Chapter 10 Marketing Channels and supply chain PDF

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Practice questions for chapter 10. You might get these questions on exams (quizzes/midterm/final)...

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Chapter 10 - Marketing Channels and Supply Chain

Chapter 10 Marketing Channels and Supply Chain

True / False Questions 1. Supply chain activities are generally considered outside of the scope of marketing. FALSE

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries. Topic: 10-01 Nature and Importance of Marketing Channels

2. A marketing channel includes the individuals and firms involved in making products and services available. TRUE

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries. Topic: 10-02 What is a Marketing Channel?

3. Sporty Feet produces a special brand of footwear called FootTrekkers and sells it to wholesalers. The wholesalers are intermediaries. TRUE

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries. Topic: 10-02 What is a Marketing Channel?

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Chapter 10 - Marketing Channels and Supply Chain

4. Shoppers' Galore issues credit cards to consumers so that they can buy now and pay later. This is an example of a transactional function of an intermediary. FALSE

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries. Topic: 10-03 Value Is Created by Intermediaries

5. Form utility involves efforts by intermediaries to help buyers take possession of a product or service, such as providing various ways for payment to be made for a product—by credit card, debit card, cash, or cheque. FALSE

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries. Topic: 10-03 Value Is Created by Intermediaries

6. User manuals are an example of information utility. TRUE

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries. Topic: 10-03 Value Is Created by Intermediaries

7. Proctor & Gamble sells products to consumers utilizing only retailers in the channel. This exemplifies a direct channel. FALSE

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 10-02 Define multichannel marketing and explain its advantages for consumers. Topic: 10-05 Marketing Channels for Consumer Goods and Services

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Chapter 10 - Marketing Channels and Supply Chain

8. Channel length refers to the number of intermediaries in a distribution channel. TRUE

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 10-02 Define multichannel marketing and explain its advantages for consumers. Topic: 10-05 Marketing Channels for Consumer Goods and Services

9. Business channels are typically shorter than consumer channels. FALSE

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 10-02 Define multichannel marketing and explain its advantages for consumers. Topic: 10-06 Marketing Channels for Business Goods and Services

10. Amazon.ca is an example of an electronic marketing channel. TRUE

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 10-02 Define multichannel marketing and explain its advantages for consumers. Topic: 10-07 Electronic Marketing Channels

11. Dual distribution is an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. TRUE

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 10-02 Define multichannel marketing and explain its advantages for consumers. Topic: 10-08 Multiple Channels and Strategic Alliances

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Chapter 10 - Marketing Channels and Supply Chain

12. Gourmet Coffees sells its coffees through Gourmet Coffee stores and select gift shops, and its Morning Fresh brand of coffees through supermarket stores. This is an example of an electronic marketing channel. FALSE

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 10-02 Define multichannel marketing and explain its advantages for consumers. Topic: 10-09 Multichannel Marketing to the Online Consumer

13. Mozza cheese, a popular cheese distributor, distributes its cheeses to liquor stores across Canada, to use the liquor stores marketing channel. This is an example of dual distribution. FALSE

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 10-02 Define multichannel marketing and explain its advantages for consumers. Topic: 10-05 Marketing Channels for Consumer Goods and Services

14. Multichannel marketing is the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in the traditional marketplace and in the online marketspace. TRUE

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 10-02 Define multichannel marketing and explain its advantages for consumers. Topic: 10-09 Multichannel Marketing to the Online Consumer

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Chapter 10 - Marketing Channels and Supply Chain

15. Berta does online research on laptops. She reads various reviews by laptop owners and makes her choice. She later goes to a retail store to purchase the laptop. Berta is a crosschannel shopper. TRUE

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 10-02 Define multichannel marketing and explain its advantages for consumers. Topic: 10-09 Multichannel Marketing to the Online Consumer

16. Buybooks generates more sales volume from its website than its stores. This is an example of a promotional website. FALSE

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 10-02 Define multichannel marketing and explain its advantages for consumers. Topic: 10-09 Multichannel Marketing to the Online Consumer

