1. C HAPTER 10 MARKETING CHANNELS AND SUPPLY CHAIN MANAGEMENT CRS Questions & Answers

2. Copyright 2007, Prentice-Hall Inc.10-2 A pet store bundles together a fish tank, stand, lid, air pump, filter, and gravel and offers them all to the customer for one price. The retailer is performing the ______ channel function. 1.information 2.promotion 3.contact 4.matching

3. Copyright 2007, Prentice-Hall Inc.10-3 A pet store bundles together a fish tank, stand, lid, air pump, filter, and gravel and offers them all to the customer for one price. The retailer is performing the ______ channel function. 1.information 2.promotion 3.contact 4.matching Assembling is one of the matching activities that shapes and fits the offer to the buyer’s needs.

4. Copyright 2007, Prentice-Hall Inc.10-4 Kedros Canoes sells its products directly to several recreation retailers who, in turn, sell them to final customers. This is an example of a(n) _________ channel of distribution. 1.direct 2.indirect 3.administered 4.horizontal

5. Copyright 2007, Prentice-Hall Inc.10-5 Kedros Canoes sells its products directly to several recreation retailers who, in turn, sell them to final customers. This is an example of a(n) _________ channel of distribution. 1.direct 2.indirect 3.administered 4.horizontal Indirect marketing channels contain one or more intermediaries, such as a retailer.

6. Copyright 2007, Prentice-Hall Inc.10-6 To cut the distribution costs at your rapidly growing chocolate factory, you purchase a controlling share of a trucking company. You have drawn the trucking company into a: 1.Corporate VMS 2.Contractual VMS 3.Conventional marketing channel 4.Franchise organization

7. Copyright 2007, Prentice-Hall Inc.10-7 To cut the distribution costs at your rapidly growing chocolate factory, you purchase a controlling share of a trucking company. You have drawn the trucking company into a: 1.Corporate VMS 2.Contractual VMS 3.Conventional marketing channel 4.Franchise organization In a corporate VMS, one channel member owns the other and thus members act as a unified system.

8. Copyright 2007, Prentice-Hall Inc.10-8 Judith Reyes manufactures expensive preamplifiers, which have been favorably reviewed in several magazines for audio enthusiasts. The most appropriate level of distribution for this product would probably be: 1.Exclusive 2.Selective 3.Intensive 4.Integrated

9. Copyright 2007, Prentice-Hall Inc.10-9 Judith Reyes manufactures expensive preamplifiers, which have been favorably reviewed in several magazines for audio enthusiasts. The most appropriate level of distribution for this product would probably be: 1.Exclusive 2.Selective 3.Intensive 4.Integrated Not every audio store within a given area should carry this product, but those with higher-end merchandise will carry it.

10. Copyright 2007, Prentice-Hall Inc.10-10 All the following are channel design decisions EXCEPT: 1.Choosing modes of transportation 2.Analyzing consumer service needs 3.Setting channel objectives and constraints 4.Identifying major alternatives

11. Copyright 2007, Prentice-Hall Inc.10-11 All the following are channel design decisions EXCEPT: 1.Choosing modes of transportation 2.Analyzing consumer service needs 3.Setting channel objectives and constraints 4.Identifying major alternatives Evaluating major alternatives is the last channel design decision. As part of this process, economic criteria are used to evaluate the different alternatives, control issues are considered, and adaptive criteria may be applied.

12. Copyright 2007, Prentice-Hall Inc.10-12 When a producer requires a dealer NOT to handle competitors’ products, it is engaging in: 1.Exclusive territorial agreement 2.Tying agreement 3.Exclusive dealing 4.Exclusive distribution

13. Copyright 2007, Prentice-Hall Inc.10-13 When a producer requires a dealer NOT to handle competitors’ products, it is engaging in: 1.Exclusive territorial agreement 2.Tying agreement 3.Exclusive dealing 4.Exclusive distribution Through exclusive dealing arrangements, sellers obtain more loyal and dependable outlets, and dealers obtain a steady source of supply and stronger seller support.

14. Copyright 2007, Prentice-Hall Inc.10-14 When picking an intermediary, manufacturers should look at which of the following? 1.Number of years in business 2.Growth and profit record 3.Cooperativeness 4.All the above

15. Copyright 2007, Prentice-Hall Inc.10-15 When picking an intermediary, manufacturers should look at which of the following? 1.Number of years in business 2.Growth and profit record 3.Cooperativeness 4.All the above The potential for channel conflict, and the importance of the functions performed by channel members require that manufacturers evaluate all of the factors noted above.

16. Copyright 2007, Prentice-Hall Inc.10-16 G.M. ships cars by rail from its primary plant. At certain locations along the railway, autos are unloaded from the train and moved to semi- truck car carriers, which deliver the vehicles to the dealerships. The car manufacturer uses: 1.Intermodal transportation 2.Continuous inventory replenishment 3.A just-in-time inventory system 4.Integrated logistics management

17. Copyright 2007, Prentice-Hall Inc.10-17 G.M. ships cars by rail from its primary plant. At certain locations along the railway, autos are unloaded from the train and moved to semi- truck car carriers, which deliver the vehicles to the dealerships. The car manufacturer uses: 1.Intermodal transportation 2.Continuous inventory replenishment 3.A just-in-time inventory system 4.Integrated logistics management Intermodal transportation combines two or more modes of transportation, often achieving cost savings.

18. Copyright 2007, Prentice-Hall Inc.10-18 Transportation, warehousing, and inventory management are among the functions of: 1.Conventional distribution 2.Channel management 3.Logistics management 4.Channel design

19. Copyright 2007, Prentice-Hall Inc.10-19 Transportation, warehousing, and inventory management are among the functions of: 1.Conventional distribution 2.Channel management 3.Logistics management 4.Channel design Logistics information management is also one of the major logistics functions.