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MULTIPLE CHOICE QUESTIONS
1.Caterpillar (famous for earth moving equipment) has a powerful partnership with its
dealers. Which of the following is one of the basic principles upon which this successful
partnership is built?
A
the Internet
B
advertising
C
dealer profitability
D
global networks
2 Most producers use ___________________ to bring their products to market.
A
detailers
B
intermediaries
C
expediters
D
agents
3 A set of interdependent organizations involved in the process of making a product or
service available for use or consumption by the consumer or business user is called a:
A
retailer.
B
wholesaler.
C
distribution channel.
D
logistics function.
4. A ______________ is a set of interdependent organizations involved in the process of
making a product or service available for use of consumption by the consumer or
business user.
A
retailer
B
wholesaler
C
distribution channel
D
middleman
5 Through their contacts, experience, specialization, and scale of operation,
______________ usually offer the firm more than it can achieve on its own.
A
manufacturers
B
producers
C
direct marketers
D
intermediaries
6 From the economic system’s point of view, the role of marketing intermediaries is to
transform:
A
raw products into finished products.
B
consumer needs into producer needs.
C
consumer needs and wants into product desires.
D
assortments of products made by producers into the assortments wanted by
consumers.
7 Which of the following problems do intermediaries attempt to solve within the
distribution channel?
A
the need for a legal buffer between producer and consumer
B
the need to ensure a profit for the producer
C
the need to resolve the producer’s desire to make narrow assortments in large
quantities against the consumer’s need for broad assortments in small quantities
D
the need for a manufacturer to be able to sell goods without having a final
responsibility for their usefulness
8. A distribution channel moves goods and services from producers to consumers. It
overcomes the major time, place, and ______________ gaps that separate goods and
services from those who would use them.
A
possession
B
profit
C
image
D
psychological
9. Members of the marketing channel perform many key functions. Which of the
following would be among those key functions?
A
negotiation
B
sensing
C
producing
D
creating
10. Shaping and fitting the offer to the buyer’s needs, including activities such as
manufacturing, grading, assembling, and packaging, describes which of the following key
functions performed by members of the marketing channel?
A
information
B
promotion
C
contact
D
matching
11. Gathering and distributing marketing research and intelligence about the marketing
environment is part of which of the following marketing channel functions?
A
information
B
promotion
C
contact
D
matching
12. Reaching an agreement on price and other terms of the offer so that ownership or
possession can be transferred is associated with which of the following key functions
performed by the marketing channel?
A
information
B
. negotiation
C
contact
D
matching
13. Transporting and storing goods is part of which of the following marketing channel
functions?
A
negotiation
B
physical distribution
C
contact
D
matching
14 _______________ is a layer of intermediaries that performs some work in bringing
the product and its ownership closer to the buyer.
A
A direct marketing channel
B
An indirect marketing channel
C
A channel level
D
A channel switching system
15. With respect to a channel of distribution, the number of intermediary levels within the
channel indicates the ____________ of a channel.
A
width
B
depth
C
length
D
similarity
16. A(n) ________________ is a marketing channel that has no intermediary levels.
A
direct marketing channel
B
indirect marketing channel
C
forward channel
D
hybrid channel
17. If a company sells its product directly to the consumer without using any
intermediaries, it is using a(n):
A
direct marketing channel.
B
indirect marketing channel.
C
forward channel.
D
hybrid channel.
18. Avon, Amway, and Tupperware use which of the following forms of channel
distribution?
A
direct marketing channel
B
indirect marketing channel
C
forward channel
D
fashion channel
19. A(n) _________________ is a channel that contains one or more intermediary levels.
A
direct marketing channel
B
indirect marketing channel
C
forward channel
D
synthetic channel
20. Makers of televisions, cameras, tires, furniture, and major appliances normally use
which of the following distribution channel forms?
A
direct marketing channel
B
indirect marketing channel
C
horizontal channel
D
synthetic channel
21. Using manufacturer’s representatives or sales branches is usually a characteristic of
which of the following channel forms?
