Marketing and Distribution Systems Study Guide Questions
Course Introduction
Marketing and Distribution Systems explores the integral processes involved in bringing products and services from producers to consumers. The course examines the role of marketing channels, distribution logistics, and supply chain management in ensuring efficient product flow and customer satisfaction. Students will analyze various channel structures, intermediaries, and the strategies used to reach target markets effectively. Topics include retailing, wholesaling, transportation, inventory management, and the impact of digital platforms on traditional distribution systems. Emphasis is placed on adapting distribution strategies to evolving consumer preferences and technological advancements in a global business environment.
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Marketing Channels A Management View 8th Edition by Bert Rosenbloom
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Page 2
Chapter 1: Marketing Channel Concepts
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Sample Questions
Q1) The five flows in marketing channels discussed in the text are
A) Product, negotiation, ownership, information, payment.
B) Information, advertising, promotion, product, ownership.
C) Promotion, information, ownership, negotiation, transportation.
D) Negotiation, product, payment, information, promotion.
E) Ownership, product, negotiation, promotion, information.
Answer: E
Q2) The only major difference between the specialization and division of labor principle as applied to a production versus a distribution situation is:
A) Production tasks are often allocated intra-organizationally, while distribution tasks are frequently allocated inter-organizationally.
B) Distribution tasks are much less amenable to specialization and division of labor than production tasks.
C) Only logistics tasks are capable of being broken down for specialization.
D) Production tasks are more easily divided into separate tasks.
E) It is not possible to attain an optimal allocation of distribution tasks.
Answer: A
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Chapter 2: The Channel Participants
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Sample Questions
Q1) Distribution tasks that were formerly the province of the wholesaler or manufacturer have increasingly:
A) Been shifted to facilitating agencies.
B) Been shifted off to smaller wholesalers.
C) Been neglected by manufacturers and wholesalers.
D) Been taken over by larger retailers.
E) Been shifted to independent agents or brokers.
Answer: D
Q2) Economic concentration in many kinds of retail businesses is:
A) Getting lower.
B) Increasing.
C) Staying the same.
D) Highly variable across time.
E) Very volatile.
Answer: B
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Chapter 3: The Environment of Marketing Channels
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Sample Questions
Q1) The channel manager must analyze the external environment in terms of its impact on:
A) Target markets.
B) Facilitating agencies.
C) Intermediaries.
D) All channel participants.
E) Retailers and brokers.
Answer: D
Q2) "Competition between an independent hardware store and the hardware department of a Sears store is an example of:
A) Vertical competition.
B) Channel system competition.
C) Horizontal competition.
D) Intertype competition.
E) Vertical marketing competition.
Answer: D
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Page 5
Chapter 4: Behavioral Processes in Marketing Channels
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Q1) Which of the following statements regarding appraising the effects of conflict on the channel is true?
A) At present, the conflict index is used in most consumer products channels.
B) At present, most appraisals rely on the channel manager's subjective judgment.
C) At present, most channel managers use a linear scale measuring conflict intensity and frequency.
D) At present, the channel manager uses a scale to relate frequency of disagreements to channel member performance.
E) Channel managers that use objective scales of analysis obtain the best results for identifying channel conflict.
Q2) Conflict between Burger King and its franchisees has occurred because:
A) Increases in Burger King's product line.
B) Burger King raising fees it charges its franchisees.
C) Greater push by Burger King to use online web sites to market its burgers.
D) Burger King franchisees were forced to set low prices for some menu items.
E) Burger King forced improvements of franchisee profit margins.
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Chapter 5: Strategy in Marketing Channels
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Sample Questions
Q1) Many manufacturers have neglected distribution because:
A) Product, price and promotion are more difficult to control.
B) Independent channel members can be difficult to control.
C) It takes too long for distribution to impact market share.
D) The decisions are difficult to make.
E) It is hard to obtain the information.
Q2) ______________ refers to a firm's attainment of an advantageous position in the market relative to competitors.
A) Channel and placement strategy
B) Differential advantage
C) Respect
D) Power
E) Marketing strategy
Q3) DPA stands for:
A) Distribution price allocation.
B) Distribution product advertising.
C) Distribution portfolio analysis.
D) Distribution production alternatives.
E) Distribution promotion analysis.
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Page 7
Chapter 6: Designing Marketing Channels
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Q1) Channel design refers to all of the following except:
A) The development of new channels.
B) The modification of existing channels.
C) The allocation of distribution tasks among channel members.
D) The selection of channel members.
E) The development of methods used to motivate channel members.
Q2) For distant manufacturers it can be generalized that:
A) The use of intermediaries will increase distribution costs.
