MKT CH 15 SB
What is a wholesaler?
A company that buys merchandise from manufacturers and resells it to retailers
Which of the following is the best example of vertical channel conflict?
A computer manufacturer angers its retailers by selling its products at a discount online.
When a supplier ships merchandise to a retailer, an electronic document is sent first to tell the retailer exactly what to expect in the shipment. What is the term for this document?
Advanced shipping notice (ASN)
When a new franchise business opens, the franchisor who owns the original business is typically still responsible for which of the following? (Choose every correct answer.)
Advertising,Developing the products and services
Which of the following is an example of power being exerted within a marketing channel?
Although all companies in the channel are independent, one large retailer controls what a small supplier can do.
Which of the following are the responsibility of buyers? (Choose every correct answer.)
Arranging joint promotions,Negotiating prices
How have other retailers responded to Amazon Prime's two-day shipping program?
By offering free expedited shipping
What often results when channel members have opposing goals?
Channel conflict
Mutual trust helps partners in strategic relationships to do which of the following? (Choose every correct answer.)
Communicate efficiently,Share ideas,Discuss goals and problems
Which vertical marketing system gives complete power to the parent company?
Corporate
In which type of marketing channel are multiple segments owned by the parent company?
Corporate vertical marketing system
Strategic relationships rely on which of the following to succeed? (Choose every correct answer.)
Credible commitments,Mutual trust
What is the first flow of information (Flow 1) in a supply chain?_.
Customer to store
Strategic relationships are beneficial because they help members do which of the following? (Choose every correct answer.)
Develop joint projects,Take risks,Accomplish goals
In which type of marketing channel are products sold by a manufacturer to a consumer without going through a retailer?
Direct
What term describes a facility that receives, stores, and redistributes merchandise? Â
Distribution center
Where do retailers typically find it most cost effective to store merchandise?
Distribution centers
Information in a supply chain flows to and from which of the following? (Choose every correct answer.)
Distribution centers,Wholesalers,Manufacturers
Which of the following occurs in a conventional marketing channel?
Each channel member pursues its own objectives independently, with little care about other channel members.
What is the best way to avoid vertical channel conflict?
Ensure that communication between channel partners is honest and open.
Who performs a specialized function within a marketing channel?
Every member
If a car stereo specialty retailer has extremely knowledgeable salespeople and installers, car stereo manufacturers may be motivated to let the retailer decide how its products should be marketed. What kind of power does the retailer have?
Expertise
What term describes a contractual agreement between two companies in which one company gives the other company, in exchange for a lump sum and royalties, the right to operate a retail outlet using a name and format developed by the first company?
Franchising
Which type of marketing channel includes a retailer or other intermediaries in the delivery of goods and services to consumers?
Indirect
Which of the following are the common types of marketing channels? (Check all that apply.)
Indirect,Direct
Which of the following describes deep, long-term relationships between supply chain members that are based on mutual benefits?
Interdependence
In order to avoid disappointing customers by not having the promised merchandise in stock, advertising and promotion must be coordinated with what?
Inventory and transportation
Which departments must work together to make sure that advertised products are available to customers? (Choose every correct answer.)
Inventory control,Transportation,Advertising
Why is open communication vital to a strategic relationship? (Choose every correct answer.)
It helps supply chain members understand each other's strategies.,It allows supply chain members to fine-tune their roles in the supply chain relationship.,It helps supply chain members identify problems that might arise.
Which of the following are advantages of a corporate vertical marketing system? (Choose every correct answer.)
It reduces potential conflict.,The corporation exercises complete control over the marketing channel.
What effect does mutual trust have on the need to monitor other supply chain members?
It reduces the need to constantly monitor each other.
Which of the following types of power requires a contract?
Legitimate
When the manufacturer is about to send merchandise, it typically sends the distribution center and buyer which of the following pieces of information? (Choose every correct answer.)
List of items in the shipment,Advanced shipping notice
What is the most direct supply chain in a simple economy?
Manufacturer to consumer
Which entities must a firm's sales department work with before making promises about product delivery? (Choose every correct answer.)
Manufacturers,Distributors,Fulfillment centers
Which of the following outcomes are associated with using routing and scheduling systems to manage shipment of merchandise from distribution centers to stores? (Choose every correct answer.)
Maximization of vehicle usage,More accurate estimates of arrival time of merchandise,More efficient routes for deliveries
Which of the following describes the use of a wireless network and portable devices that receive demand notifications to provide a speedy response?
