ch 15 ch 16

private

If the shipper owns its own truck or air fleet, it becomes a ________ carrier.

zero-level channels

Door-to-door sales, home parties, mail order, telemarketing, TV selling, online selling, and manufacturer-owned stores are examples of ______

exclusive

Felder, an Austrian manufacturer of high-end woodworking machinery, has only a handful of showrooms in the United States and does not sell its products through home improvement stores. This is an example of ________ distribution

Contractual

A group of small grocery shops forms a new business entity to buy products directly from manufacturers. The group buys products in bulk that are then distributed among members. This helps the shops obtain better profit margins. Which of the following types of vertical marketing systems can be observed here?

retailer cooperative

A group of small sellers takes the initiative and organizes a new business entity to carry on wholesaling and possibly some production. This entity is called a(n) ______

requests a behavior that is warranted under the selling contract

A manufacturer is using legitimate power when it ______

reward

A manufacturer offers its intermediaries an extra benefit for performing a promotional activity. This is an example of the use of ________ power.

goal incompatibility

A manufacturer wants to achieve rapid market penetration through a low-price policy. However, the manufacturer's dealers prefer to work with high margins and pursue short-run profitability. The major reason for this conflict is _______

using a few existing intermediaries

A new firm typically starts as a local operation selling in a fairly circumscribed market by ________.

consumer buying patterns change

A producer must modify its channel design and arrangements if _____

whose sales volume comes primarily from retailing

A retailer or retail store is any business enterprise ______

when stock falls to 10 units

A stock order or reorder point of 10 means ordering the product ______

acknowledge that conflict will always exist and try to manage it better

A wise response to channel conflict is to ______

vertical marketing system

A(n) ________ includes the producer, wholesaler(s), and retailer(s) acting as a unified system.

corporate

A(n) ________ vertical marketing system combines successive stages of production and distribution under single ownership.

contractual

A(n) ________ vertical marketing system consists of independent firms at different levels of production and distribution, integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone.

employee exchange

General Motors' executives work for a short time in some dealerships, and some dealership owners work in GM's dealer policy department. This strategy helps the company avoid conflicts with its dealers. This is an example of the ________ strategy.

Referent

HP Inc. is a highly respected technology brand. Many retailers want to be associated with the brand because of this reputation. What kind of power does HP obtain due to this reputation?

Financing

Identify which of these channel functions constitutes both backward and forward flow.

goal incompatibility

If a producer wants to achieve rapid market penetration through a low-price policy, while a dealer wants to work with high margins to pursue short-run profitability, the source of the channel conflict is ________.

superordinate goals

If channel members experiencing conflict try to come to agreement on a fundamental goal they are all seeking, they are a pursuing the ________ mechanism for conflict management.

fast retailing

In ________, fashion retailers develop completely different supply chain and distribution systems in order to offer consumers constantly changing product choices

horizontal

In a ________ marketing system, two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity.

reward

In an effort to boost sales, Broomer offers its retailers a higher margin for promoting and selling products from the "Inducer" line to customers. This is an example of ________ power.

merchants

Intermediaries that buy, take title to, and resell the merchandise are known as _____

co-optation

Jaycee was using ________ when his organization tried to win the support of the leaders of one of his distributors by including them in advisory councils, boards of directors, and the like

Intensive

Société Bic S.A. is the French company behind Bic brand lighters, razors, and pens. Which distribution strategy is right for these low-cost consumer products?

exclusive

The Hermès brand of luxury fashion is available in approximately 300 company stores worldwide as well as a few carefully chosen high-end retail partners. This is an example of ________ distribution

order-to-payment

The elapsed time between an order's receipt, delivery, and payment is called the ________ cycle.

vertical channel

When Estée Lauder set up a website to sell its Clinique and Bobbi Brown brands, Dayton Hudson reduced space for Estée Lauder products in its department stores in response to the ________ conflict.

multichannel

When Goodyear began selling its popular tire brands through Sears, Walmart, and Discount Tire, independent dealers that sold the same tires at higher prices were angry. This is an example of a(n) ________ conflict.

Sliced their markets into ever-finer segments, with specific product lines aimed at these narrow segments

Which product strategy move have retailers such as Gymboree and Hot Topic made in recent years to reach their target markets more successfully?

