Chapter 2The Channel Participants

MULTIPLE CHOICE
1. Which statement about Gazelle is false?
a. Gazelle distributes electronic products using its online channel.
b. Gazelle buys, takes title and stores electronic products.
c. Gazelle pays for electronic products up front, before it has a buyer for them.
d. It is part of a $3 billion industry that distributes used electronic e!uipment.
e. "istribution channels are not ade!uately used by Gazelle..
#$%& ' (p. 33)
*. +he fundamental determinant of ,hether a firm is a member of a marketing channel is&
a. If the firm performs distribution tasks.
b. If the firm is considered to be important to the channel manager.
c. If the firm performs negotiatory functions.
d. If the firm performs tasks that are necessary to make products or ser-ices a-ailable
to ultimate buyers.
e. If the firm performs ancillary tasks.
#$%& . (p. 3/)
3. +he basic di-isions of the marketing channel are&
a. 0uyers and sellers.
b. 0uyers, sellers and facilitators.
c. .onsumer and industrial markets.
d. 1roducers and manufacturers2 intermediaries2 and final users.
e. .ontactual organizations and non3contactual organizations.
#$%& " (p. 3/)
/. In the commercial channel, participants ,ho are specifically e4cluded are&
a. 1roducers.
b. 5anufacturers.
c. Wholesale and retail intermediaries.
d. .onsumer and industrial final users.
e. #gents and brokers.
#$%& " (p. 3/)
*31
+he .hannel 1articipants
6. 7777777777 are members of the target market.
a. 8inal users
b. 9etailers
c. Wholesalers
d. 1roducers
e. +ransportation firms
#$%& # (p. 3/)
:. 8acilitating agencies&
a. #re members of the marketing channel.
b. 1erform non3negotiatory functions.
c. #re of little importance to the operation of the channel.
d. #re seldom called on by the channel manager.
e. #re members of the commercial channel.
#$%& 0 (p. ::)
;. Which of the follo,ing is not a facilitating agency?
a. 8lo,1ipeline, Inc.
b. 8irst $ational 0ank of .hicago
c. 0rooke #d-ertising, Inc.
d. 0inney < %mith
e. 8ederal '4press
#$%& "
=. In the conte4t of the management perspecti-e used in the te4t, it is appropriate to -ie,
final users as&
a. Intermediaries.
b. 8acilitating agencies.
c. Intermediate users.
d. +arget markets.
e. 1roducers.
#$%& "
>. +he technology and scale economies that enable producers and manufacturers to operate
at a lo, a-erage cost for production are&
a. #lso usually present in the performance of distribution tasks.
b. '-en greater ,hen it comes to performing distribution tasks.
c. ?ften lacking in the performance of distribution tasks.
d. @ess important to the efficient performance of distribution tasks.
e. 'asily attainable ,hen performing distribution tasks.
#$%& . (p. 3;33=)
*3*
5arketing .hannels =e
1. IntermediariesA a-erage costs cur-es for distribution tend to be 7777777777 those of
manufacturers.
a. Bigher than
b. @o,er than
c. +he same as
d. @onger than
e. %horter than
#$%& 0 (p. 3:33=)
11. +o perform distribution tasks efficiently, a firm needs all of the follo,ing e4cept&
a. '4pertise.
b. 'conomies of scale.
c. 'conomies of scope.
d. +o maintain high in-entory le-els.
e. Bigh production -olumes.
#$%& " (p. 3:33=)
1*. 1rocter < Gamble and Cellogg often face 7777777777 a-erage costs for distribution
tasks ,hen they attempt to perform them by themsel-es.
a. Bigh
b. @o,
c. 5edium
d. '4tremely lo,
e. 5arginal
#$%& #
13. .layton +ennis '!uipment, a manufacturer, cannot perform distribution tasks efficiently
so it uses Dackson %ports '!uipment as a ,holesaler to distribute its products in the
5id,est. .layton likely is inefficient in performing distribution tasks because&
a. Dackson is better positioned to select and use facilitating agencies.
b. .laytonAs fi4ed costs are too high.
c. Dackson can spread its fi4ed costs across products from multiple manufacturers.
d. .laytonAs marginal re-enue e4ceeds its marginal costs.
e. .layton has lo, a-erage production costs.