Mobile task management
Which of the following could be considered a credible commitment?
Monetary investment
When a customer purchases merchandise, it triggers a flow of information that will eventually reach which elements of the supply chain? (Choose every correct answer.)
Product manufacturers,Suppliers of raw materials,Distribution centers
The flow of information between buyer and manufacturer (Flow 3) usually communicates which of the following? (Choose every correct answer.)
Promotional events,Price negotiations,Orders for new merchandise
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RFID tags
Which of the following activities take place at distribution centers? (Choose every correct answer.)
Receipt of goods,Shipment of goods,Storage of goods
What type of information is typically communicated in the information flow from the store to the buyer?Â
Sales information
Information communicated from the store to the manufacturer typically includes which of the following? (Choose every correct answer.)
Sales transaction data,Automatic reorders
Which of the following are activities that require open communication between supply chain partners? (Choose every correct answer.)
Sharing information,Coordinating deliveries,Working out sales predictions
Which type of economy is best suited to a direct, manufacturer-to-consumer supply chain?
Simple
Distribution centers use computers to plan delivery truck routes that take into consideration which of the following? (Choose every correct answer.)
The condition of the roads that day,Where retail outlets are located
Which of the following happens as participants in a marketing channel add value to a product?
The cost of the product increases.
One important factor in building a successful supply chain is that all parties commit to the task. Which of the following is an example of a credible commitment on the part of a firm?
The firm invests in computer software to improve information flow to suppliers.
To whom are a lump sum and royalties paid when a franchise opens?
The franchisor
In most instances, who decides where merchandise will be delivered when it is shipped from the manufacturer?
The retailer
What are traditional methods for delivering orders directly to customers from fulfillment centers? (Choose every correct answer.)
The retailer's trucks,The mail
When a customer purchases merchandise, what event causes information to begin moving through marketing channels?
The sales associate scans the UPC for the product the customer is purchasing.
The information flowing from the store to the distribution center typically includes which of the following? (Choose every correct answer.)
The store's inventory status,Delivery coordination information
Which statement in true about business relationships in supply chains?
They are based on meeting each other's needs.
Which of the following are true of distribution centers? (Choose every correct answer.)
They are better equipped than stores to prepare merchandise for sale.,They are less expensive space options than retail stores.
Direct store delivery works well for retailers that have which of the following characteristics? (Choose every correct answer.)
They sell perishable goods.,They like to be the first to sell the latest products.,They have only a few outlets.
Where do fulfillment centers ship goods?
To consumers
What is a retailer's primary consideration when considering which distribution system to use?
Total cost of each system
Which of the following is a franchisor typically responsible for?
Training new managers
Merchandise is marked with a black-and-white series of lines to indicate the item's manufacturer, description, packaging, and promotions. What is the name of these lines?
UPC code
Which of the following is an example of horizontal channel conflict?
Walmart is often accused of putting local discount stores out of business when it comes to a new town.
Marketing channels include which of the following? (Select all that apply.)
Warehouses,Stores
What is the first decision to be made when considering merchandise flow?
Where the merchandise will go
RFID tags Blank______.
act as passive tracking devices
Each business that is part of a marketing channel Blank______.
adds value to the product
Channel conflict is more likely to be minimized when channels Blank______.
are closely aligned
When marketing channels are closely aligned, conflicts Blank______.
are less likely
A marketing is comprised of a number of entities, each performing a specialized role.
channel
When a large retailer such as Costco has substantial leverage with suppliers and threatens to stop carrying certain brands unless they adhere to its demands regarding prices, conditions, and delivery of goods, it exhibits power.
coercive
A strong relationship cannot develop among supply chain members unless they have Blank______.
common goals
Channel conflict arises because supply chain members sometimes have Blank______.
conflicting goals
In a Blank______, members of the channel pursue their own goals and maximize their own profits, regardless of the effect on other channel members.
conventional marketing channel
In a(n) Blank______ vertical marketing system, a firm owns and controls multiple segments of its supply chain.
corporate
Chain stores that use Blank______ can carry less merchandise in each retail outlet.
distribution centers
In a marketing channel, the sales department must coordinate delivery with Blank______.
distribution centers
A center is a facility where goods are received, stored, and shipped to company stores.
distributive
Retailers that rely on their vast experience and knowledge to decide how to market a particular supplier's products without input from the supplier are exerting power.
