تسويق شابتر 15a

Chapter 14aMarketing Channels and Supply-Chain Management
ESSAY
1. How do marketing channel decisions influence the rest of the marketing mix?
ANS:
Answer not provided.
PTS: 1 DIF: Moderate
OBJ: 14-01 Describe the foundations of supply-chain management.
NAT: AACSB: Analytic | MKTG: Marketing Plan MSC: Knowledge
2. What is a marketing intermediary, and what are the activities that marketing intermediaries perform?
ANS:
PTS: 1 DIF: Easy

OBJ: 14-02 Explore the role and significance of marketing channels and supply chains.
NAT: AACSB: Communication | MKTG: Distribution MSC: Knowledge
3. What are the three types of utility that marketing channels create, and what do they involve?
ANS:
PTS: 1 DIF: Easy

4. How do marketing channels increase efficiency in exchange situations?
ANS:
PTS: 1 DIF: Difficult

NAT: AACSB: Analytic | MKTG: Strategy | MKTG: Distribution
MSC: Knowledge
5. Wholesalers are often criticized for being inefficient and for causing consumers to pay higher prices
than they would if there were no wholesalers. Discuss.
ANS:

NAT: AACSB: Analytic | MKTG: Distribution MSC: Knowledge
6. What is supply chain management? How can it help marketing channel members?
ANS:
PTS: 1 DIF: Easy

7. What are the key tasks in supply chain management? How does each of these facilitate supply chain
management?
ANS:
PTS: 1 DIF: Easy

8. What advantages do industrial distributors offer? What are some of the disadvantages of using
industrial distributors?
ANS:
PTS: 1 DIF: Moderate OBJ: 14-03 Identify types of marketing channels.

9. Under what circumstances is selective distribution a desirable level of market coverage?
ANS:
PTS: 1 DIF: Moderate OBJ: 14-05 Identify the intensity of market coverage.
MSC: Knowledge
10. Discuss channel cooperation and conflict. How might each one affect distribution channel functions?
ANS:

OBJ: 14-06 Examine strategic issues in marketing channels, including leadership, cooperation, and
conflict. NAT: AACSB: Analytic | MKTG: Distribution
MSC: Knowledge
11. Discuss the advantages and disadvantages of channel integration. Who benefits from channel
integration?
ANS:

conflict. NAT: AACSB: Analytic | MKTG: Strategy | MKTG: Distribution
MSC: Knowledge
12. Compare and contrast horizontal and vertical channel integration.
ANS:
PTS: 1 DIF: Easy

conflict. NAT: AACSB: Communication | MKTG: Distribution
MSC: Knowledge
13. Compare and contrast the three major levels of market coverage.
ANS:
PTS: 1 DIF: Easy OBJ: 14-05 Identify the intensity of market coverage.
14. Describe the three forms of vertical marketing systems.
ANS:
PTS: 1 DIF: Easy

MSC: Knowledge
15. Discuss the importance of order processing in the physical distribution system.
ANS:

OBJ: 14-07 Examine physical distribution as a part of supply-chain management.
16. Analyze the total-cost approach to physical distribution.
ANS:

17. Explain how electronic data interchange (EDI) and just-in-time (JIT) inventory management might be
used in combination to improve physical distribution effectiveness and efficiency.
ANS:
18. How are materials handling techniques important in efficient warehouse operations?
ANS:

NAT: AACSB: Analytic | MKTG: Product | MKTG: Distribution
MSC: Knowledge
19. Why is the choice of warehouse facilities an important strategic consideration?
ANS:

MSC: Knowledge
20. Identify and describe the criteria used for selecting transportation modes.
ANS:
PTS: 1 DIF: Easy

21. Discuss how the strategic importance of physical distribution is evident in each element of the
marketing mix.
ANS:

NAT: AACSB: Reflective Thinking | MKTG: Distribution | MKTG: Marketing Plan
MSC: Knowledge
22. Explain the legal ramifications of attempts to control distribution functions.
ANS:
PTS: 1 DIF: Moderate OBJ: 14-08 Explore legal issues in channel management.
NAT: AACSB: Communication | MKTG: Strategy | MKTG: Distribution
MSC: Knowledge
MULTIPLE CHOICE
23. Long-term partnerships among channel members working together to reduce inefficiencies, costs, and
redundancies in the entire marketing channel is called
a. supply chain management.
b. vertical channel integration.
c. industrial management.
d. industrial distribution.
e. marketing management.
ANS: A PTS: 1 DIF: Easy
24. The Home Depot is trying to reduce transportation, information management, and administrative costs.
To accomplish this goal, channel members need to
a. work independently.
b. avoid cooperation due to antitrust considerations.
c. work with competitors and share information.
d. increase competition among channel members.
e. cooperate and accommodate one another's needs.
ANS: E PTS: 1 DIF: Easy
MSC: Application
25. The supply chain includes

a. producers, wholesalers, and retailers.
b. suppliers, producers, intermediaries, and customers.
c. suppliers and suppliers' suppliers.
d. all entities that facilitate product distribution.
e. buyers, seller, marketing intermediaries, and agents.
ANS: D PTS: 1 DIF: Easy
26. All members of the supply chain should determine their position in the chain, identify their partners
and their roles, and establish partnerships whose focus is
a. shifting costs to suppliers.
b. maximizing costs.
c. maximizing technology implementation.
d. cooperation with competitors.
e. customer relationships.
ANS: E PTS: 1 DIF: Moderate
MSC: Comprehension
27. Wal-Mart is working with its suppliers, using tools such as electronic billing, purchase order
verification, and bar code technology, to integrate data used to improve overall performance. This is an
example of
a. supply chain management.
b. a vertical marketing system.
c. a horizontal marketing system.
d. channel conflict.
e. dual distribution.
ANS: A PTS: 1 DIF: Moderate
MSC: Application
28. A group of organizations and individuals that directs the flow of products from producers to the
ultimate consumers is called a
a. free trade association
b. marketing channel
c. channel of suppliers
d. production line-up
e. chain of retailers
ANS: B PTS: 1 DIF: Easy
29. A channel of distribution is defined as a group of individuals and organizations that

a. consumes about one-half of every dollar spent on products in the United States.
b. directs the flow of products from producers to customers.
c. links producers to other marketing intermediaries.
d. takes title to products and resells them.
e. manages transportation and warehousing functions.
NAT: AACSB: Communication | MKTG: Distribution MSC: Comprehension
30. The driving force behind marketing channel decisions should be

