Exam 9: Distribution and Supply Chain Management

A) exclusive distribution
B) intensive distribution
C) selective distribution
D) limited distribution
E) prestige-based distribution

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A

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There are three basic structural options...

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A) legitimate power
B) coercive power
C) referent power
D) reward power
E) logistical power

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A) marketing network
B) distribution hub
C) supply chain
D) marketing channel
E) product network

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Power can be defined as the influence that one channel member has over others in the supply chain. Powerful channel members have the ability to get other firms to do things that they otherwise would not do. Depending on how the channel member uses its influence, power can create considerable conflict, or it can make the entire supply chain operate more smoothly and effectively. There are five basic sources of power in a supply chain: \( \ddot{\mathrm{Y}} \) Legitimate Power - This power source has to do with the firm's position in the supply chain. \( \ddot{\mathrm{Y}} \) Reward Power - The ability to help other parties reach their goals and objectives is the crux of reward power. \( \ddot{\mathrm{Y}} \)Coercive Power - In contrast to reward power, coercive power is the ability to take positive outcomes away from other channel members or the ability to inflict punishment on other channel members. \( \ddot{\mathrm{Y}} \) Information Power - Having and sharing knowledge is the root of information power. Such knowledge makes channel members more effective and efficient. \( \ddot{\mathrm{Y}} \) Referent Power - Referent power has its basis in personal relationships and the fact that one party likes another party. The sources of power or influence change as a supply chain moves toward integration and collaboration. Traditional marketing channels have made heavy use of legitimate, reward, and coercive power sources. The use of these types of power is consistent with the high level of conflict that exists in such channels. Firms want to sell a product for as much as possible, provide as few additional services as it can get away with, obtain payment in advance, and deliver the product at its own convenience. By contrast, buyers want to purchase a product for as little as possible, get a large number of additional services both now and in the future, pay months or even years later with no interest, and get immediate delivery. Collaborative supply chains focus on win-win outcomes and work to get past these natural sources of confrontation. Here, reward and referent power become used most frequently, with the most important source of influence being information. Successfully confronting the problems that naturally materialize in a supply chain depends on the effective development, communication, and utilization of information.

A) consumers
B) mass merchandise retailers
C) wholesalers
D) brokers and distributors
E) manufacturers

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A) exclusive channel arrangement.
B) channel stuffing arrangement.
C) dual distribution agreement.
D) tying arrangement.
E) restricted supply agreement.

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A) exclusive distribution
B) service-based distribution,
C) intensive distribution.
D) comparative distribution,.
E) selective distribution...

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A) A channel that has no redundancies
B) A channel that provides the best in terms of time, place, and possession utility
C) An integrated channel that operates at half the cost of competing channels
D) A tightly integrated channel that operates with little or no waste
E) A channel that meets the needs of all supply chain partners

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A) enhancing the reputation of the supply chain
B) reducing the risk of legal action in the supply chain
C) increasing channel efficiency by reducing waste, overhead, and other costs
D) securing more power and control for manufacturers
E) All of the above are common themes.

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A) category management.
B) channel integration.
C) referent power.
D) product differentiation.
E) outsourcing.

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A) Manufacturers make one or a few product(s) ; customers need variety and assortment.
B) Channels must make products available in convenient locations.
C) Channels add value to products by standardizing the exchange process.
D) Channels must provide for the storage of products for future purchase and use.
E) Manufacturers produce large quantities; customers usually want only one item.

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A) A channel that provides maximum time utility
B) A channel that has eliminated all wholesalers
C) A channel that provides the best in terms of place utility
D) An integrated channel that reduces redundancies and waste
E) All of the above describe efficient channels of distribution.

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A) manufacturers
B) wholesalers
C) retailers
D) customers
E) It does not matter.

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A) It maximizes profit margin rather than sales volume.
B) It encourages customers to shop around for the lowest price.
C) It promotes a very high degree of brand switching.
D) The manufacturer must give up a good degree of control over pricing and product display.
E) It gives customers fewer opportunities to find the product.

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A) channel integration
B) cost control
C) profit maximization
D) channel effectiveness
E) category management

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A

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Outsourcing-shifting work activities to ...

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A) exclusive channel arrangements
B) tying contracts
C) channel stuffing
D) dual distribution
E) restricted supply chains

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