kotler chapter 12 mcq

8/20/2019 Kotler Chapter 12 MCQ

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Chapter 12 Marketing Channels: Delivering Customer Value

1) Which of the following is NOT a typical supply chain member?A) resellersB) customers

C) intermediaries) go!ernment agencies") raw materials supplier Answer# iff# 1 $age %ef# &&'(ill# ConceptOb*ecti!e# 1+,1

+) -------- the manufacturer or ser!ice pro!ider is the set of firms that supply the rawmaterials. components. parts. information. finances. and e/pertise needed to create a product orser!ice0

A) ownstream fromB) pstream fromC) (eparated from) Congruous to") $arallel withAnswer# Biff# + $age %ef# &&'(ill# ConceptOb*ecti!e# 1+,1

&) Another term for the supply chain that suggests a sense and respond !iew of the maret is

--------0A) supply and demand chainB) demand chainC) channel of distribution) distribution channel") physical distributionAnswer# Biff# & $age %ef# &&2(ill# ConceptOb*ecti!e# 1+,1

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7) When suppliers. distributors. and customers partner with each other to impro!e the performance of the entire system. they are participating in a --------0A) !alue deli!ery networ B) channel of distributionC) supply chain

) demand chain") all of the abo!eAnswer# Aiff# 1 $age %ef# &&2(ill# ConceptOb*ecti!e# 1+,1

8) 9ost producers today sell their goods to --------0A) final usersB) final users and mareting membersC) intermediaries) the go!ernment at !arious le!els") competitorsAnswer# Ciff# + $age %ef# &&:(ill# ConceptOb*ecti!e# 1+,1

;) A company


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2) =oe Blanco. lie other producers. has disco!ered that his intermediaries usually offer his firmmore than it can achie!e on its own0 Which of the following is most liely an ad!antage that =oecreates by woring with intermediaries?A) financial supportB) fast ser!ice

C) scale of operation) woring relationships with foreign distributors") promotional assistanceAnswer# Ciff# + $age %ef# &&:(ill# ConceptOb*ecti!e# 1+,1

:) >rom the economic system


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1+) Channel members add !alue by bridging the ma*or gaps of -------- that separate goods andser!ices from those who would use them0A) time. place. and formB) place. possession. and formC) time. place. and possession

) place. time. and need") place. need. and distributionAnswer# Ciff# + $age %ef# &74(ill# ConceptOb*ecti!e# 1+,1

1&) Which of the following is NOT a ey function that intermediaries play in completingtransactions?A) promotionB) informationC) matching) financing") negotiationAnswer# "iff# & $age %ef# &74(ill# ConceptOb*ecti!e# 1+,1

17) Which of the following is NOT a ey function that intermediaries play in helping to fulfill acompleted transaction?A) physical distributionB) promotionC) financing) ris taing") storing goodsAnswer# Biff# & $age %ef# &74(ill# ConceptOb*ecti!e# 1+,+

18) 5n mareting terms. we say that the number of intermediary le!els indicates the -------- ofa channel0A) depth

B) comple/ityC) in!ol!ement) length") widthAnswer# iff# 1 $age %ef# &71(ill# ConceptOb*ecti!e# 1+,1



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1;) To a producer of goods. a greater number of channel le!els means -------- and greaterchannel comple/ity0A) less distance between producer and end consumer B) less controlC) more potential ideas

) higher ta/es") fewer channel partnersAnswer# Biff# + $age %ef# &71(ill# ConceptOb*ecti!e# 1+,1

1') All of the institutions in a channel are connected by !arious flows0 These include physicalflow. flow of ownership. payment flow. information flow. and -------- flow0A) promotionB) acuisitionC) customer ) return product") by,productAnswer# Aiff# & $age %ef# &71AAC(B# Communication(ill# ConceptOb*ecti!e# 1+,1

12) A distribution channel is more than a collection of firms connected by !arious flows@ it isan) -------- in which people and companies interact to accomplish indi!idual. company. andchannel goals0A) added !alue chainB) comple/ beha!ioral systemC) corporate mareting system) !ertical mareting system") multichannel systemAnswer# Biff# + $age %ef# &7+AAC(B# Communication(ill# ConceptOb*ecti!e# 1+,+



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1:) An ad!antage of a channel of distribution o!er selling direct to consumers is that eachchannel member plays a -------- in the channel0A) time,sa!ing partB) specialied roleC) decisional role

) informational role") disciplinary roleAnswer# Biff# + $age %ef# &7+(ill# ConceptOb*ecti!e# 1+,+

+4) -------- conflict. which occurs between different le!els of the same channel. is morecommon than -------- conflict. which occurs among firms at the same le!el of the channel0A) 6oriontal@ !erticalB) ertical@ horiontal

C) Contractual@ corporate) Corporate@ franchise") Wholesaler@ retailer Answer# Biff# + $age %ef# &7+(ill# ConceptOb*ecti!e# 1+,+

+1) 6istorically. con!entional channels ha!e laced the leadership to --------0A) assign channel member roles and attain efficiencyB) attain efficiency and assign member rolesC) assign member roles and manage conflict) set standard pricing and promotions") set standard pricing and pacagingAnswer# Ciff# & $age %ef# &7&AAC(B# Communication(ill# ConceptOb*ecti!e# 1+,+

