Chapter 13 - Questions

A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances? - The product being sold is relatively inexpensive and easy-to-use. - The manufacturer's sales force is available to assist the agents and distributors. - The producer wants to cover a large geographic area but has no sales force. - The manufacturer's product is expensive with a lot of specific technical detail.

- The producer wants to cover a large geographic area but has no sales force.

Customers receive the benefits of form utility from an intermediary when _______. - the product is preassembled in the manufacturer's packaging - a retailer offers to add a monogram to a product - the consumer is preapproved for purchase and does not have to complete paperwork - the retailer has many locations available to purchase a desired product

- a retailer offers to add a monogram to a product

Which of the following is not a benefit of Unified using multiple intermediaries? Functioning more efficiently Reducing expenses Performing services more efficiently Making the distribution channel as short as possible

Making the distribution channel as short as possible

Uniqlo has adopted a system that employs tags and readers to identify and track materials tagged with special microchips through every phase of handling. This system is dramatically improving inventory control and equipment tracking while also thwarting distribution of counterfeit Uniqlo branded clothing. This system is best described as _______. Vertical marketing systems (VMS) Radio frequency identification (RFID) Electronic data interchange (EDI) Third-party logistics (3PL) firms Just-in-time (JIT)

Radio frequency identification (RFID)

Aramis Corporation sells hammers and other tools to Blue's Hardware Store. Suppose that Aramis, which is the only supplier of a specific type of hammer that Blue's sells, informs Blue's that it will have to purchase certain other products from Aramis if it wants to continue receiving the hammers. Blue's owner is dismayed because these other products are costly. It has no customers for these products. Aramis is attempting to get Blue's to enter into _______. restricted sales territories a refusal to deal a vertical integration partnership exclusive dealing a tying agreement

a tying agreement

American Eagle allows shoppers to buy its clothing through its stores or through its website, ae.com. This is an example of _______. vertical integration horizontal channel integration tying agreements dual distribution

dual distribution

form utility

elements of the composition and appearance of a product that make it desireable

When a producer, wholesaler, or retailer has the ability to influence another channel member's goal achievement, it _______. is vertically integrated has channel power is a channel captain is horizontally integrated

has channel power

Large manufacturers such as Procter & Gamble are typically able to have control over how their products are promoted and sold in different retail outlets. Due to this control, Procter & Gamble is likely a channel _______. developer priority captain dominator

captain

Which channel includes goods passing from producer, to agents, to wholesalers, to retailers, and finally to consumers? Channel C Channel B Channel A Channel D

channel D

Which channel is the direct channel for business products? Channel F Channel E Channel H Channel G

channel E

Corinne works in procurement for a major electronics company. One of her challenges is ensuring that raw metals, such as tungsten, coltan, and tantalum, are not being sourced from mines whose profits are used to finance war lords and terrorists. She's very excited to work with a new company that uses _______, an incorruptible digital recordkeeping system to track these precious metals from mine to manufacturer to ensure they are not "conflict metals." blockchain supply chain vertical integration logistics cloudchain

blockchain

Adah works in logistics for a manufacturing firm and manages inventories. Her managers want the organization to be more lean, but Adah knows that stockouts can lead to customer dissatisfaction. Thus, determining optimal reorder points is vital. If the usage rate of her current product is ten units per day, the order lead time is five days, and the safety stock is ten, what is the reorder point? 105 500 60 50 10

60

Which of the following is most likely to use exclusive distribution? Ferrari 488GTB Nespresso espresso machines Microsoft Office Suite Ford vehicles Apple iPad

Ferrari 488GTB

Which of the following companies and their products would most likely use intensive distribution? Prada (handbags, fashion accessories, etc.) Kimberly-Clark (paper-based products) Rolex (jewelry) Sony (electronics) Dell (electronics)

Kimberly-Clark (paper-based products)

P&G will sell through its website, through grocery stores, through drug stores, and through several other intermediaries—all at the same time. The company is worried that there will be communication difficulties and disagreements between these intermediaries. What would this channel member behavior be? Channel conflict Channel integration Channel leadership Channel cooperation

channel conflict

Snap-on Tools uses a franchise model to sell shop equipment products to customers. When Snap-on developed a website that sold tools directly to consumers, this likely caused _______ with franchisees, which would likely increase if Snap-on reaches an agreement to sell through Home Depot as well. channel leadership horizontal channel integration channel conflict channel cooperation

