Concept quiz



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MKTG 406 “CONCEPT QUIZ” POOL

[From MKTG 300 “PLACE” Exam Items]


Marketing Channels (Ch. 13 MKTG 300 Text)

MULTIPLE CHOICE
1. A _____ is a business structure of interdependent organizations that reaches from the point of product origin to the consumer.

a.

facilitating agency or place member

b.

marketing mix intermediary

c.

selective distribution channel

d.

marketing channel or channel of distribution

e.

transportation channel or channel of movement

ANS: D


This is the definition of a marketing channel, also called the channel of distribution.

PTS: 1 REF: 201 OBJ: 13-1 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
2. Jones Soda is positioned as the anti-Coke. In the early years, few mainstream retailers sold Jones Soda. Fans had to get their Jones fix in surf shops, tattoo parlors, and bookstores, adding to the brand’s mystique. Jones Soda used its _____ to create a competitive advantage.

a.

channel ascendancy

b.

distribution channel

c.

channel conflict

d.

channel focus

e.

vertical integration

ANS: B


Its unusual retail venues added to the brand’s mystique.

PTS: 1 REF: 201 OBJ: 13-1 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
3. Kayak.com is a company that allows customers to efficiently search databases to find the best airline and hotel deals all over the Web. Kayak does not make bookings but rather provides recommendations for the best travel plans. Travel providers pay Kayak a commission when customers click through to their sites. Kayak.com, travelers, the airlines, and the hotels are all part of a:

a.

facilitating agency

b.

marketing mix intermediary

c.

selective promotion channel

d.

marketing channel or channel of distribution

e.

transportation channel or channel of movement

ANS: D


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

PTS: 1 REF: 201 OBJ: 13-1 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
4. Marketing channels can achieve economies of scale through:

a.

overcoming spatial discrepancies

b.

contact expertise

c.

specialization and division of labor

d.

overcoming temporal discrepancies

e.

overcoming discrepancies of quantity

ANS: C


The concept of specialization and division of labor involves breaking down a complex task into smaller, simpler ones and allocating them to specialists, creating greater efficiency and lower average production costs.

PTS: 1 REF: 202 OBJ: 13-1 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Analysis
5. Distribution channels aid in overcoming barriers to exchange that are created in the production process by overcoming all of the following types of discrepancies EXCEPT:

a.

possession

b.

assortment

c.

quantity

d.

spatial

e.

temporal

ANS: A


Channels facilitate the end goal of possession of the goods, but they do not help to overcome a discrepancy of possession.

PTS: 1 REF: 202 OBJ: 13-1 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Analysis
6. A discrepancy of _____ is the difference between the amount of product produced and the amount an end user wants to buy.

a.

space

b.

quantity

c.

assortment

d.

accumulation

e.

possession

ANS: B


This is the definition of the discrepancy of quantity.

PTS: 1 REF: 202 OBJ: 13-1 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
7. Kraft Foods produces millions of packages of Chips Ahoy cookies each year, but consumers only want to purchase one package at a time. This difference between the amount Kraft produces and the amount a consumer wants to buy is referred to as a:

a.

discrepancy of quantity

b.

discrepancy of assortment

c.

spatial discrepancy

d.

temporal discrepancy

e.

discrepancy of possession

ANS: A


A discrepancy of quantity is the difference between the amount of product produced and the amount an end user wants to buy.

PTS: 1 REF: 202 OBJ: 13-1 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
8. Which of the following is the lack of all the items a customer needs to receive full satisfaction from a product or products?

a.

Discrepancy of assortment

b.

Discrepancy of quantity

c.

Spatial discrepancy

d.

Temporal discrepancy

e.

Discrepancy of possession

ANS: A


This is the definition of the assortment discrepancy.

PTS: 1 REF: 202-203 OBJ: 13-1 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
9. McKesson Wholesalers provides healthcare products to pharmacies. It purchases bandages, gauze, antibacterial cream, and ointments from a variety of different manufacturers and resells them to pharmacies so that many of the items a customer might need for a cut will be available in the store. McKesson is aiding consumers by overcoming a:

a.

spatial discrepancy

b.

discrepancy of quantity

c.

discrepancy of assortment

d.

demand discrepancy

e.

discrepancy of possession

ANS: C


A manufacturer may only produce one product, yet additional products may be required to actually use the first product. This creates a discrepancy of assortment.

PTS: 1 REF: 202-203 OBJ: 13-1 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
10. Certified Grocers Midwest, Inc., the Chicago-based grocery wholesale cooperative, provides all kinds of meats, cereals, canned and fresh fruits and vegetables, beauty aids, healthcare items, and pet products to the supermarkets in its channel. Certified Grocers is aiding consumers by overcoming:

a.

spatial discrepancy

b.

discrepancy of quantity

c.

discrepancy of assortment

d.

demand discrepancy

e.

discrepancy of possession

ANS: C


By providing the central buying function on behalf of its customers, Certified Grocers overcomes the discrepancy of assortment and is able to offer many different brands of similar items.

