39) Facilitating function activities include
A) buying and selling.
B) assorting, sorting, and storing.
C) financing, grading, and marketing information and research.
D) risk taking.
E) transportation.
40) In terms of distribution, when marketing channel members are engaged in financing, grading,
and marketing information and research, they are performing the ________ function.
A) logistical
B) transformational
C) implementing
D) facilitating
E) transactional
41) Intermediaries perform facilitating function activities, which assist producers in making
products and services more attractive to buyers. These activities include
A) producing, assembling, and distributing.
B) transportation and distribution.
C) buying, selling, and risk-taking.
D) assorting, sorting, and storing.
E) financing, grading, and marketing information and research.
42) Extending credit to customers is an example of a ________ function.
A) transactional
B) logistical
C) facilitating
D) buying
E) risk-taking
43) Inspecting, testing, or judging products and assigning them quality grades is an example of a
________ function.
A) transactional
B) logistical
C) storing
D) facilitating
E) risk-taking
44) Southern pine lumber is visually inspected and placed into categories like “Select Structural,”
“No. 1,” and “No.2.” These categories reflect characteristics of the wood and are related to its
suggested uses. This rating system is most closely related to which facilitating function activity
performed by marketing intermediaries?
A) grading
B) sorting
C) risk-taking
D) marketing
E) assorting
45) Though uninformed consumers focus largely on the extra markups from channel members,
the four utilities each provide opportunities for
A) channel intermediary development.
B) relationship management between channel intermediaries themselves.
C) value created by channel intermediaries.
D) channel intermediary promotional efforts.
E) recouping cost overruns.
46) Marketing channels help create value for consumers through four utilities. These utilities are
A) product, price, promotion, and place.
B) form, function, risk-taking, and selling.
C) time, place, form, and possession.
D) transactional, logistical, facilitating, and marketing.
E) buying, selling, storing, and transporting.
47) A snack vending machine located in a university building creates both ________ utility.
A) time and place
B) place and form
C) form and creation
D) possession and form
E) application and place
48) Having a product or service where consumers want it is ________ utility.
A) form
B) place
C) time
D) possession
E) location
49) Enhancing a product or service to make it more appealing to buyers is ________ utility.
A) time
B) place
C) possession
D) form
E) transactional
50) A textile artist can buy fabric, thread, and batting, create an heirloom quilt, and then sell the
finished work to customers in a kiosk decorated with some of the quilts produced to entice
customers who shop at the local mall. By designing the quilts and kiosk with aesthetic value, the
artist creates ________ utility.
A) application
B) possession
C) time
D) place
E) form
51) An example of ________ utility involves intermediaries shipping goods to buyers of a
product.
A) time
B) form
C) place
D) possession
E) transactional
52) As the number of intermediaries between a producer and buyer increases, the channel is
viewed as increasing in
A) variety.
B) scope.
C) depth.
D) scale.
E) length.
53) A(n) ________ exists when producers and ultimate consumers deal one-on-one with each
other.
A) strategic channel alliance
B) direct channel
C) horizontal marketing exchange
D) indirect channel
E) dual distribution channel
54) A direct channel exists when
A) producers and end users deal with each other on a one-on-one basis.
B) the producer and consumer perform numerous channel functions.
C) a firm reaches different buyers by employing two or more different types of channels for the
same basic product.
D) an intermediary sells to other intermediaries, usually to retailers in consumer markets.
E) an agent or broker brings ultimate consumers to manufacturers.
55) In a direct channel, all channel functions are performed by
A) retailers.
B) wholesalers.
C) producers.
D) brokers and agents.
E) middlemen.
56) When Dell Computer sells made-to-order PCs to customers online via its website, it is an
example of which type of marketing channel?
A) indirect channel
B) strategic channel alliance
C) consumer channel
D) dual distributive channel
E) direct channel
57) The Schwan’s Company of Marshall, Minnesota, the largest direct-to-home provider of foods
in the United States, uses route sales representatives who sell from refrigerated trucks. This
particular method of distribution is referred to as a(n)
A) indirect channel.
B) direct channel.
C) facilitated channel.
D) customer-service channel.
E) truck-jobber channel.
58) Members of a high-school glee club sold home-baked cupcakes at school to raise money.
The students selling their cupcakes to classmates would be an example of a(n)
A) personalized distribution.
B) nonpermanent distribution.
C) informal channel of distribution.
D) direct channel of distribution.
E) indirect channel of distribution.
59) A channel that includes intermediaries that are between the producer and consumers and
perform numerous channel functions is referred to as a(n)
A) indirect channel.
B) direct channel.
C) multilevel channel.
D) full-service channel.
E) limited-service channel.
60) Indirect channels for consumer products
A) occur when one firm’s marketing channels are used to sell another firm’s products.
B) include producers and end users dealing directly with each other.
C) include intermediaries that are between the producer and consumer and perform numerous
channel functions.
D) are arrangements whereby a firm reaches different buyers by employing two or more different
types of channels for the same basic product.
E) occur when a retailer sells its product in a store and on the Internet.
61) A commonly used indirect channel moves product from producer to retailer to consumer.
This channel is used when
A) the retail outlets are regionally located.
B) the cost of maintaining inventory is low.
C) there is little if any seasonal demand.
