MKT230 - Ch.14-15

Consumers receive the benefits of place utility when Select one: a. products are available in locations where consumers want to buy them. b. they make purchases with credit and debit cards. c. they can stock up on products they need but not use them right away. d. retailers remain open 24 hours a day. e. they have to travel excessively to obtain products they want.

A

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

A

Fiona is employed by Hallmark Cards, Inc., where her responsibilities include maintaining displays of greeting cards in drugstores and discount stores. Her daily activities include straightening the cards, pulling outdated or slow sellers, and installing new cards. Fiona is called a(n) __________ . Select one: a. rack jobbers. b. full-service stockers. c. specialty-line wholesalers. d. in-store maintainers. e. assemblers.

A

Kevin is talking with Peter about purchasing a Wendy's franchise. Peter tells Kevin that one of the major advantages of franchising for him to consider is the Select one: a. higher success rate for franchises. b. greater freedom it provides. c. gross margin it provides. d. higher start-up costs. e. individuality it offers.

A

The management at Kohler, Inc., a manufacturer of sinks, tubs, and other plumbing products, thinks that there will soon be a major growth in home remodeling due to rising interest rates. The management decides to use ______________ in several key cities to provide support services for its sales force in those areas, carry inventory, and offer credit and other services to its retail plumbing customers. Select one: a. sales branches b. commission merchants c. facilitating agencies d. broker offices e. sales agents

A

A marketing channel is defined as a group of individuals and organizations that Select one: a. takes title to products and resells them. b. directs the flow of products from producers to customers. c. manages transportation and warehousing functions. d. links producers to other marketing intermediaries. e. consumes about one-half of every dollar spent on products in the United States.

B

Apple makes its computers available through its own stores, its website, and some major retailers. This is an example of Select one: a. tying agreements. b. dual distribution. c. vertical integration. d. horizontal integration. e. exclusive dealing.

B

Goodyear allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly increases the possibility of channel ________ with independent Goodyear dealers. Select one: a. leadership b. conflict c. power d. communication e. understanding

B

Netflix sells its movie services using its website while Red Box sells its movie services using vending machines. From a customer's point of view, Netflix is using _________________ and Red Box is using ____________ . Select one: a. a direct-marketing channel; an agent. b. a direct-marketing channel; a type of retailer. c. an Internet wholesaler; a slightly longer channel. d. an Internet wholesaler; a retailer. e. a direct marketing channel; a slightly shorter channel

B

Shopping centers include Select one: a. community, rural, urban, and traditional business districts. b. outlet, power, lifestyle, super regional, regional neighborhood, and community. c. free-standing, convenience, traditional, and regional. d. outlet malls, lifestyle, strip malls, and shopping malls. e. neighborhood, regional, super regional, power and strip malls.

B

Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) _____________ channel. Select one: a. consumer b. Producer-to-business buyer c. producer-to-industrial distributor-to-business buyer d. producer-to-agent-to-business buyer e. equipment

B

The supply chain includes Select one: a. suppliers and suppliers' suppliers. b. all entities that facilitate product distribution. c. suppliers, producers, intermediaries, and customers. d. producers, wholesalers, and retailers. e. buyers, seller, marketing intermediaries, and agents.

B

When Zappos, Inc., an online marketer of shoes, accessories, and clothing, contracts out the physical distribution task to third parties such as UPS, this arrangement is called ___________. This is due to the fact that UPS does not have managerial authority within the Zappos marketing channel. Select one: a. illegal. b. outsourcing. c. wholesaling. d. logistics. e. warehousing.

B

A narrow product mix with a deep product line would most likely be carried by Select one: a. discount stores. b. warehouse showrooms. c. specialty retailers. d. mass merchandisers. e. supermarkets.

C

A single leader who controls and organizes a marketing channel is called a Select one: a. lead distributor. b. distribution leader. c. channel captain. d. channel champion. e. marketing maverick.

C

Alex is preparing the new strategic plan for a large retailer. Several aspects of the retailer are to be evaluated, in order to make plans and set goals. Of all the issues that Alex can select in developing the new strategic plan, which of the following is the least flexible? Select one: a. Retail positioning b. Store image c. Location d. Store atmosphere e. Scrambled merchandising

C

By locating in the same general vicinity as other car dealerships, Hartfield Honda can Select one: a. create form utility. b. create exchange utility. c. facilitate comparison shopping. d. create possession utility. e. facilitate wholesale exchanges.

C

In franchising, which of the following is not a benefit that the franchiser gains? Select one: a. The franchiser can gain more rapid product distribution. b. the franchiser benefits from the fact that franchisees tend to be highly motivated to succeed, which in turn leads to higher sales and higher royalties. c. The franchiser gains more control over how the franchisees operate the establishments. d. All of these are benefits to the franchiser. e. The franchiser can acquire capital more quickly for expanding production.

