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CHAPTER 11

Total questions: 80

Worksheet time: 40mins

Name
Class
Date
1.

Which of the following is the series of firms or individuals that facilitate(s) the movement of a product from the producer to the final customers?

a)

the industrial network

b)

the retailer chain

c)

the multilevel network

d)

the channel of distribution

e)

the conventional marketing system

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 rarely backlogged with orders

e)

will store products indefinitely

3.

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

a)

wholesaler

b)

diverter

c)

broker

d)

intermediary

e)

customer

4.

Which of the following is the term for the firms and individuals who help move a product to the consumer or the business user?

a)

product managers

b)

channel leaders

c)

channel intermediaries

d)

enterprise resource planners

e)

franchisees

5.

It is most accurate to say that channels of distribution provide which of the following?

a)

time, place, and possession utility

b)

promotion, product, and place utility

c)

time, place, and form utility

d)

promotion and form utility

e)

time and promotion utility

6.

Wholesalers and retailers purchase large quantities of goods from manufacturers but sell only one or a few at a time to many different customers. This process is called ________.

a)

creating assortments

b)

breaking bulk

c)

third-party logistics

d)

order processing

e)

inventory control

7.

Wholesalers and retailers create efficiencies in the flow of goods from producer to end consumer by ________ when they provide a variety of products in one location.

a)

creating assortments

b)

just in time processing

c)

breaking bulk

d)

order processing

e)

risk taking

8.

Functions provided by channel intermediaries that make the purchase process easier for customers and manufacturers are referred to as ________ functions.

a)

distributing

b)

facilitating

c)

risk-taking

d)

marketing

e)

wholesaling

9.

Offering credit to buyers and providing refund services for products are both examples of ________ functions provided by channel intermediaries.

a)

diverting

b)

marketing

c)

breaking bulk

d)

facilitating

e)

creating assortment

10.

Channel members can help producers by identifying customer complaints, customer preferences, and new competitors in the market. These are all examples of the ________ function of channel intermediaries.

a)

communication

b)

marketing

c)

promotional

d)

diverting

e)

management

11.

Retailers handle the financial exchange when a customer pays for a product. This is an example of the ________ function of channel intermediaries.

a)

communication

b)

marketing

c)

promotional

d)

transaction

e)

management

12.

A retailer that takes a loss on perishable items that do not sell before their expiration date is an example of the ________ function provided by channel intermediaries.

a)

diverting

b)

marketing

c)

breaking bulk

d)

facilitating

e)

risk-taking

13.

Through a process of ________, traditional intermediaries are being eliminated as many companies question the value added by layers in the distribution channel.

a)

knowledge management

b)

disintermediation

c)

horizontal marketing

d)

vertical marketing

e)

hybrid marketing

14.

Which of the following describes a comprehensive approach to collecting, organizing, storing, and retrieving a firm's information assets?

a)

logistics

b)

knowledge management

c)

facilitation

d)

enterprise resource planning

e)

just in time techniques

15.

The theft and unauthorized repurposing of intellectual material via the Internet is called ________.

a)

subscription boxing

b)

product diversion

c)

online distribution piracy

d)

disintermediation

e)

taking title

16.

Intermediaries that do business with many different manufacturers and many different customers are most accurately referred to as ________.

a)

interdependent intermediaries

b)

dependent intermediaries

c)

independent intermediaries

d)

wholesalers

e)

retail outlets

17.

Limited-service merchant wholesalers are less likely than full-service merchant wholesalers to do which of the following?

a)

set the prices of the merchandise they sell

b)

take title to the merchandise they sell

c)

suffer financial losses if the merchandise they sell is damaged or stolen

d)

offer marketing assistance or delivery for the products they sell

e)

use their own sales force

18.

Which group of independent intermediaries can be divided into the two broad types of full-service and limited-service?

a)

brokers

b)

agents

c)

sales branches

d)

specialty wholesalers

e)

merchant wholesalers

19.

An intermediary who ________ legally owns the goods being handled.

a)

breaks bulk

b)

takes title

c)

creates assortments

d)

takes consignments

e)

earns commission

20.

Truck jobbers are limited-service merchant wholesalers who would most likely handle which of the following?

a)

building materials

b)

fruits and vegetables

c)

coal and lumber

d)

cosmetics

e)

magazines

21.

Mail-order wholesalers are associated with all of the following EXCEPT which one?

a)

selling products to small retailers and other industrial customers

b)

selling products to retailers in remote locations

c)

allowing shipment prior to receiving payment

d)

carrying products in inventory

e)

selling through catalogs

22.

