41. Which of the following is an advantage of using an industrial distributor?
a. These firms are easy to control because they work directly for the producers.
b. Inventory holding costs are minimized because they can store inventory very cheaply.
c. They are closer geographically to all of the producers’ customers.
d. They possess a high level of technical knowledge about their products.
e. They help reduce a producer’s financial burdens by extending credit to customers.
42. A producer is not likely to receive _____ from an industrial distributor.
a. selling activities in local markets
b. market information about consumers
c. aggressive promotion of its brand
d. reduced capital requirements
e. a reduced financial burden from customers
Chapter 13 – Marketing Channels and Supply-Chain Management
43. Achannelthatincludesbothamanufacturer’sagentandanindustrialdistributorisappropriatewhen:
a. the firm wants specialized personnel to follow up the work of the sales force and expand the business.
b. the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force.
c. only one or two channels of distribution are available for the products.
d. the sales force is large and the marketer is thinking of cutting it down to reduce the costs of production.
e. customers are highly concentrated in one geographic area.
44. Rob Stevens is the head of a company that produces computer software for production scheduling. The firm is
small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using
_____ to maintain contact with the firms using its products.
a. Wholesalers
b. Brokers
c. Agents
d. Merchants
e. Retailers
Chapter 13 – Marketing Channels and Supply-Chain Management
45. An independent businessperson who is paid a commission to sell complementary products of different producers in
an assigned territory without actually taking title of the merchandise is a(n):
a. sole intermediary.
b. manufacturers’ agent.
c. producers’ broker.
d. industrial distributor.
e. channel facilitator.
46. What is a primary difference between an industrial distributor and a manufacturers’ agent?
a. A manufacturers’ agent does not acquire title nor usually takes possession of the products whereas an
industrial distributor does.
b. A manufacturers’ agent is employed by the manufacturers while an industrial distributor is independent.
c. An industrial distributor is employed by the manufacturers while a manufacturers’ agent is independent.
d. A manufacturers’ agent rarely adds any value to the marketing channel while an industrial distributor reduces
costs significantly.
e. An industrial distributor does not form relationships with customers for repeat business whereas a key asset
of a manufacturers’ agent is his knowledge of his customers.
Chapter 13 – Marketing Channels and Supply-Chain Management
47. Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup
for institutional use through industrial distributors and food brokers. Del Monte is using:
a. dual distribution.
b. industrial distribution.
c. strategic channel alliance.
d. supply-chain management.
e. an unethical marketing channel.
48. Many companies use more than one marketing channel to distribute their products to the same target market, a
tactic known as:
a. multiple channeling.
b. strategic channel alliance.
c. intensive distribution.
d. dual distribution.
e. market splitting.
Chapter 13 – Marketing Channels and Supply-Chain Management
49. Apple makes its computers available through its own stores, its website, and some major retailers. This is an
example of:
a. dual distribution.
b. vertical integration.
c. horizontal integration.
d. tying agreements.
e. exclusive dealing.
50. Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks’ coffee drink, Frappucino, to
grocery stores and other retail outlets. This is an example of a(n):
a. strategic channel alliance.
b. exclusive distribution.
c. dual distribution.
d. horizontal channel integration.
e. channel leadership.
Chapter 13 – Marketing Channels and Supply-Chain Management
51. Which of the following is least likely to be a factor affecting the selection of marketing channels?
a. Customer characteristics
b. Product attributes
c. Product packaging
d. Competition
e. Environmental forces
52. Fragile products that require special handling are more likely to be distributed through:
a. longer channels.
b. shorter channels.
c. direct channels.
d. strategic alliances.
e. exclusive outlets.
Chapter 13 – Marketing Channels and Supply-Chain Management
53. When considering the best channel to use, all of the following are true with regard to larger firms except they:
a. can use an extensive product mix as a competitive tool.
b. may be better able to negotiate better deals with vendors or other channel members.
c. may have more distribution centers.
d. may have the resources to develop their own sales force.
e. may be better suited to serve customers in a particular region.
