MAR 3023 - Chapter 10

Reach is short for? a) % of target customers the company distribution reaches b) Gross reach c) Net reach d) Selective reach

a) % of target customers the company distribution reaches

Safety stock is held: a) Against running out of demand because of order-delivery process unreliability b) Against running out of supply because of order-delivery process unreliability c) Against the cost of materials increasing d) None of the above

b) Against running out of supply because of order-delivery process

Intermediaries add what type of utility to a manufacturers' product? a) Time utility b) Place utility c) Time and place utility d) Convenience utility

c) Time and place utility

A manufacturer has to reach its target customers, and if those customers shift which channels they shop, then the manufacturer has to ____________. a) Add those channels b) Convince customers to switch back c) Manufacture products that are purchased in the old channel d) All of the above

a) Add those channels

A manufacturer prefers: a) Intra-brand competition b) Inter-brand competition c) Both intra-brand and inter-brand competition are the same to a manufacturer d) None of the above

a) Intra-brand competition

What kinds of products are best suited for mass distribution? a) Products that are frequently purchased b) Products that are expensive c) Products that are major durables d) Products that are high risk purchases e) Both A and C

a) Products that are frequently purchased

In markets suffering from evolutionary rigidity, the potential rewards from innovating are a) Significant b) No change c) Small d) None of the above

a) Significant

Four of the following phrases appear in the physical distribution QFD figure. Please indicate which of the phrases appears in the box on the right side. a) Transportation process quality and cost b) Order-taking, picking, and packing process quality and costs c) Product quality and cost d) Customer service process quality and cost e) Inventory holding process quality and cost

a) Transportation process quality and cost

Which of the following channel members was negatively affected by Internet marketing? a) Travel agencies b) Orbitz.com c) Airline industries d) Hotels e) Consumers

a) Travel agencies

If the reliability of a delivery system (longest time - average time) is reduced by five days for a buyer who uses 100 boxes a day and the annual inventory carrying cost of each box is $12, how much does the buyer save annually? a) $5,000 b) $6,000 c) $10,000 d) $12,000

b) $6,000

Which of the following retailing areas has been greatly impacted by Internet marketing, as mentioned in the distribution module? a) Home furniture market b) Auto market c) Clothing market d) Computer market

b) Auto market

When containers were first introduced, a Harvard University transportation economist _______ container-based transportation would lead to a reduction in U.S. manufacturing jobs. a) Warned about how b) Could not see how c) Had nothing to say about how

b) Could not see how

Which of the following companies successfully added new distribution channels, as discussed in the distribution module? a) Elizabeth Taylor's Black Pearl fragrance b) Levi Strauss c) Both A and B d) None of the above

b) Levi Strauss

As discussed in the distribution module, a common source of conflict between manufacturers and partners is misunderstanding the other party's viewpoint when it comes to planning and implementing joint marketing programs. These misunderstandings may include: a) Retailers have the time and merchandising skills to set up promotional displays, and marketing people sent by a manufacturer to help only get in the way b) Manufacturers get upset when they run advertisements that draw prospective customers into the retail store but lose sales because the in-store marketing push is missing c) Both A and B d) None of the above

b) Manufacturers get upset when they run advertisements that draw prospective customers into the retail store but lose sales because the in-store marketing push is missing

Reseller, image, services and marketing are NOT as important in? a) Franchising b) Mass distribution c) Selective distribution d) All of the above

b) Mass distribution

Four of the following phrases appear in the physical distribution QFD figure. Please indicate which of the phrases appears in the box on the left side. a) Transportation process quality and cost b) Order-taking, picking, and packing process quality and costs c) Product quality and cost d) Customer service process quality and cost e) Inventory holding process quality and cost

b) Order-taking, picking, and packing process quality and costs

Retailers and manufacturers need to seek the balance for: a) Product variety and quality b) Quality and price c) Price and product variety d) Both B and C