a. convenience.
b. cost reduction.
c. environmental concerns.
d. customer satisfaction.
e. quality.
NAT: AACSB: Communication | MKTG: Strategy | MKTG: Distribution
MSC: Knowledge
31. What links producers to consumers through the purchase and reselling of products or contractual
agreements?
a. Marketing intermediaries
b. Distributors
c. Suppliers
d. Middle marketers
e. Marketing channels
32. Most marketing channels have marketing intermediaries. A marketing intermediary's role is to
a. link wholesalers to other wholesalers.
b. link producers to other middlemen or to consumers.
c. always sell products to wholesalers.
d. not take title to products.
e. always sell products to retailers.
33. Channel decisions are important to marketers mostly because

a. they are relatively flexible to change quickly.
b. consumers value reasonable prices delivered through marketing channels.
c. they dictate what promotional strategies companies should use.
d. many businesses are marketing intermediaries.
e. they involve long-term commitments and affect customer accessibility.
MSC: Knowledge
34. If Nokia decides to make changes in its marketing channels, the strategic significance is that channel
decisions are
a. long-term commitments.
b. short-term commitments.
c. easier to change than prices.
d. easier to change than promotion.
e. impossible to change.
MSC: Application
35. Having products available when the customer wants them is called
a. place utility.
b. time utility.
c. availability.
d. possession utility.
e. chronavailability.
36. Marketing channels create three types of utility for consumers including
a. place, time, and possession.
b. location, availability, and suitability.
c. time, location, and promotion.
d. retailer, wholesaler, and producer.
e. position, possession, and place.
37. Possession utility is best described as

a. products being available in places where the customers wish to purchase them.
b. the customer having access to the product to use now or store and use later.
c. having a company's products available when a customer needs them.
d. being able to legally own a product despite restrictions on trade.
e. getting the products to the consumers in as short of time as possible for ownership.
ANS: B PTS: 1 DIF: Moderate
38. Consumers receive the benefits of place utility when

a. they have to travel excessively to obtain products they want.
b. retailers remain open 24 hours a day.
c. they can stock up on products they need but not use them right away.
d. they make purchases with credit and debit cards.
e. products are available in locations where consumers want to buy them.
39. In a simple economy of five producers and five consumers, there would be ____ transactions possible
without an intermediary and ____ transactions possible with one intermediary.
a. ten; twenty-five
b. thirty; ten
c. twenty-five; fifteen
d. sixteen; eight
e. twenty-five; ten
40. Eliminating a wholesaler from a marketing channel will

a. cut costs and lower prices.
b. not eliminate the functions performed by that wholesaler.
c. eliminate the functions performed by that wholesaler.
d. lead to lower costs but higher prices.
e. reduce channel conflict.
ANS: B PTS: 1 DIF: Difficult
41. When three buyers purchase the products of three producers, nine transactions are required. If one
intermediary serves both producers and buyers, the number of possible transactions is
a. fifteen.
b. five.
c. eighteen.
d. six.
e. twenty.
NAT: AACSB: Analytic | MKTG: Distribution MSC: Comprehension
42. Without wholesalers and other intermediaries,

a. most products would be much less expensive because fewer companies would be handling
the product.
b. products would be cheaper because the functions of intermediaries would be eliminated.
c. products would likely be more expensive due to the use of less efficient channel members.
d. products would never be able to make it to the ultimate consumer at any price without
passing through intermediaries.
e. many products would be more expensive because retailers would expect more profit.
ANS: C PTS: 1 DIF: Moderate
NAT: AACSB: Analytic | MKTG: Distribution | MKTG: Pricing
MSC: Knowledge
43. Customers who purchase computer laptops from manufacturer websites are acquiring products through
a. the most efficient channel of distribution.
b. the most common type of marketing channel.
c. a direct-marketing channel.
d. a business-to-business channel of distribution.
e. an indirect-marketing channel.
ANS: C PTS: 1 DIF: Easy
OBJ: 14-03 Identify types of marketing channels.
NAT: AACSB: Analytic | MKTG: Distribution MSC: Application
44. Select Comfort, a producer of adjustable air mattresses, sells most of its products through direct mail
sales and Internet sales. This channel would be classified as
a. direct distribution.
b. producer, retailer, consumer.
c. telemarketing.
d. direct-marketing.
e. indirect marketing.
45. Many producers selling on the Internet are using

a. several intermediaries.
b. complex marketing channels.
c. Internet wholesalers, retailers, and agents.
d. supply chain channels.
e. direct-marketing channels.
46. After direct-marketing, the next slightly longer marketing channel adds a(n)
a. retailer.
b. producer.
c. wholesaler.
d. agent.
e. consumer.
47. When Sophie buys organic produce for her household using a channel with only one intermediary, that
intermediary is classified as a
a. retailer.
b. wholesaler.
c. broker.
d. functional middleman.
e. producer.
48. Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following
channels?
a. Producer, industrial distributors, retailers, consumers
b. Producer, consumers
c. Producer, wholesalers, retailers, consumers
d. Producer, retailers, consumers
e. Producer, agents, wholesalers, retailers, consumers
ANS: D PTS: 1 DIF: Difficult
49. The marketing channel of producer to retailer to consumer is most likely to be used by producers of
which of the following products?
a. Chewing gum
b. Tobacco
c. Automobiles
d. Hardware
e. Saltine crackers
MSC: Application
50. Nationally distributed consumer convenience products are most likely distributed through which of the
following channels?
a. Producer, consumers
b. Producer, agents, wholesalers, retailers, consumers
c. Producer, wholesalers, consumers
d. Producer, wholesalers, retailers, consumers
e. Producer, industrial distributor, wholesalers, retailers, consumers
MSC: Application
51. Manufacturers of convenience products such as chewing gum reach customers through thousands of
retailers. What marketing channel are these manufacturers most likely to use?
a. Producer, consumer
b. Producer, wholesaler, retailer, consumer
c. Producer, wholesaler, agent, retailer, consumer
d. Producer, retailer, consumer
e. Retailer, consumer
MSC: Application
52. Which of the following is the most commonly used channel for distributing business products?
a. Producer, agents, industrial distributors, organizational buyers
b. Producer, industrial distributors, organizational buyers
c. Producer, agents, organizational buyers
d. Producer, organizational buyers
e. Industrial distributors, organizational buyers
NAT: AACSB: Reflective Thinking | MKTG: Distribution MSC: Application
53. Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) ____ channel.
a. producer-to-business buyer
b. producer-to-industrial-distributor-to-business buyer
c. producer-to-agent-to-business buyer
d. equipment
e. consumer
54. Organizational buyers are especially partial to direct marketing channels when
a. they buy cheap materials in large quantities.
b. they try a new product for the first time.
c. they are filling an order for a very important customer.
d. a modified rebuy type of decision is involved.
e. expensive and/or complex equipment is involved.
NAT: AACSB: Reflective Thinking | MKTG: Distribution MSC: Knowledge
55. Caruthers Paint Manufacturing Company buys the chemicals it needs for producing its products from a
chemical producer, Roth Chemicals. In this instance, the chemicals are being distributed to Caruthers
through which of the following types of channels?
a. Industrial distributor
b. Direct distribution
c. Retail
d. Wholesaler-sponsored
e. Producer
56. An independent business that takes title to products and carries inventories is a(n)
a. industrial distributor.
b. intermediary.
c. agency.
d. wholesaler.
e. producer.
57. Jeff Wood's company buys machine tools from large producers and sells them to several Midwestern
manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces
capital requirements for the producers. Jeff's company is an example of a(n) ____ in a distribution
channel.
a. direct distributor
b. manufacturers' agent
c. industrial distributor
d. producers' agent
e. wholesalers' agent
58. Which of the following is most likely to be a product stocked by an industrial distributor?
a. Tires
b. Exercise equipment
c. Screws
d. Countertops
e. Bananas
59. Which of the following describes a disadvantage of using industrial distributors?

