Chapter 12 (Quiz), Principles of Marketing Chapter 12 Quiz
In which of the following situations is the channel a direct marketing channel?
A consumer stops at Dunkin Donuts on the way to work to buy a dozen donuts for the office.
In a channel, one or more independent producers, wholesalers, and retailers is a separate business seeking to maximize its own profits, perhaps even at the expense of the system as a whole. This type of channel is described as what kind of distribution system?
Conventional
Producing a product or service and making it available to buyers requires building relationships with upstream and downstream partners, which are known together as the _____. A) value delivery network B) market channel C) demand chain D) supply chain
D) supply chain
Coach products are sold in a carefully controlled number of locations across the world. Some locations are owned and managed by the firm and some are managed through other retailers. Which type of distribution strategy is Coach using?
Exclusive distribution
There are many ways in which intermediaries in the marketing channel add value to the flow from raw materials to the final consumer. Why would the marketing manager avoid additional intermediaries in the channel structure?
Intermediaries make the transaction less expensive.
Choosing to use multiple forms of resellers can add value to the consumer's purchase. However, increasingly more firms are looking to disintermediate the channel because longer channels can cause problems. Which of the following issues is an advantage of using the longer channel structure?
It tends to focus the targeting.
All members of the channel help to create and perpetuate flow in many ways through to the final customer. Which of the following is an element of flow the marketing manager would avoid when using a longer channel?
Manufacturing flow
Intermediaries provide customers with greater utility in what manner when they shape offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging?
Matching
Apple Computer sells its products such as iTunes and iMovies online, and sells its hardware through its own stores and through other retailers, such as Best Buy and Costco, and through vending machines. How is the Apple distribution system described?
Multichannel marketing
Most companies see their intermediaries as first-line customers and then subsequently partners in the creation of a value delivery system that meets the needs of both the company and its marketing partners. What is the system advised for long-term arrangements with channel members?
Partner relationship management
A company designs a logistics system that will minimize the cost of attaining the firm's distribution objectives. There are traditionally four major functions of the logistics systems. From the following, identify the function that plays a role in decision making other than logistics design.
Pricing the products
Producing a product or service and making it available to buyers requires building relationships with upstream and downstream partners, which are known together as the ________.
supply chain
Apple uses selective distribution for several reasons such as the ability to develop good working relationships with selected channel members and for what other reason? A) It can expect a better-than-average selling effor from the channel member. B) It provides cosumer convenience. C) It provides maximum brand exposure. D) It yields better dealer support and customer service. E) It enhances a distinctive positioning.
A) It can expect a -better-than-average selling effort from the channel member.
In which country do Western companies have perhaps the greatest difficulty penetrating the very lengthy and complex channel system? A) Japan B) Egypt C) India D) China E) Brazil
A) Japan
In which of the following situations is the channel a direct marketing channel? A) Mattresses Plus sells Serta, Sealy, and private label brand mattresses to customers. B) A consumer stops at Dunkin Donuts on the way to work to buy a dozen donuts for the office. C) Pandora charm bracelets sell the basic bracelet and individual charms at department stores, jewelry stores, and at kiosks in the mall. D) A consumer buys a new Toyota at the dealership in her town. E) Walmart sells a variety of products from fresh produce to electronic merchandise.
B) A consumer stops at Dunkin Donuts on the way to work to buy a dozen donuts for the office.
In a channel, one or more independent producers, wholesalers, and retailers is a seperate business seeking to maximize its own profits, perhaps even at the expe3nse of the system as a whole. This type of channel is described as what kind of distribution system? A) Contractual VMS B) Conventional C) Corporate VMS D) Administered VMS E) Horizontal
B) Conventional
Intermediaries provide customers with greater utility in what manner when they shape offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging? A) Contacting B) Matching C) Negotiation D) Financing E) Promoting
B) Matching
Which of the following is an example of a horizontal marketing system? A) century Twenty One Realtors has small offices owned and operated by local residents across America. B) McDonald's restaurants are placed inside Walmart stores. C) Nike does not own any factories that make athletic shoes but subcontracts with many manufacturers across southeast Asia. D) Apple installs Apple vending machines in malls, department stores, and airports. E) McDonald's sells its franchises to local owner/operators givingthose who are already are franchisees the first right of refusal to buy other locations.
B) McDonald's restaurants are placed inside Walmart stores.
