MKT 350 Test 3, MKTG 351 CHAPTER 15, MKT 230 Chapter 14, QUIZ Chapters 11, 14,15,, MKTG 330: Chapter 14 Quiz, MKTG 409 Chapter 14

Reasons for Growth in Services

-Increasing Affluence -More Leisure Time -More Female Participation in Workforce -Longer Life Expectancy -Greater Complexity of Products -Greater Complexity of Life -Greater Concern for Environment -Technology Growth

Channel of Distribution

A channel of distribution, or group of interrelated intermediaries (middlemen) who direct products to consumers.... any series of firms or individuals who participate in the flow of products from producer to final user or consumer Two major types of intermediaries: Merchants—take title to merchandise and resell it and Agents and Brokers who receive a fee or commission for expediting exchanges.

Characteristics of Digital Marketing

Addressability -ability to identify customers before they make purchase and when they return (cookies to personalize) Interactivity -Can interact with customers in "real time. (Community) Accessibility -Ease with which we can access information. (Google it) Connectivity -Social media, Review sites, crowdsourcing, reviews Control -Consumer controls—Permission based marketing

Virtual Sites/ Gaming

Allows new and different ways for marketers to connect with customers. Virtual technology for meetings/recruiting

Services Defined

An intangible product involving a deed, performance or an effort that cannot be physically possessed. Can be provided through human or mechanical efforts.

Facilitating Agents

Are not channel members but provide limited services to channel members... Public Warehouses Finance Companies Ad Agencies Transportation Companies Trade Shows/Marts Factoring Houses

The Armadillo's Revenge is an off-beat steak house that features highway signs, parts of diesel tractor trucks, and billboards as part of the interior decor. Restaurant personal are dressed as paramedics and colorful armadillo posters decorate the ceiling. These surroundings are designed to attract a certain type of target customer. This is referred to as:

Atmospherics

what differentiates from "for profit" marketing?

Bosses (board) don't oversee as directly— More creativity—fewer dollars/less supervision Sometimes controversial More diverse beneficiaries

Which of the following products would probably use the longest channel of distribution?

Chewing gum.

Which of the following would have the greatest width at the retail level?

Coca Cola soda

Aspects of Digital Marketing

Consumer and Business to Business Ability to Share Information-Wikis, Blogs, Social Networking, You Tube, Websites themselves Rapid Response, Expanded Customer Service, Reduced Costs and Reduced Geographic Barriers

A channel of distribution is a group of individuals and organization that:

Directs the flow of products from producers to customers.

Channel Conflict

Dual Distribution issues: Gray Marketers (diverters) Freeriders disagreements among marketing channel members on goals, roles, and rewards - who should do what and for what rewards

If a manufacturer uses UPS to deliver a rush package to a retailer, UPS is a\an:

Facilitating agent.

If some merchants in the Battlefield Mall refuse to pay their mall association dues, this may lead to vertical channel conflict.

False

One reason that franchising is growing so rapidly is that franchise agreements only loosely describe the franchisor's and franchisee's respective rights and obligations, giving both considerable competitive flexibility in management decisions.

False

Retailers are frequently found in business product channels. a. True b. False

False

The shortest possible distribution channel would be producer to retailer to consumer. a. True b. False

False

When AT&T acquired Time Warner, this was an example of a contractual VMS. a. True b. False

False

The retailer is usually in an excellent position to:

Gain feedback from consumers.

Most Popular Search Engine

Google

Which stage in the product life cycle is critical to a product's survival because competitive reactions to the product's success during this period will affect the product's life expectancy? a. Expansion b. Introduction c. Stabilization d. Decline e. Growth

Growth

Channel Integration

Horizontal Integration—Act of acquiring other operations at same level of channel ie., Safety buys Kroger AT&T buys MCI Vertical Integration-Combining two or more levels of marketing channels..Wal-mart buys a manufacturer or Ann Taylor develops retail outlets....

Unique Characteristics of services

Intangibility Inseparability of production & consumption Perishability Heterogeneity Client-based relationships Customer contact

Paper towels and trash-can bags are most likely distributed through ____ and ____. a. exclusive distribution; a single channel b. multichannel distribution; convenience channels c. selective distribution; multiple channels d. intensive distribution; multichannel distribution e. strategic channel alliances; intensive distribution

Intensive distribution, multichannel distribution

Sam's Widgets used to be available everywhere. But, as Sam became more successful, he specialized in more expensive widgets that not every household could afford. Accordingly, Sam reduced the number of Widget outlets to a few in each town and gave more Widget business to his dealers who proved they could support the product well. Sam is moving from which kind of distribution strategy to which other kind?

Intensive to selective.

Types of Distribution

Intensive—Widely distributed, convenience products Selective—Shopping products, limited distribution in selected market Exclusive—Specialty products, singular distribution in selected area

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)

Vertical and horizontal integration/expansion are carefully scrutinized for legality by the federal government. The main concern here is for:

Lessening of competition.

Relationship of Marketing and IT

Marketing is the slick body of the car, but IT is the engine! IT department is your friend

Social Media Trends

Mobile Marketing Viral Marketing Apps Facebook Twitter Pinterest YouTube Instagram Linked In

Mattie went shopping for a new pair of Levi jeans yesterday. She saw jeans at a department store priced from $45 to $59, but she chose not to buy any because she thought they were too expensive. On her way home she passed a stand where a man was selling Levi jeans for $20 a pair, and she bought two pairs from him. The sign in front of his stand announced that he had bought the jeans from a retailer who had gone out of business. Mattie's jeans were being sold:

On the gray market.

Dual Distribution

Operating through more than one channel I.e, Barnes and Noble with "Brick and Mortar" stores and Internet site.... Coke—Vending Machines, Corporate, Distributors

A concert is given for which 5,000 seats remain unsold. The impossibility of saving those seats for sale at another time is related to which characteristic of services?

Perishability

Push vs. Pull

Push: the idea that marketers are attempting to push their products at consumers. Common sales tactics include trying to sell merchandise directly to customers via company showrooms and negotiating with retailers to sell their products for them, or set up point-of-sale displays. Pull: to get the customers to come to you, hence the term pull, where marketers are attempting to pull customers in. Common sales tactics used for pull marketing include mass media promotions, word-of-mouth referrals and advertised sales promotions. From a business perspective, pull marketing attempts to create brand loyalty and keep customers coming back, whereas push marketing is more concerned with short-term sales.

How google search works

Relvance, key words

Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n)

Retailer

Ways Marketers use the Web to Market

SEO/SEM - Search Engine Optimization (Free) PPC - Pay per click Emails/Eblasts Affiliate Marketing Social Networking/Branded Content Website Itself Apps

Experience and Credence Qualities of Service

Search Qualities-tangible attributes Experience Qualities-can be assessed only during/ after consumption Credence Qualities-customer may be unable to evaluate even after consumption[

Ethical/Legal Issues

Security Children and the Internet (COPA) Privacy Spam-unsolicited E-mail Online Fraud Intellectual Property/File sharing

Because of complaints that, depending on the bartender, the drinks being served in the Sea Breeze Hotel were either too weak or too strong, the manager installed a computerized bar that mixed all beverages. This was a response to problems associated with service:

Standardization/heterogeneity

E-Marketing

Strategic process of creating, distributing, promoting and pricing products for targeted customers in the virtual environment of the Internet and beyond.

All of the following are reasons a company would likely emphasize advertising in its promotion mix except a. The company's customers are dispersed across a vast region b. The size of the product's target market consists of millions of consumers c. The company's products are seasonal in nature d. The company's promotion budget is extensive e. The company has chosen exclusive distribution for its products

The company has chosen exclusive distribution for its product

A brand name should indicate the product's major benefits. a. True b. False

True

A product need not be a physical product. a. True b. False

True

According to class lecture/notes, 70% of customers research a product online regardless of where they make their final purchase.

