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b.
Retailers
c.
Merchants
d.
Industrial distributors
e.
Manufacturers' agents
172. Scenario 14.2
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.
Refer to Scenario 14.2. Currently, Star is using the ____ approach to distributing its janitorial supplies to its large
customers.
a.
intensive
b.
just-in-time
c.
segmented
d.
outsourcing
e.
exclusive
173. Scenario 14.2
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.
Refer to Scenario 14.2. When Clint suggested that Star consider purchasing a paper shredding business and then offer the
service to its large and small business customers, he was suggesting a method called ____, where Star would be the ____.
a.
horizontal integration; channel manager
b.
horizontal integration; channel captain
c.
vertical integration; channel captain
d.
outsourcing; channel manager
e.
outsourcing; channel captain
174. Scenario 14.2
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.
Refer to Scenario 14.2. Clint's suggestion for the uniform rental service was either picking up and delivering the uniforms
themselves, or contracting this to a third party. If Star decides to pick up and deliver the uniforms with its own trucks, this
is an example of a(n) ____ channel. If Star contracts this action to a third party, it is called ____.
a.
long; industrial distribution
b.
direct; industrial distribution
c.
long; outsourcing
d.
direct; outsourcing
e.
exclusive; outsourcing
175. Supply chain management combines two or more stages of the marketing channel under one management.
a.
True
b.
False
176. Supply chain management includes only producers, wholesalers, retailers, and customers.
a.
True
b.
False
177. Supply chains start with the producer.
a.
True
b.
False
178. A marketing channel is not the same thing as a distribution channel.
a.
True
b.
False
179. Buyers' behavior is unimportant to channel members.
a.
True
b.
False
180. Marketing intermediaries bridge the gap between suppliers (or producers) and buyers (or consumers).
a.
True
b.
False
181. The purpose of a marketing channel is to make products available at the right time at the right place in the right
quantities.
a.
True
b.
False
182. Marketing intermediaries never establish pricing policies and terms of sale.
a.
True
b.
False
183. Marketing intermediaries are marketing institutions, such as retailers and wholesalers, which perform marketing
functions necessary to direct products to customers.
a.
True
b.
False
184. Distribution decisions have little influence on the rest of the marketing mix.
a.
True
b.
False
185. Long-term commitments usually characterize the relationships among channel members.
a.
True
b.
False
186. It is usually easier to change marketing channels than to change prices or promotion.
a.
True
b.
False
187. Marketing channels create several types of utility including time, place, possession, and form.
a.
True
b.
False
188. Place utility is created by the customer having access to the product to use or store for future use.
a.
True
b.
False
189. Marketing intermediaries can reduce the cost of exchanges.
a.
True
b.
False
190. The end result of eliminating marketing intermediaries is a cost benefit.
a.
True
b.
False
191. The services or responsibilities provided by some intermediaries can be eliminated effectively without causing an
increase in the services or responsibilities provided by other intermediaries.
a.
True
b.
False
192. The shortest possible distribution channel would be producer to retailer to consumer.
a.
True
b.
False
193. Sometimes a marketing channel is quite simple and short, perhaps running directly from a producer to the final user
or consumer.
a.
True
b.
False
194. Agents are seldom used in channels for consumer products.
a.
True
b.
False
195. The cost of a business product may affect the distribution channel selected for it.
a.
True
b.
False
196. When higher-priced or technically complex business products are involved, business customers prefer to deal directly
with producers rather than through intermediaries.
a.
True
b.
False
197. Business customers prefer to deal with producers through intermediaries and thus eliminate much of the burden of
sorting out details.
a.
True
b.
False
198. Like manufacturers' agents, industrial distributors do not take title to products or carry inventories.
a.
True
b.
False
199. Industrial distributors and their agents are typical types of intermediaries found in channels for consumer products.
a.
True
b.
False
200. Retailers are frequently found in business product channels.
a.
True
b.
False
201. Agents are used in business channels for standardized products and in situations in which information-gathering and
selling functions are important.
a.
True
b.
False
202. Both a manufacturers' agent and an industrial distributor may be used when the organizational marketer wishes to
cover a larger geographic area but does not maintain a sales force.
a.
True
b.
False
203. Dual distribution involves the use of two or more marketing channels for distributing the same products to the same
target market.
a.
True
b.
False
204. Marketers of complex and expensive products such as automobiles will likely employ long channels with many
knowledgeable intermediaries.
a.
True
b.
False
205. Firms that desire to convey an exclusive image for their products may wish to limit the number of outlets available.
a.
True
b.
False
206. Small firms are more likely to be in a position to have more distribution centers that may reduce delivery times to
customers.
a.
True
b.
False
207. The success or failure of a competitor's marketing channel may encourage or dissuade an organization from
considering a similar approach.
a.
True
b.
False
208. Convenience products usually are distributed intensively because sales of these products tend to have a direct
relationship to availability.
a.
True
b.
False
209. Intensive distribution is appropriate for shopping products.
a.
True
b.
False
210. Selective distribution is desirable when customer service from a channel member is important.
a.
True
b.
False
211. Specialty products that require service information and are consumed over a long period of time are likely to be
distributed on an exclusive basis.
a.
True
b.
False
212. Channel power is an ability related to influence goals of other channel members.
a.
True
b.
False
213. Some marketing channels are organized and controlled by a single leader.
a.
True
b.
False
214. Only producers can be channel captains.
a.
True
b.
False
215. Channel conflict is necessary to facilitate efficient performance within the channel.
a.
True
b.
False
216. Conflicts with the retailer may develop if the dealer decides to place too much emphasis on competing product lines.
a.
True
b.
False
217. In vertical integration, control is expanded to two or more successive links of production or distribution.
a.
True
b.
False
218. A discount house can store and transport merchandise that is purchased directly from the producer, thus eliminating
the need for a wholesaler. This is an example of vertical channel integration.
a.
True
b.
False