PTS: 1 REF: 202-203 OBJ: 13-1 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
11. A(n) _____ discrepancy is created when a product is produced but a consumer is not ready to purchase it.

a.

quantity

b.

supply

c.

possession

d.

temporal

e.

assortment

ANS: D


This is the definition of a temporal discrepancy.

PTS: 1 REF: 203 OBJ: 13-1 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
12. Cutter & Buck is a high-end fashion sportswear company. Even though swimwear is a product category that does not sell year-round, its sales remain steady all year because Cutter & Buck sells to wholesale distributors that stock the product. Its wholesale distributors are helping to overcome a(n) _____ discrepancy.

a.

assortment

b.

spatial

c.

possession

d.

quantity

e.

temporal

ANS: E


A temporal discrepancy is created when a product is produced but a consumer is not ready to purchase it.

PTS: 1 REF: 203 OBJ: 13-1 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
13. Vicobello is a major manufacturer of outdoor fountains that are popular in gardens. Even though fountains represent a product category that does not sell year-round due to inclement weather, Vicobello’s sales remain steady all year because it sells to wholesale distributors that stock the product. Its wholesale distributors are primarily helping to overcome a(n) _____ discrepancy.

a.

assortment

b.

spatial

c.

possession

d.

quantity

e.

temporal

ANS: E


A temporal discrepancy is created when a product is produced but a consumer is not ready to purchase it. Several of those discrepancies are being partially overcome, but the main one is temporal.

PTS: 1 REF: 203 OBJ: 13-1 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
14. The difference between the location of a producer and the location of widely scattered markets represents a(n) _____ discrepancy.

a.

spatial

b.

temporal

c.

assortment

d.

quantity

e.

ownership

ANS: A


This is the definition of a spatial discrepancy.

PTS: 1 REF: 203 OBJ: 13-1 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
15. YKK slide fasteners (zippers) are made in Macon, Georgia, yet manufactures all over the world use zippers to manufacture, clothes, luggage, shoes, and other items. Wholesalers around the world primarily help to overcome a(n) _____ discrepancy.

a.

creation

b.

temporal

c.

assortment

d.

spatial

e.

ownership

ANS: D


Markets are often scattered over large geographic regions, yet a manufacturer may only have one location in the country. This creates a spatial discrepancy.

PTS: 1 REF: 203 OBJ: 13-1 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
16. Marketing channels make distribution simpler by reducing the number of transactions required to get products from manufacturers to consumers. This is called:

a.

forward integration

b.

contact efficiency

c.

elimination of temporal discrepancies

d.

sorting

e.

reciprocity

ANS: B


Marketing channels provide contact efficiencies by reducing the number of stores customers must shop in to complete their purchases.

PTS: 1 REF: 203 OBJ: 13-1 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
17. When an intermediary in the channel of distribution owns the merchandise and controls the terms of the sale, this is referred to as:

a.

complete control

b.

exclusive distribution

c.

taking title

d.

contact efficiency

e.

economies of scale

ANS: C


This is the definition of taking title.

PTS: 1 REF: 204 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
18. The major characteristic that is used to differentiate among types of intermediaries is whether they:

a.

install exchange barriers such as location, time, and quantity

b.

create specialization of labor

c.

create economies of scale

d.

take title to the products they sell

e.

raise profit margins for independent middlemen

ANS: D


Taking title means they own the merchandise and control the terms of the sale.

PTS: 1 REF: 204 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
19. Retailers and merchant wholesalers are examples of intermediaries that:

a.

take title to a product

b.

create temporal and spatial discrepancies

c.

use consumer promotions

d.

do not benefit from any economies of scale

e.

are accurately described by all of these statements

ANS: A


Retailers and merchant wholesalers own the merchandise and control the terms of its ultimate sale.

PTS: 1 REF: 204 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
20. Which of the following intermediaries sell mainly to consumers?

a.

Retailers

b.

Merchant wholesalers

c.

Agents

d.

Brokers

e.

Specialists

ANS: A


Retailers are firms that sell mainly to consumers.

PTS: 1 REF: 204 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
21. A(n) _____ is an institution that buys goods from manufacturers, takes title to these goods, and resells them to businesses, government agencies, and/or other wholesalers or retailers.

a.

merchant wholesaler

b.

agent

c.

drop shipper

d.

channel cooperative

e.

marketing cooperative

ANS: A


This is the definition of a merchant wholesaler.

PTS: 1 REF: 204 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
22. W.W. Grainger, Inc., is one of the world’s largest business-to-business distributors of equipment, component parts, and supplies in the United States and Canada. It has ownership title to over 220,000 products, which are stocked in one national and nine regional warehouses to guarantee product availability and quick service to the many manufacturers who are its customers. W.W. Grainger is an example of a(n):

a.

agent or broker

b.

merchant wholesaler

c.

retailer

d.

consumer market

e.

hypermarket intermediary

ANS: B


A merchant wholesaler is an institution that buys goods from manufacturers and resells them to other wholesalers and retailers. Merchant Wholesalers receive and take title to the goods, own warehouses, and ship the products they sell.