Apple Computer sells its products such as iTunes and iMovies online, and sells its hardware through its own stores and through other retailers, such as Best Buy and Costco, and through vending machines. How is the Apple distribution system described? A) Contractual VMS manufacturer-sponsored wholesaler franchise B) Multichannel marketing C) Horizontl marketing system D) Franchise E) A contractual VMS
B) Multchannel marketing
Channel members depend on one another, but they often act alone in their own short-run best interests and often disagree on who should do what and for what rewards. Which of the following best illustrates horizontal conflict? A) Apple sells iPhones at Costco and orders them to not use the brand as a reference price to trade buyers down to cheaper brands. B) One Wendy's franchise in the Chicago region does not contribute to the general Wendy's advertising pool, but due to its excellent location, it benefits from the increased traffic generated by the ads. C) Johnnie Walker Black has provided all stores carrying the scotch with life-sized cutouts of Pierce Brosnan and at Bill's liquors, the staff has taken four of the cutouts and requests additional promo items be shipped to them. D) Due to a shortage of hazelnuts, Nutella cannot get sufficient raw material to make its spread and has told Walmart and Costco the total number of packages to be shipped for the next quarter will be reduced by 25%. E) Wendy's franchisees are unhappy with the price the mandated butcher charges for shipping hamburgers to each store.
B) One Wendy's franchise in the Chicago region does not contribute to the general Wendy's advertising pool, but due to its excellent location, it benefits from the increased traffic generated by the ads.
A company designs a logistics system that will minimize the cost of attaining the firm's distribution objectives. There are traditionally four major functions of the logistics systems. From the following, identify the function that plays a role in decision making other than logistics design. A) Warehousing B) Pricing the products C) Logistics management information D) Transportation E) Inventory management
B) Pricing products
Companies can design their distribution channels as long or as short as they choose to make products and services available to customers in different ways. There are two players that are always part of the channel that delivers value. What are those two player roles? A) The producer and the financier B) The producer and the final consumer C) The negotiator and the financier D) The consumer and the reseller E) The consumer and the financier
B) The producer and the final consumer
In setting the channel objectives, they should be stated in terms of targeted levels of customer service. There are many elements that influence how those objectives are set. Which of the following factors does the marketing manager typically avoid when determining the firm's channel objectives? A) Economic conditions B) The nature of the marketing intermediaries C) Maximization of total channel cost D) the nature of the products and their perishability E) The nature of the company
C) Maximization of total channel cost
Once a firm has defined its channel objectives, it should next identify its major channel alternatives in three dimensions. Those dimensions include the types of intermediaries, the ________ of intermediaries, and the responsibilities of each channel member. A) economic condition B) image C) number D) cost E) longevity
C) number
One of the largest firms in the world is Coca-Cola, which sells its products all over the world in a variety of locations by controlling the manufacture of the syrup, and then selling it only to licensed bottlers. Which type of vertical marketing system is this?
Contractual VMS manufacturer-sponsored wholesaler franchise system
One of the largest firms in the world is Coca-cola, which sells its products all over the world ina variety oflocations by controlling the manufature of the syrup, and then selling it only to liscensed bottlers. Which type of vertical marketing system is this? A) Contractual VMS the manufacturer/sponsered retailer franchise-system B) Horizontal marketing system C) Administered VMS D) Contractual VMS manufacturer-sponsered wholesaler franchise system E) Contractual VMS service-firm-sponsored retailer franchise system
D) Contractual VMS manufacturer-sponsored wholesaler franchise system
Distribution channel decisions are integrated into decisions about other variables within the marketing mix. In what way, however, are distribution decisions different from other mix decisions? A) The firm can find alternative channels of distribution easily. B) New products development operates independent of channel decisions. C) Firms pay too much attention to channel decisions. D) Distribution channel decisions tend to e long term when compared to decisions about other mix variables. E)Decisions can be changed more easily than the advertising strategy.
D) Distribution channel decisions tend to be long term when compared to decisions about other mix variables.
Coach products are sold in a carefully controlled number of locations across the world. Some locations are owned and managed by the firm and some are managed through other retailers. Which type of distribution strategy is Coach using? A) Intensive distribution B) a contractual VMS C) Selectrive distribution D) Exclusive distribution E) Franchise
D) Exclusive distribution
Choosing to use multiple forms of resellers can add value to the consumer's purchase. However, increasingly more firms are looking to disintermediate the channel because longer channels can cause problems. Which of the following issues is an advantage of using the longer channel structure? A) It is more difficult for the producerto control marketing of the product. B) It will cost more. C) It is more difficult to control the channel flow D) It tends to focus the targeting. E) It creates potential conflict between channel members.