54. The major levels of intensity at which a company can choose to distribute its products are _____distribution.
a. vertical and horizontal
b. cooperative, conflicting, and integrated
c. strategic, extensive, and exclusive
d. selective, cooperative, and conflicting
e. exclusive, selective, and intensive
Chapter 13 – Marketing Channels and Supply-Chain Management
55. When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most likely used
_____ distribution.
a. horizontal
b. intensive
c. selective
d. agent
e. exclusive
56. When Amazon.com introduced its Kindle FireHD, it was available through Amazon.com, Staples office supplies
store, and a few other retailers. The Kindle FireHD was most likely distributed through the _____ of distribution.
a. selective level
b. extensive level
c. intensive level
d. exclusive level
e. agent form
Chapter 13 – Marketing Channels and Supply-Chain Management
57. Paper towels and trash-can bags are most likely to be distributed through:
a. selective distribution and multiple channels.
b. intensive and dual distribution.
c. intensive and strategic channel alliances.
d. exclusive and a single channel.
e. dual distribution and convenience channels.
58. Sales are most likely to have a direct relationship to product availability for products that use _____ distribution.
a. selective
b. dual
c. intensive
d. extensive
e. exclusive
Chapter 13 – Marketing Channels and Supply-Chain Management
59. ToysPalace Inc. produces toys and baby-related products. For the introduction of its line of nursery furniture for
infants and small children, ToysPalace will most likely use _____ distribution for the products.
a. intensive
b. exclusive
c. horizontal
d. priority
e. selective
60. Using only some of the available outlets to distribute a product is known as:
a. selective distribution.
b. intensive distribution.
c. channel conflict.
d. vertical channel integration.
e. exclusive distribution.
Chapter 13 – Marketing Channels and Supply-Chain Management
61. Product and target market characteristics usually determine the type of coverage a product receives. For which of
the following products is selective distribution most appropriate?
a. Gasoline
b. Jaguar automobiles
c. Skippy peanut butter
d. Laundry detergent
e. Organic foods
62. Honey Farms is a maker of fine chocolates. The company’s latest product, Fudge-Dipped Strawberries, is the
premier product in its Fudge-Dipped line. The product is very expensive and targeted to upscale consumers. Which
of the following forms of distribution would Honey Farms be likely to use for its new product?
a. Intensive distribution
b. Selective distribution
c. Targeted distribution
d. Exclusive distribution
e. Premier distribution
Chapter 13 – Marketing Channels and Supply-Chain Management
63. Expensive, high-quality products that are purchased infrequently often reach consumers through:
a. selective distribution.
b. highly-selective distribution.
c. sole-source retailers.
d. complex marketing channels.
e. exclusive distribution.
64. For which of the following products would exclusive distribution be most appropriate?
a. Gasoline
b. Rolls Royce automobile
c. Ray-Ban sunglasses
d. Louis Vuitton luggage
e. Harley-Davidson motorcycle
Chapter 13 – Marketing Channels and Supply-Chain Management
65. The iPhone is such a popular product and the company is so powerful that Apple Inc. is in a position to exert
considerable control over channel structures and the way iPhone is marketed. This is an illustration of channel
_____ in the distribution channel.
a. conflict
b. leadership
c. dominance
d. cooperation
e. negotiation
66. A single leader who controls and organizes a marketing channel is known as a:
a. channel champion.
b. distribution leader.
c. marketing maverick.
d. channel captain.
e. lead distributor.
Chapter 13 – Marketing Channels and Supply-Chain Management
67. Nike maintains a good deal of control over how its products are promoted, displayed, and sold. Because of this
control, Nike would be appropriately described as the channel _____.
a. intermediary
b. captain
c. allocator
d. terminator
e. price leader
68. Few supermarkets would try to replace a national brand of baby food with their own brand. Assuming that this is
true, we have a good example of channel leadership by:
a. wholesalers.
b. producers.
c. retailers.
d. agents.
e. brokers.
