1. What is supply chain management? List the activities involved in it.
2. How do marketing channel decisions influence the rest of the marketing mix?
Chapter 13 – Marketing Channels and Supply-Chain Management
3. What are marketing intermediaries, and what are the activities that they perform?
4. Name and define the four types of utility created by marketing channels.
Chapter 13 – Marketing Channels and Supply-Chain Management
5. How do marketing channels increase efficiency in exchange situations?
6. Define an industrial distributor and state some of the disadvantages of using industrial distributors.
Chapter 13 – Marketing Channels and Supply-Chain Management
7. When is selective distribution said to be at a desirable level of market coverage?
8. List the three major levels of market coverage and define each of them.
Chapter 13 – Marketing Channels and Supply-Chain Management
9. Describe the horizontal and vertical channel integration.
10. Describe the three forms of vertical marketing systems.
Chapter 13 – Marketing Channels and Supply-Chain Management
11. Discuss the importance of order processing in the physical distribution system.
12. Explain the electronic data interchange (EDI) method.
Chapter 13 – Marketing Channels and Supply-Chain Management
13. Why is the choice of warehouse facilities an important strategic consideration?
14. Identify the various transportation modes and describe in detail two modes of transportation.
Chapter 13 – Marketing Channels and Supply-Chain Management
15. A set of approaches used to integrate the functions of operations management, logistics management, and
marketing channel management so products are produced and distributed in the right quantities, to the right
locations, and at the right time is known as:
a. supply-chain management.
b. vertical channel integration.
c. industrial management.
d. industrial distribution.
e. marketing management.
16. Which of the following is true about supply-chain management?
a. Supply chains for durable goods typically begin at raw materials and end at the retailer.
b. Supply chains for durable goods typically begin at suppliers and end at the retailer.
c. Supply chains for durable goods typically begin at raw materials and end at the customer.
d. Supply chains for durable goods typically begin at suppliers and end at the customer.
e. Supply chains for durable goods typically begin at retailers raw materials and end at the customer.
Chapter 13 – Marketing Channels and Supply-Chain Management
17. Greenmart Corp. is working with its suppliers, using tools such as electronic billing, purchase order verification, and
bar code technology, to integrate data used to improve overall performance. This is an example of:
a. supply-chain management.
b. a vertical marketing system.
c. a horizontal marketing system.
d. channel conflict.
e. dual distribution.
18. Revlon, a maker of cosmetics and skin-care products, is effectively involved in the management of its supply chain.
It coordinates activities with both its suppliers and its distributors in order to produce and deliver products that its
customers demand. Which of the following statements is most likelytobetrueabouttheimpactofRevlon’s
supply-chain management?
a. Revlon demonstrates a product firm orientation which increases its competitiveness.
b. Revlon demonstrates a market firm orientation which increases its competitiveness.
c. Revlon demonstrates a sales firm orientation which increases its competitiveness.
d. Revlon’ssupplychainmanagementoverlapswithallofthefirm’smarketingfunctionsbutnotitsfinancial
functions.
e. Revlon’sprimaryobjectiveistomaximizeefficiencyinitssupplychain.
Chapter 13 – Marketing Channels and Supply-Chain Management
19. A channel of distribution is defined as a group of individuals and organizations that:
a. consumes about one-half of every dollar spent on products in the United States.
b. directs the flow of products from producers to customers.
c. links producers to other marketing intermediaries.
d. takes title to products and resells them.
e. manages transportation and warehousing functions.
20. The driving force behind marketing channel decisions should be:
a. convenience.
b. cost reduction.
c. environmental concerns.
d. customer satisfaction.
e. quality.
Chapter 13 – Marketing Channels and Supply-Chain Management
21. Which of the following links producers to consumers through the purchase and reselling of products or contractual
agreements?
a. Marketing intermediaries
b. Distributors
c. Suppliers
d. Middle marketers
e. Marketing channels
22. Josh is the vice-president for the 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:
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.
Chapter 13 – Marketing Channels and Supply-Chain Management
23. Channel decisions are important to marketers mostly because:
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.
24. If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are:
a. long-term commitments.
b. short-term commitments.
c. easier to change than prices.
d. easier to change than promotion.
e. impossible to change.
Chapter 13 – Marketing Channels and Supply-Chain Management
25. 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 ______.
a. possession utility
b. place utility
c. time utility
d. possession utility
e. information utility
26. Possession utility is best described as:
a. products being available in places where the customers wish to purchase them.
b. the customer having access to the product to use now or store and use later.
c. having a company’s products available when a customer needs them.
d. being able to legally own a product despite restrictions on trade.
e. getting the products to the consumers in as short of time as possible for ownership.
