BNAD 303 Chapter 11
A commission merchant would most likely sell which of the following? A) agricultural products B) extractive materials such as coal and iron C) convenience goods such as gum and candy D) fresh fruits and vegetables E) real estate
A
Accepting legal ownership of a product and assuming the accompanying rights and responsibilities of ownership is known as ________. A) taking title B) wholesaling C) drop shipping D) rack jobbing E) cash-and-carrying
A
Channel members can help producers by identifying customer complaints, customer preferences, and new competitors in the market. These are all examples of the ________ function of channel intermediaries. A) communication B) marketing C) facilitating D) diverting E) risk-taking
A
Developing distribution objectives is the ________ step in distribution planning. A) first B) second C) third D) fourth E) fifth
A
Firms that sell their own products to final customers through websites, catalogs, toll-free numbers, or factory outlet stores are using ________. A) direct channels B) channel intermediaries C) indirect channels D) third parties E) outside entities
A
It is most accurate to say that channels of distribution provide which of the following? A) time, place, and possession utility B) promotion, product, and place utility C) time, place, and form utility D) promotion and form utility E) time and promotion utility
A
Market coverage that is less than intensive distribution but more than exclusive distribution is ________ distribution. A) selective B) inclusive C) direct D) gray market E) extensive
A
To reduce inventory management costs, many companies use a system called ________, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation. A) just-in-time (JIT) B) level loading C) stock-outs D) logistics management E) enterprise resource planning (ERP)
A
Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from Chemical, Inc., then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store. Chemical, Inc. took title to the pool chemicals but never actually took possession of them. Chemical, Inc. is an example of a ________. A) drop shipper B) truck jobber C) rack jobber D) mail-order wholesaler E) cash-and-carry wholesaler
A
Which of the following carry several lines of noncompeting products and use independent salespeople? A) manufacturers' agents B) selling agents C) commission merchants D) merchandise brokers E) sale mediators
A
Which of the following includes all the activities necessary to convert raw materials into a good or service and put it in the hands of the consumer or business customer? A) the supply chain B) the vertical marketing system C) the channel of distribution D) the retailer chain E) the industrial network
A
Which of the following is NOT a channel intermediary? A) the supplier of the raw materials used to make glass windows B) the distributor who sells stained glass windows C) the wholesaler who buys the stained glass window from its creator D) the showroom that displays glass windows for customers to see E) the manufacturers' agent who sells the stained glass windows
A
Which of the following is true about sales branches, sales offices, and manufacturers' showrooms? A) They are all manufacturer-owned intermediaries. B) They all determine the marketing strategy for the products they sell. C) They are all independent intermediaries. D) They all carry inventory and take title to the inventory they carry. E) They perform the same functions as self-service wholesalers.
A
Which of the following statements about a vertical marketing system (VMS) is true? A) A VMS is a channel in which there is cooperation among channel members at two or more different levels of the channel. B) Members of a VMS operate totally independently of one another outside of buying and selling one another's products. C) The three types of vertical marketing systems are independent, conventional, and customized. D) Channel conflict is a more serious problem in a vertical marketing system than in a conventional marketing system. E) Conventional marketing systems are more efficient than vertical marketing systems
A
You own an independent store in your neighborhood and like to offer fresh seafood in your meat display case. Which type of wholesaler is likely to best serve you? A) cash-and-carry wholesaler B) drop shipper C) rack jobber D) selling agent E) commission merchant
A
________ are zero-inventory situations resulting in lost sales and customer dissatisfaction. A) Stock-outs B) Level loads C) Radio frequency IDs D) Inventory turnovers E) Cross-docks
A