17. Transactional websites are used less frequently by manufacturers of consumer products. TRUE

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 10-02 Define multichannel marketing and explain its advantages for consumers. Topic: 10-09 Multichannel Marketing to the Online Consumer

18. Under a contractual vertical marketing system, a firm at one level of a channel owns the firm at the next level or owns the entire channel. FALSE

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 10-03 Differentiate between types of vertical marketing systems. Topic: 10-11 Vertical Marketing Systems

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Chapter 10 - Marketing Channels and Supply Chain

19. If a producer owns the intermediary at the next level down in the channel, it is referred to as backward integration. FALSE

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 10-03 Differentiate between types of vertical marketing systems. Topic: 10-11 Vertical Marketing Systems

20. Tiffany & Co., the exclusive jewellery retailer, manufactures about half of the fine jewellery items that are offered for sale through its 150 stores and boutiques worldwide. This is an example of backward integration. TRUE

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 10-03 Differentiate between types of vertical marketing systems. Topic: 10-11 Vertical Marketing Systems

21. Manufacturer-sponsored wholesale franchise systems are prominent where a manufacturer licenses dealers to sell its cars subject to various sales and service conditions. FALSE

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 10-03 Differentiate between types of vertical marketing systems. Topic: 10-11 Vertical Marketing Systems

22. Channel choice typically depends upon market, company and product factors. TRUE

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 10-04 Describe factors that marketing executives consider when selecting and managing a marketing channel. Topic: 10-13 Factors Affecting Channel Choice

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Chapter 10 - Marketing Channels and Supply Chain

23. TrendyJeans sells its jeans through a few retail outlets in a specific geographical location. This is an example of exclusive distribution. FALSE

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 10-04 Describe factors that marketing executives consider when selecting and managing a marketing channel. Topic: 10-14 Channel Design Considerations

24. When a channel member bypasses another member and sells directly to consumers, disintermediation occurs. TRUE

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 10-04 Describe factors that marketing executives consider when selecting and managing a marketing channel. Topic: 10-15 Channel Relationships: Conflict and Cooperation

25. Vertical conflict occurs between intermediaries at the same level in a marketing channel, such as between two or more retailers or two or more wholesalers that handle the same manufacturer's brands. FALSE

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 10-04 Describe factors that marketing executives consider when selecting and managing a marketing channel. Topic: 10-15 Channel Relationships: Conflict and Cooperation

26. Logistics is concerned only with the flow of finished goods to the consumer. FALSE

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 10-05 Discuss supply chain and logistics management and how they relate to marketing strategy. Topic: 10-16 Logistics and Supply Chain Management

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Chapter 10 - Marketing Channels and Supply Chain

27. Electronic data interchange is the computer-to-computer exchange of business documents from a retailer to a supplier and back. TRUE

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 10-05 Discuss supply chain and logistics management and how they relate to marketing strategy. Topic: 10-17 Supply Chains versus Marketing Channels

Multiple Choice Questions 28. For marketers, the value of the supply chain is A. To perform the activities needed to get products or services to customers B. To minimize the costs of distribution C. To encourage customers to buy more products at one time D. Attain as many retail outlets as possible A successful supply chain performs the activities needed to get products or services to targeted customers.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries. Topic: 10-01 Nature and Importance of Marketing Channels

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Chapter 10 - Marketing Channels and Supply Chain

29. The set of individuals and firms involved in the process of making a product available for use by consumers and business users together make a(n) _____. A. wholesale business B. marketing channel C. advertising consortium D. consumers' advocacy group A marketing channel consists of individuals and firms involved in the process of making a product or service available for use by consumers and business users.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries. Topic: 10-02 What is a Marketing Channel?

30. Rob stops at the supermarket to purchase a package of Oreo cookies and other items on his grocery list. He is the ultimate buyer in a chain that starts from the producer through intermediaries such as the grocery store. This chain is called the _____. A. consumer market B. marketing intermediary C. marketing channel D. transactional route This is an example of a marketing channel. Marketing channels can be compared with a pipeline through which water flows from a source to an endpoint. Marketing channels make possible the flow of goods from a producer, through intermediaries, to a buyer.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries. Topic: 10-02 What is a Marketing Channel?

