Question 1

A marketing channel is a business structure composed of interdependent organizations that reach from the point of product origin to the final consumer.

Accepted Answer

true

Question 2

As products move through the marketing channel, channel members provide specialization and division of labor, overcome discrepancies, and provide contact efficiency.

Accepted Answer

true

Question 3

A consumer stopped by the convenience store to buy a bag of charcoal briquettes. She only needs one bag, but the manufacturer produces millions of bags. For consumers, the convenience store overcomes a discrepancy of dimensions.

Accepted Answer

false

Question 4

Residents of Sobarro, New Mexico, live in an isolated area of the state. Residents must travel two hours to receive medical treatment. Luckily, a physician has just opened a new practice in Sobarro. In this case, the physician has overcome service discrepancies by opening an office close to consumers.

Accepted Answer

false

Question 5

Consider a scenario in which there are four manufacturers, no intermediaries, and three consumers. Twelve transactions would be required for each consumer to receive products from each manufacturer. The introduction of one intermediary reduces the required number of transactions to four and demonstrates the idea of contact efficiency.

Accepted Answer

false

Question 6

A merchant wholesaler is an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers.

Accepted Answer

true

Question 7

Carl represents a manufacturer of floor coverings and gets paid a commission for finding buyers and linking them up with the manufacturer. Carl is an example of a merchant wholesaler

Accepted Answer

false

Question 8

The three basic functions a channel intermediary provides are transactional, logistical, and facilitating functions.

Accepted Answer

true

Question 9

The logistical functions performed by intermediaries include physically distributing, storing, sorting, and financing.

Accepted Answer

false

Question 10

Harriet Lowe makes children\'s clothing, which she sells at craft festivals to end users. Lowe does not use channel intermediaries, which means she uses a direct channel.

Accepted Answer

true

Question 11

The direct channel is used more often in consumer markets than in business-to-business markets.

Accepted Answer

false

Question 12

The direct channel is used more often in consumer markets than in business and industrial markets.

Accepted Answer

false

Question 13

LoneStar Bar & Grill is a small chain of restaurants that feature marinated steaks. The marinade is so popular that LoneStar sells it at its restaurants and also sells it at Kroger supermarkets. This is an example of intensive distribution.

Accepted Answer

false

Question 14

Metallurgical Designs makes gold and silver charms for necklaces and bracelets. It markets its charms to a few retailers in any one region and promotes them intensively to those retailers. This is an example of intensive distribution.

Accepted Answer

false

Question 15

Shopping goods are usually distributed selectively. Consumers are willing to look around for them but may not be willing to search or travel extensively to acquire the product.

Accepted Answer

true

Question 16

Exclusive distribution is the most extensive form of market coverage.

Accepted Answer

false

Question 17

At one end of the channel relationship continuum is the \"Arm\'s Length\" relationship.

Accepted Answer

true

Question 18

Highly integrated channel relationships are the preferred relationship because there is no large outlay of assets required to keep the channel members all working toward the same results.

Accepted Answer

false

Question 19

Integrated channel relationships tend to be more flexible than cooperative relationships.

Accepted Answer

false

Question 20

An international consumer products manufacturer requires all of its suppliers to provide the lowest possible cost and to adhere to a just-in-time inventory system. Wholesalers and manufacturers generally yield to the authority of this large manufacturer. This consumer products manufacturer exercises channel power.

Accepted Answer

true

Question 21

Reciprocal conflict occurs among channel members on the same level, such as two or more different wholesalers or two or more different retailers that handle the same manufacturer\'s brands.

Accepted Answer

false

Question 22

Many regard vertical conflict as healthy competition.

Accepted Answer

false

Question 23

Because distribution creates the same problems whether it is in Ethiopia, Indonesia, or Canada, you will find that channel structures and types around the world are very similar to those in the United States.

Accepted Answer

false

Question 24

Gray marketing channels assist brand name manufacturers in marketing their products more efficiently.

Accepted Answer

false

Question 25

Unlike marketers of physical products, marketers of services do not have to address the question of logistics since services do not require a distribution strategy.

Accepted Answer

false

Question 26

When discussing the distribution of services, you will often hear channel members discussing the need to minimize wait times.

Accepted Answer

true

Question 27

The Beistle Company manufactures Halloween decorations year-round, but customer demand is con-centrated only during the month of October. By maintaining inventories of the Beistle Company\'s products, marketing channels overcome this spatial discrepancy.

Accepted Answer

false

Question 28

Transactional functions include contacting potential customers and assuming the risk of owning inventory.

Accepted Answer

true

Question 29

Supply chain management is a key means of differentiation for a firm and a critical component in marketing and corporate strategy.

Accepted Answer

true

Question 30

As firms become increasingly supply chain oriented, they develop management practices that are consistent with a systems approach.

Accepted Answer

true

Question 31

Designing a new product with the help of suppliers and customers can enable a company to introduce features and cost cutting measures into final products.