Chapter 13 – Marketing Channels and Supply-Chain Management
27. Consumers receive the benefits of place utility when:
a. they have to travel excessively to obtain products they want.
b. retailers remain open 24 hours a day.
c. they can stock up on products they need but not use them right away.
d. they make purchases with credit and debit cards.
e. products are available in locations where consumers want to buy them.
28. In a simple economy of five producers and five consumers, there would be ____ transactions possible without an
intermediary and ten transactions possible with one intermediary.
a. ten
b. thirty
c. fifteen
d. sixteen
e. twenty-five
Chapter 13 – Marketing Channels and Supply-Chain Management
29. Eliminating a wholesaler from a marketing channel will:
a. cut costs and lower prices.
b. not eliminate the functions performed by that wholesaler.
c. eliminate the functions performed by that wholesaler.
d. lead to lower costs but higher prices.
e. reduce channel conflict.
30. When three buyers purchase the products of three producers, nine transactions are required. If one intermediary
serves both producers and buyers, the number of possible transactions is:
a. fifteen.
b. five.
c. eighteen.
d. six.
e. twenty.
Chapter 13 – Marketing Channels and Supply-Chain Management
31. Without wholesalers and other intermediaries:
a. most products would be much less expensive because fewer companies would be handling the product.
b. products would be cheaper because the functions of intermediaries would be eliminated.
c. products would likely be more expensive due to the use of less efficient channel members.
d. products would never be able to make it to the ultimate consumer at any price without passing through
intermediaries.
e. many products would be more expensive because retailers would expect more profit.
32. 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:
a. direct distribution.
b. producer, retailer, consumer.
c. telemarketing.
d. direct-marketing.
e. indirect marketing.
Chapter 13 – Marketing Channels and Supply-Chain Management
33. Netflix sells its movie services using its website, while Red Box sells its movie services using vending machines.
Fromacustomer’spointofview,whichofthefollowingistrueaboutNetflixandRedBox?
a. Netflix is using a direct-marketing channel and Red Box is using a type of a slightly shorter channel.
b. Netflix is using a direct-marketing channel and Red Box is using a type of an agent.
c. Netflix is using an Internet wholesaler and Red Box is using a type of retailer.
d. Netflix is using an Internet wholesaler and Red Box is using a slightly longer channel.
e. Netflix is using a direct-marketing channel and Red Box is using a type of retailer.
34. When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary
is classified as a:
a. retailer.
b. wholesaler.
c. broker.
d. functional middleman.
e. producer.
Chapter 13 – Marketing Channels and Supply-Chain Management
35. Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers.
Which of the following marketing channels do these manufacturers most likely to use?
a. Producer, consumer
b. Producer, wholesaler, retailer, consumer
c. Producer, wholesaler, agent, retailer, consumer
d. Producer, retailer, consumer
e. Retailer, consumer
36. Caruthers Paint Manufacturing Company buys the chemicals it needs for producing its products from a chemical
producer, Roth Chemicals. In this instance, through which of the following types of channels are the chemicals
being distributed to Caruthers?
a. Industrial distributor
b. Direct distribution
c. Retail
d. Wholesaler-sponsored
e. Producer
Chapter 13 – Marketing Channels and Supply-Chain Management
37. River City, Inc. is an independent business that takes title to products and carries inventories. River City, Inc. is
most likely a(n):
a. industrial distributor.
b. intermediary.
c. agency.
d. wholesaler.
e. producer.
38. Jeff Wood’s company buys machine tools from large producers and sells them to several Midwestern
manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces capital
requirements for the producers. Jeff’s company is an example of a(n) _____ in a distribution channel.
a. direct distributor
b. manufacturers’ agent
c. industrial distributor
d. producers’ agent
e. wholesalers’ agent
Chapter 13 – Marketing Channels and Supply-Chain Management
39. Which of the following is most likely to be a product stocked solely by an industrial distributor?
a. Tires
b. Wind turbines
c. Roofing nails
d. Kitchen countertops
e. Office supplies
40. Which of the following describes a disadvantage of using industrial distributors?
a. Industrial distributors possess considerable market information.
b. Their marketing exchange relationships are much focused.
c. They are unlikely to handle bulky items or items that are slow sellers.
d. Industrial distributors sell specific brands aggressively.
e. Industrial distributors acquire title to the products and take possession.
Chapter 13 – Marketing Channels and Supply-Chain Management