Question 1

Introducing one intermediary into a channel can contribute to greatly _______________ that are necessary to complete an exchange.
A)Creating assortments
B)Reducing transactions
C)Transportation and storage functions
D)Facilitating functions
E)Disintermediation

Accepted Answer

Channels with intermediaries actually tend to save end-user consumers money over what most direct producer-to-consumer distribution approaches would cost, given the same product.

Question 2

In a(n)________________,the sheer size and power of one of the channel members places it in a position of channel control.
A)Insourcing arrangement
B)Vertical marketing system (VMS)
C)Corporate VMS
D)Contractual VMS
E)Administered VMS

Accepted Answer

In an administered VMS, the sheer size and power of one of the channel members places it in a position of channel control. The lead player in such situations may be referred to as the channel captain or channel leader, signifying its ability to control many aspects of that channel's operations.

Question 3

A(n)_________________ contains one or more intermediary levels.
A)Channel distribution
B)Merchant intermediary
C)Agent intermediary
D)Direct channel
E)Indirect channel

Accepted Answer

An indirect channel contains one or more intermediary levels.

Question 4

Channel intermediaries enhance utilities by providing a wide array of specific functions including ________________.
A)Physical distribution functions
B)Transaction and communication functions
C)Facilitating functions
D)Both physical distribution functions and transaction and communication functions
E)Physical distribution functions, Transaction and communication functions, and Facilitating functions

Accepted Answer

Channel intermediaries enhance utilities by providing a wide array of specific functions. Their contributions can be classified into physical distribution functions, transaction and communication functions, and facilitating functions.

Question 5

_____________,in whatever form,is the point of contact in the supply chain with the consumer of the product.
A)Retailing
B)Breadth of merchandise
C)Customer touchpoints
D)Assortment
E)Variety

Accepted Answer

Retailing, in whatever form, is the point of contact in the supply chain with the consumer of the product. Put another way, retailing in its various forms represents a very important point of customer interface.

Question 6

Intermediaries engage in ________________ when they accumulate products from several sources and then make those products available down the channel as a convenient assortment for consumers.
A)Creating assortments
B)Reducing transactions
C)Transportation and storage functions
D)Facilitating functions
E)Disintermediation

Accepted Answer

Intermediaries engage in creating assortments when they accumulate products from several sources and then make those products available down the channel as a convenient assortment for consumers.

Question 7

_____________ perform a variety of physical distribution,transaction and communication,and facilitating functions that make exchange possible.
A)Channel distributions
B)Merchant intermediaries
C)Agent intermediaries
D)Direct channels
E)Indirect channels

Accepted Answer

Agent intermediaries perform a variety of physical distribution, transaction and communication, and facilitating functions that make exchange possible. Exhibit 11.3 provides further insight about major types of intermediaries.

Question 8

Rock Solid is a company that manufactures different mixes of mortar for building projects.Recently it decided to outsource its warehousing in order to focus more on making great mortar mixes.This is an example of _________________.
A)Network organization
B)Value network
C)Virtual organization
D)Both network organization and value network
E)Both network organization and virtual organization

Accepted Answer

Based on the concept of value networks, a whole new breed of organization is arising called a network organization, or virtual organization, because it eliminates many in-house business functions and activities in favor of focusing only on those aspects for which it is best equipped to add value.

Question 9

Good Egg Co.buys eggs from local farmers,sorts them into different grades,and then packages them to sell to larger grocers.Good Egg Co.is performing the distribution function of ______________.
A)Physical distribution
B)Supply chain
C)Supply chain management
D)Breaking bulk
E)Accumulating bulk

Accepted Answer

In some industries, rather than breaking bulk, the intermediaries perform a process of accumulating bulk-that is, they take in product from multiple sources and transform it, often through sorting it into different classifications for sales through the channel. Eggs, for example, might come into a processing house from individual farm operators for sorting by grade and size, then to be packaged and sent on their way to retailers.

