Chapter 14 Quiz Questions

Logistics Plus is an organization that consolidates shipments from several industrial firms into more efficient lot sizes so that they can be more efficiently transported. What type of transportation company is Logistics Plus?

A freight forwarder

Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) ____ channel.

producer-to-buisness buyer

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.

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

If a microchip in a computer at the Pentagon 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 New York City?

Airway

Order handling involves all of the following activities except when the:

Answer: customer places a purchase order.

When considering the best channel to use, all of the following are true with regard to larger firms except they

Answer: may be better suited to serve customers in a particular region.

Walgreens drug stores prefer to receive refills of prescriptions through a phone-based system where customers can directly key in the information about the drug. By receiving orders in this manner rather than through a paper-based system or by a phone conversation with a pharmacy employee, Walgreens has been able to save time and money on

Answer: order entry

Which of the following is least likely to be a factor affecting the selection of marketing channels?

Answer: product packaging

Large retailers such as JCPenney and Target are most likely to participate in which of the following channels?

Producer, retailers, consumers

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

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

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. 16; 8 b. 25; 10 c. 10; 25 d. 25; 15 e. 30; 10

b

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

b

Netflix sells its movie services using its website while Redbox sells its movie services using vending machines. Each requires the products to be distributed through different channels. Netflix is using ____, while Redbox is using ___ to get the movies to its vending machines. a. multichannel distribution; physical distribution b. digital distribution; physical distribution c. multichannel distribution; digital distribution d. intensive distribution; selective distribution e. digital distribution; just-in-time distribution

b. digital distribution; physical distribution

After direct marketing, the next slightly longer marketing channel adds a(n) a. agent. b. wholesaler. c. retailer.

c

A single leader who controls and organizes a marketing channel is called a

channel captain

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

Aaron 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 Aaron take as he institutes this change? a. Reduce estimates of inventory turnover rate b. Raise the reorder point c. Increase safety stock d. Reduce customer service standard e. Increase order frequency

e

Suppose that Jackson Distributing has been told that it cannot carry the beers made by Anheuser-Busch because it also carries the products of the competitor, Miller Brewing. Jackson is then told that it must drop the Miller brands in order to carry the Anheuser-Busch products. If this were true, Anheuser-Busch would be engaging in which of the following channel management practices? Answers: a. Refusal to deal b. Tying contacts c. Restricted sales territories d. Multichannel distribution e. Exclusive dealing

e

Which of the following products will most likely use the shortest distribution channel? a. Chewing gum b. DVDs c. Cereal d. Toy cars e. Fresh strawberries

e

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

Companies that sell products with high profit margins are more likely to use _______________. Companies selling products whose sales are directly related to product availability will most likely use ______________.

exclusive distribution; intensive distribution

Peabody Garden Supply is trying to optimize its method of getting products to customers. It has added electronic ordering systems for customers and improved the training process for workers in the warehouse who make the products ready for shipment. The improvements Peabody has made are to its ________

order processing

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

ClearChem is a producer of chemicals used in car detailing and painting. Because of the volatility of their chemical products when exposed to dirt and heat, ClearChem operates its own facilities for storing and shipping its products. ClearChem's facilities are most likely known as:

private warehouses

When Amazon.com introduced its Kindle Fire HD, it was available through Amazon.com, Staples office supplies stores, and a few other retailers. The Kindle Fire HD was most likely distributed through the _________ of distribution

selective level

Possession utility is best described as:

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

A drug maker got in trouble with the FTC. If patients of the drug maker wanted to purchase its schizophrenia drug, they also had to buy its ​blood-monitoring services. The FTC found this to be unfair. This is an example of a(n)

tying agreement

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

e