Homework answers / question archive / Harran University - Yeniehir Campus MGT 201 Marketing Defined, Explained, Applied, 2e (Levens) Chapter 14 Supply Chain and Distribution Strategies 1)Which of the following is defined as the process of delivering products and services to customers? A)           logistics B)            channel management C) distribution D)           supply chain management E)            transportation management   2)            Producers benefit from using intermediaries because they         

Harran University - Yeniehir Campus MGT 201 Marketing Defined, Explained, Applied, 2e (Levens) Chapter 14 Supply Chain and Distribution Strategies 1)Which of the following is defined as the process of delivering products and services to customers? A)           logistics B)            channel management C) distribution D)           supply chain management E)            transportation management   2)            Producers benefit from using intermediaries because they         

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Harran University - Yeniehir Campus

MGT 201

Marketing Defined, Explained, Applied, 2e (Levens)

Chapter 14 Supply Chain and Distribution Strategies

1)Which of the following is defined as the process of delivering products and services to customers?

A)           logistics

B)            channel management C) distribution

D)           supply chain management

E)            transportation management

 

2)            Producers benefit from using intermediaries because they          . A) offer greater efficiency in making goods available to target markets

B)            bring a fresh point of view to strategy development

C)            eliminate risk

D)           are generally backlogged with orders

E)            refuse to store products for longer than a few days

 

3)            Which of the following is the term for resellers, brokers, and facilitators that improve the effectiveness of a marketing channel?

A)           third-party logistics providers

B)            channel leaders

C)            channel intermediaries

D)           logistics managers

E)            consignees

 

4)            Offering credit to buyers and gathering information are both examples of           

functions provided by channel intermediaries.

A)           communication

B)            marketing

C)            exchange D) facilitating

E) physical

 

5)            Breaking bulk and creating assortments are both examples of    functions provided by channel intermediaries.

A)           communication

B)            marketing

C)            exchange

D)           facilitating E) physical

 

6)            Which of the following is NOT a typical marketing channel intermediary?

A)           wholesaler

B)            retailer

 

C)            facilitator

D)           government agency

E)            agent

 

7)                           are intermediaries that facilitate the exchange of products but do not take title to anything they sell.

A)           Wholesalers

B)            Retailers

C)            Independent intermediaries

D)           Merchants E) Agents

 

8)            An intermediary who     has purchased the goods being handled.

A)           breaks bulk B) takes title

C)            creates assortments

D)           takes consignments

E)            selectively distributes

 

9)            Which of the following should be the first step in designing a channel strategy?

A)           identifying channel objectives

B)            understanding the desires of the target customer

C)            analyzing channel alternatives

D)           evaluating intermediaries

E)            exploring international opportunities

 

10)          In a(n)   channel, the same member both produces and distributes a product or service.

A)           tiered B) direct

C)            horizontal

D)           vertical

E)            exclusive

 

11)          To a producer of goods, a greater number of channel levels means          and greater channel complexity.

A)           less distance between producer and end consumer B) less control over the distribution process

C)            fewer potential channel conflicts

D)           higher taxes

E)            fewer channel partners

 

12)          At minimum, a channel of distribution consists of a producer and a(n)    .

A)           wholesaler

 

B)            agent

C)            broker

D)           intermediary E) customer

 

13)          Which of the following is an example of a complete business-to-business channel?

A)           producer to retailer to consumer

B)            producer to wholesaler to retailer to consumer

C)            producer to agent

D)           producer to facilitator

E)            producer to dealer to customer

 

14)          Which of the following is in place when a manufacturer makes use of more than one type of channel?

A)           multichannel distribution system

B)            intermediation

C)            third-party logistics

D)           supply chain management

E)            vertical marketing system

 

15)          When marketers determine the distribution intensity for a product, they are determining the   of a channel level.

A)           width

B)            length

C)            logistics

D)           assortment

E)            mode

 

16)          When determining the distribution intensity, three strategies are available to marketers: intensive, exclusive, and   distribution.

A)           multichannel B) selective

C)            international

D)           direct

E)            extensive

 

17)          Sometimes a producer of luxury products chooses only one or a few dealers in a territory to distribute its products in order to maintain a sense of prestige for the products. Generally these dealers are given a right to                distribution.