Question 10

Jenn has recently decided to take a value network approach to create a competitive advantage over her competitors.She is trying this because ___________________.
A)She frees up internal resources
B)Her firm can be more nimble in addressing external uncontrollable opportunities and threats
C)She has an advantage over firms that have high costs associated with performing many of the value chain functions
D)Both she frees up internal resources and she has an advantage over firms that have high costs associated with performing many of the value chain functions
E)She frees up internal resources, Her firm can be more nimble in addressing external uncontrollable opportunities and threats, and She has an advantage over firms that have high costs associated with performing many of the value chain functions

Accepted Answer

Taking a value network approach frees up internal resources so a firm can be more nimble in addressing external uncontrollable opportunities and threats, thus yielding a potential competitive advantage over firms that have high costs associated with performing many of the value chain functions themselves. A network organization facilitates concentration on one's own distinctive competencies while efficiently gathering value from outside firms that are concentrating their efforts in their own areas of expertise within your value network.

Question 11

_____________ is any business activity that creates value in the delivery of goods and services to consumers for their personal,nonbusiness consumption and is an essential component of the supply chain.
A)Customer touchpoint
B)Retailing
C)Breadth of merchandise
D)Depth of merchandise
E)Variety

Accepted Answer

Retailing is any business activity that creates value in the delivery of goods and services to consumers for their personal, nonbusiness consumption and is an essential component of the supply chain.

Question 12

Channel members add their value by bridging gaps in form,time,place,and ownership that naturally exist between ___________________.
A)Consumers and transporters
B)Producers and transporters
C)Producers and consumers
D)Producers and retailers
E)None of these

Accepted Answer

If an intermediary doesn't carry its weight, the channel structure eventually will change accordingly to maximize efficiencies across the utilities. Thus, channel members add their value by bridging gaps in form, time, place, and ownership that naturally exist between producers and consumers.

Question 13

A value network perspective is a macro-level strategic approach that is being adopted by many firms in part because of the intense competition to cut __________ and maximize ____________ every step of the way to market.
A)Costs, process efficiencies
B)Process efficiencies, costs
C)Costs, profits
D)Time inefficiencies, profits
E)None of these

Accepted Answer

A value network perspective is a macro-level strategic approach that is being adopted by many firms in part because of the intense competition to cut costs and maximize process efficiencies every step of the way to market. The approach suggests opportunities for breaking outside of traditional thinking that marketing is encapsulated within an organization, and instead suggests looking for such opportunities as alliances, strategic partnerships, nontraditional channel approaches, episodic collaborations, and outsourcing opportunities to provide unique sources of competitive edge.

Question 14

The role of retailing is to _________________.
A)Offer variety to customers
B)Separate large product volume into consumer purchase quantities
C)Maintain inventory levels
D)Make additional services available
E)All of these

Accepted Answer

Internet has altered the retail landscape retailers still perform four critical functions that add value for companies and consumers. That is, they (1) offer variety for consumers, (2) separate large product volume into consumer purchase quantities, (3) maintain inventory levels, and (4) make additional services available to consumers.

Question 15

A ________________ has no intermediaries and operates strictly from producer to end-user consumer or business user.
A)Channel distribution
B)Merchant intermediary
C)Agent intermediary
D)Direct channel
E)Indirect channel

Accepted Answer

A direct channel has no intermediaries and operates strictly from producer to end-user consumer or business user.

Question 16

The _____________ is thought of as an overarching system of formal and informal relationships,within which the firm participates to procure,transform and enhance,and ultimately supply its offerings in final form within a market space.
A)Value network
B)Virtual organization
C)Network organization
D)Value chain
E)Intermediary network

Accepted Answer

At the broadest level, a firm might view itself as an integral part of a value network, which may be thought of as an overarching system of formal and informal relationships within which the firm participates to procure, transform and enhance, and ultimately supply its offerings in final form within a market space.

