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Marketing: A McGraw-Hill and QUT Custom Publication

Marketing

A McGraw Hill and QUT Custom Publication

Managing Marketing Chanels and Wholesaling

Multiple Choice Quiz


1		You probably own several pairs of blue jeans. Further, it is highly likely you purchased those jeans at retail stores located in a shopping mall. It is quite unlikely you bought the jeans directly from the manufacturer. In fact, most goods are brought to you via a(n) _____, which consists of several organizations involved in the process of marketing products or services and making them available for our use as consumers.
			A)	organizational chain of command
			B)	organizational hierarchy
			C)	marketing channel
			D)	marketing hierarchy
			E)	marketing chain of command


2		Ingram Book Group, the nation's largest book wholesaler, saw how retailers were struggling to keep books in stock, placing orders with hundreds of different publishers and sometimes waiting weeks for the books to arrive. With Ingram, retailers can place one order, receive one shipment, and be billed on one invoice, even if the titles come from many different publishers. Which logistical function is Ingram Book Group performing for retailers?
			A)	sorting and assorting
			B)	assorting and grading
			C)	risk taking and selling
			D)	marketing and sorting
			E)	financing, transporting, and storing


3		Intermediaries perform facilitating function activities, which assist producers in making goods and services more attractive to buyers. These activities include:
			A)	producing, assembling, and distributing.
			B)	transportation and distribution.
			C)	buying, selling, and risk taking.
			D)	assorting, sorting, and storing.
			E)	financing, grading, and marketing information and research.


4		An artist can buy white blank dishes and figurines, glaze (paint) them, fire the glazed pieces in a kiln, and sell the finished work to customers. By decorating the pieces and increasing their aesthetic value, the middleman artist creates _____ utility.
			A)	form
			B)	application
			C)	possession
			D)	time
			E)	place


5		When Averil and Pete Peters, owners of Woodsgift Farm, were growing apples and blueberries and selling them at a fruit stand when one year they had a bumper crop and were unable to sell all they grew. They decided to use the excess fruit to make jams and jellies. This project was such a success that they now sell only jams and jellies made from their own fruit. The Peters sell the Woodsgift jams and jellies through mail order and at their old fruit stand. What kind of a distribution channel are the Peters using?
			A)	direct channel.
			B)	indirect channel.
			C)	facilitated channel.
			D)	customer-service channel.
			E)	truck jobber channel.


6		Indirect channels for consumer goods:
			A)	occur when one firm's marketing channels are used to sell another firm's products.
			B)	include producers and end-users dealing directly with each other.
			C)	include intermediaries that are between the producer and consumer and perform numerous channel functions.
			D)	are arrangements whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.
			E)	are accurately described by none of the above.


7		Ingram Book Group, the nation's largest book wholesaler, saw how retailers were struggling to keep books in stock, placing orders with hundreds of different publishers and sometimes waiting weeks for the books to arrive. With Ingram, retailers can place one order, receive one shipment, and be billed on one invoice, even if the titles come from many different publishers. What role is Ingram Book Group playing in the business marketing channels?
			A)	industrial distributor
			B)	general merchandise wholesaler
			C)	limited-service wholesaler
			D)	specialty merchandise wholesaler
			E)	cash and carry wholesaler


8		Ingram Micro is the biggest computer wholesaler in the world. Ingram Micro serves two constituencies. They are the producers of computer products, such as IBM and Microsoft, and the resellers and retailers who sell the computer products to businesses and individual customers. Ingram Micro uses _____ because it uses different channels to reach its customers.
			A)	cross-docking.
			B)	a brokerage network.
			C)	contractual vertical marketing system.
			D)	horizontal integration.
			E)	dual distribution.