Retailing

_______ includes all the activities in selling goods or services directly to final consumers for personal, non-business use

zero-level

A direct distribution channel is a ________ channel

zero

A direct marketing channel has ________ intermediary(ies).

contractual

A franchise organization is an example of a(n) ________ vertical marketing system.

Product recycling

Which of the following activities is a reverse-flow channel?

It might result in some retailers competing for the same customers.

Which of these is true about the selective distribution strategy?

horizontal

Alcart Solutions is a large distributor of Aldor phones in Canada. The company distributes products to various retailers in the New Brunswick province. Recently Aldor received several complaints from retailers that Alcart offers preferential treatment to some of the other retailers in the region. This is an example of ________ conflict.

the size and power of one of the members

An administered vertical marketing system coordinates successive stages of production and distribution through ________.

soft drinks

An intensive distribution strategy serves well for _______

selective

Armon Apparels designs, manufactures, and distributes athletic apparel and accessories for men and women. The company has only nine distributors across the United States. These distributors control a nationwide network of 600 retailers. The company does not sell its products through any other channels. This is an example of ________ distribution.

order of reorder point

As inventory draws down, management must know at what stock level to request additional stock. This stock level is called the ____

manufacturer-sponsored retailer franchise

Automotive dealerships are examples of the ________ format

referent

Because of the acceptance that the other Broomer products have in the market, retailers are willing to stock items from the new "Inducer" line of clothing. This is an example of _____

agents

Brokers, manufacturers' representatives, and sales agents search for customers and may negotiate on the producer's behalf but do not take title to the goods. This group of intermediaries are called collectively known as _____

coercive

Broomer threatens to withdraw all its other products from the retailers' stores if they are unwilling to push products from the "Inducer" line. This is an example of ________ power.

including them in advisory councils

Co-optation is an effort by one organization to win the support of the leaders of another by ________.

Arranging financing

Which of these is NOT one of the typical functions of a reverse-flow channel?

Setup costs for the products are low.

E&OE is trying to minimize its inventory costs, which are extremely high. The company has realized that it can achieve this by maintaining a near-zero inventory and producing more products only once it is ordered. Which of the following is true for E&OE?

Order-processing costs will be lower than the inventory-carrying costs.

E&OE is trying to minimize its inventory costs, which are extremely high. The company has realized that it can achieve this by maintaining a near-zero inventory and producing more products only once it is ordered. Which of the following will be true for E&OE?

change price levels instantaneously

Electronic shelf labeling allows retailers to ______

It lacks flexibility when distribution logistics are interrupted.

Which of these is an important disadvantage of just-in-time inventory management?

Setup costs

Order-processing costs for a manufacturer consist of ________ and running costs.

It lowers the producer's costs and prices.

Producers often shift some functions to intermediaries. Which of the following is the most significant benefit of doing this?

Dual compensation

RX Corp. is a large manufacturer of electronic goods and sells its products through distributors and retailers. In order to keep pace with the growing use of the internet, the company decides to start selling online. The company faces stiff opposition from its retailers as they believe that this will significantly reduce their profits. The company attempts to eliminate this resistance by offering its retailers commissions for processing and delivering orders received via the Web. This is an example of which of the following conflict resolution strategies?

omnichannel retailing

Retailers that augment their physical locations with coordinated online stores are using _______

corporate

Rotter Garder Inc. is a large-scale paint manufacturer and is known for its wide range of decorative paint products and industrial coatings. In addition to making paints, the company also owns and operates the retail stores that sell its products. This is an example of a(n) ________ vertical marketing system.

administered

The most advanced supply-distributor arrangements for ________ vertical marketing systems rely on distribution programming

retailer consolidation

The phenomenon of small manufacturers being crowded out of market sectors because they can't deliver enough quantity to satisfy retailers' demands is a consequence of _____

just-in-time inventory management

The strategy of carrying near-zero inventory and acquiring stock based on orders is known as ________.

piggyback

The trucking firm hired by your transportation manager provides a trucking service between the city of Sacramento and the surrounding towns on a regular schedule and at fixed prices. The trucking firm saves transportation costs by transporting the goods using trains as well as trucks, instead of trucks alone. Your transportation manager has hired a(n) ________ carrier.

value network

Today's holistic marketers view the entire supply chain as a _______

facilitators

Transportation companies, independent warehouses, banks, and advertising agencies assist in the distribution process but don't take title to goods or negotiate purchases or sales. This group of intermediaries are called collectively known as ______

Industrial distributors

What class of intermediaries operate between manufacturers and industrial customers in B2B markets?

