Question 1

In the four Ps of marketing, place refers to all the activities required to get the right product to the right customer when that customer wants it.

Accepted Answer

True

Question 2

Marketing channel management adds value because it gets products to customers efficiently, quickly, and at low cost.

Accepted Answer

True

Question 3

A distribution center and a fulfillment center are one and the same.

Accepted Answer

False

Question 4

Marketing channel management and supply chain management are virtually the same.

Accepted Answer

True

Question 5

In a direct marketing channel, there are no intermediaries between the buyer and the seller.

Accepted Answer

True

Question 6

Radio frequency identification (RFID) tags automatically transmit information about a container\'s contents or individual products.

Accepted Answer

True

Question 7

Quick response (QR) inventory systems allow retailers to maximize their inventory holdings.

Accepted Answer

False

Question 8

Marketing channel relationships evolve when the parties have common goals.

Accepted Answer

True

Question 9

Conflicts within a supply chain tend to be more pronounced when the members are part of a corporate vertical marketing system.

Accepted Answer

False

Question 10

Universal product codes (UPCs) are used to describe products for inventory taxation purposes.

Accepted Answer

False

Question 11

Retailers generally have no prior knowledge of the merchandise they will be receiving from suppliers in any particular shipment.

Accepted Answer

False

Question 12

When a firm is just starting out or entering a new market, it doesn\'t typically have the option of designing the best marketing channel structure.

Accepted Answer

True

Question 13

When manufacturers such as Pampered Chef sell directly to consumers, they perform both production and retailing activities.

Accepted Answer

True

Question 14

Distribution centers are always operated by distribution specialists.

Accepted Answer

False

Question 15

Wholesalers are often used in an indirect marketing channel.

Accepted Answer

True

Question 16

When two competing retailers have a disagreement, it is an example of a horizontal channel conflict.

Accepted Answer

True

Question 17

The vertical marketing system that exhibits the most formalization and control is the corporate vertical marketing system.

Accepted Answer

True

Question 18

When Walmart threatens to punish or punishes the other channel member for not undertaking certain tasks, such as if it were to delay payment for a late delivery, this is an example of expertise power.

Accepted Answer

False

Question 19

The computer-to-computer exchange of business documents from a retailer to a vendor and back is referred to as vendor-managed inventory (VMI).

Accepted Answer

False

Question 20

One reason retailers are reluctant to use distribution centers is that retail store space is typically much less expensive than space at a distribution center, so it is more cost-effective to store merchandise and get it ready for sale at the retail store rather than at a distribution center.

Accepted Answer

False

Question 21

Sophie made pies and sold them from her food truck to local businesses. This is an example of a(n)

Accepted Answer

A. direct marketing channel.

Question 22

Which element of the marketing mix specifically deals with supply chain management?

Accepted Answer

C. place

Question 23

Students of marketing often overlook or underestimate the importance of place in the marketing mix simply because

Accepted Answer

A. it happens behind the scenes.

Question 24

In marketing\'s four Ps, place refers to all activities required to get

Accepted Answer

B. the right product to the right customer when that customer wants it.

Question 25

Dawn works for a firm that buys products directly from the manufacturer and resells them to retailers, who then sell the products to consumers. Dawn works for a

Accepted Answer

D. wholesaler.

Question 26

Stores like Home Depot and Costco act as wholesalers when they

Accepted Answer

D. sell to contractors or restaurant owners.

Question 27

When Costco sells to consumers directly, it acts as a _______; when it sells to other businesses, such as a restaurant owner, it acts as a _______.

Accepted Answer

C. retailer; wholesaler

Question 28

A(n) _______ is used in the shipment of products directly to customers.

Accepted Answer

A. fulfillment center

Question 29

Naomi knows she has to order her store\'s Christmas holiday merchandise in April to ensure delivery before the holiday season. Naomi is concerned with the supply chain management goal of

Accepted Answer

A. providing products at the right time.

Question 30

A ___________ program is a promotional strategy that encourages people to pass along a marketing message to other potential consumers.

Accepted Answer

C. virtual marketing

Question 31

A ________ is a facility for the receipt, storage, and redistribution of goods to company stores.

Accepted Answer

B. distribution center

Question 32

A distribution center is typically operated by

Accepted Answer

C. retailers, manufacturers, or distribution specialists.

Question 33

Having no intermediaries between the buyer and seller is a defining characteristic of a(n) _______ marketing channel.

Accepted Answer

E. direct

Question 34

In a(n) _______ marketing channel, one or more intermediaries work with manufacturers to provide goods and services to customers.

Accepted Answer

A. indirect

Question 35

Trisha makes purses out of old blue jeans and sells them to customers at local craft fairs. What type of marketing channel does this represent?

Accepted Answer

D. direct

Question 36

A local furniture store buys furniture from various manufacturers and resells the furniture to its customers. What type of marketing channel does this represent?

Accepted Answer

C. indirect

Question 37

When a customer purchases a smartphone at Best Buy, all of the following information flows in the supply chain are started except

Accepted Answer

C. the purchase is added to the customer\'s purchasing habit records.

Question 38

Steven managed an auto parts store in the 1990s. At that time, stockoutsâfailure to have the parts auto mechanics needed to do their work that dayâincreased the likelihood of the mechanics becoming customers of competing auto supply stores. To avoid this problem and keep his business customers, Steven most likely

Accepted Answer

D. stockpiled inventory, adding to the cost of providing auto parts.

Question 39

In addition to merchandise and payments, information flows throughout a supply chain. All of the following statements are a good characterization of the flow of information in a supply chain except

Accepted Answer

D. customers will send and receive information from stores and manufacturers.

Question 40

Typically, manufacturers and retailers exchange business documents through a(n) __________ system, the computer-to-computer exchange of business documents from a retailer to a vendor and back.