PTS: 1 REF: 204 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
23. Long Island Lefty provides retailers and other businesses with the latest and the best products for left-handed consumers. It buys all types of products from a variety of manufacturers and stores the merchandise in its New York warehouse until purchased by buyers. Long Island Lefty does not sell to end users and is an example of a(n):

a.

agent or broker

b.

merchant wholesaler

c.

retailer

d.

consumer market

e.

hypermarket intermediary

ANS: B


A merchant wholesaler is an institution that buys goods from manufacturers and resells them to other wholesalers and retailers. Merchant wholesalers receive and take title to the goods, own warehouses, and ship the products they sell.

PTS: 1 REF: 204 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
24. Agents and brokers:

a.

have a great deal of control and risk invested in the goods

b.

only represent manufacturers in sales situations

c.

have a great deal of input on the terms of the sale

d.

generally are on salary with the manufacturer

e.

do not take title to merchandise

ANS: E


Agents and brokers represent retailers, wholesalers, or manufacturers in sales situations, but the agent or broker generally has little input into the terms of the sale. Agents and brokers generally receive a fee or commission and do not take title, control, or risk concerning the merchandise.

PTS: 1 REF: 204 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Analysis
25. _____ are intermediaries who facilitate the sales of a product from producer to end user by representing retailers, wholesalers, or manufacturers and providing little input as to the terms of the sale.

a.

Marketing facilitators

b.

Channel cooperatives

c.

Agents and brokers

d.

Merchant wholesalers

e.

Channel functionaries

ANS: C


Agents and brokers simply facilitate the sale of a product from producer to end user.

PTS: 1 REF: 204 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
26. Generally, _____ determine what type of intermediary a manufacturer should use:

a.

product characteristics, buyer consideration, and market characteristics

b.

only internal environmental characteristics

c.

competitive conditions and government regulations

d.

all controllable marketing factors

e.

only noncontrollable environmental factors

ANS: A


The correct answer combines both internal and external elements. The internal elements can be controlled by the manufacturer, while external environmental factors cannot.

PTS: 1 REF: 204 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
27. 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

ANS: A


See Exhibit 13.2.

PTS: 1 REF: 205 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
28. Which of the following is a transactional function performed by intermediaries?

a.

Sorting

b.

Researching

c.

Risk taking

d.

Physically distributing

e.

Storing

ANS: C


Transactional functions include contacting and promoting, negotiating, and risk taking.

PTS: 1 REF: 205 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
29. 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

ANS: E


See Exhibit 13.2.

PTS: 1 REF: 205 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Analysis
30. 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

ANS: A


Logistical functions include physically distributing, storing, and sorting products.

PTS: 1 REF: 205 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
31. Marketing channels perform all of the following logistical activities EXCEPT:

a.

sorting

b.

storing

c.

physically distributing

d.

risk taking

e.

breaking bulk

ANS: D


Risk taking is a transactional activity. See Exhibit 13.2

PTS: 1 REF: 205 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Analysis
32. All of the following are sorting activities EXCEPT:

a.

assorting

b.

accumulation

c.

sorting out

d.

allocation

e.

possession

ANS: E


See Exhibit 13.2.

PTS: 1 REF: 205 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Analysis
33. Breaking bulk at the wholesale level is called:

a.

allocating

b.

accumulation

c.

storing

d.

downsizing

e.

grading

ANS: A


Allocating is breaking a homogeneous supply into smaller and smaller lots (“breaking bulk”). See Exhibit 13.2.

PTS: 1 REF: 205 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
34. With respect to the sorting logistical function, _____ is the combining of similar stocks into a larger homogeneous supply.

a.

sorting out

b.

accumulating

c.

allocating

d.

breaking bulk

e.

assorting

ANS: B


Accumulating is combining similar stocks into a larger homogeneous supply.

PTS: 1 REF: 205 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
35. Which of the following are examples of facilitating functions performed by wholesaling intermediaries?

a.

Sorting and storing

b.

Risk taking and promotion

c.

Assorting, accumulating, grading, and allocating

d.

Researching and financing

e.

Financial management and storing

ANS: D


See Exhibit 13.2.

PTS: 1 REF: 205 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
36. _____ is 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.

a.

Disintermediation

b.

Logistics

c.

Materials handling

d.

Intermodal transportation

e.

Contract logistics

ANS: B


This is the definition of logistics.

PTS: 1 REF: 205 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
37. _____ describes the process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption.

a.

Contract logistics

b.

Logistics

c.

Cross-docking

d.

Disintermediation

e.

Channel facilitation

ANS: B


This describes the logistics function.

PTS: 1 REF: 205 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
38. Serenity is a manufacturer of outdoor fountains that are popular in gardens. Even though fountains represent a product category that does not sell year-round due to inclement weather, Serenity’s sales remain steady all year because it sells to wholesale distributors that stock the product. Serenity sells to wholesale distributors that perform _____ functions for the manufacturer.

a.

financial

b.

transactional

c.

facilitating

d.

logistical

e.

promotional

ANS: D


Storing for later sale to retailers is a logistical function. See Exhibit 13.2.

PTS: 1 REF: 205 OBJ: 13-2 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
39. One configuration of a marketing channel entails producers selling to consumers with no intermediaries involved. This is called a:

a.

limited distribution system

b.

conventional channel

c.

vertical marketing system

d.

reciprocal channel

e.

direct channel

ANS: E


Producers use the direct channel to sell directly to consumers.