++) A con!entional distribution channel consists of one or more -------- producers.wholesalers. and retailers0A) product,related

B) independentC) contract) estranged") merchantAnswer# Biff# + $age %ef# &77(ill# ConceptOb*ecti!e# 1+,+

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+&) A channel consisting of one or more independent producers. wholesalers. or retailers thatsee to ma/imie their own profitse!en at the e/pense of profits for the channel as a wholeis

an) --------0A) !ertical mareting systemB) con!entional distribution channel

C) independent channel allocation) corporate 9(") administered !ertical mareting systemAnswer# Biff# + $age %ef# &77(ill# ConceptOb*ecti!e# 1+,+

+7) An ad!antage of a !ertical mareting system 9() is that it acts as a -------- system0A) unifiedB) more efficient

C) modern) customer,dri!en") tas,dri!enAnswer# Aiff# & $age %ef# &77(ill# ConceptOb*ecti!e# 1+,+

+8) A corporate 9( has the ad!antage of controlling the entire distribution chain under --------0A) a profit,ma/imiing strategic planB) single ownershipC) mass distribution) a few intermediaries") little controlAnswer# Biff# 1 $age %ef# &77(ill# ConceptOb*ecti!e# 1+,+

+;) Which of the following are the three ma*or types of !ertical mareting systems?A) corporate. contractual. and chainB) contractual. corporate. and independentC) contractual. corporate. and administered) administered. independent. and franchised") contractual. corporate. and tas Answer# Ciff# + $age %ef# &77(ill# ConceptOb*ecti!e# 1+,+

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+') A distinguishing feature of a contractual 9( is that coordination and conflict managementamong the independent members of the channel are attained through --------0A) agents and broersB) woring partnershipsC) limited liability incorporation

) contractual agreements") natural competiti!e forcesAnswer# iff# 1 $age %ef# &78AAC(B# Communication(ill# ConceptOb*ecti!e# 1+,+

+2) The most common type of contractual agreement in business is the --------0A) franchise organiationB) !ertical mareting system

C) con!entional mareting channel) corporate 9(") administered 9(Answer# Aiff# & $age %ef# &78(ill# ConceptOb*ecti!e# 1+,+

+:) Deadership in which type of mareting system is assumed not through common ownership or contractual ties but through the sie and power of one or a few dominant channel members?A) horiontal mareting systemB) administered 9(C) corporate 9() multichannel distribution system") con!entional mareting channelAnswer# Biff# + $age %ef# &78(ill# ConceptOb*ecti!e# 1+,+

&4) 5n a --------. two or more companies at one le!el *oin together to de!elop a new maretingopportunity0A) franchise

B) horiontal mareting systemC) corporate 9() multichannel distribution system") con!entional distribution channelAnswer# Biff# 1 $age %ef# &78(ill# ConceptOb*ecti!e# 1+,+



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&1) 6ybrid mareting systems are also called --------0A) dual distribution systemsB) multichannel distribution systemsC) administered franchises) horiontal multichannel systems

") contractual mareting systemsAnswer# Biff# + $age %ef# &7;(ill# ConceptOb*ecti!e# 1+,+

&+) As mareting manager for Elobe 5mports and "/ports. you want to start reaping the benefitsof a multichannel distribution system0 Fou will liely en*oy all of the following "GC"$T whichone?A) e/panded salesB) e/panded maret co!erage

C) selling at a higher gross margin) opportunities to tailor products and ser!ices to the needs of di!erse segments") A and CAnswer# Ciff# & $age %ef# &7;(ill# ConceptOb*ecti!e# 1+,+

&&) The use of multichannel systems in the nited (tates is --------0A) decreasingB) increasingC) holding steady) spreading abroad fast") declining abroadAnswer# Biff# + $age %ef# &7;(ill# ConceptOb*ecti!e# 1+,+

&7) The ma*or disad!antage of a multichannel system is that it is harder to control and it cangenerate --------0A) channel conflictB) less net profit

C) fewer domestic sales) inefficiencies") declining employee moraleAnswer# Aiff# + $age %ef# &7;(ill# ConceptOb*ecti!e# 1+,+

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&8) ue in a large part to ad!ances in technology. -------- is a ma*or trend whereby productand ser!ice producers are bypassing intermediaries and going directly to final buyers. orradically new types of channel intermediaries are emerging to displace traditional ones0A) the !ertical mareting systemB) the corporate mareting system

C) disintermediation) the corporate merger ") the hostile taeo!er Answer# Ciff# + $age %ef# &7'AAC(B# se of 5T(ill# ConceptOb*ecti!e# 1+,+

&;) 5n many industries. traditional intermediaries are dropping by the wayside because ofchanges in -------- and the growth of -------- mareting0

A) federal laws@ business,to,businessB) state and local laws@ targetC) franchise structure@ independent) technology@ direct and online") channel design@ retailAnswer# iff# + $age %ef# &7'AAC(B# se of 5T(ill# ConceptOb*ecti!e# 1+,+

