Question 1

Schwan's Sales Enterprises of Marshall,Minnesota,markets a full line of frozen foods in 49 states and parts of Canada using door-to-door salespeople who sell from its refrigerated trucks.This particular method of distribution is referred to as a(n)

Accepted Answer

A)  indirect channel. 
B)  direct channel. 
C)  facilitated channel. 
D)  customer-service channel. 
E)  truck-jobber channel.

Question 2

practice of organizing the cost-effective flow of raw materials,in-process inventory,finished goods,and related information from point of origin to point of consumption to satisfy customer requirements is referred to as __________.

Accepted Answer

A)  marketing channel oversight 
B)  logistics management 
C)  production management 
D)  manufacturer distribution logistics 
E)  supply-chain management

Question 3

example of __________ utility involves intermediaries shipping goods to buyers of a product.

Accepted Answer

A)  time 
B)  form 
C)  place 
D)  possession 
E)  transactional

Question 4

few years ago,Benetton delivered new styles to its worldwide stores once a month.Today,it replenishes its racks once a week.Getting the fashions to its stores more quickly means that effectively using logistics has increased Benetton's market share by providing

Accepted Answer

A)  larger lots of available inventory for the retailer. 
B)  time and place utility for its customers. 
C)  increased steps in the value proposition. 
D)  technological advances leading to greater customer information. 
E)  increased customer traffic.

Question 5

two types of channel conflict are

Accepted Answer

A)  wholesaler and retailer. 
B)  horizontal and vertical. 
C)  transactional and promotional. 
D)  external and internal. 
E)  producer and consumer.

Question 6

industrial distributor refers to

Accepted Answer

A)  an intermediary that performs a variety of marketing channel functions involving selling, stocking, delivering a full product assortment, and financing. 
B)  an intermediary that maintains its own salesforce and performs all channel functions. 
C)  an intermediary that deals exclusively with the selling, stocking, and delivery of raw materials used by manufacturers in the production of its products. 
D)  an intermediary that deals with a single product line within a single industry. 
E)  an intermediary that performs functions involving selling, stocking, and delivery of industrial goods but is unable to provide financing due to the normally large expenditures.

Question 7

word flow as it relates to the definition of logistics management 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 8

Jaffar (Jeff)Tabrizi is the owner and president of Tabrizi Oriental Rugs located in Toronto,Canada.He personally shops the world over,handpicks and orders authentic and beautiful handmade rugs,which he has shipped to Canada,where he sells them through his brick-and-mortar stores and at his www.tabrizi.com website.In terms of the marketing channel,Jeff is acting as a(n)_________.

Accepted Answer

A)  consumer 
B)  retailer 
C)  wholesaler 
D)  brokerage firm 
E)  middleman

Question 9

marketing channel intermediary that purchases merchandise for resale at retail outlets would be an example of a(n)__________ function.

Accepted Answer

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

Question 10

Which of the following statements regarding supply chains is most accurate?

Accepted Answer

A)  The most common form of supply chain is the collaborative-response efficiency strategy. 
B)  In order for a supply chain to work effectively, key decisions should be made by a third-party logistics provider. 
C)  The longer the supply chain, the greater the economies of scale and the better the profit margin. 
D)  Supply chains should consider the needs of suppliers, provided those needs are consistent with marketing strategies. 
E)  Supply chain managers often need to make trade-offs between efficiency and responsiveness.

Question 11

Cessna is considered the volume leader in the executive-jet market.It has been described as "almost totally vertically integrated." This quote means that Cessna

Accepted Answer

A)  does not fall under the jurisdiction of any federal regulatory agency. 
B)  has eliminated economies of scale. 
C)  combines successive stages of production and distribution under a single ownership. 
D)  has achieved a high level of social responsibility. 
E)  uses outsourcing for all component parts and materials.

Question 12

goals achieved by a firm's marketing strategy determine whether its supply chain needs to be more __________ in meeting customer requirements.

Accepted Answer

A)  cost effective 
B)  broadly expanded 
C)  responsive or efficient 
D)  centrally located 
E)  geographically distributed

Question 13

three basic functions intermediaries perform are

Accepted Answer

A)  accommodating functions, logistical functions, and transactional functions. 
B)  implementation functions, accommodating functions, and contractual functions. 
C)  contractual functions, facilitating functions, and logistical functions. 
D)  transactional functions, logistical functions, and facilitating functions. 
E)  facilitating functions, accommodating functions, and implementation functions.

Question 14

administered vertical marketing system refers to a marketing system

Accepted Answer

A)  that achieves coordination at successive stages of production and distribution by contractual agreements between channel members. 
B)  that achieves coordination at successive stages of production and distribution by cooperation and consensus among all members of the marketing chain. 
C)  that achieves coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership. 
D)  where a channel member (producer, wholesaler, or retailer) is elected to coordinate, direct, and support all other channel members. 
E)  that is run and coordinated completely outside the traditional chain of distribution by a firm that specializes in that industry's specific logistics needs.

Question 15

an episode of the Glee television series,members of the glee club sold home-baked cupcakes at school to raise money.The students selling their cupcakes without any intermediary would be an example of a(n)

Accepted Answer

A)  personalized distribution. 
B)  non-permanent distribution. 
C)  informal channel of distribution. 
D)  direct channel of distribution. 
E)  indirect channel of distribution.

Question 16

four most popular types of franchise arrangements are

Accepted Answer

A)  service-sponsored franchise systems, service-sponsored retail franchise systems, manufacturer-sponsored wholesale franchise systems, and manufacturer-sponsored retail franchise systems. 
B)  service-sponsored retail franchise systems, corporate vertical marketing systems, wholesaler-sponsored voluntary chains, and service-sponsored franchise systems. 
C)  manufacturer-sponsored wholesale franchise systems, service-sponsored retail franchise systems, corporate vertical marketing systems, and wholesaler-sponsored voluntary chains. 
D)  manufacturer-sponsored retail franchise systems, service-sponsored retail franchise systems, corporate vertical marketing systems, and wholesaler-sponsored voluntary chains. 
E)  administered vertical marketing systems, service-sponsored retail franchise systems, corporate vertical marketing systems, and wholesaler-sponsored voluntary chains.

Question 17

arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product is referred to as __________.

Accepted Answer

A)  a strategic channel alliance 
B)  multiple level selling 
C)  parallel distribution 
D)  dual distribution 
E)  multilayered distribution

Question 18

__________ and the Justice Department monitor channel practices that restrain competition,create monopolies,or otherwise represent unfair methods of competition under the provisions of the Clayton Act or the Sherman Act.

Accepted Answer

A)  Consumer Product Safety Commission 
B)  Better Business Bureau 
C)  Federal Trade Commission 
D)  American Marketing Association 
E)  Department of Commerce

Question 19

__________ exists when producers and ultimate consumers deal one-on-one with each other.

Accepted Answer

A)  strategic channel alliance 
B)  direct channel 
C)  marketing channel 
D)  indirect channel 
E)  dual distribution channel

Question 20

distributor refers to

Accepted Answer

A)  intermediaries who perform a variety of distribution functions, including selling, maintaining inventories, extending credit, and so on. 
B)  an intermediary who sells only to manufacturers. 
C)  an intermediary who takes possession of a product, alters it in some way, and then sells it to the ultimate consumer. 
D)  an intermediary who sells to other intermediaries, usually to retailers. 
E)  an intermediary who sells only to other intermediaries.

Exam 15: Managing Marketing Channels and Supply Chains