True

Approximately 80% of people will not look past the first page of a search. If they don't find what they are looking for in the first few items that pull up, they will tend to refine their search.

True

Co-branding capitalizes on the trust that customers have in both companies involved, especially when the brands complement one another in the mind of the buyer. a. True b. False

True

Compared to an unfamiliar brand, a familiar brand is more likely to be selected by a customer because it often is viewed as reliable and of acceptable quality. a. True b. False

True

Customers use brands to help judge product quality. T/F

True

Direct selling is the most expensive form of retailing. a. True b. False

True

Long-term commitments usually characterize the relationships among channel members. a. True b. False

True

Marketing intermediaries can reduce the cost of exchanges. a. True b. False

True

Merchant wholesalers assume risks of ownership.

True

Packaging can be used to communicate symbolically the quality or premium nature of a product. a. True b. False

True

The Web is sometimes referred to as a pull medium because customers determine which Web sites they visit.

True

The atmosphere and décor of a retail store, the variety and depth of product choices, the customer support, even the sounds and smells all contribute to the experiential element of its total product. a. True b. False

True

The first adopters of a product are the innovators. a. True b. False

True

Two ways to pull up higher in the organic search rankings is through appropriate use of key words and linking.

True

Warehouse clubs are able to offer a broad range of merchandise because their product lines are shallow and their sales volumes high. a. True b. False

True

Whereas the marketing channel is a group of interrelated organizations that direct products to customers, physical distribution deals with physical movement and inventory holding both within and among intermediaries

True

Wholesalers may provide marketing activities for those above and below them in the marketing channel.

True

You can "eliminate the middleman" but you can't eliminate the middleman's functions.

True

Digital Marketing

Uses all digital media to develop communication and exchanges with customers.

If a wine maker decides to buy a bottle labeling operation, it would be an example of:

Vertical integration

Structure of Channels

Vertical—Length of Channel Short channels, more control/contact with customers Long channels Horizontal—Number of participants of the same type at a given level of channel. i.e, Toy Industry—Manufacturers—Tyco, Mattel, Hasbro, Ty Retailers-Toys R Us, Wal-mart, Kaybee

Nonprofit Marketing

Whereas the chief beneficiary of a business enterprise is whoever owns it or has stock in it, in theory, the only beneficiaries of a nonprofit organization are its clients, its member or the public at large.

The salvage value of unsold services is:

Zero.

66. What is a primary difference between an industrial distributor and a manufacturers' agent? a) A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does. b) A manufacturers' agent is employed by the manufacturers while an industrial distributor is independent. c) An industrial distributor is employed by the manufacturers while a manufacturers' agent is independent. d) A manufacturers' agent rarely adds any value to the marketing channel while an industrial distributor reduces costs significantly. e) An industrial distributor does not form relationships with customers for repeat business whereas a key asset of a manufacturers' agent is his knowledge of his customers.

a) A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does.

175. If Anheuser-Busch refused to allow Jackson Distributing to carry its product if the distributor also carried Miller Brewing products, the company would have been engaging in which of the following channel management practices? a) Exclusive dealing b) Dual distribution c) Tying contacts d) Refusal to deal e) Restricted sales territories

a) Exclusive dealing

164. Which of the following organizations consolidates shipments from several firms into more efficient lot sizes? a) Freight forwarder b) Forwarding agency c) Transporter d) Special transportation company e) Intermodal shipping company

a) Freight forwarder

161. ___________ is the combining and coordinating of two or more modes of transportation to take advantage of benefits offered by each of the different types of carriers. a) Intermodal transportation b) Physical distribution c) Containerized movement d) Efficient transportation e) Freight forwarding

a) Intermodal transportation

32. What links producers to consumers through the purchase and reselling of products or contractual agreements? a) Marketing intermediaries b) Distributors c) Suppliers d) Middle marketers e) Marketing channels

a) Marketing intermediaries

155. Which mode of transportation hauls more freight than any other? a) Railroads b) Waterways c) Pipelines d) Trucks e) Airways

a) Railroads

154. Which major mode of freight transportation provides the most flexible schedules and routes? a) Trucks b) Waterways c) Airways d) Pipelines e) Railroads

a) Trucks

70. 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) a strategic channel alliance. b) exclusive distribution. c) dual distribution. d) horizontal channel integration. e) channel leadership.

a) a strategic channel alliance.

98. When a single channel member manages an integrated marketing channel to achieve low-cost, efficient distribution for satisfying target markets, ______ exists. a) a vertical marketing system b) horizontal channel integration c) channel power d) channel cooperation e) extensive distribution

a) a vertical marketing system

105. In an administered vertical marketing system (VMS), interorganizational relationships are a) achieved by informal coordination. b) formalized through contracts. c) combined under the ownership of a single organization. d) guided by legal agreements. e) achieved by clearly defining the obligations and rights of all channel members.

a) achieved by informal coordination.

150. A public warehouse is a a) business that leases storage space and related facilities for distribution to other firms. b) large, centralized warehouse that focuses on moving rather than storing goods. c) company that provides a complete array of logistical services for businesses. d) company-operated facility for storing and shipping products. e) warehouse used to store the personal property of many different customers.

a) business that leases storage space and related facilities for distribution to other firms.

93. Marketing channel members are likely to experience misunderstandings, frustration, and poorly coordinated strategies as a result of a) channel conflict caused by inefficient communication between channel members. b) open communication among the channel members. c) methods of channel coordination designed to reduce ambiguity. d) negotiating territorial issues among regional distributors of a product. e) allowing one member of the channel to take the role of channel captain.

a) channel conflict caused by inefficient communication between channel members.

94. When produce companies such as Dole Tomatoes bypass wholesalers and sell directly to retailers, it is likely to create channel ___________ between Dole and these wholesalers. a) conflict b) cooperation c) leadership d) integration e) flows

a) conflict

107. In the distribution channel for Domino's Pizza, channel members are linked by legal agreements that spell out the obligations and rights of each member. This is an example of a(n) ___________ vertical marketing system. a) contractual b) administered c) corporate d) negotiated e) institutional

a) contractual

122. 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 a) cycle time. b) order processing. c) turn-around. d) shipping time. e) transportation.

a) cycle time.

67. 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 a) dual distribution. b) industrial distribution. c) strategic channel alliance. d) supply chain management. e) an unethical marketing channel.

a) dual distribution.

69. Gateway Computer makes computers available through its own stores, its toll-free telephone line, and a website. This is an example of a) dual distribution. b) vertical integration. c) horizontal integration. d) tying agreements. e) exclusive dealing.

a) dual distribution.

57. An independent business that takes title to products and carries inventories is a(n) a) industrial distributor. b) intermediary. c) agency. d) wholesaler. e) producer.

a) industrial distributor.

136. 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 a) just-in-time (JIT). b) time management. c) inventory minimization. d) economic order quantity. e) reorder point maximization.

a) just-in-time (JIT).

35. If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are a) long-term commitments. b) short-term commitments. c) easier to change than prices. d) easier to change than promotion. e) impossible to change.

a) long-term commitments.

165. Freight transportation companies that offer several different shipment methods are called a) megacarriers. b) intermodal transporters. c) freight forwarders. d) shipping experts. e) superfreighters.

a) megacarriers.

114. If a firm decides to contract its physical distribution functions to third parties that have no managerial authority within the marketing channel, it is using a) outsourcing. b) sole-sourcing. c) logistics. d) wholesaling. e) distribution services.

a) outsourcing.

37. Marketing channels create three types of utility for consumers including a) place, time, and possession. b) location, availability, and suitability. c) time, location, and promotion. d) retailer, wholesaler, and producer. e) position, possession, and place.

a) place, time, and possession.

54. Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) _________ channel. a) producer-to-business buyer b) producer-to-industrial-distributor-to-business buyer c) producer-to-agent-to-business buyer d) equipment e) consumer

a) producer-to-business buyer

47. After direct-marketing, the next slightly longer marketing channel adds a(n) a) retailer. b) producer. c) wholesaler. d) agent. e) consumer.

a) retailer.

48. When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a a) retailer. b) wholesaler. c) broker. d) functional middleman. e) producer.

a) retailer.

80. Using only some of the available outlets to distribute a product is called a) selective distribution. b) intensive distribution. c) channel conflict. d) vertical channel integration. e) exclusive distribution.

a) selective distribution.

23. Long-term partnerships among channel members working together to reduce inefficiencies, costs, and redundancies in the entire marketing channel is called a) supply chain management. b) vertical channel integration. c) industrial management. d) industrial distribution. e) marketing management.

a) supply chain management.

28. 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 a) supply chain management. b) a vertical marketing system. c) a horizontal marketing system. d) channel conflict. e) dual distribution.

a) supply chain management.

124. Order processing is defined as a) the receipt and transmission of sales order information. b) the second stage in a physical distribution system. c) the four main tasks. d) the same as order handling. e) electronic processing of information.

a) the receipt and transmission of sales order information.

170. The main reason a manufacturer will prohibit intermediaries from selling its products outside designated sales territories is to a) tighten its control over distribution of its products. b) discourage competition from other manufacturers. c) incorporate selective distribution. d) contain distribution costs. e) punish intermediaries for past behavior.

a) tighten its control over distribution of its products.

141. Johnson Controls hires a consultant to assess its materials handling procedures. The consultant recommends the implementation of ___________ if they want easier movement of items between internal destinations in the warehouse. a) unit loading b) piggybacking c) containerization d) inventory management e) priority transportation

a) unit loading

118. The best way to reduce overall distribution costs is to a) use a total-cost approach to analyze and evaluate the entire system. b) minimize the costs associated with materials handling and transportation. c) reduce the number of distribution functions that are necessary. d) find the cheapest price for each function and use them to create the system. e) lower the service standards that the company has.

a) use a total-cost approach to analyze and evaluate the entire system.

An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is called Select one: a. exclusive dealing. b. exclusive distribution. c. refusal to deal. d. a tying agreement. e. contractual VMS.

a.

Channel decisions are important to marketers mostly because Select one: a. they involve long-term commitments and affect customer accessibility. b. consumers value reasonable prices delivered through marketing channels. c. many businesses are marketing intermediaries. d. they are relatively flexible to change quickly. e. they dictate what promotional strategies companies should use.

a.

Eliminating a wholesaler from a marketing channel will Select one: a. not eliminate the functions performed by that wholesaler. b. eliminate the functions performed by that wholesaler. c. lead to lower costs but higher prices. d. reduce channel conflict. e. cut costs and lower prices.

a.

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. Select one: a. conflict b. power c. leadership d. understanding e. communication

a.

Which of the following business marketing channels is most likely to be used? a. producer to customer b. producer to agent to industrial distributor to customer c. producer to manufacturer's agent to customer d. producer to industrial distributor to customer e. producer to industrial distributor to retailer to customer

a. producer to consumer

Which of the following is often favored by intermediaries? a. restricted sales territories b. refusal to deal c. full-line forcing d. exclusive dealing e. tying agreements

a. restricted sales territories

rob stevens is the head of a company that produce 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: -wholesalers -brokers -agents -merchants -retailers

agents

157. If a microchip in a computer in New York failed, which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from Silicon Valley, California? a) Pipeline b) Airways c) Waterways d) Truck e) Railroad

b) Airways

56. Caruthers Paint Manufacturing Company buys the chemicals it needs for producing its products from a chemical producer, Roth Chemicals. In this instance, the chemicals are being distributed to Caruthers through which of the following types of channels? a) Industrial distributor b) Direct distribution c) Retail d) Wholesaler-sponsored e) Producer

b) Direct distribution

52. Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channel are these manufacturers most likely to use? a) Producer, consumer b) Producer, wholesaler, retailer, consumer c) Producer, wholesaler, agent, retailer, consumer d) Producer, retailer, consumer e) Retailer, consumer

b) Producer, wholesaler, retailer, consumer

85. For which of the following products would exclusive distribution be most appropriate? a) Gasoline b) Rolls Royce automobile c) Washing machine d) Laundry detergent e) Moderately priced luggage

b) Rolls Royce automobile

146. What function of physical distribution enables companies to compensate for dissimilar production and consumption rates and stabilize prices and availability of seasonal items? a) Materials handling b) Warehousing c) Transportation d) Inventory management e) Order processing

b) Warehousing

159. The Diamond Salt Company needs to transport 20 tons of salt from Baton Rouge, Louisiana, to Cincinnati. Which of the following methods would be the cheapest for transporting this cargo? a) Pipelines b) Waterways c) Trucks d) Airways e) Railroads

b) Waterways

63. A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances? a) When the firm wants specialized personnel to follow up the work of the sales force b) When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force c) When only one or two channels of distribution are available for products d) When the sales force is large and the marketer is thinking of cutting it down e) When customers are highly concentrated in one geographic area

b) When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force

88. Nike maintains a good deal of control over how its products are promoted, displayed, and sold. Because of this control, Nike would be appropriately described as the channel a) intermediary. b) captain. c) allocator. d) terminator. e) price leader.

b) captain.

90. When one company in a marketing channel has the ability to influence another member's goal achievement, the company has a) channel control. b) channel power. c) marketing leadership. d) a channel captain. e) distributive influence.

b) channel power.

143. Fansteel manufactures parts used in jet engines, which it sells to companies such as Boeing. When shipping products to Boeing, Fansteel seals the parts in 8' × 8' × 40' boxes for shipping to decrease loss and damage. This method of materials handling is a) unit loading. b) containerization. c) freight forwarding. d) unitized shipping. e) bonded packaging.

b) containerization.

30. A channel of distribution is defined as a group of individuals and organizations that a) consumes about one-half of every dollar spent on products in the United States. b) directs the flow of products from producers to customers. c) links producers to other marketing intermediaries. d) takes title to products and resells them. e) manages transportation and warehousing functions.

b) directs the flow of products from producers to customers.

120. At the annual managers' planning conference, Jackie Conrad asks the other managers to consider her proposal to increase the quantity of inventory to a five-week supply in order to increase the percentage of completely filled customer orders from 85 percent to 90 percent. She states that she is willing to trade off the ___________ incurred for the positive effect of better customer service. a) lower response time b) higher warehousing costs c) higher transportation costs d) higher order processing costs e) higher performance levels

b) higher warehousing costs

75. When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most likely used ___________ distribution. a) horizontal b) intensive c) selective d) agent e) exclusive

b) intensive

77. Candy bars and chewing gum are most likely to be distributed through _____ and _____. a) selective distribution; multiple channels b) intensive; dual distribution c) strategic channel alliances; intensive d) exclusive; a single channel e) dual distribution; convenience channels

b) intensive; dual distribution

86. 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. a) conflict b) leadership c) dominance d) cooperation e) negotiation

b) leadership

33. Most marketing channels have marketing intermediaries. A marketing intermediary's role is to a) link wholesalers to other wholesalers. b) link producers to other middlemen or to consumers. c) always sell products to wholesalers. d) not take title to products. e) always sell products to retailers.

b) link producers to other middlemen or to consumers.

133. The result of an inventory stockout is usually an increase in a) inventory costs. b) lost sales. c) net profit. d) customers. e) prices.

b) lost sales.

65. 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) a) sole intermediary. b) manufacturers' agent. c) producers' broker. d) industrial distributor. e) channel facilitator.

b) manufacturers' agent.