#$%& .
*33
+he .hannel 1articipants
1/. +he Census of Wholesale Trade classifies ,holesalers into the follo,ing three categories&
a. 5erchant ,holesalers, manufacturersA sales branches, and public ,arehouses.
b. %ales branches and offices, company3o,ned stores, and merchant ,holesalers.
c. 5erchant ,holesalers, brokers, and commission merchants and agent ,holesalers.
d. 5anufacturersA sales branches and offices2 agents, brokers, and commission
merchants2 and merchant ,holesalers.
e. 5erchant ,holesalers, manufacturersA facilitators, brokers, and independent
producers.
#$%& " (p. 3=)
16. +he Census of Wholesale Trade classifies ,holesalers as all of the follo,ing e4cept&
a. 5erchant ,holesalers.
b. 8ull3function or limited function ,holesalers.
c. 1= groupings based on the kind of business.
d. #gents and brokers.
e. 5anufacturersA sales branches and offices.
#$%& 0 (p. 3=33>)
1:. +he Census of Wholesale Trade classifies ,holesalers into 7777777777 kinds of business
groups.
a. */
b. 1=
c. 1*
d. 1
e. 3:
#$%& 0 (p. 3>)
1;. 77777777777 are firms that primarily buy, take title to, store, and physically handle
products.
a. #gents
b. .ommission merchants
c. 5anufacturersA offices
d. 0rokers
e. 5erchant ,holesalers
#$%& ' (p. 3=)
*3/
5arketing .hannels =e
1=. "uring the decade from 1>>* to **, .ensus data sho, that the percentage of total
,holesale sales enEoyed by merchant ,holesalers&
a. Increased slightly.
b. "ecreased slightly.
c. %tayed the same.
d. Increased by o-er 1F.
e. "ecreased by almost one third.
#$%& 0 (p. /)
1>. #gents, brokers, and commission merchantsA percentage of total ,holesale sales in **
,as&
a. F to =F.
b. >F to 1/F.
c. 16F to *F.
d. *1F to 3F.
e. 31F to /F.
#$%& 0 (p. /)
*. In recent years, trends in ,holesaling are sho,ing a tendency to,ards&
a. .onsolidation.
b. # decrease in a-erage size.
c. 0ecoming more like retailers than ,holesalers.
d. ?perating only in .yberspace.
e. # decrease in a-erage size.
#$%& # (p. /3/1)
*1. 5ost ,holesalers could be characterized ,ith regard to their size as&
a. Giant enterprises.
b. @arge businesses.
c. Gery small Hmom and popI businesses.
d. 9elati-ely small businesses.
e. .onglomerates.
#$%& " (p. /1)
**. #bsolute sales of all three types of ,holesalers 777777777 during the period 1>>* to
**.
a. "ecreased
b. %tayed the same
c. Increased substantially
d. 8ell drastically
e. Increased by less than a fraction of one percent
*36
+he .hannel 1articipants
#$%& . (p. /1)
*3. %ales patterns of the different types of ,holesalers since 1>/= ha-e&
a. 0een -ery similar for all types.
b. Garied across different types of ,holesalers.
c. Increased sharply only for merchant ,holesalers.
d. Bad almost no influence on their relati-e market shares.
e. Increased only for agents, brokers, and commission merchants.
#$%& 0
*/. 'conomic concentration in terms of percentage of total ,holesale sales enEoyed by most
merchant ,holesalers in their respecti-e line of trade is&
a. 9elati-ely lo,.
b. Gery high.
c. '4tremely high and getting higher.
d. Gery high but falling rapidly.
e. Gery lo, and falling rapidly.
#$%& # (p. /*)
*6. 5erchant ,holesalers are particularly ,ell suited for performing all of the follo,ing
distribution tasks for their suppliers e4cept&
a. 1ro-iding market co-erage.
b. 1ro-iding lo,3cost sales contacts o-er a ,ide geographical area.
c. 1ro-iding lo,3cost ,arehousing and deli-ery.
d. 1rocessing orders.
e. %er-ing as the firmsA outside sales force.
