of sourcing all the necessary resources, goods, and services from their suppliers to support supply-chain members. More specifically, he is in charge of managing the processes and activities that provide value all the way from the raw materials to the final customer. A nationwide recycling program encourages consumers to send used products they no longer want back to the company. Joseph works with others in the firm to redesign these products for other uses so they can be resold. Joseph is engaging in

Accepted Answer

A)  order processing. 
B)  inventory management. 
C)  channel management. 
D)  logistics management. 
E)  supply management.

Question 14

Exclusive dealing occurs when a supplier stipulates that a channel member must purchase additional products besides the one it wants.

Accepted Answer

A) True 
 B)False

Question 15

Johnson Controls hires a consultant to assess its materials handling procedures. The consultant recommends the implementation of ____ if they want easier movement of items between internal destinations in the warehouse.

Accepted Answer

A)  unit loading 
B)  piggybacking 
C)  containerization 
D)  inventory management 
E)  priority transportation

Question 16

Because costs for small shipments (under 500 pounds) are sharply higher than costs for full loads in railroad cars and trucks, firms share costs and services by consolidating shipments.

Accepted Answer

A) True 
 B)False

Question 17

Eliminating a wholesaler from a marketing channel will

Accepted Answer

A)  cut costs and lower prices. 
B)  not eliminate the functions performed by that wholesaler. 
C)  eliminate the functions performed by that wholesaler. 
D)  lead to lower costs but higher prices. 
E)  reduce channel conflict.

Question 18

The services or responsibilities provided by some intermediaries can be eliminated effectively without causing an increase in the services or responsibilities provided by other intermediaries.

Accepted Answer

A) True 
 B)False

Question 19

Declan is in charge of ensuring the successful transportation and storage of his company's products. He monitors the products from the time they leave the factory to when they are dropped off at retailers and purchased by customers. Declan's job title would most likely be

Accepted Answer

A)  inventory manager. 
B)  logistics manager. 
C)  procurement manager. 
D)  supply-chain manager. 
E)  operations manager.

Question 20

Suppose that Jackson Distributing has been told that it cannot carry the beers made by Anheuser-Busch because it also carries the products of the competitor, Miller Brewing. Jackson is then told that it must drop the Miller brands in order to carry the Anheuser-Busch products. If this were true, Anheuser-Busch would be engaging in which of the following channel management practices?

Accepted Answer

A)  Exclusive dealing 
B)  Multichannel distribution 
C)  Tying contacts 
D)  Refusal to deal 
E)  Restricted sales territories

Exam 14: Marketing Channels and Supply Chain Management

What is the primary determinant in deciding how materials will be handled?

According to the text, physical distribution cost tradeoffs enable firms to

When channel members are linked by legal agreements that specify each member's rights and responsibilities, ____ exists.

Which of the following includes activities such as manufacturing, research, sales, advertising, and shipping, as well as involving all entities that facilitate product distribution?

Companies that sell products with high profit margins are more likely to use _. Companies selling products whose sales are directly related to product availability will most likely use .

Public warehouses are business organizations whose primary activity is providing storage and related physical distribution facilities on a rental basis to government organizations.

Channel conflict is necessary to facilitate efficient performance within the channel.

Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) ____ channel.

If a microchip in a computer at the Pentagon failed, which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from New York City?

Exclusive dealing occurs when a supplier stipulates that a channel member must purchase additional products besides the one it wants.

Johnson Controls hires a consultant to assess its materials handling procedures. The consultant recommends the implementation of ____ if they want easier movement of items between internal destinations in the warehouse.

Because costs for small shipments (under 500 pounds) are sharply higher than costs for full loads in railroad cars and trucks, firms share costs and services by consolidating shipments.

Eliminating a wholesaler from a marketing channel will

The services or responsibilities provided by some intermediaries can be eliminated effectively without causing an increase in the services or responsibilities provided by other intermediaries.

Declan is in charge of ensuring the successful transportation and storage of his company's products. He monitors the products from the time they leave the factory to when they are dropped off at retailers and purchased by customers. Declan's job title would most likely be