Rack jobbers are limited-service merchant wholesalers who would most likely handle which of the following?

a)

imported plants

b)

precious minerals

c)

agricultural products

d)

perishable food items

e)

magazines

23.

A ________ brings buyers and sellers together and facilitates transactions, typically charging a fee after a transaction is completed.

a)

cash-and-carry wholesaler

b)

broker

c)

retailer

d)

wholesaler

e)

commission merchant

24.

Manufacturers' ________, also called manufacturers' representatives, represent a buyer or seller on an ongoing basis.

a)

brokers

b)

franchisers

c)

agents

d)

retailers

e)

intermediaries

25.

A commission merchant would most likely sell which of the following?

a)

agricultural products

b)

extractive materials such as coal and iron

c)

convenience goods such as gum and candy

d)

fresh fruits and vegetables

e)

real estate

26.

Which of the following is true about sales branches, sales offices, and manufacturers' showrooms?

a)

They are all manufacturer-owned intermediaries.

b)

They all determine the marketing strategy for the products they sell.

c)

They are all independent intermediaries.

d)

They all carry inventory and take title to the inventory they carry.

e)

They perform the same functions as self-service wholesalers.

27.

Which of the following are manufacturer-owned facilities that carry inventory and provide sales and services to customers?

a)

sales offices

b)

sales branches

c)

manufacturers' showrooms

d)

manufacturers' offices

e)

merchandise brokerages

28.

Which of the following are manufacturer-owned facilities that do NOT carry inventory but provide selling functions for the manufacturer in a specific geographic area?

a)

commission merchandise marts

b)

merchandise brokerages

c)

sales offices

d)

sales branches

e)

manufacturers' showrooms

29.

Ed Barney owns a chain of small gift shops. Before buying merchandise to carry in his store, Barney can visit a ________ where he can examine a manufacturer's products before he stocks his stores.

a)

sales office

b)

manufacturer's showroom

c)

commission merchandise mart

d)

merchandise brokerage

e)

manufacturer's office

30.

To a producer of goods, a greater number of channel levels means ________.

a)

less distance between producer and end customer

b)

less control

c)

more creativity

d)

higher taxes

e)

multiple distribution systems

31.

The producer-retailer-consumer channel is ________.

a)

the most efficient channel

b)

also referred to as a triple channel

c)

the shortest indirect channel

d)

the shortest direct channel

e)

a rarely used channel form

32.

Which of the following is in place when a producer, dealer, wholesaler, retailer, or customer interacts with more than one type of channel?

a)

dual or multiple distribution system

b)

intermediation

c)

knowledge management

d)

supply chain management

e)

vertical marketing system

33.

A new company called LidRock is prospering because it figured out a novel way to get music, video games, and movies into the hands of consumers: on mini-CDs tucked into the lids of soft drinks. LidRock is focusing on which one of the four Ps?

a)

product

b)

price

c)

promotion

d)

place

e)

profit

34.

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, who 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.

35.

A husband and wife have a small store that is located at a beach resort. The only products sold at this store are hand-dipped and sculptured candles made by this couple. Marketers would classify the channel of distribution for these candles as ________.

a)

indirect

b)

direct

c)

logistic

d)

reverse

e)

inbound

36.

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

37.

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)

diverting products

d)

managing knowledge

e)

managing relationships

38.

Which of the following is NOT a channel intermediary?

a)

the supplier of the raw materials used to make glass windows

b)

the distributor who sells stained glass windows

c)

the wholesaler who buys the stained glass window from its creator

d)

the showroom that displays glass windows for customers to see

e)

the manufacturers' agent who sells the stained glass windows

39.

Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from Chemical, Inc., which then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store. Chemical, Inc. is an example of which of the following?

a)

a diverter

b)

a truck jobber

c)

a warehouser

d)

a hybrid marketer

e)

a wholesaling intermediary

40.

A business buys candy and gum from many different manufacturers and then resells the items to a variety of different stores. The business is an example of a(n) ________.

a)

independent intermediary

b)

manufacturer-owned intermediary

c)

disintermediator

d)

diverter

e)

brokerage company

41.

You own an independent store in your neighborhood and like to offer fresh seafood in your meat display case. Which type of wholesaler is likely to best serve you?

a)

cash-and-carry wholesaler

b)

drop shipper

c)

rack jobber

d)

selling agent

e)

commission merchant

42.