PTS: 1 REF: 206 OBJ: 13-3 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
40. The only way that Jim Keeler in New Mexico can get a box of Carolyn Popwell’s Festive Holiday Truffles from Washington is to order it through the mail. Popwell, who makes the candy by hand, uses a(n) _____ exclusively.

a.

exclusive distribution system

b.

conventional channel

c.

vertical marketing system

d.

reciprocal channel

e.

direct channel

ANS: E


The manufacturer sells directly to the consumer.

PTS: 1 REF: 206 OBJ: 13-3 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
41. All of the following are typical channel members in marketing channels for consumer products EXCEPT:

a.

retailers

b.

agent/brokers

c.

industrial distributors

d.

producers

e.

wholesalers

ANS: C


Industrial distributors are used for distributing industrial, not consumer, products. See also Exhibit 13.3 and Exhibit 13.4.

PTS: 1 REF: 206-207 OBJ: 13-3 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Analysis
42. Vutek manufactures printing machines used to print high-resolution graphics for billboards, bus cards, banners, and posters. For distribution, you would expect Vutek to use a:

a.

network of facilitating agents

b.

horizontally integrated channel

c.

reciprocal channel

d.

direct channel

e.

vertical marketing system

ANS: D


Direct channels are typical in business and industrial markets.

PTS: 1 REF: 207 OBJ: 13-3 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
43. Centigon is a manufacturer of customized armored vehicles for military, private, presidential, and commercial uses. Each armored vehicle is designed to deliver security on the road while also achieving optimum levels of performance and comfort. For distribution, you would expect Centigon to use a:

a.

network of facilitating agents

b.

horizontally integrated channel

c.

reciprocal channel

d.

direct channel

e.

vertical marketing system

ANS: D


For customized business products requiring detailed specifications, the most common channel structure is the direct channel because of the amount of interaction and direct communication required.

PTS: 1 REF: 207 OBJ: 13-3 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
44. Companies selling standardized items of moderate or low value to other businesses (not to consumers) often use:

a.

retailers

b.

industrial distributors

c.

wholesalers

d.

bulk breakers

e.

industrial resellers

ANS: B


In many ways, an industrial distributor is like a supermarket for organizations.

PTS: 1 REF: 207 OBJ: 13-3 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
45. _____ distribution occurs when a producer selects two or more different channels to distribute the same products to target markets.

a.

Selective

b.

Intensive

c.

Dual

d.

Contractual

e.

Cumulative

ANS: C


Dual distribution (multiple distribution), is the use of two (or more) channels to distribute the same product to target markets.

PTS: 1 REF: 208 OBJ: 13-3 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
46. Customers can purchase Hewlett-Packard computers from retail stores like Best Buy and Office Depot, online directly from HP, and through various catalogs. HP is using a(n) _____ distribution arrangement.

a.

intensive

b.

multiple

c.

exclusive

d.

cumulative

e.

aggregated

ANS: B


Multiple distribution occurs when a producer selects two or more different channels to distribute the same products to target markets.

PTS: 1 REF: 208 OBJ: 13-3 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
47. Which of the following enables a company to use another manufacturer’s already established channel?

a.

Strategic channel alliances

b.

Relationship channels

c.

Reverse channels

d.

Multiple distribution systems

e.

Nontraditional channelization

ANS: A


Alliances are used most often when the creation of marketing channel relationships may be too expensive and time-consuming.

PTS: 1 REF: 208 OBJ: 13-3 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
48. Selfridges is the second-largest department store in Great Britain. It works with House of Frasier, one of its competitors, to reduce operating costs by sharing channels of distribution to ship goods from 1,500-plus suppliers. Selfridges and House of Frasier are engaged in:

a.

vertical conflict

b.

an integrated supply chain

c.

a strategic channel alliance

d.

an information-based distribution channel

e.

a distribution cooperative

ANS: C


A strategic channel alliance is a cooperative agreement between businesses to use each other’s already-established distribution channels.

PTS: 1 REF: 208 OBJ: 13-3 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
49. When Delphi-Grundig, a manufacturer of state-of-the-art car radios, decided to expand its marketing efforts into countries in which its products are not currently available, it did not have the time or resources to spend on developing new channels of distribution. Delphi-Grundig should consider a(n):

a.

industrial distributor

b.

franchising system

c.

reverse channel

d.

strategic channel alliance

e.

channel cooperative

ANS: D


Strategic channel alliances use another manufacturer’s already-established channel and are used when the creation of marketing channel relationships may be expensive and time-consuming.

PTS: 1 REF: 208 OBJ: 13-3 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
50. Which of the following statements concerning how market factors affect channel decisions is true?

a.

Industrial customers tend to buy in larger quantities and require more customer service.

b.

Geographically concentrated target markets should be served with an indirect sales force.

c.

Widely dispersed markets require fewer intermediaries.

d.

New firms in extremely competitive markets will be more successful if they use indirect channels.

e.

A very large market requires fewer intermediaries.

ANS: A


Industrial customers’ buying habits are very different from those of consumers, and they tend to buy in larger quantities and require more customer service.

