MGMT 322 QUIZ 8

In order to justify direct-response marketing, a product really needs to be priced above _____.

$20

With respect to retailing, what is the "party plan"?

A consumer acts as a host and invites friends to view merchandise in a group setting, where a salesperson demonstrates the products.

In franchising, which of the following is not a benefit that a franchiser gains?

A franchiser gains more control over how franchisees operate establishments.

In which of the following situations is dual distribution likely to be determined illegal?

A producer uses company outlets to dominate independent retailers that carry its products.

Which of the following types of retailing began with Montgomery Ward in the late 1800s?

Catalog marketing

Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their supplies?

Convenience stores

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

Direct distribution

Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume?

Discount stores

Which of the following is not a common feature of a warehouse club?

Good customer service

Sherri McRae wants to establish a fashion wholesaling firm. Because of the risks involved in the rapid obsolescence of high-fashion items, Sherri does not want to establish an organization in which she has title to the garments. Which of the following types of wholesale establishments has she ruled out?

Merchant wholesaler

Which of the following retail stores invests the most in atmospherics?

Neiman Marcus

Product and target market characteristics usually determine the type of coverage a product receives. For which of the following products is selective distribution most appropriate?

Organic foods

Which of the following best describes wholesalers?

Organizations or individuals who buy products for resale to government, reseller, producer, and institutional users

Which of the following is least likely to be a factor affecting the selection of marketing channels?

Product packaging

Alex is preparing a new strategic plan for a large retailer. Several aspects of the retailer are to be evaluated in order to make plans and set goals. Of all the issues that Alex can select in developing the new strategic plan, which of the following is the least flexible?

Retail store location

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

Warehousing

Which of the following is true about wholesaling?

Wholesaling activities must be performed during distribution of all goods, whether or not a wholesaling institution is involved.

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

Wind turbines

When channel members are linked by legal agreements that specify each member's rights and responsibilities, _____ exists.

a contractual VMS

A retailer engaged in direct marketing would probably select television home shopping over online retailing to sell a new kitchen device because of:

a superior ability to demonstrate the product.

A general merchandise retailer offers:

a variety of product lines that are stocked in depth.

When a single channel member manages an integrated marketing channel to achieve low-cost, efficient distribution for satisfying target markets, _____ exists.

a vertical marketing system

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

aggressive promotion of its brand

Chandra has extensive contacts in the real estate business and brings together buyers and sellers. Although she assumes no risks, she can offer specialized knowledge about real estate. Chandra is a _____.

broker

Karen has been a buyer for Ocean Mist, a large cranberry processor, for several years. Believing that she knows a great deal about cranberries, their growers, and processors, she decides to go into business by herself. Karen wants to assume no risks of spoilage or price fluctuations. She sees herself as simply bringing the growers and processors together. Her new company would be a _____.

broker

Andrea owns and operates a small novelty store that sells home décor, gifts, jewelry, and gourmet snacks. Because her business is very small, many wholesalers do not deal with her, therefore she relies primarily on _____ for the survival of her business.

cash-and-carry wholesalers

A retail strategy of managing groups of similar, often substitutable products produced by different manufacturers is called _____.

category management

A single leader who controls and organizes a marketing channel is known as a:

channel captain.

Calhoun Produce, a _____, takes possession of truckloads of tomatoes, arranges for storage, and transports them to auctions to be sold.

commission merchant

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.

conflict

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

containerization.

A _____ is a small, self-service store that is open long hours and carries a narrow assortment of products, usually items such as soft drinks and other beverages, snacks, news-papers, tobacco, and gasoline, as well as services such as ATMs.

convenience store

The Limited, which produces and retails clothing products in a coordinated channel, is an example of a(n):

corporate vertical marketing system

The driving force behind marketing channel decisions should be:

customer satisfaction.

If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is most likely a(n) _____.

department store

When a retailer advertises a product and makes it available for purchase through telephone or mail orders, the retailer is using _____.

direct-response marketing

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

directs the flow of products from producers to customers.

Apple makes its computers available through its own stores, its website, and some major retailers. This is an example of:

dual distribution

Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using:

dual distribution.

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

dual distribution.

A commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation is:

electronic data interchange

Expensive, high-quality products that are purchased infrequently often reach consumers through:

exclusive distribution.

