MKTG Chapter 14 test 4

cycle time

A goal of physical distribution is to reduce ______ or how long it takes to complete a process.

channel captain.

A single leader who controls and organizes a marketing channel is called a

utilize resources for greatest cost-effectiveness.

According to the text, physical distribution cost tradeoffs enable firms to

cycle time.

An important goal of physical distribution is reducing the time it takes to complete

industrial distributor.

An independent business that takes title to products and carries inventories is a(n)

a direct-marketing channel.

Customers who purchase computer laptops from manufacturer websites are acquiring products through a) the most efficient channel of distribution.

not eliminate the functions performed by that wholesaler.

Eliminating a wholesaler from a marketing channel will

containerization.

Fansteel manufactures parts used in jet engines, which it sells to companies such as Boeing. When shipping products to Boeing, Fansteel seals the parts in 8' 8' 40' boxes for shipping to decrease loss and damage. This method of materials handling is

megacarriers.

Freight transportation companies that offer several different shipment methods are called

industrial distributor

Jeff Wood's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces capital requirements for the producers. Jeff's company is an example of a(n) ___________ in a distribution channel.

Producer, retailers, consumers

Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following channels?

Producer, wholesaler, retailer, consumer

Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channel are these manufacturers most likely to use?

dual distribution.

Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called

private warehouse.

Morgan Steel Company leases a warehouse in Jacksonville, Alabama to serve Deep South markets that were large enough and stable enough to make a long-term commitment to fixed facilities. This is a

link producers to other middlemen or to consumers.

Most marketing channels have marketing intermediaries. A marketing intermediary's role is to

Producer, wholesalers, retailers, consumers

Nationally distributed consumer convenience products are most likely distributed through which of the following channels?

the customer having access to the product to use now or store and use later.

Possession utility is best described as

agents

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.

intensive

Sales are most likely to have a direct relationship to product availability for products that use _____ distribution.

direct-marketing.

Select Comfort, a producer of adjustable air mattresses, sells most of its products through direct mail sales and Internet sales. This channel would be classified as

use a total-cost approach to analyze and evaluate the entire system.

The best way to reduce overall distribution costs is to

supply chain management.

Wal-Mart 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

vertical channel integration.

Warner Bros. sells cookie jars, puzzles, photo albums, and other items featuring its popular cartoon characters directly through its own retail outlets. This is an example of

Warehousing

What function of physical distribution enables companies to compensate for dissimilar production and consumption rates and stabilize prices and availability of seasonal items?

six.

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

Customers

Where do supply chains start?

Order handling, order entry, order delivery

what are the three primary tasks of order processing?

aggressive promotion of its brand

A producer is not likely to receive _____ from an industrial distributor.

business that leases storage space and related facilities for distribution to other firms.

A public warehouse is a

customer relationships.

All members of the supply chain should determine their position in the chain, identify their partners and their roles, and establish partnerships whose focus is

b) safety stock is kept to reduce stockouts.

All of the following are concepts used in a just-in-time inventory management system except a) supplies arrive just as they are needed. b) safety stock is kept to reduce stockouts. c) much waste is eliminated. d) purchases are made in small quantities. e) purchases are made frequently.

exclusive dealing.

An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is called

vertical.

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

they involve long-term commitments and affect customer accessibility.

Channel decisions are important to marketers mostly because

b) producers.

Few supermarkets would try to replace a national brand of baby food with their own brand. Assuming that this is true, we have a good example of channel leadership by a) wholesalers. b) producers. c) retailers. d) agents. e) brokers.

b) Rolls Royce automobile

For which of the following products would exclusive distribution be most appropriate? a) Gasoline b) Rolls Royce automobile c) Washing machine d) Laundry detergent e) Moderately priced luggage

conflict

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.

time utility.

Having products available when the customer wants them is called

Exclusive

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?

the receipt and transmission of sales order information.

Order processing is defined as

expensive and/or complex equipment is involved.

Organizational buyers are especially partial to direct marketing channels when

dual distribution

Ralph Lauren sells Polo products through department stores as well as in its own specialty shops. The designer uses ___________ as a channel strategy.

d) Efficiencies in advertising, marketing research, and purchasing are increased.

Select the greatest advantage of horizontal channel integration. a) The flexibility of the channel is decreased. b) The markets are more heterogeneous. c) The expanded number of units is coordinated. d) Efficiencies in advertising, marketing research, and purchasing are increased. e) Planning and research are increased to cope with increased competition.

cooperate and accommodate one another's needs.

The Home Depot is trying to reduce transportation, information management, and administrative costs. To accomplish this goal, channel members need to

cycle time.

The United States Postal Service works hard to get priority mail from the sender to the recipient as quickly as possible in order to compete with companies such as UPS and FedEx. The postal service works to reduce

tighten its control over distribution of its products.

The main reason a manufacturer will prohibit intermediaries from selling its products outside designated sales territories is to

Automobiles

The marketing channel of producer to retailer to consumer is most likely to be used by producers of which of the following products?

all entities that facilitate product distribution.

The supply chain includes

reduces transit time.

Using a freight forwarder usually

80

What is the reorder point if the usage rate is 10 units per day, the order lead time is five days, and the safety stock is 30?

retailer.

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

private warehouses.

When companies operate their own facilities for storing and shipping products, these facilities are known as

conflict

When produce companies such as Dole Tomatoes bypass wholesalers and sell directly to retailers, it is likely to create channel ___________ between Dole and these wholesalers.

They are unlikely to handle bulky items or items that are slow sellers.

Which of the following describes a disadvantage of using industrial distributors?

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

Which of the following is an advantage of using an industrial distributor?

Screws

Which of the following is most likely to be a product stocked by an industrial distributor?

