MARKETING 431 SFSU QUESTIONS WEEK 8

_____________ occurs when there is a clash of goals and methods between distribution channel members.
Select one:
a. Whining.
b. Channel conflict
c. Cognitive dissonance
d. Disintermediation
e. Administered systems
B
A ________________ is all of the organizations and activities associated with moving the product from producer to end user?

Select one:
a. Cartel
b. Market segment
c. Sales organization
d. Business
e. Marketing Channel

E
One drawback to adopting an intensive market coverage strategy is that there is no incentive for channel partners to promote your product because it isn’t “special”.

Select one:
True
False

True
A marketing channel helps to create ______ utility?
Select one:
a. Place
b. Electric
c. Image
d. Form
e. Time
A
Which of the following is NOT a reason a company might want to have more than one marketing channel?
Select one:
a. To provide local service to customers in different areas of the country.
b. To avoid becoming dependent on a single middleperson
c. Because you sell the same product to two completely different customer groups
d. In order to earn back money that otherwise would have been earned by your retail network.
e. To serve customers in different industries.
D
Carlina operates an automobile parts manufacturing plant in Chillicothe, Ohio. She has automotive customers in Michigan, Ohio, Tennessee, Georgia and Indiana. Because most of her customers insist on Just In Time inventory management she needs to know exactly when the shipments of her product to the customer will arrive. Carlina uses _________ transportation for this part of her business?
Select one:
a. Air
b. Truck
c. Pipeline
d. Rail
e. Water
B
Carlina operates a wholesale flower market serving florists in her city. She orders her roses from Ecuador because the quality is good and the prices are very competitive. Because the roses become unsalable after a day or two, Carlina uses _________ transportation for this part of her business?
Select one:
a. Water
b. Truck
c. Air
d. Rail
e. Pipeline
C
The biggest difference between a merchant wholesaler and an agent or broker is that the merchant wholesaler?
Select one:
a. Takes ownership of the products it carries.
b. Doesn’t bring buyers and sellers together.
c. Is paid a commission on what it sells
d. Deals with more than one company’s products.
e. Doesn’t have to call on customers.
A
Wal-Mart’s basic strategy is to provide products to customers at rock bottom prices. Thus their slogan, “Always Low Prices.” In order to achieve this strategy, Wal-Mart’s Supply chain is designed to maximize ___________?
Select one:
a. Variety
b. Upstream activities
c. Responsiveness
d. Efficiency.
e. Downstream activities.
D
BruceCo is an inventory liquidator. The company identifies other businesses that have huge amounts of unsold inventory and buys it from them at pennies on the dollar. They then try to find another company that can use the inventory and sell it to them at a profit. What makes this business so fun is that you never know from day to day what product you will be dealing in or who might be a prospective customer. What type of wholesaler would BruceCo be considered?
Select one:
a. A broker who negotiates deals with any customer who wishes to purchase what BruceCo is trying to liquidate.
b. A direct channel, selling to customers through a company website, charging $10 shipping and handling for ground delivery and $20 shipping and handling for rush delivery.
c. A manufacturer’s representative to call manufacturing businesses send the orders into BruceCo.
d. A distributor who carries a variety of products and sells to a variety of customers.
e. A regional warehouse which keeps inventory nearer to the customer.
A
In marketing channels where there are both large players and small players, a(n) ___________, usually the largest member of the channel will assume responsibility for coordinating activities in the channel?
Select one:
a. Intermediary
b. Vertical marketing system
c. System administrator
d. Opinion leader.
e. Channel captain
E
Ideally each of the channel flows is performed by a separate business that specializes in that function.

Select one:
True
False

False
Which of the following is NOT an example of an intermediary?
Select one:
a. Agent
b. Broker
c. Distributor
d. Retailer
e. Consumer
E
The supply chain centers on the producer. Downstream activities consist of?
Select one:
a. Actions that will allow the company to exit from an unattractive market.
b. Quality control and service monitoring after production begins
c. The flow of raw materials from the supplier to the producer
d. The flow of finished product from the producer to the end user
e. The channel flows that deal with the physical product.
D
Which of these would be considered an indirect marketing channel?
Select one:
a. A producer and a customer
b. A customer, a retailer, and a producer
c. A producer and a retailer
d. A retailer and a customer
e. A producer, a wholesaler, and a retailer.
B
Coca Cola’s basic strategy is they you should never be more than an arms length away from a cold, refreshing Coke. In order to achieve this strategy they try to make Coke products available for sale through as many outlets as possible. You can buy bottled Coke in the grocery store, fountain coke at a restaurant, single cans and bottles at convenience stores and gas stations, and individual cans from vending machines while you are waiting in line for a ride at an amusement park. Because the goal of the supply chain is to maximize __________, Coke is willing to bear the expense of having several different channels of distribution?
Select one:
a. Variety
b. Responsiveness
c. Efficiency.
d. Downstream activities.
e. Upstream activities
B
When dealing with logistics there is a fundamental trade-off between ________ and ________. The goal is to keep one high and the other low, but they tend to increase together.
Select one:
a. Cost, efficiency
b. Cost, service level
c. Profit, revenue
d. Service, responsiveness
e. Upstream, downstream.
B
Keeping inventory levels low decreases the chance of a stock out.