a. Industrial distributors possess considerable market information.
b. Their marketing exchange relationships are very focused.
c. They are unlikely to handle bulky items or items that are slow sellers.
d. Industrial distributors sell specific brands aggressively.
e. Industrial distributors acquire title to the products and take possession.
NAT: AACSB: Reflective Thinking | MKTG: Distribution MSC: Comprehension
60. Which of the following is an advantage of using an industrial distributor?

a. These firms are easy to control because they work directly for the producers.
b. Inventory holding costs are minimized because they can store inventory very cheaply.
c. They are closer geographically to all of the producers' customers.
d. They possess a high level of technical knowledge about their products.
e. They help reduce a producer's financial burdens by extending credit to customers.
61. A producer is not likely to receive ____ from an industrial distributor.

a. selling activities in local markets
b. market information about consumers
c. aggressive promotion of its brand
d. reduced capital requirements
e. a reduced financial burden from customers
NAT: AACSB: Reflective Thinking | MKTG: Distribution | MKTG: Promotion
MSC: Knowledge
62. A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under
which of the following circumstances?
a. When the firm wants specialized personnel to follow up the work of the sales force
b. When the marketer wishes to enter a new geographic market but does not wish to expand
the existing sales force
c. When only one or two channels of distribution are available for products
d. When the sales force is large and the marketer is thinking of cutting it down
e. When customers are highly concentrated in one geographic area
NAT: AACSB: Analytic | MKTG: Distribution | MKTG: Strategy
MSC: Comprehension
63. Rob Stevens is the head of a company that produces computer software for production scheduling. The
firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is
probably using ____ to maintain contact with the firms using its products.
a. wholesalers
b. brokers
c. agents
d. merchants
e. retailers
MSC: Application
64. An independent businessperson who is paid a commission to sell complementary products of different
producers in an assigned territory without actually taking title of the merchandise is a(n)
a. sole intermediary.
b. manufacturers' agent.
c. producers' broker.
d. industrial distributor.
e. channel facilitator.
65. What is a primary difference between an industrial distributor and a manufacturers' agent?
a. A manufacturers' agent does not acquire title nor usually take possession of the products
whereas an industrial distributor does.
b. A manufacturers' agent is employed by the manufacturers while an industrial distributor is
independent.
c. An industrial distributor is employed by the manufacturers while a manufacturers' agent is
independent.
d. A manufacturers' agent rarely adds any value to the marketing channel while an industrial
distributor reduces costs significantly.
e. An industrial distributor does not form relationships with customers for repeat business
whereas a key asset of a manufacturers' agent is his knowledge of his customers.
66. Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets
ketchup for institutional use through industrial distributors and food brokers. Del Monte is using
a. dual distribution.
b. industrial distribution.
c. strategic channel alliance.
d. supply chain management.
e. an unethical marketing channel.
MSC: Application
67. Many companies use more than one marketing channel to distribute their products to the same target
market, a tactic called
a. multiple channeling.
b. strategic channel alliance.
c. intensive distribution.
d. dual distribution.
e. market splitting.
68. Gateway Computer makes computers available through its own stores, its toll-free telephone line, and
a website. This is an example of
a. dual distribution.
b. vertical integration.
c. horizontal integration.
d. tying agreements.
e. exclusive dealing.
69. Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks' coffee drink,
Frappucino, to grocery stores and other retail outlets. This is an example of
a. a strategic channel alliance.
b. exclusive distribution.
c. dual distribution.
d. horizontal channel integration.
e. channel leadership.
70. Which of the following is least likely to be a factor affecting the selection of marketing channels?
a. Customer characteristics
b. Product attributes
c. Product packaging
d. Competition
e. Environmental forces
OBJ: 14-04 Understand factors that influence marketing channel selection.
MSC: Knowledge
71. Fragile products that require special handling are more likely to be distributed through
a. longer channels.
b. shorter channels.
c. Channel D.
d. Channel H.
e. exclusive outlets.
72. When considering the best channel to use, all of the following are true with regard to larger firms
except they
a. can use an extensive product mix as a competitive tool.
b. may be better able to negotiate better deals with vendors or other channel members.
c. may have more distribution centers.
d. may have the resources to develop their own sales force.
e. may be better suited to serve customers in a particular region.
MSC: Knowledge
73. The three major levels of intensity at which a company can choose to distribute its products are ____
distribution.
a. narrow, medium, and wide
b. cooperative, conflicting, and integrated
c. intensive, extensive, and exclusive
d. selective, cooperative, and conflicting
e. exclusive, selective, and intensive
OBJ: 14-05 Identify the intensity of market coverage.
74. When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most
likely used ____ distribution.
a. horizontal
b. intensive
c. selective
d. agent
e. exclusive
MSC: Application
75. Producers of convenience products such as soft drinks, toothpaste, and breath mints are most likely to
use ____ distribution.
a. selective
b. extensive
c. intensive
d. exclusive
e. demand-based
MSC: Application
76. Candy bars and chewing gum are most likely to be distributed through ____ and ____.
a. selective distribution; multiple channels
b. intensive; dual distribution
c. strategic channel alliances; intensive
d. exclusive; a single channel
e. dual distribution; convenience channels
MSC: Application
77. Sales are most likely to have a direct relationship to product availability for products that use ____
distribution.
a. selective
b. dual
c. intensive
d. extensive
e. exclusive
78. In marketing a new line of nursery furniture for infants and small children, the Fisher Company will
most likely use ____ distribution for the products.
a. intensive
b. exclusive
c. horizontal
d. priority
e. selective
MSC: Application
79. Using only some of the available outlets to distribute a product is called
a. selective distribution.
b. intensive distribution.
c. channel conflict.
d. vertical channel integration.
e. exclusive distribution.
80. Durable goods such as television sets and DVD players generally reach their target markets through
a. intensive distribution.