D) It tends to focus on targeting
Most companies see their intermediaries as first-line customers and then subsequently partners in the creation of a value delivery system that meets the needs of both the company and its marketing partners. What is the system advised for long-term arrangements with channel members? A) Full-line forcing B) Exclusive dealing C) Tying agreement D) Partner relationship management E) Exclusive territorial agreement
D) Partner relationsihp management
An important element of managing the channel is designing its structure from the outset. Four of the following are significant factors in channel design. Which of the following factors does the marketing manager want to avoid when designing the channel? A) Analyzing consumer needs B) Identifying major channel alternatives C) Evaluating channel alternatives D) Pricing the product E) Setting objectives for the channel
D) Pricing the product
Because logistics is complicated and viewed as a hassle by many firms, increasingly a growing number of firms now outsource some or all of their logistics to firms such as Ryder, Penske Logistics, BAX Global, DHL Logistics, FedEx Logistics, and UPS Business Solutions. What are firms like Ryder and FedEx called? A) Cross-functional, cross company teams B) Shared projects C) Vendor-managed inventory (VMI) D) Third-party logistics (3PL) providers E) Integrted logistics management
D) Third-party logistics (3PL) providers
Distribution channel decisions are integrated into decisions about other variables within the marketing mix. In what way, however, are distribution decisions different from other mix decisions?
Distribution channel decisions tend to be long term when compared to decisions about other mix variables.
There are many ways in which intermediaries in the marketing channel add value to the flow from raw materials to the final consumer. Why would the marketing manager avoid additional intermediaries in the channel structure? A) Intermediaries reduce the amount of work that must be done. B) Intermediaries buy in bulk and break into smaller, more manageable amounts for consumers. C) Intermediaries broaden the assortment offered to customers. D) Intermediaries transform the goods into assortments that customers want. E) Intermediaries make the transaction less expensive.
E) Intermediaries make the transaction less expensive.
All members of the channel help to create a perpetuate flow in many ways through the final customer. Which of the following is an element of flow the marketing manager would avoid when using a longer channel? A) Physical flow B) Ownership flow C) Payment flow D) Promotional flow E) Manufacturing flow
E) Manufacturing flow
American Standard Plumbing Supplies makes bathtubs, washbowls, toilets, and other items for the bathroom. To expand the firm's reach and offer greater service, it relies on wholesalers, retailers, and other resellers to help move the product toward the consumer. What are these intermediaries called? A) Suppliers B) Value delivery network C) Direct marketing channels D) Indirect marketing channels E) Marketing channels
E) Marketing channels
Piggyback and fishyback are forms of what logistics element? A) Pipelines B) Integrated logistics management C) Electronic data interchange (EDI) D) Just-in-time logistics E) Multimodal transportation
E) Multimodal transportation
Originally consumers went to bookstores like Borders and B. Dalton to buy books. Amazon started shipping books to buyers who bought online, and then invented the Kindle to electronically "ship" books to the reader's device. This technology is defined as _____ of the channel by Amazon. A) indiret marketing B) intensive distribution C) a franchise D) flow E) disintermediation
E) disintermediation
Apple uses selective distribution for several reasons such as the ability to develop good working relationships with selected channel members and for what other reason?
It can expect a better-than-average selling effort from the channel member.
In which country do Western companies have perhaps the greatest difficulty penetrating the very lengthy and complex channel system?
Japan
American Standard Plumbing Supplies makes bathtubs, washbowls, toilets, and other items for the bathroom. To expand the firm's reach and offer greater service, it relies on wholesalers, retailers, and other resellers to help move the product toward the consumer. What are these intermediaries called?
Marketing channels
In setting the channel objectives, they should be stated in terms of targeted levels of customer service. There are many elements that influence how those objectives are set. Which of the following factors does the marketing manager typically avoid when determining the firm's channel objectives?
Maximization of total channel cost
Piggyback and fishyback are forms of what logistics element?
Multimodal transportation
Channel members depend on one another, but they often act alone in their own short-run best interests and often disagree on who should do what and for what rewards. Which of the following best illustrates horizontal conflict?
One Wendy's franchise in the Chicago region does not contribute to the general Wendy's advertising pool, but due to its excellent location, it benefits from the increased traffic generated by the ads.
An important element of managing the channel is designing its structure from the outset. Four of the following are significant factors in channel design. Which of the following factors does the marketing manager want to avoid when designing the channel?
Pricing the product
Companies can design their distribution channels as long or as short as they choose to make products and services available to customers in different ways. There are two players that are always part of the channel that delivers value. What are those two player roles?
The producer and the final consumer
Originally consumers went to bookstores like Borders and B. Dalton to buy books. Amazon started shipping books to buyers who bought online, and then invented the Kindle to electronically "ship" books to the reader's device. This technology is defined as ________ of the channel by Amazon.
disintermediation
Once a firm has defined its channel objectives, it should next identify its major channel alternatives in three dimensions. Those dimensions include the types of intermediaries, the ________ of intermediaries, and the responsibilities of each channel member.
number
Which of the following is an example of a horizontal marketing system?
McDonald's restaurants are placed inside Walmart stores.
Because logistics is complicated and viewed as a hassle by many firms, increasingly a growing number of firms now outsource some or all of their logistics to firms such as Ryder, Penske Logistics, BAX Global, DHL Logistics, FedEx Logistics, and UPS Business Solutions. What are firms like Ryder and FedEx called?
Third-party logistics (3PL) providers
