Question 1

Which of the following is an advantage of using an industrial distributor?

Accepted Answer

A) These firms are easy to control because they work directly for the producers. 
B) Inventory holding costs are minimized because they can store inventory very cheaply. 
C) They are closer geographically to all of the producers' customers. 
D) They possess a high level of technical knowledge about their products. 
E) They help reduce a producer's financial burdens by extending credit to customers.

Question 2

Caruthers Paint Manufacturing Company buys the chemicals it needs for producing its products from a chemical producer, Roth Chemicals. In this instance, the chemicals are being distributed to Caruthers through which of the following types of channels?

Accepted Answer

A) Industrial distributor 
B) Direct distribution 
C) Retail 
D) Wholesaler-sponsored 
E) Producer

Question 3

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.

Question 4

Long-term partnerships among channel members working together to reduce inefficiencies, costs, and redundancies in the entire marketing channel is called

Accepted Answer

A) supply chain management. 
B) vertical channel integration. 
C) industrial management. 
D) industrial distribution. 
E) marketing management.

Question 5

Garcia Wholesale Plumbing has seen its sales in the Southeast triple in the past two years. Materials handling director Barb Peterson announces plans to the board for an Atlanta facility that will combine shipments received from Garcia's 25 suppliers for nearly immediate shipment to plumbing stores and contractors in the region. This new facility would be best classified as which of the following?

Accepted Answer

A) Sales office 
B) Public warehouse 
C) Field public warehouse 
D) Distribution center 
E) Bonded warehouse

Question 6

Analyze the total-cost approach to physical distribution.

Accepted Answer

The answer of Analyze the total-cost approach to physical distribution....

Question 7

Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks' coffee drink, Frappucino, to grocery stores and other retail outlets. This is an example of

Accepted Answer

A) a strategic channel alliance. 
B) exclusive distribution. 
C) dual distribution. 
D) horizontal channel integration. 
E) channel leadership.

Question 8

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.

Question 9

Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following channels?

Accepted Answer

A) Producer, industrial distributors, retailers, consumers 
B) Producer, consumers 
C) Producer, wholesalers, retailers, consumers 
D) Producer, retailers, consumers 
E) Producer, agents, wholesalers, retailers, consumers

Question 10

The driving force behind marketing channel decisions should be

Accepted Answer

A) convenience. 
B) cost reduction. 
C) environmental concerns. 
D) customer satisfaction. 
E) quality.

Question 11

Explain the legal ramifications of attempts to control distribution functions.

Accepted Answer

The answer of Explain the legal ramifications of attempts to...

Question 12

The Limited, which produces and retails clothing products in a coordinated channel, is an example of a(n)

Accepted Answer

A) administered vertical marketing system. 
B) conventional marketing channel. 
C) channel network. 
D) contractual marketing channel. 
E) corporate vertical marketing system.

Question 13

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 14

Managers and consultants at Colgate-Palmolive are meeting to discuss better ways to package its products to reduce damage and make loading more efficient. The primary function they are trying to improve is

Accepted Answer

A) warehousing. 
B) inventory management. 
C) materials handling. 
D) cycle time. 
E) containerization.

Question 15

Order handling involves all of the following activities except that the

Accepted Answer

A) credit department approves the purchase. 
B) order is transmitted to the warehouse. 
C) availability of product is verified. 
D) warehouse is instructed to fill the order. 
E) customer places a purchase order.

Question 16

Discuss how the strategic importance of physical distribution is evident in each element of the marketing mix.

Accepted Answer

The answer of Discuss how the strategic importance of physical...

Question 17

All of the following are concepts used in a just-in-time inventory management system except

Accepted Answer

A) supplies arrive just as they are needed. 
B) safety stock is kept to reduce stockouts. 
C) much waste is eliminated. 
D) purchases are made in small quantities. 
E) purchases are made frequently.

Question 18

In which of the following situations is dual distribution likely to be determined illegal?

Accepted Answer

A) A manufacturer sells its product online and through independent and company-owned retail outlets. 
B) A manufacturer opens its own retail outlets across the country and sells its entire line of products. 
C) A producer uses company outlets to dominate independent retailers that carry its products. 
D) A producer sells its products both to wholesalers who deal with small and medium-sized retailers and directly to retailers. 
E) A producer charges higher prices at its company-owned retail outlets than independent retailers charge for the same products.

Question 19

The marketing channel of producer-retailer-consumer is most likely to be used by producers of which of the following products?

Accepted Answer

A) Smart phones 
B) Tobacco 
C) Automobiles 
D) Apples and oranges 
E) Wedding photographs

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 15: Marketing Channels and Supply Chain Management