BA 370 CH.16

In the four Ps of marketing, place refers to all the activities required to get the right product to the right customer when that customer wants it

True

If a firm declared that it wanted to develop a strategic relationship, but was unwilling to commit funds or any effort to make it succeed, there would be an obvious lack of

credible commitments

In a ______ distribution center, merchandise moves from vendors trucks to retailers delivery trucks in a matter of hours

cross docking

_____ is when vendors ship merchandise prepackaged in the quantity required for each store to the distribution center

cross-docking

Having no intermediaries between the buyer and seller is defining characteristic of a(n) _____ marketing channel

direct

Sophie made pies and sold them from her food truck to local businesses. This is an example of a(n)

direct marketing channel

All of the following are activities carried on in a distribution center except

distributing paychecks and paystubs for retail employees

A ____ is a facility for the receipt, storage, and redistribution of goods to company stores

distribution center

Marketing channels and supply chains comprise various buying entities that form relationships with one another. The basic motivating factor in these interactions is

each party wants something from the others

typically, manufacturers and retailers exchange business documents through a(n) _____ system, the computer-to-computer exchange of business documents from a retailer to a vendor and back

electronic data interchange

After installing a(n)______ in its JIT system, chocolate Tree was able to reduce lead time for merchandise orders

electronic data interchange system

Flora is frustrated with her company's supply chain management information system. She wants to be able to receive sales data, initiate purchase orders, send and receive invoices, and receive returned merchandise documentation. Flora needs a(n)

electronic data interchange system

A distribution center and fulfillment center are one and the same

false

Conflicts within a supply chain tend to be more pronounced when the members are part of a corporate vertical marketing system

false

Distribution centers are always operated by distribution specialists

false

One reason retailers are reluctant to use distribution centers is that retail store space is typically much less expensive than space at a distribution center, so it is more cost-effective to store merchandise and get it ready for sale at the retail store rather than at a distribution center

false

Quick response (QR) inventory systems allow retailers to maximize their inventory holdings

false

Retailers generally have no prior knowledge of the merchandise they will be receiving from suppliers in any particular shipment.

false

The computer-to-computer exchange of business documents from a retailer to a vendor and back is referred to as vendor-managed inventory (VMI)

false

When Walmart threatens to punish or punishes the other channel member for not undertaking certain tasks, such as if it were to delay payment for a late delivery, this is an example of expertise power.

false

Some retailers require their supplies to ship merchandise ____ thus eliminating the time and expense associated with ticketing and marking

floor-ready

When Cynthia's Boutique receives dresses, they already have price tags and are on hangers. Cynthia's Boutique receives __________ merchandise.

floor-ready

Each time a politician or celebrity writes a book, bookstores can expect at least some customers to want the book, but whether or not it will become a best-seller is less certain. The bookstore's primary inventory management challenge is

having enough books to satisfy customer demands versus the cost of having the inventory

manufacturers trying to implement a just in time delivery system need to start with

knowledge of customer demand

After installing an electronic data interchange, Carmella's gift shop was able to reduce ______, the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise

lead time

The amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller's store ready for sale is referred to as

lead time

While JIT system have many benefits, they

make the logistics function more complicated

H&M has adopted the inventory management system that delivers less merchandise on a more frequent basis than in traditional inventory systems. The firm gets the merchandise just in time for it to be used in the manufacture of another product or for sale when the customer wants it. This is an example of a ___________ inventory system.

quick response

Because manufacturers with JIT systems produce merchandise closer to the time of sale, they can

reduce inventories needed to satisfy retailers demand

Walmart may have _____ power if a supplier desperately wants to be associated with Walmart, because being known as an important Walmart supplier enables that supplier to attract other retailers business

referent

When Costco sells to consumers directly, it acts as a _____; when it sells to other businesses, such as a resturant owner, it acts as a ______

retailer; wholesaler

In vendor managed inventory system

retailers send sales information to the manufacturer

A distribution center is typically operated by

retailers, manufacturers, or distribution specialists

When Joe's Chicken Shack wants chicken delivered in smaller batches more frequently, it offers its distributions an incentive in the form of special bonuses to change their schedules. Joes demonstrates which kind of power?