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Chapter 10 - Marketing Channels and Supply Chain

31. Which of the following is true about intermediaries? A. They refer to cross-channel shoppers who research products online and then purchase them at a retail store. B. They refer to individuals or firms performing a role in the marketing channel. C. They refer to marketers who hoard goods and sell them to consumers when demand is high. D. They refer to manufacturers of goods used in the production of other goods. Intermediaries are individuals or firms performing a role in the marketing channel, involved in making a product available.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries. Topic: 10-02 What is a Marketing Channel?

32. Gordon Brothers buys electronic goods from manufacturers, and sells them to stores like E-Land, Freid Electronics, and TechnoTouch Electronics. Gordon Brothers can be classified as a(n) _____. A. agent B. retailer C. wholesaler D. consumer Gordon Brothers can be classified as a wholesaler in this scenario. Wholesaler is any intermediary who sells to other intermediaries, usually to retailers. This term usually applies to intermediaries who deal in consumer goods.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries. Topic: 10-02 What is a Marketing Channel?

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Chapter 10 - Marketing Channels and Supply Chain

33. Brad often buys Nestlé products for his family from Seven Eleven Supermarket. Seven Eleven can be termed as a(n) _____. A. consumer B. wholesaler C. agent D. retailer Seven Eleven is a retailer. A retailer is an intermediary who sells to customers.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries. Topic: 10-02 What is a Marketing Channel?

34. Het Providers sell goods to other businesses and intermediaries in the marketing channel on credit. Het maintains inventories of goods and is authorized by the manufacturers. Het Providers can be classified as a _____. A. retailer B. supplier C. broker D. distributor A distributor is an intermediary who performs a variety of functions, including selling, maintaining inventories, extending credit, and others—usually used for those in business markets.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries. Topic: 10-02 What is a Marketing Channel?

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Chapter 10 - Marketing Channels and Supply Chain

35. Intermediaries make selling goods and services more efficient because the intermediaries minimize the number of sales contacts necessary to reach a target market. This highlights the: A. value created by channel intermediaries. B. channel intermediary development process. C. price inflation by channel intermediaries. D. channel intermediary promotional efforts. Few consumers appreciate the value created by intermediaries. However, producers recognize that intermediaries make selling goods and services more efficient because the intermediaries minimize the number of sales contacts necessary to reach a target market.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries. Topic: 10-03 Value Is Created by Intermediaries

36. Gathering, sorting, and dispersing products are some of the _____ functions of the intermediary. A. transactional B. logistical C. transitional D. facilitating Gathering, sorting, and dispersing products are some of the logistical functions of the intermediary.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries. Topic: 10-03 Value Is Created by Intermediaries

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Chapter 10 - Marketing Channels and Supply Chain

37. An electronics store buys electronic products from a manufacturer. It reaches out to retailers through promotional activities. However, the store is unable to sell some of the stock, and suffers a loss. Which of the following functions is the electronic store performing as an intermediary? A. facilitating function B. financing function C. logistical function D. transactional function The company is performing a transactional function. Intermediaries perform a transactional function when they buy and sell goods or services. But an intermediary such as a wholesaler also performs the function of sharing risk with the producer when it stocks merchandise in anticipation of sales.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries. Topic: 10-03 Value Is Created by Intermediaries

38. A supermarket chain buys fruits and vegetables from different sources, transfers them to its stores, and arranges them for its customers. Which of the following functions is the store performing as an intermediary? A. transactional function B. informational function C. logistical function D. facilitating function The store is performing the logistical function. Gathering, sorting, and dispersing products are some of the logistical functions of the intermediary.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries. Topic: 10-03 Value Is Created by Intermediaries

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Chapter 10 - Marketing Channels and Supply Chain

39. Shop ‘N' Hop has introduced a convenient payment mode for its customers. Customers can buy merchandise and pay for it at a later date. Which of the following functions is the store performing as an intermediary? A. facilitating function B. logistical function C. informational function D. transactional function Intermediaries perform facilitating functions that make the purchase easier for buyers. Providing credit is a facilitating function.

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