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100 Cards in this Set

  • Front
  • Back

A firm that brings in outside companies to accomplish supply chain activities is using ________.



A) insourcing
B) outsourcing
C) crowdsourcing
D) intensive distribution
E) exclusive distribution

A) insourcing

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

A) the supply chain

Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials to components to final products that are delivered to final buyers.



A) supply chain management
B) channel of distribution management
C) partnership relationship marketing
D) enterprise resource planning
E) knowledge management

A) supply chain management

When a company uses ________, it brings in an external company to run some of its essential operations.



A) outsourcing
B) insourcing
C) conventional marketing
D) logistics management
E) a vertical marketing system

B) insourcing

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

D) the channel of distribution

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

C) essential operations

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

A) offer greater efficiency in making goods available to target markets

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



A) wholesaler
B) agent
C) broker
D) intermediary
E) customer

E) 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?



A) third-party logistics providers
B) channel leaders
C) channel intermediaries
D) enterprise resource planners
E) strategic allies

C) channel intermediaries

Channels of distribution provide which of the following?



A) time, place, and ownership utility
B) promotion, product, and place utility
C) time, place, and form utility
D) promotion and form utility
E) time and promotion utility

A) time, place, and ownership 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 ________.



A) creating assortments
B) breaking bulk
C) third-party logistics
D) order processing
E) inventory control

B) breaking bulk

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) third-party logistics
D) order processing
E) inventory control

A) creating assortments

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) management
D) marketing
E) wholesaling

B) facilitating

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



A) communication
B) marketing
C) promotional
D) facilitating
E) management

D) facilitating

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) transaction
E) management

A) communication

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

D) transaction

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

B) disintermediation

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

B) knowledge management

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



A) information logistics theft
B) non-permission-based downloading
C) online distribution piracy
D) disintermediation
E) taking title

C) online distribution piracy

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

A) interdependent intermediaries

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

D) offer marketing assistance or delivery for the products they sell

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

E) merchant wholesalers

An intermediary who ________ legally owns the goods being handled.



A) breaks bulk
B) takes title
C) creates assortments
D) takes consignments
E) selectively distributes

B) takes title

The owner of a grocery store wants to have non-food items delivered, priced, displayed and inventoried by a wholesaler. Which type of wholesaler best fits the owner's needs?



A) drop shipper
B) cash-and-carry wholesaler
C) truck jobber
D) rack jobber
E) mail-order wholesaler

D) rack jobber

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

B) fruits and vegetables

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

C) allowing shipment prior to receiving payment

Drop shippers do all of the following EXCEPT which one?



A) take title to the merchandise
B) take actual possession of the merchandise
C) take orders from retailers and industry buyers
D) bill retailers and industry buyers
E) assume the same risks as other types of limited-service merchant wholesalers

B) take actual possession of the merchandise

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

E) magazines

A(n) ________ 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

B) broker

Which of the following are intermediaries that receive fees for facilitating transactions in markets such as real estate, food, and used equipment in which there are a lot of small buyers and sellers?



A) manufacturers' agents
B) selling agents
C) commission merchants
D) merchandise brokers
E) sale mediators

D) merchandise brokers

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



A) brokers
B) franchisers
C) agents
D) retailers
E) intermediaries

C) agents

Which of the following statements about merchandise brokers is true?



A) Brokers are paid salaries by the manufacturers for whom they work.
B) Brokers never take title to the merchandise they sell.
C) Brokers work for manufacturer-owned intermediaries.
D) Brokers typically represent sellers on an ongoing basis.
E) Brokers work in industries with only a few, very large buyers and sellers.

B) Brokers never take title to the merchandise they sell.

Which of the following statements about manufacturers' agents is true?



A) Manufacturers' agents are also called manufacturers' brokers.
B) Manufacturers' agents most typically work for only one manufacturer.
C) Manufacturers' agents are compensated with commissions based on a percentage of what they sell.
D) Manufacturers' agents have unlimited sales territories.
E) Manufacturers' agents are entirely supervised by the manufacturer for whom they sell.

C) Manufacturers' agents are compensated with commissions based on a percentage of what they sell.

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) clothing and textiles
E) real estate

A) agricultural products

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.

A) They are all manufacturer-owned intermediaries.

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

B) sales branches

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

C) sales offices

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

B) manufacturer's showroom

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



A) less distance between producer and end consumer
B) less control
C) more creativity
D) higher taxes
E) multiple distribution systems

B) less control

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

C) the shortest indirect channel

In business-to-business channels, the functions of a merchant wholesaler are performed by a(n) ________.



A) sales office
B) commission merchant
C) merchant broker
D) business retailer
E) industrial distributor

E) industrial distributor

Which of the following statements about business-to-business channels is true?



A) Direct channels are more common in business-to-business markets than consumer markets.
B) Business-to-business channels have few parallels with consumer channels.
C) The size of business markets makes indirect channels more efficient.
D) Indirect channels are more common in business-to-business markets than consumer markets.
E) When an industrial distributor is included in a business-to-business channel, the channel is by definition direct.

A) Direct channels are more common in business-to-business markets than consumer markets.

