mktg 351 ch 14 test questions
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?
80
The Limited, which produces and retails clothing products in a coordinated channel, is an example of a(n)
Corporate VMS
Select the greatest advantage of horizontal channel integration.
Efficiencies in advertising, marketing research, and purchasing are increased.
What function of physical distribution enables companies to compensate for dissimilar production and consumption rates and stabilize prices and availability of seasonal items?
Warehousing
Which of the following physical distribution functions involves design and operation of facilities for storing goods?
Warehousing
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 strategic channel alliance
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
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.
agents
The supply chain includes
all entities that facilitate product distribution
The marketing channel of producer to retailer to consumer is most likely to be used by producers of which of the following products?
automobiles
The Wicks 'N Sticks candle and gift marketing organization has a(n) ___________ vertical marketing system arrangement with its franchised retail store operations.
contractual
The Home Depot is trying to reduce transportation, information management, and administrative costs. To accomplish this goal, channel members need to
cooperate and accommodate one another's needs
The driving force behind marketing channel decisions should be
customer satisfaction
Where do supply chains start?
customers
An important goal of physical distribution is reducing the time it takes to complete
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
cycle time
A channel of distribution is defined as a group of individuals and organizations that
directs the flow of production from producers to customers
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
Gateway Computer makes computers available through its own stores, its toll-free telephone line, and a website. This is an example of
dual distribution
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?
exclusive
The three major levels of intensity at which a company can choose to distribute its products are _____ distribution.
exclusive, selective, and intensive
To expand the number of its retail outlets in the Washington, D.C., area, the Dress Barn bought out a small chain of women's apparel stores in northern Virginia. This type of integration is called
horizontal
An independent business that takes title to products and carries inventories is a(n)
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.
industrial distributor
Producers of convenience products such as soft drinks, toothpaste, and breath mints are most likely to use _____ distribution.
intensive
Sales are most likely to have a direct relationship to product availability for products that use _____ distribution.
intensive
Because of the significant investment many companies have in the products they sell to customers, they must develop and maintain adequate varieties of products to meet their customers' needs. This is called
inventory management
Vertical channel integration
is made possible by purchasing the operations of a link in the channel.
A manufacturer has decided to improve its inventory management by maintaining low inventory levels and waiting to purchase materials until right before they are needed in production. This inventory management technique is called
just-in-time (JIT)
Because Coke is such a popular product and the company is so powerful, Coca-Cola is in a position to exert considerable control over channel structures and the way Coke is marketed. This is an illustration of channel ___________ in the distribution channel.
leadership
Most marketing channels have marketing intermediaries. A marketing intermediary's role is to
link producers to other middlemen or to consumers
If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are
long-term commitments
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)
manufacturer's agent
A group of organizations and individuals that directs the flow of products from producers to the ultimate consumers is called a
marketing channel
What links producers to consumers through the purchase and reselling of products or contractual agreements?
marketing intermediaries
Eliminating a wholesaler from a marketing channel will
not eliminate the functions performed by that wholesaler.
Nathan is trying to decide which shipping company to use to transport his custom-made furniture to customers. Nathan is facing a decision about
order delivery
By receiving orders online instead of through a paper-based ordering system, Barnes and Nobles has been able to save time and money on
order entry
The order-processing task that involves verifying product availability, checking prices and customer credit ratings, and filling orders is
order handling
What are the three primary tasks of order processing?
order handling, order entry, and order delivery
Marketing channels create three types of utility for consumers including
place, time, and possession
Which of the following is the most commonly used channel for distributing business products?
producer, organizational buyer
Nationally distributed consumer convenience products are most likely distributed through which of the following channels?
producer, wholesaler, retailer, consumer
Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following channels?
producers, retailers, consumers
Consumers receive the benefits of place utility when
products are available in locations where consumers want to buy them.
When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a
retailer
Which of the following is most likely to be a product stocked by an industrial distributor?
screws
In marketing a new line of nursery furniture for infants and small children, the Fisher Company will most likely use ___________ distribution for the products.
selective
Durable goods such as television sets and DVD players generally reach their target markets through
selective distribution
Fragile products that require special handling are more likely to be distributed through
shorter channels
Long-term partnerships among channel members working together to reduce inefficiencies, costs, and redundancies in the entire marketing channel is called
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
supply chain management
Possession utility is best described as
the customer having access to the product to use now or store and use later.
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
Having products available when the customer wants them is called
time utility
In a simple economy of five producers and five consumers, there would be ___________ transactions possible without an intermediary and _________ transactions possible with one intermediary.
twenty-five; ten
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
vertical channel integration