Chapter 13 Flashcards
(165 cards)
1
Q
What does supply chain management entail?
a) Solely manufacturing products
b) Coordinating activities within a unified system involving various entities
c) Distributing products to customers
d) Marketing products to retailers
A
B
2
Q
Who are the entities involved in supply chain management?
a) Only manufacturers
b) Only distributors
c) Manufacturers, suppliers, distributors, and retailers
d) Only customers
A
C
3
Q
What processes does supply chain management encompass?
a) Only manufacturing and distribution
b) Only sourcing and logistics
c) Planning, sourcing, manufacturing, distribution, and logistics
d) Only marketing and sales
A
C
4
Q
The connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function is known as the:
a. channel of distribution.
b. intermediary link.
c. physical distribution integration.
d. reseller network.
e. supply chain
A
E
5
Q
Why is coordination essential in supply chain management?
a) To increase competition among entities
b) To decrease customer satisfaction
c) To ensure efficient delivery of products or services
d) To minimize collaboration between manufacturers and retailers
A
C
6
Q
Which of the following is not an entity involved in supply chain management?
a) Manufacturers
b) Suppliers
c) Investors
d) Retailers
A
C
7
Q
Why is efficient coordination of supply activities important in supply chain management?
a) To increase costs for customers
b) To decrease customer satisfaction
c) To create value for the customer
d) To minimize waste in production processes
A
C
8
Q
What does supply chain management ensure regarding products or services?
a) Getting to the right customers
b) Getting to the wrong place at the wrong time
c) Getting to the right place at the wrong time
d) Getting to the right place at the right time
A
D
9
Q
What does on-time, reliable delivery contribute to?
a) Customer dissatisfaction
b) Customer loyalty and satisfaction
c) Increased waste in production
d) Higher costs for customers
A
B
10
Q
How does efficient supply chain management contribute to lower costs?
a) By increasing waste in production
b) By decreasing customer satisfaction
c) By ensuring on-time, reliable delivery and minimizing waste
d) By delaying delivery to customers
A
C
11
Q
What entities does Supply Chain Integration connect?
a) Only internal departments
b) Only customers
c) Only suppliers
d) External partners such as suppliers, manufacturers, distributors, and retailers
A
D
12
Q
When does Supply Chain Integration occur?
a) When sales overpromise and production forgets to mention production issues
b) When multiple firms coordinate their activities seamlessly
c) When internal departments communicate effectively
d) When external partners experience delays in delivery
A
B
13
Q
What is the primary goal of Demand Supply Integration (DSI)?
a) Reducing production efficiency
b) Increasing customer satisfaction
c) Overpromising to customers
d) Helping large organizations communicate effectively internally
A
D
14
Q
What challenge do large organizations face that Demand Supply Integration helps address?
a) External partner coordination
b) Customer communication
c) Internal department communication
d) Supplier management
A
C
15
Q
What does relationship integration in supply chain management involve?
a) Coordinating information technology systems for planning
b) Collaborative reliance between partner firms
c) Seamless coordination in delivering materials and services
d) Providing distinctive value-added offerings to customers
A
B
16
Q
What aspect does technology and planning integration focus on?
a) Coordinating information technology systems for planning
b) Collaborative reliance between partner firms
c) Seamless coordination in delivering materials and services
d) Providing distinctive value-added offerings to customers
A
A
17
Q
What is the goal of material and service supplier integration?
a) Coordinating information technology systems for planning
b) Collaborative reliance between partner firms
c) Seamless coordination in delivering materials and services
d) Providing distinctive value-added offerings to customers
A
C
18
Q
What does customer integration aim to achieve?
a) Coordinating information technology systems for planning
b) Collaborative reliance between partner firms
c) Seamless coordination in delivering materials and services
d) Providing distinctive value-added offerings to customers
A
D
19
Q
What is the key focus of businesses when utilizing Customer Relationship Management (CRM)?
a) Increasing costs for customers
b) Collecting irrelevant data
c) Understanding customer needs, collecting relevant information, and leveraging data
d) Avoiding data analysis
A
C
20
Q
Which departments are involved in utilizing from using Customer Relationship Management (CRM)?
a) Human Resources and Finance
b) Manufacturing and Production
c) Sales, Marketing, Logistics, and Customer Service
d) Research and Development
A
C
21
Q
What do businesses focus on when utilizing Customer Relationship Management (CRM)?