A
business marketing channels
B
customer marketing channels
C
service marketing channels
D
direct marketing channels
22. All institutions in a marketing channel are normally connected by several types of
flows. Which of the following is NOT one of those flows?
A
physical flow
B
promotion flow
C
flow of ownership
D
regulatory flow
23. Disagreement over the goals and roles of marketing channel members is called:
A
channel challenge.
B
channel co-dependence.
C
channel frustration.
D
channel conflict.
24. When channel conflict occurs, it can occur at the same level of the channel. This form
of conflict is called:
A
parallel conflict.
B
system conflict.
C
horizontal conflict.
D
vertical conflict.
25. If Pizza Inn franchisees complain that other Pizza Inn franchisees are cheating on
ingredients, giving poor service, and are hurting the overall Pizza Inn image, these
complaints are indicative of a __________________.
A
parallel conflict
B
system conflict
C
horizontal conflict
D
vertical conflict
26. Conflicts between different levels of the same channel of distribution are referred to
as:
A
B
C
D
horizontal conflicts.
vertical conflicts.
layer-based conflicts.
parallel conflicts.
27. When a company like Coca-Cola has disagreements with some of its bottlers over
business practices, it is a form of:
A
horizontal conflict.
B
vertical conflict.
C
layer-based conflict.
D
parallel conflict.
28. Cooperation, role assignment, and conflict management in the channel of distribution
are attained through strong channel:
A
power.
B
positioning.
C
leadership.
D
threats.
29. One way to overcome traditional conflicts found in conventional channels of
distribution is to construct a:
A
synchronized channel of distribution.
B
global channel of distribution.
C
Norezi channel of distribution.
D
vertical channel of distribution.
30. When one or more independent producers, wholesalers, and retailers operating as
separate businesses make up the channel of distribution, it comprises which type of
distribution channel?
A
power-based
B
horizontal
C
vertical
D
conventional
31. If independent producers, wholesalers, and retailers align together but still seek
individually to maximize profits, even at the expense of profits for the system as a whole,
the group is most likely aligned in a:
A
conventional distribution channel.
B
power-based distribution channel.
C
horizontal distribution channel.
D
vertical distribution channel.
32. When producers, wholesalers, and retailers act as a unified system, they comprise a:
A
conventional marketing system.
B
power-based marketing system.
C
horizontal marketing system.
D
vertical marketing system.
33. Which of the following marketing systems is characterized by a channel of
distribution where one channel member owns the others, has contracts with them, or has
so much power that they all cooperate?
A
conventional marketing systems
B
power-based marketing systems
C
vertical marketing systems
D
horizontal marketing systems
34. All of the following would be considered to be forms of a vertical marketing system
(VMS) EXCEPT:
A
corporate.
B
contractual.
C
global.
D
administered.
35. A(n) ____________________ is a vertical marketing system that combines
successive stages of production and distribution under single ownership.
A
power-based VMS
B
corporate VMS
C
contractual VMS
D
administered VMS
36. Sears obtains more than 50 percent of its goods from companies that it partly or
wholly owns. This would be an example of a(n):
A
power-based VMS.
B
corporate VMS.
C
contractual VMS.
D
administered VMS.
37. A(n) ______________________ is a vertical marketing system in which independent
firms at different levels of production and distribution join together through contracts to
obtain more economies or sales impact than they could achieve alone.
A
power-based VMS
B
corporate VMS
C
contractual VMS
D
administered VMS
38. Independent Grocers Alliance (IGA), Western Auto, and Do It Best hardware are all
examples of:
A
franchise organizations.
B
retailer cooperatives.
C
manufacturer-sponsored retailer franchise systems.
D
wholesaler-sponsored voluntary chains.
39. If a retailer joins other retailers in organizing a new, jointly owned business to carry
on wholesaling and possibly production, the retailer has formed a:
A
retailer kiosk.
B
retailer-sponsored voluntary chain.
C
retailer cooperative.
D
franchise.
40. Most motels and fast-food restaurants are considered to be:
A
retailer cooperatives.
