mktg 351 ch 14 test questions

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

The Limited, which produces and retails clothing products in a coordinated channel, is an example of a(n)

Corporate VMS

Select the greatest advantage of horizontal channel integration.

Efficiencies in advertising, marketing research, and purchasing are increased.

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

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

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

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

The supply chain includes

all entities that facilitate product distribution

The marketing channel of producer to retailer to consumer is most likely to be used by producers of which of the following products?

automobiles

The Wicks 'N Sticks candle and gift marketing organization has a(n) ___________ vertical marketing system arrangement with its franchised retail store operations.

contractual

The Home Depot is trying to reduce transportation, information management, and administrative costs. To accomplish this goal, channel members need to

cooperate and accommodate one another's needs

The driving force behind marketing channel decisions should be

customer satisfaction

Where do supply chains start?

customers

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

A channel of distribution is defined as a group of individuals and organizations that

directs the flow of production from producers to customers

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

Gateway Computer makes computers available through its own stores, its toll-free telephone line, and a website. This is an example of

dual distribution

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

The three major levels of intensity at which a company can choose to distribute its products are _____ distribution.

exclusive, selective, and intensive

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

An independent business that takes title to products and carries inventories is a(n)

industrial distributor

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

Producers of convenience products such as soft drinks, toothpaste, and breath mints are most likely to use _____ distribution.

intensive

Sales are most likely to have a direct relationship to product availability for products that use _____ distribution.

intensive

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.

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)

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

Most marketing channels have marketing intermediaries. A marketing intermediary's role is to

link producers to other middlemen or to consumers

If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are

long-term commitments

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)

manufacturer's agent

A group of organizations and individuals that directs the flow of products from producers to the ultimate consumers is called a

marketing channel

What links producers to consumers through the purchase and reselling of products or contractual agreements?

marketing intermediaries

Eliminating a wholesaler from a marketing channel will

not eliminate the functions performed by that wholesaler.

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

The order-processing task that involves verifying product availability, checking prices and customer credit ratings, and filling orders is

order handling

What are the three primary tasks of order processing?

order handling, order entry, and order delivery

Marketing channels create three types of utility for consumers including

place, time, and possession

Which of the following is the most commonly used channel for distributing business products?

producer, organizational buyer

Nationally distributed consumer convenience products are most likely distributed through which of the following channels?

producer, wholesaler, retailer, consumer

Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following channels?

producers, retailers, consumers

Consumers receive the benefits of place utility when

products are available in locations where consumers want to buy them.

When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a

retailer

Which of the following is most likely to be a product stocked by an industrial distributor?

screws

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

Fragile products that require special handling are more likely to be distributed through

shorter channels

Long-term partnerships among channel members working together to reduce inefficiencies, costs, and redundancies in the entire marketing channel is called

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

Possession utility is best described as

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

Order processing is defined as

the receipt and transmission of sales order information

Channel decisions are important to marketers mostly because

they involve long-term commitments and affect customer accessibility

Having products available when the customer wants them is called

time utility

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

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