Select one:
True
False

False
Materials handling deals with loading and unloading products and moving them short distances from place to place. One of the biggest issues in material handling is?

Select one:
a. Breakage
b. Theft
c. All of these are issues associated with materials handling
d. Damage control
e. Keeping track of where things are

C
Thomas Friedman wrote a book about the impact of new technologies and other trends impacting the way business is conducted in the world called The World is Flat. One of the basic premises is that widespread adoption of internet protocols and the seamless connection of computer systems along the value chain allowing for the efficient flow of ___________ to help smooth the flow of goods from raw materials to end user.
Select one:
a. Information
b. Permission
c. Intermediation
d. Payment
e. Technology
A
A _____________ includes all of the activities involved with taking a raw material, turning it into a finished product, and getting it into the hands of the customer?

Select one:
a. Supply network
b. Marketing channel
c. Value chain
d. Channel flow
e. Channel strategy

C
The supply chain centers on the producer. Upstream activities consist of?
Select one:
a. Gaining permits and licenses in order to be able to operate the business.
b. The flow of finished product from the producer to the end user
c. Market research and product concept testing before production begins
d. The channel flows that deal with information.
e. The flow of raw materials from the supplier to the producer
E
The ____________ channel flow deals with the movement of the actual product from producer to consumer?

Select one:
a. Ownership
b. Promotion
c. Ordering
d. Physical possession
e. Payment

D
Thomasville furniture decided to reduce the number of dealers carrying its line fine furniture. Stores who wished to carry Thomasville were required to dedicate at least 10,000 square feet in their store for a Thomasville gallery. This meant that only the larger dealers in a given market would be able to carry Thomasville. This is an example of?
Select one:
a. Selective
b. Exhaustive
c. Intensive
d. Discriminating
e. Exclusive
A
The _________________ channel flow involves two-way communication between producer and consumer?

Select one:
a. Ordering
b. Negotiation
c. Ownership
d. Promotion
e. Risking

B
When I order a book from Amazon.com, an online marketplace, I receive an order confirmation that tells me when my package will leave the Amazon warehouse, the name of the shipper, and a link to the shipper’s website that allows me to track the progress of my package from the warehouse to my home. This way I know exactly when to expect my package. This is an example of the use of ____________ to smooth the flow of goods and services through the channel of distribution?
Select one:
a. Intermediation.
b. Warehousing
c. Permission
d. Information
e. Payment
D
Which of the following is NOT a cost typically associated with logistics?
Select one:
a. Order processing
b. Stockout.
c. Transportation
d. Advertising
e. Inventory
D
Carlina operates a wholesale lumber business serving contractors in her Midwestern city. She takes orders from a central location and delivers the lumber and other building materials to the contractor’s jobsite using her own trucks. She orders her lumber from a mill in Washington State. Because the lumber is bulky and she orders large quantities she uses _________ transportation to ship the lumber from Washington?
Select one:
a. Water
b. Pipeline
c. Rail
d. Truck
e. Air
C
Which of the following is NOT an example of a third-party provider of logistics?
Select one:
a. A freight forwarder
b. An export/import firm
c. A parcel delivery company
d. A public warehouse.
e. A design firm
E
Which of these is NOT a tool used in materials handling?