&') esigning a channel system calls for analying consumer needs. setting channel ob*ecti!es. -------- and e!aluation0A) establishing a budgetB) identifying ma*or channel alternati!esC) seeing regulatory appro!al) seeing legal ad!ice") measuring ob*ecti!esAnswer# Biff# + $age %ef# &72(ill# ConceptOb*ecti!e# 1+,&

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&2) Which of the following should be the first step in designing a mareting channel?A) identifying channel ob*ecti!esB) identifying what consumers want from the channelC) analying channel alternati!es) e!aluating intermediaries

") e/ploring international opportunitiesAnswer# Biff# + $age %ef# &7:(ill# ConceptOb*ecti!e# 1+,&

&:) To increase a channel


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7+) Which type of product might reuire a more direct mareting channel to a!oid delays and toomuch handling?A) lower,priced productsB) perishable productsC) high,priced products

) products in their maturity stage") products in their decline stageAnswer# Biff# + $age %ef# &84(ill# ConceptOb*ecti!e# 1+,&

7&) When determining the number of channel members to use at each le!el. three strategies area!ailable# intensi!e. e/clusi!e. and -------- distribution0A) multichannelB) selecti!e

C) international) direct") e/tensi!eAnswer# Biff# 1 $age %ef# &84(ill# ConceptOb*ecti!e# 1+,&

77) (ometimes a producer chooses only a few dealers in a territory to distribute its products orser!ices0 Eenerally these dealers are gi!en a right to -------- distribution0A) e/clusi!eB) selecti!eC) intensi!e) administered") corporateAnswer# Aiff# 1 $age %ef# &81(ill# ConceptOb*ecti!e# 1+,&

78) Which type of distribution is used when the producer wants more than one. but fewer thanall. of the intermediaries who are willing to carry its products?A) e/clusi!e

B) selecti!eC) intensi!e) administered") corporateAnswer# Biff# 1 $age %ef# &81(ill# ConceptOb*ecti!e# 1+,&

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7;) When establishing the responsibilities of channel members. the producer establishes a list price. sets discounts for intermediaries. and defines each channel member


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7:) 5t is common for international mareters to -------- their channel strategies for eachcountry0A) e/tendB) adaptC) restrict

) see appro!al for ") eliminateAnswer# Biff# 1 $age %ef# &8+AAC(B# 9ulticultural and i!ersity(ill# ConceptOb*ecti!e# 1+,&

84) China and 5ndia each contain more than one billion people0 6owe!er. companies can accessonly a small percentage of these potential marets due to --------0A) inadeuate distribution systems

B) indifference toward Western productsC) high regional ta/es) the religious caste system") insurmountable language barriersAnswer# Aiff# & $age %ef# &8+AAC(B# 9ulticultural and i!ersity(ill# ConceptOb*ecti!e# 1+,&

81) 9areting channel management calls for selecting. managing. --------. and e!aluatingchannel members o!er time0A) reducing conflictB) reducing wasteC) moti!ating) pruning") all of the abo!eAnswer# Ciff# + $age %ef# &8+(ill# ConceptOb*ecti!e# 1+,7



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8+) A company should thin of its intermediaries as both its -------- and --------0A) competitors@ partnersB) customers@ partnersC) competitors@ mareters) customers@ employees

") competitors@ customersAnswer# Biff# + $age %ef# &8&(ill# ConceptOb*ecti!e# 1+,7

8&) 9ost companies practice strong $%9 to forge long,term relationships with channelmembers0 What does $%9 stand for?A) primary relationship managementB) potential relationship managementC) perennial relationship management) partner relationship management") personnel roster maintenanceAnswer# iff# 1 $age %ef# &8&AAC(B# Communication(ill# ConceptOb*ecti!e# 1+,7

87) (ometimes a seller reuires its dealers to abstain from handling competitors< products in anarrangement called --------0A) e/clusi!e distributionB) e/clusi!e dealingC) selecti!e distribution) e/clusi!e pricing") disintermediationAnswer# Biff# + $age %ef# &8;AAC(B# "thical %easoning(ill# ConceptOb*ecti!e# 1+,7



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88) "/clusi!e dealing is legal as long as it does not -------- or tend to create a monopoly andas long as both parties enter into the agreement --------0A) substantially lessen competition@ coerci!elyB) restrict trade@ for a causeC) substantially lessen competition@ !oluntarily

) interfere with competitors@ forcefully") create a smaller maret@ permanentlyAnswer# Ciff# & $age %ef# &8;AAC(B# "thical %easoning(ill# ConceptOb*ecti!e# 1+,7

8;) "/clusi!e territorial agreements are normal in --------0A) !ertical mareting systemsB) franchises

C) integrated mareting systems) horiontal mareting systems") supply chain managementAnswer# Biff# + $age %ef# &8;AAC(B# "thical %easoning(ill# ConceptOb*ecti!e# 1+,7

8') 5f the producer of a strong brand agrees to sell its brand to a dealer only if the dealer will taesome or all of the rest of the line. the result is --------0A) e/clusi!e distributionB) e/clusi!e dealingC) always illegal) a tying agreement") disintermediationAnswer# iff# + $age %ef# &8;AAC(B# "thical %easoning(ill# ConceptOb*ecti!e# 1+,7