29. A group of organizations and individuals that directs the flow of products from producers to the ultimate consumers is called a a) free trade association b) marketing channel c) channel of suppliers d) production line-up e) chain of retailers

b) marketing channel

41. Eliminating a wholesaler from a marketing channel will a) cut costs and lower prices. b) not eliminate the functions performed by that wholesaler. c) eliminate the functions performed by that wholesaler. d) lead to lower costs but higher prices. e) reduce channel conflict.

b) not eliminate the functions performed by that wholesaler.

126. By receiving orders online instead of through a paper-based ordering system, Barnes and Nobles has been able to save time and money on a) electronic data interchange. b) order entry. c) inventory management. d) order delivery. e) order handling.

b) order entry.

127. The order-processing task that involves verifying product availability, checking prices and customer credit ratings, and filling orders is a) warehousing. b) order handling. c) information processing. d) materials handling. e) order entry.

b) order handling.

89. Few supermarkets would try to replace a national brand of baby food with their own brand. Assuming that this is true, we have a good example of channel leadership by a) wholesalers. b) producers. c) retailers. d) agents. e) brokers.

b) producers.

138. All of the following are concepts used in a just-in-time inventory management system except a) supplies arrive just as they are needed. b) safety stock is kept to reduce stockouts. c) much waste is eliminated. d) purchases are made in small quantities. e) purchases are made frequently.

b) safety stock is kept to reduce stockouts.

72. Fragile products that require special handling are more likely to be distributed through a) longer channels. b) shorter channels. c) Channel D. d) Channel H. e) exclusive outlets.

b) shorter channels.

38. Possession utility is best described as a) products being available in places where the customers wish to purchase them. b) the customer having access to the product to use now or store and use later. c) having a company's products available when a customer needs them. d) being able to legally own a product despite restrictions on trade. e) getting the products to the consumers in as short of time as possible for ownership.

b) the customer having access to the product to use now or store and use later.

100. The reasons a vertically integrated channel can be more effective against competition is because of all of the following except a) the consolidation of power. b) tightly controlled and bureaucratic management style. c) the ability to inhibit competitors. d) the sharing of responsibilities and information. e) increased bargaining power.

b) tightly controlled and bureaucratic management style.

36. Having products available when the customer wants them is called a) place utility. b) time utility. c) availability. d) possession utility. e) chronavailability.

b) time utility.

102. When Benetton, the Italian sportswear designer and manufacturer, decided to open its own specialty shops to sell its merchandise, the firm was engaging in a) channel repetition. b) vertical channel integration. c) channel conflict. d) horizontal channel integration. e) channel expansion.

b) vertical channel integration.

101. Bennetton, a leading manufacturer of knitwear in Italy, expanded its operations to include retail outlets in the United States and South America. This type of integration is called a) horizontal. b) vertical. c) multilevel. d) retail. e) merchandising.

b) vertical.

A marketing channel is defined as a group of individuals and organizations that Select one: a. consumes about one-half of every dollar spent on products in the United States. b. directs the flow of products from producers to customers. c. links producers to other marketing intermediaries. d. manages transportation and warehousing functions. e. takes title to products and resells them.

b.

Netflix sells its movie services using its website while Red Box sells its movie services using vending machines. From a customer's point of view, Netflix is using _________________ and Red Box is using ____________ . Select one: a. an Internet wholesaler; a retailer. b. a direct-marketing channel; a type of retailer. c. an Internet wholesaler; a slightly longer channel. d. a direct-marketing channel; an agent. e. a direct marketing channel; a slightly shorter channel.

b.

Which of the following levels of market coverage is most appropriate for products that have a high replacement rate, require almost no service, and are bought based on price cues? a. selective distribution b. intensive distribution c. exclusive distribution d. digital distribution e. physical distribution

b. intensive distribution

Which of the following involves planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet customers' needs and wants? a. physical distribution b. logistics management c. supply-chain management d. supply management e. operations management

b. logistics management

The use of a variety of marketing channels to ensure maximum distribution is best called _____________. a. supply chain alliances b. multichannel distribution c. digital distribution d. logistics e. channel integration

b. multichannel distribution

Hulu enables consumers to watch select TV shows whenever they want instead of when they are broadcast. This illustrates _______________. a. possession utility b. time utility c. form utility d. technological utility e. place utility

b. time utility

Which of the following provides time utility by enabling firms to compensate for dissimilar production and consumption rates? a. inventory management b. warehousing c. materials handling d. transportation e. order processing

b. warehousing

The Target bullseye is a classic example of a brand name. brand. brand mark. trade name. brand symbol.

brand mark

If Glade, which markets Glade scented Plug Ins and Glade scented candles and wax melts were to introduce Glade laundry detergent and dryer sheets with the same scents, this would be called ____ branding. a. individual b. family c. licensed d. brand-extension e. new-product

brand- extension

135. 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? a) 50 b) 150 c) 80 d) 200 e) 400

c) 80

168. In which of the following situations is dual distribution likely to be determined illegal? a) A manufacturer sells its product online and through independent and company-owned retail outlets. b) A manufacturer opens its own retail outlets across the country and sells its entire line of products. c) A producer uses company outlets to dominate independent retailers that carry its products. d) A producer sells its products both to wholesalers who deal with small and medium-sized retailers and directly to retailers. e) A producer charges higher prices at its company-owned retail outlets than independent retailers charge for the same products.

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

50. The marketing channel of producer to retailer to consumer is most likely to be used by producers of which of the following products? a) Chewing gum b) Tobacco c) Automobiles d) Hardware e) Saltine crackers

c) Automobiles

26. Where do supply chains start? a) Raw materials b) Suppliers c) Customers d) Producers e) Retailers

c) Customers

132. Greg Braddock is a physical distribution manager. He is currently developing and maintaining assortments of products that are adequate for customer demand. In which stage in the physical distribution system is Greg currently involved? a) Order processing b) Materials handling c) Inventory management d) Transportation e) Warehousing

c) Inventory management

71. Which of the following is least likely to be a factor affecting the selection of marketing channels? a) Customer characteristics b) Product attributes c) Product packaging d) Competition e) Environmental forces

c) Product packaging

59. Which of the following is most likely to be a product stocked by an industrial distributor? a) Tires b) Exercise equipment c) Screws d) Countertops e) Bananas

c) Screws

134. Anna Wren, sales manager for Pacific Lumber, tells Jason Peoples, the firm's inventory manager, that the firm's failure to have adequate supplies of pressure-treated lumber on hand has cost the firm $175,000 in lost sales. This figure represents which of the following inventory management costs? a) Carrying b) Replenishment c) Stockout d) Safety stock e) Reorder

c) Stockout

60. Which of the following describes a disadvantage of using industrial distributors? a) Industrial distributors possess considerable market information. b) Their marketing exchange relationships are very focused. c) They are unlikely to handle bulky items or items that are slow sellers. d) Industrial distributors sell specific brands aggressively. e) Industrial distributors acquire title to the products and take possession.

c) They are unlikely to handle bulky items or items that are slow sellers.

174. If an intermediary wants to carry Tide detergent and Procter & Gamble agrees only if the supplier purchases P&G's entire line of detergents as well, the company is engaging in which of the following channel management practices? a) Exclusive dealing b) Dual distribution c) Tying agreement d) Refusal to deal e) Restricted sales territories

c) Tying agreement

44. Customers who purchase computer laptops from manufacturer websites are acquiring products through a) the most efficient channel of distribution. b) the most common type of marketing channel. c) a direct-marketing channel. d) a business-to-business channel of distribution. e) an indirect-marketing channel.

c) a direct-marketing channel.