channel conflict

Suppose you roast coffee and sell it to Maximum Markets. You have a good relationship with Maximum Markets and have relied on them for many years to display your coffees in their stores. Your marketing chain has been relatively short, going from you (the producer) to the reseller (Maximum Markets) to the end consumer. However, you recently received an offer to sell your coffee in other retail stores, some that compete directly with Maximum Markets. You also would like to start selling directly through your website. You decide to provide discounts for coffee sold online. Integrating more channel members and selling to customers directly is likely to cause _______ with Maximum Markets. vertical integration channel cooperation channel conflict channel integration logistics conflict

channel conflict

If Kellogg's is forcing its retailers to place its cereals in prime locations on the shelves so customers can see them easier than the competition, it would be _______. leading channel cooperation integrating the channel vertically demonstrating channel power integrating the channel horizontally

demonstrating channel power

Companies have been using computer technology to integrate order processing with production, inventory, accounting, and transportation in a system referred to as _______. expected data input inventory management electronic data interchange (EDI) just-in-time (JIT) delivery

electronic data interchange (EDI)

Which factor of selecting a marketing channel considers new government regulations? Product attributes Characteristics of intermediaries Environmental forces Customer characteristics

environmental forces

An arrangement under which a producer forbids an intermediary to carry products made by competing manufacturers is called _______. exclusive distribution a tying agreement exclusive dealing refusal to deal

exclusive dealing

Fila Sports Oceania is a subsidiary of an Italian company that owns apparel rights for certain teams in the Australian Football League. Fila introduced a policy in which retailers could not feature Fila products in the same stores as other licensed products from its rivals. The Australian Competition and Consumer Commission ruled this as anticompetitive. Fila was most likely forcing its retailers into _______. tying agreements refusal to deal agreements restricted sales territories full-line forcing exclusive dealing

exclusive dealing

Which of the following levels of market coverage entails utilizing only one dealer within a relatively large geographic area? Selective distribution Exclusive distribution Digital distribution Intensive distribution

exclusive distribution

SimpleTech is a startup that offers a line of smart technology products that integrate with Alexa and Google Assistant. Although its first products—smart electrical outlets and light switches—did very well, SimpleTech is facing some challenges getting its latest products into retail stores. The company's president wants to require retailers to purchase its entire product line in order to be able to order the electrical outlets and light switches. The company's legal counsel is recommending against this action because the courts have often rejected such agreements. SimpleTech is attempting to adopt _______. restricted sales territories exclusive dealing refusal to deal VMS agreements full-line forcing

full-line forcing

In 2015, Heinz and Kraft Foods merged into one company. This is most likely an example of _______. multichannel distribution strategic channel alliance horizontal channel integration vertical channel integration logistics

horizontal channel integration

If PetSmart began to acquire very successful local pet stores, this would be an example of _______. digital integration horizontal integration channel power multichannel integration vertical integration

horizontal integration

time utility

increase in customer satisfaction gained by making a good or service available at the appropriate time

possession utility

increased value of a product that is created as its ownership is transferred

Grainger is an industrial supply company selling equipment from manufacturers and selling the equipment to manufacturing companies. Grainger takes title and carries inventory of the products it sells. Grainger is an example of a(n) _______. wholesaler broker manufacturer's agent industrial distributor

industrial distributor

Grainger specializes in products that are used to maintain, repair, and operate facilities (MRO products). Grainger takes title to products and carries inventories. It also offers services such as inventory management and support. Grainger is most likely a(n) _______. industrial distributor third-party logistics firm channel captain private warehouse megacarrier

industrial distributor

P&G will utilize wholesalers and retailer relationships to make its hair care products available in every possible outlet across the country. This is an example of which type of distribution intensity? Intensive Selective Exclusive Direct

intensive

When Coke Zero was added to the line of Coca-Cola products, it most likely was introduced using _______ distribution. full-market intensive exclusive selective

intensive

Scenario 13.1. Redbox places its vending machines in easy-to-reach areas around pharmacies, grocery stores, discount stores, and more. Most customers of Redbox purchase video and game rentals around dinnertime, so the fact that many of the machines are located close to grocery stores is a strategic move that benefits both Redbox and the store. Redbox manages its selection by keeping track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays based on this information. Customers can also reserve movies online. Redbox attempted to engage in digital distribution to compete with Netflix, but the initiative failed. Redbox, however, is not giving up as it recognizes that digital streaming is the future. Refer to Scenario 13.1. What type of market coverage is Redbox most likely to use? Intensive distribution Exclusive distribution Intermediate distribution Extensive distribution Selective distribution

intensive distribution

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? Exclusive distribution Intensive distribution Digital distribution Selective distribution

intensive distribution

Dell Computer and Harley Davidson are well known for their use of the just-in-time (JIT) approach. To which of the following logistics activities does the JIT approach belong? Warehousing Order processing Inventory management Transportation Materials handling