Elements in a conventional distribution channel act as separate businesses whereas the elements in a vertical marketing system act as a unified system.

What is the major difference between a conventional distribution channel and a vertical marketing system?

Two or more channels may end up competing for the same customer

What is the trade-off in return for the benefits associated with an integrated multichannel marketing system?

Define and profile its target market

What key step must a retailer make before it can make consistent decisions about product assortment, store decor, advertising messages and media, price, and service levels?

In an effort to go up-market, dropped many products that its loyal customers liked

What mistake did jeweler Zales make that cost it many of its traditional customers?

A wholesaler and a retailer

What two intermediaries are typically found in a dual-level channel?

reverse-flow channel

When Apple accepts used cell phones from customers and extracts components and materials from them for use in other products and manufacturing processes, it is operating a(n) _____

Exclusive distribution

Which of the following allows a firm to maintain control over service level and obtain more dedicated and knowledgeable selling?

Sales forces

Which of the following channel alternatives is most suited to handle complex products and transactions?

Placing orders with manufacturers

Which of the following channel functions constitute only a backward flow?

Consumers

Which of the following entities is present in a zero-level distribution channel?

It is less effective for complex products

Which of the following is a potential disadvantage of using the internet as a distribution channel?

BEL Inc. manufactures parts for automobiles and transports its products to customers itself.

Which of the following is an example of a private carrier?

A company takes online orders from customers and ships the products to them

Which of the following is an example of a zero-level channel?

Praxis International sells products to consumers directly through the internet.

Which of the following is an example of retailing?

Wholesalers are only considered to be retailers if they are selling to final consumers.

Which of the following is true for retailing?

Designer luggage

Which of the following products is most likely to be sold using an exclusive distribution strategy?

Exclusive

Which of the following types of distribution involves severely limiting the number of channel intermediaries?

Coercive power

Which of the following types of power is objectively observable?

Whether the company sells to final consumers

Which of these factors matters in the definition of what constitutes retailing?

Closing

Which of these is NOT a step in the order-to-payment cycle?

Setup costs

Which of these is NOT an inventory carrying cost?

Staffing flow

Which of these is NOT one of the five common flows across distribution channels?

Pop-up stores

Which temporary retailing format is designed to create buzz?

Early buyers of a product

Who will most likely be willing to pay for high-value-added channels?

Existing channels weren't creating a dynamic retail experience for consumers

Why did Apple conclude that existing retail channels were not meeting its distribution objectives when it decided to open its own retail stores?

To provide the level of service that differentiates the company from mainstream grocery retailers

Why does Whole Foods have so many more employees per store than the typical grocery store?

Co-optation

Winstar is a large-scale manufacturer with more than a hundred partners across the globe. When making decisions concerning distribution and channel optimization, the company invites members from its channel partners to be part of its advisory committee. This helps the company maintain harmony with its partners. Which of the following conflict resolution techniques is Winstar using?

Order-processing

_____ costs for a manufacturer consist of setup costs and running costs.

Destination categories

_____ may play a particularly important role in retailers' product decisions because they have the greatest impact on where households choose to shop and how they view a particular retailer.

Distribution channels

______ are sets of interdependent organizations participating in the process of making a product or service available for use or consumption.

Containerization

______ consists of putting goods in boxes or trailers that are easy to transfer between two transportation modes.

Market logistics

______ includes planning the infrastructure to meet demand and then implementing and controlling the physical flows of materials and final goods from points of origin to points of use to meet customer requirements at a profit.

Supply chain management

______ includes strategically procuring the right inputs (raw materials, components, and capital equipment), converting them efficiently into finished products, and dispatching them to the final destinations

Coercive

______ power can be effective, but its exercise produces resentment and can lead the intermediaries to organize countervailing power.

Horizontal

_______ channel conflict occurs between channel members at the same level.