question

T/F: A marketing channel is a business structure composed of interdependent organizations that reach from the point of product origin to the final consumer.

answer

true

question

T/F: As products move through the marketing channel, channel members provide specialization and division of labor, overcome discrepancies, and provide contact efficiency.

answer

true

question

T/F: A consumer stopped by the convenience store to buy a bag of charcoal briquettes. She only needs one bag, but the manufacturer produces millions of bags. For consumers, the convenience store overcomes a discrepancy of dimensions.

answer

false

question

T/F: Residents of Sobarro, New Mexico, live in an isolated area of the state. Residents must travel two hours to receive medical treatment. Luckily, a physician has just opened a new practice in Sobarro. In this case, the physician has overcome service discrepancies by opening an office close to consumers.

answer

false

question

T/F: Consider a scenario in which there are four manufacturers, no intermediaries, and three consumers. Twelve transactions would be required for each consumer to receive products from each manufacturer. The introduction of one intermediary reduces the required number of transactions to four and demonstrates the idea of contact efficiency.

answer

false

question

T/F: A merchant wholesaler is an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers.

answer

true

question

T/F: Carl represents a manufacturer of floor coverings and gets paid a commission for finding buyers and linking them up with the manufacturer. Carl is an example of a merchant wholesaler.

answer

false

question

T/F: The three basic functions a channel intermediary provides are transactional, logistical, and facilitating functions.

answer

true

question

T/F: The logistical functions performed by intermediaries include physically distributing, storing, sorting, and financing.

answer

false

question

T/F: Harriet Lowe makes children's clothing, which she sells at craft festivals to end users. Lowe does not use channel intermediaries, which means she uses a direct channel.

answer

true

question

T/F: The direct channel is used more often in consumer markets than in business-to-business markets.

answer

false

question

T/F: LoneStar Bar & Grill is a small chain of restaurants that feature marinated steaks. The marinade is so popular that LoneStar sells it at its restaurants and Kroger supermarkets. This is an example of intensive distribution.

answer

false

question

T/F: Metallurgical Designs makes gold and silver charms for necklaces and bracelets. It markets its charms to a few retailers in any one region and promotes them intensively to those retailers. This is an example of intensive distribution.

answer

false

question

T/F: Shopping goods are usually distributed selectively. Consumers are willing to look around for them but may not be willing to search or travel extensively to acquire the product.

answer

true

question

T/F: Exclusive distribution is the most extensive form of market coverage.

answer

false

question

T/F: At one end of the channel relationship continuum is the "arm's-length" relationship.

answer

true

question

T/F: Highly integrated channel relationships are the preferred relationship because there is no large outlay of assets required to keep the channel members all working toward the same results.

answer

false

question

T/F: Integrated channel relationships tend to be more flexible than cooperative relationships.

answer

false

question

T/F: An international consumer products manufacturer requires all of its suppliers to provide the lowest possible cost and to adhere to a just-in-time inventory system. Wholesalers and manufacturers generally yield to the authority of this large manufacturer. This consumer products manufacturer exercises channel power.

answer

true

question

T/F: Reciprocal conflict occurs among channel members on the same level, such as two or more different wholesalers or two or more different retailers that handle the same manufacturer's brands.

answer

false

question

T/F: Many regard vertical conflict as healthy competition.

answer

false

question

T/F: Because distribution creates the same problems whether it is in Ethiopia, Indonesia, or Venezuela, you will find that channel structures and types around the world are very similar to those in the United States.

answer

false

question

T/F: Gray marketing channels assist brand name manufacturers in marketing their products more efficiently.

answer

false

question

T/F: Unlike marketers of physical products, marketers of services do not have to address the question of logistics since services do not require a distribution strategy.

answer

false

question

T/F: When discussing the distribution of services, you will often hear channel members discussing the need to minimize wait times.

