Deck 10: Value Chain Strategy

Question 1

 _____ is a network of value chain organizations performing functions that connect goods and services with end-users.

A) Line extension
B) Retail chain
C) Channel of distribution
D) Digital channel

Answer 1

 Channel of distribution

Question 2

Agile supply chains require long-term partnership with suppliers.

Answer 2

False

Question 3

The conventional channel of distribution is a group of horizontally linked independent organizations.

Answer 3

False

Question 4

A primary feature of a vertical marketing system is the management (or coordination) of the distribution channel collectively by the organizations involved.

Question 5

 Which of the following value-added activities would most effectively reduce the number of transactions for producers and end-users?

A) Assembly of products into inventory
B) Servicing and repairs
C) Processing and storage of goods
D) Buying and selling activities by marketing intermediaries

Question 6

Relationships between the conventional channel participants are rather informal and the members are not closely coordinated.

Question 7

 _____ is defined as the group of vertically aligned organizations that keep improving a product in moving from basic supplies to finished products for consumer and organizational end-users.

A) Value chain
B) Distribution strategy
C) Retail strategy
D) Digital channel

Question 8

 Buying and selling activities by marketing intermediaries reduce the number of transactions for producers and end-users.

Question 9

Which of the following factors favors direct distribution by the manufacturer?

A) Simple product/application
B) Large number of geographically concentrated buyers
C) Opportunity for competitive advantage
D) Small and frequent purchases

Question 10

A conventional distribution channel offers little opportunity for control by a member firm,yet there is a lot of flexibility in entering and exiting from the channel.

Question 11

Consumer-products manufacturers often direct advertising to _____to help pull products through distribution channels.

A) middlemen
B) consumers
C) distributors
D) retailers

Question 12

Large producers with extensive capabilities and resources have a lot of flexibility in choosing intermediaries.

Question 13

The _____ of distribution is a group of vertically linked independent organizations,each trying to look out for itself,with limited concern for the total performance of the channel. 

A) digital channel
B) vertical marketing system
C) direct channel
D) conventional channel

Question 14

Which of the following value-added activities helps to meet buyers' time-of-purchase and variety preferences?

A) Assembly of products into inventory
B) Transportation
C) Processing and storage of goods
D) Advertising and sales promotion

Question 15

Relationships between the conventional distribution channel participants are rather informal and the members are not closely coordinated.

Question 16

 In a _____,one organization coordinates the distribution channel and directs programming of channel activities and functions.

A) vertical marketing system
B) conventional channel
C) direct channel
D) digital channel

Question 17

If one retailer or dealer in the trading area distributes the product,then management is following a selective distribution strategy.

Question 18

 _____ VMS exists because one of the channel members has the capacity to influence other channel members and exerts substantial control over them.

A) Ownership
B) Contractual
C) Administered
D) Relationship

Question 19

A single product makes distribution by the manufacturer economically feasible,whereas the cost of direct sales for a complete line may be prohibitive.

Question 20

 _____ VMS includes various formal arrangements between channel participants including franchising and voluntary chains of independent retailers.

A) Ownership
B) Contractual
C) Administered
D) Relationship

Question 21

Discuss the major issues in deciding distribution intensity.

Question 22

The process of replacing distributors with direct manufacturer-owned channels is referred to as _____.

A) e-procurement
B) channel invasion
C) channel audit
D) disintermediation

Question 23

 Discuss the impact of e-procurement in business-to-business marketing. 

Question 24

 In _____ VMS,a single firm does not exert substantial control over other channel members but involves close collaboration and sharing of information. 

A) ownership
B) contractual
C) administered
D) relationship

Question 25

 Discuss the emerging issue of the digital distribution channel occurring in markets in which the product can be converted to digital format. 

Question 26

Which of the following is the final step in selecting the distribution strategy?

A) Selecting the channel configuration
B) Determining the type of channel arrangement
C) Deciding the intensity of distribution
D) Identifying appropriate distribution strategy

Question 27

The _____ supply chain mandates fluid and market-based relationships to enhance responsiveness to the market and capacity for rapid change.

A) fluid
B) conventional
C) lean
D) agile

Question 28

 If a company decides to distribute its products in many of the retail outlets in a trading area that might normally carry such a product,it is using a(n) _____ distribution approach. 

A) exclusive
B) intensive
C) selective
D) moderate

Question 29

The _____ supply chain seeks to remove waste and manage volatility out of the supply chain by leveling demand.

A) fluid
B) agile
C) lean
D) conventional

Question 30

 If a company decides to distribute its products through one retailer or dealer in the trading area,then the company is following a(n) _____ distribution strategy.

A) intensive
B) selective
C) exclusive
D) moderate

Question 31

Channel _____ refers to the strategic shift from one channel to another.

A) invasion
B) migration
C) innovation
D) audit

Question 32

 _____ marketing system exists when two or more unrelated companies put together resources or programs to exploit a marketing opportunity.Its characteristics are close to the partnering,joint venture,and strategic alliance arrangements.

A) Horizontal
B) Digital
C) Administered
D) Relationship

Question 33

What is channel migration? List the issues to be considered when opting for migration.

Question 34

Often customers shop for information in one channel,then defect from that channel to make the purchase in another medium.This process is referred to as _____.

A) personal selling
B) channel surfing
C) direct distribution
D) channel mapping

Question 35

Discuss the factors that influence distribution decision.