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82) 9areting logistics in!ol!es getting the right product to the right customer in the right placeat the right time0 Which one of the following is NOT included in this process?A) planning the physical flow of goods and ser!icesB) implementing the plan for the flow of goods and ser!icesC) controlling the physical flow of goods. ser!ices. and information

) gathering customer


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;+) The goal of mareting logistics should be to pro!ide a -------- le!el of customer ser!ice atthe least cost0A) ma/imumB) targetedC) moderate

) minimum") competiti!eAnswer# Biff# + $age %ef# &8'(ill# ConceptOb*ecti!e# 1+,8

;&) The difference between distribution centers and storage warehouses is that the former aredesigned to --------0A) store goods for longer periodsB) hold larger !olumes

C) mo!e goods rather than *ust store them) primarily be owned by the manufacturer ") be automatedAnswer# Ciff# + $age %ef# &82(ill# ConceptOb*ecti!e# 1+,8

;7) To reduce in!entory management costs. many companies use a system called --------.which in!ol!es carrying only small in!entories of parts or merchandise. often only enough for afew days of operation0A) reduction,in!entory managementB) *ust,in,time logisticsC) limited in!entory logistics) supply chain management") economic order uantityAnswer# Biff# + $age %ef# &8:AAC(B# se of 5T(ill# ConceptOb*ecti!e# 1+,8



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;8) Through the use of --------. or Hsmart tagH technology. a company is able to locate e/actlywhere a product is within the supply chain0A) %>5B) $%9C) 9(

) 5T") &$DAnswer# Aiff# + $age %ef# &8:AAC(B# se of 5T(ill# ConceptOb*ecti!e# 1+,8

;;) Which of the following transportation modes is used for digital products?A) trucsB) rail

C) the 5nternet) air ") shipAnswer# Ciff# 1 $age %ef# &8:AAC(B# se of 5T(ill# ConceptOb*ecti!e# 1+,8

;') 5n choosing a transportation mode for a product. shippers must balance the considerations ofspeed. dependability. cost. and --------0A) weightB) customer choiceC) a!ailability) distance") company reputationAnswer# Ciff# & $age %ef# &;4(ill# ConceptOb*ecti!e# 1+,8

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;2) 5n the proper order. identify the correct terms for these intermodal transportationcombinations# rail and truc. water and truc. water and rail0A) fishybac@ airtruc@ trainshipB) piggybac@ airtruc@ fishybac C) trainship@ fishybac@ piggybac

) piggybac@ fishybac@ trainship") piggybac. fishybac@ birdybac Answer# iff# + $age %ef# &;4(ill# ConceptOb*ecti!e# 1+,8

;:) Companies manage their supply chains through --------0A) silled operatorsB) informationC) the 5nternet) transportation modes") competitorsAnswer# Biff# + $age %ef# &;4AAC(B# Communication(ill# ConceptOb*ecti!e# 1+,8

'4) sing --------. retailers can share real,time data on sales and current in!entory le!els withsuppliers who tae responsibility for ordering and deli!ering products to retailers. thereby sa!ingtime and money0A) dual distribution modesB) continuous in!entory replenishment systemsC) the 5nternet) their own trucing and distribution systems") integrated distributionAnswer# Biff# + $age %ef# &;1AAC(B# se of 5T(ill# ConceptOb*ecti!e# 1+,8

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'1) Dancaster Bo/ Company wants to pro!ide better customer ser!ice while trimmingdistribution costs through teamwor. both inside the company and among all the maretingchannel organiations0 Dancaster Bo/ is thining of --------0A) integrated logistics managementB) supply chain management

C) customer relationship management) horiontal mareting system") disintermediationAnswer# Aiff# + $age %ef# &;1AAC(B# Communication(ill# ConceptOb*ecti!e# 1+,8

'+) What is the goal of integrated supply chain management?A) to reduce costsB) to increase ser!ices with minimal cost through teamwor C) to harmonie all of the company


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'7) The success of each channel member depends on the performance of --------0A) ey channel membersB) the entire supply chainC) the channel captain) the manufacturer

") the wholesaler Answer# Biff# + $age %ef# &;+(ill# ConceptOb*ecti!e# 1+,8

'8) Today. a growing number of firms now outsource some or all of their logistics to --------0A) cross,functional teamsB) disintermediariesC) channel members) third,party logistics pro!iders

") competitorsAnswer# iff# 1 $age %ef# &;+(ill# ConceptOb*ecti!e# 1+,8

';) 5n designing its mareting channel. Chairs for "!ery Occasion has mo!ed from a mae,and,sell !iew of its business. which focused on producti!e inputs and factory capacity as a starting point for mareting planning. to a sense,and respond !iew. which begins instead with the needsof target customers0 With this new !iew. Chairs for "!ery Occasion is de!eloping its --------0A) supply chainB) wholesaler chainC) demand chain) logistics") !ertical mareting systemAnswer# Ciff# & $age %ef# &&2AAC(B# %eflecti!e Thining(ill# ApplicationOb*ecti!e# 1+,1

