MKTG 3348 - Ch.5 Questions

_____ occurs when the retailer and supplier have different perceptions of reality. a. Perceptual incongruity b. Domain disagreements c. Goal incompatibility d. Gray marketing e. Dual distribution

Perceptual incongruity

Which one of the following institutions involved in a supply chain would take title to the goods it is dealing with? a. Trucking company b. Insurance company c. Market researcher d. Retailer e. Public warehouse

Retailer

Sun Fashions offered to display Shark Sportswear's new line of swimwear at the entrance of its store if Shark pays 50 percent of the advertising expenses for Sun Fashions' Spring/Summer Catalog. Sun Fashions is employing which type of power? a. Reward power b. Traffic power c. Referent power d. Legitimate power e. Expertise power

Reward power

There are actually three strategy decisions to be made when designing an efficient and competitive supply chain: supply chain length, width, and: a. convenience. b. depth. c. organization. d. type. e. control.

control

Retailers frequently use _____ for short-term loans to fund working-capital requirements. a. commercial banks b. factors c. e-tailing brokers d. stock and commodity exchanges e. venture-capital firms

factors

Although there are exceptions, as a general rule _____ distribution is associated with _____ goods. a. intensive; shopping b. intensive; convenience c. selective; specialty d. selective; luxury e. selective; convenience

intensive; convenience

Although there are exceptions, as a general rule _____ distribution is associated with _____ goods. a. intensive; shopping b. intensive; specialty c. selective; specialty d. selective; shopping e. selective; convenience

selective; shopping

The dominant behavior in successful supply chains is: a. collaboration. b. free-riding. c. coercive power. d. conflict resolution. e. solidarity.

collaboration

The supply chain, or channel, is affected by five external forces: consumer behavior, the legal and ethical environment, the socioeconomic environment, the technological environment, and: a. the natural or physical environment. b. competitive behavior. c. personal relationships. d. channel function management. e. new government regulations.

competitive behavior

A supply chain in which each member is loosely aligned with the others is a(n): a. modified channel. b. unadministered channel. c. conventional marketing channel. d. corporate marketing channel. e. contractual marketing channel.

conventional marketing channel

A(n) ______occurs when the manufacturers sell their goods directly to the final consumer. a. supply chain width b. selective distribution channel c. direct supply chain d. exclusive distribution channel e. indirect supply chain

direct supply chain

The major difference between primary marketing institutions and facilitating marketing institutions is that facilitating members: a. do not take title to the goods. b. are paid only a percentage of profits made. c. take title to the goods. d. perform all eight functions in all channels situations. e. are always paid by the manufacturer.

do not take title to the goods

Prior to pulling its products out of Target, Tupperware made its products available in the giant retailer's stores. Independent Tupperware sales representatives complained that this had a "detrimental effect" on Tupperware parties. This was an example of: a. perceptual incongruity. b. domain disagreements. c. goal incompatibility. d. gray marketing. e. dual distribution.

dual distribution

Although there are exceptions, as a general rule _____ distribution is associated with _____ goods. a. intensive; shopping b. selective; convenience c. selective; specialty d. exclusive; shopping e. exclusive; specialty

exclusive; specialty

A customer visits Best Buy to learn about the different models, their features, and the usage of new digital cameras. This customer then leaves the store without purchasing the camera from Best Buy and makes the actual transaction on Amazon.com. This is an example of: a. diverting. b. gray marketing. c. free riding. d. goal incompatibility. e. perceptual incongruity.

free riding

Selective distribution: a. means that all possible retailers are used to reach the target market. b. means only one retailer is used in the trading area. c. means that a smaller number of retailers are used to reach the target market. d. is associated with the distribution of convenience goods. e. is identified with specialty goods.

means that a smaller number of retailers are used to reach the target market

The major facilitating institution involved in storage is the: a. private warehouse. b. in-transit warehouse. c. demand collection channel. d. contract warehouse. e. public warehouse.

public warehouse

An example of coercive power is a manufacturer's: a. refusal to sell merchandise to any retailer who sells to diverters. b. offer to increase the cash discounts if the retailer meets a sales quota. c. offer a co-op promotional plan to all retailers in a key city. d. payment for a prominent display area in a retailer's store. e. act of sending the retailer a Christmas card without a year-end bonus.

refusal to sell merchandise to any retailer who sells to diverters

TrueValue, Ace, and Handy Hardware are all examples of a(n): a. retailer-owned cooperative. b. contractual vertical marketing system. c. wholesaler-sponsored voluntary group. d. independent retailer. e. franchisee.

retailer-owned cooperative

The eight marketing functions are buying, selling, storing, transporting, information gathering, financing, risk taking, and: a. managing. b. product development. c. facilitating. d. designing. e. sorting.

sorting

Usually high-prestige branded products that the consumer expressly seeks out, such as Rolex watches, are known as: a. shopping goods. b. industrial goods. c. convenience goods. d. raw materials. e. specialty goods.

specialty goods

A _____ is defined as a set of institutions that moves goods from the point of production to the point of consumption. a. retail system b. transporter c. supply chain d. franchisee e. value chain

supply chain

Facilitating institutions may best be described as specialists that: a. while not taking title, still perform marketing functions for supply chain members. b. create new markets for the manufacturer. c. serve as the supply chain leaders. d. perform functions supply chain members cannot legally perform. e. eliminate conflict from the supply chain.

while not taking title, still perform marketing functions for supply chain members

Sylvan Learning, The UPS Store, AAMCO Transmissions, H&R Block, and Lawn Doctor are examples of what kind of vertical marketing channel? a. Wholesaler-sponsored voluntary group b. Contractual channel system c. Administered system d. Retailer-owned cooperative e. Conventional marketing system

Contractual channel system

What type of vertical marketing channel has a well-established authority structure? a. Franchise system b. Contractual vertical marketing system c. Conventional marketing system d. Corporate vertical marketing systems e. Wholesaler-sponsored voluntary group

Corporate vertical marketing systems

_____ occur when there is a disagreement about which member of the marketing channel should make decisions. a. Perceptual incongruity b. Domain disagreements c. Goal incompatibility d. Gray marketing e. Dual distribution

Domain disagreements

Manufacturers usually listen to a retailer's statements about the introduction of new products because retailers are often more knowledgeable about how their consumers will react. Manufacturers understand that retailers possess what type of power in this example? a. Legitimate b. Expertise c. Knowledge-based d. Reward e. Referent

Expertise

Identify the incorrect statement about the conventional marketing channel. a. It is historically predominant in the United States. b. It is a sloppy and inefficient method of conducting business. c. It fosters intense negotiations within each pair of institutions in the supply chain. d. Its members are able to divide the marketing functions among all the participants. e. It has been on the decline in the United States since the early 1950s.

Its members are able to divide the marketing functions among all the participants

_____ exists when a high value is placed on the relationship between a supplier and retailer. a. Mutual trust b. Two-way communication c. Solidarity d. Category management e. Gray marketing

Solidarity

Identify the correct statement about quick response (QR) systems. a. They are developed by conventional channel members. b. They are also known as SKU systems. c. These systems are different despite the similar names adopted by various retail industries. d. They are designed to obtain real-time information on consumers' actions by capturing ECR data at point-of-purchase terminals. e. The information obtained is used to develop new or modified products, manage channel-wide inventory levels, and lower total channel costs.

The information obtained is used to develop new or modified products, manage channel-wide inventory levels, and lower total channel costs