answer

true

question

A _____ is a business structure of interdependent organizations that reaches from the point of product origin to the consumer. a. facilitating agency or place member b. marketing mix intermediary c. selective distribution channel d. marketing channel or channel of distribution e. transportation channel or channel of movement

answer

D

question

Jones Soda is positioned as the anti-Coke. In the early years, few mainstream retailers sold Jones Soda. Fans had to get their Jones fix in surf shops, tattoo parlors, and bookstores, adding to the brand's mystique. Jones Soda used its _____ to create a competitive advantage. a. channel ascendancy b. distribution channel c. channel conflict d. channel focus e. vertical integration

answer

B

question

Kayak.com is a company that allows customers to efficiently search databases to find the best airline and hotel deals all over the Web. Kayak does not make bookings but rather provides recommendations for the best travel plans. Travel providers pay Kayak a commission when customers click through to their sites. Kayak.com, travelers, the airlines, and the hotels are all part of a: a. facilitating agency b. marketing mix intermediary c. selective promotion channel d. marketing channel or channel of distribution e. transportation channel or channel of movement

answer

D

question

Marketing channels can achieve economies of scale through: a. overcoming spatial discrepancies b. contact expertise c. specialization and division of labor d. overcoming temporal discrepancies e. overcoming discrepancies of quantity

answer

C

question

Distribution channels aid in overcoming barriers to exchange that are created in the production process by overcoming all of the following types of discrepancies EXCEPT: a. possession b. assortment c. quantity d. spatial e. temporal

answer

A

question

A discrepancy of _____ is the difference between the amount of product produced and the amount an end user wants to buy. a. space b. quantity c. assortment d. accumulation e. possession

answer

B

question

Kraft Foods produces millions of packages of Chips Ahoy cookies each year, but consumers only want to purchase one package at a time. This difference between the amount Kraft produces and the amount a consumer wants to buy is referred to as a: a. discrepancy of quantity b. discrepancy of assortment c. spatial discrepancy d. temporal discrepancy e. discrepancy of possession

answer

A

question

Which of the following is the lack of all the items a customer needs to receive full satisfaction from a product or products? a. Discrepancy of assortment b. Discrepancy of quantity c. Spatial discrepancy d. Temporal discrepancy e. Discrepancy of possession

answer

A

question

McKesson Wholesalers provides healthcare products to pharmacies. It purchases bandages, gauze, antibacterial cream, and ointments from a variety of different manufacturers and resells them to pharmacies so that many of the items a customer might need for a cut will be available in the store. McKesson is aiding consumers by overcoming a: a. spatial discrepancy b. discrepancy of quantity c. discrepancy of assortment d. demand discrepancy e. discrepancy of possession

answer

C

question

Certified Grocers Midwest, Inc., the Chicago-based grocery wholesale cooperative, provides all kinds of meats, cereals, canned and fresh fruits and vegetables, beauty aids, healthcare items, and pet products to the supermarkets in its channel. Certified Grocers is aiding consumers by overcoming: a. spatial discrepancy b. discrepancy of quantity c. discrepancy of assortment d. demand discrepancy e. discrepancy of possession

answer

C

question

A(n) _____ discrepancy is created when a product is produced but a consumer is not ready to purchase it. a. quantity b. supply c. possession d. temporal e. assortment

answer

D

question

Cutter & Buck is a high-end fashion sportswear company. Even though swimwear is a product category that does not sell year-round, its sales remain steady all year because Cutter & Buck sells to wholesale distributors that stock the product. Its wholesale distributors are helping to overcome a(n) _____ discrepancy. a. assortment b. spatial c. possession d. quantity e. temporal

answer

E

question

Vicobello is a major manufacturer of outdoor fountains that are popular in gardens. Even though fountains represent a product category that does not sell year-round due to inclement weather, Vicobello's sales remain steady all year because it sells to wholesale distributors that stock the product. Its wholesale distributors are primarily helping to overcome a(n) _____ discrepancy. a. assortment b. spatial c. possession d. quantity e. temporal

answer

E

question

The difference between the location of a producer and the location of widely scattered markets represents a(n) _____ discrepancy. a. spatial b. temporal c. assortment d. quantity e. ownership

answer

A

question

YKK slide fasteners (zippers) are made in Macon, Georgia, yet manufactures all over the world use zippers to manufacture, clothes, luggage, shoes, and other items. Wholesalers around the world primarily help to overcome a(n) _____ discrepancy. a. creation b. temporal c. assortment d. spatial e. ownership

answer

D

question

Marketing channels make distribution simpler by reducing the number of transactions required to get products from manufacturers to consumers. This is called: a. forward integration b. contact efficiency c. elimination of temporal discrepancies d. sorting e. reciprocity

answer

B

question

When an intermediary in the channel of distribution owns the merchandise and controls the terms of the sale, this is referred to as: a. complete control b. exclusive distribution c. taking title d. contact efficiency e. economies of scale

