WorksheetsCHAPTER 11
Total questions: 80
Worksheet time: 40mins
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?
the industrial network
the retailer chain
the multilevel network
the channel of distribution
the conventional marketing system
Producers benefit from using intermediaries because they ________.
offer greater efficiency in making goods available to target markets
bring a fresh point of view to strategy development
eliminate risk
are rarely backlogged with orders
will store products indefinitely
At minimum, a channel of distribution consists of a producer and a(n) ________.
wholesaler
diverter
broker
intermediary
customer
Which of the following is the term for the firms and individuals who help move a product to the consumer or the business user?
product managers
channel leaders
channel intermediaries
enterprise resource planners
franchisees
It is most accurate to say that channels of distribution provide which of the following?
time, place, and possession utility
promotion, product, and place utility
time, place, and form utility
promotion and form utility
time and promotion utility
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 ________.
creating assortments
breaking bulk
third-party logistics
order processing
inventory control
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.
creating assortments
just in time processing
breaking bulk
order processing
risk taking
Functions provided by channel intermediaries that make the purchase process easier for customers and manufacturers are referred to as ________ functions.
distributing
facilitating
risk-taking
marketing
wholesaling
Offering credit to buyers and providing refund services for products are both examples of ________ functions provided by channel intermediaries.
diverting
marketing
breaking bulk
facilitating
creating assortment
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.
communication
marketing
promotional
diverting
management
Retailers handle the financial exchange when a customer pays for a product. This is an example of the ________ function of channel intermediaries.
communication
marketing
promotional
transaction
management
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.
diverting
marketing
breaking bulk
facilitating
risk-taking
Through a process of ________, traditional intermediaries are being eliminated as many companies question the value added by layers in the distribution channel.
knowledge management
disintermediation
horizontal marketing
vertical marketing
hybrid marketing
Which of the following describes a comprehensive approach to collecting, organizing, storing, and retrieving a firm's information assets?
logistics
knowledge management
facilitation
enterprise resource planning
just in time techniques
The theft and unauthorized repurposing of intellectual material via the Internet is called ________.
subscription boxing
product diversion
online distribution piracy
disintermediation
taking title
Intermediaries that do business with many different manufacturers and many different customers are most accurately referred to as ________.
interdependent intermediaries
dependent intermediaries
independent intermediaries
wholesalers
retail outlets
Limited-service merchant wholesalers are less likely than full-service merchant wholesalers to do which of the following?
set the prices of the merchandise they sell
take title to the merchandise they sell
suffer financial losses if the merchandise they sell is damaged or stolen
offer marketing assistance or delivery for the products they sell
use their own sales force
Which group of independent intermediaries can be divided into the two broad types of full-service and limited-service?
brokers
agents
sales branches
specialty wholesalers
merchant wholesalers
An intermediary who ________ legally owns the goods being handled.
breaks bulk
takes title
creates assortments
takes consignments
earns commission
Truck jobbers are limited-service merchant wholesalers who would most likely handle which of the following?
building materials
fruits and vegetables
coal and lumber
cosmetics
magazines
Mail-order wholesalers are associated with all of the following EXCEPT which one?
selling products to small retailers and other industrial customers
selling products to retailers in remote locations
allowing shipment prior to receiving payment
carrying products in inventory
selling through catalogs
Rack jobbers are limited-service merchant wholesalers who would most likely handle which of the following?
imported plants
precious minerals
agricultural products
perishable food items
magazines
A ________ brings buyers and sellers together and facilitates transactions, typically charging a fee after a transaction is completed.
cash-and-carry wholesaler
broker
retailer
wholesaler
commission merchant
Manufacturers' ________, also called manufacturers' representatives, represent a buyer or seller on an ongoing basis.
brokers
franchisers
agents
retailers
intermediaries
A commission merchant would most likely sell which of the following?
agricultural products
extractive materials such as coal and iron
convenience goods such as gum and candy
fresh fruits and vegetables
real estate
Which of the following is true about sales branches, sales offices, and manufacturers' showrooms?