b. channel cooperation.
c. direct marketing.
d. exclusive distribution.
e. selective distribution.
MSC: Knowledge
81. Product and target market characteristics usually determine the type of coverage a product receives.
For which of the following products is selective distribution most appropriate?
a. Gasoline
b. Jaguar automobiles
c. Cigarettes
d. Laundry detergent
e. Panasonic stereos
MSC: Application
82. Honey Farms is a maker of fine chocolates. The company's latest product, Fudge-Dipped Strawberries,
is the premier product in its Fudge-Dipped line. The product is very expensive and targeted to upscale
consumers. Which form of distribution would Honey Farms be likely to use for its new product?
a. Intensive
b. Selective
c. Targeted
d. Exclusive
e. Premier
ANS: D PTS: 1 DIF: Moderate
MSC: Application
83. Expensive, high-quality products that are purchased infrequently often reach consumers through
a. selective distribution.
b. highly-selective distribution.
c. sole-source retailers.
d. complex marketing channels.
e. exclusive distribution.
84. For which of the following products would exclusive distribution be most appropriate?
a. Gasoline
b. Rolls Royce automobile
c. Washing machine
d. Laundry detergent
e. Moderately priced luggage
MSC: Application
85. Because Coke is such a popular product and the company is so powerful, Coca-Cola is in a position to
exert considerable control over channel structures and the way Coke is marketed. This is an illustration
of channel ____ in the distribution channel.
a. conflict
b. leadership
c. dominance
d. cooperation
e. negotiation
conflict. NAT: AACSB: Analytic | MKTG: Distribution | MKTG: Strategy
MSC: Application
86. A single leader who controls and organizes a marketing channel is called a
a. channel champion.
b. distribution leader.
c. marketing maverick.
d. channel captain.
e. lead distributor.
conflict. NAT: AACSB: Reflective Thinking | MKTG: Distribution
MSC: Knowledge
87. Nike maintains a good deal of control over how its products are promoted, displayed, and sold.
Because of this control, Nike would be appropriately described as the channel
a. intermediary.
b. captain.
c. allocator.
d. terminator.
e. price leader.
MSC: Application
88. Few supermarkets would try to replace a national brand of baby food with their own brand. Assuming
that this is true, we have a good example of channel leadership by
a. wholesalers.
b. producers.
c. retailers.
d. agents.
e. brokers.
MSC: Application
89. When one company in a marketing channel has the ability to influence another member's goal
achievement, the company has
a. channel control.
b. channel power.
c. marketing leadership.
d. a channel captain.
e. distributive influence.
MSC: Knowledge
90. If Ralston Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable
locations, it would be
a. demonstrating sound channel leadership.
b. insisting on exclusive exposure.
c. exercising channel power.
d. minimizing channel conflict.
e. creating a coordinate system.
MSC: Application
91. Overall channel goals and individual channel member goals cannot be achieved together without
a. conflict.
b. captains.
c. leadership.
d. cooperation.
e. tying agreements.
MSC: Knowledge
92. Marketing channel members are likely to experience misunderstandings, frustration, and poorly
coordinated strategies as a result of
a. channel conflict caused by inefficient communication between channel members.
b. open communication among the channel members.
c. methods of channel coordination designed to reduce ambiguity.
d. negotiating territorial issues among regional distributors of a product.
e. allowing one member of the channel to take the role of channel captain.
MSC: Knowledge
93. When produce companies such as Dole Tomatoes bypass wholesalers and sell directly to retailers, it is
likely to create channel ____ between Dole and these wholesalers.
a. conflict
b. cooperation
c. leadership
d. integration
e. flows
MSC: Application
94. Goodyear allows companies like Sears and Discount Tire to distribute and discount its tires. This
action significantly increases the possibility of channel ____ with independent Goodyear dealers.
a. understanding
b. power
c. leadership
d. communication
e. conflict
MSC: Application
95. If a wholesaler continually emphasizes and promotes one company's products over a competing
company's products, ____ is likely to result.
a. channel cooperation
b. vertical channel integration
c. channel conflict
d. horizontal channel integration
e. channel leadership.
MSC: Comprehension
96. Vertical channel integration

a. results in two or more different management teams for each member of the channel.
b. is made possible when a large corporation divests itself of smaller subsidiaries.
c. is a shift back to the conventional channel of distribution.
d. combines institutions at the same level of operation.
e. is made possible by purchasing the operations of a link in the channel.
MSC: Knowledge
97. When a single channel member manages an integrated marketing channel to achieve low-cost, efficient
distribution for satisfying target markets, ____ exists.
a. a vertical marketing system
b. horizontal channel integration
c. channel power
d. channel cooperation
e. extensive distribution
MSC: Knowledge
98. Warner Bros. sells cookie jars, puzzles, photo albums, and other items featuring its popular cartoon
characters directly through its own retail outlets. This is an example of
a. channel leadership.
b. channel cooperation.
e. vertical channel integration.
ANS: E PTS: 1 DIF: Difficult
MSC: Application
99. The reasons a vertically integrated channel can be more effective against competition is because of all
of the following except
a. the consolidation of power.
b. tightly controlled and bureaucratic management style.
c. the ability to inhibit competitors.
d. the sharing of responsibilities and information.
e. increased bargaining power.
MSC: Knowledge
100. Bennetton, a leading manufacturer of knitwear in Italy, expanded its operations to include retail outlets
in the United States and South America. This type of integration is called
a. horizontal.
b. vertical.
c. multilevel.
d. retail.
e. merchandising.
MSC: Application
101. When Benetton, the Italian sportswear designer and manufacturer, decided to open its own specialty
shops to sell its merchandise, the firm was engaging in
a. channel repetition.
b. vertical channel integration.
e. channel expansion.
MSC: Application
102. The Limited, which produces and retails clothing products in a coordinated channel, is an example of
a(n)
a. administered vertical marketing system.
b. conventional marketing channel.
c. channel network.
d. contractual marketing channel.
e. corporate vertical marketing system.
MSC: Application
103. When channel members are linked by legal agreements that specify each member's rights and
responsibilities, ____ exists.
a. horizontal channel integration
b. an administered VMS
c. a corporate VMS
d. a channel captain
e. a contractual VMS
MSC: Knowledge
104. In an administered vertical marketing system (VMS), interorganizational relationships are