PTS: 1 REF: 209 OBJ: 13-4 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Evaluation
51. Canesta Company has developed a virtual keyboard out of light to be used with cell phones and PDAs. The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user’s digital device. When introduced to the market, the device will sell for less than $50. If, in choosing its channel, Canesta is most concerned about the life cycle of the device, then its choice of channels will largely be influenced by:

a.

factors of production

b.

customer characteristics

c.

ownership factors

d.

product factors

e.

market factors

ANS: D


Stage of the product life cycle is a product factor.

PTS: 1 REF: 209 OBJ: 13-4 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
52. Canesta Company has developed a virtual keyboard out of light to be used with cell phones and PDAs. The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user’s digital device. When introduced to the market, the device will sell for less than $50. If, in choosing its channel, Canesta is most concerned about its lack of financial, managerial, and marketing resources to support the product’s introduction, then its choice of channels will largely be influenced by:

a.

factors of ownership

b.

market factors

c.

producer factors

d.

product factors

e.

internal environmental characteristics

ANS: C


Financial, managerial, and marketing issues are producer factors.

PTS: 1 REF: 209 OBJ: 13-4 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
53. _____ is distribution aimed at maximum market coverage. It is used for many convenience goods and supplies that need to be available in every outlet where the potential customer might want to buy them.

a.

Selective distribution

b.

Channel franchising

c.

Intensive distribution

d.

Horizontal channeling

e.

Exclusive distribution

ANS: C


The objective of intensive distribution is to achieve mass-market selling.

PTS: 1 REF: 210 OBJ: 13-4 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
54. Chewing gum and soft drinks are sold in grocery stores, service stations, convenience stores, drugstores, discount stores, and motel vending machines. This is a an example of a(n) _____ distribution strategy.

a.

exclusive

b.

reciprocal

c.

selective

d.

horizontal

e.

intensive

ANS: E


Intensive distribution is distribution aimed at maximum market coverage. It is used for many convenience goods that need to be available in every outlet where the potential customer might want to buy them.

PTS: 1 REF: 210 OBJ: 13-4 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
55. Which of the following manufacturers most likely uses intensive distribution?

a.

M&M’s candies

b.

Jen-Weld windows

c.

Calloway golf clubs

d.

Rollerblade in-line skates

e.

Smith & Wesson firearms

ANS: A


Only M&M’s candies are a low-value product that is frequently purchased. Low-value products are commonly sold in a variety of locations.

PTS: 1 REF: 210 OBJ: 13-4 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
56. _____ distribution is achieved by screening dealers to eliminate all but a few in any single geographic area. Shopping goods and some specialty products that consumers are willing to search for are sold this way.

a.

Intensive

b.

Selective

c.

Exclusive

d.

Dual

e.

Controlled

ANS: B


This is a description of selective distribution.

PTS: 1 REF: 210 OBJ: 13-4 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
57. Husqvarna Viking manufactures sewing machines. The company carefully screens its dealers to ensure a quality dealer image and service ability. Only a few dealers are chosen in any single geographic area. This is an example of _____ distribution.

a.

dual

b.

intensive

c.

exclusive

d.

selective

e.

controlled

ANS: D


Selective distribution is achieved by screening dealers to eliminate all but a few in any single geographic area. Shopping goods and some specialty goods that consumers are willing to search for are sold by selective distribution.

PTS: 1 REF: 210 OBJ: 13-4 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
58. Canesta Company has developed a virtual keyboard out of light to be used with cell phones and PDAs. The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user’s digital device. When introduced to the market, the device will sell for less than $50. What level of distribution intensity should the company use?

a.

Exclusive

b.

Controlled

c.

Extensive

d.

Reciprocal

e.

Selective

ANS: E


Screening dealers will promote a quality image for the product. Price is also a factor in its level of distribution intensity. It is not a convenience good.

PTS: 1 REF: 210 OBJ: 13-4 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
59. Polo brand apparel is only available in fine department stores or from Polo retail stores. Which distribution strategy has Polo adopted?

a.

Extensive

b.

Intensive

c.

Premium

d.

Selective

e.

Pioneering

ANS: D


Selective distribution is achieved by screening dealers to eliminate all but a few in any single geographic area. Shopping goods and some specialty goods that consumers are willing to search for are sold by selective distribution.

PTS: 1 REF: 210 OBJ: 13-4 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
60. Which level of distribution intensity is the most restrictive and entails establishing only one or a few dealers within a given geographic area?

a.

Selective

b.

Intensive

c.

Exclusive

d.

Dual

e.

Premium

ANS: C


This is the definition of exclusive distribution.

PTS: 1 REF: 211 OBJ: 13-4 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
61. Rolex is an expensive brand of watches. The company has a policy of only having one or two dealers within a given large geographic area. Buyers of Rolex watches will travel extensively to acquire just the right watch. This is an illustration of which level of distribution intensity?

a.

Exclusive

b.

Intensive

c.

Selective

d.

Reciprocal

e.

Premium

ANS: A


Extensive distribution, the most restrictive form of distribution, entails establishing one or a few dealers within a given geographic area. Because buyers need to be willing to search or travel to acquire the product, this form of distribution is limited to consumer specialty goods, a few shopping goods, and major industrial equipment.