Select one:
a. RFID (radio frequency identification)
b. Bar code scanners
c. Forklifts
d. Safety stock
e. Conveyor belts

D
Kendra runs a wholesale distribution center for candy. Each week she receives candy from all of the major manufacturers. She stamps a date sticker on each package so the retailers will know how fresh the candy is. She also provides information on how much cocoa is in the chocolate from the various manufacturers. Kendra is adding value by ___________?
Select one:
a. Creating assortment
b. Transporting
c. Storing
d. Breaking bulk
e. Grading.
E
One of the ways intermediaries create value is to?
Select one:
a. Invest in trucks that are much more expensive than other companies in the channel can afford.
b. Increase the amount of money customers are willing to pay for a good or service.
c. These are all ways that intermediaries create value.
d. Decrease the number of transactions needed to create an efficient market.
e. Provide a buffer between consumer and producer so individuals don’t feel like they are dealing with a large corporation.
D
The supply chain centers on the producer. Upstream activities consist of?
Select one:
a. The channel flows that deal with information.
b. Gaining permits and licenses in order to be able to operate the business.
c. The flow of finished product from the producer to the end user
d. Market research and product concept testing before production begins
e. The flow of raw materials from the supplier to the producer
E
In a market with four producers and six retailers, the addition of a wholesaling middleman can decrease the number of transactions needed to have an efficient market form 24 to 10. This is an example of?
Select one:
a. The economy of transactions
b. Disruptive innovations
c. Selective distribution
d. Disintermediation
e. Economies of scale
A
One of the issues in order processing is ________ which recognizes that customer orders cannot always be filled immediately?
Select one:
a. Communication
b. Flexible manufacturing
c. Variability
d. Lead time
e. Dependability
D
Carlina operates a wholesale flower market serving florists in her city. She orders her roses from Ecuador because the quality is good and the prices are very competitive. Because the roses become unsalable after a day or two, Carlina uses _________ transportation for this part of her business?
Select one:
a. Truck
b. Rail
c. Pipeline
d. Water
e. Air
E
BruceCo is an inventory liquidator. The company identifies other businesses that have huge amounts of unsold inventory and buys it from them at pennies on the dollar. They then try to find another company that can use the inventory and sell it to them at a profit. What makes this business so fun is that you never know from day to day what product you will be dealing in or who might be a prospective customer. What type of wholesaler would BruceCo be considered?
Select one:
a. A direct channel, selling to customers through a company website, charging $10 shipping and handling for ground delivery and $20 shipping and handling for rush delivery.
b. A broker who negotiates deals with any customer who wishes to purchase what BruceCo is trying to liquidate.
c. A distributor who carries a variety of products and sells to a variety of customers.
d. A regional warehouse which keeps inventory nearer to the customer.
e. A manufacturer’s representative to call manufacturing businesses send the orders into BruceCo.
B
When I order a book from Amazon.com, an online marketplace, I receive an order confirmation that tells me when my package will leave the Amazon warehouse, the name of the shipper, and a link to the shipper’s website that allows me to track the progress of my package from the warehouse to my home. This way I know exactly when to expect my package. This is an example of the use of ____________ to smooth the flow of goods and services through the channel of distribution?
Select one:
a. Warehousing
b. Intermediation.
c. Payment
d. Permission
e. Information
E
Kendra runs a wholesale distribution center for candy. Each week she receives candy from all of the major manufacturers at her warehouse. She then puts cases of each brand of candy in her delivery trucks so that her drivers can visit her retail customers and resupply their candy racks. Kendra is adding value by ___________?
Select one:
a. Transporting
b. Grading.
c. Breaking bulk
d. Creating confusion.
e. Storing
A
With _________________ the roles of the various channel partners are specified by a formal contract.

Select one:
a. The roles of the channel partners are specified by contract in all of these situations.
b. Co-operative associations
c. Franchises
d. Vertical marketing systems