An independent hardware retail store 100 miles from the nearest city of more than 5,000 people but providing needed supplies for area ranchers would most likely buy its plumbing and electrical supplies through a ________.

a)

truck jobber

b)

commission merchant

c)

mail-order wholesaler

d)

rack jobber

e)

merchandise broker

43.

Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from Chemical, Inc., then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store. Chemical, Inc. took title to the pool chemicals but never actually took possession of them. Chemical, Inc. is an example of a ________.

a)

drop shipper

b)

truck jobber

c)

rack jobber

d)

mail-order wholesaler

e)

cash-and-carry wholesaler

44.

Which of the following is an example of a dual distribution system?

a)

Walmart locating in several countries

b)

J.C. Penney's catalog and retail store sales

c)

Avon's door-to-door distribution

d)

Starbucks located inside a bookstore

e)

a hotel providing guest privileges at a nearby health spa

45.

Which of the following should be the first step in distribution planning?

a)

identifying the channel leader

b)

determining a distribution budget

c)

developing distribution objectives

d)

evaluating the internal and external environments

e)

determining the desired level of distribution intensity

46.

Once an organization has developed its distribution objectives, it should next ________.

a)

identify the channel leader

b)

determine a distribution budget

c)

select the optimum number of channel levels

d)

define the target market and articulate the market segmentation strategy

e)

evaluate the internal and external environments

47.

Conventional distribution channels consist of one or more ________ producers, wholesalers, and retailers.

a)

independent

b)

product-related

c)

contract

d)

merchant

e)

domestic

48.

Which of the following is NOT a true statement about conventional marketing systems?

a)

Conventional marketing systems are multilevel distribution channels.

b)

Most conventional marketing systems are highly successful.

c)

Members of conventional marketing systems work independently of one another.

d)

Members of conventional marketing systems do not work toward the same broad goals.

e)

Relationships between members of conventional marketing systems are limited to simply buying and selling from one another.

49.

A channel consisting of one or more independent producers, wholesalers, or retailers, each seeking to maximize its own profits with little concern for other channel members, is a(n) ________.

a)

independent vertical marketing system

b)

conventional marketing system

c)

independent channel

d)

corporate vertical marketing system

e)

administered vertical marketing system

50.

A corporate VMS has the advantage of controlling the entire distribution chain under ________.

a)

franchise licenses

b)

single ownership

c)

mass distribution

d)

a limited number of intermediaries

e)

contractual agreements

51.

What are the three major types of vertical marketing systems?

a)

corporate, contractual, and chain

b)

contractual, corporate, and independent

c)

corporate, contractual, and administered

d)

administered, independent, and franchised

e)

corporate, franchised, and task

52.

Leadership in which type of marketing system is assumed not through common ownership or contractual ties but through the size and power of a single dominant channel member.

a)

a horizontal marketing system

b)

an administered vertical marketing system

c)

a corporate vertical marketing system

d)

a conventional marketing system

e)

a multiple distribution system

53.

Which of the following statements about a vertical marketing system (VMS) is true?

a)

A VMS is a channel in which there is cooperation among channel members at two or more different levels of the channel.

b)

Members of a VMS operate totally independently of one another outside of buying and selling one another's products.

c)

The three types of vertical marketing systems are independent, conventional, and customized.

d)

Channel conflict is a more serious problem in a vertical marketing system than in a conventional marketing system.

e)

Conventional marketing systems are more efficient than vertical marketing systems.

54.

A retailer cooperative is a form of a(n) ________ vertical marketing system (VMS).

a)

administered

b)

conventional

c)

corporate

d)

horizontal

e)

contractual

55.

Burger King, Holiday Inn, Avis, and H&R Block tax service are all franchises, which means they are also members of a(n) ________ vertical marketing system (VMS).

a)

administered

b)

conventional

c)

corporate

d)

horizontal

e)

contractual

56.

In a ________, two or more companies at the same channel level join together to develop a new marketing opportunity.

a)

franchise

b)

corporate VMS

c)

horizontal marketing system

d)

multiple distribution system

e)

conventional marketing system

57.

When determining the number of channel members to use at each level, three strategies are available: intensive, exclusive, and ________ distribution.

a)

multiple

b)

selective

c)

international

d)

direct

e)

extensive

58.

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

a)

exclusive

b)

intensive

c)

selective

d)

dual

e)

multiple

59.

Which type of distribution means limiting distribution of a product to a single outlet in a particular region?

a)

exclusive

b)

intensive

c)

selective

d)

independent

e)

insourced

60.

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

a)

convenience goods

b)

unsought goods

c)

shopping products

d)

luxury products

e)

materials and supplies

61.