A ________ brings buyers and sellers together and facilitates transactions, typically charging a fee after a transaction is completed. A) cash-and-carry wholesaler B) broker C) retailer D) wholesaler E) commission merchant
B
A husband and wife have a small store that is located at a beach resort. The only products sold at this store are hand-dipped and sculptured candles made by this couple. Marketers would classify the channel of distribution for these candles as ________. A) indirect B) direct C) logistic D) reverse E) inbound
B
Distribution channels create ________ because they reduce the number of transactions necessary for goods to flow from many different manufacturers to large number of customers. A) assortments B) efficiencies C) bulks D) quantities E) intermediaries
B
Drop shippers do all of the following EXCEPT which of the following? A) take title to the merchandise B) take actual possession of the merchandise C) take orders from retailers and industry buyers D) bill retailers and industry buyers E) assume the same risks as other types of limited-service merchant wholesalers
B
Ed Barney owns a chain of small gift shops. Before buying merchandise to carry in his store, Barney can visit a ________ where he can examine a manufacturer's products before he stocks his stores. A) sales office B) manufacturer's showroom C) commission merchandise mart D) merchandise brokerage E) manufacturer's office
B
Leadership in a(n) ________ is assumed not through common ownership or contractual ties but through the size and power of a single dominant channel member. A) horizontal marketing system B) administered vertical marketing system C) corporate vertical marketing system D) conventional marketing system E) multiple distribution system
B
Nita can visit her local supermarket and buy a dozen roses, a gallon of milk, two birthday cards, a bag of cat litter, and a pan for roasting a turkey. This illustrates how channels of distribution benefit consumers by ________. A) creating atmospherics B) creating assortments C) diverting products D) managing knowledge E) managing relationships
B
The number of intermediaries at each level of the channel is called ________. A) distribution exclusivity B) distribution intensity C) channel exclusivity D) channel selectivity E) channel intensity
B
The number of times a firm's inventory completely cycles through during a defined time frame is called ________. A) inventory control B) inventory turnover C) average inventory D) current inventory E) inventory benchmarks
B
Through a process of ________, traditional intermediaries are being eliminated as many companies question the value added by layers in the distribution channel. A) knowledge management B) disintermediation C) horizontal marketing D) vertical marketing E) hybrid marketing
B
Through the use of ________, a company is able to know exactly where a product is located within the distribution channel. A) ERP B) RFID C) PRM D) VMS E) JIT
B
To a producer of goods, a greater number of channel levels means ________. A) less distance between producer and end consumer B) less control C) more creativity D) higher taxes E) fewer distribution systems
B
To balance inventory capabilities and production capacity constraints, some companies use a practice called ________, which involves the use of a consistent production schedule, both during and beyond times of peak demand. A) just in time (JIT) B) level loading C) stock outing D) logistics management E) enterprise resource planning (ERP)
B
Which of the following channel intermediaries have unlimited territory and control the pricing, promotion, and distribution of their products? A) manufacturers' reps B) selling agents C) merchandise brokers D) rack jobbers E) sales branches
B
Which of the following is a logistics activity that involves developing and implementing a process to ensure the firm always has sufficient goods available to meet customers' demands, no more and no less? A) materials handling B) inventory control C) supply chain supervision D) order processing E) distribution implementation
B
Which of the following is the term for the set of activities that move finished goods from manufacturers to final customers? A) channel intermediary B) physical distribution C) facilitating function D) breaking bulk E) disintermediation
B
Which of the following statements about merchandise brokers is true? A) Brokers are paid salaries by the manufacturers for whom they work. B) Brokers never take title to the merchandise they sell. C) Brokers work for manufacturer-owned intermediaries. D) Brokers typically represent sellers on an ongoing basis. E) Brokers work in industries with only a few, very large buyers and sellers.
