MKT Exam 4
Select the greatest advantage of horizontal channel integration.
Efficiencies in advertising, marketing research, and purchasing are increased.
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?
Inventory management
Question Which of the following offers the widest product mixes and the deepest product lines?
Superregional shopping center
Which of the following describes a disadvantage of using industrial distributors?
They are unlikely to handle bulky items or items that are slow sellers.
What is the most expensive physical distribution function?
Transportation
When a single channel member manages an integrated marketing channel to achieve low- cost, efficient distribution for satisfying target markets, ______ exists.
a vertical marketing system
ATMs are an example of
automatic vending.
A retail strategy of managing groups of similar, often substitutable products produced by different manufacturers is called
category management.
Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through
containerization.
A small self-service store that is open long hours and carries a narrow product assortment in convenient locations is best described as
convenience store.
Overall channel goals and individual channel member goals cannot be achieved together without
cooperation.
The Limited, which produces and retails clothing products in a coordinated channel, is an example of a(n)
corporate vertical marketing system.
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 shifting costs to suppliers. maximizing costs. maximizing technology implementation. cooperation with competitors. customer relationships.
customer relationships.
The driving force behind marketing channel decisions should be convenience. cost reduction. environmental concerns. customer satisfaction. quality.
customer satisfaction.
Compared with other types of retailers, department stores compete mainly on the basis of
customer services.
A goal of physical distribution is to reduce ______ or how long it takes to complete a process.
cycle time
As discount stores improve their services and atmosphere as well as raise their prices, the distinction between discount stores and ____ is becoming blurred.
department stores
When off-price retailers obtain too much in-season, high-quality merchandise, tension between them and ________ builds.
department stores
Nordstrom's, Macy's, and JC Penney's are all considered
department stores.
The three major types of nonstore retailing are
direct marketing, direct selling, and automatic vending.
The use of the telephone and other nonpersonal media to introduce products to consumers, who then can purchase the products through the mail, telephone, or the Internet is called
direct marketing.
All of the following are types of direct marketing except
direct selling.
The marketing of products to ultimate consumers through face-to-face sales presentations either at home or the workplace is called
direct selling.
A commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation is
electronic data interchange.
Organizational buyers are especially partial to direct marketing channels when
expensive and/or complex equipment is involved.
By locating in the same general vicinity as other car dealerships, Hartfield Honda can
facilitate comparison shopping.
Supermarkets, discount stores, and hypermarkets can all be classified as
general merchandise retailers.
Because Coke is such a popular product and the company is so powerful, Coca-Cola is in a position to exert considerable control over channel structures and the way Coke is marketed. This is an illustration of channel ___________ in the distribution channel.
leadership
An independent businessperson who is paid a commission to sell complementary products of different producers in an assigned territory without actually taking title of the merchandise is a(n)
manufacturers' agent.
The order-processing task that involves verifying product availability, checking prices and customer credit ratings, and filling orders is
order handling.
The contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channel is known as
outsourcing.
Order processing, inventory management, materials handling, warehousing, and transportation are the activities that define
physical distribution.
After direct-marketing, the next slightly longer marketing channel adds a(n)
retailer.
Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n)
retailer.
When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a
retailer.
Wal-Mart, Macy's, Nordstrom's, and Toys "R" Us are examples of
retailers.
Direct selling, direct marketing, and vending machines are all examples of Answer producing.
retailing.
All of the following are concepts used in a just-in-time inventory management system except
safety stock is kept to reduce stockouts.
Long-term partnerships among channel members working together to reduce inefficiencies, costs, and redundancies in the entire marketing channel is called supply chain management. vertical channel integration. industrial management. industrial distribution. marketing management.
supply chain management.
Wal-Mart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of supply chain management. a vertical marketing system. a horizontal marketing system. channel conflict. dual distribution.
supply chain management.
The performance of marketing-related activities conducted on the telephone is called
telemarketing.
Wholesaling can be defined as
transactions in which products are bought for resale.
Retailing is best characterized as
transactions in which the buyer intends to consume the product through personal, family, or household use.