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

a)

materials expert

b)

distribution facilitator

c)

franchiser

d)

channel captain

e)

logistics leader

62.

Increasingly commonplace today is the appearance of two different franchise chains under the same roof, such as Pizza-Hut and Taco Bell. This is an example of a(n) ________ marketing system.

a)

A) administered

b)

B) conventional

c)

C) cooperative

d)

D) vertical

e)

E) horizontal

63.

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)

A) exclusive

b)

B) selective

c)

C) dual

d)

D) intensive

e)

E) disintermediated

64.

Which of the following is most likely intensively distributed?

a)

A) Olympus digital cameras

b)

B) BMW automobiles

c)

C) Diesel blue jeans

d)

D) Coca-Cola beverages

e)

E) Nike running shoes

65.

Which of the following is most likely exclusively distributed?

a)

A) BMW automobiles

b)

B) Diesel blue jeans

c)

C) Bazooka bubble gum

d)

D) Prairie Farms yogurt

e)

E) Coca-Cola beverages

66.

105) Tiffany & Co jewelry can only be found in a very limited number of intermediaries. This is an example of ________ distribution.

a)

A) exclusive

b)

B) intensive

c)

C) independent

d)

D) quality

e)

E) high-end

67.

Which type of vertical marketing system (VMS) gives an organization more control over both supply sources and resale of its products, while at the same time increasing the organization's capital investment and its fixed costs?

a)

A) administered

b)

B) contractual

c)

C) conventional

d)

D) corporate

e)

E) horizontal

68.

A brand of variety stores is part of a wholesaler-sponsored voluntary chain. This means these retailers are members of a(n) ________ vertical marketing system (VMS).

a)

A) administered

b)

B) conventional

c)

C) corporate

d)

D) horizontal

e)

E) contractual

69.

Which of the following is the process of designing, managing, and improving the movement of products through the supply chain?

a)

A) logistics

b)

B) warehousing

c)

C) materials handling

d)

D) inventory management

e)

E) distribution strategy

70.

The difference between distribution centers and storage warehouses is that distribution centers are designed to ________.

a)

A) have greater capacity

b)

B) store goods for longer periods 220 Copyright © 2018 Pearson Education, Inc.

c)

C) perform other functions, such as breaking bulk

d)

D) primarily be owned by the manufacturer

e)

E) be automated

71.

What type of utility does warehousing provide to consumers by holding onto products until consumers need them?

a)

A) time

b)

B) possession

c)

C) production

d)

D) form

e)

E) packaging

72.

The fastest and most expensive mode of transportation is ________.

a)

A) railroads

b)

B) water

c)

C) trucks

d)

D) pipeline

e)

E) air

73.

Which of the following is a logistics activity that involves developing and implementing a process to ensure the firm always has sufficient goods available to meet customers' demands, no more and no less?

a)

A) materials handling

b)

B) inventory control

c)

C) supply chain supervision

d)

D) order processing

e)

E) distribution implementation

74.

To balance inventory capabilities and production capacity constraints, some companies use a practice called ________, which involves the use of a consistent production schedule, both during and beyond times of peak demand

a)

. A) just in time (JIT)

b)

B) level loading

c)

C) stock outing

d)

D) logistics management

e)

E) enterprise resource planning (ERP)

75.

Which of the following includes all the activities necessary to convert raw materials into a good or service and put it in the hands of the consumer or business customer?

a)

A) the supply chain

b)

B) the value chain

c)

C) the channel of distribution

d)

D) the retailer chain

e)

E) the industrial network

76.

At some catalog retailers, employees on roller skates called pickers are handed a printout of the products a customer wants, and then the pickers skate through large warehouses accumulating the desired products into one central location. The pickers are engaged in ________.

a)

A) enterprise resource planning

b)

B) transportation

c)

C) materials handling

d)

D) warehousing

e)

E) inventory control

77.

Through the practice of insourcing, a company brings in an external company to run its ________.

a)

A) human resource management

b)

B) nonessential operations

c)

C) essential operations

d)

D) value proposition

e)

E) facilitating functions

78.

ewels 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 use ________ as its main carrier.

a)

A) railroads

b)

B) air

c)

C) trucks

d)

D) water

e)

E) pipeline

79.

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 to save money.

a)

A) water

b)

B) railroads

c)

C) pipeline

d)

D) air

e)

E) none of the above

80.

Which of the following modes of transportation would most likely be used to quickly haul lettuce from California, where it was grown, to markets in Nevada?

a)

A) trucks

b)

B) railroads

c)

C) air

d)

D) pipeline

e)

E) water