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'') $roud $ets. a producer of clothing and accessories for pets. has recently partnered with aregional chain of pet stores0 Which of the following would $roud $ets be D"A(T liely to e/pectfrom its new channel member?A) promoting its products through ad!ertisingB) assembling and pacaging its products for final sale

C) distributing rele!ant mareting research information) identifying raw materials and other producti!e inputs") negotiating on its products< pricesAnswer# iff# + $age %ef# &74AAC(B# %eflecti!e Thining(ill# ApplicationOb*ecti!e# 1+,1

'2) (te!e


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24) When two Taco Bell restaurants ha!e a disagreement o!er who should be able to sell inuantity at a discount to the local high school band. they are in a -------- conflict0A) !erticalB) problematicC) no,win

) horiontal") functionalAnswer# iff# + $age %ef# &7+AAC(B# %eflecti!e Thining(ill# ApplicationOb*ecti!e# 1+,+

21) (taples Office (upply opened an online store that created competition with many of itsdealers0 The corporate office created a -------- conflict0A) !ertical

B) problematicC) no,win) horiontal") intermediationAnswer# Aiff# + $age %ef# &7+AAC(B# %eflecti!e Thining(ill# ApplicationOb*ecti!e# 1+,+

2+) Which of the following is an e/ample of horiontal channel conflict?A) managers of two separate 6oliday 5nns disagreeing o!er what constitutes poor ser!iceB) nited Airlines competing with Northwest Airlines for customersC) disgruntled factory worers complaining about a small pay raise) the B9W dealership in >ort Wayne complaining that the B9W dealership in 5ndianapolis issituated too close") A and Answer# "iff# & $age %ef# &7+AAC(B# %eflecti!e Thining(ill# ApplicationOb*ecti!e# 1+,+



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2&) Which of the following is an e/ample of a manufacturer,sponsored retailer franchise system?A) fast,food restaurants such as 9conaldord and its networ of independent franchised dealers) licensed bottlers that bottle and sell Coca,Cola to retailers

") motels such as 6oliday 5nn and %amada 5nnAnswer# Ciff# & $age %ef# &78AAC(B# Analytic (ills(ill# ApplicationOb*ecti!e# 1+,+

27) When 9conald


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2;) Blocbuster offers rentals through its Total Access online rental ser!ice and through its brics,and,mortar stores0 This is an e/ample of an)--------0A) contractual 9(B) administered 9(C) horiontal mareting system

) con!entional distribution channel") multichannel distribution systemAnswer# "iff# 1 $age %ef# &7;AAC(B# %eflecti!e Thining(ill# ApplicationOb*ecti!e# 1+,+

2') When Netfli/ began deli!ering s directly to customers through the mail instead of usinga bric,and,mortar system. Netfli/ was following the trend of --------0A) indirect mareting

B) disintermediationC) a franchise system) e/clusi!e distribution") selecti!e distributionAnswer# Biff# 1 $age %ef# &7'AAC(B# %eflecti!e Thining(ill# ApplicationOb*ecti!e# 1+,+

22) Chewing gum is stoced in many outlets in the same maret or community@ in fact. it is placed in as many outlets as possible0 This is an e/ample of -------- distribution0A) e/clusi!eB) selecti!eC) multichannel) intensi!e") disintermediatedAnswer# iff# + $age %ef# &81AAC(B# %eflecti!e Thining(ill# ApplicationOb*ecti!e# 1+,&

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2:) Which products) will most liely be intensi!ely distributed?A) Olympus digital camerasB) B9W carsC) Euess blue *eans) Coca Cola

") Nie running shoesAnswer# iff# 1 $age %ef# &81AAC(B# Analytic (ills(ill# ApplicationOb*ecti!e# 1+,&

:4) Which product will most liely be e/clusi!ely distributed?A) B9W carsB) De!iarms yogurt") Coca,ColaAnswer# Aiff# 1 $age %ef# &81AAC(B# Analytic (ills(ill# ApplicationOb*ecti!e# 1+,&

:1) Tiffany J Co *ewelry can only be found in a limited number of intermediaries0 This is ane/ample of -------- distribution0A) e/clusi!eB) intensi!eC) uality) high,end") independentAnswer# Aiff# + $age %ef# &81AAC(B# %eflecti!e Thining(ill# ApplicationOb*ecti!e# 1+,&

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:+) Why is it important for manufacturers to be sensiti!e to the needs of their dealers?A) ealers ha!e few legal rights0B) $oorly performing dealers will be replaced0C) ealers fail to pro!ide !alue to the entire channel system0) ealer support is essential to creating !alue for the customer0

") 9anufacturers cannot brea commitments to channel0Answer# iff# + $age %ef# &8&AAC(B# Analytic (ills(ill# ApplicationOb*ecti!e# 1+,7

:&) Caterpillar. the famous hea!y euipment manufacturer. has a reputation for woring inharmony with its worldwide distribution networ of independent dealers0 Caterpillar has sharedits successes with its dealers and protected its dealers during difficult economic times0 This is ane/ample of --------0A) intensi!e distributionB) integrated logistics managementC) disintermediation) third,party logistics") partner relationship managementAnswer# "iff# + $age %ef# &8&AAC(B# %eflecti!e Thining(ill# ApplicationOb*ecti!e# 1+,7