C

Manufacturers' agents offer products that are both Select one: a. unrelated and competing. b. complementary and competing. c. noncompeting and complementary. d. competing and specialized. e. unrelated and noncompeting.

C

Michael's, PetSmart, and Staples are all examples of Select one: a. off-price retailers. b. traditional specialty retailers. c. category killers. d. discount stores. e. superstores.

C

Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks' coffee drink, Frappucino, to grocery stores and other retail outlets. This is an example of Select one: a. channel leadership. b. exclusive distribution. c. a strategic channel alliance. d. dual distribution. e. horizontal channel integration.

C

The result of an inventory stockout usually results in ______________ . Select one: a. a decrease in prices. b. an increase in inventory costs. c. an increase in lost sales. d. an increase in loyal customers. e. an increase in net profit.

C

An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is called Select one: a. refusal to deal. b. exclusive dealing. c. contractual VMS. d. exclusive distribution. e. a tying agreement.

D

An independent businessperson who is paid a commission to sell complementary products of different producers in an assigned territory without actually taking title of the merchandise is a(n) Select one: a. sole intermidiary. b. industrial distributor. c. channel facilitator. d. manufacturers' agent. e. producers' broker

D

Off-price retailers feature Select one: a. overstocks, designer brands, and moderate prices. b. cash only sales and few customer services. c. a narrow product range and enormous product availability. d. deep discounts, few customer services, and central checkouts. e. sales expertise, wide selections, and low prices.

D

Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through Select one: a. lot sizes. b. packaging. c. warehousing. d. containerization. e. transit time.

D

Self-service, general merchandise stores such as Kmart are known as Select one: a. catalog showrooms. b. warehouse showrooms. c. superstores. d. discount stores. e. specialty retailers.

D

Taylor works for a company that buys snacks such as chips, cookies, and candy in bulk from manufacturers. Taylor's company then repackages them and sells them to vending companies who have vending machines at government institutions. Taylor most likely works for a(an) ______________ , while the vending machine company is a(an) _____________ . Select one: a. Wholesaler; broker b. Agent; retailer c. Broker; agent d. Wholesaler; retailer e. Broker; retailer

D

The three major types of nonstore retailing are Select one: a. telemarketing, door-to-door, and mail-order. b. automatic vending, direct selling, and telemarketing. c. direct marketing, direct selling, and mail-order. d. direct marketing, direct selling, and automatic vending. e. direct selling, automatic vending, and catalog retailing.

D

What is the primary distinction between superstores and hypermarkets? Select one: a. Superstores offer a wider variety of products than hypermarkets. b. Hypermarkets have fewer departments but deeper product lines than superstores. c. These two types of retailers carry very different types of products. d. Hypermarkets are larger and have more types of products than superstores. e. Superstores offer low prices while hypermarkets have moderate to high prices.

D

When three buyers purchase the products of three producers, nine transactions are required. If one intermediary serves both producers and buyers, the number of possible transactions is Select one: a. fifteen. b. twenty. c. eighteen. d. six. e. five.

D

Channel decisions are important to marketers mostly because Select one: a. consumers value reasonable prices delivered through marketing channels. b. many businesses are marketing intermediaries. c. they dictate what promotional strategies companies should use. d. they are relatively flexible to change quickly. e. they involve long-term commitments and affect customer accessibility.

E

Compared with other types of retailers, department stores compete mainly on the basis of Select one: a. low prices. b. catalog sales. c. a very deep assortment of a few specific products. d. high sales volume. e. customer services.

E

Identifying an unserved or underserved market segment and serving it through a strategy that is distinguished in the mind of the consumer is called Select one: a. the wheel of retailing. b. scrambled merchandising. c. targeted retailing. d. the marketing concept. e. retail positioning.

E

If Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be Select one: a. minimizing channel conflict. b. creating a coordinate system. c. insisting on exclusive exposure. d. demonstrating sound channel leadership. e. exercising channel power.

E

Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channel are these manufacturers most likely to use? Select one: a. Producer, wholesaler, agent, retailer, consumer b. Retailer, consumer c. Producer, retailer, consumer d. Producer, consumer e. Producer wholesaler, retailer, consumer

E

Tupperware, Sarah Coventry, Amway, and Avon sell products outside the confines of retail facilities. They are _______ retailers. Select one: a. traditional b. home-delivery c. specialty d. discount e. non-store

E

Walmart, Macy's, Nordstrom's, and Toys "R" Us are examples of Select one: a. merchant wholesalers. b. end-users. c. manufacturers. d. agents. e. retailers.

E

When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most likely used _____________ distribution. Select one: a. agent b. selective c. horizontal d. exclusive e. intensive

E

Which of the following is a full-service merchant wholesaler? Select one: a. Cash-and carry wholesaler b. Drop shipper c. Truck wholesaler d. Mail-order wholesaler e. General merchandise wholesaler

E