MKTG Ch 14

Disney sells apparel, cookie jars, puzzles, photo albums, and other items featuring its popular characters directly through its own retail outlets. This is an example of a. channel conflict. b. channel leadership. c. vertical channel integration. d. horizontal channel integration. e. channel cooperation.

c. vertical channel integration.

Cassy and James both are buying new iPhones this week. Cassy goes to the Apple store because she wants to actually see the phone before she makes a final decision. James knows that he does not need to see the phone, because he just wants an upgrade from his older version. He simply orders it online from apple.com. Cassy is purchasing her phone through _____, while James is purchasing his through _____. a. the most common type of marketing channel; an indirect channel b. a retail channel; an indirect-marketing channel c. a business-to-business channel; a direct-marketing channel d. a retailer; a direct-marketing channel e. an indirect-marketing channel; the most efficient channel of distribution

d. a retailer; a direct-marketing channel

The driving force behind marketing channel decisions should be a. environmental concerns. b. convenience. c. cost reduction. d. quality. e. customer satisfaction.

e. customer satisfaction.

_______ involves developing and maintaining adequate assortments of products to meet customers' needs. a. Warehousing b. Materials handling c. Inventory management d. Logistics e. Order management

c. Inventory management

Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through a. lot sizes. b. just-in-time. c. containerization. d. cycle time. e. intermodal transportation.

c. containerization.

A goal of logistics is to reduce ____ or how long it takes to complete a process. a. time standards b. processing time c. cycle time d. throughput measure e. production

c. cycle time

When Bud Light Orange beer was introduced as part of the Anheuser-Busch product line, the company most likely used ____ distribution. a. horizontal b. vertical integration c. intensive d. exclusive e. selective

c. intensive

The notion of logistics is a. used solely by manufacturers. b. primarily the wholesaler's responsibility. c. the activities used to move products from producers to end users. d. speed of delivery. e. an assessment of distribution costs.

c. the activities used to move products from producers to end users.

When produce companies such as Dole Bananas bypass wholesalers and sell directly to retailers, it is likely to a. increase cooperation between Dole and the wholesalers. b. show that Dole is integrating its channel intermediaries. c. create horizontal integration between channel members. d. create channel conflict between Dole and these wholesalers. e. increase the vertical integration of the channel intermediaries.

d. create channel conflict between Dole and these wholesalers.

Because of the significant investment many companies have in the products they sell to customers, they must develop and maintain adequate varieties of products to meet their customers' needs. This is called a. order processing. b. merchandise stocking. c. logistical management. d. inventory management. e. just-in-time.

d. inventory management.

A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances? a. When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force b. When only one or two channels of distribution are available for products c. When the firm wants specialized personnel to follow up the work of the sales force d. When customers are highly concentrated in one geographic area e. When the sales force is large and the marketer is thinking of cutting it down

a. When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force

For which of the following products would exclusive distribution be most appropriate? a. Rolls Royce automobile b. Ray-Ban sunglasses c. Bananas d. Harley-Davidson motorcycle e. Gasoline

a. Rolls Royce automobile

When a single channel member manages an integrated marketing channel to achieve low-cost, effective distribution for satisfying target markets, ____ exists. a. a vertical marketing system b. channel power c. horizontal channel integration d. multichannel distribution e. channel cooperation

a. a vertical marketing system

Companies that sell products with high profit margins are more likely to use _______. Companies selling products whose sales are directly related to product availability will most likely use _______. a. exclusive distributive; selective distribution b. exclusive distribution; intensive distribution c. selective distribution; intensive distribution d. selective distribution; exclusive distribution e. intensive distribution; exclusive distribution

b. exclusive distribution; intensive distribution

Aaron Whitley's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Aaron works for carries inventories of the tools, which reduces capital requirements for the producers. Aaron's company is an example of a(n) ____ in a distribution channel. a. wholesalers' agent b. industrial distributor c. producers' agent d. manufacturers' agent e. direct distributor

b. industrial distributor

Assuming everything else is equal, the most cost-efficient way for ConocoPhillips to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be a. intermodal transportation. b. pipelines. c. waterways. d. tanker trucks. e. railroads.

b. pipelines.

Multichannel distribution is characterized as a. manufacturers that forbid an intermediary to carry products of competing producers. b. the use of a variety of marketing channels to ensure maximum distribution. c. marketing environments that are highly competitive. d. distribution channels that typically carry exclusive products, such as Rolex watches. e. illegal under the Robinson-Patman Act.

b. the use of a variety of marketing channels to ensure maximum distribution.

The main reason a manufacturer will prohibit intermediaries from selling its products outside designated sales territories is to a. contain distribution costs. b. incorporate selective distribution. c. tighten its control over distribution of its products. d. punish intermediaries for past behavior. e. discourage competition from other manufacturers.

c. tighten its control over distribution of its products.

When Jennifer buys organic produce for her household using a channel with just one intermediary, that intermediary is classified as a a. producer. b. functional middleman. c. retailer. d. wholesaler. e. broker.

c. retailer.

What is a primary difference between an industrial distributor and a manufacturers' agent? a. An industrial distributor does not form relationships with customers for repeat business whereas a key asset of a manufacturers' agent is his knowledge of his customers. b. A manufacturers' agent rarely adds any value to the marketing channel while an industrial distributor reduces costs significantly. c. An industrial distributor is employed by the manufacturers while a manufacturers' agent is independent. d. A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does. e. A manufacturers' agent is employed by the manufacturers while an industrial distributor is independent.

d. A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does.

Which of the following is an advantage of using an industrial distributor? a. These firms are easy to control because they work directly for the producers. b. They are closer geographically to all of the producers' customers. c. They possess a high level of technical knowledge about their products. d. They help reduce a producer's financial burdens by extending credit to customers. e. Inventory holding costs are minimized because they can store inventory very cheaply.

d. They help reduce a producer's financial burdens by extending credit to customers.

Vertical channel integration a. combines institutions at the same level of operation. b. is made possible when a large corporation divests itself of smaller subsidiaries. c. results in two or more different management teams for each member of the channel. d. is made possible by purchasing the operations of a channel member. e. is a shift back to the conventional channel of distribution.

d. is made possible by purchasing the operations of a channel member.

Suppose that Faust Distributing has been told that it cannot carry the beers made by Anheuser-Busch because it also carries the products of the competitor, Miller Brewing Company. Faust is then told that it must drop the Miller brands in order to carry the Anheuser-Busch products. If this were true, Anheuser-Busch would be engaging in which of the following channel management practices? a. Multichannel distribution b. Refusal to deal c. Tying contracts d. Exclusive dealing e. Restricted sales territories

d. Exclusive dealing

Eliminating a wholesaler from a marketing channel will a. eliminate the functions performed by that wholesaler. b. cut costs and lower prices. c. lead to lower costs but higher prices. d. reduce channel conflict. e. not eliminate the functions performed by that wholesaler.

e. not eliminate the functions performed by that wholesaler.

Tesco is a large U.K. supermarket. The firm's supply chain operates using a number of _______ to receive, store, and redistribute its many goods. Two of these facilities are used for frozen food. Many of the facilities are designed for the rapid flow of food products. They use automation such as forklifts and hoists to collect and move products to loading docks. a. public warehouses b. third-party logistics firms c. private warehouses d. megacarriers e. distribution centers

e. distribution centers