inventory management

JanSport offers a line of backpacks in a variety of styles and sizes. The company needs to make sure it has an adequate assortment of backpacks available to meet customer demand as part of the _______ stage of logistics. warehousing materials handling inventory management transportation

inventory management

Scenario 13.1. Redbox places its vending machines in easy-to-reach areas around pharmacies, grocery stores, discount stores, and more. Most customers of Redbox purchase video and game rentals around dinnertime, so the fact that many of the machines are located close to grocery stores is a strategic move that benefits both Redbox and the store. Redbox manages its selection by keeping track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays based on this information. Customers can also reserve movies online. Redbox attempted to engage in digital distribution to compete with Netflix, but the initiative failed. Redbox, however, is not giving up as it recognizes that digital streaming is the future. Refer to Scenario 13.1. Redbox kiosks keep track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays it uses to supply the kiosks based on this information. These activities most likely fall under which of the following? Transportation Warehousing Inventory management Order processing Materials handling

inventory management

Unified grows its inventory by purchasing from producers and then it distributes these products to retailers of all shapes and sizes. Which logistic function does this represent? Warehousing Inventory management Order processing Materials handling

inventory management

What is the process called for developing and maintaining adequate assortments of products to meet customers' needs? Warehousing Transportation Inventory management Materials handling

inventory management

Within its supply chain, Walmart establishes channel policies and coordinates development of the marketing mix. Walmart most likely _______. is a channel captain is horizontally integrated is vertically integrated is a digital channel member has channel power

is a channel captain

Alicia is a product manager for a computer manufacturer and has decided to improve its inventory management. She is working with suppliers to wait to purchase materials right before they are needed in production so she can keep the levels of inventory low. She is suggesting a(n) _______ approach. safety stock just-in-time (JIT) inventory reduction ordering minimization

just-in-time (JIT)

Pierre runs a grocery store and is working with his suppliers in the planning and implementation of the flow of products from the manufacturer to his store. The goal is to make the transportation and storage of products more efficient and effective. He is engaging in _______. operations management logistics management procurement channel management

logistics management

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? Logistics management Operations management Procurement Supply chain management (SCM)

logistics management

Mallory loves her job. She sells complementary products of several producers in assigned territories and is compensated through commissions. Mallory is highly effective at selling these products and is able to earn a high income from commissions. The best part is she never actually owns the products she sells. She acts more as a salesperson. Mallory is most likely a(n) _______. manufacturer's agent megacarrier industrial distributor logistics manager wholesaler

manufacturer's agent

What is a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain? Place utility Marketing channel Marketing intermediary Form utility

marketing channel

Which type of channel variation uses a variety of marketing channels to ensure maximum distribution? Multichannel distribution Direct to consumer strategy Strategic channel alliance Digital distribution

multichannel distribution

What is the receipt and transmission of sales order information? Order processing Inventory management Outsourcing Cycle time

order processing

As the marketing manager for P&G's Hair Care category, you decide to sell P&G's hair products online through P&G's website. This is an example of which type of utility? Place utility Time utility Possession utility Form utility

place utility

Scenario 13.1. Redbox places its vending machines in easy-to-reach areas around pharmacies, grocery stores, discount stores, and more. Most customers of Redbox purchase video and game rentals around dinnertime, so the fact that many of the machines are located close to grocery stores is a strategic move that benefits both Redbox and the store. Redbox manages its selection by keeping track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays based on this information. Customers can also reserve movies online. Redbox attempted to engage in digital distribution to compete with Netflix, but the initiative failed. Redbox, however, is not giving up as it recognizes that digital streaming is the future. Refer to Scenario 13.1. Consider that Redbox locates its kiosks close to shopping centers where customers can pick up a movie while out shopping for food or other supplies. Based upon this, what type of utility do Redbox's kiosks offer to consumers? Form utility Time utility Possession utility Place utility Cost utility

place utility

Carlos works at Kellogg's and is on a team developing a new breakfast cereal. He is currently trying to contact different companies who can provide the specific ingredients and equipment needed to make the cereal. He will work with the procurement department to reach an agreement with the companies selected to provide the ingredients and equipment. Carlos is currently engaging in _______. logistics management sourcing procurement purchasing