a. achieved by informal coordination.
b. formalized through contracts.
c. combined under the ownership of a single organization.
d. guided by legal agreements.
e. achieved by clearly defining the obligations and rights of all channel members.
MSC: Knowledge
105. In an administered VMS, informal coordination brings about a high level of interorganizational
management. Nonetheless,
a. decision making does not take into account the goals of the system.
b. the channel members do not remain autonomous.
c. the decision making is not coordinated.
d. the channel members remain autonomous.
e. the goals of the individual firms are not congruent with the goals of the system.
MSC: Comprehension
106. In the distribution channel for Domino's Pizza, channel members are linked by legal agreements that
spell out the obligations and rights of each member. This is an example of a(n) ____ vertical marketing
system.
a. contractual
b. administered
c. corporate
d. negotiated
e. institutional
MSC: Application
107. The Wicks 'N Sticks candle and gift marketing organization has a(n) ____ vertical marketing system
arrangement with its franchised retail store operations.
a. corporate
b. administered
c. negotiated
d. contractual
e. horizontal
MSC: Application
108. Select the greatest advantage of horizontal channel integration.

a. The flexibility of the channel is decreased.
b. The markets are more heterogeneous.
c. The expanded number of units is coordinated.
d. Efficiencies in advertising, marketing research, and purchasing are increased.
e. Planning and research are increased to cope with increased competition.
MSC: Knowledge
109. To expand the number of its retail outlets in the Washington, D.C., area, the Dress Barn bought out a
small chain of women's apparel stores in northern Virginia. This type of integration is called
a. vertical.
b. retail.
c. horizontal.
d. backward.
e. forward.
MSC: Application
110. Order processing, inventory management, materials handling, warehousing, and transportation are the
activities that define
a. wholesaling.
b. retailing.
c. physical distribution.
d. channel management.
e. drop shipping.
111. The notion of physical distribution is

a. speed of delivery.
b. used only by manufacturers.
c. the movement of products from producers to end users.
d. primarily the wholesaler's responsibility.
e. an assessment of distribution costs.
112. The contracting of physical distribution tasks to third parties who do not have managerial authority
within the marketing channel is known as
a. illegal.
b. logistics.
c. warehousing.
d. wholesaling.
e. outsourcing.
113. If a firm decides to contract its physical distribution functions to third parties that have no managerial
authority within the marketing channel, it is using
a. outsourcing.
b. sole-sourcing.
c. logistics.
d. wholesaling.
e. distribution services.
114. Physical distribution activities may be performed by a producer, wholesaler, retailer or

a. not performed at all.
b. the customer.
c. investors in any of the previous three.
d. solely through technology.
e. they may be outsourced.
115. As her Internet quilt and bed linen business grew, Danielle could no longer perform all the distribution
activities, so she hired a shipper and an information technology firm to assist with these functions.
Danielle is using ____ for physical distribution for her business.
a. producers
b. wholesalers
c. retailers
d. selling agents
e. outsourcing
MSC: Application
116. The main objective of physical distribution should be to

a. decrease costs while increasing market coverage.
b. increase service and market coverage.
c. decrease costs while increasing service.
d. increase market coverage and channel power.
e. balance costs and market coverage.
117. The best way to reduce overall distribution costs is to

a. use a total-cost approach to analyze and evaluate the entire system.
b. minimize the costs associated with materials handling and transportation.
c. reduce the number of distribution functions that are necessary.
d. find the cheapest price for each function and use them to create the system.
e. lower the service standards that the company has.
MSC: Knowledge
118. According to the text, physical distribution cost tradeoffs enable firms to
a. resolve pricing conflicts among channel partners.
b. minimize risk during test marketing of new products.
c. reduce costs of all distribution functions simultaneously.
d. resolve pricing conflicts within industry sectors.
e. utilize resources for greatest cost-effectiveness.
MSC: Comprehension
119. At the annual managers' planning conference, Jackie Conrad asks the other managers to consider her
proposal to increase the quantity of inventory to a five-week supply in order to increase the percentage
of completely filled customer orders from 85 percent to 90 percent. She states that she is willing to
trade off the ____ incurred for the positive effect of better customer service.
a. lower response time
b. higher warehousing costs
c. higher transportation costs
d. higher order processing costs
e. higher performance levels
MSC: Application
120. An important goal of physical distribution is reducing the time it takes to complete
a. inventory management.
b. outsourcing evaluation.
c. electronic data interchange.
d. order processing.
e. cycle time.
121. The United States Postal Service works hard to get priority mail from the sender to the recipient as
quickly as possible in order to compete with companies such as UPS and FedEx. The postal service
works to reduce
a. cycle time.
b. order processing.
c. turn-around.
d. shipping time.
e. transportation.
122. A goal of physical distribution is to reduce ____ or how long it takes to complete a process.
a. time standards
b. processing time
c. production
d. throughput measure
e. cycle time
123. Order processing is defined as

a. the receipt and transmission of sales order information.
b. the second stage in a physical distribution system.
c. the four main tasks.
d. the same as order handling.
e. electronic processing of information.
124. What are the three primary tasks of order processing?