A)           exclusive

B)            selective

C)            intensive

D)           administered

E)            corporate

 

 

 

18)          Which type of distribution is used when the producer wants more than one, but fewer than all, of the intermediaries who are willing to carry its products?

A)           exclusive B) selective

C)            intensive

D)           administered

E)            corporate

 

19)          A selective distribution strategy is most suitable for which consumer product category?

A)           convenience products

B)            unsought goods C) shopping products

D)           luxury products

E)            materials and supplies

 

20)          An intensive distribution strategy is most suitable for which consumer product category?

A)           convenience products

B)            unsought goods

C)            shopping products

D)           luxury products

E)            materials and supplies

 

21)          A conventional channel consists of one or more                producers, wholesalers, and retailers.

A)           product-related B) independent

C)            contract

D)           estranged

E)            merchant

 

22)          An advantage of a vertical marketing system (VMS) in comparison to a conventional channel organization is that it acts as a(n)            system. A) unified

B)            more creative

C)            profit-driven

D)           customer-driven

E)            independent

 

23)          In a         channel organization, two or more companies at one level join together to form an alliance.

A)           franchise

 

B)            horizontal

C)            VMS

D)           multichannel

E)            conventional

 

24)                         conflict occurs between different levels of the same channel, while

                conflict occurs among firms at the same level of the channel.

A)           Horizontal; vertical B) Vertical; horizontal

C)            Contractual; corporate

D)           Corporate; franchise

E)            Wholesaler; retailer

 

25)          Multichannel conflict refers to conflicts between              . A) multiple channel types

B)            channel members at different levels

C)            independent channel members at the same level

D)           consumer and business channels

E)            outbound and inbound channels

 

26)          Which of the following is another name for the channel leader?

A)           materials expert

B)            logistics manager

C)            consigner

D)           channel captain

E)            logistics leader

 

27)                         is the coordination of all activities related to the transportation or delivery of products and services that occur within the boundaries of a single business or organization.

A)           Third-party logistics B) Logistics

C)            Channel management

D)           Supply chain management

E)            Transportation management

 

28)          Marketing logistics involves getting the right product to the right customer in the right place at the right time at the right price. Which of the following is NOT included in this process?

A)           planning the physical flow of goods and services

B)            implementing the plan for the flow of goods and services

C)            controlling the physical flow of goods, services, and information D) gathering customer's ideas for new products

E) A and C

 

29)                         is the coordination of all internal and external activities that affect a company's distribution process.

A)           Third-party logistics

B)            Logistics

C)            Channel management

D)           Supply chain management

E)            Transportation management

 

30)                         broadens the logistics concept to include all organizations, both inside and outside of a firm, that affect the distribution process.

A)           Reverse logistics

B)            Supply chain management

C)            A vertical marketing system (VMS)

D)           Just-in-time management

E)            Physical distribution

 

31)          Marketing logistics involves which of the following flows of products and information?

A)           outbound and inbound only

B)            outbound, inbound, and reverse

C)            inbound and reverse only

D)           outbound and reverse only

E)            outbound only

 

32)                         logistics controls the movement of products from points of production to consumers.

A)           Inbound

B)            Reverse C) Outbound

D)           Vertical

E)            Horizontal

 

33)                         logistics concerns the methods consumers use to send products to a producer for return or repair.

A)           Inbound B) Reverse

C)            Outbound

D)           Vertical

E)            Horizontal

 

34)          Which of the following is NOT an area of responsibility for a logistics manager?

A)           information

B)            storage location C) marketing

 

D)           inventory

E)            production

 

35)          Instead of handling its logistics systems internally, a firm could hire a(n)

                company to manage all or part of its distribution network.

A)           just-in-time

B)            RFID

C)            SKU

D)           TMS E) 3PL

 

36)          To reduce inventory management costs, many companies use a system called

                , which involves having goods delivered exactly when they are needed.

A)           reduction-inventory management B) just-in-time inventory management

C)            limited inventory logistics

D)           supply chain management

E)            economic order quantity

 

37)          A producer that minimizes possession time would be most likely to expect which of the following benefits?

A)           better information flows among channel members

B)            more easily accessible storage locations C) greater production capability

D)           reduced horizontal conflict

E)            reduced vertical conflict

 

38)          Physical distribution focuses on logistics.

A)           inbound

B)            horizontal

C)            vertical D) outbound

E) reverse

 

39)                         refers to the storage of goods awaiting transport or shipping.