B
Burt can visit his local hardware store and buy one 4-inch paint brush and not the case of 24 brushes that the retailer had to buy. This is an example of how the channel of distribution facilitates ________. A) assortment creation B) risk taking C) breaking bulk D) relationship management E) logistics
C
In a ________, two or more companies at the same channel level join together for a common purpose. A) franchise B) corporate VMS C) horizontal marketing system D) multiple distribution system E) conventional marketing system
C
Longer channels with more intensive distribution are generally best for ________. A) goods that require much technical expertise B) perishable products C) standardized consumer goods D) expensive consumer goods E) products that need to get to the final user quickly
C
Steve's Physco Skates sells its products to Walmart, who then sells them to the consumer. This is an example of a(n) ________. A) direct marketing channel B) producer channel C) indirect marketing channel D) horizontal marketing system E) corporate vertical marketing system
C
The producer-retailer-consumer channel is ________. A) the most efficient channel B) also referred to as a triple channel C) the shortest indirect channel D) the shortest direct channel E) a rarely used channel form
C
What are the three major types of vertical marketing systems? A) corporate, contractual, and chain B) contractual, corporate, and independent C) corporate, contractual, and administered D) administered, independent, and franchised E) corporate, franchised, and conventional
C
Which of the following are manufacturer-owned facilities that do NOT carry inventory but provide selling functions for the manufacturer in a specific geographic area? A) commission merchandise marts B) merchandise brokerages C) sales offices D) sales branches E) manufacturers' showrooms
C
Which of the following is NOT an example of a channel intermediary? A) agent B) broker C) manufacturer D) retailer E) wholesaler
C
Which of the following is a distribution system that uses different channels and communication methods to reach and serve a target market? A) a vertical marketing system B) a horizontal marketing system C) a hybrid marketing system D) a logistics system E) an intensive distribution system
C
Which of the following is most likely to force a manufacturer to pay a slotting allowance? A) a selling agent B) a merchandise broker C) a large retail chain D) a small retailer E) a rack jobber
C
Which of the following statements about manufacturers' agents is true? A) Manufacturers' agents are also called manufacturers' brokers. B) Manufacturers' agents most typically work for only one manufacturer. C) Manufacturers' agents are paid with commissions based on a percentage of their sales. D) Manufacturers' agents have unlimited sales territories. E) Manufacturers' agents market one manufacturer's entire product line.
C
An intermediary providing customer services, such as offering credit to buyers, is an example of the ________ function of distribution channels. A) diverting B) marketing C) breaking bulk D) facilitating E) risk-taking
D
Before a firm evaluates internal and external environmental influences, it should ________. A) select channel partners B) determine a distribution budget C) develop logistics strategies D) develop distribution objectives E) choose a distribution strategy
D
Direct channels ________. A) are more common in consumer markets than B2B markets B) do not operate in B2B markets C) only operate in B2B markets D) are more common in B2B markets than consumer markets E) don't make financial sense in B2B markets
D
Firms or individuals who help move a product from the producer to the consumer or business user are known as ________. A) manufacturers B) producers C) creators D) channel intermediaries E) direct channels
D
Limited-service merchant wholesalers are less likely than full-service merchant wholesalers to do which of the following? A) set the prices of the merchandise they sell B) take title to the merchandise they sell C) suffer financial losses if the merchandise they sell is damaged or stolen D) offer marketing assistance or delivery for the products they sell E) use their own sales force
D
Merchant wholesalers ________. A) are not responsible for losses due to damaged products B) do not set the prices they charge their customers C) do not sell to B2B customers D) can suffer losses if products are stolen E) cannot develop their own marketing strategies
D
Proud Pets, a producer of clothing and accessories for pets, has recently partnered with a regional chain of pet stores. Which of the following would Proud Pets be LEAST likely to expect from its new channel member? A) promoting its products through advertising B) assembling and packaging its products for final sale C) distributing relevant market information D) identifying raw materials and other productive inputs E) taking the risk that items may not sell
D
Which of the following is the best example of a direct channel? A) J&L Manufacturing Company sells drapery hardware to The Home Depot's Design Center, and the Design Center then sells it to consumers. B) Family Dollar Store sells modeling clay to school-age children. C) A wholesaler sells candy to convenience stores, who then sell it to store patrons. D) Farmer Mintz sells corn to the Hughes household, who will eat it for supper. E) A farmer in Colombia sells flowers to an international broker, who makes sure the flowers reach consumers in the United States.
D
An advantage of ________ is enhanced efficiency in markets where there are many small buyers and sellers? A) manufacturers' agents B) selling agents C) export/import agents D) commission merchants E) merchandise brokers
E
At minimum, a channel of distribution consists of a producer and a(n) ________. A) wholesaler B) diverter C) broker D) intermediary E) customer
E
In business-to-business channels, the functions of a merchant wholesaler are performed by a(n) ________. A) sales office B) commission merchant C) merchant broker D) business retailer E) industrial distributor
E
Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from Chemical, Inc., which then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store. Chemical, Inc. is an example of which of the following? A) a diverter B) a truck jobber C) a warehouser D) a hybrid marketer E) a wholesaling intermediary
E
Which group of independent intermediaries can be divided into the two broad types of fullservice and limited-service? A) brokers B) agents C) sales branches D) specialty wholesalers E) merchant wholesalers
E
