Marketing Channels and Supply Chain Practice Quizzes

Which of the following levels of market coverage is desirable when a special effort, such as customer service from a channel member, is important to customers?

Selective distribution

Which of the following is an advantage of using an industrial distributor?

They help reduce a producer's financial burdens by extending credit to customers.

The driving force behind marketing channel decisions should be

a. customer satisfaction.

When Bud Light Orange beer was introduced as part of the Anheuser-Busch product line, the company most likely used ____ distribution.

a. intensive

Cassy and James both are buying new iPhones this week. Cassy goes to the Apple store because she wants to actually see the phone before she makes a final decision. James knows that he does not need to see the phone, because he just wants an upgrade from his older version. He simply orders it online from apple.com. Cassy is purchasing her phone through _____, while James is purchasing his through _____.

b. a retailer; a direct-marketing channel

The notion of logistics is

b. the activities used to move products from producers to end users.

The main reason a manufacturer will prohibit intermediaries from selling its products outside designated sales territories is to

b. tighten its control over distribution of its products.

Suppose that Faust Distributing has been told that it cannot carry the beers made by Anheuser-Busch because it also carries the products of the competitor, Miller Brewing Company. Faust is then told that it must drop the Miller brands in order to carry the Anheuser-Busch products. If this were true, Anheuser-Busch would be engaging in which of the following channel management practices?

c. Exclusive dealing

_______ involves developing and maintaining adequate assortments of products to meet customers' needs.

c. Inventory management

When produce companies such as Dole Bananas bypass wholesalers and sell directly to retailers, it is likely to

c. create channel conflict between Dole and these wholesalers.

Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through

containerization

The most popular type of vertical marketing system is the _______.

contractual

A goal of logistics is to reduce ____ or how long it takes to complete a process.

cycle time

A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances?

d. When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force

Assuming everything else is equal, the most cost-efficient way for ConocoPhillips to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be

d. pipelines.

Multichannel distribution is characterized as

d. the use of a variety of marketing channels to ensure maximum distribution.

Disney sells apparel, cookie jars, puzzles, photo albums, and other items featuring its popular characters directly through its own retail outlets. This is an example of

d. vertical channel integration.

Tesco is a large U.K. supermarket. The firm's supply chain operates using a number of _______ to receive, store, and redistribute its many goods. Two of these facilities are used for frozen food. Many of the facilities are designed for the rapid flow of food products. They use automation such as forklifts and hoists to collect and move products to loading docks.

distribution centers

The primary difference between a manufacturers' agent and an industrial distributor is that

e. A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does.

For which of the following products would exclusive distribution be most appropriate?

e. Rolls Royce automobile

Vertical channel integration

e. is made possible by purchasing the operations of a channel member.

Eliminating a wholesaler from a marketing channel will

e. not eliminate the functions performed by that wholesaler.

In any one large metropolitan area, there is usually just one Ferrari luxury sports car dealer. This best illustrates _______.

exclusive distribution

Companies that sell products with high profit margins are more likely to use _______. Companies selling products whose sales are directly related to product availability will most likely use _______.

exclusive distribution; intensive distribution

When a producer, wholesaler, or retailer has the ability to influence another channel member's goal achievement, it _______.

has channel power

If PetSmart began to acquire very successful local pet stores, this would be an example of _______.

horizontal integration

Aaron Whitley's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Aaron works for carries inventories of the tools, which reduces capital requirements for the producers. Aaron's company is an example of a(n) ____ in a distribution channel.

industrial distributer

Which of the following levels of market coverage is most appropriate for products that have a high replacement rate, require almost no service, and are bought based on price cues?

intensive distribution

Because of the significant investment many companies have in the products they sell to customers, they must develop and maintain adequate varieties of products to meet their customers' needs. This is called

inventory management

Dell Computer and Harley Davidson are well known for their use of the just-in time (JIT) approach. To which of the following physical distribution activities does the JIT approach belong?

inventory management

The use of a variety of marketing channels to ensure maximum distribution is best called _______.

multichannel distribution

Which of the following involves the processes to obtain resources to create value through sourcing, purchasing, and recycling including materials and information?

procurement

When you buy a new backpack from LLBean.com, which of the following consumer marketing channels are you using?

producer to consumer

Which of the following business marketing channels is most likely to be used?

producer to consumer

Which of the following is often favored by intermediaries?

restricted sales territories

When Jennifer buys organic produce for her household using a channel with just one intermediary, that intermediary is classified as a

retailer

Which of the following integrates the functions of operations management, logistics management, procurement, and marketing channel management so that products are produced and distributed in the right quantities, to the right locations, and at the right times?

supply chain management

Supply chain management should begin with a focus on _______.

the customer

Which of the following have special expertise in core physical distribution activities such as warehousing, transportation, inventory management, and information technology and can often perform these activities more efficiently?

third-party logistics firms

Hulu enables consumers to watch select TV shows whenever they want instead of when they are broadcast. This illustrates _______.

time utility

Suppliers may use _______ to get rid of slow-moving inventory, while a franchiser may use them to maintain quality control and protect the franchiser's reputation

trying agreements

When a single channel member manages an integrated marketing channel to achieve low-cost, effective distribution for satisfying target markets, ____ exists.

vertical marketing system

Which of the following provides time utility by enabling firms to compensate for dissimilar production and consumption rates?

warehousing