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