Chapter 12 - Testbanks PDF

Preview

Summary

Testbanks...

Description

Principles of Marketing, 17e, Global Edition (Kotler/Armstrong) Chapter 12 Marketing Channels: Delivering Customer Value 1) Producing a product or service and making it available to buyers requires building relationships not only with customers but also with key suppliers and resellers in the company's ________. A) upstream partnerships B) marketing channels C) inventory providers D) supply chain E) downstream partnerships Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 2) The sets of firms that supply companies with the raw materials, components, parts, information, finances, and expertise needed to create products or services are known as ________. A) retailers B) upstream partners C) distributors D) downstream partners E) distribution channels Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 3) Which of the following terms refers to the wholesalers and retailers that form a vital link between the firm and its customers? A) factory-supply networks B) downstream partners C) resource banks D) upstream partners E) supply channels Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 1 Copyright © 2018 Pearson Education, Ltd.

4) The term supply chain is considered limited because it ________. A) ignores the make-and-sell aspect of the market B) suggests that planning begins with raw materials and factory capacity C) takes a step-by-step, linear view of purchase-production-consumption activities D) takes a sense-and-respond view of the market E) suggests that planning starts with identifying the needs of target customers Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate 5) The term demand chain is considered limited because it ________. A) advocates a make-and-sell view of the market that relies on a responsive supply network B) suggests that planning starts with raw materials, productive inputs, and factory capacity C) takes a step-by-step, linear view of purchase-production-consumption activities D) ignores the evolution of the global marketplace E) overlooks the needs of target customers Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate 6) A view of the market that specifies that planning starts by identifying the needs of target customers, to which the company responds by organizing a chain of resources and activities with the goal of creating customer value is a(n) ________ view. A) make-and-sell B) identify-and-target C) purchase-produce-and-consume D) market-and-profit E) sense-and-respond Answer: E AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate

2 Copyright © 2018 Pearson Education, Ltd.

7) A ________ is made up of the company, suppliers, distributors, and customers who partner to improve the performance of the entire system. A) value delivery network B) horizontal channel C) consumer base D) product delivery network E) product line Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 8) ________ play an important role in matching supply and demand by providing consumers with a broad assortment of products in small quantities. A) Virtual banks B) Intermediaries C) Price consultants D) Uniform-delivery networks E) Upstream partners Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Challenging 9) Which of the following questions is NOT of major concern regarding marketing channels? A) What role do physical distribution and supply chain management plan in attracting and satisfying customers? B) What impact do marketing channels have on the profitability of the firm and its partners? C) How do channel firms interact and organize to do the work of the channel? D) What problems do companies face in designing and managing their channels? E) What is the nature of marketing channels, and why are they important? Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate

3 Copyright © 2018 Pearson Education, Ltd.

10) A ________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. A) product line B) product delivery network C) marketing channel D) consumer base E) resource bank Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 11) Which of the following is most likely true of marketing channel decisions? A) They often involve long-term commitments to other firms. B) They have minimal influence on the prices of products offered to customers. C) They increase the amount of time a company spends connecting with customers. D) They increase the amount of effort a company puts in to distribute goods. E) They are easily altered, replaced, or discarded. Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 12) Distribution channel decisions frequently require long-term commitments between firms. A primary reason is that ________. A) advertising is not easy to change B) old products are difficult to discard and new products are difficult to introduce C) when they set up distribution through franchisees, independent dealers, or large retailers, they cannot readily replace these channels with company-owned stores or Internet sites if conditions change D) changing the manufacturing requirements is expensive and takes significant time E) management does not want to be constantly changing the method of selling and distributing its products Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Challenging

4 Copyright © 2018 Pearson Education, Ltd.

13) ________ play an important role in efficiently making products available to target markets in the needed varieties and quantities. A) Virtual banks B) Intermediaries C) Price consultants D) Uniform-delivery networks E) Upstream partners Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Challenging 14) From the economic system's point of view, the role of ________ is to transform the assortments of products made by producers into the assortments wanted by consumers. A) upstream partners B) marketing intermediaries C) third-party logistics D) price consultants E) factory supervisors Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 15) A ________ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. A) product platform B) channel level C) resource bank D) contact center E) customer franchise Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy

5 Copyright © 2018 Pearson Education, Ltd.

16) In a(n) ________ channel, the same member both produces and distributes a product or service to consumers. A) tiered B) direct C) platform D) vertical E) exclusive Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 17) Which of the following companies uses a direct marketing channel? A) Fishhooks, a factory that manufactures fishing equipment that it ships to hobby stores worldwide B) Germfight, a factory that manufactures dental products that it distributes only to select department stores C) Apple Blossoms, a company that sells its cosmetics exclusively through Ray's Retail Store D) Holly Wreaths, a store that sells Christmas ornaments to customers via its online click-toorder catalogs E) Showdown, a clothing store that stocks merchandise from different international brands Answer: D AACSB: Application of knowledge Skill: Application Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate 18) At its most basic form, a marketing channel consists of the producer and the ________. A) retailer B) sales agent C) competitor D) processor E) consumer Answer: E AACSB: Reflective thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy

