143. Refer to Scenario 13.1. The Liz & Co brand is sold only at J.C. Penney. This is an example of _____ distribution.
a. selective
b. routine
c. horizontal
d. intensive
e. exclusive
Chapter 13 – Marketing Channels and Supply-Chain Management
Scenario 13.2
Use the following to answer the questions.
Star Supplies Inc. manufactures commercial-grade floor cleaners, such as vacuums and floor polishers. The firm
has recently begun manufacturing other janitorial-related product lines, such as paper products and chemical
cleaners. Star Supplies distributes its products in two ways. It sells its vacuum, floor polisher, and janitorial supply
products to an independent business that takes title to the products and then sells them to various small businesses
throughout the region. Also, Star has a list of large businesses that it distributes to directly, on an as-needed basis.
These businesses keep very little inventory and purchase janitorial supplies in small quantities. Recently, Star has
decided to add two new service product lines฀paper shredding and a uniform rental service. Clint Rodriguez, the
marketing manager, is conducting a meeting to discuss the ways in which Star can strategically manage these new
businesses. Star has the choice of marketing the paper shredding service to their large business clients, by picking
up the paper as they drop off the other janitorial supplies, or they can buy a small paper shredding business and
market to both large and small business customers. With regard to the uniform rental service, Star can either pick
up and deliver the uniforms to the small businesses themselves, or contract that out to a third party.
144. Refer to Scenario 13.2. Which of the following is Star Supplies Inc. most likely using to market its vacuum, floor
polisher, and janitorial supplies to its small business customers?
a. Wholesalers
b. Retailers
c. Merchants
d. Industrial distributors
e. Manufacturers’ agents
Chapter 13 – Marketing Channels and Supply-Chain Management
145. Refer to Scenario 13.2. Currently, Star is using the ____ approach to distribute its janitorial supplies to its large
customers.
a. intensive
b. just-in-time
c. segmented
d. outsourcing
e. exclusive
146. Adistributionsysteminvolvesfirmsthatare“upstream”and“mainstream.”
a. True
b. False
147. Supply management involves planning, implementing, and controlling the efficient and effective flow and storage of
productsandinformationfromthepointoforigintoconsumptioninordertomeetcustomers’needsandwants.
a. True
b. False
Chapter 13 – Marketing Channels and Supply-Chain Management
148. Information is a crucial component in operating supply chains efficiently and effectively.
a. True
b. False
149. Supply-chain management is one of the industries poised for strong future growth.
a. True
b. False
150. The least important role of marketing channels is to make products available at the right time at the right place in
the right quantities.
a. True
b. False
Chapter 13 – Marketing Channels and Supply-Chain Management
151. Providing customer satisfaction should be the driving force behind marketing channel decisions.
a. True
b. False
152. Manufacturers’needsandbehaviorsareimportantconcernsofchannelmembers.
a. True
b. False
153. Manufacturers and retailers are examples of intermediaries.
a. True
b. False
Chapter 13 – Marketing Channels and Supply-Chain Management
154. The supply-chain members do not require information from other channel members.
a. True
b. False
155. Without marketing channel operations that reach the right customers at the right time, even the best goods and
services will not be successful.
a. True
b. False
156. To achieve the desired intensity of market coverage, distribution must correspond to behavior patterns of buyers.
a. True
b. False
Chapter 13 – Marketing Channels and Supply-Chain Management
157. The three major levels of market coverage are intensive, selective, and exclusive distribution.
a. True
b. False
158. Sales and product availability of low-cost convenience products may be directly related to product cost.
a. True
b. False
159. Intensive distribution uses only some available outlets in an area to distribute a product.
a. True
b. False
Chapter 13 – Marketing Channels and Supply-Chain Management
160. Building the most effective and efficient supply chain can sustain a business and help it to use resources effectively
and be more efficient.
a. True
b. False
161. Supplychainsdrivenbyfirmestablishedgoalsfocusonthe“operativepriorities”ofspeed,quality,cost,orflexibility
as the performance objective.
a. True
b. False
162. Channel captains may establish channel policies and coordinate development of the marketing mix.
a. True
b. False
Chapter 13 – Marketing Channels and Supply-Chain Management
163. If self-interest creates misunderstanding about role expectations, the end result is frustration and conflict for the
whole channel.
a. True
b. False
164. Physical distribution systems must meet the needs of both the supply chain and ultimate consumers.
a. True
b. False
165. In the context of distribution, outsourcing is contracting physical distribution tasks to third parties.
a. True
b. False
Chapter 13 – Marketing Channels and Supply-Chain Management
166. A manufacturer can also legally open its own retail outlets.
a. True
b. False
Chapter 13 – Marketing Channels and Supply-Chain Management