Marketing An introduction 6th Canadian Edition By Armstrong – Test Bank

Chapter 11 Marketing Channels

1) Which of the following would be considered an upstream partner in a company’s supply chain?
A) a firm that resells a finished product and shares the net sales with the producer
B) a firm that provides technical expertise in the production of a product
C) a firm that markets a product to consumers through social media
D) a firm that buys products at wholesale cost from the company
E) a firm that exclusively markets a product to other businesses
Answer: B
Diff: 2 Type: MC Page Ref: 391
Skill: Concept
Objective: 11-1

2) Which of the following is true of downstream channels in a company’s supply chain?
A) They provide their expertise in product design.
B) They manufacture the products of the company.
C) They supply raw materials and components to the company.
D) They contribute financially to the company during production.
E) They form an intermediary link between the company and its customers.
Answer: E
Diff: 2 Type: MC Page Ref: 391-392
Skill: Concept
Objective: 11-1

3) A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who “partner” with each other to improve the performance of the entire system.
A) manufacturing chain
B) distribution centre
C) marketing intermediary
D) value delivery network
E) disintermediation system
Answer: D
Diff: 2 Type: MC Page Ref: 392
Skill: Concept
Objective: 11-1

4) ________ are sets of interdependent organizations that help make the product or service of a company available for use by consumers or business users.
A) Research and development channels
B) Upstream channels
C) Marketing channels
D) Raw materials suppliers
E) Backward integration chains
Answer: C
Diff: 2 Type: MC Page Ref: 392
Skill: Concept
Objective: 11-1
5) Producers use marketing intermediaries because they ________.
A) create greater efficiency in making goods available to target markets
B) supply inexpensive raw materials for manufacturing products
C) provide technical expertise for faster production
D) monitor day-to-day activities during production
E) form a part of the company’s direct channel
Answer: A
Diff: 2 Type: MC Page Ref: 393
Skill: Concept
Objective: 11-1

6) From the economic system’s point of view, the role of marketing intermediaries is to ________.
A) facilitate the production of products without direct customer feedback
B) help a company develop a direct channel selling system
C) buy small quantities of products from producers and break them down into narrow assortments for customers
D) increase the amount of work that must be done by producers and consumers
E) transform the assortments of products made by producers into the assortments wanted by consumers
Answer: E
Diff: 2 Type: MC Page Ref: 393
Skill: Concept
Objective: 11-1

7) Which of the following is true of a direct marketing channel?
A) It increases the number of channel transactions.
B) It enables retailers to reach many customers.
C) It does not use any intermediaries.
D) It gives limited distribution control to producers.
E) It creates a complex distribution channel.
Answer: C
Diff: 2 Type: MC Page Ref: 398
Skill: Concept
Objective: 11-3

8) Which of the following creates the shortest distribution channel between a producer and a customer?
A) retail marketing
B) indirect marketing
C) share marketing
D) direct marketing
E) wholesale marketing
Answer: D
Diff: 2 Type: MC Page Ref: 398
Skill: Concept
Objective: 11-3
9) In which of the following situations is a producer guaranteed full control over product sales?
A) a corporate marketing channel
B) a direct marketing channel
C) a contractual distribution channel
D) a horizontal marketing system
E) an administered marketing system
Answer: B
Diff: 2 Type: MC Page Ref: 398
Skill: Concept
Objective: 11-3

10) A firm that uses direct marketing would most likely sell its products through ________.
A) one marketing intermediary
B) big box retailers
C) large wholesalers
D) multiple intermediaries
E) the company Web site
Answer: E
Diff: 2 Type: MC Page Ref: 398
Skill: Concept
Objective: 11-3