Marketing Management, 3e (Marshall)
Chapter 12 Manage Marketing Channels, Logistics, and Supply Chain
1) The value chain portrays a mixture of primary and support activities utilized by an
organization to design, produce, market, deliver, and support its products.
2) Customers, both end users and those within a channel, are often considered by organizations
as unimportant members of the value network.
3) A channel is a system of interdependent relationships among a set of organizations that
facilitates the exchange process.
4) Cutting out intermediaries will always guarantee that consumers will save money.
5) A wide variety of types of intermediaries exist, and they usually fall within two principal
categories: merchant intermediaries and agent intermediaries.
6) Logistics is a function of channel intermediaries.
7) Facilitating functions performed by intermediaries include a variety of activities, including
financing and market research.
8) The performance of transaction and communication functions is a category of intermediary
contribution within a channel.
9) Disintermediation is common in the machining channel.
10) Many firms are using outsourcing or third-party logistics to better focus on their core
business.
11) A vertical marketing system is comprised of independent entities.
12) The lead player in an administered VMS is called the channel captain.
13) Unresolved channel conflict will never result in an uncooperative and inefficient channel;
however, it may impact end-user consumers through inferior products, spotty inventory, and
higher prices.
14) Expert power is when channel members adopt an approach of utilizing their unique
competencies to influence others in the channel.
15) When marketing planning, a good channel decision can be one of the most important within
the entire planning process and can lead to market advantage over competitors.
16) With a push strategy, much of the intensive promotional activities take place from the
manufacturer downward through the channel of distribution.
17) The degree of push versus pull used is fundamental in framing the channel structure and
relationships that are likely to optimize a product’s success.
18) Physical distribution, or logistics, is the integrated process of moving input materials to the
producer, in-process inventory through the firm, and finished goods out of the firm through the
channel of distribution.
19) Receiving and properly processing customer orders takes place before the product moves
into the supply chain.
20) In an ideal supply chain, materials of all kinds are handled as many times as possible.
21) Exclusive dealing may be legal if the parties show exclusivity is essential for strategic
reasons, such as to maintain product image.
22) A producer can always grant an intermediary an exclusive territory for sales purposes.
23) E-commerce is not generally a central part of most firms’ marketing strategies.
24) Electronic retailing is the communication and sale of products or services to consumers over
the Internet.
25) Although the Internet has reshaped the way businesses and consumers interact, it has not
been successful in B2B customer interfaces.
26) In evaluating a website, one of the key measures is its “stickiness,” which refers to the
amount of time visitors remain and explore a site.
27) A(n) ________ is thought of as an overarching system of formal and informal relationships
within which the firm participates to procure, transform and enhance, and ultimately supply its
offerings in final form within a market space.
A) value network
B) virtual organization
C) business conglomerate
D) organic organization
E) tall organization
28) A value network perspective is a macro-level strategic approach that is being adopted by
many firms in part because of the intense competition to cut ________ and maximize ________
every step of the way to market.
A) costs; process efficiencies
B) rewards; stock inventory
C) employee benefits; cost control
D) time inefficiencies; profits
E) labor hours; performance incentives
29) A virtual organization is otherwise known as a ________ organization.
A) flat
B) boundaryless
C) bureaucratic
D) tall
E) network
30) A ________ eliminates many in-house business functions and activities in favor of focusing
only on those aspects for which it is best equipped to add value.
A) value network
B) mechanistic distribution system
C) virtual organization
D) physical distribution system
E) tall organization
31) Jenn, a production manager at a company, has decided to take a value network approach to
create a competitive advantage over the company’s competitors. In the context of network
organizations, this approach will make the company’s operations more ________.
A) rigid
B) costly
C) consistent
D) static
E) nimble
32) A(n) ________ represents all organizations involved in providing a firm, the members of its
channels of distribution, and its end-user consumers and business users.
A) value chain
B) supply chain
C) virtual channel
D) direct channel
E) indirect channel
33) Keisha is in charge of overseeing the flow of activities among several entities for Walmart.
Her main objective is to coordinate these value-adding activities in a way that maximizes value
and profit. She is in charge of ________.
A) physical distribution
B) assortment creation
C) supply chain management
D) partner relationship management
E) transaction reduction
34) A channel of distribution consists of interdependent entities that ________.
A) transfer possession of a product from producer to consumer
B) fix the price of a product to create monopoly
C) experience inefficiencies in business processes
D) develop new products
E) include members of the same market segment
35) In the context of the distribution channel, which of the following takes title to a product?
A) product promoters
B) merchant intermediaries
C) agent intermediaries
D) brokers
E) commission dealers
36) ________ intermediaries perform a variety of physical distribution, transaction and
communication, and facilitating functions that make exchange possible. They do not take title to
the product.
A) Wholesalers
B) Retailer
C) Agent
D) Distributor
E) Supplier
37) Which of the following has no intermediaries and operates strictly from producer to end-user
consumer or business user?
A) exclusive distribution
B) physical distribution
C) virtual network
D) direct channel
E) indirect channel
38) Channel members add their value by bridging gaps in form, time, place, and ownership that
naturally exist between ________.
A) consumers and transporters
B) facilitating agents and transporters
C) producers and consumers
D) producers and retailers
E) distributors and agents
39) A(n) ________ contains one or more intermediary levels.
A) channel community
B) network organization
C) virtual organization
D) direct channel
E) indirect channel
40) ________ enhance utilities by providing a wide array of specific functions including physical
distribution functions, transaction and communication functions, and facilitating functions.
A) Direct channels
B) Value networks
C) Indirect channels
D) Pull strategies
E) Channel intermediaries
41) Good Egg Co. buys eggs from local farmers, sorts them into different grades, and then
packages them to sell to larger grocers. Good Egg Co. is performing the distribution function of
________.
A) physical distribution
B) product processing
C) determining variety
D) breaking bulk
E) accumulating bulk
42) Intermediaries engage in ________ when they accumulate products from several sources and
then make those products available down the channel as a convenience for consumers.
A) creating assortments
B) reducing transactions
C) transportation and storage functions
D) facilitating functions
E) disintermediation
43) Introducing an intermediary into a channel may contribute to ________ that are necessary to
complete an exchange.
A) creating assortments
B) reducing transactions
C) transportation and storage functions
D) facilitating functions
E) disintermediations
44) An intermediary works with large consumer product manufacturers as well as small local
retailers. The company buys large quantities of products from the manufacturers and sells them
in smaller quantities to retailers to better match quantities needed for space constraints and
inventory turnover requirements. The intermediary is performing the distribution function of
________.
A) disintermediation
B) assortment creation
C) reverse logistics
D) breaking bulk
E) accumulating bulk
45) ________ is one of the most commonly provided channel intermediary activities.
A) Showrooming
B) Franchising
C) Storage
D) Outsourcing
E) Disintermediation
46) Financing, market research, risk-taking, and other services are considered to be ________
functions.
A) physical distribution
B) transaction and communication
C) transportation and storage
D) facilitating
E) e-commerce
47) Big Market purchases different fruits from local farmers and then sells them to local
restaurants and retailers. If the fruits rot before Big Market sells them, the store takes the loss. As
an intermediary, Big Market is performing the function of ________.
A) financing
B) market research
C) channeling
D) risk-taking
E) sorting
48) ________ means the shortening or collapsing of marketing channels due to the elimination of
one or more intermediaries, which is common in the electronic channel.
A) Creating assortments
B) Reducing transactions
C) Channel integration
D) Outsourcing
E) Disintermediation