a) Minimizing customer interactions
b) Collecting irrelevant information
c) Understanding customer needs and collecting relevant information
d) Avoiding data analysis
A
C
22
Q
What is the primary objective of Customer Service Management?
a) Increasing production efficiency
b) Addressing customer complaints, comments, and concerns
c) Streamlining manufacturing processes
d) Maximizing sales revenue
A
B
23
Q
How does Customer Service Management handle customer interactions?
a) By ignoring customer complaints
b) By providing a multi-company, unified response system
c) By minimizing communication with customers
d) By avoiding customer concerns
A
B
24
Q
What is the primary objective of Demand Management?
a) Maximizing production efficiency
b) Reducing customer satisfaction
c) Aligning supply and demand throughout the supply chain
d) Ignoring customer requirements
A
C
25
How does Demand Management seek to align supply and demand?
a) By increasing production without considering customer requirements
b) By creating customer-focused plans of action prior to actual customer purchasing behavior
c) By ignoring customer forecasts
d) By avoiding supply chain planning
B
26
What does Demand Management focus on in terms of customer requirements?
a) Minimizing production costs
b) Forecasting and managing the demand for products and services
c) Ignoring customer needs
d) Maximizing customer complaints
B
27
What is one of the benefits of Demand Management?
a) Increasing production costs
b) Maximizing customer dissatisfaction
c) Reducing costs
d) Avoiding demand forecasting
C
28
What does order fulfillment aim to reduce?
a) Time between order and fulfillment
b) Customer feedback
c) Inventory costs
d) Product quality
A
29
What is the primary objective of order fulfillment?
a) Maximizing inventory costs
b) Minimizing customer satisfaction
c) Efficiently generating, filling, and delivering customer orders
d) Increasing the time between order and fulfillment
C
30
What activities are involved in order fulfillment?
a) Generating and filling customer complaints
b) Generating, filling, and delivering customer orders efficiently
c) Ignoring customer orders
d) Delaying delivery of customer orders
B
31
How does order fulfillment contribute to efficient operations?
a) By increasing the time between order and fulfillment
b) By minimizing inventory costs
c) By maximizing customer complaints
d) By ignoring customer orders
B
32
What is the focus of order fulfillment regarding inventory?
a) Maximizing inventory costs
b) Minimizing customer satisfaction
c) Efficiently managing inventory levels
d) Ignoring inventory management
C
33
What is the primary objective of Manufacturing Flow Management?
a) Maximizing manufacturing costs
b) Reducing manufacturing flexibility
c) Ensuring firms have necessary resources for manufacturing
d) Minimizing manufacturing variety
C
34
What is the focus of Manufacturing Flow Management regarding manufacturing costs?
a) Maximizing manufacturing costs
b) Reducing manufacturing costs
c) Ignoring manufacturing costs
d) Increasing manufacturing costs
B
35
What is the primary objective of Supplier Relationship Management (SRM) process?
a) Maximizing production costs
b) Developing and maintaining relationships with key suppliers
c) Ignoring supplier integration within the supply chain
d) Minimizing customer relationships
B
36
How is Supplier Relationship Management similar to Customer Relationship Management (CRM)?
a) By focusing on minimizing customer relationships
b) By maximizing conflicts with customers
c) By developing and maintaining relationships with key suppliers
d) By ignoring supplier integration within the supply chain
C
37
What does Product Development and Commercialization involve?
a) Limiting supply chain partners' involvement
b) Engaging multiple supply chain partners in developing and launching new products
c) Avoiding product development and launch
d) Minimizing collaboration with supply chain partners
B
38
Why is involving multiple supply chain partners important in Product Development and Commercialization?
a) To limit collaboration
b) To decrease product variety
c) To gain a competitive edge in the marketplace
d) To ignore marketplace trends
C
39
What is the primary focus of Product Development and Commercialization?
a) Maximizing production inefficiencies
b) Minimizing customer satisfaction
c) Figuring out how to produce new products and efficiently bring them to customers
d) Ignoring supply chain partners
C
40
What is the primary objective of Returns Management?
a) Maximizing returns-related costs
b) Minimizing the value of returned assets
c) Managing volumes of returned product efficiently
d) Avoiding returns from customers
C
41
Why is managing volumes of returned product efficiently important in Returns Management?
a) To increase returns-related costs
b) To minimize the value of returned assets
c) To minimize returns-related costs and maximize the value of returned assets
d) To ignore returns from customers
C
42
What are the three primary functions of business logistics?