Producer, organizational buyers

Which of the following is the most commonly used channel for distributing business products?

Warehousing

Which of the following physical distribution functions involves design and operation of facilities for storing goods?

products would likely be more expensive due to the use of less efficient channel members.

Without wholesalers and other intermediaries,

Transportation

what is the most expensive physical distribution function?

Product characteristics

what is the primary determinant in deciding how materials will be handled?

manufacturers' agent.

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)

distribution of one manufacturer's product through two or more different channel structures.

Dual distribution is characterized as

selective distribution.

Durable goods such as television sets and DVD players generally reach their target markets through

safety stock.

Eric is concerned about not having enough air conditioning units in inventory during June, July, and August so he keeps extra inventory to guard against stockouts during this critical period. Eric is keeping

exercising channel power.

If Ralston Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be

Airways

If a microchip in a computer in New York failed, which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from Silicon Valley, California?

channel conflict caused by inefficient communication between channel members.

Marketing channel members are likely to experience misunderstandings, frustration, and poorly coordinated strategies as a result of

place, time, and possession.

Marketing channels create three types of utility for consumers including

b) tightly controlled and bureaucratic management style.

The reasons a vertically integrated channel can be more effective against competition is because of all of the following except a) the consolidation of power. b) tightly controlled and bureaucratic management style. c) the ability to inhibit competitors. d) the sharing of responsibilities and information. e) increased bargaining power.

supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well.

Tying agreements occur when a

Railroads and trucks

two modes of transportation are used when containers are shipped by piggyback?

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

what is a primary difference between an industrial distributor and a manufacturers' agent?

directs the flow of products from producers to customers.

A channel of distribution is defined as a group of individuals and organizations that

marketing channel

A group of organizations and individuals that directs the flow of products from producers to the ultimate consumers is called a

retailer.

After direct-marketing, the next slightly longer marketing channel adds a(n)

public warehouse

Air-Tech management learns that last month's production run of heaters at its Newark plant is defective and announces a recall of the specific models produced. To handle the large number of products it expects to receive for replacement of the defective thermostats, Air-Tech will probably need to add a ___________ to its distribution network.

pipelines.

Assuming everything else equal, the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be

d) Increase order frequency

Justin Abercrombie attends a seminar on just-in-time inventory management. Excited about the idea, he returns to his office at Atlanta Auto Supply to start designing such an inventory system. Which of the following steps must Justin take as he institutes this change? a) Increase safety stock b) Raise the reorder point c) Reduce customer service standard d) Increase order frequency e) Reduce estimates of inventory turnover rate

airway

Kolder Inc. is using a new just-in-time inventory management system that requires ordering smaller quantities of parts more frequently. The success of its business depends significantly on receiving these parts very quickly, so like many other companies using just-in-time, Kolder Inc. is relying more on the ______ mode of transportation despite its expense.

supply chain management.

Long-term partnerships among channel members working together to reduce inefficiencies, costs, and redundancies in the entire marketing channel is called

direct-marketing channels.

Many producers selling on the Internet are using

What links producers to consumers through the purchase and reselling of products or contractual agreements?

Marketing Intermediaries

cooperation.

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

containerization.

Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through

producer-to-business buyer

Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) _________ channel.

a) Exclusive dealing

If Anheuser-Busch refused to allow Jackson Distributing to carry its product if the distributor also carried Miller Brewing products, the company would have been engaging in which of the following channel management practices? a) Exclusive dealing b) Dual distribution c) Tying contacts d) Refusal to deal e) Restricted sales territories

long-term commitments.

If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are

twenty-five; ten

In a simple economy of five producers and five consumers, there would be ___________ transactions possible without an intermediary and _________ transactions possible with one intermediary.

decrease costs while increasing service.

The main objective of physical distribution should be to

Direct distribution

Caruthers Paint Manufacturing Company buys the chemicals it needs for producing its products from a chemical producer, Roth Chemicals. In this instance, the chemicals are being distributed to Caruthers through which of the following types of channels?

customer satisfaction.

The driving force behind marketing channel decisions should be

products are available in locations where consumers want to buy them.

Consumers receive the benefits of place utility when

c) Tying agreement

If an intermediary wants to carry Tide detergent and Procter & Gamble agrees only if the supplier purchases P&G's entire line of detergents as well, the company is engaging in which of the following channel management practices? a) Exclusive dealing b) Dual distribution c) Tying agreement d) Refusal to deal e) Restricted sales territories

contractual

In the distribution channel for Domino's Pizza, channel members are linked by legal agreements that spell out the obligations and rights of each member. This is an example of a(n) ___________ vertical marketing system.

a) unit loading

Johnson Controls hires a consultant to assess its materials handling procedures. The consultant recommends the implementation of ___________ if they want easier movement of items between internal destinations in the warehouse. a) unit loading b) piggybacking c) containerization d) inventory management e) priority transportation

b) captain.

Nike maintains a good deal of control over how its products are promoted, displayed, and sold. Because of this control, Nike would be appropriately described as the channel a) intermediary. b) captain. c) allocator. d) terminator. e) price leader.

e) customer places a purchase order.

Order handling involves all of the following activities except that the a) credit department approves the purchase. b) order is transmitted to the warehouse. c) availability of product is verified. d) warehouse is instructed to fill the order. e) customer places a purchase order.

order handling.

The order-processing task that involves verifying product availability, checking prices and customer credit ratings, and filling orders is

Transportation

___________ adds time and place utility to a product by moving it from where it is made to where it is purchased and used.

Intermodal transportation

___________ is the combining and coordinating of two or more modes of transportation to take advantage of benefits offered by each of the different types of carriers.