6 Copyright © 2018 Pearson Education, Ltd.

19) A marketing channel that consists of one or more intermediaries is known as a(n) ________ marketing channel. A) cyclic B) upstream C) looped D) direct E) indirect Answer: E AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 20) Plasticine Palace supplies its products exclusively to Arts & Crafts, a chain of stationery stores across the country. The chain then makes the plasticine available to end consumers. This is an example of ________. A) a direct marketing channel B) intensive distribution C) an indirect marketing channel D) disintermediation E) extensive distribution Answer: C AACSB: Application of knowledge Skill: Application Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate 21) Which of the following is an example of an indirect marketing channel? A) June Bride, which sells bridal gowns via its click-to-order online catalogs B) Farmer Brown, who delivers fresh milk from his dairy to customers every morning C) Wine & Dine, which sells its picnic baskets to select novelty stores across the country D) Lifebelt Insurance, which sells life insurance through its door-to-door salespeople E) Rhonda's Rental, which rents cars to people for the day Answer: C AACSB: Application of knowledge Skill: Application Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate

7 Copyright © 2018 Pearson Education, Ltd.

22) Which of the following is a type of flow that connects all institutions in a marketing channel? A) payment flow B) ownership flow C) physical flow D) promotion flow E) information flow Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 23) The greater the number of channel levels in a marketing channel, the ________. A) less distance between producer and end-consumer B) greater the channel complexity C) less time it takes for products to reach end-consumers D) greater the control producers have over the distribution of their products E) greater the control producers have over the demand of their products Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 24) Which of the following is a conventional consumer marketing channel? A) producer to business distributor to end consumer B) producer to wholesaler to retailer to end consumer C) producer to end consumer to business customer D) producer to retailer E) producer to business distributor to business customer Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy

8 Copyright © 2018 Pearson Education, Ltd.

25) Which of the following is an indirect business marketing channel? A) producer to retailer to business distributor B) producer to wholesaler to retailer to end consumer C) producer to end-consumer to business distributor D) producer to retailer E) producer to business distributor to business customer Answer: E AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate Refer to the scenario below to answer the following question(s). Giant Beanstalks is a company based in Maryland that processes and cans vegetables. It has contracts with several large farms in Riverdale, 80 miles away from the factory, that agree to sell their produce to Giant Beanstalks. The company's products are available to the public only through Greenleaf, a grocery chain with 38 stores in the country. 26) Which of the following is Giant Beanstalks' upstream partner? A) the management of Greenleaf B) the farmers of Riverdale C) the trucks that carry Giant Beanstalks' products to Greenleaf D) the end-consumers who buy the canned vegetables from Greenleaf E) the logistics division of Giant Beanstalk Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate 27) Downstream marketing channel partners, such as wholesalers and retailers, form a vital link between the firm and its customers. Answer: TRUE AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy

9 Copyright © 2018 Pearson Education, Ltd.

28) A company's channel decisions directly affect the prices of its products. Answer: TRUE AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 29) Producers use intermediaries because they create greater efficiency in making goods available to target markets. Answer: TRUE AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 30) The role of marketing intermediaries is to transform the assortments of products made by retailers into the assortments wanted by producers. Answer: FALSE AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 31) Each layer of marketing intermediaries that performs some work in bringing the product and its ownership closer to the final buyer is a channel level. Answer: TRUE AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 32) It is more efficient for a company to keep the marketing channel functions—such as information gathering, promotion, contacting customers and matching their needs, negotiation, and physical distribution—in-house as they are most skilled at those functions. Answer: FALSE AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate

10 Copyright © 2018 Pearson Education, Ltd.

33) The number of products supplied indicates the length of a channel. Answer: FALSE AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 34) In a direct marketing channel, the producer sells directly to the intermediaries, who in turn sell directly to the customers. Answer: FALSE AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 35) Provide an example of a company that has used an imaginative distribution system to gain a competitive advantage. Answer: Enterprise Rent-A-Car revolutionized the car-rental business by setting up off-airport rental offices. Apple turned the retail music business on its head by selling music for the iPod via the Internet on iTunes. And Amazon.com forever changed the face of retailing and became the Walmart of the Internet by selling anything and everything without using physical stores. Student answers will vary. AACSB: Application of knowledge Skill: Application Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Challenging

11 Copyright © 2018 Pearson Education, Ltd.

36) Why is the term value delivery network a more relevant expression to use than the terms supply chain or demand chain? Answer: The term supply chain may be too limited, because it takes a make-and-sell view of the business. It suggests that raw materials, productive inputs, and factory capacity should serve as the starting point for market planning. The term demand chain is better because it suggests a sense-and-respond view of the market. Under this view, planning starts by identifying the needs of target customers, to which the company responds by organizing a chain of resources and activities with the goal of creating customer value. However, even a demand chain view of a business may be too limited because it takes a step-by-step, linear view of purchase-productionconsumption activities. Most large companies today are engaged in building and managing a complex, continuously evolving value delivery network. A value delivery network is made up of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system. AACSB: Application of knowledge; Written and oral communication Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate 37) How do intermediaries add value to a marketing system? Answer: Intermediaries reduce the amount of work that must be done by both producers and consumers. They transform the assortment of products made by producers into the assortment wanted by consumers. They buy large quantities from many producers and break them down into the smaller quantities and broader assortments wanted by consumers. Intermediaries help to match supply and demand. Intermediaries add value by bridging the major time, place, and possession gaps that separate goods and services from those who would use them. AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate 38) What are the key functions that members of the marketing channel perform? Answer: Members of the marketing channel help to complete transactions by gathering and distributing information, developing and spreading promotions, contacting prospective buyers, matching and shaping the offer to the buyer's needs, and negotia...