B) The use of intermediaries will decrease distribution costs.
C) A direct channel from distant manufacturer to consumer is most efficient with the lowest distribution costs.
D) The use of intermediaries increase product costs because of increased trucking/shipping expenses.
E) Profits are constant regardless of the use of intermediaries because all distribution costs are passed onto the consumer.
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8
Chapter 7: Selecting the Channel Members
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Q1) As a general rule,the higher the level of selectivity of distribution:
A) The greater the emphasis on selection.
B) The less the emphasis on selection.
C) The lower the emphasis on finding prospective channel members.
D) The fewer the criteria used in selection.
E) The more crucial the need to place products in all appropriate outlets.
Q2) Trade sources used for finding prospective channel members include all of the following except:
A) Local newspapers.
B) Trade associations.
C) Trade shows.
D) "Grapevine".
E) Other firms selling similar products.
Q3) The selection of channel members:
A) Always involves basic changes in channel structure.
B) Is of most importance to vertically integrated manufacturers.
C) Is sometimes necessary even though the basic channel structure remains the same.
D) Is one of the first phases of channel design.
E) Is the same as choosing channel structure.
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Page 9
Chapter 8: Target Markets and Channel Design Strategy
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Sample Questions
Q1) By 2010,consumer online sales reached approximately what level of sales?
A) about $1 billion
B) about $10 billion
C) about $50 billion
D) about $100 billion
E) under $175million
Q2) If market geography and market size are both increasing,the average cost of serving buyers is sure to:
A) Increase.
B) Decrease.
C) Remain the same.
D) Cannot be determined with the information provided.
E) Increase at a faster rate than additional revenues.
Q3) Market density refers to:
A) The number of buyers in a geographic unit.
B) The absolute number of buyers per intermediary.
C) The ratio of dollar sales to number of buyers.
D) The ratio of retail outlets to wholesalers.
E) The number of intermediaries in a geographic unit.
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Page 10
Chapter 9: Motivating the Channel Members
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Sample Questions
Q1) Which of the following represents a ranking of channel member support programs from the least comprehensive to the most comprehensive?
A) Partnership, cooperative, distribution programming
B) Distribution programming, partnership, cooperative
C) Cooperative, distribution programming, partnership
D) Partnership, distribution programming, cooperative
E) Cooperative, partnership, distribution programming
Q2) Which of the following is not typically mentioned as an advantage of distributor advisory councils?
A) They enable channel members to engage in price maintenance.
B) They provide for face-to-face dialog.
C) They provide a vehicle for learning about channel member needs and problems.
D) They offer a "neutral" setting to discuss controversial issues.
E) They provide for representation from the manufacturer as well as channel members.
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11
Chapter 10: Product Issues in Channel Management
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Q1) During the growth stage of the product life cycle,two overriding issues for channel management are:
A) Providing for adequate product availability and considering changes in channel structure.
B) Monitoring competitive products and dropping poorly performing channel members.
C) Providing heavy promotional support and changing the channel structure.
D) Monitoring competitive products and providing for adequate product availability.
E) Educating channel members and evaluating their performance.
Q2) Product decisions __________ channel management decisions.
A) affect
B) are dependent upon C) are independent of D) are made before E) are made after
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Chapter 11: Pricing Issues in Channel Management
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Q1) The __________ often causes a problem with price promotions.
A) delivery of enough inventory
B) indifference of consumers
C) lack of a good promotional campaign
D) differing price elasticities of consumers and retailers
E) seasonality of a product
Q2) If an item that had cost the retailer $7 sold at retail for $12.50,the gross margin percentage on selling price is:
A) 78.6%.
B) 56%.
C) 44%.
D) 21.4%.
E) 100%.
Q3) A customer buying a branded product from a low-priced distributor likely is:
A) Getting a counterfeit product.
B) Buying in the gray market.
C) From an authorized dealer with high-volume and operating economies.
D) Purchasing from a free rider.
E) There is no way to tell from the information given.
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Page 13
Chapter 12: Promotion through the Marketing Channel
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Sample Questions
Q1) Sales quotas are a way for the manufacturer to communicate:
A) Satisfaction with the channel member's past performance.
B) Information regarding the channel member's territory sales potential.
C) The importance of the manufacturer's product to the channel member.
D) The importance of the firm's sales goals.
E) Goals and to motivate the salesperson.
Q2) Which of the following is not an advantage of using trade shows as a promotional strategy?
A) Provides an opportunity to sell to existing and new channel members
B) Provides an opportunity to show new products
C) Provides an opportunity to show new promotional programs
D) Can enhance the manufacturer's reputation
E) Provides an opportunity to advise and give technical assistance to channel members
Q3) Cooperative advertising dollars are also called:
A) Ad fares.