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.
unit loading
According to the text, physical distribution cost tradeoffs enable firms to
utilize resources for greatest cost-effectiveness.
Warner Bros. sells cookie jars, puzzles, photo albums, and other items featuring its popular cartoon characters directly through its own retail outlets. This is an example of
vertical channel integration.
When Benetton, the Italian sportswear designer and manufacturer, decided to open its own specialty shops to sell its merchandise, the firm was engaging in
vertical channel integration.
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
vertical.
Retailers that sell only to members and feature discount retailing combined with cash-and- carry wholesaling are called
warehouse clubs
Sam's and Costco are examples of
warehouse clubs.
Levitz Furniture locates in huge, low-cost buildings, maintains large, on-premises inventories, and offers minimum service. Levitz is a
warehouse showroom.
Retail facilities located in big, low-cost buildings with large on-premise inventories and minimal services are called
warehouse showrooms.
The Home Depot is trying to reduce transportation, information management, and administrative costs. To accomplish this goal, channel members need to work independently. avoid cooperation due to antitrust considerations. work with competitors and share information. increase competition among channel members. cooperate and accommodate one another's needs.
work independently.
In order to justify direct-response marketing, a product really needs to be priced above
$20.
The target market of a regional shopping center typically includes at least _____ people.
150,000
What is the reorder point if the usage rate is 10 units per day, the order lead time is five days, and the safety stock is 30?
80
With respect to retailing, what is the "party plan"?
A consumer acts as a host and invites friends to view merchandise in a group setting, where a salesperson demonstrates the products.
What is a primary difference between an industrial distributor and a manufacturers' agent?
A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does.
In which of the following situations is dual distribution likely to be determined illegal?
A producer uses company outlets to dominate independent retailers that carry its products.
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?
Airways
Which of the following is a common feature of a warehouse club?
Annual fees
While on their family vacation, the Millers realize they left their camera at home. They purchase a disposable camera at an amusement park using their credit card, but never interact with a person. What type of retailing did this transaction most likely involve?
Automatic vending
The marketing channel of producer to retailer to consumer is most likely to be used by producers of which of the following products?
Automobiles
What type of retailing began with Montgomery Ward in the late 1800s?
Catalog marketing
Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes?
Convenience stores
Where do supply chains start? Raw materials Suppliers Customers Producers Retailers
Customers
What type of retailers are the primary competitors for specialty retailers?
Department stores
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?
Direct distribution
What is the most expensive form of retailing?
Direct selling
Advo Systems is an organization that mails product brochures and coupons to potential consumers who can then purchase these products by mail or by phone. Advo Systems illustrates which of the following methods of selling retail products?
Direct-response marketing
Honey Farms is a maker of fine chocolates. The company's latest product, Fudge-Dipped Strawberries, is the premier product in its Fudge-Dipped line. The product is very expensive and targeted to upscale consumers. Which form of distribution would Honey Farms be likely to use for its new product?
Exclusive
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?
Exclusive dealing
Which of the following organizations consolidates shipments from several firms into more efficient lot sizes?
Freight forwarder
What is the primary distinction between superstores and hypermarkets?
Hypermarkets are larger and have more types of products than superstores.
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?
Increase order frequency
___________ 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.
Intermodal transportation
What is the most popular type of product sold through television home shopping?
Jewelry
Jannette Down is planning to open an upscale dress boutique. She is evaluating ease of movement to and from sites, vehicular traffic, types of stores in the area, and transportation networks. Which strategic retailing issue is she concerned with at the time?
Location
Which of the following is the least flexible of these important retailing strategy issues?
Location
What links producers to consumers through the purchase and reselling of products or contractual agreements? Marketing intermediaries Distributors Suppliers Middle marketers Marketing channels
Marketing intermediaries
An example of an emerging type of power shopping center might contain
Michael's, Office Depot, T.J. Maxx, and Circuit City.
What type of shopping center usually consists of several small convenience and specialty stores?
Neighborhood
What are the three primary tasks of order processing?
Order handling, order entry, order delivery
________ have been successful because consumers are willing to drive significant distances to save money buying manufacturers' closeouts and irregulars.