reward

When Walmart promises to purchase larger quantities if a manufacturer will lower its wholesale price, it is exhibiting ______ power

reward

Steven managed an auto parts store in the 1990s. At that time, stockouts-failure to have the parts auto mechanics needed to do their work that day-increased the likelihood of the mechanics becoming customers of competing auto supply stores. To avoid this problem and keep his business customers, Steven most likely

stockpiled inventory, adding to the cost of providing auto parts

Walmart needs P&G to satisfy its customers, and P&G recognizes that if it can keep Walmart happy, it will have more than enough business for years to come. Walmart and P&G recognize that it is in their common interest to be

strategic partners

TT Toys manufactures toys. The company recently started buying paint for its toys from a Chinese firm. This Chinese company is part of TT Toys'

supply chain

Although conflict is likely to occur in any marketing channel, it is generally more pronounced when

the channel members are independent entities

When a customer purchases a smartphone at Best Buy, all of the following information flows in the supply chain are started except

the purchase is added to the customers purchasing habit records

One of the benefits of EDI is that it can reduce lead time, which is

the time between the decision to place an order and the receipt of the merchandise

All of the following statements about distribution centers are true except

they enable retailers to carry less merchandise in individual stores

Getting merchandise floor-ready entails

ticketing and marking

Radio frequency identification tags are

tiny computer chips that transmit information about containers contents

Shorter lead times allow retailers

to reduce the needed level of inventories

Leona is the logistics manager for the Barnes and Noble bookstore chain. She is weighting the many benefits of the company's JIT system, but will need to consider that just-in-time inventory systems increase ______ costs

transportation

In a direct marketing channel, there are no intermediaries between the buyer and the seller

true

Marketing channel management adds value because it gets products to customers efficiently, quickly, and at low cost

true

Marketing channel relationships evolve when the parties have common goals

true

Radio frequency identification (RFID) tags automatically transmit information about a container's content or individual products

true

The vertical marketing system that exhibits the most formalization and control is the corporate vertical marketing system

true

When a firm is just starting out or entering a new market, it doesn't typically have the option of designing the best marketing channel structure.

true

When manufacturers such as Pampered Chef sell directly to consumers, they perform both production and retailing activities

true

When two competing retailers have a disagreement, it is an example of a horizontal channel conflict.

true

Wholesalers are often used in an indirect marketing channel

true

marketing channel management and supply chain management are virtually the same

true

A local furniture store buys furniture from various manufacturers and resells the furniture to its customers. What type of marketing channel does this represent?

Indirect

At the BMW plant in Spartanburg, South Carolina, rather than use a typical order-to-delivery process, it has suppliers deliver parts every four hours when the plant is in operation. BMW uses a _____ inventory control system

Just in time (JIT)

A(n) _____ is a 13-digit code retailers can use to track inventory

UPC

Because of its size and relative power, Walmart can easily impose controls on small manufacturers, such as PenAgain, but with large, powerful suppliers such as P&G, the control is more balanced between parties. Walmart's various marketing channel relationships offer examples of different form of a(n)_____ marketing system

administered vertical

Roland has just received notification from a vendor that his clothing merchandise order has been processed and dispatched. Roland has just received a(n)

advanced shipping notice

Especially in the fashion industry where styles and trends change rapidly, a quick response system can

align deliveries more closely with actual sales

Ted is glad his company finally converted to an RFID system. Now, he no longer to go through all the new goods to make sure what they ordered was what they received. Ted is responsible for ____ in his company

checking

In a(n) _____ marketing channel, none of the participants have any control over the others

conventional

All of the following are advantages of using a distribution center except

customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center

In addition to merchandise and payments, information flows throughout a supply chain. All of the following statements are a good characterization of the flow of information in a supply chain except

customers will send and receive information from stores and manufacturers

Trisha makes purses out of old blue jeans and sells them to customers at local craft fairs. What type of marketing channel does this represent?

direct

Universal product codes (UPC) are used to describe products for inventory taxation purposes.

false

Colin has just received a delivery from the company's distribution center. He opens the containers and finds the popcorn and snacks are all bar-coded and priced and the package includes an end-of-the-aisle display rack. Colin has received a(n)_____ shipment.

floor-ready

A(n) _____ is used in the shipment of products directly to customers

fulfillment center

In a(n) _____ marketing channel, one or more interemdiaries work with manufacturers to provide goods and services to customers

indirect

In a vertical marketing system, if the system is ______ the less likely conflict will occur

more formal

Which element of the marketing mix specifically deals with supply chain management

place

Naomi knows she has to order her store's Christmas holiday merchandise in April to ensure delivery before the holiday season. Naomi is concerned with the supply chain management goal of

providing products at the right time

Stores like Home Depot and Costco act as wholesalers when they

sell to contractors or restaurant owners

In marketing four Ps, place refers to all activities required to get

the right product to the right customer when that customer wants it

In an administered vertical marketing system

there is no common ownership, and the dominant member has significant power to impose its ideas and objectives.