PTS: 1 REF: 211 OBJ: 13-4 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
62. Caterpillar, the manufacturer of tractors and other earthmoving equipment, has an extremely high market share, which means customers seek the dealers out regardless of where they are. There are approximately 50 Caterpillar dealers in the United States––one in each state. From this information, you can surmise that Caterpillar uses _____ distribution.

a.

selective

b.

premium

c.

intensive

d.

exclusive

e.

inclusive

ANS: D


Exclusive distribution, the most restrictive form of distribution, entails establishing one or a few dealers within a given geographic area. Because buyers need to be willing to search or travel to acquire the product, this form of distribution is limited to consumer specialty goods, a few shopping goods, and major industrial equipment.

PTS: 1 REF: 211 OBJ: 13-4 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
63. Which of the following types of distribution channel relationships is considered to be temporary?

a.

Arm’s length

b.

Functional

c.

Cooperative

d.

Hierarchical

e.

Integrated

ANS: A


These types of relationships are often referred to as “arm’s-length” relationships due to the companies’ unwillingness or lack of ability to develop a closer type of relationship.

PTS: 1 REF: 211 OBJ: 13-5 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
64. This summer, college student Pat is planning on selling kites at Panama City Beach. He has found some suppliers and has preordered all of the kites he thinks he can sell this summer. What type of a distribution channel relationship does Pat have with his suppliers?

a.

Arm’s length

b.

Functional

c.

Cooperative

d.

Hierarchical

e.

Integrated

ANS: A


The arm’s-length relationship is considered to be temporary.

PTS: 1 REF: 211 OBJ: 13-5 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
65. With the _____ channel relationship, both parties retain their independence and pursue their own interests while attempting to benefit from the goods or services provided by the other.

a.

arm’s-length

b.

functional

c.

cooperative

d.

hierarchical

e.

integrated

ANS: A


These types of relationships are often referred to as “arm’s-length” relationships due to the companies’ unwillingness or lack of ability to develop a closer type of relationship.

PTS: 1 REF: 211 OBJ: 13-5 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
66. _____ distribution channel relationships are situations where one company, or several companies acting as one, performs all channel functions.

a.

Arm’s-length

b.

Functional

c.

Cooperative

d.

Hierarchical

e.

Integrated

ANS: E


Integrated relationships are tightly connected, with linked processes across and between firm boundaries and high levels of trust and interfirm commitment.

PTS: 1 REF: 211 OBJ: 13-5 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
67. One of the earliest, largest, and most famous examples of vertical integration was the Carnegie Steel Company. The company controlled not only the mills where the steel was manufactured but also the mines where the iron ore was extracted, the coal mines that supplied the coal, the ships that transported the iron ore, and the railroads that transported the coal to the factory. Carnegie Steel had a(n) _____ channel relationship.

a.

arm’s-length

b.

functional

c.

cooperative

d.

hierarchical

e.

integrated

ANS: E


Integrated distribution channel relationships are situations where one company, or several companies acting as one, performs all channel functions.

PTS: 1 REF: 211 OBJ: 13-5 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
68. _____ channel relationships include nonequity agreements such as franchising and licensing as well as equity-based joint ventures and strategic alliances.

a.

Arm’s-length

b.

Functional

c.

Cooperative

d.

Hierarchical

e.

Integrated

ANS: C


Cooperative relationships are between companies that take the form of informal partnership with moderate levels of trust and information sharing as needed to further each company’s goals.

PTS: 1 REF: 211 OBJ: 13-5 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
69. Which channel relationship is less ambiguous than an arm’s-length relationship but without the longer-term and/or capital investment required to achieve full integration?

a.

Negotiated

b.

Functional

c.

Cooperative

d.

Hierarchical

e.

Intermediate

ANS: C


Cooperative relationships are between companies that take the form of informal partnership with moderate levels of trust and information sharing as needed to further each company’s goals.

PTS: 1 REF: 211 OBJ: 13-5 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
70. In 1935, Howard Johnson teamed up with Reginald Sprague to establish the first modern restaurant franchise. Their idea was to let independent operators use the same name, food, supplies, logo and even building design in exchange for a fee. In terms of the type of channel relationships established, this nonequity agreement would require a _____ relationship.

a.

negotiated

b.

functional

c.

cooperative

d.

hierarchical

e.

segregated

ANS: C


Cooperative channel relationships include nonequity agreements such as franchising and licensing as well as equity-based joint ventures and strategic alliances.

PTS: 1 REF: 211 OBJ: 13-5 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
71. Some countries, such as the Peoples Republic of China and to some extent India, require foreign companies to form joint ventures with domestic firms in order to enter a market. This requirement often forces technology transfers and managerial control to the domestic partner. These types of equity agreements also require the establishment of a(n) _____ channel relationship.

a.

arm’s-length

b.

functional

c.

cooperative

d.

hierarchical

e.

integrated

ANS: C


Cooperative channel relationships include nonequity agreements such as franchising and licensing as well as equity-based joint ventures and strategic alliances.