Outlet shopping centers
Which of the following is the most commonly used channel for distributing business products?
Producer, organizational buyers
Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following channels?
Producer, retailers, consumers
What is the primary determinant in deciding how materials will be handled?
Product characteristics
Who provides the environment in which exchanges with ultimate consumers occur?
Retailers
For which of the following products would exclusive distribution be most appropriate?
Rolls Royce automobile
What is a potential disadvantage of direct selling?
Some customers view direct selling negatively.
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?
Stockout
Which type of retail outlet can have up to 200,000 square feet?
Superstores
___________ adds time and place utility to a product by moving it from where it is made to where it is purchased and used.
Transportation
Which major mode of freight transportation provides the most flexible schedules and routes?
Trucks
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?
Tying agreement
Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing?
Warehouse club
What function of physical distribution enables companies to compensate for dissimilar production and consumption rates and stabilize prices and availability of seasonal items?
Warehousing
Which of the following physical distribution functions involves design and operation of facilities for storing goods?
Warehousing
When channel members are linked by legal agreements that specify each member's rights and responsibilities, _______ exists.
a contractual VMS
Greg chooses to have his hunting equipment stored in a location away from the main part of town so that he can have a large parking lot and an outdoor range for customers to test out his merchandise. Greg's store is
a free-standing structure.
An agreement in which the products of one organization are distributed through the marketing channel of another organization is called
a strategic channel alliance.
Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks' coffee drink, Frappucino, to grocery stores and other retail outlets. This is an example of
a strategic channel alliance.
Automatic vending is
a type of nonstore retailing.
A general merchandise retailer offers
a variety of product lines that are stocked in depth.
Rob Stevens is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ___________ to maintain contact with the firms using its products.
agents
A producer is not likely to receive _____ from an industrial distributor.
aggressive promotion of its brand
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.
airway
The supply chain includes producers, wholesalers, and retailers. suppliers, producers, intermediaries, and customers. suppliers and suppliers' suppliers. all entities that facilitate product distribution. buyers, seller, marketing intermediaries, and agents.
all entities that facilitate product distribution.
Brianna owns and operates a gift and interior store called The Gingerbread House. She works hard to put together beautiful arrangements and displays throughout the store and always features a burning scented candle and light music. She hopes these efforts will encourage her customers to buy more. Brianna is focusing on
atmospherics.
Exterior and interior characteristics such as layout, displays, color, and lighting are all elements of a store's
atmospherics.
A public warehouse is a
business that leases storage space and related facilities for distribution to other firms.
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
captain.
Chadwick's sends its customers booklets containing its product offerings and allows them to place orders on the telephone, through the mail, or online. Chadwick's is primarily a(n)
catalog marketer.
A(n) ___________ is a very large specialty store that competes on the basis of lower prices and enormous product availability.
category killer traditional specialty
Michael's, PetsMart, and Staples are all examples of
category killers.
A single leader who controls and organizes a marketing channel is called a
channel captain.
If a wholesaler continually emphasizes and promotes one company's products over a competing company's products, _____ is likely to result.
channel conflict
Marketing channel members are likely to experience misunderstandings, frustration, and poorly coordinated strategies as a result of
channel conflict caused by inefficient communication between channel members.
When one company in a marketing channel has the ability to influence another member's goal achievement, the company has
channel power.
Hickory Village Shopping Center has two department stores and some specialty and convenience stores. It serves a large geographic area and holds special events to stimulate consumer traffic. Hickory is a _________ shopping center.
community
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.
contractual
The Wicks 'N Sticks candle and gift marketing organization has a(n) ___________ vertical marketing system arrangement with its franchised retail store operations.
contractual
An important goal of physical distribution is reducing the time it takes to complete
cycle time.
The United States Postal Service works hard to get priority mail from the sender to the recipient as quickly as possible in order to compete with companies such as UPS and FedEx. The postal service works to reduce
cycle time.
The main objective of physical distribution should be to
decrease costs while increasing service.
Off-price retailers feature
deep discounts, few customer services, and central checkouts.
If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is a(n)
department store.
