chapter 12 - distributing products and services

Successfully postponing final product configuration can give what to the firm's marketing team? More consumers More money More competition A competitive edge

A competitive edge

Many firms utilize a "brick and click" approach. Which of the following best describes this approach? Physical selling only Online selling is unsuccessful without a physical presence Online selling only A mixture of physical and online selling

A mixture of physical and online selling

Customers in the Responsive supply chain can take on a(n) __________ role Neutral Active Passive Competitive

Active

What is defined as an intermediary that represents either a buyer or a seller on a long-term basis? Broker Wholesaler Distributor Agent

Agent

What is a significant difference between how Agents/Brokers conduct business when compared to other types of intermediaries? Agents/brokers work on behalf of the end consumer Agents/brokers never take ownership of the product Agents/brokers take ownership of the product for less than one year Agents/brokers charge more per product sold

Agents/brokers never take ownership of the product

A firm needs to move a small number of expensive products very quickly. Which method of transportation should the company use? Pipeline Road Air Water

Air

Which of these is not a common intermediary for products? Wholesaler Distributer Agent/broker All of these are common intermediaries for products

All of these are common intermediaries for products

Which of these is not a typical way of transporting physical products? Trucks Barge Train All of these are typical methods of transport

All of these are typical methods of transport

What has been the dominant supply chain model since the Industrial Revolution? Anticipatory Supply Chain None of these Recognition Supply Chain Responsive Supply Chain

Anticipatory Supply Chain

What is defined as an intermediary that brings buyers and sellers together temporarily? Distributor Agent Producer Broker

Broker

What is the goal of geographic postponement? Ship products in anticipation of customer demand at each location None of these Build and stock a portioned line of inventory at all locations Build and stock a full-line inventory at a limited number of strategic locations; don't ship product until an order is received

Build and stock a full-line inventory at a limited number of strategic locations; don't ship product until an order is received

Franchising is an example of which type of vertical marketing system? Supplier VMS Contractual VMS Administered VMS Corporate VMS

Contractual VMS

When entering into a franchising contract, both the franchiser and the franchisee give up some level of: Control Logistics Advertising Funding

Control

What is an advantage to corporate VMS? Low taxes Control of all aspects of the system Low cost Large trust in all channel members

Control of all aspects of the system

What is the hallmark of a contractual VMS? Coordination among channel members is achieved through contractual relationships Financial obligations determine control The company owns the channel No litigation determines power

Coordination among channel members is achieved through contractual relationships

Distributor responsibilities always include: Promotion only None of these Pricing and promotion Distribution functions and promotion

Distribution functions and promotion

Intermediaries should always add ________ to the system. Cost Efficiency Effectiveness Competition

Efficiency

True or False Franchise fees and royalties are constant across industries.

False

True or False Intermediaries create significant change in the final product as it travels from the producer to the customer.

False

The responsive supply chain requires little to no _______ or _______ Warehousing; selling Forecasting; delivering Manufacturing; purchasing Forecasting; warehousing

Forecasting; warehousing

What is defined as an arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration? Franchise Wholesaling Retailing Distribution

Franchise

Which of these is the best example of Contractual VMS? Franchising Ownership Retailing Agent/Broker

Franchising

In a franchising arrangement, the supplier is the _______ and the dealer is the _______. Franchisee; franchisor Franchisor; franchisee

Franchisor; franchisee

Which of these is not an advantage of the Anticipatory Supply Chain? High cost of inventory Maintained competitive advantage Level production schedule Minimized production costs

High cost of inventory

The channel of distribution for bananas can best be described as a(n) Direct Channel Indirect Channel

Indirect Channel

The Marketing Channel is made up of: Buyers and sellers Individuals and organizations Retailers and producers Competitors and suppliers

Individuals and organizations

Barge transportation is good for moving _________ at what type of speed? Small amounts of product at high speeds Large amounts of product at slow speeds Small amounts of product at slow speeds Large amounts of product at high speeds

Large amounts of product at slow speeds

The ________ you can wait to finalize a product in the production cycle to the specifications and quantities required by end users, the ___________ the incidence of wrong manufacturing or incorrect inventory deployment. Longer; more likely Longer; less likely None of these Faster; less likely