b) Quality and price

Channel evolutionary rigidity occurs when channels___________________. a) Rigidly adopt new technology and processes that increase efficiency b) Very slowly adopt new technology and processes that increase efficiency c) Very quickly adopt new technology and processes that increase efficiency d) None of the above

b) Very slowly adopt new technology and processes that increase efficiency

If the reliability of a delivery system (longest time - average time) is reduced by 10 days for a buyer who uses 200 boxes a day, and the annual inventory carrying cost of each box is $150, how much does the buyer save annually? a) $150,000 b) $200,000 c) $300,000 d) $400,000

c) $300,000

Which of the following products is suited for mass distribution? a) A Coach purse b) A Chanel watch c) A pack of Charmin toilet paper d) A marketing textbook

c) A pack of Charmin toilet paper

Which of the following is the biggest retail line of business in the U.S., according to U. S. Commerce Department Statistics? a) Food and beverage retailing b) General merchandise retailing c) Automotive dealer retailing d) Eating and drinking retailing e) Gas station retailing

c) Automotive dealer retailing

In trading relationship and processes, which of the following statements is true? a) A unique trading relationship advantage comes from the manufacturer and channel partner working well together to reduce the costs of doing business b) If the cost reduction efforts of both parties are synchronized and if this synchronization is better than any other trading relationship, the trading relationship will have a unique competitive cost advantage c) Both A and B

c) Both A and B

Which of the following statements is true about franchising? a) Franchisees are imitators; there is little innovation in a franchise system b) About a quarter of all retailing is franchised c) Franchising is a way for an innovator to earn higher innovation profits d) Franchising is a big part of going global and acting global e) Both C and D

c) Franchising is a way for an innovator to earn higher innovation profits

Risk-taking and financing activities of channel intermediaries _____________ a) Are an important basic channel function these days b) Have been greatly increased over the last one hundred years c) Have been greatly reduced over the last one hundred years d) Both A and B

c) Have been greatly reduced over the last one hundred years

As discussed in the distribution module, what is the major concern for a supplier of a mass distribution product? a) Quality of its product or services b) Design of it product or services c) How to get into the mass distribution channels d) How to innovate new products frequently

c) How to get into the mass distribution channels

Relationship synergy occurs when the effectiveness, capability and success of the partnership is: a) The marketing strategies and implementation skills of two trading partners b) When the retailer's positioning and strategy appeal to the manufacturer's management c) More than the sum of the seller's and buyer's separate capabilities d) When the manufacturer's positioning and strategy appeal to the retailer's served market e) None of the above

c) More than the sum of the seller's and buyer's separate capabilities

A manufacturer's launching of its own outlet stores is mainly because____________. a) Consumers like to shop in outlet stores b) Manufacturers produce too many products and too many product lines c) Retail channels take advantage of generous buy-back programs and return a lot of stuff d) All of the above

c) Retail channels take advantage of generous buy-back programs and return a lot of stuff

When a manufacturer creates its own retail outlets, what is the real rationale for it? a) The outlets are test labs for new product lines and merchandising innovations b) It strengthens the appeal of the brand sold through other retailers c) The manufacturer can make higher profits by retailing as well as manufacturing them d) All of the above

c) The manufacturer can make higher profits by retailing as well as manufacturing them

Which of the following statements is true about Walmart in Britain? a) Walmart always wins with its everyday low pricing positioning b) Walmart's acquisition of Asda was a failure as it didn't gain market from Sainsbury c) Walmart continued to promote every-day low prices, ignoring the fact that rivals were flourishing by marketing selection, quality, organic brands and prepared foods d) None of the above

c) Walmart continued to promote every-day low prices, ignoring the fact that rivals were flourishing by marketing selection, quality, organic brands and prepared foods