A channel of distribution is defined as a group of individuals and organizations that consumes about one-half of every dollar spent on products in the United States. directs the flow of products from producers to customers. links producers to other marketing intermediaries. takes title to products and resells them. manages transportation and warehousing functions.
directs the flow of products from producers to customers.
Ollies' is a regional self-service retail store that sells name-brand electronics, tools, housewares, and sporting goods at low prices. Ollies' is an example of a
discount store.
Wal-Mart and Target are both examples of
discount stores.
Dual distribution is characterized as
distribution of one manufacturer's product through two or more different channel structures.
Ralph Lauren sells Polo products through department stores as well as in its own specialty shops. The designer uses ___________ as a channel strategy.
dual distribution
Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using
dual distribution.
Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called
dual distribution.
When only one outlet in a relatively large geographic area is used to distribute a product that is consumed over a long period of time, a(n) ___________ channel arrangement is developed.
exclusive
An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is called
exclusive dealing.
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
exclusive dealing.
Expensive, high-quality products that are purchased infrequently often reach consumers through
exclusive distribution.
The three major levels of intensity at which a company can choose to distribute its products are _____ distribution.
exclusive, selective, and intensive
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.
higher warehousing costs
To expand the number of its retail outlets in the Washington, D.C., area, the Dress Barn bought out a small chain of women's apparel stores in northern Virginia. This type of integration is called
horizontal.
A ___________ is a retail establishment that combines a supermarket and a discount store in one location.
hypermarket
After shopping in the same store for nearly two hours, Chelsea goes to Burger King for a Whopper, while Cynthia goes to the optical shop to see if her contacts are ready. They engage in these activities without leaving the store in which they have been shopping. They are most likely in a
hypermarket.
Jeff Wood's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces capital requirements for the producers. Jeff's company is an example of a(n) ___________ in a distribution channel.
industrial distributor
An independent business that takes title to products and carries inventories is a(n)
industrial distributor.
Sales are most likely to have a direct relationship to product availability for products that use _____ distribution.
intensive
When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most likely used ___________ distribution.
intensive
Candy bars and chewing gum are most likely to be distributed through _____ and _____.
intensive; dual distribution
Because of the significant investment many companies have in the products they sell to customers, they must develop and maintain adequate varieties of products to meet their customers' needs. This is called.
inventory management.
Vertical channel integration
is made possible by purchasing the operations of a link in the channel.
An open-air shopping center that features upscale specialty, dining, and entertainment stores, usually owned by national chains, is generally called a(n)
lifestyle shopping center.
Most marketing channels have marketing intermediaries. A marketing intermediary's role is to link wholesalers to other wholesalers. link producers to other middlemen or to consumers. always sell products to wholesalers. not take title to products. always sell products to retailers.
link producers to other middlemen or to consumers.
Location is important to a retailer because
location determines the trading area from which the store must draw its customers.
The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about
location.
The result of an inventory stockout is usually an increase in
lost sales.
When considering the best channel to use, all of the following are true with regard to larger firms except they
may be better suited to serve customers in a particular region.
Freight transportation companies that offer several different shipment methods are called
megacarriers.
Specialty stores offer ______ than department stores.
more sales expertise and better selections
Direct marketing, direct selling, and automatic vending are all examples of _________ retailing.
nonstore
Question The selling of merchandise outside the confines of actual facilities is generally called
nonstore retailing.
Eliminating a wholesaler from a marketing channel will
not eliminate the functions performed by that wholesaler.
A manufacturers' outlet mall is most appropriately classified as a(n)
off-price retailer.
A shopping center that contains stores owned by manufacturers who make a special effort not to conflict with traditional retailers is a(n)
outlet shopping center.
Shopping centers include
outlet, power, lifestyle, superregional, regional, neighborhood, and community.
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.
outsourcing
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
outsourcing.
Marketing channels create three types of utility for consumers including
place, time, and possession.
When companies operate their own facilities for storing and shipping products, these facilities are known
private warehouses.
Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n)_________ channel.
producer-to-business buyer
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
producers.
Consumers receive the benefits of place utility when
products are available in locations where consumers want to buy them.