Longer; less likely

According to the article, many supermarkets price bananas as a(n) __________ because of their low cost and ability to bring people into stores. None of these Loss leader Credence good Market standard

Loss Leader

Which of these is the correct sequence in the Anticipatory Supply Chain? Warehouse, Manufacture, Deliver, Sell Manufacture, Warehouse, Sell, Deliver Buy components, Buy Materials, Sell, Produce Forecast, Manufacture, Deliver, Buy components

Manufacture, Warehouse, Sell, Deliver

What are the two types of postponement? Manufacturing and geographic Geographic and anticipatory Economic and financial Production and distribution

Manufacturing and geographic

Why are wholesalers, distributors, etc. not described as common intermediaries for services? Most services are delivered directly Services do not follow a marketing channel Service intermediaries are retailers and agents All intermediaries are used equally for delivery of services

Most services are delivered directly

What is defined as the use of a variety of marketing channels to ensure maximum distribution? Intermediary distribution Market analysis Multi-channel distribution Consumer-based decisions

Multi-channel distribution

Who owns the channel in Administered VMS? The company No one Whoever contractually has power None of these

No one

There are __________ intermediaries in most channels of distribution. Exactly two One or more Five or more Zero

One or more

How is power determined in administered VMS? Through outright financial ownership Power is distributed evenly Through contractual relationships One player in the channel has enough power to take control

One player in the channel has enough power to take control

The Responsive Supply Chain is the __________ of the Anticipatory Supply Chain Follow-up Equal All are correct Opposite

Opposite

What is the supply chain? Organizations and activities involved with the flow of products from raw materials to the customer Promotions and offers involved with the flow of activities from raw materials to the customer Products and services involved with the flow of cash from the consumer to the firm None of the above

Organizations and activities involved with the flow of products from raw materials to the customer

Which of the following marketing functions are not taken on by the franchisee? Promotion Risk taking Financing Physical distribution

Physical Distribution

True or False In the Anticipatory Supply Chain, inventory is referred to as a "buffering cost."

True

True or False The initial investment needed for a franchisee to buy into a franchise must come from the franchisee's own pocket.

True

True or False The relationship and responsibilities of the franchisee are very clearly spelled out by the franchisor.

True

True or False Within the supply chain, marketers are specifically concerned with the marketing channel.

True

How many entities are in a direct channel of distribution? Three Four Four or more Two

Two

According to the article, what is a current concern of many organizations along the banana supply chain? Too much variety in species Vulnerability to fungus Competition Over-filling current demand

Vulnerability to fungus

What is defined as a channel intermediary who purchases larger quantities of consumer products and breaks them into smaller quantities to resell to retailers? Agents Distributors Level 1 Retailers Wholesalers

Wholesalers

Why would a firm consider using multi-channel distribution? To increase spending to match competitors To reach as many consumers as possible To advertise widely To target consumers more specifically

To reach as many consumers as possible

Which of these is not a type of vertical marketing system? Corporate VMS Contractual VMS Supplier VMS Administered VMS

Supplier VMS

What makes a marketing channel a vertical marketing system? Size of each channel member is roughly equal The channel is managed by a single channel member The channel's power is equally split between all members Power goes to the member that makes the most money

The channel is managed by a single channel member

Who owns the marketing channel in corporate VMS? The retailers Whoever contractually holds power All members share power The company

The company

What is the primary difference between the Responsive and Anticipatory Supply chains? Market knowledge Timing Media presence Pricing

Timing

The lecture gave an example of different strategies taken on by paint supply stores. One store purchased pre-colored paint in anticipation of demand, and one purchased white paint base and mixed colors to meet demand in-store. What strategy is used by this second store? Market Forecasting Postponement Anticipation Price analysis

Postponement

What is defined as a channel intermediary that resells products to consumers? Retailer Wholesaler Agent/Broker Distributor

Retailer

According to the article, bananas must be monitored for what throughout the supply chain process? Taste Size Ripeness Price

Ripeness

What is the correct timeline for the Responsive Supply Chain? Buy components, Buy Materials, Sell, Produce Sell, Buy Components, Manufacture, Deliver Manufacture, Warehouse, Sell, Deliver Forecast, Manufacture, Buy components, Deliver

Sell, Buy Components, Manufacture, Deliver