marketing chapter 12 final

Which of the following is true of transporting goods via railroads?

Railroads are a cost-effective way to ship large amounts of bulk products over long distances.

________ or "smart tag" technology helps companies locate a product's exact position within its supply chain.

FRID

Which of the following companies uses a direct marketing channel?

Holly Wreaths, a store which sells Christmas ornaments to customers via its online click-to-order catalogs

________ logistics starts with the marketplace and works backward to the factory or even to sources of supply.

customer-centered

Which of the following is a disadvantage of adding new channels in a multichannel distribution system?

decreasing control over the system

In a(n) ________ channel, the same member both produces and distributes a product or service to consumers.

direct

Lifebelt Insurance sells insurance only through its door-to-door salespeople. What type of marketing channel does Lifebelt use?

direct

Stylize, Inc. opened an online store that triggered disagreements between headquarters and the firm's exclusive dealers. This type of a disagreement is known as a(n) ________ conflict.

vertical

Which of the following is a conventional consumer marketing channel?

producer to wholesaler to retailer to end-consumer

Which of the following is NOT a major logistics function?

product designing

Reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers is known as ________.

reverse logistics

________ distribution involves the use of more than one but fewer than all of the intermediaries who are willing to carry a company's products.

selective

For which of the following products would the intensive distribution strategy most likely be used?

soft drinks

The term "supply chain" is considered limited because it ________.

suggests that planning begins with raw materials and factory capacity

Conflict which occurs between different levels of the same marketing channel is known as ________ conflict.

vertical

Which of the following terms refers to the wholesalers and retailers that form a vital link between the firm and its customers?

downstream partners

Which of the following is an advantage of adding new channels in a multichannel distribution system?

expanding sales and market coverage

Which of the following is true of conventional distribution channels?

Channel members seek to maximize their own profits.

________ occurs when product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones.

Disintermediation

Which of the following is true of vertical marketing systems?

Producers, wholesalers, and retailers act as a unified system.

Which of the following is true of changes in the organization of distribution channels?

The growth of the Internet threatens many "brick-and-mortar" companies with disintermediation.

Which of the following is true of channel members?

They play specialized roles in the channel

Which of the following is most likely a manufacturer-sponsored retailer franchise system?

Toyota and its network of independent franchised dealers

Which of the following is true of using trucks as a transportation mode?

Trucks are highly flexible in their routing and time schedules.

Which of the following is true of shipping goods via water transportation?

Water transportation is the slowest mode of transportation and the most affected by the weather.

Which of the following is an example of an indirect marketing channel?

Wine & Dine, which sells its picnic hampers to select novelty stores across the country

Which of the following is a major type of vertical marketing system (VMS)?

corporate

In a(n) ________, leadership is assumed not through common ownership or contractual ties but through the size and power of one or a few dominant channel members.

administered VMS

________ is a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties

administered VMS

Heart of Midnight sells blue orchids to major florists around the world. Their key requirement is speed. Which of the following modes of transport will help them?

air carriers

Which of the following is true about using air carriers as a transportation mode when shipping products?

air carriers are ideal when time is short and speed is needed

Which of the following is the most effective way for a company to ship perishable goods over long distances, if its key requirement is speed?

air transport

Plasticine Palace supplies its products exclusively to Arts & Crafts, a chain of stationery stores across the country. The chain then makes the plasticine available to end-consumers. This is an example of ________.

an indirect marketing channel

Which of the following should be a manufacturer's first step when designing an effective marketing channel?

analyze consume needs

A ________ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.

channel level

A strategy of exclusive dealing is most likely considered legal if ________.

competition is not substantially lessened

At its most basic form, a marketing channel consists of the producer and the ________.

consumer

A ________ consists of independent firms at different levels of production and distribution who join together through formal agreements to obtain more economies or sales impact than each could achieve alone.

contractual VMS

A(n) ________ consists of one or more independent producers, wholesalers, and retailers, each seeking to maximize its own profits, sometimes even at the expense of the system as a whole.

conventional distribution channel

________ are large and highly automated warehouses designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible.

distribution centers

________ are complex behavioral systems in which people and companies interact to accomplish individual, company, and channel goals.

distribution channels

Which of the following is an environmental factor that affects channel objectives and design?

economic conditions

Ocean Spray sells its air fresheners only through Ray's Retail Chain. This is an example of ________ distribution.

exclusive

When a seller requires its dealers to abstain from handling competitors' products, it is called ________.

exclusive dealing

When the seller allows only certain outlets to carry its products, this strategy is called ________.

exclusive distribution

With which of the following strategies would a company give only a limited number of dealers the right to distribute its products in their territories?

exclusive distribution

Which of the following involves the producer agreeing not to sell to other dealers in a given area, or the buyer agreeing to sell only in its own region?

