1. How do marketing channel decisions influence the rest of the marketing mix?
2. What is a marketing intermediary, and what are the activities that marketing intermediaries perform?
3. Name and define the four types of utility created by marketing channels.
4. How do marketing channels increase efficiency in exchange situations?
5. Wholesalers are often criticized for being inefficient and for causing consumers to pay higher prices than they would if
there were no wholesalers. Discuss.
6. What is supply chain management? List the activities involved in it.
7. What are the key tasks in supply chain management? How does each of these facilitate supply chain management?
8. What advantages do industrial distributors offer? What are some of the disadvantages of using industrial distributors?
9. Under what circumstances is selective distribution a desirable level of market coverage?
10. Discuss channel cooperation and conflict. How might each one affect distribution channel functions?
11. Compare and contrast horizontal and vertical channel integration.
12. List the three major levels of market coverage and define each of them.
13. Describe the three forms of vertical marketing systems.
14. Discuss the importance of order processing in the physical distribution system.
15. Explain how electronic data interchange (EDI) and just-in-time (JIT) inventory management might be used in
combination to improve physical distribution effectiveness and efficiency.
16. Why is the choice of warehouse facilities an important strategic consideration?
17. Identify the various transportation modes and describe in detail two modes of transportation.
18. Explain the legal ramifications of attempts to control distribution functions.
19. A set of approaches used to integrate the functions of operations management, logistics management, supply
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 called
a.
supply chain management.
b.
vertical channel integration.
c.
industrial management.
d.
industrial distribution.
e.
marketing management.
MARK.PRID.16.14.01 – LO: 14–01
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: Foundations Of The Supply Chain
Bloom’s: Knowledge
20. Rovio, the parent company of the popular Angry Birds app, made several marketing mix decisions that were
considered to be part of its distribution. Which of the following was not a decision that relates to distribution?
a.
downloads of the game Angry Birds
b.
the sale of t-shirts and stuffed birds and pigs through its website
c.
the sale of Halloween costumes through Amazon
d.
the opening of retail stores in Finland and China
e.
the licensing of the Angry Birds to producers of t-shirts and costumes
MARK.PRID.16.14.01 – LO: 14–01
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Foundations Of The Supply Chain
Bloom’s: Analysis
21. The supply chain includes
a.
producers, wholesalers, and retailers.
members that choose not to comply with illegal policies.
MARK.PRID.16.14.06 – LO: 14–06
United States – BUSPROG: Ethics
United States – AK – DISC: Distribution
A-Head: Legal Issues In Channel Management
Bloom’s: Knowledge
b.
suppliers, producers, intermediaries, and customers.
c.
suppliers and suppliers’ suppliers.
d.
all entities that facilitate product distribution.
e.
buyers, seller, marketing intermediaries, and agents.
22. Supply chains for durable goods typically begin at _____ and end at _____.
a.
b.
c.
d.
e.
MARK.PRID.16.14.01 – LO: 14–01
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: Foundations Of The Supply Chain
Bloom’s: Knowledge
23. All members of the supply chain should determine their position in the chain, identify their partners and their roles,
and establish partnerships whose focus is
a.
shifting costs to suppliers.
b.
maximizing costs.
c.
maximizing technology implementation.
d.
cooperation with competitors.
e.
customer relationships.
MARK.PRID.16.14.01 – LO: 14–01
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Foundations Of The Supply Chain
Bloom’s: Comprehension
24. Walmart 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
MARK.PRID.16.14.01 – LO: 14–01
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: Foundations Of The Supply Chain
Bloom’s: Knowledge
a.
supply chain management.
b.
a vertical marketing system.
c.
a horizontal marketing system.
d.
channel conflict.
e.
dual distribution.
25. 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.
Moderate
MARK.PRID.16.14.01 – LO: 14–01
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: Foundations Of The Supply Chain
Bloom’s: Application
26. A marketing channel 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.
Easy
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: The Role Of Marketing Channels In Supply Chains
a
Moderate
MARK.PRID.16.14.01 – LO: 14–01
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Foundations Of The Supply Chain
Bloom’s: Application
27. The driving force behind marketing channel decisions should be
a.
convenience.
b.
cost reduction.
c.
environmental concerns.
d.
customer satisfaction.
e.
quality.
Easy
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Customer
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Comprehension
28. What 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
a
Moderate
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Knowledge
29. Josh is a vice-president for 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.
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
Bloom’s: Knowledge
30. 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.
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
Bloom’s: Comprehension
31. 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.
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Application
32. Marketing channels create four types of utility for consumers including
a.
place, time, possession, and form.
b.
location, form, availability, and suitability.
c.
form, time, location, and promotion.
d.
marketer, retailer, wholesaler, and producer.
e.
position, price, possession, and place.