They are all manufacturer-owned intermediaries.
They all determine the marketing strategy for the products they sell.
They are all independent intermediaries.
They all carry inventory and take title to the inventory they carry.
They perform the same functions as self-service wholesalers.
Which of the following are manufacturer-owned facilities that carry inventory and provide sales and services to customers?
sales offices
sales branches
manufacturers' showrooms
manufacturers' offices
merchandise brokerages
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?
commission merchandise marts
merchandise brokerages
sales offices
sales branches
manufacturers' showrooms
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.
sales office
manufacturer's showroom
commission merchandise mart
merchandise brokerage
manufacturer's office
To a producer of goods, a greater number of channel levels means ________.
less distance between producer and end customer
less control
more creativity
higher taxes
multiple distribution systems
The producer-retailer-consumer channel is ________.
the most efficient channel
also referred to as a triple channel
the shortest indirect channel
the shortest direct channel
a rarely used channel form
Which of the following is in place when a producer, dealer, wholesaler, retailer, or customer interacts with more than one type of channel?
dual or multiple distribution system
intermediation
knowledge management
supply chain management
vertical marketing system
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?
product
price
promotion
place
profit
Which of the following is the best example of a direct channel?
J&L Manufacturing Company sells drapery hardware to The Home Depot's Design Center, and the Design Center then sells it to consumers.
Family Dollar Store sells modeling clay to school-age children.
A wholesaler sells candy to convenience stores, who then sell it to store patrons.
Farmer Mintz sells corn to the Hughes household, who will eat it for supper.
A farmer in Colombia sells flowers to an international broker, who makes sure the flowers reach consumers in the United States.
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 ________.
indirect
direct
logistic
reverse
inbound
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 ________.
assortment creation
risk taking
breaking bulk
relationship management
logistics
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 ________.
creating atmospherics
creating assortments
diverting products
managing knowledge
managing relationships
Which of the following is NOT a channel intermediary?
the supplier of the raw materials used to make glass windows
the distributor who sells stained glass windows
the wholesaler who buys the stained glass window from its creator
the showroom that displays glass windows for customers to see
the manufacturers' agent who sells the stained glass windows
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 diverter
a truck jobber
a warehouser
a hybrid marketer
a wholesaling intermediary
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) ________.
independent intermediary
manufacturer-owned intermediary
disintermediator
diverter
brokerage company
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?
cash-and-carry wholesaler
drop shipper
rack jobber
selling agent
commission merchant
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 ________.
truck jobber
commission merchant
mail-order wholesaler
rack jobber
merchandise broker
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 ________.
drop shipper
truck jobber
rack jobber
mail-order wholesaler
cash-and-carry wholesaler
Which of the following is an example of a dual distribution system?
Walmart locating in several countries
J.C. Penney's catalog and retail store sales
Avon's door-to-door distribution
Starbucks located inside a bookstore
a hotel providing guest privileges at a nearby health spa
Which of the following should be the first step in distribution planning?
identifying the channel leader
determining a distribution budget
developing distribution objectives
evaluating the internal and external environments
determining the desired level of distribution intensity
Once an organization has developed its distribution objectives, it should next ________.
identify the channel leader
determine a distribution budget
select the optimum number of channel levels
define the target market and articulate the market segmentation strategy
evaluate the internal and external environments
Conventional distribution channels consist of one or more ________ producers, wholesalers, and retailers.
independent
product-related
contract
merchant
domestic
Which of the following is NOT a true statement about conventional marketing systems?
Conventional marketing systems are multilevel distribution channels.
Most conventional marketing systems are highly successful.
Members of conventional marketing systems work independently of one another.
Members of conventional marketing systems do not work toward the same broad goals.
Relationships between members of conventional marketing systems are limited to simply buying and selling from one another.
