Chapter 10 Quiz BU270 PRINCIPLES OF MARKETING
Chapter 10—Marketing Channels and Supply Chain Management
NAME:______SCORE:______DATE
TRUE/FALSE
1.A marketing channel is a business structure composed of interdependent organizations that reach from the point of product origin to the consumer. Its purpose is to move products to their final consumption destination.
REF:p. 312
2.As products move through the marketing channel, channel members provide specialization and division of labor, overcome discrepancies, and provide contact efficiency.
REF:p. 312
3.Theo stopped by the convenience store to buy a loaf of bread. He is glad that he can buy one loaf at a time, instead of having to buy the thousands of loafs of bread the manufacturer produces every day. For Theo, the convenience store overcomes a discrepancy of quantity.
REF:p. 313
4.Residents of Sobarro, New Mexico live in an isolated area of the state. Residents must travel two hours to receive medical treatment. Luckily, a physician has just opened a new practice in Sobarro. In this case, the physician has overcome service discrepancies by opening an office close to consumers.
REF:p. 313
5.Consider a scenario in which there are four manufacturers, no intermediaries, and three consumers. Twelve transactions would be required for each consumer to receive products from each manufacturer. The introduction of one intermediary reduces the required number of transactions to four and demonstrates the idea of contact efficiency,
REF:p. 313
6.A merchant wholesaler is an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers.
REF:p. 315
7.Harris Peng represents a manufacturer of prefabricated housing and gets paid a commission for finding buyers and linking them up with the manufacturer. Peng is a merchant wholesaler.
REF:p. 315
8.The three basic functions a channel intermediary provides are transactional (including physical distribution and sorting), logistical (including research and financing), and facilitating (including contacting, promoting, negotiating, and risk taking).
REF:p. 316
.
9.Logistics is a subset of physical distribution and refers to the transporting of raw materials and/or finished goods.
REF:p. 316
10.Grace Yoder makes jams and jellies, which she sells at craft festivals to end users. Yoder does not the use channel intermediaries; she uses a direct channel.
REF:p. 318
11.The direct channel is used more often in consumer markets than in business-to-business markets.
REF:p. 318
12.LoneStar Bar & Grill is a small chain of restaurants that feature marinated steaks. The marinade is so popular that LoneStar sells it at its restaurants and also sells it at Kroger supermarkets. This is an example of intensive distribution.
REF:p. 320
13.Supply chain management is completely producer-driven.
REF:p. 322
14.Companies that use supply chain management techniques typically also use a push promotional strategy.
REF:p. 322
15.The use of supply chain management results in reduced inventory management costs.
REF:p. 323
16.Metallurgical Designs makes gold and silver charms for necklaces and bracelets. It markets its charms to a few retailers in any one region and promotes them intensively to those retailers. This is an example of intensive distribution.
REF:p. 326
17.Shopping goods are usually distributed selectively. Consumers are willing to look around for them but may not be willing to search or travel extensively to acquire the product.
REF:p. 326
18.An international consumer products manufacturer requires all of its suppliers to provide the lowest possible cost and to adhere to a just-in-time inventory system. Wholesalers and manufacturers generally yield to the authority of this large manufacturer. This consumer products manufacturer exercises channel power.
REF:p. 328
19.Horizontal conflict occurs among channel members on the same level, such as two or more different wholesalers or two or more different retailers that handle the same manufacturer's brands.
REF:p. 328
20.Master Technology produces neon insulator sign components on an assembly line, and suppliers deliver the needed parts in four small shipments each day. Master Technology has noticed a dramatic decrease in carrying costs using this method, but a sharp increase in delivery costs since the company must pay more for the added delivery convenience. Master Technology uses just-in-time (JIT) manufacturing.
REF:p. 332
21.Despite its name, the goal of a materials-handling system is to handle products as infrequently as possible.
REF:p. 334
22.Another name for outsourcing is downsizing.
REF:p. 337
23.Contract logistics allows companies to cut inventories, locate stock at fewer plants and distribution centers, and still provide the same service level or even better.
REF:pp. 337-338
24.Unlike marketers of physical products, marketers of services do not have to address the question of logistics since services do not require a distribution strategy.
REF:p. 338
25.One of the ways that service firms improve their distribution efficiency is by managing service capacity.
REF:p. 339
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