B
voluntary chains.
C
franchise organizations.
D
administered VMS organizations.
41. The type of franchise operation used by the automobile industry is usually a:
A
service-firm sponsored franchise system.
B
manufacturer-sponsored retailer franchise system.
C
manufacturer- sponsored wholesaler franchise system.
D
service-firm sponsored direct channel franchise system.
42. Which type of vertical marketing system coordinates the stages of production and
distribution through the size and power of one of the parties?
A
administered VMS
B
independent VMS
C
contractual VMS
D
dependent VMS
43. A ___________________ is a channel arrangement in which two or more companies
at one level join together to follow a new marketing opportunity.
A
vertical marketing system
B
parallel marketing system
C
diversified marketing system
D
horizontal marketing system
44. When Coca-Cola and Nestle formed a joint venture to market a ready-to-drink coffee
and tea worldwide, the type of marketing system that was formed would best be
described as being a:
A
vertical marketing system.
B
parallel marketing system.
C
diversified marketing system.
D
horizontal marketing system.
45. A multichannel distribution system in which a single firm sets up two or more
marketing channels to reach one or more customer segments is called a(n):
A
vertical marketing channel.
B
parallel marketing channel.
C
hybrid marketing channel.
D
horizontal marketing channel.
46. IBM at one time only sold through their own sales force. Today, however, the market
has caused changes in IBM’s distribution philosophy. The company now has 18 new
channels. The correct description of this form of marketing would be to characterize
IBM’s approach as being one where ____________________ are used.
A
vertical marketing channels
B
parallel marketing channels
C
hybrid marketing channels
D
horizontal marketing channels
47. What is one of the common complaints about a hybrid marketing channel and its
effectiveness?
A
expanded sales functions
B
expanded market coverage
C
expanded global networks
D
harder to control and more conflict
48. The displacement of traditional resellers from a marketing channel by radical new
types of intermediaries is called:
A
regeneration.
B
bounded distribution.
C
disintermediation.
D
territoriality.
49. Traditional intermediaries, to avoid being swept aside in the new wave of
disintermediation, must find new ways to:
A
generate profits.
B
advertise.
C
form binding networks.
D
add value in the supply chain.
50. If a company were seeking to design a channel system, the first step would be to:
A
analyze consumer-service needs.
B
set the channel objectives and constraints.
C
analyze marketing intermediaries.
D
factor in (or out) foreign middlemen alternatives.
51. Another term or phrase for a marketing channel is:
A
customer value delivery system.
B
push-pull system.
C
service system.
D
flow system.
52. After a company has defined its channel objectives, it should next identify its:
A
B
C
D
profit centers.
major channel alternatives.
selection process.
motivation system.
53. When a marketer is in the process of identifying its major channel alternatives, it
should determine all of the following EXCEPT: (Choose the LEAST LIKELY.)
A
the ownership of the intermediary.
B
the types of intermediaries.
C
the number of intermediaries.
D
the responsibility of each channel member.
54. The strategy whereby a company stocks its products in as many outlets as possible is
called:
A
intensive distribution.
B
exclusive distribution.
C
selective distribution.
D
closed distribution.
55. If a company seeks to maximize brand exposure, which of the following distribution
alternatives would be the correct choice?
A
intensive distribution
B
exclusive distribution
C
selective distribution
D
open distribution
56. Giving a limited number of dealers the exclusive right to distribute the company’s
products in their territories is called _________________.
A
intensive distribution.
B
exclusive distribution.
C
selective distribution.
D
closed distribution.
57. Rolls Royce uses which of the following distribution formats?
A
intensive distribution
B
exclusive distribution
C
selective distribution
D
open distribution
58. Maytag, Whirlpool, and General Electric prefer which of the following distribution
formats to distribute the majority of their products?
A
intensive distribution
B
exclusive distribution
C
selective distribution
D
open distribution
59. The use of more than one, but fewer than all, of the intermediaries who are willing to
carry the company’s products is characteristic of which of the following distribution
formats?
