Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
57. 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
58. A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the
following circumstances?
a.
When the firm wants specialized personnel to follow up the work of the sales force
b.
When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales
force
c.
When only one or two channels of distribution are available for products
d.
When the sales force is large and the marketer is thinking of cutting it down
e.
When customers are highly concentrated in one geographic area
59. 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
60. 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.
61. What is a primary difference between an industrial distributor and a manufacturers' agent?
a.
A manufacturers' agent does not acquire title nor usually take 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.
62. 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.
63. Many companies use more than one marketing channel to distribute their products to the same target market, a tactic
called
a.
multiple channeling.
b.
strategic channel alliance.
c.
intensive distribution.
d.
dual distribution.
e.
market splitting.
64. 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.
65. 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.
a strategic channel alliance.
b.
exclusive distribution.
c.
dual distribution.
d.
horizontal channel integration.
e.
channel leadership.
66. 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
67. 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.
68. 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.
69. 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.
intensive, extensive, and exclusive
d.
selective, cooperative, and conflicting
e.
exclusive, selective, and intensive
70. 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
71. 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
72. Paper towels and trash-can bags are most likely to be distributed through ____ and ____.
a.
selective distribution; multiple channels
b.
intensive; dual distribution
c.
strategic channel alliances; intensive
d.
exclusive; a single channel
e.
dual distribution; convenience channels
73. 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
74. The Fisher-Price company produces toys and baby-related products. For the introduction of its line of nursery
furniture for infants and small children, the Fisher Company will most likely use ____ distribution for the products.
a.
intensive
b.
exclusive
c.
horizontal
d.
priority
e.
selective
75. Using only some of the available outlets to distribute a product is called
a.
selective distribution.
b.
intensive distribution.
c.
channel conflict.
d.
vertical channel integration.
e.
exclusive distribution.
76. Durable goods such as television sets and appliances generally reach their target markets through ____; goods such as
car batteries and tires generally reach their target markets through _____.
a.
intensive distribution; intensive distribution
b.
exclusive distribution; intensive distribution
c.
selective distribution; exclusive distribution
d.
selective distribution; intensive distribution
e.
selective distribution; selective distribution
77. 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
78. 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 form of
distribution would Honey Farms be likely to use for its new product?
a.
Intensive
b.
Selective
c.
Targeted
d.
Exclusive
e.
Premier
79. 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.
80. For which of the following products would exclusive distribution be most appropriate?
a.
Gasoline
b.
Rolls Royce automobile
c.
Ray-Ban sunglasses
d.
Louis Vitton luggage
e.
Harley-Davidson motorcycle
81. A single leader who controls and organizes a marketing channel is called a
a.
channel champion.
b.
distribution leader.
c.
marketing maverick.
d.
channel captain.
e.
lead distributor.
82. 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.
83. 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.
84. If 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.
85. Overall channel goals and individual channel member goals cannot be achieved together without
a.
conflict.
b.
captains.
c.
leadership.
d.
cooperation.
e.
tying agreements.
86. 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.
87. 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.
88. 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
89. IMA Wholesalers is a distributor of car repair parts and supplies, selling to both retailers and auto repair service
businesses. Recently, IMA has been promoting the Pennzoil brand of oil over the Quaker State brand of oil by offering
larger discounts to the channel members. If IMA 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
90. 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.
91. 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
92. 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.
93. 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.
94. Benetton, 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.
95. The Limited, which produces and retails clothing products in a coordinated channel, is an example of a(n)
a.
administered vertical marketing system.
b.
conventional marketing channel.
c.
channel network.
d.
contractual marketing channel.
e.
corporate vertical marketing system.
96. When channel members are linked by legal agreements that specify each member's rights and responsibilities, ____
exists.
a.
horizontal channel integration
b.
an administered VMS
c.
a corporate VMS
d.
a channel captain
e.
a contractual VMS
97. In an administered vertical marketing system (VMS), interorganizational relationships are
a.
achieved by informal coordination.
b.
formalized through contracts.
c.
combined under the ownership of a single organization.
d.
guided by legal agreements.
e.
achieved by clearly defining the obligations and rights of all channel members.
98. In an administered VMS, informal coordination brings about a high level of interorganizational management.
Nonetheless,
a.
decision making does not take into account the goals of the system.
b.
the channel members do not remain autonomous.
c.
the decision making is not coordinated.
d.
the channel members remain autonomous.
e.
the goals of the individual firms are not congruent with the goals of the system.
