EXAM 3 (CH13-15)

A grocery chain needs to ship in a new order of seafood quickly and is looking for the fastest mode of transportation.

Airway

Manufacturer's Agent

An independent business person who sells complementary products of several producers in assigned territories and is compensated through commissions

Which of the following is most likely to use exclusive distribution?

Boeing 777 Freighter

______ systems exploit the information in supply chain partners' information systems and make it available for easy reference.

CRM

Advantages of using industrial distributers

Can perform selling activities in local markets for a low cost Can reduce a producer's financial burden by providing customers with credit services Are aware of local needs and have relationships Reduce producers' capital requirement

Grainger specializes in products that are used to maintain, repair, and operate facilities (MRO products). Grainger takes title to products and carries inventories. It also offers services such as inventory management and support. Grainger is most likely a(n) _______.

Industrial Distributor

A drug maker required that patients purchase its blood-monitoring services along with its medicine to treat schizophrenia. Which legal issue in transportation is this?

Trying agreement

Advantages of using manufacturer's agents

Usually possesses considerable technical and market information and have an established set of customers

Best Buy stores have knowledgeable staff to provide information to consumers on products ranging from televisions to laptops. The company also offer repair and support services through the Geek Squad. These are examples that Best Buy is _______.

adding value for customers

Rob Stevens is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ____ to maintain contact with the firms using its products.

agents

Michael's, PetSmart, and Staples are all examples of

category killers

A commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation is

electronic data interchange

The Grove is an open-air shopping center that has upscale specialty stores, nice restaurants, and a movie theater. It is designed to encourage customer loyalty by looking like a "mini-city" with streets, benches, and a small park. The Grove is most likely a _______ shopping center.

lifestyle

Kroger is planning to open a new suburban grocery store. Management is currently evaluating how easy it will be to get deliveries at different sites, leasing terms of sites, and compatibility with potential neighboring stores. Kroger is evaluating a new store's _______.

location

Deborah is opening a second-hand clothing store in a shopping center that has other small specialty stores, a convenience store, and a fast-food restaurant. The center primarily attracts customers who live within a couple miles of the stores. Deborah's store is most likely in a _______ shopping center.

neighborhood

Consumers receive the benefits of place utility when

products are available in locations where consumers want to buy them

Kate owns a refreshment-stand business at the community ballpark. She goes to a warehouse store like Sam's and purchases snacks and canned soda that she will sell at her refreshment stand. Kate is considered a(n)

retailer

When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a

retailer

Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing?

warehouse club

_______ occurs when a shopper researches a product online and then heads to the nearest store to make the actual purchase.

webrooming

Disadvantages of using manufacturer's agents

•The seller has little control over the actions of manufacturers' agents •Prefer to concentrate on larger accounts due to the fact they work on commission

A manufacturer of iron pipe fillings got in trouble with the FTC for forcing distributors to buy domestic fittings from it and not from its competitors. Which legal issue in transportation management is this?

Exclusive Dealing

In 2015, Heinz and Kraft Foods merged into one company. This is most likely an example of _______.

Horizontal Channel Integration

In addition to producing the popular iPhone and iPad, Apple also helps design the components as well as the processors. It also owns its own retail stores. Apple therefore operates in the hardware, software, services, and retail industries. This is an example of _______.

Horizontal Channel Integration

Which of the following would most likely use intensive distribution?

Kimberly Clark

Pierre runs a grocery store and is working with his suppliers in the planning and implementation of the flow of products from the manufacturer to his store. The goal is to make the transportation and storage of products more efficient and effective. He is engaging in _______.

Logistics Management

Mallory loves her job. She sells complementary products of several producers in assigned territories and is compensated through commissions. Mallory is highly effective at selling these products and is able to earn a high income from commissions. The best part is she never actually owns the products she sells. She acts more as a salesperson. Mallory is most likely a(n) _______.

Manufacturer's Agent

Disadvantages of using industrial distributors

May be difficult to manage independent firms Often stock competing brands, so a producer cannot depend on them to sell its brand aggressively Incur expenses from maintaining inventories

Which retail store invests the most in atmospherics?

Neiman Marcus

ExxonMobil needs an inexpensive method of transporting oil from Alaskan oil fields.

Pipelines

Carlos works at Kellogg's and is on a team developing a new breakfast cereal. He is currently trying to contact different companies who can provide the specific ingredients and equipment needed to make the cereal. He will work with the procurement department to reach an agreement with the companies selected to provide the ingredients and equipment. Carlos is currently engaging in _______.

Procurement

Kraft sells its macaroni and cheese through thousands of retailers across the country. Which of the following marketing channel structures is Kraft most likely to use?

Producer, Wholesaler, Retailer, then Consumer

A firm wants to ship a large shipment of coal to southern Mexico. It needs a mode of transportation that is highly accessible but which can carry many loads.

Railroad

Jake is looking for a way to transport low-sulfur coal. He would like to choose a transportation mode that will get his product to its destination in a reasonable time period. He also needs the transportation mode he chooses to carry large quantities of this coal, but he would like to keep costs down. Which mode of transportation should Jake use?

Railroad

The owner of a small sporting goods store that sells items below the suggested retail price was dropped as an outlet by the manufacturer of a popular line of ski clothing after the manufacturer made an agreement with the store's competitors to drop the store in order to maintain a price to which they agreed. Which legal issue in transportation management is this?