B) Detail fees.
C) Case allowances.
D) Trade fees.
E) Special allowances.
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Page 14
Chapter 13: Logistics and Channel Management
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Sample Questions
Q1) Just-in-time inventory systems:
A) Are useful in manufacturing but not in channels of distribution.
B) Can be successful without supplier cooperation.
C) Can reduce inventory costs substantially.
D) Were developed by the American automotive industry.
E) Increases warehousing costs.
Q2) An evaluation of whether a proposed logistics program meets the channel members' service standards requires that the channel manager:
A) Have a clear understanding of the objectives of the proposed logistics service program.
B) Be an expert in the area of logistics.
C) Be intimately involved in the technical aspects of the design of the logistics program.
D) Be able to develop and analyze a good survey.
E) Understand the service needs of channel members.
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15
Chapter 14: Evaluating Channel Member Performance
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Q1) If a channel member is not meeting performance standards,the channel manager should:
A) Fire the channel member immediately.
B) Evaluate the evaluation process and criteria.
C) Make an effort to learn about the needs and problems of the channel member.
D) Put the channel member on probation.
E) Demand the channel member make immediate changes in order to improve.
Q2) Generally,the more complex the product,the __________ the scope of channel member evaluations.
A) narrower
B) broader
C) less important
D) more limited
E) more technical
Q3) A major disadvantage of a separate performance evaluation is that:
A) It is the most complex to perform.
B) It takes a long time to perform.
C) It offers little insight into overall channel member performance.
D) It is difficult to analyze.
E) Is useful when channel members are small.
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Chapter 15: Electronic Marketing Channels
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Sample Questions
Q1) According to the text,the introduction of the Internet is likely to result in __________ channel design decisions.
A) less complex
B) more complex
C) the elimination
D) far less need for
E) automatic
Q2) With regard to income level among online shoppers:
A) The highest percentage of shoppers earn between $50,000 and $99,999.
B) The majority earned over $200,000.
C) There is a strong correlation between income and online shopping.
D) The highest percentage had incomes under $50,000.
E) Computer ownership does not seem to affect online buying.
Q3) The Internet-based marketing channel that Peapod,Inc.represents may best be described as:
A) A conventional supermarket.
B) An electronic warehouse distributor.
C) An example of reintermediation.
D) A food wholesaler.
E) A door-to-door sales company.
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Chapter 16: Franchise Marketing Channels
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Sample Questions
Q1) Which of the following is a true statement pertaining to single-unit franchises?
A) This is the most common form of franchise channel structure.
B) All franchisees operating under single-unit franchises own and operate one unit.
C) These franchises operate in environments with little competition.
D) Single-unit franchises enjoy a favorable image among consumers.
E) Single-unit franchises are a very low-cost method of selling.
Q2) The ___________ is a contract linking all franchisees to the franchisor.
A) Uniform Franchise Offering Circular UFOC)
B) Royalty agreement
C) Franchise agreement
D) Uniform Code of Justice UCJ)
E) None of the above
Q3) Which two factors are especially relevant in the scope and frequency of franchisee evaluations by franchisors?
A) Degree of control and importance of channel members
B) Importance of channel members and nature of product
C) Nature of product and number of channel members
D) Number of channel members and degree of control.
E) Number of manufacturers in the industry.
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Page 18
Chapter 17: Marketing Channels for Services
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Sample Questions
Q1) The salvage value of unsold services is:
A) Equivalent to the salvage value of products.
B) Dependent upon the type of service.
C) Dependent upon the accounting practices of the firm.
D) Zero.
E) The cost of labor to deliver the service.
Q2) The principle that the channel should be designed to maximize the sale of a service during its limited exposure to the target market is aimed at dealing with:
A) The intangibility of services.
B) The inseparability of services.
C) The high cost of services.
D) The perishability of services.
E) The limited involvement of the customer.
Q3) The involvement of customers in the production of services is usually:
A) Totally absent.
B) The same for product production.
C) Much less than their involvement in product production.
D) Greater than their involvement in product production.
E) Requires input from customers at the development stage.
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Page 19
Chapter 18: International Channel Perspectives
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Sample Questions
Q1) ___________ is when one firm uses the international expertise and capabilities of another firm to enter a foreign market.
A) Export management
B) Cooperative arrangement
C) Piggybacking
D) Casual exporting
E) Direct exporting
Q2) The channel variable of the marketing mix is especially sensitive because it often involves _________________ than the other variables.
A) higher levels of organization.
B) more person-to-person contact.
C) supervision of all channel members.
D) increased levels of evaluation.
E) more careful selection of channel members.
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