#$%& ' (p. /*)
*:. 5erchant ,holesalers perform all of the follo,ing functions e4cept&
a. 1rocessing orders.
b. 1ro-iding market co-erage.
c. Bolding in-entory.
d. %elling merchandise to final users.
e. ?ffering customer support.
#$%& " (p. /*)
*3:
5arketing .hannels =e
*;. %e-eral studies, including the 0ro,n and Berring report, suggest the ,holesalerAs role in
7777777777 ,ill gro, e-en more important to manufacturers.
a. pro-iding sales contacts
b. holding in-entory
c. order processing
d. breaking bulk
e. e4tending credit and financial assistance
#$%& # (p. //)
*=. .ustomer support pro-ided by merchant ,holesalers to manufacturers is often referred to
as&
a. 9etailersA ser-ices.
b. 5anufacturersA ser-ices.
c. Galue3added ser-ices.
d. 1roducersA ser-ices.
e. Genuine ,holesale ser-ices.
#$%& . (p. /6)
*>. 5erchant ,holesalers often perform all of the follo,ing distribution tasks for customers
e4cept&
a. 9endering ser-ices pertaining to the sale of goods.
b. 1ro-iding customer ser-ice.
c. '4tending credit.
d. 1ro-iding technical support.
e. #ssuring product a-ailability.
#$%& # (p. /*3//)
3. 7777777777777 refers to the ,holesalerAs ability to bring together an assortment of
products from a -ariety of manufacturers.
a. 0reaking bulk
b. +echnical support
c. ?rder processing
d. #ssortment con-enience
e. 1roduct line analysis
#$%& " (p. /:)
*3;
+he .hannel 1articipants
31. #gents and brokers&
a. "o not take title to goods.
b. #re not considered members of the commercial channel.
c. 9epresent 1 or * manufacturers.
d. Work on a Jcash and carryA basis.
e. 1hysically hold the manufacturerAs in-entory.
#$%& # (p. /;)
3*. #gents, brokers, and commission merchants generally&
a. take title to products.
b. do not take title to products.
c. are listed as Hlimited function ,holesalersI in the Census of Wholesale Trade.
d. are really the same thing as merchant ,holesalers.
e. operate a -ery narro, range of products or ser-ices.
#$%& 0 (p. /;)
33. 5anufacturersA agents are often referred to as&
a. 5anufacturerAs representati-es.
b. 9etailers.
c. WholesalerAs cooperati-es.
d. %ales support staff.
e. @imited function ,holesalers.
#$%& # (p. /=)
3/. Which of the follo,ing is a false statement about the manufacturerAs sales branches of
0ella 5anufacturing, Inc.?
a. +hey are all o,ned by 0ella.
b. +he branches are operated by 0ella.
c. +he branches are physically separate from 0ellaAs manufacturing plants.
d. +heir main purpose is to distribute the manufacturerAs products.
e. +he branches ser-ice regions of the country.
#$%& ' (p. 3/)
36. # basic phenomenon in the ranks of retailers since 1>/= has been&
a. +he tendency to,ard larger3scale retailers as measured by a-erage sales per store.
b. +he large increase in the number of retail stores for each census period since 1>/=.
c. +he increase of a-erage sales per store.
d. +he consistent large decline in the number of retail stores.
e. +he decrease in the size of retail establishments.
#$%& . (p. 61)
*3=
5arketing .hannels =e
3:. 0et,een 1>/= and ** for retail establishments&
a. #-erage sales and numbers of stores increased.
b. #-erage sales increased and the number of stores decreased.
c. #-erage sales decreased and the number of stores decreased.
d. #-erage sales decreased and the number of stores increased.
e. +otal sales increased and the number of stores increased.
#$%& 0 (p. 61)
3;. +rends in retailing in the K.%. suggest&
a. +he number of stores is gro,ing rapidly.
b. #-erage dollar sales per store has increased.
c. +he number of retail stores has fallen by 6 percent in the last *6 years.
d. # mo-ement by retailers to reduce the number of distribution tasks they perform.
e. # total sales -olume greater than $6 trillion.