answer

C

question

The major characteristic that is used to differentiate among types of intermediaries is whether they: a. install exchange barriers such as location, time, and quantity b. create specialization of labor c. create economies of scale d. take title to the products they sell e. raise profit margins for independent middlemen

answer

D

question

Retailers and merchant wholesalers are examples of intermediaries that: a. take title to a product b. create temporal and spatial discrepancies c. use consumer promotions d. do not benefit from any economies of scale e. are accurately described by all of these statements

answer

A

question

Which of the following intermediaries sell mainly to consumers? a. Retailers b. Merchant wholesalers c. Agents d. Brokers e. Specialists

answer

A

question

A(n) _____ is an institution that buys goods from manufacturers, takes title to these goods, and resells them to businesses, government agencies, and/or other wholesalers or retailers. a. merchant wholesaler b. agent c. drop shipper d. channel cooperative e. marketing cooperative

answer

A

question

W.W. Grainger, Inc., is one of the world's largest business-to-business distributors of equipment, component parts, and supplies in the United States and Canada. It has ownership title to over 220,000 products, which are stocked in one national and nine regional warehouses to guarantee product availability and quick service to the many manufacturers who are its customers. W.W. Grainger is an example of a(n): a. agent or broker b. merchant wholesaler c. retailer d. consumer market e. hypermarket intermediary

answer

B

question

Long Island Lefty provides retailers and other businesses with the latest and the best products for left-handed consumers. It buys all types of products from a variety of manufacturers and stores the merchandise in its New York warehouse until purchased by buyers. Long Island Lefty does not sell to end users and is an example of a(n): a. agent or broker b. merchant wholesaler c. retailer d. consumer market e. hypermarket intermediary

answer

B

question

Agents and brokers: a. have a great deal of control and risk invested in the goods b. only represent manufacturers in sales situations c. have a great deal of input on the terms of the sale d. generally are on salary with the manufacturer e. do not take title to merchandise

answer

E

question

_____ are intermediaries who facilitate the sales of a product from producer to end user by representing retailers, wholesalers, or manufacturers and providing little input as to the terms of the sale. a. Marketing facilitators b. Channel cooperatives c. Agents and brokers d. Merchant wholesalers e. Channel functionaries

answer

C

question

Generally, _____ determine what type of intermediary a manufacturer should use: a. product characteristics, buyer consideration, and market characteristics b. only internal environmental characteristics c. competitive conditions and government regulations d. all controllable marketing factors e. only noncontrollable environmental factors

answer

A

question

The three basic functions channel intermediaries perform are: a. transactional, logistical, and facilitating b. contacting, negotiating, and ownership c. promoting, distributing, and bulk-breaking d. assorting, accumulating, and allocating e. financing, mediating, and storing

answer

A

question

Which of the following is a transactional function performed by intermediaries? a. Sorting b. Researching c. Risk taking d. Physically distributing e. Storing

answer

C

question

Transactional channel functions include all of the following activities EXCEPT: a. contacting buyers b. promoting the products to be sold c. taking the risks associated with product inventories d. negotiating the sale e. physical distribution and sorting

answer

E

question

Which of the following is a logistical function performed by intermediaries? a. Sorting b. Negotiating c. Financing d. Risk taking e. All of these choices

answer

A

question

Marketing channels perform all of the following logistical activities EXCEPT: a. sorting b. storing c. physically distributing d. risk taking e. breaking bulk

answer

D

question

All of the following are sorting activities EXCEPT: a. assorting b. accumulation c. sorting out d. allocation e. possession

answer

E

question

Breaking bulk at the wholesale level is called: a. allocating b. accumulation c. storing d. downsizing e. grading

answer

A

question

With respect to the sorting logistical function, _____ is the combining of similar stocks into a larger homogeneous supply. a. sorting out b. accumulating c. allocating d. breaking bulk e. assorting

answer

B

question

Which of the following are examples of facilitating functions performed by wholesaling intermediaries? a. Sorting and storing b. Risk taking and promotion c. Assorting, accumulating, grading, and allocating d. Researching and financing e. Financial management and storing

answer

D

question

_____ is the efficient and cost-effective forward and reverse flow and storage of goods, services, and related information into, through, and out of channel member companies. a. Disintermediation b. Logistics c. Materials handling d. Intermodal transportation e. Contract logistics