64. 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. a) wholesalers b) brokers c) agents d) merchants e) retailers

c) agents

62. A producer is not likely to receive _____ from an industrial distributor. a) selling activities in local markets b) market information about consumers c) aggressive promotion of its brand d) reduced capital requirements e) a reduced financial burden from customers

c) aggressive promotion of its brand

158. Kolder Inc. is using a new just-in-time inventory management system that requires ordering smaller quantities of parts more frequently. The success of its business depends significantly on receiving these parts very quickly, so like many other companies using just-in-time, Kolder Inc. is relying more on the ______ mode of transportation despite its expense. a) railroad b) pipeline c) airway d) truck e) waterway

c) airway

96. If a wholesaler continually emphasizes and promotes one company's products over a competing company's products, _____ is likely to result. a) channel cooperation b) vertical channel integration c) channel conflict d) horizontal channel integration e) channel leadership.

c) channel conflict

117. The main objective of physical distribution should be to a) decrease costs while increasing market coverage. b) increase service and market coverage. c) decrease costs while increasing service. d) increase market coverage and channel power. e) balance costs and market coverage.

c) decrease costs while increasing service.

129. A commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation is a) web-based inventory management. b) just-in-time. c) electronic data interchange. d) universal product codes. e) activity based management.

c) electronic data interchange.

91. If Ralston Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be a) demonstrating sound channel leadership. b) insisting on exclusive exposure. c) exercising channel power. d) minimizing channel conflict. e) creating a coordinate system.

c) exercising channel power.

110. 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 a) vertical. b) retail. c) horizontal. d) backward. e) forward.

c) horizontal.

58. 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. a) direct distributor b) manufacturers' agent c) industrial distributor d) producers' agent e) wholesalers' agent

c) industrial distributor

76. Producers of convenience products such as soft drinks, toothpaste, and breath mints are most likely to use _____ distribution. a) selective b) extensive c) intensive d) exclusive e) demand-based

c) intensive

78. Sales are most likely to have a direct relationship to product availability for products that use _____ distribution. a) selective b) dual c) intensive d) extensive e) exclusive

c) intensive

131. 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 a) just-in-time. b) order processing. c) inventory management. d) merchandise stocking. e) logistical management.

c) inventory management.

144. Managers and consultants at Colgate-Palmolive are meeting to discuss better ways to package its products to reduce damage and make loading more efficient. The primary function they are trying to improve is a) warehousing. b) inventory management. c) materials handling. d) cycle time. e) containerization.

c) materials handling.

111. Order processing, inventory management, materials handling, warehousing, and transportation are the activities that define a) wholesaling. b) retailing. c) physical distribution. d) channel management. e) drop shipping.

c) physical distribution.

43. Without wholesalers and other intermediaries, a) most products would be much less expensive because fewer companies would be handling the product. b) products would be cheaper because the functions of intermediaries would be eliminated. c) products would likely be more expensive due to the use of less efficient channel members. d) products would never be able to make it to the ultimate consumer at any price without passing through intermediaries. e) many products would be more expensive because retailers would expect more profit.

c) products would likely be more expensive due to the use of less efficient channel members.

171. Tying agreements occur when a a) producer distributes the same product through two or more different channels. b) manufacturer forbids an intermediary to carry products of competing manufacturers. c) supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well. d) producer refuses to deal to channel members that seem unethical or illegitimate. e) manufacturer prohibits intermediaries from selling its products outside designated sales territories.

c) supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well.

112. The notion of physical distribution is a) speed of delivery. b) used only by manufacturers. c) the movement of products from producers to end users. d) primarily the wholesaler's responsibility. e) an assessment of distribution costs.

c) the movement of products from producers to end users.

When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most likely used _____________ distribution. Select one: a. exclusive b. horizontal c. intensive d. selective e. agent

c.

Which of the following levels of market coverage is desirable when a special effort, such as customer service from a channel member, is important to customers? a. intensive distribution b. exclusive distribution c. selective distribution d. digital distribution e. multichannel distribution

c. selective distribution

Which of the following integrates the functions of operations management, logistics management, supply management, and marketing channel management so that products are produced and distributed in the right quantities, to the right locations, and at the right times? a. multichannel distribution b. 3rd party logistics c. supply-chain management d. physical distribution e. channel integration

c. supply chain management

Firestone allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly increases the possibility of channel ____ with independent Firestone dealers. a. conflict b. power c. leadership d. communication e. understanding

conflict

overall channel goals and individual channel member goals cannot be achieved together without: -conflict -captains -leadership -cooperation -tying agreements

cooperation

151. Garcia Wholesale Plumbing has seen its sales in the Southeast triple in the past two years. Materials handling director Barb Peterson announces plans to the board for an Atlanta facility that will combine shipments received from Garcia's 25 suppliers for nearly immediate shipment to plumbing stores and contractors in the region. This new facility would be best classified as which of the following? a) Sales office b) Public warehouse c) Field public warehouse d) Distribution center e) Bonded warehouse

d) Distribution center

83. 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? a) Intensive b) Selective c) Targeted d) Exclusive e) Premier

d) Exclusive

139. Justin Abercrombie attends a seminar on just-in-time inventory management. Excited about the idea, he returns to his office at Atlanta Auto Supply to start designing such an inventory system. Which of the following steps must Justin take as he institutes this change? a) Increase safety stock b) Raise the reorder point c) Reduce customer service standard d) Increase order frequency e) Reduce estimates of inventory turnover rate

d) Increase order frequency

125. What are the three primary tasks of order processing? a) Order receipt, order delivery, order follow-up b) Order handling, inventory management, order delivery c) Materials handling, warehousing, order delivery d) Order handling, order entry, order delivery e) Order receipt, order checking, order delivery

d) Order handling, order entry, order delivery

53. Which of the following is the most commonly used channel for distributing business products? a) Producer, agents, industrial distributors, organizational buyers b) Producer, industrial distributors, organizational buyers c) Producer, agents, organizational buyers d) Producer, organizational buyers e) Industrial distributors, organizational buyers

d) Producer, organizational buyers

49. Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following channels? a) Producer, industrial distributors, retailers, consumers b) Producer, consumers c) Producer, wholesalers, retailers, consumers d) Producer, retailers, consumers e) Producer, agents, wholesalers, retailers, consumers

d) Producer, retailers, consumers

51. Nationally distributed consumer convenience products are most likely distributed through which of the following channels? a) Producer, consumers b) Producer, agents, wholesalers, retailers, consumers c) Producer, wholesalers, consumers d) Producer, wholesalers, retailers, consumers e) Producer, industrial distributor, wholesalers, retailers, consumers

d) Producer, wholesalers, retailers, consumers

152. What is the most expensive physical distribution function? a) Warehousing b) Order processing c) Inventory management d) Transportation e) Materials handling

d) Transportation

145. Which of the following physical distribution functions involves design and operation of facilities for storing goods? a) Order processing b) Materials handling c) Transportation d) Warehousing e) Inventory management

d) Warehousing

25. The supply chain includes a) producers, wholesalers, and retailers. b) suppliers, producers, intermediaries, and customers. c) suppliers and suppliers' suppliers. d) all entities that facilitate product distribution. e) buyers, seller, marketing intermediaries, and agents.

d) all entities that facilitate product distribution.

87. A single leader who controls and organizes a marketing channel is called a a) channel champion. b) distribution leader. c) marketing maverick. d) channel captain. e) lead distributor.

d) channel captain.

162. Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through a) transit time. b) warehousing. c) packaging. d) containerization. e) lot sizes.

d) containerization.

108. The Wicks 'N Sticks candle and gift marketing organization has a(n) ___________ vertical marketing system arrangement with its franchised retail store operations. a) corporate b) administered c) negotiated d) contractual e) horizontal

d) contractual

92. Overall channel goals and individual channel member goals cannot be achieved together without a) conflict. b) captains. c) leadership. d) cooperation. e) tying agreements.

d) cooperation.

