MKT 475 Week 7 Quiz – Strayer



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Quiz 6 Chapter 10

Value-Chain Strategy
  
True/False Questions
 

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


  2
 
2. A single product makes distribution by the manufacturer economically feasible, whereas the cost of direct sales for a complete line may be prohibitive.


  2

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


  292

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


  292

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


  292

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


  292

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


  296

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


  297

9. 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.


  299

10. Agile supply chains require long-term partnership with suppliers.


  304

Multiple Choice Questions


11. _____ 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


  2
 
12. _____ 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

 
  2

13. 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


  2

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


  2

15. Consumer-products manufacturers often direct advertising to _____to help pull products through distribution channels.
A. middlemen
B. consumers
C. distributors
D. retailers


  2

16. 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


  291

17. 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


  292
 
18. 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


  292
 
19. _____ VMS includes various formal arrangements between channel participants including franchising and voluntary chains of independent retailers.
A. Ownership
B. Contractual
C. Administered
D. Relationship


  294

20. _____ 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


  294

21. 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


  294

22. _____ 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


  295

23. 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


  295

24. 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


  296

25. 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


  296
 
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


  297 

27. Channel _____ refers to the strategic shift from one channel to another.
A. invasion
B. migration
C. innovation
D. audit


  301

28. 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


  304

29. 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


  304

30. 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


  306

Essay Questions
 

31. Discuss the factors that influence distribution decision.

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

33. Discuss the major issues in deciding distribution intensity.

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


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



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