:7) 9a/ (amuelson is a high,end fashion designer who marets his clothing lines through alimited number of highly reputable retailers0 9a/ uses --------0A) e/clusi!e distributionB) e/clusi!e dealingC) e/clusi!e territorial agreements) full,line forcing") tying agreementsAnswer# Aiff# & $age %ef# &8;AAC(B# %eflecti!e Thining(ill# ApplicationOb*ecti!e# 1+,7



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:8) =ewels for the %ich and >amous sells !ery e/clusi!e *ewelry with a minimum price ofK+8.444 to customers around the world0 (peed of deli!ery to distant marets is a must09anagement should consider using -------- as its main carrier0A) railB) air

C) truc ) the 5nternet") water Answer# Biff# + $age %ef# &;4AAC(B# Analytic (ills(ill# ApplicationOb*ecti!e# 1+,8

:;) Eray!ille %oc and Era!el. located in a seaport town. sells roc. gra!el. and sand to localmarets0 5t has *ust been awarded a contract with a company 844 miles down the coast09anagement should consider switching from truc to -------- transport0A) water B) railC) pipeline) air ") none of the abo!eAnswer# Aiff# + $age %ef# &;4AAC(B# Analytic (ills(ill# ApplicationOb*ecti!e# 1+,8

:') When 6ome epot allows ey suppliers to use its stores as a testing ground for newmerchandising programs. it is implementing a --------0A) shared ser!icesB) partnership managementC) shared pro*ects) third,party pro*ect") cross,functional. cross,company teamAnswer# Ciff# + $age %ef# &;+AAC(B# %eflecti!e Thining(ill# Application

Ob*ecti!e# 1+,8

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:2) $( (upply Chain (olutions. which handles all of its clients< Hgrunt worH associated withlogistics. is an e/ample of --------0A) integrated logistics managementB) a distribution center C) selecti!e distribution

) a third,party logistics pro!ider ") a cross,functional. cross,company teamAnswer# iff# + $age %ef# &;+AAC(B# %eflecti!e Thining(ill# ApplicationOb*ecti!e# 1+,8

Refer to the scenario below to answer the following questions.

9iller 9eat Company contracts with se!eral 9idwestern farmers to raise beef and porfor its meat processing center0 To guarantee freshness. 9iller 9eat Company relies on a !astdistribution networ0 >or deli!ery to local grocers in 5ndiana. 9iller 9eat uses its own fleet ofrefrigerated trucs@ deli!ery to these 5ndiana grocers constitutes ;8 percent of 9iller 9eator deli!eries in 5llinois. Wisconsin. and points directly west of the 9ississippi %i!er.9iller 9eat Company contracts with a refrigerated fleet that specialies in e/pediting smallershipments0 >or faster deli!ery during pea times. 9iller 9eat Company often uses its own trucsto deli!er to the e/pedited fleetorthese specialty shipments within 5ndiana. 5llinois. and Wisconsin. 9iller uses its normal deli!erymode0 >or all other specialty shipments. 9iller ships from its distribution warehouse !ia air. thencontracts with e/pedited carriers in !arious cities to deli!er to the recipients0

::) Which of the following is one of 9iller 9eat Company


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144) 5n using air transportation and then e/pedited truc carriers to deli!er specialty items tocustomers outside of a designated deli!ery range. 9iller 9eats is using --------0A) all of its supply chainB) all of its !alue deli!ery networ C) indirect mareting channels

) intermodal transportation") a !ertical mareting systemAnswer# iff# + $age %ef# &;4AAC(B# %eflecti!e Thining(ill# ApplicationOb*ecti!e# 1+,8

141) $roducing a product or ser!ice and maing it a!ailable to buyers reuires buildingrelationships not *ust with customers. but also with ey suppliers and resellers in the companyAD("iff# + $age %ef# &&2AAC(B# Analytic (ills(ill# ApplicationOb*ecti!e# 1+,1

147) With the success of the 5nternet. few producers sell through intermediaries today0Answer# >AD("iff# 1 $age %ef# &&:

AAC(B# se of 5T(ill# ConceptOb*ecti!e# 1+,1



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148) 5maginati!e distribution systems can be used to gain a competiti!e ad!antage0Answer# T%"iff# 1 $age %ef# &&:(ill# ConceptOb*ecti!e# 1+,1

14;) A ma*or role played by intermediaries is to buy large uantities of products from many producers and brea them down into the smaller uantities and broader assortments wanted byconsumers0Answer# T%"iff# + $age %ef# &74(ill# ConceptOb*ecti!e# 1+,1

14') 9embers of the mareting channel may help a company complete transactions by performing ey functions such as promotion and negotiation0

Answer# T%"iff# + $age %ef# &74AAC(B# Communication(ill# ConceptOb*ecti!e# 1+,1

142) 5t is safe to say that distribution channels are fairly simple beha!ioral systems in which people and companies interact to accomplish indi!idual company and channel goals0Answer# >AD("iff# + $age %ef# &7+(ill# ConceptOb*ecti!e# 1+,+