31. The driving force behind marketing channel decisions should be a) convenience. b) cost reduction. c) environmental concerns. d) customer satisfaction. e) quality.

d) customer satisfaction.

45. Select Comfort, a producer of adjustable air mattresses, sells most of its products through direct mail sales and Internet sales. This channel would be classified as a) direct distribution. b) producer, retailer, consumer. c) telemarketing. d) direct-marketing. e) indirect marketing.

d) direct-marketing.

169. Ralph Lauren sells Polo products through department stores as well as in its own specialty shops. The designer uses ___________ as a channel strategy. a) channel extension b) intermediary exclusion c) broker utilization d) dual distribution e) channel diversification

d) dual distribution

68. Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called a) multiple channeling. b) strategic channel alliance. c) intensive distribution. d) dual distribution. e) market splitting.

d) dual distribution.

147. Morgan Steel Company leases a warehouse in Jacksonville, Alabama to serve Deep South markets that were large enough and stable enough to make a long-term commitment to fixed facilities. This is a a) flexible warehouse. b) dispatching center. c) distribution center. d) private warehouse. e) public warehouse.

d) private warehouse.

149. Air-Tech management learns that last month's production run of heaters at its Newark plant is defective and announces a recall of the specific models produced. To handle the large number of products it expects to receive for replacement of the defective thermostats, Air-Tech will probably need to add a ___________ to its distribution network. a) distribution center b) private warehouse c) dispatching shipment system d) public warehouse e) materials handling system

d) public warehouse

137. 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 a) short order lead times. b) just-in-time inventory. c) a controlled usage rate. d) safety stock. e) excessive inventory.

d) safety stock.

42. When three buyers purchase the products of three producers, nine transactions are required. If one intermediary serves both producers and buyers, the number of possible transactions is a) fifteen. b) five. c) eighteen. d) six. e) twenty.

d) six.

106. In an administered VMS, informal coordination brings about a high level of interorganizational management. Nonetheless, a) decision making does not take into account the goals of the system. b) the channel members do not remain autonomous. c) the decision making is not coordinated. d) the channel members remain autonomous. e) the goals of the individual firms are not congruent with the goals of the system.

d) the channel members remain autonomous.

156. Magnetic Springs wants to ship its bottled water with the most flexible schedules and routes of all transportation modes. Magnetic Springs should use ___________ as its transportation mode. a) railroads b) waterways c) pipelines d) trucks e) airways

d) trucks

142. Federal Mogul places several boxes of products or materials on pallets in order to load them efficiently using forklifts. This system of materials handling is called a) warehousing. b) containerization. c) group storage. d) unit loading. e) mechanized handling.

d) unit loading.

A single leader who controls and organizes a marketing channel is called a Select one: a. channel champion. b. lead distributor. c. distribution leader. d. channel captain. e. marketing maverick.

d.

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) Select one: a. producers' broker b. channel facilitator. c. sole intermidiary. d. manufacturers' agent. e. industrial distributor.

d.

Consumers receive the benefits of place utility when Select one: a. they have to travel excessively to obtain products they want. b. retailers remain open 24 hours a day. c. they make purchases with credit and debit cards. d. products are available in locations where consumers want to buy them. e. they can stock up on products they need but not use them right away.

d.

If Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be Select one: a. minimizing channel conflict. b. insisting on exclusive exposure. c. creating a coordinate system. d. exercising channel power. e. demonstrating sound channel leadership.

d.

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 Select one: a. horizontal channel integration. b. channel leadership. c. dual distribution. d. a strategic channel alliance. e. exclusive distribution.

d.

Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) _____________ channel. Select one: a. equipment b. producer-to-industrial distributor-to-business buyer c. consumer d. Producer-to-business buyer e. producer-to-agent-to-business buyer

d.

The result of an inventory stockout usually results in ______________ . Select one: a. a decrease in prices. b. an increase in loyal customers. c. an increase in inventory costs. d. an increase in lost sales. e. an increase in net profit.

d.

The supply chain includes Select one: a. suppliers, producers, intermediaries, and customers. b. suppliers and suppliers' suppliers. c. buyers, seller, marketing intermediaries, and agents. d. all entities that facilitate product distribution. e. producers, wholesalers, and retailers.

d.

In any one large metropolitan area, there is usually just one Ferrari luxury sports car dealer. This best illustrates ______________. a. multichannel distribution b. digital distribution c. selective distribution d. exclusive distribution e. intensive distribution

d. exclusive distribution

If PetSmart began to acquire very successful local pet stores, this would be an example of ______________. a. channel power b. digital integration c. vertical integration d. horizontal integration e. multichannel integration

d. horizontal integration

When you buy a new backpack from LLBean.com, which of the following consumer marketing channels are you using? a. producer to wholesaler to retailer to consumer b. producer to industrial distribution to consumer c. producer to retailer to consumer d. producer to consumer e. producer to agent to wholesaler to retailer to consumer

d. producer to consumer

Supply-chain management should begin with a focus on ____________. a. the government regulator b. the seller c. the producer d. the customer e. the marketing channel

d. the customer

Which of the following have special expertise in core physical distribution activities such as warehousing, transportation, inventory management, and information technology and can often perform these activities more efficiently? a. corporate VMS b. freight forwarders c. megacarriers d. third-party logistics firms e. channel captains

d. third-party logistics firms

Coca-Cola offers a line of soft drinks that includes Coca-Cola, Diet Coke, Coca-Cola Zero, Sprite, and Fanta. These drinks best illustrate Coca-Cola's product mix a. life cycle. b. width. c. length. d. depth. e. volume.

depth

82. 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? a) Gasoline b) Jaguar automobiles c) Cigarettes d) Laundry detergent e) Panasonic stereos

e) Panasonic stereos

109. Select the greatest advantage of horizontal channel integration. a) The flexibility of the channel is decreased. b) The markets are more heterogeneous. c) The expanded number of units is coordinated. d) Efficiencies in advertising, marketing research, and purchasing are increased. e) Planning and research are increased to cope with increased competition.

e) Planning and research are increased to cope with increased competition.

140. What is the primary determinant in deciding how materials will be handled? a) Unit loading b) Containerization c) Customer preference d) Cost reduction e) Product characteristics

e) Product characteristics

163. What two modes of transportation are used when containers are shipped by piggyback? a) Railroads and airways b) Trucks and airways c) Pipelines and trucks d) Waterways and railroads e) Railroads and trucks

e) Railroads and trucks

61. Which of the following is an advantage of using an industrial distributor? a) These firms are easy to control because they work directly for the producers. b) Inventory holding costs are minimized because they can store inventory very cheaply. c) They are closer geographically to all of the producers' customers. d) They possess a high level of technical knowledge about their products. e) They help reduce a producer's financial burdens by extending credit to customers.

e) They help reduce a producer's financial burdens by extending credit to customers.

153. ___________ adds time and place utility to a product by moving it from where it is made to where it is purchased and used. a) Warehousing b) Containerization c) Distribution d) Materials handling e) Transportation

e) Transportation

104. When channel members are linked by legal agreements that specify each member's rights and responsibilities, _______ exists. a) horizontal channel integration b) an administered VMS c) a corporate VMS d) a channel captain e) a contractual VMS

e) a contractual VMS

95. 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. a) understanding b) power c) leadership d) communication e) conflict

e) conflict

24. The Home Depot is trying to reduce transportation, information management, and administrative costs. To accomplish this goal, channel members need to a) work independently. b) avoid cooperation due to antitrust considerations. c) work with competitors and share information. d) increase competition among channel members. e) cooperate and accommodate one another's needs.

e) cooperate and accommodate one another's needs.

103. The Limited, which produces and retails clothing products in a coordinated channel, is an example of a(n) a) administered vertical marketing system. b) conventional marketing channel. c) channel network. d) contractual marketing channel. e) corporate vertical marketing system.

e) corporate vertical marketing system.