99. In the distribution channel for Domino's Pizza, channel members are linked by legal agreements that spell out the
obligations and rights of each member. This is an example of a(n) ____ vertical marketing system.
a.
contractual
b.
administered
c.
corporate
d.
negotiated
e.
institutional
100. Select the greatest advantage of horizontal channel integration.
a.
The flexibility of the channel is decreased.
b.
The markets are more heterogeneous.
c.
The expanded number of units is coordinated.
d.
Efficiencies in advertising, marketing research, and purchasing are increased.
e.
Planning and research are increased to cope with increased competition.
101. To expand the number of its retail outlets in the Washington, D.C. area, Whole Foods bought out a small chain of
organic food stores in northern Virginia. This type of integration is called
a.
vertical.
b.
retail.
c.
horizontal.
d.
backward.
e.
forward.
102. Order processing, inventory management, materials handling, warehousing, and transportation are the activities that
define
a.
wholesaling.
b.
retailing.
c.
physical distribution.
d.
channel management.
e.
drop shipping.
103. The notion of physical distribution is
a.
speed of delivery.
b.
used only by manufacturers.
c.
the movement of products from producers to end users.
d.
primarily the wholesaler's responsibility.
e.
an assessment of distribution costs.
104. When Zappos, Inc., an online marketer of shoes, accessories, and clothing, contracts out the physical distribution task
to third parties such as UPS, this arrangement is called ____. This is due to the fact that UPS does not have managerial
authority within the Zappos marketing channel.
a.
illegal.
b.
logistics.
c.
warehousing.
d.
wholesaling.
e.
outsourcing.
105. If a firm decides to contract its physical distribution functions to third parties that have no managerial authority
within the marketing channel, it is using
a.
outsourcing.
b.
sole-sourcing.
c.
logistics.
d.
wholesaling.
e.
distribution services.
106. Physical distribution activities may be performed by a producer, wholesaler, retailer or
a.
not performed at all.
b.
the customer.
c.
investors in any of the previous three.
d.
solely through technology.
e.
they may be outsourced.
107. As her Internet quilt and bed linen business grew, Danielle could no longer perform all the distribution activities, so
she hired a shipper and an information technology firm to assist with these functions. Danielle is using ____ for physical
distribution for her business.
a.
producers
b.
wholesalers
c.
retailers
d.
selling agents
e.
outsourcing
108. The main objective of physical distribution should be to
a.
decrease costs while increasing market coverage.
b.
increase service and market coverage.
c.
decrease costs while increasing service.
d.
increase market coverage and channel power.
e.
balance costs and market coverage.
109. The best way to reduce overall distribution costs is to
a.
use a total-cost approach to analyze and evaluate the entire system.
b.
minimize the costs associated with materials handling and transportation.
c.
reduce the number of distribution functions that are necessary.
d.
find the cheapest price for each function and use them to create the system.
e.
lower the service standards that the company has.
110. According to the text, physical distribution cost tradeoffs enable firms to
a.
resolve pricing conflicts among channel partners.
b.
minimize risk during test marketing of new products.
c.
reduce costs of all distribution functions simultaneously.
d.
resolve pricing conflicts within industry sectors.
e.
utilize resources for greatest cost-effectiveness.
111. At the annual managers' planning conference, Jackie Conrad asks the other managers to consider her proposal to
increase the quantity of inventory to a five-week supply in order to increase the percentage of completely filled customer
orders from 85 percent to 90 percent. She states that she is willing to trade off the ____ incurred for the positive effect of
better customer service.
a.
lower response time
b.
higher warehousing costs
c.
higher transportation costs
d.
higher order processing costs
e.
higher performance levels
112. An important goal of physical distribution is reducing the time it takes to complete
a.
inventory management.
b.
outsourcing evaluation.
c.
electronic data interchange.
d.
order processing.
e.
cycle time.
113. The United States Postal Service works hard to get priority mail from the sender to the recipient as quickly as
possible in order to compete with companies such as UPS and FedEx. The postal service is competing with UPS and
FedEx in terms of ___.
a.
cycle time.
b.
order processing.
c.
turn-around time.
d.
shipping time.
e.
transportation.
114. A goal of physical distribution is to reduce ____ or how long it takes to complete a process.
a.
time standards
b.
processing time
c.
production
d.
throughput measure
e.
cycle time
115. Order processing is defined as
a.
the receipt and transmission of sales order information.
b.
the second stage in a physical distribution system.
c.
the four main tasks.
d.
the same as order handling.
e.
electronic processing of information.
116. What are the three primary tasks of order processing?
a.
Order receipt, order delivery, order follow-up
b.
Order handling, inventory management, order delivery
c.
Materials handling, warehousing, order delivery
d.
Order handling, order entry, order delivery