14:) =udy (mith is the manager of the local 9conald


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111) When (herwin Williams $aint Company has single ownership of integrated. successi!estages of production and distribution. it has created a corporate 9(0Answer# >AD("iff# & $age %ef# &77AAC(B# %eflecti!e Thining

(ill# ApplicationOb*ecti!e# 1+,&

11+) When the NewWay ry Cleaners and The "asy Daundromat in your hometown *oin forcesto follow a new mareting opportunity. they are forming a horiontal mareting system0Answer# T%"iff# + $age %ef# &78AAC(B# %eflecti!e Thining(ill# ApplicationOb*ecti!e# 1+,&

11&) Always >resh $roduce Company has a route selling to more than 144 groceries. schools.and restaurants at wholesale prices0 Dast wee the owners opened up a wal,in discountedconsumer produce outlet0 Always is now using a multichannel distribution system0Answer# T%"iff# + $age %ef# &7;AAC(B# %eflecti!e Thining(ill# ApplicationOb*ecti!e# 1+,&

117) isintermediation as a trend is on the rise in 0(0 business0Answer# T%"iff# 1 $age %ef# &7'(ill# ConceptOb*ecti!e# 1+,&

118) isintermediation has occurred when an online mareter taes business away fromtraditional bric,and,mortar retailers0Answer# T%"iff# + $age %ef# &7'(ill# ConceptOb*ecti!e# 1+,&

11;) The faster the deli!ery. the greater the assortment pro!ided. and the more add,on ser!ices

supplied. the more the channelAD("iff# + $age %ef# &7:(ill# ConceptOb*ecti!e# 1+,&

+7&Copyright 3 +414 $earson "ducation. 5nc0 $ublishing as $rentice 6all


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11') 5ntensi!e distribution sees many outlets in a maret. while selecti!e distribution sees onlyone outlet in a gi!en maret area0Answer# >AD("iff# + $age %ef# &81(ill# Concept

Ob*ecti!e# 1+,&

112) The producer and intermediaries need to agree on the terms and responsibilities of eachmember. including price policies. conditions of sale. territorial rights. and specific ser!ices to be performed by each party0Answer# T%"iff# + $age %ef# &81(ill# ConceptOb*ecti!e# 1+,&

11:) Eenerally speaing. a company


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1+&) The ey to managing in!entory is to balance the costs and benefits of holding largerin!entories with the costs and benefits of holding less0Answer# T%"iff# & $age %ef# &8:(ill# Concept

Ob*ecti!e# 1+,8

1+7) When shipping large amounts of bul products such as forest products. coal. sand. or roco!er long distances. a company should choose large trucs because of their low cost per tonshipped0Answer# >AD("iff# 1 $age %ef# &;4AAC(B# Analytic (ills(ill# ConceptOb*ecti!e# 1+,8

1+8) 5ntegrated logistics management aims to pro!ide better customer ser!ice and trimdistribution costs through teamwor. both inside the company and among all the maretingchannel organiations0Answer# T%"iff# + $age %ef# &;1AAC(B# Communication(ill# ConceptOb*ecti!e# 1+,8

1+;) "/plain why H!alue deli!ery networH is a more rele!ant e/pression to use than the termssupply chain and demand chain0Answer# (upply chain taes a mae,and,sell !iew of the business. using materials and otherinputs as the starting point for maret planning instead of the needs of target customers0 emandchain taes a sense,and,respond !iew. starting with the needs of target customers and planning achain of resources and acti!ities with the goal of creating customer !alue0 6owe!er. a demandchain is a step,by,step. linear !iew of purchase,production,consumption acti!ities0 This does notallow for the fle/ibility made possible by the 5nternet and other technologies0 alue deli!erynetwor is more appropriate because it is made up of the company. suppliers. distributors. andultimately customers who partner with each other to impro!e the performance of the entiresystem0iff# 1 $age %ef# &&2AAC(B# Analytic (ills(ill# Application

Ob*ecti!e# 1+,1



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1+') 6ow do channel members add !alue to a mareting system?Answer# 5ntermediaries reduce the amount of wor that must be done by both producers andconsumers0 They transform the assortment of products made by producers into the assortmentwanted by consumers0 They buy large uantities from many producers and brea them down intothe smaller uantities and broader assortments wanted by consumers0 5ntermediaries help to

match supply and demand0 Channel members add !alue by bridging the ma*or time. place. and possession gaps that separate goods and ser!ices from those who would use them0iff# + $age %ef# &&:AAC(B# Analytic (ills(ill# ApplicationOb*ecti!e# 1+,1

1+2) What are the eight ey functions that members of the mareting channel perform?Answer# (ome help to complete transactions by gathering and distributing information.de!eloping and spreading promotions. contacting prospecti!e buyers. matching and shaping theoffer to the buyer


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1&1) 6ow ha!e changes in technology and the growth of online mareting affected the design ofmareting channels?Answer# Changes in technology and the growth of online mareting ha!e increaseddisintermediation. which is the cutting out of mareting channel intermediaries by product orser!ice producers. or the displacement of traditional intermediaries with radically new types0 5n

many industries. traditional intermediaries are dropping by the wayside0 >or e/ample. manyairlines now sell directly to final buyers. cutting retailers and sales agents from their maretingchannels0 Online mareters tae business from traditional bric,and,mortar retailers0iff# + $age %ef# &7'AAC(B# se of 5T(ill# ApplicationOb*ecti!e# 1+,+