a. Order receipt, order delivery, order follow-up
b. Order handling, inventory management, order delivery
c. Materials handling, warehousing, order delivery
d. Order handling, order entry, order delivery
e. Order receipt, order checking, order delivery
125. By receiving orders online instead of through a paper-based ordering system, Barnes and Nobles has
been able to save time and money on
a. electronic data interchange.
b. order entry.
c. inventory management.
d. order delivery.
e. order handling.
MSC: Application
126. The order-processing task that involves verifying product availability, checking prices and customer
credit ratings, and filling orders is
a. warehousing.
b. order handling.
c. information processing.
d. materials handling.
e. order entry.
127. Order handling involves all of the following activities except that the
a. credit department approves the purchase.
b. order is transmitted to the warehouse.
c. availability of product is verified.
d. warehouse is instructed to fill the order.
e. customer places a purchase order.
128. A commonly used computerized means of integrating order processing with production, inventory,
accounting, and transportation is
a. web-based inventory management.
b. just-in-time.
c. electronic data interchange.
d. universal product codes.
e. activity based management.
129. Nathan is trying to decide which shipping company to use to transport his custom-made furniture to
customers. Nathan is facing a decision about
a. order entry.
b. order completion.
c. just-in-time.
d. order handling.
e. order delivery.
130. Because of the significant investment many companies have in the products they sell to customers,
they must develop and maintain adequate varieties of products to meet their customers' needs. This is
called
a. just-in-time.
b. order processing.
c. inventory management.
d. merchandise stocking.
e. logistical management.
131. Greg Braddock is a physical distribution manager. He is currently developing and maintaining
assortments of products that are adequate for customer demand. In which stage in the physical
distribution system is Greg currently involved?
a. Order processing
b. Materials handling
c. Inventory management
d. Transportation
e. Warehousing
132. The result of an inventory stockout is usually an increase in

a. inventory costs.
b. lost sales.
c. net profit.
d. customers.
e. prices.
133. Anna Wren, sales manager for Pacific Lumber, tells Jason Peoples, the firm's inventory manager, that
the firm's failure to have adequate supplies of pressure-treated lumber on hand has cost the firm
$175,000 in lost sales. This figure represents which of the following inventory management costs?
a. Carrying
b. Replenishment
c. Stockout
d. Safety stock
e. Reorder
MSC: Application
134. What is the reorder point if the usage rate is 10 units per day, the order lead time is five days, and the
safety stock is 30?
a. 50
b. 150
c. 80
d. 200
e. 400
135. A manufacturer has decided to improve its inventory management by maintaining low inventory levels
and waiting to purchase materials until right before they are needed in production. This inventory
management technique is called
a. just-in-time (JIT).
b. time management.
c. inventory minimization.
d. economic order quantity.
e. reorder point maximization.
136. Eric is concerned about not having enough air conditioning units in inventory during June, July, and
August so he keeps extra inventory to guard against stockouts during this critical period. Eric is
keeping
a. short order lead times.
b. just-in-time inventory.
c. a controlled usage rate.
d. safety stock.
e. excessive inventory.
MSC: Application
137. All of the following are concepts used in a just-in-time inventory management system except
a. supplies arrive just as they are needed.
b. safety stock is kept to reduce stockouts.
c. much waste is eliminated.
d. purchases are made in small quantities.
e. purchases are made frequently.
138. Justin Abercrombie attends a seminar on just-in-time inventory management. Excited about the idea,
he returns to his office at Atlanta Auto Supply to start designing such an inventory system. Which of
the following steps must Justin take as he institutes this change?
a. Increase safety stock
b. Raise the reorder point
c. Reduce customer service standard
d. Increase order frequency
e. Reduce estimates of inventory turnover rate
139. What is the primary determinant in deciding how materials will be handled?
a. Unit loading
b. Containerization
c. Customer preference
d. Cost reduction
e. Product characteristics
NAT: AACSB: Analytic | MKTG: Distribution | MKTG: Product
MSC: Knowledge
140. Johnson Controls hires a consultant to assess its materials handling procedures. The consultant
recommends the implementation of ____ if they want easier movement of items between internal
destinations in the warehouse.
a. unit loading
b. piggybacking
c. containerization
d. inventory management
e. priority transportation
ANS: A PTS: 1 DIF: Difficult
141. Federal Mogul places several boxes of products or materials on pallets in order to load them efficiently
using forklifts. This system of materials handling is called
a. warehousing.
b. containerization.
c. group storage.
d. unit loading.
e. mechanized handling.
142. Fansteel manufactures parts used in jet engines, which it sells to companies such as Boeing. When
shipping products to Boeing, Fansteel seals the parts in 8' 8' 40' boxes for shipping to decrease loss
and damage. This method of materials handling is
a. unit loading.
b. containerization.
c. freight forwarding.
d. unitized shipping.
e. bonded packaging.
MSC: Application
143. Managers and consultants at Colgate-Palmolive are meeting to discuss better ways to package its
products to reduce damage and make loading more efficient. The primary function they are trying to
improve is
a. warehousing.
b. inventory management.
c. materials handling.
d. cycle time.
e. containerization.
144. Which of the following physical distribution functions involves design and operation of facilities for
storing goods?
a. Order processing
b. Materials handling
c. Transportation
d. Warehousing
e. Inventory management
145. What function of physical distribution enables companies to compensate for dissimilar production and
consumption rates and stabilize prices and availability of seasonal items?
a. Materials handling
b. Warehousing
c. Transportation
d. Inventory management
e. Order processing
NAT: AACSB: Reflective Thinking | MKTG: Distribution | MKTG: Pricing
MSC: Knowledge
146. Morgan Steel Company leases a warehouse in Jacksonville, Alabama to serve Deep South markets that
were large enough and stable enough to make a long-term commitment to fixed facilities. This is a
a. flexible warehouse.
b. dispatching center.
c. distribution center.
d. private warehouse.
e. public warehouse.
147. When companies operate their own facilities for storing and shipping products, these facilities are
known as
a. distribution centers.
b. product storehouses.
c. public warehouses.
d. megawarehouses.
e. private warehouses.
148. Air-Tech management learns that last month's production run of heaters at its Newark plant is
defective and announces a recall of the specific models produced. To handle the large number of
products it expects to receive for replacement of the defective thermostats, Air-Tech will probably
need to add a ____ to its distribution network.
a. distribution center
b. private warehouse
c. dispatching shipment system
d. public warehouse
e. materials handling system
149. A public warehouse is a

a. business that leases storage space and related facilities for distribution to other firms.
b. large, centralized warehouse that focuses on moving rather than storing goods.
c. company that provides a complete array of logistical services for businesses.
d. company-operated facility for storing and shipping products.
e. warehouse used to store the personal property of many different customers.
150. Garcia Wholesale Plumbing has seen its sales in the Southeast triple in the past two years. Materials
handling director Barb Peterson announces plans to the board for an Atlanta facility that will combine
shipments received from Garcia's 25 suppliers for nearly immediate shipment to plumbing stores and
contractors in the region. This new facility would be best classified as which of the following?
a. Sales office
b. Public warehouse
c. Field public warehouse
d. Distribution center
e. Bonded warehouse
151. What is the most expensive physical distribution function?