9		Cereal Partner Worldwide (CPW) joined the manufacturing and marketing capabilities of U.S.-based General Mills with the worldwide distribution of Swiss-based Nestlé. Thus, in Paris your breakfast can include Nestlé Cheerios miel armandes as well as coffee and a croissant. CPW illustrates which recent innovation in marketing channels?
			A)	dual distribution
			B)	multi-channel distribution
			C)	cooperative distribution
			D)	a strategic channel alliance
			E)	bilateral trade agreement


10		Which type of limited-service wholesaler would typically handle coal, bricks, steel ingots, and scrap metal?
			A)	selling agent
			B)	truck jobber
			C)	truck shopper
			D)	drop shipper
			E)	cash and carry wholesaler


11		A regional manufacturer of dairy products has developed a frozen soy-based yogurt product. It feels the choice of distribution channel is critical to the product's success, especially since it wants to have the product distributed nationally. However, it will take some time before sales take off, and it wants to make sure the marketing program is consistent everywhere. It should use:
			A)	its own salesforce to sell directly to retailers.
			B)	the services of a selling agent to sell to general merchandise wholesalers who will sell to retailers.
			C)	a dual distribution system composed of both direct and indirect wholesalers.
			D)	a rack jobber who will sell to a merchant wholesaler and who will in turn sell to retailers.
			E)	manufacturers' agents to sell to truck jobbers who in turn will deal with retailers.


12		In 2000, Neurosmith, a new toy company, launched Music Blocks, a $70 set of electronic blocks that young children arrange in different combinations to create music and experiment with sound. To get the toy into the hands of the consumers, Neurosmith chose to use a _____ to be principally responsible for the transactional channel functions.
			A)	rack jobber
			B)	drop shipper
			C)	truck jobber
			D)	manufacturers' agent
			E)	broker


13		A manufacturer's sales office:
			A)	does not perform any of the functions typically performed by agents and brokers.
			B)	carries a producer's inventory.
			C)	typically performs only a sales function.
			D)	is an entrepreneurial enterprise that operates independently of the manufacturers it represents.
			E)	performs the functions of a full-service wholesaler for the producer.


14		Which of the following is the most popular type of vertical marketing system, accounting for about 40 percent of all retail sales?
			A)	corporate vertical marketing systems
			B)	horizontal marketing systems
			C)	contractual vertical marketing systems
			D)	administered vertical marketing systems
			E)	wholesaler-sponsored voluntary systems


15		When Averil and Pete Peters, owners of Woodsgift Farm, were growing apples and blueberries and selling them at a fruit stand when one year they had a bumper crop and were unable to sell all they grew. They decided to use the excess fruit to make jams and jellies. This project was such a success that they now sell only jams and jellies made from their own fruit. When the Peters expanded from just growing the fruit to making and selling jams and jellies, this was an example of:
			A)	administered integration.
			B)	horizontal integration.
			C)	dual distribution.
			D)	a tying arrangement.
			E)	forward integration.


16		The density of distribution whereby a firm tries to place its products or services with only one retail outlet in a specified geographical area is called _____ distribution.
			A)	intensive
			B)	extensive
			C)	selective
			D)	exclusive
			E)	concentrated


17		_____ arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals.
			A)	Channel conflict
			B)	Disintermediation
			C)	Cross-docking
			D)	Partnership inconsistency
			E)	Relationship variance


18		An increase in distribution coverage would be an obvious sign of:
			A)	an administered channel.
			B)	horizontal conflict.
			C)	an inefficient channel captain.
			D)	a resale maintenance agreement.
			E)	vertical conflict.


19		Dual distribution is illegal if it:
			A)	requires a channel member to sell only the products made by one particular producer.
			B)	creates economies of scale.
			C)	lessens competition by eliminating wholesalers or retailers.
			D)	requires franchisees to buy unneeded products in order to get products they need to do business.
			E)	stipulates to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may be sold.


20		When a supplier requires a channel member to carry its full line of products in order to sell a specific item in the supplier's line, it is a type of:
			A)	exclusive dealing.
			B)	tying arrangement.
			C)	resale restriction.
			D)	vertical integration.
			E)	horizontal conflict.

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