Marketing Core Concepts 2e; Pride

Chapter 12 - Marketing channels and supply-chain management

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1.
Most marketing channels have marketing intermediaries. A marketing intermediary's role is to
A.
link wholesalers to other wholesalers.
B.
link producers to other middlemen or to consumers.
C.
always sell products to wholesalers.
D.
not take title to products.
E.
always sell products to retailers.
 


2.
Officeworks is trying to reduce transportation, information management, and administrative costs. To accomplish this goal, channel members need to
A.
work independently.
B.
avoid cooperation due to antitrust considerations.
C.
work with competitors and share information.
D.
increase competition among channel members.
E.
cooperate and accommodate one another's needs.
 


3.
The elimination of marketing intermediaries
A.
reduces the total costs to consumers.
B.
reduces the total number of transactions.
C.
requires that the services they provide be performed by someone else in the marketing channel.
D.
is beneficial to both manufacturers and consumers.
E.
assures consumers of higher product quality.
 


4.
IBM markets mainframe computers directly to businesses. This is an example of a ____________ channel.
A.
producer-to-organisational buyer
B.
producer - to-industrial-distributor -to-business buyer
C.
producer-to-agent-to-business buyer
D.
equipment     .
E.
consumer
 


5.
Jeff Wood's company buys machine tools from large producers and sells them to several manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces capital requirements for the producers. Jeff's company is an example of a (n) ________________ in a distribution channel.
A.
direct distributor
B.
manufacturers' agent
C.
industrial distributor
D.
producers' agent
E.
wholesalers' agent
 


6.
Because Coke is such a popular product and the company is so powerful, Coca-Cola is in a position to exert considerable control over channel structures and the way Coke is marketed. This is an illustration of channel _____________ in the distribution channel.
A.
conflict
B.
leadership
C.
dominance
D.
cooperation
E.
negotiation
 


7.
If Nestle forced Coles' grocery stores to place all of its products in the stores' most favourable locations, it would be
A.
conflict.
B.
captains.
C.
leadership.
D.
cooperation.
E.
tying agreements.
 


8.
Overall channel goals and individual channel member goals cannot be achieved together without
A.
conflict
B.
captains
C.
leadership
D.
cooperation
E.
tying agreements
 


9.
When Benetton, the sportswear designer and manufacturer, decided to open its own specialty shops to sell its merchandise, the firm was engaging in
A.
channel repetition.
B.
vertical channel integration.
C.
channel conflict.
D.
horizontal channel integration.
E.
channel expansion.
 


10.
The Wicks 'N Sticks candle and gift marketing organisation has a (n) _______________ vertical marketing system arrangement with its franchised retail store operations.
A.
corporate
B.
administered
C.
negotiated
D.
contractual
E.
horizontal
 


11.
Product and target market characteristics usually determine the type of coverage a product receives. For which of the following products is selective distribution most_______________ appropriate?
A.
Gasoline
B.
Jaguar automobiles
C.
Cigarettes
D.
Laundry detergent
E.
Moderately priced luggage
 


12.
For which of the following products would exclusive distribution be most appropriate?
A.
Gasoline
B.
Rolls Royce automobile
C.
Washing machine
D.
Laundry detergent
E.
Moderately priced luggage
 


13.
Physical distribution cost tradeoffs enable firms to
A.
resolve pricing conflicts among channel partners.
B.
minimize risk during test marketing of new products.
C.
reduce costs of all distribution functions simultaneously.
D.
resolve pricing' conflicts within industry sectors.
E.
utilize resources for greatest cost-effectiveness.
 


14.
Order processing is defined as
A.
the receipt and transmission of sales order information.
B.
the second stage in a physical distribution system.
C.
the four main tasks.
D.
the same as order handling.
E.
electronic processing of information.
 


15.
Greg Braddock is a physical distribution manager. He is currently developing and maintaining assortments of products that are adequate for customer demand. In which stage of the physical distribution system is Greg currently involved?
A.
Order processing
B.
Materials handling
C.
Inventory management
D.
Transportation
E.
Warehousing
 


16.
What is the reorder point if the usage rate is 10 units per day, the order lead-time is 5 days, and the safety stock is 30?
A.
50
B.
150
C.
80
D.
200
E.
400
 


17.
Eric attends a seminar on just-in-time inventory management. Excited about the idea, he returns to his office at Victorian Auto Supply to start designing such an inventory system. Which one of the following steps must Eric take as he implements this change?
A.
Increase safety stock
B.
Raise the reorder point
C.
Reduce customer service standard
D.
Increase order frequency
E.
Reduce estimates of inventory turnover rate
 


18.
Which of the following physical distribution functions involves the design and operation of facilities for storing goods?
A.
Order processing
B.
Materials handling
C.
Transportation
D.
Warehousing
E.
Inventory management
 


19.
________________ adds time and place utility to a product by moving it from where it is made to where it is purchased and used.
A.
Warehousing
B.
Containerisation
C.
Distribution
D.
Materials handling
E.
Transportation
 


20.
Which transportation option has the best frequency of delivery?
A.
Pipelines
B.
Sea
C.
Road
D.
Air
E.
Railroads
 


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