#$%& 0 (p. 61)
3=. General merchandise, single line stores, and specialty stores are so named based on
,hich of the follo,ing classification bases?
a. ?,nership of establishments
b. %ize of establishments
c. Cind of business
d. 5ethod of consumer contact
e. @egal form of organization
#$%& . (p. 6)
3>. Which of the follo,ing ,ould not be classified as retailers?
a. factory outlets
b. -ending machines
c. mail order catalogs
d. +G shopping sho,s
e. food broker
#$%& ' (p. 6)
/. "istribution tasks that ,ere formerly the pro-ince of the ,holesaler or manufacturer ha-e
increasingly&
a. 0een shifted to facilitating agencies.
b. 0een shifted off to smaller ,holesalers.
c. 0een neglected by manufacturers and ,holesalers.
d. 0een taken o-er by larger retailers.
e. 0een shifted to independent agents or brokers.
#$%& " (p. ::)
*3>
+he .hannel 1articipants
/1. %tores that dominate a particular line of merchandise and ha-e large shares of the market
are often referred to as&
a. "i-ersified retailers.
b. %pecialty retailers.
c. .ategory killers.
d. "epartment stores.
e. 5ass merchandisers.
#$%& . (p. :3)
/*. +he potential of retail intermediaries for performing distribution tasks&
a. Bas increased.
b. Is likely to decrease in the future.
c. Bas not changed.
d. Will be a -alue added function.
e. Will only change if the economy gro,s o-er 6F per year.
#$%& # (p. ::)
/3. +he Census of Retail Trade classified retailers into 77777 maEor groups by kind of
business.
a. 1*
b. 1:
c. 1=
d. 1
e. =
#$%& # (p. 61)
//. 'conomic concentration in many kinds of retail businesses is&
a. Getting lo,er.
b. Increasing.
c. %taying the same.
d. Bighly -ariable across time.
e. Gery -olatile.
#$%& 0 (p. 61)
/6. Girtually all retailers ser-e as&
a. 0uying agents for the producer.
b. %elling agents for their suppliers.
c. #d-ertising agents for manufacturers.
d. @imited function businesses.
e. +he e4ternal marketing staff for manufacturers.
#$%& 0
*31
5arketing .hannels =e
/:. #ll of the follo,ing are reasons for retailers gaining po,er in the marketing channels
e4cept&
a. Gro,ing size.
b. Kse of ad-anced technology.
c. Increased e4pertise of managers.
d. Increased use of the marketing concept.
e. .oncentration of retailers.
#$%& . (p. :3)
/;. 9etailers ha-e been using scanner data to perform all of the follo,ing e4cept&
a. 1ay and promotion analysis.
b. 1romotion and pricing decisions.
c. %helf management.
d. "irect product profitability.
e. 8orecasting.
#$%& # (p. :3)
/=. H+hreetailingI is a term used to describe&
a. 9etailers located in 3 or more countries.
b. +he use of 3 types of promotion techni!ues.
c. +he integration of technology for in3store, print, and tele-ision ad-ertising.
d. +hree main customer target markets.
e. +he con-ergence of in3store, catalog, and online channels.
#$%& ' (p. :3)
/>. CohlAs discount department store has used all of the follo,ing techni!ues of marketing
strategy e4cept&
a. Kse of a JracetrackA layout to e4pose customers to a ma4imum amount of
merchandise.
b. #llo, customers to spend less time in the store but buy more merchandise.
c. %ell brand name apparel.
d. "ifferentiate its store layout from competitors.
e. Increase use of multi3media ad-ertising techni!ues.
#$%& ' (p. :/)
*311
+he .hannel 1articipants
6. Which of the follo,ing is a false statement about 8resh 5arketAs use of marketing
strategy to reach its target market?
a. Bas identified its target market as educated, high3income consumers in upscale
neighborhoods.
b. +he store size is larger than those of maEor competitors.
c. .lassical music is played in all stores.
d. +he lighting in the store is uni!ue and ,arm.
e. +he decor is -ery elegant.
#$%& 0 (p. :/)
61. +he term HgatekeeperI as used in the te4tbook refers to
a. +he po,er of manufacturers in the channel.
b. +he po,er of retailers in the channel.
c. +he po,er of consumers in the channel.
d. +he po,er of suppliers in the channel.
e. +he po,er of manufacturerAs representati-es in the channel.
#$%& 0 (p. :/)
*31*