expert
Someone who purchases the right to operate a retail outlet using a previously developed and supported name and format is called a .
franchisee
Some companies expand successful retail businesses by entering into contracts that give others the right to operate businesses with the same name and format. This is called Blank______.
franchising
A(n) Blank______ center is similar to a distribution center, but instead of shipping to stores, it ships directly to customers.
fulfillment
When supply chain members share common Blank______, they are incentivized to combine their strengths and less likely to hinder each others' achievement within the relationship.
goals
Which type of channel conflict occurs when two electronics stores that sell Samsung TVs engage in a price war?
horizontal
To learn more about their customers, manufacturers often try to engage directly with customers on their websites. This allows manufacturers to become less dependent on retailers for customer insights. These manufacturers are seeking to limit the Blank______ power held by the retailers.
information
A retailer that decides to withhold from a supplier important details about a consumer goods market is exerting power.
informational
In a Blank______ relationship, the supply chain members are partners who intend to maintain the relationship for quite some time and invest in ventures that will be profitable for all involved.
strategic
Another term for marketing channel management is Blank______ management.
supply chain
Which of the following retailers is least likely to use a distribution center?
A florist
Which statement about marketing channels is true?
A marketing channel may be a combination of a direct channel and an indirect channel.
Which type of inventory system involves delivery of smaller amounts of merchandise more often?
Just-in-time
What is the first step in the merchandise flow channel?
Manufacturer
Which of the following factors cause fulfillment centers to operate a little differently when processing online orders than orders shipped to stores? (Check all that apply.)
Orders arrive from customers one at a time.,Orders are sent out in relatively small quantities.
Many retailers want to sell Apple products in their stores because they feel it boosts their reputation to be associated with such a popular luxury brand. This illustrates what kind of power?
Referent
Which supply channel partners make merchandise flow directly to the customer? (Choose every correct answer.)
Retail store,Fulfillment center
Which of the following intermediaries are included in indirect marketing channels? (Check all that apply.)
Retailer,Merchandise wholesaler
Which of the following are advantages of using a distribution center? (Choose every correct answer.)
Retailers no longer have to make separate sales forecasts for each individual store.,Retailers can make lower inventory investments.,Retailers are less likely to overstock or understock merchandise.
Manufacturers may offer discounts to retailers that run special promotions featuring the manufacturer's products. What type of power does this demonstrate?
Reward
A contract between a manufacturer and a retailer may specify that the retailer must feature the manufacturer's products in order to receive certain discounts or allowances. The contract gives the manufacturer Blank______ power to require the retailer to take the agreed-upon actions.
legitimate
An advanced shipping notice (ASN) is typically sent during Flow 6, which is the communication from Blank______.
manufacturer to distribution center and buyer
The integration of suppliers, manufacturers, warehouses, stores, and transportation intermediaries is called Blank______ management.
marketing channel
Using demand notifications to notify sales associates who can physically pull an item from store shelves and verify its availability is part of task management.
mobile
In the management of market channels, a strategic relationship is also known as a(n) Blank______.
partnering relationship
A large grocery store chain insists that its suppliers stop packaging their bagels in plastic wrap, and they comply. This is an example of Blank______.
power within a marketing channel
Just-in-time inventory systems are also referred to as Blank______ inventory systems.
quick response
When supply chain members realize that their goals and success are linked to others on the same team, they develop deeper long-term Blank______.
relationships
Offering to buy more of a product if a manufacturer lowers its wholesale price is an example of power.
reward
The flow of information (Flow 5) that typically communicates retail deliveries and inventory status is from Blank______.
store to distribution center
Merchandise that sells well needs to be reordered frequently. This is an example of Flow 4, which involves communication from Blank______.
store to manufacturer
Point-of-sale terminals record purchase information and electronically send it in a flow of information that initially travels from Blank______ to Blank______.
the corporation's stores; buyers at corporate headquarters
A distribution center primarily coordinates Blank______.
the transportation and storage of merchandise
To minimize conflict, each member of the supply chain should Blank______ what drives the other members.
understand
A TV manufacturer and one of its authorized retailers have a disagreement about the appropriate retail prices for its televisions. This is an example of Blank______ channel conflict.
vertical
Generally, relationships in supply chains exist because the parties ___.
want or need something from one another
Manufacturers make products and sell them to Blank______, who resell the merchandise to retailers.
wholesalers
A direct marketing channel sells a product from a manufacturer to a consumer Blank______.
without a retailer