PTS: 1 REF: 211 OBJ: 13-5 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
72. The capacity of a particular marketing channel member to control or influence the behavior of other channel members is known as:

a.

channel power

b.

channel conflict

c.

channel control

d.

channel dominance

e.

channel inversion

ANS: A


Channel power is a channel members’ ability to control or influence the behavior of other channel members.

PTS: 1 REF: 212 OBJ: 13-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
73. Wal-Mart is the largest retailer in the world, and many consumer packaged-goods manufacturers like Kraft have offices in Bentonville, Arkansas, where Wal-Mart is headquartered. Wal-Mart has the ability to influence manufacturers to lower their prices so that it can deliver on its low-price guarantee to consumers. Wal-Mart possesses:

a.

channel influence

b.

channel supremacy

c.

channel power

d.

channel exclusivity

e.

channel clout

ANS: C


Channel power is the capacity of a particular marketing channel member to control or influence the behavior of other channel members.

PTS: 1 REF: 212 OBJ: 13-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
74. A situation that occurs when one marketing channel member intentionally affects another member’s behavior is called:

a.

channel power

b.

channel control

c.

channel conflict

d.

channel dominance

e.

channel inversion

ANS: B


Channel control is when one channel member actually affects another.

PTS: 1 REF: 212 OBJ: 13-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
75. A channel leader is also called a(n):

a.

intermediary leader

b.

channel captain

c.

channel facilitator

d.

distribution supervisor

e.

channel gatekeeper

ANS: B


The channel captain is a member of a marketing channel that exercises authority and power over the activities of other channel members.

PTS: 1 REF: 212 OBJ: 13-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
76. DeBeers sells most of the diamonds it produces to industry. The company controls over 90 percent of the market and has great power over its distributors. In its marketing channel, DeBeers would be considered a:

a.

channel authority

b.

channel member

c.

channel leader

d.

channel gatekeeper

e.

power broker

ANS: C


The channel captain is a member of a marketing channel that exercises authority and power over the activities of other channel members. DeBeers has control over delivery, inventory, and so on.

PTS: 1 REF: 212 OBJ: 13-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
77. Johns Manville is the only manufacturer to offer a complete line of formaldehyde-free fiberglass building insulation, which offers superior energy efficiency in hard-to-reach cathedral ceilings and flat roof cavities; plus it is an excellent sound control for interior floors. As the only manufacturer and patent holder of this revolutionary insulation, Johns Manville has great power over its dealers. It is an example of a:

a.

channel authority

b.

channel regulator

c.

channel captain

d.

channel gatekeeper

e.

power broker

ANS: C


A channel captain or channel leader is a member of the marketing channel that exercises authority and power over the activities of other members in the channel.

PTS: 1 REF: 212 OBJ: 13-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
78. Channel conflict:

a.

always has an adverse effect on the members of the channel

b.

is not caused by ideological differences, because such differences would prevent the members from ever operating as a channel

c.

is often caused by an inability of some channel members to keep up with the changing times

d.

can appear as either internal or external

e.

does not occur when multiple distribution channels are used

ANS: C


In a broad context, channel conflict can be good for a channel. It is sometimes caused by ideological differences. It appears as vertical or horizontal.

PTS: 1 REF: 212 OBJ: 13-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Analysis
79. Almost a million fans are willing to buy subscriptions to watch Major League Baseball (MLB) games online at MLB.com. That business is worth more than $100 million to MLB. But this online broadcast takes those fans away from the broadcasters that pay MLB hundreds of millions of dollars for the right to carry the games. Which of the following is likely to occur between MLB and broadcast television?

a.

Horizontal market share

b.

Lateral channel takeover

c.

Niche market conflict

d.

Channel conflict

e.

Market share conflict

ANS: D


Channel members may have conflicting goals resulting in channel conflict.

PTS: 1 REF: 212 OBJ: 13-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
80. Honda uses just-in-time manufacturing to build its Odyssey minivans. Five companies that make component parts for the Honda Odyssey relocated to Alabama and states bordering Alabama when Honda announced plans to build a new Odyssey manufacturing plant in Alabama. This relocation in order to provide efficient delivery of goods indicates that Honda is a:

a.

channel captain

b.

horizontal integrator

c.

distribution champion

d.

distribution ombudsman

e.

demand maverick

ANS: A


A channel captain exercises authority and power over the other channel members.

PTS: 1 REF: 212 OBJ: 13-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
81. Channel conflict that occurs among channel members on the same level is known as:

a.

primary conflict

b.

organic conflict

c.

internal conflict

d.

horizontal conflict

e.

vertical conflict

ANS: D


This is the definition of horizontal conflict, which occurs at the same level of distribution such as two or more different wholesalers or two or more different retailers.

PTS: 1 REF: 212 OBJ: 13-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
82. Horizontal channel conflict occurs most often when manufacturers practice:

a.

dual or multiple distribution

b.

trade loading

c.

promotional pricing

d.

direct distribution

e.

channel distribution

ANS: A


Horizontal conflict occurs when more than one channel is used to handle the same brand.