A
One of the ways intermediaries create value is to?
Select one:
a. Specialize in one or more channel functions in order to become better at it than others in the channel.
b. Invest in trucks that are much more expensive than other companies in the channel can afford.
c. These are all ways that intermediaries create value. Incorrect
d. Provide a buffer between consumer and producer so individuals don’t feel like they are dealing with a large corporation.
e. Increase the amount of money customers are willing to pay for a good or service.
A
A storage warehouse creates value by?
Select one:
a. Act as a transshipment point as products move from manufacturer to retailer.
b. Creating possession utility for producers
c. A storage warehouse does all of these things.
d. Providing a place for last minute assembly.
e. Holding inventory closer to where customers are likely to use it.
E
BruceCo makes novelty products such as whoopee cushions and plastic vomit. The company sells about $2 million dollars worth of product. The major customers for BruceCo products are small independent novelty shops that will typically order less than $200 worth of product at a time. Adding an intermediary to the marketing channel could add value through _________?
Select one:
a. Specialization
b. Disintermediation
c. Omnichannel distribution
d. Humor
e. Economy of transactions
E
Most of the functions that need to happen in order to move a product from producer to consumer deal with?
Select one:
a. Money
b. All of the above
c. Transportation
d. Information
e. Products
D
What is the difference between the supply chain and the value chain?
Select one:
a. The supply chain concept is used with tangible products while the value chain concept is used with services.
b. Very little. The supply chain is the part of the value chain.
c. Supply chain is a term used in marketing textbooks while value chain is a term used in Management textbooks.
d. The supply chain deals with the cost side of the product while the value chain deals with the revenue side of the product.
e. the supply chain refers to activities around the physical product while the value chain deals with information flows associated with distribution.
B
The decision to hold inventory is critical to providing customer service through the supply chain. There are both costs and benefits. Which of these is NOT a benefit of holding inventory?
Select one:
a. Serve as a hedge against inflation for price-sensitive goods.
b. Serve as a buffer against supply interruptions
c. Make it possible to save money buy buying in volume.
d. To create possession utility for producers
e. To create time utility for customers
D
One of the advantages of ____________ is that they can be moved from one platform to another without having been loaded or unloaded. Names such as piggyback, fishyback relate to the variety of transportation options?
Select one:
a. Packages
b. Shipping containers
c. Forklifts
d. Trucks
e. Conveyer belts
B
____________ deals with the flow of physical goods and related information through the value chain?

Select one:
a. Channeling
b. Efficiency
c. Marketing
d. Promotion
e. Logistics

E
Tami owned the Subway franchise in Centennial Village at San Francisco state University. She heard that another franchisee had been granted permission to open a Subway in the student union. She immediately complained to whoever would listen to her that the new store would take away most of her business. This is an example of?
Select one:
a. Vertical integration
b. A price war
c. Horizontal conflict
d. Disenfranchisement
e. Vertical conflict.
C
The _______________ concept recognizes that there are a set of functions that need to happen in order to move a product from the producer to the consumer?
Select one:
a. Utility
b. Channel flow
c. Value
d. Four “P’s”
e. Intermediary
B
Unlike a storage warehouse, a distribution center is primarily for?
Select one:
a. Storage
b. Vertical integration
c. Climate control
d. Reintermediation
e. Transshipment of products
E
The decision to hold inventory is critical to providing customer service through the supply chain. There are both costs and benefits. Which of these is NOT a cost of holding inventory?
Select one:
a. Materials handling costs
b. Inventory taxes
c. The risk of damage or spoilage
d. The need to purchase inventory insurance
e. Increased number of stock outs
E
When dealing with order processing, there is a trade-off between ____________ and ____________?

Select one:
a. Speed of delivery, cost
b. Financial cost, risk-related costs
c. Transaction costs, inventory levels
d. Storage, distribution intensity
e. Speed of delivery, damage

C
The basic trade-off in logistics is between ________ and ________?
Select one:
a. Efficiency and responsiveness.
b. Upstream and downstream
c. Time and money
d. Storage and transportation.
e. Revenue and costs
A
A marketing channel always includes?
Select one:
a. A raw materials supplier
b. A wholesaler
c. All of the above
d. An end user
e. An intermediary
D
Kendra runs a wholesale distribution center for candy. Each week she receives a truckload of candy from her supplier and unpacks it so that her customers only have to buy a case at a time. Kendra is adding value by ___________?
Select one:
a. Breaking bulk
b. Transporting
c. Grading.
d. Storing
e. Creating assortment
A
I can’t believe it, said Wiley Coyote, I am the president of Acme enterprises and we make $200,000 a year profit with me working my tail off. Our distributor, Road Runner Representatives, made over $800,000 in commissions. I don’t understand why they are making all of that money when all they do is run around all day and say beep-beep to customers. I think we should lower the commission rate to bring their income down to a more reasonable level. This is an example of?
Select one:
a. Horizontal conflict
b. Vertical conflict.
c. A price war
d. Suspended animation
e. Vertical integration
B
BruceCo makes novelty products such as whoopee cushions and plastic vomit. The company sells about $2 million dollars worth of product. The major customers for BruceCo products are small independent novelty shops that will typically order less than $200 worth of product at a time. Which of these marketing channels would be the best for BruceCo to adopt?
Select one:
a. Recruit junior high school students to demonstrate the product during lunch.
b. Hire a manufacturer’s representative to call on independent novelty shops and send the orders into the factory.
c. Work with a broker to negotiate deals with each of the novelty shops who wish to carry BruceCo products.
d. Work with a distributor who carries a variety of products sold in novelty shops.
e. Set up a series of regional warehouses to keep inventory nearer to the customer.
D
Which of the following is an example of a direct marketing channel?
Select one:
a. My brother in law Don who custom builds homes for customers on their property.
b. The Dell Corporation which sells computers to consumers through its company owned website.
c. My niece Polly who sells hand-made jewelry at tables she rents at craft shows and art fairs.
d. The Avon Corporation which has company-paid salespeople sell cosmetics door to door
e. These are all direct channels of distribution.
E
Carlina operates an oil refinery in Houston Texas. She gets her crude oil from the largest oilfield in Texas. Because the product is more or less fluid and because she knows exactly where the raw material is coming from and where it has to go, Carlina uses _________ transportation for this part of her business?
Select one:
a. Rail
b. Air
c. Water
d. Pipeline
e. Truck
D
A distributor is simply a wholesaler serving the B2B (business to business) market.