exclusive territorial agreement

In intermodal transportation, which of the following describes the use of both water and trucks for transportation?

fishy back

The ________ organization is the most common type of contractual relationship.

franchise

Producers of strong brands sometimes sell to dealers only on the condition that dealers take some or all of the rest of a product line. This practice is known as ________.

full-line forcing

The greater the number of channel levels in a marketing channel, the ________.

greater the channel complexity

Smart Shoppers, an online store which delivers its products to homes in and around California, recently switched its entire fleet to biodiesel trucks that run on used cooking oil rather than gas. Smart Shoppers has most likely developed a(n) ________.

green supply chain

Conflict which occurs among firms at the same level of the marketing channel is known as ________ conflict.

horizontal

Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ________ conflict.

horizontal

The management of two Panizza restaurants have an ongoing disagreement over the discount rate given to students from the local high school. This is an example of ________ conflict.

horizontal

In a(n) ________, two or more companies at one level join together to follow a new marketing opportunity.

horizontal marketing system

When McDonald's offers its products inside of a Walmart store, it is using a(n) ________.

horizontal marketing system

Why do firms have difficulty accessing potential market areas in developing countries, such as China and India?

inadequate distribution systems

________ logistics refers to moving products and materials from the suppliers to the factory.

inbound

A marketing channel which consists of one or more intermediaries is known as a(n) ________ marketing channel.

indirect

Whitelight stocks its toothpastes in all convenience stores across the country. This is an example of ________ distribution.

intensive

________ distribution is a strategy in which producers of convenience products and raw materials stock their products in as many outlets as possible.

intensive

________ play an important role in matching supply and demand by providing consumers with a broad assortment of products in small quantities.

intermediaries

Which of the following is true of the exclusive distribution strategy?

it is used primarily for convenience items

________ management is the logistics concept that emphasizes teamwork—both inside the company and among all the marketing channel organizations—to maximize the performance of the entire distribution system.

logistics inventory

For which of the following would a company use an exclusive distribution strategy?

luxury cars

Ford and its network of independent franchised dealers is an example of a ________.

manufacturer-sponsored retailer franchise system

Fire Up makes fireproof clothing material and licenses select stores around the world to use its material to make finished products with the Fire Up logo. Which of the following types of franchising is evident here?

manufacturer-sponsored wholesaler franchise system

A ________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.

marketing channel

________ management calls for selecting, managing, and motivating individual channel members and evaluating their performance over time.

marketing channel

From the economic system's point of view, the role of ________ is to transform the assortments of products made by producers into the assortments wanted by consumers.

marketing intermediaries

________ involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit.

marketing logistics

Movie Giants offers DVD rentals through its Web site. It also offers DVD rentals via Star City stores. This is an example of a(n)________ distribution system.

multichannel

A(n) ________ system involves a single firm setting up two or more marketing channels to reach one or more customer segments.

multichannel distribution

Atlas Imports and Exports sells products directly to consumers via the Atlas Web site, and through local retailers as well. Which of the following is evident here?

multichannel distribution system

________ logistics involves moving products from the factory to resellers and ultimately to customers.

outbound

To help recruit, train, organize, manage, motivate, and evaluate relationships with channel partners, companies are now installing integrated high-tech ________ systems.

partnership relationship management (PRM)

Which of the following is a type of flow that connects all institutions in a marketing channel?

payment flow

In intermodal transportation, which of the following describes the use of both rail and trucks for transportation?

piggyback

________ are a specialized means of shipping petroleum, natural gas, and chemicals from sources to markets.

pipelines

Which of the following is an indirect business marketing channel?

producer to business distributor to business customer

________ management refers to the management of upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.

supply chain

The term "demand chain" is considered limited because it ________.

takes a step by step, linear view of purchase-production-consumption activities

Which of the following is most likely true of marketing channel decisions?

they often involve long-term commitments to other firms

The sets of firms that supply companies with the raw materials, components, parts, information, finances, and expertise needed to create products or services are known as ________.

upstream partners

Using ________, retailers can share real-time data on sales and current inventory levels with suppliers.

vendor-managed inventory (VMI) systems

A(n) ________ marketing system consists of producers, wholesalers, and retailers acting as a unified system.

vertical

When KFC came into conflict with its franchisees over the brand's "Unthink KFC" repositioning, which emphasized grilled chicken over its traditional Kentucky fried chicken, KFC experienced ________ conflict.

vertical

Which of the following is the most effective way for a company to ship bulky, non-perishable products if its key requirement is low-price?

water carriers

A ________ integrates successive stages of production and distribution under single ownership.

corporate VMS

The Bookworm began delivering books directly to customers through mail instead of selling through "brick-and-mortar" companies. This is an example of ________.

disintermediation

A ________ is made up of the company, suppliers, distributors, and customers who partner with each other to improve the performance of the entire system.

value delivery network