When you make a physical distribution system more reliable and regular in its processes: a) It has no effect on inventory b) You increase the need for inventory c) You reduce the need for inventory d) None of the above

c) You reduce the need for inventory

Which of the following might be a reason for a company to distribute through new channels? a) Introduction of new products b) A different retail channel may reach a different segment of shoppers c) If the manufacturer does not supply the new retailer, other competitors will d) All of the above

d) All of the above

Most of the focus in mass distribution is on? a) Reducing the cost of distribution b) Keeping the shelves stocked c) Keeping the quality of service high d) Both A and B e) A, B and C

d) Both A and B

When choosing a channel partner, a manufacturer seeks: a) A partner whose customers fit the manufacturer's target market segment b) A partner whose service and current products complement its products and service c) A partner with inferior buying, marketing, merchandising and selling skills d) Both A and B e) A, B and C

d) Both A and B

Which of the following cities were innovative distribution hubs because their canals allowed goods to be loaded and unloaded directly into a merchant's warehouse? a) Venice b) Amsterdam c) London d) Both A and B e) All of the above

d) Both A and B

Which of the following statements is the key to operating multiple channels? a) Through customer research undertaken together with channel members, establish whether the current and new channels share the same customers b) The manufacturer sets and follows the same well-defined performance criteria c) Each trading relationship's uniqueness has to be recognized d) Both A and C e) A, B, and C

d) Both A and C

What is/are the competitive advantage(s) for IKEA? a) Elegant Swedish design b) Flat packing furniture saves manufacturing and distribution costs for IKEA c) Customer convenience and lower final delivery costs for IKEA compared to other furniture competitors d) Both B and C e) All of the above

d) Both B and C

Which of the following is/are advantage(s) of computerization in order-taking processes? a) It greatly increase the variability in order processing time b) It often allows immediate notification of item availability c) It can produce courtesy confirmation e-mails that are automatically sent to buyers d) Both B and C e) A, B, and C

d) Both B and C

Which of the following statements best describes convenience products? a) Shoppers will go out of their way to buy the preferred alternative b) Shoppers will purchase the next preferred alternative when the product or service is not available c) The best distribution for a convenience product is to be everywhere d) Both B and C

d) Both B and C

Which of the following criteria does the basic channel choice NOT depend on? a) Capability b) Cost c) Control d) Conviviality e) All of the above

d) Conviviality

Relationship synergy occurs when there is a ____ served market fit and a ____ fit between the marketing strategies and the implementation skills of two trading partners. a) Low, low b) High, low c) Low, high d) High, high

d) High, high

Which of the following statements is true about reaching target customers? a) Channel segmentation is important in distribution reach strategy b) The most common function of a marketing channel member is to provide reach and to resell the product into a market where the original seller can't reach efficiently or effectively c) Retailers can give manufacturer both location and image competitive positioning d) Both A and B e) A, B, and C

e) A, B, and C

A retail store's assortment of customers has varying degrees of uniqueness, measured in terms of: a) Individual differences (age or income) b) Product usage and needs c) Perceptions of the competitive offerings d) Sensitivity to different promotional strategies e) All of the above

e) All of the above

Retailing success depends on: a) Store location b) The assortment or selection of products offered for sale c) The quality of merchandise presentation d) The attractiveness of the store interior e) All of the above

e) All of the above

The development of a new logistics relationship between businesses and trading partners requires which of the following? a) The development of new attitudes that change old habits b) Enough trust to work together to develop competitive added value for both of you c) A willingness to not exploit the new relationship at the expense of long run cooperation d) Patience; payoff often takes time and there are always initial glitches e) All of the above

e) All of the above

Which of the following is the basic channel activity discussed in distribution? a) Reaching target customers, where they are and where they shop b) Informing and serving the customer c) Moving the product d) Financing the venture e) All of the above

e) All of the above

As discussed in distribution module, retailing is about: a) Price b) Supply chain cost control c) Positioning d) Promotion e) Both B and C

e) Both B and C

As markets mature: a) The need for pioneer personal selling efforts increase b) The need for pioneer personal selling efforts decrease c) The need for direct selling and billing efforts increase d) The need for pioneer personal selling, direct selling and billing efforts decrease e) Both B and C

e) Both B and C