Chapter 13 – Marketing Channels and Supply-Chain Management
69. When one company in a marketing channel has the ability to influence another member’s goal achievement, the
company has:
a. channel control.
b. channel power.
c. marketing leadership.
d. a channel captain.
e. distributive influence.
70. If Ralston Purina forced Kroger’s grocery chain to place all of its products in the stores’ most favorable locations, it
would be:
a. demonstrating sound channel leadership.
b. insisting on exclusive exposure.
c. exercising channel power.
d. minimizing channel conflict.
e. creating a coordinate system.
Chapter 13 – Marketing Channels and Supply-Chain Management
71. Overall channel goals and individual channel member goals cannot be achieved together without:
a. conflict.
b. captains.
c. leadership.
d. cooperation.
e. tying agreements.
72. Marketing channel members are likely to experience misunderstandings, frustration, and poorly coordinated
strategies as a result of:
a. channel conflict caused by inefficient communication between channel members.
b. open communication among the channel members.
c. methods of channel coordination designed to reduce ambiguity.
d. negotiating territorial issues among regional distributors of a product.
e. allowing one member of the channel to take the role of channel captain.
Chapter 13 – Marketing Channels and Supply-Chain Management
73. When produce companies such as Dole Bananas bypass wholesalers and sell directly to retailers, it is likely to:
a. create channel conflict between Dole and these wholesalers.
b. increase cooperation between Dole and the wholesalers.
c. show that Dole is integrating its channel intermediaries.
d. create horizontal integration between channel members.
e. increase the vertical integration of the channel intermediaries.
74. Goodyear allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly
increases the possibility of channel _____ with independent Goodyear dealers.
a. understanding
b. power
c. leadership
d. communication
e. conflict
Chapter 13 – Marketing Channels and Supply-Chain Management
75. IMA Wholesalers is a distributor of car repair parts and supplies, selling to both retailers and auto repair service
businesses. If IMA has been promoting the Pennzoil brand of oil over the Quaker State brand of oil by offering
larger discounts to the channel members, and it continues to do this, _____ is likely to result.
a. channel disintegration
b. vertical channel integration
c. horizontal channel integration
d. channel conflict
e. a tying arrangement
76. Vertical channel integration:
a. results in two or more different management teams for each member of the channel.
b. is made possible when a large corporation divests itself of smaller subsidiaries.
c. is a shift back to the conventional channel of distribution.
d. combines institutions at the same level of operation.
e. is made possible by purchasing the operations of a link in the channel.
Chapter 13 – Marketing Channels and Supply-Chain Management
77. When a single channel member manages an integrated marketing channel to achieve low-cost, efficient distribution
for satisfying target markets, _____ exists.
a. a vertical marketing system
b. horizontal channel integration
c. channel power
d. channel cooperation
e. extensive distribution
78. Warner Bros. sells cookie jars, puzzles, photo albums, and other items featuring its popular cartoon characters
directly through its own retail outlets. This is an example of:
a. channel leadership.
b. channel cooperation.
c. channel conflict.
d. horizontal channel integration.
e. vertical channel integration.
Chapter 13 – Marketing Channels and Supply-Chain Management
79. The reasons a vertically integrated channel can be more effective against competition is because of all of the
following except:
a. the consolidation of power.
b. tightly controlled and bureaucratic management style.
c. the ability to inhibit competitors.
d. the sharing of responsibilities and information.
e. increased bargaining power.
80. United Clothes, a leading manufacturer of knitwear in Italy, expanded its operations to include retail outlets in the
United States and South America. This type of channel is called:
a. horizontal integration.
b. vertical integration.
c. multilevel integration.
d. retail integration.
e. merchandising integration.
Chapter 13 – Marketing Channels and Supply-Chain Management