a. Warehousing
b. Order processing
c. Inventory management
d. Transportation
e. Materials handling
152. ____ adds time and place utility to a product by moving it from where it is made to where it is
purchased and used.
a. Warehousing
b. Containerization
c. Distribution
d. Materials handling
e. Transportation
153. Which major mode of freight transportation provides the most flexible schedules and routes?
a. Trucks
b. Waterways
c. Airways
d. Pipelines
e. Railroads
154. Which mode of transportation hauls more freight than any other?
a. Railroads
b. Waterways
c. Pipelines
d. Trucks
e. Airways
155. Magnetic Springs wants to ship its bottled water with the most flexible schedules and routes of all
transportation modes. Magnetic Springs should use ____ as its transportation mode.
a. railroads
b. waterways
c. pipelines
d. trucks
e. airways
MSC: Application
156. If a microchip in a computer in New York failed, which method of transportation would be most
appropriate to use to replace the chip immediately if one could get the new chip only from Silicon
Valley, California?
a. Pipeline
b. Airways
c. Waterways
d. Truck
e. Railroad
157. Kolder Inc. is using a new just-in-time inventory management system that requires ordering smaller
quantities of parts more frequently. The success of its business depends significantly on receiving
these parts very quickly, so like many other companies using just-in-time, Kolder Inc. is relying more
on the ____ mode of transportation despite its expense.
a. railroad
b. pipeline
c. airway
d. truck
e. waterway
MSC: Application
158. The Diamond Salt Company needs to transport 20 tons of salt from Baton Rouge, Louisiana, to
Cincinnati. Which of the following methods would be the cheapest for transporting this cargo?
a. Pipelines
b. Waterways
c. Trucks
d. Airways
e. Railroads
159. Assuming everything else equal, the most cost-efficient way for British Petroleum to transport crude
oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be
a. waterways.
b. airways.
c. tanker trucks.
d. railroads.
e. pipelines.
160. ____ is the combining and coordinating of two or more modes of transportation to take advantage of
benefits offered by each of the different types of carriers.
a. Intermodal transportation
b. Physical distribution
c. Containerized movement
d. Efficient transportation
e. Freight forwarding
161. Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping
through
a. transit time.
b. warehousing.
c. packaging.
d. containerization.
e. lot sizes.
162. What two modes of transportation are used when containers are shipped by piggyback?
a. Railroads and airways
b. Trucks and airways
c. Pipelines and trucks
d. Waterways and railroads
e. Railroads and trucks
163. Which of the following organizations consolidates shipments from several firms into more efficient lot
sizes?
a. Freight forwarder
b. Forwarding agency
c. Transporter
d. Special transportation company
e. Intermodal shipping company
164. Freight transportation companies that offer several different shipment methods are called
a. megacarriers.
b. intermodal transporters.
c. freight forwarders.
d. shipping experts.
e. superfreighters.
165. Using a freight forwarder usually

a. is not economical for a small firm.
b. increases transit time and shipping costs.
c. increases transit time and sometimes lowers shipping costs.
d. lowers shipping costs for a large firm.
e. reduces transit time.
166. Dual distribution is characterized as

a. illegal under the Robinson-Patman Act.
b. distribution channels that typically carry exclusive products, such as Rolex watches.
c. marketing environments that are highly competitive.
d. manufacturers that forbid an intermediary to carry products of competing producers.
e. distribution of one manufacturer's product through two or more different channel
structures.
OBJ: 14-08 Explore legal issues in channel management.
167. In which of the following situations is dual distribution likely to be determined illegal?
a. A manufacturer sells its product online and through independent and company-owned
retail outlets.
b. A manufacturer opens its own retail outlets across the country and sells its entire line of
products.
c. A producer uses company outlets to dominate independent retailers that carry its products.
d. A producer sells its products both to wholesalers who deal with small and medium-sized
retailers and directly to retailers.
e. A producer charges higher prices at its company-owned retail outlets than independent
retailers charge for the same products.
168. Ralph Lauren sells Polo products through department stores as well as in its own specialty shops. The
designer uses ____ as a channel strategy.
a. channel extension
b. intermediary exclusion
c. broker utilization
d. dual distribution
e. channel diversification
169. The main reason a manufacturer will prohibit intermediaries from selling its products outside
designated sales territories is to
a. tighten its control over distribution of its products.
b. discourage competition from other manufacturers.
c. incorporate selective distribution.
d. contain distribution costs.
e. punish intermediaries for past behavior.
170. Tying agreements occur when a

