Chapter 12 MC

13) Which personal computer company focuses on business-to-business marketing using a direct-sales approach? A) Hewlett-Packard B) Compaq C) Dell D) Acer E) Sony

Answer: A

18) Which of the following does NOT qualify as a "category killer?" A) Victoria's Secret B) IKEA C) Home Depot D) Circuit City E) Toys "R" Us

Answer: A

24) When British entrepreneur Richard Branson established the first Virgin Megastore in France, he invested a great deal of money to develop a retail space on the famous Champs-Elysées. Judging by the approach Branson used, he and his management team must have viewed France as: A) culturally close and easy to enter. B) culturally distant and easy to enter. C) culturally close and difficult to enter. D) culturally distant and difficult to enter. E) culturally difficult and easy to enter.

Answer: A

26) Which of the following correctly characterizes the retailing strategy of Benetton, IKEA, and Gap? A) few product categories, own-label focus B) few product categories, manufacturer brand focus C) many product categories, own-label focus D) many product categories, manufacturer brand focus E) none of the above

Answer: A

32) "Containerization" refers to a company's: A) designing attractive product packaging that will help a product "sell itself." B) the use of computer technology to keep a lid on ("contain") distribution costs. C) using refrigerated warehouses for perishable products. D) use of standard-sized shipping boxes that can be transported in various ways. E) a method of shipment by using oval size steel containers to fit different commodities.

Answer: A

34) A French winery packs its wine in a 40-foot container that is trucked to a port and then loaded onto an ocean-going vessel. This is an example of: A) intermodal transportation. B) inventory control. C) hypermarketing. D) "cherry picking" a product. E) containerization.

Answer: A

35) A freighter loaded with 40-foot shipping containers leaves a port in Europe and sails to New York, where the containers are transferred to railroad cars and transported to the West coast. At the port of San Francisco, the containers are loaded onto another freighter bound for Japan. The term that best describes this situation is: A) intermodal transportation. B) inventory management. C) greenfield investment. D) hypermarketing. E) containerization.

Answer: A

9) Which of the following most accurately describes the relative length of consumer and industrial distribution channels? A) Consumer channels tend to be longer (consist of more intermediaries) than industrial channels. B) Industrial channels tend to be longer (consist of more intermediaries) than consumer channels. C) Both consumer and industrial channels tend to be long (consist of several intermediaries). D) Both consumer and industrial channels tend to be short (consist of few intermediaries). E) Consumer channels tend to be shorter (consist of few intermediaries) than the industrial channels.

Answer: A

17) By definition, ________ feature a narrow but deep merchandise mix and high levels of service. A) department stores B) specialty retailers C) super markets D) convenience stores E) discount stores

Answer: B

20) Which of the following correctly characterizes the retailing strategy shared by Toys "R" Us and Virgin Megastores? A) few product categories, own-label focus B) few product categories, manufacturer brand focus C) many product categories, own-label focus D) many product categories, manufacturer brand focus E) none of the above

Answer: B

30) Order processing, warehousing, and inventory management are all functions pertaining to: A) a polycentric orientation. B) physical distribution and logistics. C) sales promotion. D) personal selling. E) chain acquisition.

Answer: B

33) When a company uses intermodal or multimodal transportation it is: A) using multiple channels. B) using land and water shipping. C) shipping via more than one railroad line. D) using the services of both UPS and FedEx. E) using different size containers for shipment.

Answer: B

38) Which of the following transportation modes offers the most flexible routing and scheduling: A) railroad B) truck C) pipeline D) air E) water

Answer: B

4) Peer-to-peer (p-to-p) marketing uses distribution channels through: A) business-to-consumers. B) electronic commerce. C) business-to-business. D) door-to-door. E) manufacturer-to-wholesalers.

Answer: B

10) Sales representatives in which Japanese industry cultivate close, long-term relations with customers by selling door-to-door? A) consumer electronics B) pharmaceuticals C) automobiles D) soft drinks E) groceries

Answer: C

11) The retail environment in developing countries presents challenges for marketing nonperishable items. In Mexico, Proctor & Gamble, Unilever, Colgate-Palmolive, and other global consumer product companies use ________ for their products: A) door-to-door selling B) buy-in-bulk selling C) mom-and-pop stores D) franchised stores E) manufacturer-owned stores

Answer: C

12) Dell rang up $ 61 billion in direct sales of their PC systems in 2006 using: A) door-to-door sales. B) franchise marketing. C) web-site sales. D) business-to-business sales. E) hypermarket sales.

Answer: C

21) Which of the following categories best describes the approach of Britain's Marks & Spencer to global retailing? A) few product categories, own-label focus B) few product categories, manufacturer brand focus C) many product categories, own-label focus D) many product categories, manufacturer brand focus E) none of the above

Answer: C

23) Which approach to retail expansion is most appropriate when targeting a country that management considers both culturally close and easy to enter? A) organic growth B) chain acquisition C) franchise D) joint venture E) own label focus

Answer: C

3) Some wine importers insist on shipping their wines in refrigerated containers ("reefers") to protect the wines from being damaged by high temperatures. Such importers are creating which kind of utility? A) place utility B) time utility C) form utility D) information utility E) worker utility

Answer: C

5) eBay was a pioneer in a form of online marketing known as: A) b-to-c. B) b-to-b. C) p-to-p. D) d-to-d. E) c-to-b.

Answer: C

22) Which approach to global retail expansion involves "greenfield" investment using a company's own financial resources to build a new store from the ground up? A) chain acquisition B) organic growth C) franchise D) joint venture E) own-label focus

Answer: D

25) When British entrepreneur Richard Branson established the first Virgin Megastore in Japan, he established a joint venture with the Marui retailing chain. Judging by the approach Branson used, he and his management team must have viewed Japan as: A) culturally close and easy to enter. B) culturally distant and easy to enter. C) culturally close and difficult to enter. D) culturally distant and difficult to enter. E) culturally difficult and easy to enter.

Answer: D

28) When single brand-retailers such as Benetton, Nike, Pizza Hut, Reebok, and Subway first entered Indian retail market they were required to use: A) mom-and-pop type stores. B) cramped stores. C) local vendor operated stores. D) franchised stores. E) departmental stores.

Answer: D

31) If a commodity raw material comes from Africa (gets refined in Asia) then shipped to South America for finishing and finally transported to the Middle East and then sold around the world — represents a similar process used for products marketed by: A) Exxon. B) McDonald's. C) Caterpillar. D) IKEA. E) Sears.

Answer: D

37) Which of the following transportation modes ranks lowest in capability? A) truck B) railroad C) Internet D) air E) water

Answer: D

6) Which country has proven to be the most successful market in Avon's history among the following? A) Romania B) Ukraine C) China D) Russia E) India

Answer: D

16) Which of the following is the largest retailer in the world in terms of annual sales? A) Sears B) Metro C) Kmart D) Carrefour E) Wal-Mart

Answer: E

2) Marketing channels have the potential to create which of the following types of utility? A) place utility B) time utility C) form utility D) information utility E) all of the above

Answer: E

29) Physical distribution and logistics are concerned with all but one the following. A) order processing B) warehousing C) inventory management D) transportation E) designing in-store displays

Answer: E

36) Inventory management is: A) determining what type of warehouse to manage. B) establishing an inventory channel. C) managing physical distribution of products. D) purchasing products. E) ensuring cost control.

Answer: E

8) Nestlé is using an innovative approach to distribution in Brazil with a program which consists of selling its products via: A) upscale supermarkets. B) hypermarkets. C) pulperias. D) convenience stores in low-income neighborhoods. E) door-to door selling in low-income neighborhoods.

Answer: E