1&+) istinguish between the three distribution strategies0Answer# $roducers of con!enience products and common raw materials typically see intensi!edistribution as a strategy to stoc their products in as many outlets as possible0 The goods area!ailable where and when consumers want them. such as chewing gum0 (electi!e distribution isused when selling to more than one but fewer than all of the intermediaries who are willing tocarry a company


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1&7) iscuss how public policy affects distribution decisions0Answer# >or the most part. companies are legally free to de!elop whate!er channel arrangementsuits them. as long as they do not substantially lessen competition or tend to create a monopoly.and as long as both parties enter into the agreement !oluntarily0 "/clusi!e territorial agreementsin which a producer attempts to eep a dealer from selling outside of a designated territory ha!e

become a ma*or legal issue0 $roducers are free to select their dealers. but they must ha!elegitimate cause to terminate a relationship with a dealer0iff# & $age %ef# &88,&8;AAC(B# "thical %easoning(ill# ApplicationOb*ecti!e# 1+,7

1&8) Why are more and more companies turning to third,party logistics pro!iders &$Ds)?Answer# A third,party logistics pro!ider is an independent company that performs any or all ofthe functions reuired to get a producerinally. integrated logistics companies understand increasingly comple/ logistics en!ironments0>or e/ample. third,party logistics partners can be especially helpful to companies attempting toe/pand their global maret co!erage0iff# & $age %ef# &;+AAC(B# Analytic (ills(ill# ApplicationOb*ecti!e# 1+,8

1&;) What is the role of mareting intermediaries?Answer# The role of mareting intermediaries is to transform the assortments of products made by producers into the assortments wanted by consumers0iff# 1 $age %ef# &74AAC(B# Analytic (ills(ill# ApplicationOb*ecti!e# 1+,1

1&') Ei!e an e/ample of horiontal conflict0Answer# This type of conflict occurs among firms at the same le!el of the channel@ an e/amplewould be two Che!rolet dealers in the (t0 Douis area that complain that each is being undercut bythe other0

iff# 1 $age %ef# &7+AAC(B# %eflecti!e Thining(ill# ApplicationOb*ecti!e# 1+,+



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1&2) Ei!e an e/ample of !ertical conflict0Answer# This type of conflict occurs between different le!els of the same channel@ an e/amplewould be conflict created by a manufacturer toward its dealers when deciding to open an onlineoperation0iff# 1 $age %ef# &7+

AAC(B# %eflecti!e Thining(ill# ApplicationOb*ecti!e# 1+,+

1&:) "/plain channel power in a con!entional distribution channel0Answer# No channel member has much control o!er the other members. and no formal meanse/ists for assigning roles and resol!ing channel conflict0iff# + $age %ef# &77AAC(B# Analytic (ills(ill# ApplicationOb*ecti!e# 1+,+

174) "/plain channel power in a !ertical mareting system0Answer# One channel member owns the others. has contracts with them. or wields so much power that they must all cooperate0iff# + $age %ef# &77AAC(B# Analytic (ills(ill# ApplicationOb*ecti!e# 1+,+

171) 6ow can a firm benefit from in!ol!ement in a contractual 9(?Answer# A contractual 9( consists of independent firms at different le!els of production anddistribution that *oin together through contracts to obtain more economies or sales impact thaneach could achie!e alone0iff# & $age %ef# &78AAC(B# Analytic (ills(ill# ApplicationOb*ecti!e# 1+,+

17+) 6ow can a firm benefit from participating in a horiontal mareting system?Answer# Two or more companies at one le!el *oin together to follow a new maretingopportunity@ by woring together. companies can combine their financial. production. ormareting resources to accomplish more than any one company could alone0iff# & $age %ef# &78

AAC(B# Analytic (ills(ill# ApplicationOb*ecti!e# 1+,+

+7:Copyright 3 +414 $earson "ducation. 5nc0 $ublishing as $rentice 6all


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17&) Ei!e two e/amples of multichannel distribution systems0Answer# (tudents< answers will !ary0 "/amples will include =0 C0 $enney


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172) When would an e/clusi!e dealing contract be legally problematic?Answer# An e/clusi!e dealing contract may be illegal if one party has not !oluntarily agreed tothe contract. or if the arrangement substantially lessens competition or tends to create amonopoly0iff# & $age %ef# &8;

AAC(B# "thical %easoning(ill# ApplicationOb*ecti!e# 1+,7

17:) 6ow can a company benefit through a *ust,in,time logistics system?Answer# With such systems. producers and retailers carry only small in!entories of parts ormerchandise. often only enough for a few days of operations0 This creates substantial sa!ings inin!entory,carrying and handling costs0iff# + $age %ef# &8:AAC(B# Analytic (ills(ill# Application

Ob*ecti!e# 1+,8

184) "/plain why a firm

kotler chapter 12 mcq

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