Chapter 10,9 - Chapter 13 Marketing Channels and Supply...

Chapter 13
Marketing Channels and Supply Management
Multiple Choice
1. Caterpillar Company charges premium prices for its heavy equipment. It is successful
because _____.
1. the equipment is high quality
2. its distribution is unparalleled
3. its customer support system is strong
4. both a and b
(d; Moderate; p. 397)
2. Another reason for Caterpillar’s success is that its dealers _____.
1. operate at low cost
2. build strong customer relationships in their communities
3. are skilled in promotion
4. discount prices to their best customers
(b; Moderate; p. 398)
3. Why is Caterpillar’s service to dealers and customers such an advantage in winning
and keeping customers?
1. The high quality equipment reduces downtime combined with fast service.
2. There is no freight charge on parts with a minimum order.
3. All service personnel have at least six years experience in their jobs.
4. All of the above are true.
(a; Challenging; 398)
4. Choose the item below that is not a reason why Caterpillar enjoys a close working
relationship with its dealers.
1. extraordinary dealer support
2. dealer performance
3. Internet communication
4. dealer profitability
(a; Moderate: 398)
5. Which of the following is not a typical supply chain member?
1. reseller
2. customer

3. intermediary
4. intermediary’s creditor
(d; Easy; p. 399)
6. _____ from the manufacturer or service provider is the set of firms that supply the raw
materials, components, parts, information, finances, and expertise needed to create a
product or service.
1. Downstream
2. Upstream
3. Separated
4. None of the above
(b; Moderate; p. 399)
7. A better term for supply chain would be _____.
1. supply and demand chain
2. demand chain
3. channel of distribution
4. distribution channel
(b; Easy; p. 399)
8. With the advent of the Internet, most companies are forming _____ with other firms.
1. stronger relationships
2. more numerous and stronger relationships
3. more numerous and complex relationships
4. more profitable relationships
(c; Challenging; p.399)
9. When suppliers, distributors, and customers partner with each other to improve
the performance of the entire system, they are participating in a _____.
1. value delivery network
2. channel of distribution
3. supply chain
4. demand chain
(a; Moderate; p. 399)
10. The logistics and distribution manager of BeltWay Enterprises, Inc. regularly
deals with the four major questions concerning marketing channels. Identify the one that is
not associated.
1. How do channel firms interact and organize to do the work of the channel?
2. What is the nature of marketing channels and why are they important?
3. What problems do companies face in designing and managing their channels?
4. What role do financial and transportation members play in retaining customers?
(d; Challenging; p. 399)

11. Most producers today sell their goods to _____.
1. final users
2. final users and marketing members
3. intermediaries
4. the government at various levels
(c; Easy; p. 400)
12. A company’s channel decisions directly affect every other_____.