A)           Produce B) Inventory

C)            Distribution

D)           Bulk

E)            Supply

 

40)          Of the three parties involved in the distribution process,              are responsible for receiving the distributed goods.

A)           shippers

 

B)            brokers

C)            agents

D)           carriers E) consignees

 

41)          Of the three parties involved in the distribution process,              own the goods that are being distributed.

A)           shippers

B)            brokers

C)            agents

D)           carriers

E)            consignees

 

42)          Of the three parties involved in the distribution process,              are responsible for physically transporting the goods.

A)           shippers

B)            brokers

C)            agents D) carriers

E) consignees

 

43)          The most widely used form of transport is           .

A)           water

B)            air C) truck

D)           pipeline

E)            rail

 

44)          Which of the following transportation modes has the highest cost?

A)           water

B)            truck C) air

D)           pipeline

E)            rail

 

45)          A             is a physical facility used primarily for the storage of goods held in anticipation of sale or transfer within the marketing channel.

A)           stock-keeping unit

B)            wholesaler

C)            retail outlet D) warehouse

E) showroom

 

46)          Warehouses reduce large product shipments into smaller ones more suitable for

 

individual retailers. This process is called               .

A)           creating assortments B) breaking bulk

C)            third-party logistics

D)           order processing

E)            inventory control

 

47)          A warehouse serves the function of       when it provides a variety of products in one location.

A)           creating assortments

B)            just in time processing

C)            third-party logistics

D)           order processing

E)            inventory control

 

48)          Another name for a large warehouse is a              .

A)           third-party logistics company

B)            cross-dock

C)            transportation management system D) distribution center

E) stock-keeping unit

 

49)          SKU numbers and bar codes are both used to    .

A)           identify retail price

B)            identify materials and components C) monitor inventory

D)           break bulk

E)            identify end retailers

 

50)          Through the use of         tags, a company can use a computer that receives information from an electronic chip to locate exactly where a product is from production to shipment.

A)           RFID

B)            UPC

C)            VMS

D)           IT

E)            3PL

 

51)          Steve's Physco Skates sells its products to Walmart, which then sells them to the consumer. This is an example of a(n)                .

A)           direct marketing channel

B)            zero-level channel

C)            indirect marketing channel

D)           horizontal channel

E)            vertical marketing system

 

 

 

52)          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 that 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.

 

 

53)          Chewing gum is stocked in many outlets in the same market or community; in fact, it is placed in as many outlets as possible. This is an example of               distribution.

A)           exclusive

B)            selective

C)            multichannel D) intensive

E) vertical

 

54)          Which product will most likely be exclusively distributed? A) BMW cars

B)            Levi's blue jeans

C)            Bazooka bubble gum

D)           Prairie Farms yogurt

E)            Coca-Cola

 

55)          Which of the following is an example of a multichannel distribution system?

A)           Walmart locating to several countries B) JC Penney's catalog and retail store sales

C)            Avon's door-to-door distribution

D)           Starbuck's location inside of book stores

E)            a hotel providing guest privileges at a health spa across the street

 

56)          When two Taco Bell restaurants have a disagreement over who should be able to sell in quantity at a discount to the local high school band, they are in a          conflict.

A)           vertical

B)            multichannel

C)            no-win D) horizontal

E) functional

 

57)          Staples Office Supply opened an online store that created competition with many of its dealers. The corporate office created a           conflict.

 

A)           multichannel

B)            conventional

C)            logistics

D)           horizontal

E)            intermediation

 

58)          Which of the following is an example of horizontal channel conflict?

A)           managers of two separate Holiday Inns disagreeing over what constitutes poor service

B)            United Airlines competing with Northwest Airlines for customers

C)            disgruntled factory workers complaining about a small pay raise

D)           the BMW dealership in Fort Wayne complaining that the BMW dealership in Indianapolis is situated too close

E)            A and D

 

59)          Grayville Rock and Gravel, located in a seaport town, sells rock, gravel, and sand to local markets. It has just been awarded a contract with a company 500 miles down the coast. Management should consider switching from truck to transport. A) water

B)            rail

C)            pipeline

D)           air

E)            reverse

 

60)          Jewels for the Rich and Famous sells very exclusive jewelry with a minimum price of $25,000 to customers around the world. Speed of delivery to distant markets is a must. Management should consider using   as its main carrier.