Without wholesalers and other intermediaries,
products would likely be more expensive due to the use of less efficient channel members.
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.
public warehouse
Using a freight forwarder usually
reduces transit time.
A shopping center containing a Macy's, Marshall Fields, and JC Penney's as well as dozens of specialty shops, restaurants, and entertainment is most likely a
regional shopping center.
Dawn is concerned that there are not enough avid quilters in Centerville to support her Quilts Unlimited store. Her business adviser suggests that she not limit her promotion to the Centerville population but also consider outshoppers. This approach is most likely to work if her store is located in a
regional shopping center.
The elimination of marketing intermediaries
requires that the services they provide be performed by someone else in the marketing channel.
Josh tells the loan officer at First Bank and Trust that Clarksville really needs a store that offers high-quality fishing gear to enthusiasts and provides the service and advice that many people want. No other store in the area seems to provide this combination. Josh is trying to use ___________ to support his request for a loan to start such a retail operation.
retail positioning
Identifying an unserved or underserved market segment and serving it through a strategy that is distinguished in the mind of the consumer is called
retail positioning.
Eric is concerned about not having enough air conditioning units in inventory during June, July, and August so he keeps extra inventory to guard against stockouts during this critical period. Eric is keeping
safety stock.
In marketing a new line of nursery furniture for infants and small children, the Fisher Company will most likely use ___________ distribution for the products.
selective
Durable goods such as television sets and DVD players generally reach their target markets through
selective distribution.
Using only some of the available outlets to distribute a product is called
selective distribution.
Fragile products that require special handling are more likely to be distributed through
shorter channels.
Off-price retailers and category killers are both
specialty retailers.
A functional and psychological picture in the consumer's mind of a retail store is called
store image.
A retailer engaged in direct marketing would probably select television home shopping over online retailing to sell a new kitchen device because
superior ability to demonstrate the product.
Kroger, Safeway, and Publix are all considered
supermarkets.
In an administered VMS, informal coordination brings about a high level of interorganizational management. Nonetheless,
the channel members remain autonomous.
Possession utility is best described as
the customer having access to the product to use now or store and use later.
The notion of physical distribution is
the movement of products from producers to end users.
Order processing is defined as
the receipt and transmission of sales order information.
Channel decisions are important to marketers mostly because they are relatively flexible to change quickly. consumers value reasonable prices delivered through marketing channels. they dictate what promotional strategies companies should use. many businesses are marketing intermediaries. they involve long-term commitments and affect customer accessibility.
they involve long-term commitments and affect customer accessibility.
Physical distribution activities may be performed by a producer, wholesaler, retailer or
they may be outsourced.
The main reason a manufacturer will prohibit intermediaries from selling its products outside designated sales territories is to
tighten its control over distribution of its products.
The reasons a vertically integrated channel can be more effective against competition is because of all of the following except
tightly controlled and bureaucratic management style.
Having products available when the customer wants them is called place utility. time utility. availability. possession utility. chronavailability.
time utility.
Many cities are revitalizing their downtown areas by bringing in new retail establishments. They are building new civic structures, passing ordinances that encourage the restoration of historic buildings, and developing mixed-use structures that include retail, residential, and other uses. These areas are best described as
traditional business districts.
Matt's girlfriend tells him she wants a cashmere sweater for Christmas. Matt decides to go to a store that provides the best possible selection of sweaters. His best choice would be to shop at a________ store.
traditional specialty
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
unit loading.
The best way to reduce overall distribution costs is to
use a total-cost approach to analyze and evaluate the entire system.
Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume?
Discount stores
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?
Distribution center
Which of the following best describes wholesalers?
Organizations or individuals who buy products for resale to government, reseller, producer, and institutional users.
Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channel are these manufacturers most likely to use?
Producer, wholesaler, retailer, consumer
Nationally distributed consumer convenience products are most likely distributed through which of the following channels?
Producer, wholesalers, retailers, consumers
Which of the following is least likely to be a factor affecting the selection of marketing channels?
Product packaging
Which mode of transportation hauls more freight than any other?
Railroads
What two modes of transportation are used when containers are shipped by piggyback?