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

A) dual or multiple distribution system

Which of the following is a distribution system that uses different channels and communication methods to reach and serve a target market?



A) a vertical marketing system
B) a horizontal marketing system
C) a hybrid marketing system
D) a logistics system
E) an intensive distribution system

C) a hybrid marketing system

Which of the following is most likely to force a manufacturer to pay a slotting allowance?



A) a selling agent
B) a merchandise broker
C) a large retail chain
D) a small retailer
E) a rack jobber

C) a large retail chain

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

C) developing distribution objectives

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

E) evaluate the internal and external environments

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



A) independent
B) product-related
C) contract
D) merchant
E) domestic

A) independent

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.

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

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

B) conventional marketing system

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



A) a profit-maximizing strategic plan
B) single ownership
C) mass distribution
D) a limited number of intermediaries
E) contractual agreements

B) single ownership

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

C) corporate, contractual, and administered

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

B) an administered vertical marketing system

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.

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

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



A) administered
B) conventional
C) corporate
D) horizontal
E) contractual

E) 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).



A) administered
B) conventional
C) corporate
D) horizontal
E) contractual

E) contractual

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

C) horizontal marketing system

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

B) selective

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

C) selective

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

A) exclusive

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

C) shopping products

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

D) channel captain

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

A) logistics

Marketing logistics involves which of the following types of distribution flows?



A) outbound and inbound only
B) outbound, inbound, and reverse
C) outbound and reverse only
D) inbound and reverse only
E) outbound only

B) outbound, inbound, and reverse

During the stage of ________ activities, the company receives materials it needs to manufacture its products.



A) inbound logistics
B) operations
C) outbound logistics
D) marketing and sales
E) service

A) inbound logistics

Which stage of activity in logistics involves shipping the product out to customers?



A) inbound logistics
B) operations
C) outbound logistics
D) reverse logistics
E) services

C) outbound logistics

Physical distribution activities include all of the following EXCEPT which one?



A) order processing
B) warehousing
C) materials handling
D) transportation
E) order getting

E) order getting

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
C) perform other functions, such as breaking bulk
D) primarily be owned by the manufacturer
E) be automated

C) perform other functions, such as breaking bulk

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



A) time
B) ownership
C) production
D) form
E) packaging

A) time

Which of the following do manufacturers typically NOT use as a factor in deciding which mode of transportation to use for a product?



A) dependability
B) cost
C) accessibility
D) responsiveness
E) traceability

D) responsiveness

The fastest and most expensive mode of transportation is ________.



A) railroads
B) water
C) the Internet
D) pipeline
E) air

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

B) inventory control

To reduce inventory management costs, many companies use a system called ________, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation.



A) just in time (JIT)
B) supply chain management
C) value chain management
D) logistics management
E) enterprise resource planning (ERP)

A) just in time (JIT)

Through the use of ________, a company is able to know exactly where a product is located within the distribution channel.



A) ERP
B) RFID
C) PRM
D) VMS
E) JIT

B) RFID

The perfect order measurement calculates which of the following?



A) the amount of inventory that is just right to warehouse
B) the origin, current location, and destination of a tagged product
C) the most cost-effective and efficient mode of transportation
D) the value of the time utility provided to customers through logistics
E) the error-free rate of each stage of a purchase order

E) the error-free rate of each stage of a purchase order

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) packaging

D) place

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.

D) Farmer Mintz sells corn to the Hughes household who will eat it for supper.

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

B) direct

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



A) direct marketing channel
B) producer channel
C) indirect marketing channel
D) horizontal marketing system
E) corporate vertical marketing system

C) indirect marketing channel

Proud Pets, a producer of clothing and accessories for pets, has recently partnered with a regional chain of pet stores. Which of the following would Proud Pets be LEAST likely to expect from its new channel member?



A) promoting its products through advertising
B) assembling and packaging its products for final sale
C) distributing relevant market information
D) identifying raw materials and other productive inputs
E) taking a risk that items may not sell

D) identifying raw materials and other productive inputs

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

C) breaking bulk

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

B) creating assortments

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

A) the supplier of the raw materials used to make 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) a piggyback marketer
B) a reverse flow marketer
C) a disintermediator
D) a hybrid marketer
E) a wholesaling intermediary

E) 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) ________.



A) independent intermediary
B) manufacturer-owned intermediary
C) disintermediator
D) reverse marketer
E) brokerage company

A) independent intermediary

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 merchan

A) cash-and-carry wholesaler

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

A) drop shipper

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

C) mail-order wholesaler

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

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

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

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

D) intensive

Which of the following is most likely intensively distributed?



A) Olympus digital cameras
B) BMW automobiles
C) Diesel blue jeans
D) Coca-Cola
E) Nike running shoes

D) Coca-Cola

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

A) BMW automobiles

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



A) exclusive
B) intensive
C) independent
D) quality
E) high-end

A) exclusive

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

D) corporate

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

E) contractual

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

C) materials handling

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 use ________ as its main carrier.



A) railroads
B) air
C) trucks
D) water
E) pipeline

B) air

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

B) railroads

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

A) trucks