a. producer distributes the same product through two or more different channels.
b. manufacturer forbids an intermediary to carry products of competing manufacturers.
c. supplier furnishes a product to a channel member with the stipulation that the channel
member must purchase other products as well.
d. producer refuses to deal to channel members that seem unethical or illegitimate.
e. manufacturer prohibits intermediaries from selling its products outside designated sales
territories.
171. An arrangement where a producer forbids an intermediary to carry products made by competing
manufacturers is called
a. exclusive distribution.
b. a tying agreement.
c. refusal to deal.
d. contractual VMS.
172. Dell Computers is a nationally recognized manufacturer of computers for the small business and home
markets. If Dell were to order one of its wholesalers not to carry any computer products other than
those made by Dell, this arrangement would be called
a. a tying contract.
b. refusal to deal.
c. a restricted sales territory.
d. a restricted channel.
MSC: Application
173. If an intermediary wants to carry Tide detergent and Procter & Gamble agrees only if the supplier
purchases P&G's entire line of detergents as well, the company is engaging in which of the following
channel management practices?
a. Exclusive dealing
b. Dual distribution
c. Tying agreement
d. Refusal to deal
e. Restricted sales territories
174. If Anheuser-Busch refused to allow Jackson Distributing to carry its product if the distributor also
carried Miller Brewing products, the company would have been engaging in which of the following
channel management practices?
a. Exclusive dealing
b. Dual distribution
c. Tying contacts
d. Refusal to deal
e. Restricted sales territories
ANS: A PTS: 1 DIF: Difficult
Scenario 15.1
Use the following to answer the questions.
Liz Claiborne, Inc. markets several different brands, under their own Claiborne name label, as well as
others. Their primary brands, such as Liz Claiborne, Liz & Co, and DKNY, are sold to wholesalers.
These brands are then available through retail department stores such as Kohl's and Macy's. Their
wholesale-based brands division is positioned as customer-focused and cost-efficient. Their premium
brands division includes labels such as Kate Spade, Juicy Couture, and Mexx. These premium brands
are sold through stores that the Claiborne company owns.
175. Refer to Scenario 15.1. Liz Claiborne, Inc. uses which type of channel of distribution for its premium
brands?
a. A short, direct channel
b. A long, direct channel
c. Dual distribution
d. Horizontal integration
e. Intensive distribution
176. Refer to Scenario 15.1. The Liz & Co brand is sold only at J.C. Penney's. This is an example of ____
distribution.
a. selective
b. routine
c. horizontal
d. intensive
e. exclusive
177. Refer to Scenario 15.1. If Liz Claiborne were to distribute their Kate Spade brand through its
company-owned stores and through wholesalers, to major department stores, then Liz Claiborne would
be using ____ distribution.
a. intensive
b. vertical
c. horizontal
d. dual
e. exclusive
178. Refer to Scenario 15.1. Which of the following is most likely the primary factor Liz Claiborne, Inc.
used when selecting the marketing channel for its Juicy Couture brand?
a. characteristics of the intermediaries
b. product attributes
c. type of organization
d. marketing environmental forces
e. competition
NAT: AACSB: Reflective Thinking | MKTG: Strategy | MKTG: Distribution
MSC: Application
Scenario 15.2
Use the following to answer the questions.
Star Supplies, Inc. manufactures commercial-grade floor cleaners, such as vacuums and floor
polishers. The firm has recently begun manufacturing other janitorial-related product lines, such as
paper products and chemical cleaners. Star Supplies distributes its products in two ways. It sells its
vacuum, floor polisher, and janitorial supply products to an independent business that takes title to the
products and then sells them to various small businesses throughout the region. Also, Star has a list of
large businesses that it distributes to directly, on an as-needed basis. These businesses keep very little
inventory and purchase janitorial supplies in small quantities. Recently, Star has decided to add new
two new service product linespaper shredding and a uniform rental service. Clint Rodriguez, the
marketing manager, is conducting a meeting to discuss the ways in which Star can strategically
manage these new businesses. Star has the choice of marketing the paper shredding service to their
large business clients, by picking up the paper as they drop off the other janitorial supplies, or they can
buy a small paper shredding business and market to both large and small business customers. With
regard to the uniform rental service, Star can either pick up and deliver the uniforms to the small
businesses themselves, or contract that out to a third party.
179. Refer to Scenario 15.2. Star Supplies, Inc. is most likely using which of the following to market its
vacuum, floor polisher, and janitorial supplies to its small business customers?
a. Wholesalers
b. Retailers
c. Merchants
d. Industrial distributors
e. Manufacturers' agents
180. Refer to Scenario 15.2. Currently, Star is using the ____ approach to distributing its janitorial supplies
to its large customers.
a. intensive
b. just-in-time
c. segmented
d. outsourcing
e. exclusive
181. Refer to Scenario 15.2. When Clint suggested that Star consider purchasing a paper shredding business
and then offer the service to its large and small business customers, he was suggesting a method called
____, where Star would be the ____.
a. horizontal integration; channel manager
b. horizontal integration; channel captain
c. vertical integration; channel captain
d. outsourcing; channel manager
e. outsourcing; channel captain
182. Refer to Scenario 15.2. Clint's suggestion for the uniform rental service was either picking up and
delivering the uniforms themselves, or contracting this to a third party. If Star decides to pick up and
deliver the uniforms with its own trucks, this is an example of a(n) ____ channel. If Star contracts this
action to a third party, it is called ____.
a. long; industrial distribution
b. direct; industrial distribution
c. long; outsourcing
d. direct; outsourcing
e. exclusive; outsourcing

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Chapter 14aMarketing Channels and Supply-Chain Management

PTS: 1 DIF: Easy

PTS: 1 DIF: Easy

4. How do marketing channels increase efficiency in exchange situations?

PTS: 1 DIF: Difficult

PTS: 1 DIF: Moderate

PTS: 1 DIF: Easy

PTS: 1 DIF: Easy

PTS: 1 DIF: Moderate OBJ: 14-03 Identify types of marketing channels.

9. Under what circumstances is selective distribution a desirable level of market coverage?

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

12. Compare and contrast horizontal and vertical channel integration.

PTS: 1 DIF: Easy

14. Describe the three forms of vertical marketing systems.

PTS: 1 DIF: Easy

PTS: 1 DIF: Moderate

16. Analyze the total-cost approach to physical distribution.

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

19. Why is the choice of warehouse facilities an important strategic consideration?

PTS: 1 DIF: Moderate

PTS: 1 DIF: Easy

PTS: 1 DIF: Moderate

22. Explain the legal ramifications of attempts to control distribution functions.

25. The supply chain includes

29. A channel of distribution is defined as a group of individuals and organizations that

30. The driving force behind marketing channel decisions should be

33. Channel decisions are important to marketers mostly because

37. Possession utility is best described as

38. Consumers receive the benefits of place utility when

40. Eliminating a wholesaler from a marketing channel will

42. Without wholesalers and other intermediaries,

45. Many producers selling on the Internet are using

59. Which of the following describes a disadvantage of using industrial distributors?

60. Which of the following is an advantage of using an industrial distributor?

61. A producer is not likely to receive ____ from an industrial distributor.

96. Vertical channel integration

104. In an administered vertical marketing system (VMS), interorganizational relationships are

108. Select the greatest advantage of horizontal channel integration.

111. The notion of physical distribution is

114. Physical distribution activities may be performed by a producer, wholesaler, retailer or

116. The main objective of physical distribution should be to

117. The best way to reduce overall distribution costs is to

123. Order processing is defined as

124. What are the three primary tasks of order processing?

132. The result of an inventory stockout is usually an increase in

149. A public warehouse is a

151. What is the most expensive physical distribution function?

165. Using a freight forwarder usually

166. Dual distribution is characterized as

170. Tying agreements occur when a

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