answer

B

question

_____ describes the process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption. a. Contract logistics b. Logistics c. Cross-docking d. Disintermediation e. Channel facilitation

answer

B

question

Serenity is a manufacturer of outdoor fountains that are popular in gardens. Even though fountains represent a product category that does not sell year-round due to inclement weather, Serenity's sales remain steady all year because it sells to wholesale distributors that stock the product. Serenity sells to wholesale distributors that perform _____ functions for the manufacturer. a. financial b. transactional c. facilitating d. logistical e. promotional

answer

D

question

One configuration of a marketing channel entails producers selling to consumers with no intermediaries involved. This is called a: a. limited distribution system b. conventional channel c. vertical marketing system d. reciprocal channel e. direct channel

answer

E

question

The only way that Jim Keeler in New Mexico can get a box of Carolyn Popwell's Festive Holiday Truffles from Washington is to order it through the mail. Popwell, who makes the candy by hand, uses a(n) _____ exclusively. a. exclusive distribution system b. conventional channel c. vertical marketing system d. reciprocal channel e. direct channel

answer

E

question

All of the following are typical channel members in marketing channels for consumer products EXCEPT: a. retailers b. agent/brokers c. industrial distributors d. producers e. wholesalers

answer

C

question

Vutek manufactures printing machines used to print high-resolution graphics for billboards, bus cards, banners, and posters. For distribution, you would expect Vutek to use a: a. network of facilitating agents b. horizontally integrated channel c. reciprocal channel d. direct channel e.vertical marketing system

answer

D

question

Centigon is a manufacturer of customized armored vehicles for military, private, presidential, and commercial uses. Each armored vehicle is designed to deliver security on the road while also achieving optimum levels of performance and comfort. For distribution, you would expect Centigon to use a: a. network of facilitating agents b. horizontally integrated channel c. reciprocal channel d. direct channel e. vertical marketing system

answer

D

question

Companies selling standardized items of moderate or low value to other businesses (not to consumers) often use: a. retailers b. industrial distributors c. wholesalers d. bulk breakers e. industrial resellers

answer

B

question

_____ distribution occurs when a producer selects two or more different channels to distribute the same products to target markets. a. Selective b. Intensive c. Dual d. Contractual e. Cumulative

answer

C

question

Customers can purchase Hewlett-Packard computers from retail stores like Best Buy and Office Depot, online directly from HP, and through various catalogs. HP is using a(n) _____ distribution arrangement. a. intensive b. multiple c. exclusive d. cumulative e. aggregated

answer

B

question

Which of the following enables a company to use another manufacturer's already established channel? a. Strategic channel alliances b. Relationship channels c. Reverse channels d. Multiple distribution systems e. Nontraditional channelization

answer

A

question

Selfridges is the second-largest department store in Great Britain. It works with House of Frasier, one of its competitors, to reduce operating costs by sharing channels of distribution to ship goods from 1,500-plus suppliers. Selfridges and House of Frasier are engaged in: a. vertical conflict b. an integrated supply chain c. a strategic channel alliance d. an information-based distribution channel e. a distribution cooperative

answer

C

question

When Delphi-Grundig, a manufacturer of state-of-the-art car radios, decided to expand its marketing efforts into countries in which its products are not currently available, it did not have the time or resources to spend on developing new channels of distribution. Delphi-Grundig should consider a(n): a. industrial distributor b. franchising system c. reverse channel d. strategic channel alliance e. channel cooperative

answer

D

question

Which of the following statements concerning how market factors affect channel decisions is true? a. Industrial customers tend to buy in larger quantities and require more customer service. b. Geographically concentrated target markets should be served with an indirect sales force. c. Widely dispersed markets require fewer intermediaries. d. New firms in extremely competitive markets will be more successful if they use indirect channels. e. A very large market requires fewer intermediaries.