a) Plan, Execute, Control
b) Source, Make, Deliver
c) Analyze, Implement, Assess
d) Market, Sell, Distribute
B
43
What is the primary goal of sourcing and procurement in the "Source" function of business logistics?
a) Maximizing material and supply costs
b) Reducing material and supply costs through strategic supplier management
c) Ignoring supplier management
d) Minimizing inventory control
B
44
What is the primary purpose of inventory control in the "Source" function of business logistics?
a) Ordering excessive supplies
b) Ordering insufficient supplies to miss sales
c) Ordering the right amount of supplies to manage costs and sales effectively
d) Ignoring material requirements planning (MRP)
C
45
How can automatic replenishment programs assist in inventory control?
a) By increasing manual ordering processes
b) By reducing real-time inventory monitoring
c) By automating ordering based on bar code scanning at the retailer level
d) By ignoring inventory levels
C
46
What happens if there is too much inventory ordered in inventory control?
a) Decrease in costs
b) Increase in costs
c) Increase in sales
d) Increase in supplier management
B
47
48
What is the risk of ordering too little inventory in inventory control?
a) Decrease in costs
b) Increase in sales
c) Missed sales opportunities
d) Efficient supplier management
C
49
What is the primary goal of order processing in the "Make" function of business logistics?
a) Delaying customer orders
b) Accurately and timely fulfilling customer orders
c) Avoiding Electronic Data Interchange (EDI) technology
d) Ignoring customer orders
B
50
How is order processing facilitated in the "Make" function of business logistics?
a) By manually processing customer orders
b) By using Electronic Data Interchange (EDI) technology
c) By avoiding the flow of information and goods to and from buyers
d) By delaying order fulfillment
B
51
What technology is commonly used for monitoring the flow of information and goods in the "Make" function?
a) Electronic Data Interchange (EDI)
b) Manual data entry
c) Fax machines
d) Telephones
A
52
What is the trend in production systems mentioned in the "Make" function?
a) Shifting towards build-to-order or mass customization models
b) Staying stagnant in traditional build-to-stock systems
c) Avoiding any changes in production systems
d) Ignoring wastage reduction and responsiveness improvement
A
53
What do postponement strategies involve in the "Make" function?
a) Delaying production indefinitely
b) Partial production and customization near customers
c) Avoiding production and customization altogether
d) Ignoring customer demand
B
54
What is the objective of shifting towards build-to-order or mass customization models in production?
a) Increasing wastage
b) Reducing responsiveness
c) Reducing wastage and improving responsiveness
d) Ignoring customer preferences
C
55
What is the role of Electronic Data Interchange (EDI) technology in order processing?
a) Avoiding order accuracy
b) Delaying order fulfillment
c) Facilitating accurate and timely fulfillment of customer orders
d) Minimizing customer interactions
C
56
What is the primary purpose of warehousing and materials handling in the "Deliver" function?
a) Increasing inconsistency between supply and demand
b) Balancing out the inconsistency between supply and demand
c) Ignoring supply and demand
d) Delaying the delivery process
B
57
How are items tracked in warehousing and materials handling?
a) Manual recording
b) Using RFID and scanners
c) Ignoring tracking altogether
d) Using traditional methods like pen and paper
B
58
What is the benefit of using RFID and scanners in warehousing and materials handling?
a) Increased automation and real-time tracking
b) Decreased efficiency
c) Increased delays in delivery
d) Ignoring inventory levels
A
59
What is the role of transportation in the "Deliver" function?
a) Managing inventory levels
b) Tracking items in warehouses
c) Managing transportation options like railroads and airplanes
d) Ignoring transportation costs
C
60
What factors should be considered when managing transportation options?
a) Quantity of items
b) Transit time, reliability, and capability
c) Ignoring transit time
d) Cost of transportation only
B
61
What is a significant advantage of air transport?
a) Low cost
b) Slow transit time
c) Fastest transit time compared to other modes
d) Low reliability
C
62
What role do information systems play in the "Deliver" function?
a) Limited role
b) Tracking items in warehouses only
c) Ordering, tracking, and analyzing are done with sophisticated computer systems
d) Ignoring technology altogether
C
63
Why are information systems vital to the smooth operation of business logistics?
a) They increase inefficiencies
b) They decrease automation
c) They provide good data for making decisions
d) They ignore the delivery process
C
64
What does outsourcing logistics entail?
a) Handling logistics internally
b) Letting other companies handle logistics
c) Ignoring logistics complexities
d) Avoiding logistical challenges
B
65
What does offshoring entail?