Railroads and trucks
Norah operates an upscale shop that does both pet grooming and human manicures and pedicures. She is reaching a market segment with people who place great value on their dogs and are concerned with their own appearance, yet pressed for time. No other businesses meet the needs of these consumers. Which strategic issue in retailing does Norah appear to have addressed?
Retail positioning
Which of the following may include special attractions such as amusement parks or skating rinks
Superregional shopping centers
Laura goes to Wal-Mart and buys some clothing, a DVD, and all the groceries she needs for her family. What type of retailer is this particular Wal-Mart?
Superstore
Which of the following is an advantage of using an industrial distributor?
They help reduce a producer's financial burdens by extending credit to customers.
Which of the following is an example of a category killer?
Toys "R" Us
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?
Waterways
A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances?
When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force
In an administered vertical marketing system (VMS), interorganizational relationships are
achieved by informal coordination.
In Cara's hometown, there is a mall with a small Sears store, a Macy's department store, a couple of fast food restaurants, a few specialty shops, and some convenience stores. The mall features seasonal sidewalks sales and boat shows. This mall is most likely a ______ shopping center.
community
Goodyear allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly increases the possibility of channel ___________ with independent Goodyear dealers.
conflict
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.
conflict
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
containerization.
Order handling involves all of the following activities except that the
customer places a purchase order.
Customers who purchase computer laptops from manufacturer websites are acquiring products through
direct-marketing channel.
Many producers selling on the Internet are using
direct-marketing channels.
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
direct-marketing.
In the Sunday paper, Caitlin sees a flyer for a collector's edition Thomas Kinkade plate that is available to purchase by filling out and mailing in a form or by calling a 1-800 number. This is an example of
direct-response marketing.
When a retailer advertises a product and makes it available for purchase through telephone or mail orders, the retailer is using
direct-response marketing.
If Ralston Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be
exercising channel power.
Colin brags to his friend Reid that his new bike shop has lots of parking and great visibility from Harper Avenue, and his nearest business neighbors are several hundred feet away. Colin has selected a ____________ site for his retail business.
free-standing
The primary advantage of automatic vending as a form of retailing is that
it eliminates the need for sales personnel.
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).
If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are long-term commitments. short-term commitments. easier to change than prices. easier to change than promotion. impossible to change.
long-term commitments.
Category killers compete primarily on the basis of
low prices and enormous product availability.
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
materials handling.
Stores such as T.J. Maxx, Burlington Coat Factory, and Marshalls buy manufacturers' seconds, overruns, returns, and off-season production runs at below wholesale prices. These firms resell this merchandise to consumers at deep discounts, and are called
off-price retailers.
Brad accesses Borders Books and Prints' site on the World Wide Web and purchases a copy of a new best seller. This is an example of
online retailing.
Nathan is trying to decide which shipping company to use to transport his custom-made furniture to customers. Nathan is facing a decision about
order delivery.
By receiving orders online instead of through a paper-based ordering system, Barnes and Nobles has been able to save time and money on
order entry.
Assuming everything else equal, the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be
pipelines.
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
private warehouse.
In contrast to industrial products, consumer products are often purchased because of
social influences.
A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n)
specialty retailer.
A narrow product mix with a deep product line would most likely be carried by
specialty retailers.
Jack Ingalls gets a shopping list from his wife. On the list are a potted plant, fresh salmon, motor oil, bread, milk, and a birthday cake. To make just one stop to save time, Jack should go to a(n)
supermarket.
Large, self-service stores that carry a complete line of food products and some nonfood products are called
supermarkets.
Tying agreements occur when a
supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well.
When products are presented to television viewers, who can purchase them by calling a toll- free number and paying with a credit card, ________ is being used.
television home shopping
Kelly Cramer sees a lovely pair of earrings on a television network and calls a toll-free number to order them, paying with her credit card. This is an example of
television home shopping.
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.
trucks
In a simple economy of five producers and five consumers, there would be ___________ transactions possible without an intermediary and _________ transactions possible with one intermediary.
twenty-five; ten
A retailer is an organization that purchases products for the purpose of reselling them to
ultimate consumers.
