Chapter 12 Marketing Channels: Delivering Customer Value
1) Which of the following is NOT a typical supply chain member? A) resellers B) customers C) intermediaries
D) government agencies E) raw materials supplier Answer: D Diff: 1 Page Ref: 337 Skill: Concept Objective: 12-1
2) ________ the manufacturer or service provider is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service. A) Downstream from B) Upstream from C) Separated from D) Congruous to E) Parallel with Answer: B Diff: 2 Page Ref: 337 Skill: Concept Objective: 12-1
3) Another term for the supply chain that suggests a sense and respond view of the market is ________.
A) supply and demand chain B) demand chain
C) channel of distribution D) distribution channel E) physical distribution Answer: B Diff: 3 Page Ref: 338 Skill: Concept Objective: 12-1
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4) When suppliers, distributors, and customers partner with each other to improve the performance of the entire system, they are participating in a ________. A) value delivery network B) channel of distribution C) supply chain D) demand chain E) all of the above Answer: A Diff: 1 Page Ref: 338 Skill: Concept Objective: 12-1
5) Most producers today sell their goods to ________. A) final users
B) final users and marketing members C) intermediaries
D) the government at various levels E) competitors Answer: C Diff: 2 Page Ref: 339 Skill: Concept Objective: 12-1
6) A company's channel decisions directly affect every ________. A) channel member B) marketing decision C) customer's choices
D) employee in the channel E) competitor's actions Answer: B Diff: 2 Page Ref: 339 Skill: Concept Objective: 12-1
7) Distribution channel decisions often involve ________ with other firms, particularly those that involve contracts or relationships with channel partners. A) short-term commitments B) long-term commitments C) major problems D) financial losses E) disagreements Answer: B Diff: 3 Page Ref: 339 Skill: Concept Objective: 12-1
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8) Joe Blanco, like other producers, has discovered that his intermediaries usually offer his firm more than it can achieve on its own. Which of the following is most likely an advantage that Joe creates by working with intermediaries? A) financial support B) fast service
C) scale of operation
D) working relationships with foreign distributors E) promotional assistance Answer: C Diff: 2 Page Ref: 339 Skill: Concept Objective: 12-1
9) From the economic system's point of view, the role of marketing intermediaries is to transform the assortment of products made by producers into the assortment of products wanted by ________.
A) channel members B) distributors C) consumers D) manufacturers E) marketers Answer: C Diff: 2 Page Ref: 340 Skill: Concept Objective: 12-1
10) Producers benefit from using intermediaries because they ________. A) offer greater efficiency in making goods available to target markets B) bring a fresh point of view to strategy development C) eliminate risk
D) are generally backlogged with orders
E) refuse to store products for longer than a few days Answer: A Diff: 3 Page Ref: 339 Skill: Concept Objective: 12-1
11) Intermediaries play an important role in matching ________. A) dealer with customer B) supply and demand C) product to region
D) manufacturer to product E) information and promotion Answer: B Diff: 2 Page Ref: 340 Skill: Concept Objective: 12-1
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12) Channel members add value by bridging the major gaps of ________ that separate goods and services from those who would use them. A) time, place, and form
B) place, possession, and form C) time, place, and possession D) place, time, and need
E) place, need, and distribution Answer: C Diff: 2 Page Ref: 340 Skill: Concept Objective: 12-1
13) Which of the following is NOT a key function that intermediaries play in completing transactions? A) promotion B) information C) matching D) financing E) negotiation Answer: E Diff: 3 Page Ref: 340 Skill: Concept Objective: 12-1
14) Which of the following is NOT a key function that intermediaries play in helping to fulfill a completed transaction? A) physical distribution B) promotion C) financing D) risk taking E) storing goods Answer: B Diff: 3 Page Ref: 340 Skill: Concept Objective: 12-2
15) In marketing terms, we say that the number of intermediary levels indicates the ________ of a channel. A) depth
B) complexity C) involvement D) length E) width Answer: D Diff: 1 Page Ref: 341 Skill: Concept Objective: 12-1
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16) To a producer of goods, a greater number of channel levels means ________ and greater channel complexity.
A) less distance between producer and end consumer B) less control
C) more potential ideas D) higher taxes
E) fewer channel partners Answer: B Diff: 2 Page Ref: 341 Skill: Concept Objective: 12-1
17) All of the institutions in a channel are connected by various flows. These include physical flow, flow of ownership, payment flow, information flow, and ________ flow. A) promotion B) acquisition C) customer
D) return product E) by-product Answer: A Diff: 3 Page Ref: 341 AACSB: Communication Skill: Concept Objective: 12-1
18) A distribution channel is more than a collection of firms connected by various flows; it is a(n) ________ in which people and companies interact to accomplish individual, company, and channel goals.
A) added value chain
B) complex behavioral system C) corporate marketing system D) vertical marketing system E) multichannel system Answer: B Diff: 2 Page Ref: 342 AACSB: Communication Skill: Concept Objective: 12-2
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