a) Outsourcing a business function to a company outside of your country
b) Keeping all business functions within the country
c) Ignoring international business opportunities
d) Avoiding logistical challenges
A
66
What is nearshoring?
a) Outsourcing a business function to a company outside of your country
b) Offshoring to a geographically close country
c) Ignoring geographical proximity
d) Avoiding international business opportunities
B
67
When does a company opt for outsourcing logistics?
a) When it becomes less complex
b) When it wants to handle logistics internally
c) When logistics become more complex
d) When it wants to avoid logistical challenges
C
68
What function does Fourth Party Logistic (4PL) perform?
a) Handling logistics internally
b) Outsourcing an entire logistical function
c) Offshoring logistics
d) Nearshoring logistics
AB
69
What are the primary functions outsourced through Third Party Logistics (3PL)?
a) Transportation, warehousing, light/postponed manufacturing
b) Offshoring and nearshoring
c) Fourth Party Logistic (4PL)
d) Handling logistics internally
A
70
What does supply chain risk refer to?
a) Planned disruptions in the supply chain
b) Foreseen shocks such as natural disasters
c) Unforeseen shocks such as pandemics
d) Reactive steps to minimize downtime
C
71
How is supply chain security defined?
a) Taking proactive steps to minimize the impact of shocks
b) Reactive steps to minimize downtime
c) Foreseeing potential disruptions
d) Planned disruptions in the supply chain
A
72
What does supply chain resilience entail?
a) Taking proactive steps to minimize the impact of shocks
b) Reactive steps to minimize downtime
c) Foreseeing potential disruptions
d) Planned disruptions in the supply chain
B
73
What distinguishes supply chain security from resilience?
a) Security focuses on proactive steps, while resilience focuses on reactive steps
b) Security focuses on reactive steps, while resilience focuses on proactive steps
c) Security and resilience are synonymous
d) Security and resilience are unrelated concepts
A
74
What does electronic distribution primarily involve?
a) Distribution of physical goods through traditional retail channels
b) Distribution of digital goods and services through the internet
c) Distribution of physical goods through online platforms
d) Distribution of goods using drones
B
75
Which of the following is an example of electronic distribution?
a) Traditional brick-and-mortar stores
b) Amazon's physical bookstores
c) Netflix streaming service
d) Walmart's online store
C
76
Which of the following is NOT an example of digital goods?
a) TurboTax software
b) Ebooks
c) Physical books
d) Nintendo games downloaded online
C
77
What technological advancement could potentially expand electronic distribution to physical goods?
a) Introduction of virtual reality
b) Adoption of augmented reality
c) Advancement of 3D printing technology
d) Implementation of blockchain technology
C
78
What types of options are considered in sustainable supply chain management?
a) Environmentally harmful options
b) Traditional options
c) Greener options for products, materials, packaging, and transportation
d) Options that maximize profits without considering environmental impact
c
79
What does sustainable supply chain management involve?
a) Ignoring environmental impact
b) Maximizing resource consumption
c) Incorporating environmentally sustainable thinking into all phases of supply chain management
d) Avoiding greener options
C
80
What is globalization primarily characterized by?
a) Isolationism and protectionism
b) Connectivity and competition
c) Limited international trade
d) Reduced competition between countries
B
81
What makes international business operations complicated for companies?
a) Uniform rules across countries
b) Varied rules about importing goods and tariffs
c) Lack of competition
d) Simplified regulations
B
82
Which organization helps create common rules for international trade?
a) World Trade Organization (WTO)
b) International Monetary Fund (IMF)
c) World Bank
d) United Nations (UN)
A
83
What aims to solve the challenges of moving goods across borders?
a) Supply chain management
b) International trade agreements
c) Import quotas
d) Protectionist policies
A
84
What strategic considerations must companies think about in globalization?
a) Isolationism
b) Tariff rates
c) Sourcing, production, and market attractiveness
d) Limited international trade
C
85
What terms describe the practice of moving business functions to other countries?
a) Exporting and importing
b) Domestic sourcing
c) Offshoring and nearshoring
d) Tariff imposition
C
86
A marketing channel is a business structure composed of interdependent organizations that reach
from the point of product origin to the final consumer.
T
87
As products move through the marketing channel, channel members provide specialization and
division of labor, overcome discrepancies, and provide contact efficiency.