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Knowledge
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Application
33. 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.
34. 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.
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Comprehension
35. In a simple economy of five producers and five consumers, there would be ____ transactions possible without an
intermediary and ____ transactions possible with one intermediary.
a.
ten; twenty-five
b.
thirty; ten
c.
twenty-five; fifteen
d.
sixteen; eight
e.
twenty-five; ten
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Knowledge
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Knowledge
36. 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.
37. 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.
Challenging
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Comprehension
38. 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.
c
Moderate
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: The Role Of Marketing Channels In Supply Chains
Challenging
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Knowledge
39. Cassie and Julian both are buying new iPhones this week. Cassie goes to the Apple store because she wants to actually
see the phone before she makes a final decision. Julian knows that he does not need to see the phone, because he just
wants to update from his older version. Cassie is purchasing her phone through_____, while Julian is purchasing his
through ___.
a.
an indirect-marketing channel; the most efficient channel of distribution.
b.
the most common type of marketing channel; an indirect channel.
c.
a retailer; a direct-marketing channel.
d.
a business-to-business channel; a direct-marketing channel.
e.
a retail channel; an indirect-marketing channel
c
Moderate
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Customer
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Application
40. 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.
Easy
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Application
41. 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, Netflix is using ____ and Red Box is using ___.
a.
a direct marketing channel; a slightly shorter channel.
b.
a direct-marketing channel; an agent.
c.
an Internet wholesalers; a retailers.
d.
an Internet wholesaler; a slightly longer channel.
e.
a direct-marketing channel; a type of retailer.
e
Moderate
MARK.PRID.16.14.02 – LO: 14–02
Bloom’s: Comprehension
42. After direct-marketing, the next slightly longer marketing channel adds a(n)
a.
retailer.
b.
producer.
c.
wholesaler.
d.
agent.
e.
consumer.
a
Moderate
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Knowledge
43. 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.
a
Moderate
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Application
44. Large retailers such as J.C. Penney’s and Target are most likely to participate in which of the following channels?
a.
Producer, industrial distributors, retailers, consumers
b.
Producer, consumers
c.
Producer, wholesalers, retailers, consumers
d.
Producer, retailers, consumers
e.
Producer, agents, wholesalers, retailers, consumers
Challenging
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Analysis
45. The marketing channel of producer-retailer-consumer is most likely to be used by producers of which of the following
products?
a.
KitchenAid appliances
b.
Tobacco
c.
Automobiles
d.
Apples and oranges
e.
Wedding photographs
c
Moderate
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Analysis
46. All of the following products are likely to use the producer-retailer-consumer marketing channel except for _____
a.
Pharmaceutical drugs
b.
U-Pick farm produce
c.
Amazon Kindle Fire
d.
Designer wedding gowns
e.
Microbrew beers
Easy
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Analysis
47. Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What
marketing channel are 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
Moderate
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Application
48. Which of the following is the most commonly used channel for distributing business products?
a.
Producer, agents, industrial distributors, organizational buyers
b.
Producer, industrial distributors, organizational buyers
c.
Producer, agents, organizational buyers
d.
Producer, organizational buyers
e.
Industrial distributors, organizational buyers
Moderate
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Knowledge
49. Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) ____ channel.
a.
producer-to-business buyer
b.
producer-to-industrial-distributor–to-business buyer
c.
producer-to-agent-to-business buyer
d.
equipment
e.
consumer
a
Easy
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Application
50. Organizational buyers are especially partial to direct marketing channels when
a.
they buy cheap materials in large quantities.
b.
they try a new product for the first time.
c.
they are filling an order for a very important customer.
d.
a modified rebuy type of decision is involved.
e.
expensive and/or complex equipment is involved.
e
Moderate
MARK.PRID.16.14.02 – LO: 14–02
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Application
51. Caruthers Paint Manufacturing Company buys the chemicals it needs for producing its products from a chemical
producer, Roth Chemicals. In this instance, the chemicals are being distributed to Caruthers through which of the
following types of channels?
a.
Industrial distributor
b.
Direct distribution
c.
Retail
d.
Wholesaler-sponsored
e.
Producer
Challenging
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Application
52. 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.
a
Moderate
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Analysis
53. 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
c
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Knowledge
54. 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
Easy
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Comprehension
55. Which of the following describes a disadvantage of using industrial distributors?
a.
Industrial distributors possess considerable market information.
b.
Their marketing exchange relationships are very 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.
c
Moderate
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Comprehension
56. 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.
e
Moderate
MARK.PRID.16.14.02 – LO: 14–02
United States – BUSPROG: Analytic
United States – AK – DISC: Distribution
A-Head: The Role Of Marketing Channels In Supply Chains
Bloom’s: Application