Question 1

WTA is a manufacturer of very large blades used in energy-reducing wind turbines. What is most likely the most expensive physical distribution function associated with the WTA product?

Accepted Answer

A) Warehousing of the product. 
B) Order processing for each blade. 
C) Inventory management of the product. 
D) Transportation of the product. 
E) Materials handling of the product.

Question 2

Which of the following is least likely to be a factor affecting the selection of marketing channels?

Accepted Answer

A) Customer characteristics 
B) Product attributes 
C) Product packaging 
D) Competition 
E) Environmental forces

Question 3

What links producers to consumers through the purchase and reselling of products or contractual agreements?

Accepted Answer

A) Marketing intermediaries 
B) Distributors 
C) Suppliers 
D) Middle marketers 
E) Marketing channels

Question 4

The United States Postal Service works hard to get priority mail from the sender to the recipient as quickly as possible in order to compete with companies such as UPS and FedEx. The postal service is competing with UPS and FedEx in terms of ___.

Accepted Answer

A) cycle time. 
B) order processing. 
C) turn-around time. 
D) shipping time. 
E) transportation.

Question 5

If a firm decides to contract its physical distribution functions to third parties that have no managerial authority within the marketing channel, it is using

Accepted Answer

A) outsourcing. 
B) sole-sourcing. 
C) logistics. 
D) wholesaling. 
E) distribution services.

Question 6

Josh is a vice-president for 20th Century Fox, a movie production company. He has the responsibility for managing the firm's marketing channels and its relationships with its marketing intermediaries. As a manager of its marketing intermediaries, part of Josh's role is to

Accepted Answer

A) link movie wholesalers to other wholesalers. 
B) link film producers to other middlemen. 
C) always oversee the sale of movies to retailers. 
D) maintain quality of the movie product. 
E) engage in short-term commitments to the least expensive channel member.

Question 7

Select Comfort, a producer of adjustable air mattresses, sells most of its products through direct mail sales and on its website. This channel would be classified as

Accepted Answer

A) direct distribution. 
B) producer, retailer, consumer. 
C) telemarketing. 
D) direct-marketing. 
E) indirect marketing.

Question 8

U.S. banks provide their banking services through brick and mortar sites, by phone, and through on-line access. These various ways in which a customer can access their account information is called ______, while the brick and mortar site would offer the least amount of _____.

Accepted Answer

A) place utility; face utility 
B) place utility; time utility. 
C) time utility; place utility. 
D) possession utility; time utility. 
E) place utility; possession utility.

Question 9

Subway sells its food items through company-owned stores and through franchises. Subway uses ____ as a channel strategy.

Accepted Answer

A) channel extension 
B) intermediary exclusion 
C) broker utilization 
D) dual distribution 
E) channel diversification

Question 10

Assuming everything else equal, the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be

Accepted Answer

A) waterways. 
B) intermodal transportation. 
C) tanker trucks. 
D) railroads. 
E) pipelines.

Question 11

Overall channel goals and individual channel member goals cannot be achieved together without

Accepted Answer

A) conflict. 
B) captains. 
C) leadership. 
D) cooperation. 
E) tying agreements.

Question 12

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.

Question 13

Under what circumstances is selective distribution a desirable level of market coverage?

Accepted Answer

The answer of Under what circumstances is selective distribution a...

Question 14

Luke is a transportation coordinator for Volkswagen of North America. In order to move a large order of vehicles from a plant in Germany to Chicago, he is planning to use both waterways and railroads. The combining and coordinating of these two modes of transportation in order to take advantage of benefits offered by each of the different types of carriers is called

Accepted Answer

A) Intermodal transportation. 
B) Transportation piggybacking. 
C) Containerized movement. 
D) Efficiency transportation 
E) Freight forwarding.

Question 15

Paper towels and trash-can bags are most likely to be distributed through ____ and ____.

Accepted Answer

A) selective distribution; multiple channels 
B) intensive; dual distribution 
C) strategic channel alliances; intensive 
D) exclusive; a single channel 
E) dual distribution; convenience channels

Question 16

Scenario 15.2
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 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 15.2. 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 17

Physical distribution activities may be performed by a producer, wholesaler, retailer or

Accepted Answer

A) not performed at all. 
B) the customer. 
C) investors in any of the previous three. 
D) solely through technology. 
E) they may be outsourced.

Question 18

Eric is concerned about not having enough air conditioning units in inventory during June, July, and August so he keeps extra inventory to guard against stockouts during this critical period. Eric is keeping

Accepted Answer

A) short order lead times. 
B) just-in-time inventory. 
C) a controlled usage rate. 
D) safety stock. 
E) excessive inventory.

Question 19

Tying agreements occur when a

Accepted Answer

A) producer distributes the same product through two or more different channels. 
B) manufacturer forbids an intermediary to carry products of competing manufacturers. 
C) supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well. 
D) producer refuses to deal to channel members that seem unethical or illegitimate. 
E) manufacturer prohibits intermediaries from selling its products outside designated sales territories.

Question 20

In a simple economy of five producers and five consumers, there would be ____ transactions possible without an intermediary and ____ transactions possible with one intermediary.

Accepted Answer

A) ten; twenty-five 
B) thirty; ten 
C) twenty-five; fifteen 
D) sixteen; eight 
E) twenty-five; ten

Exam 15: Marketing Channels and Supply Chain Management