procurement

Scenario 13.1. Redbox places its vending machines in easy-to-reach areas around pharmacies, grocery stores, discount stores, and more. Most customers of Redbox purchase video and game rentals around dinnertime, so the fact that many of the machines are located close to grocery stores is a strategic move that benefits both Redbox and the store. Redbox manages its selection by keeping track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays based on this information. Customers can also reserve movies online. Redbox attempted to engage in digital distribution to compete with Netflix, but the initiative failed. Redbox, however, is not giving up as it recognizes that digital streaming is the future. Refer to Scenario 13.1. Shane is in charge of working with movie studios and third-party distributors to purchase DVDs and Blu-ray discs to be made available through the kiosks. His only responsibility is to procure the movies and video games for the different kiosks. Purchasing specifically falls under _______. intermediary management logistics management procurement channel management operations management

procurement

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

producer to consumer

Kraft sells its macaroni and cheese through thousands of retailers across the country. Which of the following marketing channel structures is Kraft most likely to use? Producer and consumer Producer, wholesaler, retailer, and consumer Producer, retailer, and consumer Producer, wholesaler, and consumer

producer, wholesaler, retailer, and consumer

Carlos is looking for a way to transport low-sulfur coal. He would like to choose a transportation mode that will get his product to its destination in a reasonable time period. He also needs the transportation mode he chooses to carry large quantities of this coal, but he would like to keep costs down. Which mode of transportation should Carlos use? Railroad Pipeline Waterway Airplane Truck

railroad

Which practice allows producers the right to choose or reject the channel member with which they will do business? Restricted sales territories Refusal to deal Exclusive dealing Tying agreements

refusal to deal

Gucci sells its handbags through its company-owned stores and through a handful of high-end department store chains like Neiman Marcus and Saks Fifth Avenue. Gucci is using _______ distribution. exclusive full-market intensive selective

selective

One distribution option Unified is considering is to sell its fair trade coffee through only a dozen coffee shops in each major city in the United States. This is an example of which type of distribution intensity? Intensive Nontraditional Exclusive Selective

selective

Exclusive distribution is _______. appropriate for convenience products not suitable for infrequently purchased products suitable for products consumed over a long period of time desirable when a special effort is important

suitable for products consumed over a long period of time

Firms that are "upstream" in the supply chain include _____, while those that are "downstream" include _____. first blank: suppliers shippers wholesalers and retailers customers second blank: first blank: suppliers shippers wholesalers and retailers customers

suppliers and wholesalers and retailers

A(n) ______ is all the organizations and activities involved in the upstream and downstream flow of providing products to customers. operations management procurement supply chain logistics management

supply chain

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 _______. channel conflict a vertical marketing system supply chain management a horizontal marketing system

supply chain management

Which of the following is most likely to use the channel where the good goes from producer to retailer to end consumer? Target Sysco Netflix Hershey Caterpillar

target

BSNF Logistics is an organization that companies can use to help with their logistics needs. BSNF touts its strong capabilities in land, air, water, and rail services. It creates customized solutions to meet a variety of logistics needs for its customers. BSNF Logistics maintains that it has strong expertise in core logistics activities and can often perform these activities more efficiently. BSNF is most likely a(n) _______. wholesaler third-party logistics firm manufacturers' agent industrial distributor megacarrier

third-party logistics firm

Hulu enables consumers to watch select TV shows whenever they want instead of when they are broadcast. This illustrates _______. possession utility technological utility form utility time utility place utility

time utility

_____ is the most expensive logistics function inventory management order processing materials handling transportation

transportation

Redlands Distributing wants to carry Tide detergent products made by Procter & Gamble (P&G). P&G agrees, but only if the supplier also purchases P&G's entire line of detergents such as Gain and Cheer. If this were to occur, Procter & Gamble would be engaging in which of the following channel management practices? Refusal to deal Exclusive dealing Multichannel distribution Tying agreement

tying agreement

A practice where an agreement states that a supplier provides a product to a channel member with the condition that the channel member must purchase other products as well is known as what? Tying agreements Refusal to deal Restricted sales territories Exclusive dealing

tying agreements

When launching its Dove Men+Care line of men's skin care products, Unilever told its distributors that they had to carry the new line if they still wanted to carry the rest of the Dove line of products. They would have been engaging in which of the following channel management practices? Restricted sales territories Refusal to deal Dual distribution Tying agreements

tying agreements

place utility

usefulness of a good or service as a function of the location at which it is made available

In addition to producing the popular iPod and iPad, Apple also helps design the components as well as the processors. It also owns its own retail stores. Apple therefore operates in the hardware, software, services, and retail industries. This is an example of _______. channel conflict horizontal channel integration channel leadership vertical channel integration channel cooperation

vertical channel integration

_____ is combining two or more stages of the marketing channel under one management. vertical channel integration channel captain channel cooperation horizontal channel integration

vertical channel integration

Which of the following provides time utility by enabling firms to compensate for dissimilar production and consumption rates? Warehousing Transportation Inventory management Order processing

warehousing