2 Most producers use to bring their products to market. A detailers B intermediaries C expediters D agents

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1 MULTIPLE CHOICE QUESTIONS 1.Caterpillar (famous for earth moving equipment) has a powerful partnership with its dealers. Which of the following is one of the basic principles upon which this successful partnership is built? A the Internet B advertising C dealer profitability D global networks 2 Most producers use to bring their products to market. A detailers B intermediaries C expediters D agents 3 A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user is called a: A retailer. B wholesaler. C distribution channel. D logistics function. 4. A is a set of interdependent organizations involved in the process of making a product or service available for use of consumption by the consumer or business user. A retailer B wholesaler C distribution channel D middleman 5 Through their contacts, experience, specialization, and scale of operation, usually offer the firm more than it can achieve on its own. A manufacturers B producers C direct marketers D intermediaries 6 From the economic system s point of view, the role of marketing intermediaries is to transform: A raw products into finished products. B consumer needs into producer needs. C consumer needs and wants into product desires. D assortments of products made by producers into the assortments wanted by consumers.

2 7 Which of the following problems do intermediaries attempt to solve within the distribution channel? A the need for a legal buffer between producer and consumer B the need to ensure a profit for the producer C the need to resolve the producer s desire to make narrow assortments in large quantities against the consumer s need for broad assortments in small quantities D the need for a manufacturer to be able to sell goods without having a final responsibility for their usefulness 8. A distribution channel moves goods and services from producers to consumers. It overcomes the major time, place, and gaps that separate goods and services from those who would use them. A possession B profit C image D psychological 9. Members of the marketing channel perform many key functions. Which of the following would be among those key functions? A negotiation B sensing C producing D creating 10. Shaping and fitting the offer to the buyer s needs, including activities such as manufacturing, grading, assembling, and packaging, describes which of the following key functions performed by members of the marketing channel? A information B promotion C contact D matching 11. Gathering and distributing marketing research and intelligence about the marketing environment is part of which of the following marketing channel functions? A information B promotion C contact D matching 12. Reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred is associated with which of the following key functions performed by the marketing channel? A information B. negotiation C contact D matching

3 13. Transporting and storing goods is part of which of the following marketing channel functions? A negotiation B physical distribution C contact D matching 14 is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the buyer. A A direct marketing channel B An indirect marketing channel C A channel level D A channel switching system 15. With respect to a channel of distribution, the number of intermediary levels within the channel indicates the of a channel. A width B depth C length D similarity 16. A(n) is a marketing channel that has no intermediary levels. A direct marketing channel B indirect marketing channel C forward channel D hybrid channel 17. If a company sells its product directly to the consumer without using any intermediaries, it is using a(n): A direct marketing channel. B indirect marketing channel. C forward channel. D hybrid channel. 18. Avon, Amway, and Tupperware use which of the following forms of channel distribution? A direct marketing channel B indirect marketing channel C forward channel D fashion channel 19. A(n) is a channel that contains one or more intermediary levels. A direct marketing channel B indirect marketing channel C forward channel

4 D synthetic channel 20. Makers of televisions, cameras, tires, furniture, and major appliances normally use which of the following distribution channel forms? A direct marketing channel B indirect marketing channel C horizontal channel D synthetic channel 21. Using manufacturer s representatives or sales branches is usually a characteristic of which of the following channel forms? A business marketing channels B customer marketing channels C service marketing channels D direct marketing channels 22. All institutions in a marketing channel are normally connected by several types of flows. Which of the following is NOT one of those flows? A physical flow B promotion flow C flow of ownership D regulatory flow 23. Disagreement over the goals and roles of marketing channel members is called: A channel challenge. B channel co-dependence. C channel frustration. D channel conflict. 24. When channel conflict occurs, it can occur at the same level of the channel. This form of conflict is called: A parallel conflict. B system conflict. C horizontal conflict. D vertical conflict. 25. If Pizza Inn franchisees complain that other Pizza Inn franchisees are cheating on ingredients, giving poor service, and are hurting the overall Pizza Inn image, these complaints are indicative of a. A parallel conflict B system conflict C horizontal conflict D vertical conflict 26. Conflicts between different levels of the same channel of distribution are referred to as:

5 A B C D horizontal conflicts. vertical conflicts. layer-based conflicts. parallel conflicts. 27. When a company like Coca-Cola has disagreements with some of its bottlers over business practices, it is a form of: A horizontal conflict. B vertical conflict. C layer-based conflict. D parallel conflict. 28. Cooperation, role assignment, and conflict management in the channel of distribution are attained through strong channel: A power. B positioning. C leadership. D threats. 29. One way to overcome traditional conflicts found in conventional channels of distribution is to construct a: A synchronized channel of distribution. B global channel of distribution. C Norezi channel of distribution. D vertical channel of distribution. 30. When one or more independent producers, wholesalers, and retailers operating as separate businesses make up the channel of distribution, it comprises which type of distribution channel? A power-based B horizontal C vertical D conventional 31. If independent producers, wholesalers, and retailers align together but still seek individually to maximize profits, even at the expense of profits for the system as a whole, the group is most likely aligned in a: A conventional distribution channel. B power-based distribution channel. C horizontal distribution channel. D vertical distribution channel. 32. When producers, wholesalers, and retailers act as a unified system, they comprise a: A conventional marketing system. B power-based marketing system. C horizontal marketing system.

6 D vertical marketing system. 33. Which of the following marketing systems is characterized by a channel of distribution where one channel member owns the others, has contracts with them, or has so much power that they all cooperate? A conventional marketing systems B power-based marketing systems C vertical marketing systems D horizontal marketing systems 34. All of the following would be considered to be forms of a vertical marketing system (VMS) EXCEPT: A corporate. B contractual. C global. D administered. 35. A(n) is a vertical marketing system that combines successive stages of production and distribution under single ownership. A power-based VMS B corporate VMS C contractual VMS D administered VMS 36. Sears obtains more than 50 percent of its goods from companies that it partly or wholly owns. This would be an example of a(n): A power-based VMS. B corporate VMS. C contractual VMS. D administered VMS. 37. A(n) is a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could achieve alone. A power-based VMS B corporate VMS C contractual VMS D administered VMS 38. Independent Grocers Alliance (IGA), Western Auto, and Do It Best hardware are all examples of: A franchise organizations. B retailer cooperatives. C manufacturer-sponsored retailer franchise systems. D wholesaler-sponsored voluntary chains.

7 39. If a retailer joins other retailers in organizing a new, jointly owned business to carry on wholesaling and possibly production, the retailer has formed a: A retailer kiosk. B retailer-sponsored voluntary chain. C retailer cooperative. D franchise. 40. Most motels and fast-food restaurants are considered to be: A retailer cooperatives. B voluntary chains. C franchise organizations. D administered VMS organizations. 41. The type of franchise operation used by the automobile industry is usually a: A service-firm sponsored franchise system. B manufacturer-sponsored retailer franchise system. C manufacturer- sponsored wholesaler franchise system. D service-firm sponsored direct channel franchise system. 42. Which type of vertical marketing system coordinates the stages of production and distribution through the size and power of one of the parties? A administered VMS B independent VMS C contractual VMS D dependent VMS 43. A is a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity. A vertical marketing system B parallel marketing system C diversified marketing system D horizontal marketing system 44. When Coca-Cola and Nestle formed a joint venture to market a ready-to-drink coffee and tea worldwide, the type of marketing system that was formed would best be described as being a: A vertical marketing system. B parallel marketing system. C diversified marketing system. D horizontal marketing system. 45. A multichannel distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments is called a(n): A vertical marketing channel. B parallel marketing channel. C hybrid marketing channel.

8 D horizontal marketing channel. 46. IBM at one time only sold through their own sales force. Today, however, the market has caused changes in IBM s distribution philosophy. The company now has 18 new channels. The correct description of this form of marketing would be to characterize IBM s approach as being one where are used. A vertical marketing channels B parallel marketing channels C hybrid marketing channels D horizontal marketing channels 47. What is one of the common complaints about a hybrid marketing channel and its effectiveness? A expanded sales functions B expanded market coverage C expanded global networks D harder to control and more conflict 48. The displacement of traditional resellers from a marketing channel by radical new types of intermediaries is called: A regeneration. B bounded distribution. C disintermediation. D territoriality. 49. Traditional intermediaries, to avoid being swept aside in the new wave of disintermediation, must find new ways to: A generate profits. B advertise. C form binding networks. D add value in the supply chain. 50. If a company were seeking to design a channel system, the first step would be to: A analyze consumer-service needs. B set the channel objectives and constraints. C analyze marketing intermediaries. D factor in (or out) foreign middlemen alternatives. 51. Another term or phrase for a marketing channel is: A customer value delivery system. B push-pull system. C service system. D flow system. 52. After a company has defined its channel objectives, it should next identify its:

9 A B C D profit centers. major channel alternatives. selection process. motivation system. 53. When a marketer is in the process of identifying its major channel alternatives, it should determine all of the following EXCEPT: (Choose the LEAST LIKELY.) A the ownership of the intermediary. B the types of intermediaries. C the number of intermediaries. D the responsibility of each channel member. 54. The strategy whereby a company stocks its products in as many outlets as possible is called: A intensive distribution. B exclusive distribution. C selective distribution. D closed distribution. 55. If a company seeks to maximize brand exposure, which of the following distribution alternatives would be the correct choice? A intensive distribution B exclusive distribution C selective distribution D open distribution 56. Giving a limited number of dealers the exclusive right to distribute the company s products in their territories is called. A intensive distribution. B exclusive distribution. C selective distribution. D closed distribution. 57. Rolls Royce uses which of the following distribution formats? A intensive distribution B exclusive distribution C selective distribution D open distribution 58. Maytag, Whirlpool, and General Electric prefer which of the following distribution formats to distribute the majority of their products? A intensive distribution B exclusive distribution C selective distribution D open distribution

10 59. The use of more than one, but fewer than all, of the intermediaries who are willing to carry the company s products is characteristic of which of the following distribution formats? A intensive distribution B exclusive distribution C selective distribution D open distribution 60. Estimating the costs of selling different volumes through each proposed channel is part of which decision area used in evaluating the major channel alternatives? A promotional criteria B economic criteria C control criteria D adaptive criteria 61. All of the following would be considered to be positive motivators to be applied to channel members by other channel members EXCEPT: A higher margins. B ownership in the supplying company. C special deals. D display allowances. 62. When a seller of a product requires that its dealers not handle competitors products, the seller s strategy is called: A multilevel distribution. B prohibitive retailing. C exclusive dealing. D bonded partnering. 63. Tying agreements, though not necessarily illegal, do tend to violate the if they tend to lessen competition substantially. A Robinson-Patman Act B Sherman Anti-trust Act C Clayton Act D Hatfield Act 64. Which of the following terms is similar to the term marketing logistics? A channel of distribution B vertical integration of distribution C physical distribution D horizontal distribution 65. is the tasks involved in planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit. A A channel of distribution

11 B C D Vertical integration of distribution Horizontal distribution Physical distribution 66. Customer-centered marketing logistics thinking starts with: A products at the plant and tries to find low-cost solutions to get them to customers. B the marketplace and works backwards to the factory. C retailers and identifies their problems as a way to satisfy the ultimate consumer. D wholesalers (as gatekeepers) and identifies their problems as being the secret to successful distribution. 67. Managing value-added flows of materials, final goods, and related information between suppliers, the company, resellers, and final users is called: A a channel of distribution. B marketing network analysis. C supply chain management. D conscription flow management. 68. Moving broken, unwanted, or excess products returned by consumers or resellers is called distribution. A outbound B inbound C reverse D salvage 69. About percent of an average product s price is accounted for by shipping and transportation. A 5 B 15 C 18 D The goal of the marketing logistics system should be to provide: A a targeted level of promotional support. B a targeted level of customer service at the least cost. C a targeted level of transportation expense ratio. D a targeted level of field support. 71. All of the following are considered to be major logistics functions EXCEPT: A promotion to wholesalers and retailers. B order processing. C inventory management. D transportation.

12 72. Deciding on the number of and location for stocking facilities for storage of products is part of which of the following physical distribution decisions? A order processing B warehousing C inventory D transportation 73. A large, highly automated warehouse designed to receive goods from various plants and suppliers is called a: A storage bin. B collection point. C distribution center. D demarcation facility. 74. The mode of transportation that accounts for the largest percentage of cargo moved in the United States is: A rail. B truck. C water. D pipeline. 75 offers the opportunity to buy direct from the supplier with reduced costs and shorter cycle. A Reintermediation B Disintermediation C Countermediation D Contramediation E None of the above Answer of MCQ 1-c 2-b 3-c 4-c 5-d 6-d 7-c 8-a 9-a 10-d 11-a 12-b 13-b 14-c 15-c 16-a 17-a 18-a 19-b 20-b 21-a 22-d 23-d 24-c 25-c 26-b 27-b 28-c 29-d 30-d 31-a 32-d 33-c 34-c 35-b 36-b 37-c 38-d 39-c 40-c 41-b 42-a 43-d 44-d 45-c 46-c 47-d 48-c 49-d 50-a 51-a 52-b 53-a 54-a 55-a 56-b 57-b 58-c 59-c 60-b 61-b 62-c 63-c 64-c 65-d 66-b 67-c 68-c 69-b 70-b 71-a 72-b 73-c 74-b 75-b