128. Order handling involves all of the following activities except that the a) credit department approves the purchase. b) order is transmitted to the warehouse. c) availability of product is verified. d) warehouse is instructed to fill the order. e) customer places a purchase order.

e) customer places a purchase order.

27. All members of the supply chain should determine their position in the chain, identify their partners and their roles, and establish partnerships whose focus is a) shifting costs to suppliers. b) maximizing costs. c) maximizing technology implementation. d) cooperation with competitors. e) customer relationships.

e) customer relationships.

123. A goal of physical distribution is to reduce ______ or how long it takes to complete a process. a) time standards b) processing time c) production d) throughput measure e) cycle time

e) cycle time

121. An important goal of physical distribution is reducing the time it takes to complete a) inventory management. b) outsourcing evaluation. c) electronic data interchange. d) order processing. e) cycle time.

e) cycle time.

46. Many producers selling on the Internet are using a) several intermediaries. b) complex marketing channels. c) Internet wholesalers, retailers, and agents. d) supply chain channels. e) direct-marketing channels.

e) direct-marketing channels.

167. Dual distribution is characterized as a) illegal under the Robinson-Patman Act. b) distribution channels that typically carry exclusive products, such as Rolex watches. c) marketing environments that are highly competitive. d) manufacturers that forbid an intermediary to carry products of competing producers. e) distribution of one manufacturer's product through two or more different channel structures.

e) distribution of one manufacturer's product through two or more different channel structures.

172. An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is called a) exclusive distribution. b) a tying agreement. c) refusal to deal. d) contractual VMS. e) exclusive dealing.

e) exclusive dealing.

173. Dell Computers is a nationally recognized manufacturer of computers for the small business and home markets. If Dell were to order one of its wholesalers not to carry any computer products other than those made by Dell, this arrangement would be called a) a tying contract. b) refusal to deal. c) a restricted sales territory. d) a restricted channel. e) exclusive dealing.

e) exclusive dealing.

84. Expensive, high-quality products that are purchased infrequently often reach consumers through a) selective distribution. b) highly-selective distribution. c) sole-source retailers. d) complex marketing channels. e) exclusive distribution.

e) exclusive distribution.

74. The three major levels of intensity at which a company can choose to distribute its products are _____ distribution. a) narrow, medium, and wide b) cooperative, conflicting, and integrated c) intensive, extensive, and exclusive d) selective, cooperative, and conflicting e) exclusive, selective, and intensive

e) exclusive, selective, and intensive

55. Organizational buyers are especially partial to direct marketing channels when a) they buy cheap materials in large quantities. b) they try a new product for the first time. c) they are filling an order for a very important customer. d) a modified rebuy type of decision is involved. e) expensive and/or complex equipment is involved.

e) expensive and/or complex equipment is involved.

97. Vertical channel integration a) results in two or more different management teams for each member of the channel. b) is made possible when a large corporation divests itself of smaller subsidiaries. c) is a shift back to the conventional channel of distribution. d) combines institutions at the same level of operation. e) is made possible by purchasing the operations of a link in the channel.

e) is made possible by purchasing the operations of a link in the channel.

73. When considering the best channel to use, all of the following are true with regard to larger firms except they a) can use an extensive product mix as a competitive tool. b) may be better able to negotiate better deals with vendors or other channel members. c) may have more distribution centers. d) may have the resources to develop their own sales force. e) may be better suited to serve customers in a particular region.

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

130. Nathan is trying to decide which shipping company to use to transport his custom-made furniture to customers. Nathan is facing a decision about a) order entry. b) order completion. c) just-in-time. d) order handling. e) order delivery.

e) order delivery.

116. As her Internet quilt and bed linen business grew, Danielle could no longer perform all the distribution activities, so she hired a shipper and an information technology firm to assist with these functions. Danielle is using _____ for physical distribution for her business. a) producers b) wholesalers c) retailers d) selling agents e) outsourcing

e) outsourcing

113. The contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channel is known as a) illegal. b) logistics. c) warehousing. d) wholesaling. e) outsourcing.

e) outsourcing.

160. 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 a) waterways. b) airways. c) tanker trucks. d) railroads. e) pipelines.

e) pipelines.

148. When companies operate their own facilities for storing and shipping products, these facilities are known as a) distribution centers. b) product storehouses. c) public warehouses. d) megawarehouses. e) private warehouses.

e) private warehouses.

39. Consumers receive the benefits of place utility when a) they have to travel excessively to obtain products they want. b) retailers remain open 24 hours a day. c) they can stock up on products they need but not use them right away. d) they make purchases with credit and debit cards. e) products are available in locations where consumers want to buy them.

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

166. Using a freight forwarder usually a) is not economical for a small firm. b) increases transit time and shipping costs. c) increases transit time and sometimes lowers shipping costs. d) lowers shipping costs for a large firm. e) reduces transit time.

e) reduces transit time.

79. In marketing a new line of nursery furniture for infants and small children, the Fisher Company will most likely use ___________ distribution for the products. a) intensive b) exclusive c) horizontal d) priority e) selective

e) selective

81. Durable goods such as television sets and DVD players generally reach their target markets through a) intensive distribution. b) channel cooperation. c) direct marketing. d) exclusive distribution. e) selective distribution.

e) selective distribution.

34. Channel decisions are important to marketers mostly because a) they are relatively flexible to change quickly. b) consumers value reasonable prices delivered through marketing channels. c) they dictate what promotional strategies companies should use. d) many businesses are marketing intermediaries. e) they involve long-term commitments and affect customer accessibility.

e) they involve long-term commitments and affect customer accessibility.

115. Physical distribution activities may be performed by a producer, wholesaler, retailer or a) not performed at all. b) the customer. c) investors in any of the previous three. d) solely through technology. e) they may be outsourced.

e) they may be outsourced.

40. In a simple economy of five producers and five consumers, there would be ___________ transactions possible without an intermediary and _________ transactions possible with one intermediary. a) ten; twenty-five b) thirty; ten c) twenty-five; fifteen d) sixteen; eight e) twenty-five; ten

e) twenty-five; ten

119. According to the text, physical distribution cost tradeoffs enable firms to a) resolve pricing conflicts among channel partners. b) minimize risk during test marketing of new products. c) reduce costs of all distribution functions simultaneously. d) resolve pricing conflicts within industry sectors. e) utilize resources for greatest cost-effectiveness.

e) utilize resources for greatest cost-effectiveness.

99. 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 a) channel leadership. b) channel cooperation. c) channel conflict. d) horizontal channel integration. e) vertical channel integration.

e) vertical channel integration.

Apple makes its computers available through its own stores, its website, and some major retailers. This is an example of Select one: a. vertical integration. b. horizontal integration. c. exclusive dealing. d. tying agreements. e. dual distribution.

e.

Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channel are these manufacturers most likely to use? Select one: a. Producer, consumer b. Producer, wholesaler, agent, retailer, consumer c. Producer, retailer, consumer d. Retailer, consumer e. Producer wholesaler, retailer, consumer

e.

Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through Select one: a. warehousing. b. packaging. c. lot sizes. d. transit time. e. containerization.

e.

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 called ___________. This is due to the fact that UPS does not have managerial authority within the Zappos marketing channel. Select one: a. warehousing. b. wholesaling. c. logistics. d. illegal. e. outsourcing.

e.

When three buyers purchase the products of three producers, nine transactions are required. If one intermediary serves both producers and buyers, the number of possible transactions is Select one: a. eighteen. b. twenty. c. five. d. fifteen. e. six.

e.