Accepted Answer

B. electronic data interchange

Question 41

Flora is frustrated with her company\'s supply chain management information system. She wants to be able to receive sales data, initiate purchase orders, send and receive invoices, and receive returned merchandise documentation. Flora needs a(n)

Accepted Answer

B. electronic data interchange system.

Question 42

Today, when a customer orders merchandise from an online vendor, the vendor usually sends an immediate order confirmation message by e-mail. Usually within a day or two, a second message arrives stating that the order is in the mail. This second message is a type of

Accepted Answer

C. advanced shipping notice.

Question 43

Roland has just received notification from a vendor that his clothing merchandise order has been processed and dispatched. Roland has just received a(n)

Accepted Answer

C. advanced shipping notice.

Question 44

In vendor-managed inventory systems,

Accepted Answer

E. retailers send sales information to the manufacturer.

Question 45

All of the following are advantages of using a distribution center except

Accepted Answer

E. customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center.

Question 46

All of the following are activities carried on in a distribution center except

Accepted Answer

C. distributing paychecks and pay stubs for retail employees.

Question 47

Ted is glad his company finally converted to an RFID system. Now, he no longer needs to go through all the new goods to make sure what they ordered was what they received. Ted is responsible for __________ in his company.

Accepted Answer

A. checking

Question 48

Radio frequency identification tags are

Accepted Answer

D. tiny computer chips that transmit information about a container\'s contents.

Question 49

__________ is when vendors ship merchandise prepackaged in the quantity required for each store to the distribution center.

Accepted Answer

D. Cross-docking

Question 50

In a __________ distribution center, merchandise moves from vendors\' trucks to retailers\' delivery trucks in a matter of hours.

Accepted Answer

C. cross-docking

Question 51

Walmart\'s customers have come to expect to find P&G products in stores, and P&G depends on Walmart to purchase a good portion of its output to sell to its own customers. This scenario represents the first phase of a

Accepted Answer

D. vertical marketing system.

Question 52

Colin has just received a delivery from the company\'s distribution center. He opens the containers and finds the popcorn and snacks are all bar-coded and priced and the package includes an end-of-the-aisle display rack. Colin has received a(n) __________ shipment.

Accepted Answer

D. floor-ready

Question 53

Some retailers require their suppliers to ship merchandise ___________, thus eliminating the time and expense associated with ticketing and marking.

Accepted Answer

A. floor-ready

Question 54

Getting merchandise floor-ready entails

Accepted Answer

B. ticketing and marking.

Question 55

Which of the following is true regarding the ticketing and marking process?

Accepted Answer

B. It is more efficient for a retailer to perform these activities at a distribution center than in its stores.

Question 56

Each time a politician or celebrity writes a book, bookstores can expect at least some customers to want the book, but whether or not it will become a best-seller is less certain. The bookstore\'s primary inventory management challenge is

Accepted Answer

E. having enough books to satisfy customer demands versus the cost of having the inventory.

Question 57

H&M has adopted the inventory management system that delivers less merchandise on a more frequent basis than in traditional inventory systems. The firm gets the merchandise just in time for it to be used in the manufacture of another product or for sale when the customer wants it. This is an example of a ___________ inventory system.

Accepted Answer

B. quick response (QR)

Question 58

Forever 21 has adopted an inventory system that reduces the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller\'s store, available for sale. This increases product availability and lowers inventory investment. These benefits are attributed to the _______ system.

Accepted Answer

C. just-in-time (JIT)

Question 59

At the BMW plant in Spartanburg, South Carolina, rather than use a typical order-to-delivery process, it has suppliers deliver parts every four hours when the plant is in operation. BMW uses a ______ inventory control system.

Accepted Answer

C. just-in-time (JIT)

Question 60

Because manufacturers with JIT systems produce merchandise closer to the time of sale, they can

Accepted Answer

B. reduce inventories needed to satisfy retailers\' demand.

Question 61

Especially in the fashion industry where styles and trends change rapidly, a quick response system can

Accepted Answer

D. align deliveries more closely with actual sales.

Question 62

A recent innovation by Amazon, the Vendor Flex program, seeks to lower overall transportation costs but also creates new forms of channel conflict with competitors. As a partner in the Vendor Flex program, P&G agreed to allow Amazon to build fulfillment centers within P&G\'s own warehouses, thus helping to eliminate some of the costs of transporting P&G\'s products to Amazon\'s fulfillment centers. Believing that the program was giving its competitor Amazon an unfair advantage, Target reacted vigorously, moving all P&G products from prominent end-cap positions in its stores to less prestigious and less visible locations. Target also stopped using P&G as its primary source of advice for planning merchandising strategies within each category. This is an example of ____________ channel conflict.

Accepted Answer

A. horizontal

Question 63

The Stanley company wants Home Depot to carry all its tools but not the tools of its competitors so that Stanley can maximize its sales. But Home Depot carries a mix of tool brands so it can maximize the sales in its tool category. This misalignment of goals will likely lead to a ________ channel conflict.

Accepted Answer

E. vertical

Question 64

Marketing channels and supply chains comprise various buying entities that form relationships with one another. The basic motivating factor in these interactions is

Accepted Answer

C. each party wants something from the others.

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