A
intensive distribution
B
exclusive distribution
C
selective distribution
D
open distribution
60. Estimating the costs of selling different volumes through each proposed channel is
part of which decision area used in evaluating the major channel alternatives?
A
promotional criteria
B
economic criteria
C
control criteria
D
adaptive criteria
61. All of the following would be considered to be positive motivators to be applied to
channel members by other channel members EXCEPT:
A
higher margins.
B
ownership in the supplying company.
C
special deals.
D
display allowances.
62. When a seller of a product requires that its dealers not handle competitors’ products,
the seller’s strategy is called:
A
multilevel distribution.
B
prohibitive retailing.
C
exclusive dealing.
D
bonded partnering.
63. Tying agreements, though not necessarily illegal, do tend to violate the ___________
if they tend to lessen competition substantially.
A
Robinson-Patman Act
B
Sherman Anti-trust Act
C
Clayton Act
D
Hatfield Act
64. Which of the following terms is similar to the term “marketing logistics?”
A
channel of distribution
B
vertical integration of distribution
C
physical distribution
D
horizontal distribution
65. ______________ is the tasks involved in planning, implementing, and controlling the
physical flow of materials, final goods, and related information from points of origin to
points of consumption to meet customer requirements at a profit.
A
A channel of distribution
B
C
D
Vertical integration of distribution
Horizontal distribution
Physical distribution
66. Customer-centered marketing logistics thinking starts with:
A
products at the plant and tries to find low-cost solutions to get them to
customers.
B
the marketplace and works backwards to the factory.
C
retailers and identifies their problems as a way to satisfy the ultimate consumer.
D
wholesalers (as gatekeepers) and identifies their problems as being the secret to
successful distribution.
67. Managing value-added flows of materials, final goods, and related information
between suppliers, the company, resellers, and final users is called:
A
a channel of distribution.
B
marketing network analysis.
C
supply chain management.
D
conscription flow management.
68. Moving broken, unwanted, or excess products returned by consumers or resellers is
called __________ distribution.
A
outbound
B
inbound
C
reverse
D
salvage
69. About ___________ percent of an average product’s price is accounted for by
shipping and transportation.
A
5
B
15
C
18
D
22
70. The goal of the marketing logistics system should be to provide:
A
a targeted level of promotional support.
B
a targeted level of customer service at the least cost.
C
a targeted level of transportation expense ratio.
D
a targeted level of field support.
71. All of the following are considered to be major logistics functions EXCEPT:
A
promotion to wholesalers and retailers.
B
order processing.
C
inventory management.
D
transportation.
72. Deciding on the number of and location for stocking facilities for storage of products
is part of which of the following physical distribution decisions?
A
order processing
B
warehousing
C
inventory
D
transportation
73. A large, highly automated warehouse designed to receive goods from various plants
and suppliers is called a:
A
storage bin.
B
collection point.
C
distribution center.
D
demarcation facility.
74. The mode of transportation that accounts for the largest percentage of cargo moved in
the United States is:
A
rail.
B
truck.
C
water.
D
pipeline.
75 ______ offers the opportunity to buy direct from the supplier with reduced costs and
shorter cycle.
A
Reintermediation
B
Disintermediation
C
Countermediation
D
Contramediation
E
None of the above
Answer of MCQ
1-c
2-b
13-b
24-c
35-b
46-c
57-b
68-c
3-c
14-c
25-c
36-b
47-d
58-c
69-b
4-c
15-c
26-b
37-c
48-c
59-c
70-b
5-d
16-a
27-b
38-d
49-d
60-b
71-a
6-d
17-a
28-c
39-c
50-a
61-b
72-b
7-c
18-a
29-d
40-c
51-a
62-c
73-c
8-a
19-b
30-d
41-b
52-b
63-c
74-b
9-a
20-b
31-a
42-a
53-a
64-c
75-b
10-d
21-a
32-d
43-d
54-a
65-d
11-a
22-d
33-c
44-d
55-a
66-b
12-b
23-d
34-c
45-c
56-b
67-c