Chapter 15

Place in order, from first to last, the entities that possess merchandise in the basic merchandise flow process.

1. manufacturer 2. distribution center 3. store 4. customer

Strategic relationships are beneficial because they help members do which of the following? (Choose every correct answer.) A) Develop joint projects B) Become more independent C) Take risks D) Accomplish goals

A) Develop joint projects C) Take risks D) Accomplish goals

Which of the following are standard marketing channels through which information flows? (Choose every correct answer.) A) From stores to distribution centers B) From customers to stores C) From suppliers of raw materials to consumers D) From manufacturers to distribution centers

A) From stores to distribution centers B) From customers to stores D) From manufacturers to distribution centers

Which of the following describes the use of a wireless network and portable devices that receive demand notifications to provide a speedy response? A) Mobile task management B) Supply chain management C) Just-in-time manufacturing D) Information flows

A) Mobile task management

What are two factors that cause fulfillment centers to operate a little differently when processing online orders as opposed to processing orders shipped to stores? (Choose Every Correct Answer.) A) Orders arrive from customers one at a time. B) Orders are sent out in relatively small quantities. C) Orders are sent to distribution centers. D) Orders are sent via drone.

A) Orders arrive from customers one at a time. B) Orders are sent out in relatively small quantities.

When a customer purchases merchandise, it triggers a flow of information that will eventually reach which elements of the supply chain? (Choose every correct answer.) A) Product manufacturers B) Suppliers of raw materials C) Competing stores D) Distribution centers E) Tax auditors

A) Product manufacturers B) Suppliers of raw materials D) Distribution centers

An indirect marketing channel may include which of the following intermediaries? (Choose every correct answer.) A) Retailer B) Customer C) Merchandise wholesaler D) Materials supplier

A) Retailer C) Merchandise wholesaler

What are common types of marketing channels? (Choose every correct answer.) A) direct B) overhead C) indirect D) intermediary

A) direct C) indirect

Information in a supply chain flows to and from which of the following? (Choose every correct answer.) A) distribution centers B) wholesalers C) competitors D) manufacturers

A) distribution centers B) wholesalers D) manufacturers

Strategic relationships rely on which of the following to succeed? (Choose every correct answer.) A) Minimal communication B) Credible commitments C) Mutual trust D) Lofty goals

B) Credible commitments C) Mutual trust

Which of the following describes deep, long-term relationships between supply chain members that are based on mutual benefits? A) Horizontal integration B) Interdependence C) Vertical integration D) Contractual obligations

B) Interdependence

Marketing channels include which of the following? (Select all that apply.) A) Legal practice centers B) Stores C) Government agencies D) Environmental agencies E) Warehouses

B) Stores E) Warehouses

Which statement about marketing channels is true? A) The structure of a marketing channel is solely up to the goods manufacturer. B) A direct marketing channel is generally the best channel choice for large retailers. C) A marketing channel may be a combination of a direct channel and an indirect channel. D) Firms have the best opportunity to design the best marketing channel within their first year.

C) A marketing channel may be a combination of a direct channel and an indirect channel.

Which of the following is an example of power being exerted within a marketing channel? A) When five employees of a small manufacturing plant are caught stealing from the company, they are fired and replaced. B) Two small retailers in the same town inform their common supplier that they cannot accept deliveries on Saturdays. C) Two dozen customers picket a large retail chain, demanding that it stop selling products made in China. D) Although all companies in the channel are independent, one large retailer controls what a small supplier can do.

D) Although all companies in the channel are independent, one large retailer controls what a small supplier can do.

Which of the following occurs in a conventional marketing channel? A) The channel includes just three members: a manufacturer, a wholesaler, and a retailer. B) All channel members are managed centrally by the same corporation. C) Channel members coordinate to achieve a set of shared goals and improve the overall profitability of the channel. D) Each channel member pursues its own objectives independently, with little care about other channel members.

D) Each channel member pursues its own objectives independently, with little care about other channel members.

A direct, manufacturer-to-consumer supply chain is a poor choice in a simple economy.

False

Franchisors agree to operate outlets in accordance with procedures prescribed by its franchisees.

False

The first decision that is necessary to make merchandise flow is to choose a transportation company.

False

The sales department of a company rarely coordinates with the manufacturing department.

False

Tiny scannable computer chips used to provide information about a container or product are called ______.

RFID tags

Which of the following types of power do monetary incentives represent?

Reward

To whom are a lump sum and royalties paid when a franchise opens?

The franchisor

When a customer purchases merchandise, what event causes information to begin moving through marketing channels?

The sales associate scans the UPC for the product the customer is purchasing.

Merchandise is marked with a black-and-white series of lines to indicate the item's manufacturer, description, packaging, and promotions. These lines are called the ______.

UPC code

What is the first decision to be made when considering merchandise flow?

Where the merchandise will go

A wholesaler is ______.

a company that buys merchandise from manufacturers and resells it to retailers

RFID tags ______.

act as passive tracking devices

Business relationships in supply chains ______.

are based on meeting each other's needs

Channel conflict is more likely to be minimized when channels ______.

are closely aligned

When marketing channels are closely aligned, conflicts ______.

are less likely

In a ______, members of the channel pursue their own goals and maximize their own profits, regardless of the effect on other channel members.

conventional marketing channel

Which vertical marketing system gives complete power to the parent company?

corporate

A marketing channel in which multiple segments are owned by the parent company is known as a(n) ______.

corporate vertical marketing system

The first flow of information (Flow 1) in a supply chain occurs from ______.

customer to store

In a(n) ______ marketing channel, products are sold by a manufacturer to a consumer without going through a retailer.

direct

A facility that receives, stores, and redistributes merchandise to company stores is known as a ______.

distribution center

In a marketing channel, the sales department must coordinate delivery with ______.

distribution centers

The best way to avoid vertical channel conflict is to ______.

ensure that communication between channel partners is honest and open

A(n) ______ marketing channel includes a retailer or other intermediaries in the delivery of goods and services to consumers.

indirect

To learn more about their customers, manufacturers often try to engage directly with customers on their websites. This allows manufacturers to become less dependent on retailers for customer insights. These manufacturers are seeking to limit the ______ power held by the retailers.

information

A retailer that decides to withhold from a supplier important details about a consumer goods market is exerting _____ power.

informational

In a simple economy, the most direct supply chain would be ______.

manufacturer to consumer

Using demand notifications to notify sales associates who can physically pull an item from store shelves and verify its availability is part of _____ task management.

mobile

In the management of market channels, a strategic relationship is also known as a(n) ______.

partnering relationship

A large grocery store chain insists that its suppliers stop packaging their bagels in plastic wrap, and they comply. This is an example of ______.

power within a marketing channel

When supply chain members realize that their goals and success are linked to others on the same team, they develop deeper long-term ______.

relationships

Offering to buy more of a product if a manufacturer lowers its wholesale price is an example of _____ power.

reward

The information flow from the store to the buyer typically communicates ______.

sales information

In a ______ relationship, the supply chain members are partners who intend to maintain the relationship for quite some time and invest in ventures that will be profitable for all involved.

strategic

Another term for marketing channel management is ______ management.

supply chain

Point-of-sale terminals record purchase information and electronically send it in a flow of information that initially travels from ______ to ______.

the corporation's stores; buyers at corporate headquarters

To minimize conflict, each member of the supply chain should ______ what drives the other members

understand

Generally, relationships in supply chains exist because the parties ______.

want or need something from one another

Manufacturers make products and sell them to ______, who resell the merchandise to retailers.

wholesalers

A direct marketing channel sells a product from a manufacturer to a consumer ______.

without a retailer