Chapter 11 - Chapter 11-Marketing Channels and Supply Chain...

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174 questions (28 true/false, 128 multiple choice, 18 essay) TRUE/FALSE 1. A marketing channel is a business structure composed of independent organizations that reach from the point of product origin to the final consumer. Its purpose is to move products to their final consumption destination. ANS: F PTS: 1 REF: 324 OBJ: 11-1 TYPE: Def A marketing channel is a business structure composed of interdependent organizations that reach from the point of product origin to the consumer. In some cases, they are independent business entities; in other cases, not. TOP: 2. As products move through the marketing channel, channel members provide specialization and division of labor, overcome discrepancies, and provide contact efficiency. ANS: T PTS: 1 REF: 324 OBJ: 11-1 TYPE: Comp TOP: 3. Marnie stopped by the drugstore to buy a bottle of suntan lotion. She is glad she can buy one bottle at a time, instead of having to buy the thousands of bottles of suntan lotion the manufacturer produces every day. For Marnie, the drugstore overcomes a discrepancy of quantity. ANS: T PTS: 1 REF: 325 OBJ: 11-1 TYPE: App TOP: 4. Residents of Sobarro, New Mexico, live in an isolated area of the state. Residents must travel two hours to receive medical treatment. Luckily, a physician has just opened a new practice in Sobarro. In this case, the physician has overcome service discrepancies by opening an office close to consumers. ANS: F PTS: 1 REF: 325 OBJ: 11-1 TYPE: App This is an example of overcoming a spatial discrepancy. TOP: 5. Consider a scenario in which there are four manufacturers, no intermediaries, and three consumers. Twelve transactions would be required for each consumer to receive products from each manufacturer. The introduction of one intermediary reduces the required number of transactions to four and demonstrates the idea of contact efficiency. ANS: F PTS: 1 REF: 326-327 OBJ: 11-1 TYPE: App Introducing one intermediary reduces the required number of transactions to seven. TOP: 6. A merchant wholesaler is an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers. ANS: T PTS: 1 REF: 326-327 OBJ: 11-2 TYPE: Def TOP: 7. Juana Ivetson represents a manufacturer of floor coverings and gets paid a commission for finding buyers and linking them up with the manufacturer. Ivetson is an example of a merchant wholesaler. Chapter 11
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Chapter 11 - Chapter 11-Marketing Channels and Supply Chain...

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