T
88
A merchant wholesaler is an institution that buys goods from manufacturers and resells them to
businesses, government agencies, and other wholesalers or retailers
T
89
Carl represents a manufacturer of floor coverings and gets paid a commission for finding buyers
and linking them up with the manufacturer. Carl is an example of a merchant wholesaler
F. Agent and Broker
90
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
A
91
Which of the following intermediaries sell mainly to consumers?
a. retailers
b. merchant wholesalers
c. agents
d. brokers
e. specialists
A
92
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
A
93
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
B
94
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
B
95
_____ are wholesaling 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
C
96
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
E
97
What are channels in the context of product distribution?
a) Physical pathways for customers to reach manufacturers
b) Pathways for products to travel from manufacturers to customers
c) Virtual platforms for online sales
d) Shipping routes for international trade
B
98
What do channels members typically do?
a) Produce goods
b) Manufacture products
c) Sit between the producer and the end customer
d) Directly sell products to customers
C
99
Which of the following is NOT a type of channel member?
a) Merchants
b) Manufacturers
c) Distributors
d) Facilitators
B
100
How do merchants make money?
a) By producing goods
b) By charging commission fees
c) By taking possession of products and marking up the price
d) By facilitating buying and selling processes
C
101
What is the role of wholesalers and retailers in the distribution channel?
a) They manufacture products
b) They facilitate buying and selling processes
c) Wholesalers sell products to retailers, who then sell them to the final customers
d) They charge commission fees
C
102
What is the primary function of distributors in the distribution channel?
a) Directly selling products to consumers
b) Selling products to wholesalers
c) Selling products to retailers
d) Distributing products to retailers or directly to consumers
D
103
What role do agents and brokers play in the distribution channel?
a) They take possession of goods and sell them directly to consumers
b) They represent one party or multiple sellers, facilitating buying and selling processes
c) They manufacture products
d) They charge commission fees for their services
D
104
What is the primary role of facilitators in the buying and selling process?
a) Manufacturing goods
b) Representing one party
c) Distributing products
d) Facilitating buying and selling and charging commission
D
105
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
B
106
Redbox offers DVDs from several production studios, such as Disney, Sony,
and Paramount. Consumers just have to rent from Redbox instead of obtaining the DVD from the
various production studios if they want a children’s movie from Disney and an action movie from
Paramount. Thus, one kiosk provides _____ for both consumers and the production studios.
a. contact efficiency
b. integration
c. synergy
d. distribution efficiency
e. distribution intensity
A
107
Why do manufacturers often choose not to sell directly to customers?
a) They lack the expertise in manufacturing
b) They prefer direct contact with customers
c) They may have limited capital and distribution may not be their core strength
d) They are focused on providing contact efficiency
C
108
What is one of the advantages of using channels for manufacturers?
a) Direct contact with customers
b) Limited capital investment
c) Reduced number of transactions
d) Expertise in distribution
C
109
How do intermediaries earn money in the distribution process?
a) By manufacturing goods
b) Through fees such as markups or trade margins
c) By charging customers for their services
d) By investing capital in distribution
B
110
What is the primary advantage provided by intermediaries in the distribution process?
a) Manufacturing goods efficiently
b) Providing direct contact with customers
c) Offering contact efficiency by providing everything needed in one place
d) Offering low prices to customers
C
111
Harriet Lowe makes children’s clothing, which she sells at craft festivals to end users. Lowe does
not use channel intermediaries, which means she uses a direct channel.
T
112
The direct channel is used more often in consumer markets than in business-to-business markets.
F
113
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
E
114
The only way 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
E
115
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
D
116
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
D
117
All of the following are typical channel members in marketing channels for consumer products
EXCEPT:
a. retailer
b. agent/broker
c. industrial distributor
d. producer
e. wholesaler
C. Industrial distributors are used for distributing industrial, not consumer products.
118
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
B
119
What does the "length of channels" refer to in distribution channels?
a) The physical length of the distribution route
b) The number of intermediaries between producers and end consumers
c) The distance between producers and retailers
d) The complexity of distribution networks
B
120
Which type of distribution channel involves zero-level intermediaries?
a) Retailer channel
b) Wholesaler channel
c) Direct channel
d) Industrial products channel
C
121
Which of the following is an example of a direct channel?
a) Wal-Mart
b) Home Depot
c) Farmer's markets
d) Mom and Pop shops
C
122
In a retailer channel, who buys directly from the producer?
a) Wholesalers
b) Retailers
c) End consumers
d) Agents
B
123
What type of products tend to have longer distribution channels?