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) ________.
independent vertical marketing system
conventional marketing system
independent channel
corporate vertical marketing system
administered vertical marketing system
A corporate VMS has the advantage of controlling the entire distribution chain under ________.
franchise licenses
single ownership
mass distribution
a limited number of intermediaries
contractual agreements
What are the three major types of vertical marketing systems?
corporate, contractual, and chain
contractual, corporate, and independent
corporate, contractual, and administered
administered, independent, and franchised
corporate, franchised, and task
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 horizontal marketing system
an administered vertical marketing system
a corporate vertical marketing system
a conventional marketing system
a multiple distribution system
Which of the following statements about a vertical marketing system (VMS) is true?
A VMS is a channel in which there is cooperation among channel members at two or more different levels of the channel.
Members of a VMS operate totally independently of one another outside of buying and selling one another's products.
The three types of vertical marketing systems are independent, conventional, and customized.
Channel conflict is a more serious problem in a vertical marketing system than in a conventional marketing system.
Conventional marketing systems are more efficient than vertical marketing systems.
A retailer cooperative is a form of a(n) ________ vertical marketing system (VMS).
administered
conventional
corporate
horizontal
contractual
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).
administered
conventional
corporate
horizontal
contractual
In a ________, two or more companies at the same channel level join together to develop a new marketing opportunity.
franchise
corporate VMS
horizontal marketing system
multiple distribution system
conventional marketing system
When determining the number of channel members to use at each level, three strategies are available: intensive, exclusive, and ________ distribution.
multiple
selective
international
direct
extensive
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?
exclusive
intensive
selective
dual
multiple
Which type of distribution means limiting distribution of a product to a single outlet in a particular region?
exclusive
intensive
selective
independent
insourced
A selective distribution strategy is most suitable for which consumer product category?
convenience goods
unsought goods
shopping products
luxury products
materials and supplies
Which of the following is another name for the channel leader?
materials expert
distribution facilitator
franchiser
channel captain
logistics leader
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) administered
B) conventional
C) cooperative
D) vertical
E) horizontal
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) dual
D) intensive
E) disintermediated
Which of the following is most likely intensively distributed?
A) Olympus digital cameras
B) BMW automobiles
C) Diesel blue jeans
D) Coca-Cola beverages
E) Nike running shoes
Which of the following is most likely exclusively distributed?
A) BMW automobiles
B) Diesel blue jeans
C) Bazooka bubble gum
D) Prairie Farms yogurt
E) Coca-Cola beverages
105) Tiffany & Co jewelry can only be found in a very limited number of intermediaries. This is an example of ________ distribution.
A) exclusive
B) intensive
C) independent
D) quality
E) high-end
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) administered
B) contractual
C) conventional
D) corporate
E) horizontal
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) administered
B) conventional
C) corporate
D) horizontal
E) contractual
Which of the following is the process of designing, managing, and improving the movement of products through the supply chain?
A) logistics
B) warehousing
C) materials handling
D) inventory management
E) distribution strategy
The difference between distribution centers and storage warehouses is that distribution centers are designed to ________.
A) have greater capacity
B) store goods for longer periods 220 Copyright © 2018 Pearson Education, Inc.
C) perform other functions, such as breaking bulk
D) primarily be owned by the manufacturer
E) be automated
What type of utility does warehousing provide to consumers by holding onto products until consumers need them?
A) time
B) possession
C) production
D) form
E) packaging
The fastest and most expensive mode of transportation is ________.
A) railroads
B) water
C) trucks
D) pipeline
E) air
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) materials handling
B) inventory control
C) supply chain supervision
D) order processing
E) distribution implementation
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) just in time (JIT)
B) level loading
C) stock outing
D) logistics management
E) enterprise resource planning (ERP)
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) the supply chain
B) the value chain
C) the channel of distribution
D) the retailer chain
E) the industrial network
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) enterprise resource planning
B) transportation
C) materials handling
D) warehousing
E) inventory control
Through the practice of insourcing, a company brings in an external company to run its ________.
A) human resource management
B) nonessential operations
C) essential operations
D) value proposition
E) facilitating functions
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) railroads
B) air
C) trucks
D) water
E) pipeline
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) water
B) railroads
C) pipeline
D) air
E) none of the above
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) trucks
B) railroads
C) air
D) pipeline
E) water