The most popular type of vertical marketing system is the _____________. a. corporate VMS b. administered VMS c. horizontal VMS d. vertical VMS e. contractual VMS

e. contractual VMS

When a producer, wholesaler, or retailer has the ability to influence another channel member's goal achievement, it ____________. a. is vertically integrated b. is multichannel distribution c. is horizontally integrated d. is a channel captain e. has channel power

e. has channel power

Dell Computer and Harley Davidson are well known for their use of the JIT approach. To which of the following physical distribution activities does the JIT approach belong? a. transportation b. order processing c. warehousing d. materials handling e. inventory management

e. inventory management

Suppliers may use ________ to get rid of slow-moving inventory, while a franchiser may use them to maintain quality control and protect the franchiser's reputation a. refusal to deal b. exclusive dealing c. warehousing d. restricted sales territories e. tying agreements

e. tying agreements

a commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation is: -web-based inventory management -just-in-time -electronic data interchange -universal product codes -activity based management

electronic data interchange

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: -intensive -selective -targeted -exclusive -premier

exclusive

Advertising makes possible immediate feedback from consumers. a. True b. False

false

Brand equity is a customer's favorable attitude toward a specific brand and, depending on strength, some likelihood of consistent purchase of the brand when needs for a product in this product category arise. a. True

false

Business customers prefer to deal with producers through intermediaries and thus eliminate much of the burden of sorting out details. a. True b. False

false

Factory outlet stores exist to compete with traditional retailers. a. True b. False

false

General-merchandise wholesalers are full-service merchant wholesalers who carry only a few product lines. a. True b. False

false

Industrial distributors and their agents are typical types of intermediaries found in channels for consumer products. a. True b. False

false

Labels should be a separate feature that can be detached from the package. ​ a. True b. False

false

Marketers frequently rely on personal selling to improve the effectiveness of other promotion mix elements, especially advertising and sales promotion. a. True b. False

false

Retailers form an important link in the marketing channel because they are both producers and customers. a. True b. False

false

The primary product offered by the department stores is convenience. a. True b. False

false

The receiver's response to the decoded message is called noise. a. True b. False

false

When a push policy is used in promoting a particular product, the producer promotes the product directly to consumers. a. True b. False

false

When encoding a message, the source should use signs or symbols that are new to the audience. a. True b. False

false

Wholesaling is the final part of the marketing process in which exchanges are entered into for personal, family, or household purposes. a. True b. False

false

Ford sells the Ford Mustang, Ford F-150, and the Ford Explorer. This is an example of a. individual branding. b. shared naming. c. family branding. d. single branding. e. brand suspension.

family branding

Luis operates a store called Fleet Feet Sports, which sells running apparel, shoes, and accessories. Luis enjoys operating Fleet Feet Sports, especially because he has ready access to management expertise and promotional support. He was able to open Fleet Feet Sports with limited capital. However, there are disadvantages Luis faces as well. For him, one of the biggest disadvantages is that he does not have complete control over his operation. Fleet Feet Sports is most likely a a. direct seller. b. wholesaler. c. producer. d. direct marketer. e. franchise.

franchise

Your friend Elias comes to you for advice because of your amazing business prowess. He would like to start his own business, but he is concerned about the high failure rate. If possible, he would like to mitigate his risk somewhat. He also has limited capital and not much business experience. You recommend that Elias consider opening a ____, but you warn him that one disadvantage to doing so is that he would have ____. a. franchise; less control b. wholesaler; more debt c. retailer; less control d. direct sales organization; limited promotional opportunities e. wholesaler; less time

franchise; less control

To expand the number of its retail outlets in the Washington, D.C. area, Whole Foods bought out a small chain of organic food stores in northern Virginia. This type of integration is called a. retail. b. vertical. c. upstream. d. forward. e. horizontal.

horizontal

to expand the number of its retail outlets in the washington dc area, whole foods bought out a small chain of organic food stores in northern virginia. this type of integration is called: -vertical -retail -horizontal -backward -forward

horizontal

Which of the following is an advantage of franchising? a. Franchise agreement gives control to franchisor b. Franchise agreements are not uniform c. Limited capital is needed to start d. Franchisor dictates many aspects of business e. Franchisee pays for assistance from franchisor

limited capital is needed to start

A limited-line wholesaler would be expected to carry a ____ product mix. a. wide and shallow b. narrow and shallow c. wide and deep d. wide e. narrow and deep

narrow and deep

consumers receive the benefits of place utility when: -they have to travel excessively to obtain products they want -retailers remain open 24 hours a day -they can stock up on products they need but not use them right away -they make purchases with credit and debit cards -products are available in locations where consumers want to buy them

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 -wholesaler -broker -functional middleman -producer

retailer

Abbot Laboratories offers ceramic coffee mugs to its physician customers when it promotes a new drug. This example illustrates Abbot's use of which one of the following elements of the promotion mix? a. Personal selling b. Packaging c. Public relations d. Social marketing e. Sales promotion

sales promotion

When McDonald's uses the Monopoly game in which customers receive game pieces with each visit and try to assemble a set of properties to win prizes, McDonald's is utilizing a. personal selling. b. advertising. c. sales promotion. d. guerrilla marketing. e. public relations.

sales promotion

When Merrell introduced its Chameleon hiking shoes, they were available through REI, Dick's, Bass Pro Shops, and a few other retailers. The Merrell Chameleon hiking shoe was most likely distributed through the _____ of distribution. a. intensive level b. agent form c. extensive level d. selective level e. exclusive level

selective level

A channel member that markets all of a manufacturer's goods, has authority over price, promotion, and distribution, but does not take title to the product is a a. manufacturers' agent. b. broker. c. selling agent. d. general-line wholesaler. e. commission merchant.

selling agent

fragile products that require special handling are more likely to be distributed through: -longer channels -shorter channels -direct channels -strategic alliances -exclusive outlets

shorter channels

walmart 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 -a vertical marketing system -a horizontal marketing system -channel conflict -dual distribution

supply chain management

A communications channel is the vehicle used to transmit the coded message from the source to the receiver. a. True b. False

true

A franchise is an arrangement in which a supplier grants dealers the right to sell products in exchange for some type of consideration. a. True b. False

true

Advertising is a paid form of nonpersonal communication. a. True b. False

true

Appliances are an example of a major product line commonly carried by discount stores. a. True b. False

true

Coupons are a form of sales promotion. a. True b. False

true

Direct marketing is the selling of products outside the confines of a retail facility. a. True b. False

true

Marketing intermediaries bridge the gap between suppliers (or producers) and buyers (or consumers). a. True b. False

true

Personal selling tends to cost more than advertising. a. True b. False

true

Public relations is a broad set of communication efforts used to create and maintain favorable relationships between the organizations and its stakeholders. a. True b. False

true

Sometimes a marketing channel is quite simple and short, perhaps running directly from a producer to the final user or consumer. a. True b. False

true

The cost of a business product may affect the distribution channel selected for it. a. True b. False

true

Spam

unsolicited email

Disney sells apparel, cookie jars, puzzles, photo albums, and other items featuring its popular characters directly through its own retail outlets. This is an example of a. channel cooperation. b. vertical channel integration. c. horizontal channel integration. d. channel leadership. e. channel conflict.

vertical channel integration

benetton, a leading manufacturer of knitwear in italy, expanded its operations to include retail outlets in the united states and south america. this type of channel is called: -horizontal integration -vertical integration -multilevel integration -retail integration -merchandising integration

vertical integration

Old Spice created a series of online videos on YouTube through its "The Man Your Man Could Smell Like" campaign in which the main character responded to viewer questions. These entertaining videos were shared by thousands of people, spreading the message created by Old Spice. This is an example of a. advertising. b. sales promotion. c. viral marketing. d. public relations e. personal selling.

viral marketing

Which of the following are personal informal exchanges of communication that customers share with one another about products, brands, and companies? a. Word-of-mouth communication b. Guerrilla communication c. Viral marketing d. Online chat room communication e. Buzz marketing

word- of- mouth communication