D) the risk lies solely with the manufacturer.
E) the retailer is large and can buy in large quantities from a producer.
62) A commonly used indirect channel moves product from producer to retailer to consumer.
This channel is used when
A) the cost of maintaining inventory is low.
B) the cost of inventory makes it too expensive to use a wholesaler.
C) there is little if any seasonal demand.
D) the risk lies solely with the manufacturer.
E) the retail outlets are regionally located.
63) The most indirect channel for consumer products incorporates agents, wholesalers, and
retailers and is most commonly used when there
A) are only a few large manufacturers but many small retailers.
B) are low-cost, low unit volume goods.
C) is too large an inventory to be carried by wholesalers.
D) are many small manufacturers and many small retailers.
E) are many manufacturers with a limited inventory competing for a small group of retailers.
64) The most indirect marketing channel is employed where many intermediaries are used to
help coordinate the distribution of the product. Which of the following products would most
likely be marketed using this kind of channel?
A) Aspen dental services
B) Toyota automobiles
C) Leslie pool supplies
D) Jaipur rugs made in India
E) Hershey’s candy bars
65) A small electronics company has begun production of a small line of high-quality,
professional studio-model components targeted at audiophiles who shop at thousands of
specialty stores across the United States. How should the small electronics company best
distribute its new products?
A) Use its established indirect marketing channel.
B) Distribute directly to mass market consumers.
C) Distribute through agents that sell to specialty electronics stores that will feature the new line.
D) Sell directly to specialty electronics stores that will feature the new line.
E) Establish its own chain of electronics retail stores.
66) In marketing channels for business products, an intermediary that performs a variety of
marketing channel functions including selling, stocking, delivering a full product assortment, and
financing is referred to as a(n)
A) agent.
B) industrial distributor.
C) wholesaler.
D) retailer.
E) channel captain.
67) An industrial distributor is
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 sales force 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.
68) Industrial distributors perform functions that are most like which intermediary in the
consumer products marketing channel?
A) manufacturers
B) retailers
C) agents
D) wholesalers
E) brokers
69) International Products, a U.S. firm that sells industrial cleansers and lubricants, wanted to
sell its product to factories, hospitals, and labs in China, but it did not have the necessary
expertise. As a result, International Products hired Asia Marketing & Management to sell, stock,
and deliver a full assortment of products to the Chinese market. Asia Marketing & Management
is an example of a(n)
A) agent.
B) wholesaler.
C) global agent.
D) retailer.
E) industrial distributor.
70) The most common intermediaries in the marketing channels for business products are
industrial distributors and
A) manufacturers.
B) retailers.
C) agents.
D) wholesalers.
E) brokers.
71) Internet marketing channels refer to
A) the use of the Internet to make products and services available for consumption or use by
consumers or organizational buyers.
B) a firm’s computer-driven inventory management through an entirely mechanized warehousing
system.
C) intranet systems linking all aspects of production within a single firm.
D) the information- and communication-based electronic exchange environment mostly occupied
by sophisticated computer and telecommunication technologies and digitized offerings.
E) the name given to all Internet addresses that end in “.com” to indicate that these websites are
commercial entities that distribute goods and services.
72) Using the Internet to make products and services available for consumption or use by
consumers or organizational buyers is referred to as
A) electronic distribution channels.
B) virtual marketing channels.
C) World Wide Web networks.
D) Internet marketing channels.
E) Web 3.0 marketing channels.
73) Which of the following products or services must typically be provided by traditional and not
by Internet marketing channels?
A) car rental reservations
B) software
C) orthopedic surgery
D) music
E) education
74) MachineTools.com sells grinders, boring mills, and engine lathes. Its website lists products
from over 700 machinery manufacturers, 2,500 distributors of new equipment, and 650 dealers
of used inventory for sale. MachineTools.com relies on a well-established channel of
manufacturers, distributors, and machinery dealers to provide the merchandise that is sold
through this
A) electronic government channel.
B) virtual marketing channel.
C) World Wide Web network.
D) mediated channel.
E) Internet marketing channel.
75) Allowing consumers to buy products by interacting with various advertising media without a
face-to-face meeting with a salesperson is referred to as a(n)
A) indirect marketing channel.
B) direct marketing channel.
C) multimarketing channel.
D) channel bypass marketing.
E) personal selling.
76) A direct marketing channel refers to
A) the distribution of products and services directly from the manufacturer’s production site to
end users.
B) the traditional chain of distribution from manufacturer to retailer to consumer.
C) the use of agents that represent a single producer and are responsible for the entire marketing
function of that producer.
D) a method of distribution that allows consumers to buy products by interacting with various
advertising media without a face-to-face meeting with a salesperson.
E) a method of distribution that allows consumers to buy products through direct personal
interaction with the manufacturer’s representatives in order to provide more personalized service.
77) Mail-order selling, catalog sales, telemarketing, interactive media, and televised home
shopping are all examples of
A) direct marketing channels.
B) indirect marketing channels.
C) multimedia marketing channels.
D) virtual marketing channels.
E) personal selling.
78) When you order a sweater from an L.L.Bean mail-order catalog, what type of marketing
channel are you and the company using?
A) cash and carry marketing channel
B) intensive distribution channel
C) selective distribution channel
D) indirect marketing channel
E) direct marketing channel