PTS: 1 REF: 212 OBJ: 13-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
83. Goodyear tire dealers were hurt financially when Goodyear made the decision to distribute its tires through retailers such as Sears and Walmart in addition to the exclusive dealerships it had established. The conflict that occurred at the retail level is an example of:

a.

horizontal conflict

b.

trade loading

c.

value-added pricing

d.

exclusive distribution

e.

channel partnering

ANS: A


Horizontal conflict occurs among channel members at the same level––retail in this example.

PTS: 1 REF: 212 OBJ: 13-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
84. Channel conflict that occurs between different levels in a marketing channel is referred to as:

a.

horizontal conflict

b.

primary conflict

c.

vertical conflict

d.

secondary conflict

e.

parallel conflict

ANS: C


This describes vertical conflict, which typically occurs between the manufacturer and wholesaler or between the manufacturer and retailer.

PTS: 1 REF: 212-213 OBJ: 13-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
85. Polo brand apparel can be purchased through fine department stores nationwide. However, Polo apparel can also be purchased through Polo stores, which creates the potential for _____ conflict in the channel of distribution.

a.

primary

b.

secondary

c.

horizontal

d.

vertical

e.

parallel

ANS: D


Vertical conflict is a channel conflict that occurs between different levels of a marketing channel.

PTS: 1 REF: 212-213 OBJ: 13-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
86. _____ is the joint effort of all channel members to create a channel that serves customers and creates a competitive advantage.

a.

Selective partnering

b.

Direct distribution

c.

Channel partnering

d.

Intensive integration

e.

Closed channel distribution

ANS: C


This is the definition of channel partnering, which is also called channel cooperation.

PTS: 1 REF: 213 OBJ: 13-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
87. _____ occurs when products are distributed through unauthorized marketing channels.

a.

Black marketing

b.

Countertrading

c.

Channel malfeasance

d.

Gray marketing

e.

Reverse channeling

ANS: D


These channels include unauthorized channels intermediaries.

PTS: 1 REF: 213-214 OBJ: 13-7 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Knowledge
88. Many large champagne sellers do their own importing and desire to maintain independent price points in different markets. Thus, a bottle of champagne might cost $45 in the United States, while the same bottle might be only 20 euros (about $30) in France. It is often profitable to buy the wine in Europe, typically from an unauthorized distributor, and resell it in the United States. U.S. wine merchants who do so would be engaging in:

a.

black marketing

b.

channel malfeasance

c.

countertrading

d.

reverse channeling

e.

gray marketing

ANS: E


Gray marketing occurs when products are distributed through unauthorized marketing channels.

PTS: 1 REF: 213-214 OBJ: 13-7 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
89. It seems counterintuitive, but Jon Jordan, CEO of Southern Audio Services (SAS) in Baton Rouge, wants to curb the number of dealers who are selling his car speakers. Jordan understands that he can’t handpick all his vendors, but he never expected the rise in unauthorized dealers that came with the e-commerce boom. When Jordan decided to look for the SAS name on eBay, he came up thousands of sellers. These eBay sellers are engaging in:

a.

black marketing

b.

channel malfeasance

c.

countertrading

d.

reverse channeling

e.

gray marketing

ANS: E


Gray marketing occurs when products are distributed through unauthorized marketing channels.

PTS: 1 REF: 213-214 OBJ: 13-7 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Application
90. One thing that sets service distribution apart from traditional manufacturing distribution is that in a service environment:

a.

production and consumption are simultaneous

b.

production setbacks can be remedied by using safety stock

c.

faster modes of transportation can offset service production problems

d.

service distribution benefits are more tangible

e.

service distribution has a narrower focus

ANS: A


In a service environment, services are produced and consumed at the same time.

PTS: 1 REF: 214 OBJ: 13-8 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Analysis
91. Which of the following businesses is most likely to have a problem with distribution because production and consumption of the product occurs simultaneously?

a.

A company that manufacturers bicycles

b.

A hair salon

c.

A retailer that sells mattresses

d.

A soft drink bottler

e.

A wholesaler that specializes in athletic equipment

ANS: B


A hair salon is the only service listed.

PTS: 1 REF: 214 OBJ: 13-8 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Analysis
92. You are responsible for physical distribution of your company’s service and should focus on:

a.

ensuring the intangibility of the service so that physical distribution becomes a less important factor

b.

minimizing wait times, managing service capacity, and providing delivery through distribution channels

c.

making sure production and consumption are simultaneous

d.

setting quality standards, choosing faster transportation modes, and using safety stock

e.

customer-oriented order processing and inventory control

ANS: B


Service industries are customer oriented and must manage intangible services by minimizing wait times, managing service capacity, and providing delivery through distribution channels.

PTS: 1 REF: 214 OBJ: 13-8 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Analysis
93. Which of the following is a main area of concern for service distribution?

a.

Minimizing wait times

b.

Maximizing sales

c.

Creating a one-to-one relationship with customers

d.

Providing easy to use Internet help

e.

Reducing risk

ANS: A


The other two areas are managing service capacity, and providing delivery through distribution channels.

PTS: 1 REF: 214 OBJ: 13-8 TOP: AACSB Reflective Thinking

KEY: CB&E Model Distribution MSC: BLOOMS Comprehension
Supply Chain Management (Ch. 14 MKTG 300 Text)


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