Question 1

A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members.Influence can take four forms,one of which is

Accepted Answer

A) stakeholder position. 
B) familial ties to other channel members. 
C) expertise. 
D) longevity in the industry. 
E) geographic proximity to the manufacturing plant.

Question 2

Cross-docking refers to

Accepted Answer

A) the 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. 
B) the practice of storing finished goods in the same trucks from which they will be dispensed and sold to consumers. 
C) using large cargo containers that will be loaded to trucks and then to barges or ships that sail from port to port and then unloaded back to trucks for final transport and delivery. 
D) a practice that involves unloading products from suppliers,sorting products for individual stores,and quickly reloading products onto trucks for a particular store. 
E) the practice of transporting retail goods from a centralized warehouse to the loading docks of regionally located satellite warehouses.

Question 3

Buyers are interested in having numerous competing and complementary items from which to choose.The buyer requirement for __________ is satisfied through the breadth and depth of products and brands that intermediaries carry.

Accepted Answer

A) information 
B) convenience 
C) variety 
D) pre- or postsale services 
E) adaptability

Question 4

Which of the channels shown in the UMD15: Channel Sales and Profit Marketing Dashboard above represents the LEAST profit to the manufacturer?

Accepted Answer

A) furniture store chains 
B) independent furniture stores 
C) department store chains 
D) mass merchandisers 
E) warehouse clubs

Question 5

Several artists in Charleston,South Carolina,show and sell their work in an art gallery downtown.The gallery is owned by an art lover who does not buy the paintings but displays those from other artists.She only collects a percentage on each piece sold.In terms of the marketing channel,the gallery is a(n)__________.

Accepted Answer

A) ultimate consumer 
B) manufacturer 
C) wholesaler 
D) agent 
E) dealer

Question 6

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

Accepted Answer

A) integrated 
B) efficient 
C) harmonized 
D) responsive 
E) multi-tiered

Question 7

Two students,Nick and Sean,were studying for an upcoming exam in their introduction to marketing course.While studying the chapter on marketing channels and wholesalers,Nick made the following statement: "If it weren't for wholesalers and other intermediaries in the channel of distribution,the products we buy would cost a lot less!" After contemplating Nick's statement,Sean said,"Wait a minute.We learned in class that channel intermediaries actually make marketing more efficient by making transactions easier." Sean's statement refers to

Accepted Answer

A) channel intermediary development. 
B) the relationships between channel intermediaries themselves. 
C) the value created by channel intermediaries. 
D) channel intermediary promotional efforts. 
E) an inaccurate statement by Lee;Nick was correct.

Question 8

Which statement regarding efficient supply chains is most accurate?

Accepted Answer

A) Efficient supply chains use common platforms and common components across several products. 
B) Efficient supply chains rely on large geographically dispersed inventory warehouses. 
C) Efficient supply chains traditionally use expensive,but faster,modes of transportation. 
D) Efficient supply chains may utilize cross-docking. 
E) Efficient supply chains emphasize economies of scale by increasing the variety of system configurations offered.

Question 9

A __________ is essentially a sequence of linked suppliers and customers in which every customer is,in turn,a supplier to another customer until a finished product reaches the ultimate consumer or industrial user.

Accepted Answer

A) logistical flow 
B) demand chain 
C) supplier-customer alliance 
D) supply chain 
E) supply pipeline

Question 10

Assembling and protecting products at a convenient location to offer better customer service would be an example of a __________ function.

Accepted Answer

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

Question 11

Which type of distribution density does Piaget use when the maker of fine jewelry and watches distributes its products through a single retailers in select cities in the United States?

Accepted Answer

A) intensive distribution 
B) extensive distribution 
C) selective distribution 
D) exclusive distribution 
E) private label distribution

Question 12

In logistics,a two-way link between buyer and seller that helps in monitoring service and anticipating future needs is referred to as

Accepted Answer

A) inventory management. 
B) dependability. 
C) communication. 
D) reverse logistics. 
E) accountability.

Question 13

A middleman refers to

Accepted Answer

A) a person or firm whose sole responsibility is bringing a buyer to the last link in the distribution chain. 
B) a person or firm whose sole responsibility is to find distributors for a manufacturer's products. 
C) any intermediary between a manufacturer and end-user markets. 
D) a person or firm that takes possession of a product and in some way alters it before passing it on to ultimate consumers. 
E) an intermediary who sells to ultimate consumers.

Question 14

In the automobile industry,many companies use a __________,whereby a manufacturer licenses dealers to sell its cars subject to various sales and service conditions.

Accepted Answer

A) service-sponsored producer franchise system 
B) service-sponsored retail franchise system 
C) manufacturer-sponsored wholesale franchise system 
D) manufacturer-sponsored retail franchise system 
E) administered vertical marketing system

Question 15

In some instances,firms pair multiple channels with a multibrand strategy.The purpose of this strategy would be to __________ of the firm's family brand and differentiate its marketing channels.

Accepted Answer

A) create greater perceived value 
B) maximize channel profits 
C) minimize cannibalization 
D) generate awareness 
E) create a "backup" channel

Question 16

The __________ 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 17

Figure 15-4 above depicts the four most common marketing channels for business products and services.Channel "A" would be an appropriate marketing channel for __________.

Accepted Answer

A) Boeing aircraft 
B) Caterpillar lift trucks 
C) John Deere tractors 
D) Western Fence fencing systems 
E) Marathon electrical motors

Question 18

Figure 15-10 above indicates that supply chain managers must balance total logistics cost factors against customer service factors.The six total logistics cost factors ("A," "B," "C," "D," "E," and "F")include all of the following EXCEPT:

Accepted Answer

A) order processing. 
B) materials handling and warehousing. 
C) time. 
D) inventory. 
E) transportation.

Question 19

Hewlett-Packard is taking a proactive role in reducing the amount of electronic merchandise dumped in landfills by using __________ to reclaim recyclable and reusable materials.

Accepted Answer

A) reverse materials handling 
B) reverse logistics 
C) cause-related marketing 
D) vendor-managed inventory 
E) materials transformation

Question 20

When marketing channel members are engaged in assorting,storing,sorting,and transporting products and services,they are performing __________ functions.

Accepted Answer

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

Exam 15: Managing Marketing Channels and Supply Chains