A)           rail B) air

C)            trucks

D)           pipelines

E)            water

 

61)          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

 

62)          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)            directing logistics

D)           managing knowledge

E)            managing relationships

 

Refer to the scenario below to answer the following questions.

 

Miller Meat Company contracts with several Midwestern farmers to raise beef and pork for its meat processing center. To guarantee freshness, Miller Meat Company relies on a vast distribution network. For delivery to local grocers in Indiana, Miller Meat uses its own fleet of refrigerated trucks; delivery to these Indiana grocers constitutes 65 percent of Miller Meat's business. For deliveries in Illinois, Wisconsin, and points directly west of the Mississippi River, Miller Meat Company contracts with a refrigerated fleet that specializes in expediting smaller shipments. For faster delivery during peak times, Miller Meat Company often uses its own trucks to deliver to the expedited fleet's consolidation point from its distribution warehouse in Indiana. During the holiday season, however, several specialty distributors contract with Miller Meat Company to package specialty meats in gift boxes, then ship them directly to the recipients. For these specialty shipments within Indiana, Illinois, and Wisconsin, Miller uses its normal delivery mode. For all other specialty shipments, Miller ships from its distribution warehouse via air, then contracts with expedited carriers in various cities to deliver to the recipients.

 

63)          Which of the following would be involved in Miller Meat Company's inbound logistics management?

A)           local grocers in Indiana who sell the company's products

B)            Midwestern farmers who raise beef and pork for the meat processing center

C)            the refrigerated fleet that expedites small shipments

D)           air carriers that take Miller's specialty shipments

E)            recipients of Miller's gift boxes

 

64)          Management at a chain of Indiana grocery stores with a long history of purchasing products from Miller Meat is unhappy with the timing of deliveries. In fact, the grocery store's management is considering switching to another meat supplier who will delivery more frequently. This is an example of a(n)         conflict.

A)           independent channel B) vertical

C)            horizontal

D)           intermodal

E)            conventional

 

65)          In using air transportation and then expedited truck carriers to deliver specialty items to customers outside of a designated delivery range, Miller Meats is using

                .

A)           all of its supply chain

B)            a direct channel

C)            indirect marketing

 

D)           intermodal distribution

E)            a vertical marketing system

 

66)          A marketing channel can also be referred to as a channel of distribution.

 

67)          Unlike facilitators, agents do not take title to products.

 

68)          In general, approximately 30% to 50% of the final selling price of a product can be attributed to distribution costs.

 

 

69)          Intensive distribution seeks many outlets in a market, while selective distribution seeks only one outlet in a given market area.

 

 

70)          When customers prefer a wide assortment of products, it makes sense to select a longer channel structure.

 

 

71)          Conventional and horizontal channels do not have channel leaders.

 

72)          A channel captain can motivate channel members through financial incentives.

 

73)          Logistics involves the coordination of all organizations that affect a producer's distribution process, while supply chain management involves only the coordination of inbound flow of products and services to a producer.

 

 

74)          Despite storage and maintenance costs, most companies find it profitable to hold inventory for long periods of time.

 

 

75)          Freight distribution is also known as intermodal distribution.

 

76)          Liquids such as oil and natural gas can be transported through pipelines.

 

77)          A transportation management system can be used to automate the shipping process and to make recommendations on carrier selection.

 

 

78)          A major role played by intermediaries is to buy large quantities of products from many producers and break them down into the smaller quantities and broader assortments wanted by consumers.

 

 

 

79)          A Universal Product Code (UPC) is a retail bar code that can be used to monitor inventory.

 

 

80)          Goods that are cross-docked are warehoused, but the warehouse does not take title to the goods.

 

 

81)          Liz owns and operates a small business making special occasion candies and chocolates. She sells the candies and chocolates through a Web site and contracts with UPS to deliver her products. Liz's business is an example of a direct marketing channel.

 

 

82)          When Sherwin Williams Paint Company has single ownership of integrated, successive stages of production and distribution, it has created a horizontal channel.

 

83)          Always Fresh Produce Company has a route selling to more than 100 groceries, schools, and restaurants at wholesale prices. Last week, the owners opened up a walk- in discounted consumer produce outlet. Always is now using a multichannel distribution system.