Select one:
True
False

True
From a channel flow perspective, ownership of a product changes from producer to consumer when the consumer takes physical possession of the product.

Select one:
True
False

False
Which of the following is NOT an issue typically addressed in developing a channel strategy?
Select one:
a. Market Coverage
b. After-sale service
c. Advertising
d. Service level
e. In-stock levels
C
Carlina operates a tofu making factory in Taiwan. She uses soybeans grown in Northwest Ohio for her tofu because they are very high quality and the prices are low. Soybeans will keep for a very long time without spoiling. Because her main concern is how to get the thousands of bushels of soybeans to her factory for the least cost, Carlina uses _________ transportation for this part of her business?
Select one:
a. Pipeline
b. Water
c. Rail
d. Truck
e. Air
B
Which of the following is NOT a cost typically associated with logistics?
Select one:
a. Storage
b. Product development
c. Order processing
d. Stockout.
e. Materials handling
B
One critical issue to consider when developing a marketing channel that may not be covered in marketing textbooks is…?
Select one:
a. Whether or not to outsource channel flows
b. The nature of the product being distributed
c. How many intermediaries to include in the channel
d. The need to prove your product is a good fit for your channel partners
e. Whether or not to accept credit cards
D
____________ in the diffusion of innovations process are less influenced by advertising and more likely to consider word of mouth information when deciding to adopt a new product.

Select one:
a. Laggards
b. Early majority
c. Late majority
d. Late adopters
e. Innovators

C
Kendra runs a wholesale distribution center for candy. Each month she receives a shipment of candy from her supplier. She always has enough inventory on hand so that her retail customers can buy cases of candy whenever they need it. Kendra is adding value by ___________?
Select one:
a. Creating assortment
b. Breaking wind
c. Storing
d. Transporting
e. Grading.
C
BruceCo sells medical devices used in surgical operations. It requires a great deal of training to be able to use these medical devices properly and there is a potential liability to BruceCo if they are used improperly. Because each product has to be numbered and monitored for quality and sanitation, the products must be handled carefully and are expensive. Which of these market coverage strategies would be best for BruceCo?
Select one:
a. Selective distribution
b. Intensive distribution
c. Invasive distribution
d. Excessive distribution
e. Exclusive distribution
E
A selective market coverage approach works best for shopping products that have a distinctive brand.

Select one:
True
False

False
Availability or having a product in stock is a primary distribution concern for convenience products.

Select one:
True
False

True
A(n) ____________ is an entity that assists in the movement of products through the channel?
Select one:
a. Principal
b. End user
c. Intermediary
d. Customer
e. Supplier
C
The goal of a marketing channel is to?
Select one:
a. Create the most efficient way to move products from producer to consumer
b. Create a network of suppliers, intermediaries and customers to support long-term sales of the product.
c. Identify groups of people with needs that are similar to each other and different from everyone else
d. Communicate with groups of people who are similar to each other and different from everyone else.
e. Create economies of scale for the producer.
A
A direct marketing channel consists of?
Select one:
a. A customer
b. A retailer and a customer
c. A producer and a customer
d. A producer, a truck, and a retailer.
e. A producer and a retailer
C
Caterpillar makes heavy equipment for the construction industry. These machines are used hard and need fast reliable service to keep them running once a customer has purchased one. Because of this, there is only one Caterpillar dealer in any market. This is an example of __________ distribution?
Select one:
a. Exclusive
b. Heavy-duty
c. Selective
d. Intensive
e. Exhaustive
A