A recent innovation by amazon, the vendor Flex program, seeks to lower overall transportation costs but also creates new forms of channel conflict with competitors. As a partner in the Vendor Flex Program, P&G agreed to allow Amazon to build fulfillment centers within P&Gs own warehouses, thus helping to eliminate some of the costs of transporting P&G products to Amazon's fulfillment centers. Believing that the program was giving its competitor Amazon an unfair advantage, Target reacted vigorously, moving all P&G products from prominent end-cap positions in its stores to less prestigious and less visible locations. Target also stopped using P&G as its primary source of advice for planning merchandising strategies within each category. This is an example of _____ channel conflict

Horizontal

In a retail supply chain, the _____ records the purchase information and electronically sends it to the corporate office

POS terminal

A(n) ______ is a document used by a forklift driver indicating how much of each item to get from specific storage areas

Pick ticket

Today, when a customer order merchandise from an online vendor, the vendor usually send an immediate order confirmation message by e-mail. Usually within a day or two, a second message arrives stating that the order is in the mail. This second message is a type of

advanced shipping notice

Yesterday, Lorinda overheard a surprisingly unpleasant encounter between the manager of the hardware store where she works and a sales rep who sells a well-known line of tools. The rep insisted that his tools should be more prominently displayed and that a better assortment would mean more sales. The manager had other plans and told him so, and the conversation turned into a loud argument. What Lorinda observed was an example of

channel conflict

When her company's dry goods deliveries were late for the third time, Melissa withheld payment from her supplier until it was back on schedule. This is an example of ________ power.

coercive

All of the following are require to build a successful strategic relationship except

creation of a joint venture

In a(n) ______ marketing channel, several independent members each attempt to satisfy their own objectives and maximize their profits, often at the expense of the other members

independent

Because Walmart has vast information about the consumer goods market, it might exert ____ power over P&G by providing or withholding important market information

information

When supply chain members view their goals and ultimate success as intricately linked, or ________, they develop deeper long-term relationships.

interdependent

Students of marketing often overlook or underestimate the importance of place in the marketing mix simply because

it happens behind the scenes

Which of the following is true regarding the ticketing and marking process

it is more efficient for retailer to perform these activities at a distribution center than in its sotres

Forever 21 has adopted an inventory system that reduces the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller's store, available for sale. This increases product availability and lowers inventory investment. These benefits are attributed to the _______ system.

just in time (JIT)

With more frequent shipments associated with quick response (QR) systems, a retailer is

more likely to have what customers want

In a corporate vertical marketing system

participants—such as warehouses, transportation companies, and retail outlets—are typically owned by a parent company to ensure harmonious relations throughout the supply chain.

Felicia has just taken over her family's business after spending ten years in the marketing department of a large corporation. She met with a representative from one of her firm's biggest customers, who told her "we should think about how we can make the pie bigger rather than fighting over the size of the slices" she had expected a more cutthroat approach rather than this call for a

partnering relatioship

The local auto supply store gets merchandise delivered to it by its manufacturers as soon as it has a need, reducing stockouts with minimal inventory

vendor managed inventory

Franchising is the most common type of contractural ____ marketing system

vertical

The Stanley company wants Home Depot to carry all its tools but not the tools of its competitors so that Stanley can maximize its sales. But Home Depot carries a mix of tool brands so it can maximize the sales in its tool category. The misalignment of goals will likely lead to a ______ channel conflict

vertical

A(n) ______ is a supply chain whose members act like a unified system

vertical marketing system

Walmart's customers have come to expect to find P&G products in stores, and P&G depends on Walmart to purchase a good portion of its output to sell to its own customers. This scenario represents the first phase of a

vertical marketing system

A ______ program is a promotional strategy that encourages people to pass along a marketing message to other potential consumers

virtual marketing

Dawn works for a firm that buys products directly from the manufacturer and sells them to retailers, who then sell the products to consumers. Dawn works for a

wholesaler