a) Industrial products
b) Consumer products
c) High-end luxury products
d) Niche market products
B
124
Why do retailers and intermediaries maximize "contact efficiency" in consumer products channels?
a) To minimize costs
b) To maximize profits
c) To ensure quality control
d) To increase customer satisfaction
D
125
What distinguishes industrial products channels from consumer products channels?
a) They tend to have more intermediaries
b) They have shorter and more direct distribution routes
c) They involve smaller volume customers
d) They primarily use direct distribution channels
B
126
Which of the following is true regarding the presence of retailers in industrial product channels?
a) Retailers play a significant role in industrial product distribution
b) Industrial product channels typically exclude retailers
c) Retailers are equally important in both industrial and consumer product channels
d) Retailers act as intermediaries between manufacturers and large volume customers
B
127
The primary characteristic of customers in industrial product channels is:
a) Small-scale, individual consumers
b) Mass-market, consumer-oriented businesses
c) Large volume buyers
d) Impulse buyers seeking convenience
C
128
What additional role do distributors often undertake in industrial product channels?
a) Providing marketing expertise to manufacturers
b) Actively promoting products to end consumers
c) Offering various services to enhance value for customers
d) Focusing solely on product transportation without any added services
C
129
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
F. Intensive distribution means the product is available in every outlet the potential customer might
want to buy it, not to just a few retailers
130
_____ 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
C
131
Chewing gum and soft drinks are sold in grocery stores, service stations, convenience stores,
drugstores, discount stores, and motel vending machines. This is a example of a(n) _____
distribution strategy.
a. exclusive
b. reciprocal
c. selective
d. horizontal
e. intensive
E
132
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 inline skates
e. Smith & Wesson firearms
A
133
Production studios distribute DVDs in grocery stores, drug stores, discount
stores, entertainment stores, and vending machines like Redbox. Which level of distribution
intensity does this represent?
a. intensive
b. extensive
c. product-focused
d. market-focused
e. exclusive
A
134
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.
T
135
_____ 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
B
136
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
D
137
Canesta Company has developed a virtual keyboard out of light to be used with cell phones and
personal digital assistants (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
E
138
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
D
139
Exclusive distribution is the most extensive form of market coverage
F. restrictive form
140
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
C
141
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 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
A
142
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
D
143
What is one reason why a manufacturer might grant a dealer exclusive distribution rights?
a) To increase competition among retailers
b) To ensure widespread availability of the product
c) To make the dealer feel special
d) To streamline the distribution process
C
144
At one end of the channel relationship continuum is the "Arm's Length" relationship
T
145
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
A
146
This summer, college student Pat is planning on selling kites at Panama City Beach. He has found
some suppliers and 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
A
147
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
A
148
_____ channel relationships include non-equity 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
C
149
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
C
150
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 non-equity agreement would require a(n) _____ relationship.
a. negotiated
b. functional
c. cooperative
d. hierarchical
e. segregated
C
151
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
C
152
Highly integrated channel relationships are the preferred relationship because there is no large
outlay of assets required to keep the channel members all working toward the same results.
F. Highly integrated channel relationships require significant costs and/or risks.
153
Integrated channel relationships tend to be more flexible than cooperative relationships.
F
154
_____ distribution channel relationships are situations where one company or several companies
acting as one perform all channel functions.
a. Arm's Length
b. Functional
c. Cooperative
d. Hierarchical
e. Integrated
E
155
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 has a(n) _____ channel relationship.
a. Arm's Length
b. functional
c. cooperative
d. hierarchical
e. integrated
E. Integrated distribution channel relationships are situations where one company or several
companies acting as one perform all channel functions.
156
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.
T
157
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
A
158
Wal-Mart is the largest retailer in the world and many consumer package-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
C
159
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
C
160
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
D
161
The source function of business logistics involves____.
a. Information systems
b. The sourcing of customers
c. Production and warehousing
d. Inventory control and sourcing&procurement
e. Transportation
D
162
Which of the following companies most heavily relies on electronic distribution?
a. REI
b. Apple
c. Target
d. Whole Foods
e. Nike
B
163
Supply chain management verifies that each link has adequate resources to perform their duty through
a. Manufacturing flow management
b. Production Planning
c. Demand Management
d. Commercialization
e. Product Management
A
164
____ coordinates and integrates all of the activities performed by channel members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value.
a. Yield management
b. Channel power
c. Materials handling
d. Supply chain management
e. Physical distribution
D
165