Question 17

__________ take title to the product.
A)Channel distributions
B)Merchant intermediaries
C)Agent intermediaries
D)Direct channels
E)Indirect channels

Accepted Answer

Most channels are not direct from producer to consumer. Instead, they contain a variety of intermediaries, formerly called middlemen, that play a role in the exchange process between producer and consumer. A wide variety of types of intermediaries exists, and they usually fall within two principal categories: merchant intermediaries, who take title to the product, and agent intermediaries, who do not take title to the product.

Question 18

A(n)________________ represents all organizations involved in supplying a firm,the members of its channels of distribution,and its end-user consumers and business users.
A)Physical distribution system
B)Supply chain
C)Supply chain management
D)Breaking bulk
E)Accumulating bulk

Accepted Answer

A supply chain represents all organizations involved in supplying a firm, the members of its channels of distribution, and its end-user consumers and business users.

Question 19

The _____________ eliminates many in-house business functions and activities in favor of focusing only on those aspects for which it is best equipped to add value.
A)Value network
B)Value co-creation
C)Network organization
D)Nimbleness
E)Intermediary

Accepted Answer

Based on the concept of value networks, a whole new breed of organization is arising called a network organization, or virtual organization, because it eliminates many in-house business functions and activities in favor of focusing only on those aspects for which it is best equipped to add value.

Question 20

A channel of distribution consists of interdependent entities that are ___________________.
A)Aligned for the purpose of transferring possession of a product from producer to consumer or business user
B)Aligned for the purpose of creating cost efficiencies only
C)Interconnected to perform manufacturing before a transporter takes the finished product
D)Working together to develop new products
E)None of these

Accepted Answer

A channel of distribution consists of interdependent entities that are aligned for the purpose of transferring possession of a product from producer to consumer or business user. Put another way, a channel is a system of interdependent relationships among a set of organizations that facilitates the exchange process.

Quiz 11: Manage Marketing Channels and Points of Customer Interface

Introducing one intermediary into a channel can contribute to greatly _______________ that are necessary to complete an exchange.

In a(n) ________________,the sheer size and power of one of the channel members places it in a position of channel control.

A(n) _________________ contains one or more intermediary levels.

Channel intermediaries enhance utilities by providing a wide array of specific functions including ________________.

_____________,in whatever form,is the point of contact in the supply chain with the consumer of the product.

Intermediaries engage in ________________ when they accumulate products from several sources and then make those products available down the channel as a convenient assortment for consumers.

_____________ perform a variety of physical distribution,transaction and communication,and facilitating functions that make exchange possible.

Rock Solid is a company that manufactures different mixes of mortar for building projects.Recently it decided to outsource its warehousing in order to focus more on making great mortar mixes.This is an example of _________________.

Good Egg Co.buys eggs from local farmers,sorts them into different grades,and then packages them to sell to larger grocers.Good Egg Co.is performing the distribution function of ______________.

Jenn has recently decided to take a value network approach to create a competitive advantage over her competitors.She is trying this because ___________________.

_____________ is any business activity that creates value in the delivery of goods and services to consumers for their personal,nonbusiness consumption and is an essential component of the supply chain.

Channel members add their value by bridging gaps in form,time,place,and ownership that naturally exist between ___________________.

A value network perspective is a macro-level strategic approach that is being adopted by many firms in part because of the intense competition to cut and maximize __ every step of the way to market.

The role of retailing is to _________________.

A ________________ has no intermediaries and operates strictly from producer to end-user consumer or business user.

The _____________ is thought of as an overarching system of formal and informal relationships,within which the firm participates to procure,transform and enhance,and ultimately supply its offerings in final form within a market space.

__________ take title to the product.

A(n) ________________ represents all organizations involved in supplying a firm,the members of its channels of distribution,and its end-user consumers and business users.

The _____________ eliminates many in-house business functions and activities in favor of focusing only on those aspects for which it is best equipped to add value.

A channel of distribution consists of interdependent entities that are ___________________.