Accepted Answer

true

Question 32

Reactive supply chain resiliency measures seek to protect key inventory and assets from damage, theft, or destruction.

Accepted Answer

false

Question 33

It is important to limit the number of supply chain partners in the product development and commercialization process.

Accepted Answer

false

Question 34

The customer relationship management process includes customer segmentation by value and subsequent generation of customer loyalty for the most attractive segments.

Accepted Answer

true

Question 35

Using three-dimensional printing (3DP) technology, objects are built to precise specifications using raw materials at or near the location where they may be consumed.

Accepted Answer

true

Question 36

Fourth-party logistics companies (4PLs) often draw on multiple third-party logistics companies for actual service.

Accepted Answer

true

Question 37

New products and services are mostly the sole responsibility of a single firm in the supply chain.

Accepted Answer

false

Question 38

In the customer relationship management (CRM) process, once higher-value customers are identified, firms should focus on identifying and attracting other groups by providing them with customized products and better services.

Accepted Answer

false

Question 39

The three basic functions channel intermediaries perform are:   a. transactional, logistical, and facilitating   b. contacting, negotiating, and ownership   c. promoting, distributing, and bulk-breaking   d. assorting, accumulating, and allocating   e. financing, mediating, and storing

Accepted Answer

a. transactional, logistical, and facilitating

Question 40

Transactional channel functions include all of the following activities EXCEPT:   a. contacting buyers   b. promoting the products to be sold   c. taking the risks associated with product inventories   d. negotiating the sale   e. physical distribution and sorting

Accepted Answer

e. physical distribution and sorting

Question 41

The efficient and cost-effective forward and reverse flow and storage of goods, services, and related information into, through, and out of channel member companies is called:   a. systematization   b. logistics   c. engineering   d. distribution   e. coordination

Accepted Answer

b. logistics

Question 42

Which of the following is a logistical function performed by intermediaries?   a. Sorting   b. Negotiating   c. Financing   d. Risk taking   e. All of these choices

Accepted Answer

a. Sorting

Question 43

Marketing channels perform all of the following logistical activities EXCEPT:   a. sorting   b. storing   c. physically distributing   d. risk taking   e. breaking bulk

Accepted Answer

d. risk taking

Question 44

All of the following are sorting activities EXCEPT:   a. assorting   b. accumulation   c. sorting out   d. allocation   e. possession

Accepted Answer

e. possession

Question 45

supply chain

Accepted Answer

the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function

Question 46

supply chain management

Accepted Answer

a management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value

Question 47

supply chain agility

Accepted Answer

an operational strategy focused on inducing inventory velocity and operational flexibility simultaneously in the supply chain

Question 48

supply chain integration

Accepted Answer

when multiple firms or business functions in a supply chain coordinate their activities and processes so that they are seamlessly linked to one another in an effort to satisfy the customer

Question 49

demand-supply integration (DSI)

Accepted Answer

a supply chain operational philosophy focused on integrating the supply-management and demand-generating functions of an organization

Question 50

business processes

Accepted Answer

bundles of interconnected activities that stretch across firms in the supply chain

Question 51

customer relationship management (CRM) process

Accepted Answer

allows companies to prioritize their marketing focus on different customer groups according to each group\'s long-term value to the company or supply chain

Question 52

customer service management process

Accepted Answer

presents a multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced

Question 53

demand management process

Accepted Answer

seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating demand-related plans of action prior to actual customer purchasing behavior

Question 54

order fulfillment process

Accepted Answer

a highly integrated process, often requiring persons from multiple companies and multiple functions to come together and coordinate to create customer satisfaction at a given place and time

Question 55

manufacturing flow management process

Accepted Answer

concerned with ensuring that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multi-stage production process

Question 56

supplier relationship management process

Accepted Answer

supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers

Question 57

product development and commercialization process

Accepted Answer

includes the group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms

Question 58

returns management process

Accepted Answer

enables firms to manage volumes of returned product efficiently while minimizing returns-related costs and maximizing the value of the returned assets to the firms in the supply chain

Question 59

supply chain team

Accepted Answer

an entire group of individuals who orchestrate the movement of goods, services, and information from the source to the consumer

Question 60

inventory control system

Accepted Answer

a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer\'s or a customer\'s demand

Question 61

stockout

Accepted Answer

a situation where a customer demand for an inventory item goes unfulfilled because the requested item is unavailable at the needed time and place

Question 62

cycle stock

Accepted Answer

inventory held temporarily for the purpose of fulfilling predicted demand in a period

Question 63

safety (buffer) stock

Accepted Answer

extra inventory held in addition to cycle stock as insurance against unexpected demand increases

Question 64

in-transit inventory

Accepted Answer

inventory that is currently moving within a transportation network to or from the company\'s facilities (plant, warehouse, or sales location)

Principles of Marketing Ch 13 Supply Chain Management and Marketing Channels – Flashcards

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