The major levels of intensity at which a company can choose to distribute its products are _____distribution.

exclusive, selective, and intensive

Malcolm Lewis has come up with the idea of a system for picking up people's cars while they are at work, washing and waxing them, and returning them for a fee. Having been a big success in his home city, Malcolm plans to expand his operation into other cities. The service described here seems best suited to _____.

franchising

Logistics Plus is an organization that consolidates shipments from several industrial firms into more efficient lot sizes so that they can be more efficiently transported. Logistics Plus is an example of a(n) _____.

freight forwarder

Customers rely on _____ for product availability, breaking larger quantities into smaller ones, technical advice and service, financial assistance, and suitable assortments.

full-service wholesalers

After shopping in the same store for nearly two hours, Chelsea goes to Burger King for a Whopper, while Cynthia goes to the optical shop to see if her contacts are ready. They engage in these activities without leaving the store in which they have been shopping. They are most likely in a _____.

hypermarket

The result of an inventory stockout usually results in a(n)____.

increase in lost sales.

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

intensive

Merchant wholesalers who provide very few marketing services and specialize in just a few functions are known as _____.

limited-service wholesalers

All of the following are examples of full-service wholesalers except:

mail-order wholesalers.

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):

manufacturers' agent

When considering the best channel to use, all of the following are true with regard to larger firms except they:

may be better suited to serve customers in a particular region.

Freight transportation companies that offer several different shipment methods are called:

megacarriers.

Lucas is planning a distribution strategy for his business. He is considering using direct marketing, direct selling, and automatic vending which are all examples of _____ retailing.

nonstore

Sophia is the new marketing manager for a new line of laptop, MP3, and smartphone accessories made by the company, Skull Candy. These accessories are trendy, colorful, and more expensive than others on the market. After considering the target market for the products, Sophia has decided not to use marketing-related activities conducted through telemarketing, and instead use vending, a type of _____.

nonstore retailing

Eliminating a wholesaler from a marketing channel will:

not eliminate the functions performed by that wholesaler.

When Zappos Inc., an online marketer of shoes, accessories, and clothing, contracts out the physical distribution task to third parties such as UPS, this arrangement is known as _____. This is due to the fact that UPS does not have managerial authority within the Zappos marketing channel.

outsourcing

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:

pipelines.

Consumers receive the benefits of place utility when:

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

Fiona is a wholesaler who buys greeting cards from Hallmark Cards Inc. and resells them by maintaining displays of greeting cards in drugstores and discount stores. Her daily activities include straightening the cards, pulling outdated or slow sellers, and installing new cards. Fiona is called a(n) _____.

rack jobber

Dawn is concerned that there are not enough buyers in Centerville to support her Quilts Unlimited store. Her business adviser suggests that she should not limit her promotion to the Centerville population but also consider out shoppers. This approach is most likely to work if her store is located in a:

regional shopping center

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:

safety stock

The management at Kohler Inc., a manufacturer of sinks, tubs, and other plumbing products, thinks that there will soon be a major growth in home remodeling due to rising interest rates. The management decides to use _____ in several key cities to provide support services for its sales force in those areas, carry inventory, and offer credit and other services to its retail plumbing customers.

sales branches

In contrast to business purchases, consumer purchases are likely to be influenced by _____.

social influences

Off-price retailers and category killers are both:

specialty retailers.

Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks' coffee drink, Frappucino, to grocery stores and other retail outlets. This is an example of a(n):

strategic channel alliance.

Greenmart Corp. 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:

supply-chain management.

Selling agents perform every wholesaling activity except _____.

taking title to products

When products are presented to television viewers, who can purchase them by calling a toll-free number and paying with a credit card, _____ is being used.

television home shopping

Order processing is defined as:

the receipt and transmission of sales order information.

Channel decisions are important to marketers mostly because:

they involve long-term commitments and affect customer accessibility.

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

tighten its control over distribution of its products.

Matt's girlfriend tells him she wants a cashmere sweater for Christmas. Matt decides to go to a store that provides the best possible selection of sweaters. His best choice would be to shop at a _____ store.

traditional specialty

A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n) _____.

traditional specialty retailer

By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform all of the following physical distribution activities except:

unit pricing.

Retail facilities located in big, low-cost buildings with large on-premise inventories and minimal services are called _____.

warehouse showrooms