Refusal to deal

Which of the following is most likely to use the channel where the good goes from producer to retailer to end consumer?

Target

A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances?

The producer wants to cover a large geographic area but has no sales force

BSNF Logistics is a third-party organization that companies can use to help with their logistics needs. BSNF claims that it has strong capabilities in land, air, water, and rail services. It creates customized solutions to meet a variety of logistics needs for its customers. BSNF Logistics maintains that it has strong expertise in core logistics activities and can often perform these activities more efficiently. BSNF is most likely a(n) _______.

Third-Party Logistics Provider

A bookseller wants to distribute a couple thousand copies of a best-selling novel to a bookstore in Canada. The organization is willing to pay a higher cost to get them there quickly. The bookstore is in a more remote part of the region.

Trucks

Customers receive the benefits of form utility from an intermediary when _______.

a retailer offers to add a monogram to a product

A general-merchandise retailer offers

a variety of product lines that are stocked in depth

Which of the following is the best example of a rack jobber?

a vendor maintains a rack of blu-ray discs it sells at a popular drugstore

Industrial Distributor

an independent business org that takes title to industrial products and carries inventories Usually sells standard items, some carry a wide variety of product lines

Large manufacturers such as Procter & Gamble are typically able to have control over how their products are promoted and sold in different retail outlets. Due to this control, Procter & Gamble is likely a channel _______.

captain

Joseph has a passion for quality electronics. His dream is to open up a large electronics store to compete against Best Buy. He thinks he can utilize supplier relationships to source the latest high-tech electronics at lower prices. Therefore, he thinks he can beat Best Buy on the type of products available as well as with lower price points. Joseph is most likely to open up a(n) _______.

category killer

Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes?

convenience store

Overall channel goals and individual channel member goals cannot be achieved together without

cooperation

Off-price retailers compete primarily based on _______.

deeply discounted prices on brand-name merchandise

If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is most likely a(n)

department store

Vaughn was wide awake at 2 a.m., so he decided to watch television. He ended up watching an infomercial about Gotham Steel frying pans. Vaughn became convinced he needed the dishwasher safe, scratch-resistant cookware and immediately called the 1-800 number listed on the screen to order a frying pan. This is an example of

direct response marketing

Which type of store offers a wide assortment of products, has high inventory turnover, and operates with low margins and high sales volume?

discount store

Honey Farms is a maker of fine chocolates. The company's latest product, Fudge-Dipped Strawberries, is the premier product in its Fudge-Dipped line. The product is very expensive and targeted to upscale consumers. Which form of distribution would Honey Farms be likely to use for its new product?

exclusive

Joseph opened a large electronics store called It's Electric to compete against Best Buy. After many years of success, Joseph decides to grant Kim the right to open her own It's Electric location in exchange for a percentage of total sales. In this case, Kim is a(n) _______.

franchisee

Malcolm Lewis has come up with the idea of a system for picking up people's cars while they are at work, washing and waxing them, and returning them for a fee. Having been a big success in his home city, Malcolm plans to expand his operation into other cities. The service described here seems best suited to

franchising

Department stores, convenience stores, and warehouse clubs can all be classified as _______.

general merchandise retailers

To expand the number of its retail outlets in the Washington, D.C. area, Whole Foods bought out a small chain of organic food stores in northern Virginia. This type of integration is called

horizontal integration

The United Kingdom's largest supermarket is called Tesco. Tesco is a grocery and general merchandise retailer. In some outer city regions, Tesco has opened up stores it calls Tesco Extra, which carries all of Tesco's product ranges. These stores are known for their massive size—the largest one is 185,500 square feet. Tesco Extra is most likely to be a _______.

hypermarket

The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about

location

Tri-County Supply is a wholesaler that works in the home construction industry, providing building supplies such as doors, windows, gutters, and other components used in home construction. Tri-County Supply takes ownership of the components, which means it assumes the risk associated with the products if it is unable to sell them to home builders. Tri-County Supply is a _______.

merchant wholesaler

Stores that buy manufacturers' seconds, overruns, returns, and off-season production runs at below wholesale prices. These firms resell this merchandise to consumers at deep discounts, and are called

off-price retailers

Which of the following direct marketing methods will reach the most people, allow customers to shop from the convenience of their homes, and is one of the least expensive?

online retailing

Gucci sells its handbags through its company-owned stores and through a handful of high-end department store chains like Neiman Marcus and Saks Fifth Avenue. Gucci is using _______ distribution.

selective

Fragile products that require special handling are more likely to be distributed through

shorter channels

Phil works at a wholesaler that specializes in organic, grass-fed beef. Resellers wanting to purchase from Phil's organization have few options to choose from because its beef products tend not to vary. Phil most likely works for a _______.

specialty wholesaler

Walmart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of:

supply chain management

Benetton, a leading manufacturer of knitwear in Italy, expanded its operations to include retail outlets in the United States and South America. This type of channel is called

vertical integration

Cardinal Health, based in Dublin, Ohio, specializes in the distribution of pharmaceuticals and medical products. It recently completed a transaction where it provided a national hospital chain with a new supply of pharmaceuticals used to help control pain after surgery. Cardinal Health is engaging in _______.

wholesaling