answer

A

question

Canesta Company has developed a virtual keyboard out of light to be used with cell phones and PDAs. The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user's digital device. When introduced to the market, the device will sell for less than $50. If, in choosing its channel, Canesta is most concerned about the life cycle of the device, then its choice of channels will largely be influenced by: a. factors of production b. customer characteristics c. ownership factors d. product factors e. market factors

answer

D

question

Canesta Company has developed a virtual keyboard out of light to be used with cell phones and PDAs. The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user's digital device. When introduced to the market, the device will sell for less than $50. If, in choosing its channel, Canesta is most concerned about its lack of financial, managerial, and marketing resources to support the product's introduction, then its choice of channels will largely be influenced by: a. factors of ownership b. market factors c. producer factors d. product factors e. internal environmental characteristics

answer

C

question

_____ is distribution aimed at maximum market coverage. It is used for many convenience goods and supplies that need to be available in every outlet where the potential customer might want to buy them. a. Selective distribution b. Channel franchising c. Intensive distribution d. Horizontal channeling e. Exclusive distribution

answer

C

question

Chewing gum and soft drinks are sold in grocery stores, service stations, convenience stores, drugstores, discount stores, and motel vending machines. This is a an example of a(n) _____ distribution strategy. a. exclusive b. reciprocal c. selective d. horizontal e. intensive

answer

E

question

Which of the following manufacturers most likely uses intensive distribution? a. M&M's candies b. Jen-Weld windows c. Calloway golf clubs d. Rollerblade in-line skates e. Smith & Wesson firearms

answer

A

question

_____ distribution is achieved by screening dealers to eliminate all but a few in any single geographic area. Shopping goods and some specialty products that consumers are willing to search for are sold this way. a. Intensive b. Selective c. Exclusive d. Dual e. Controlled

answer

B

question

Husqvarna Viking manufactures sewing machines. The company carefully screens its dealers to ensure a quality dealer image and service ability. Only a few dealers are chosen in any single geographic area. This is an example of _____ distribution. a. dual b. intensive c. exclusive d. selective e. controlled

answer

D

question

Canesta Company has developed a virtual keyboard out of light to be used with cell phones and PDAs. The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user's digital device. When introduced to the market, the device will sell for less than $50. What level of distribution intensity should the company use? a. Exclusive b. Controlled c. Extensive d. Reciprocal e. Selective

answer

E

question

Polo brand apparel is only available in fine department stores or from Polo retail stores. Which distribution strategy has Polo adopted? a. Extensive b. Intensive c. Premium d. Selective e. Pioneering

answer

D

question

Which level of distribution intensity is the most restrictive and entails establishing only one or a few dealers within a given geographic area? a. Selective b. Intensive c. Exclusive d. Dual e. Premium

answer

C

question

Rolex is an expensive brand of watches. The company has a policy of only having one or two dealers within a given large geographic area. Buyers of Rolex watches will travel extensively to acquire just the right watch. This is an illustration of which level of distribution intensity? a. Exclusive b. Intensive c. Selective d. Reciprocal e. Premium

answer

A

question

Caterpillar, the manufacturer of tractors and other earthmoving equipment, has an extremely high market share, which means customers seek the dealers out regardless of where they are. There are approximately 50 Caterpillar dealers in the United States--one in each state. From this information, you can surmise that Caterpillar uses _____ distribution. a. selective b. premium c. intensive d. exclusive e. inclusive

answer

D

question

Which of the following types of distribution channel relationships is considered to be temporary? a. Arm's length b. Functional c. Cooperative d. Hierarchical e. Integrated

answer

A

question

This summer, college student Pat is planning on selling kites at Panama City Beach. He has found some suppliers and has preordered all of the kites he thinks he can sell this summer. What type of a distribution channel relationship does Pat have with his suppliers? a. Arm's length b. Functional c. Cooperative d. Hierarchical e. Integrated

answer

A

question

With the _____ channel relationship, both parties retain their independence and pursue their own interests while attempting to benefit from the goods or services provided by the other. a. arm's-length b. functional c. cooperative d. hierarchical e. integrated

answer

A

question

_____ distribution channel relationships are situations where one company, or several companies acting as one, performs all channel functions. a. Arm's-length b. Functional c. Cooperative d. Hierarchical e. Integrated

answer

E

question

One of the earliest, largest, and most famous examples of vertical integration was the Carnegie Steel Company. The company controlled not only the mills where the steel was manufactured but also the mines where the iron ore was extracted, the coal mines that supplied the coal, the ships that transported the iron ore, and the railroads that transported the coal to the factory. Carnegie Steel had a(n) _____ channel relationship. a. arm's-length b. functional c. cooperative d. hierarchical e. integrated

answer

E

question

_____ channel relationships include nonequity agreements such as franchising and licensing as well as equity-based joint ventures and strategic alliances. a. Arm's-length b. Functional c. Cooperative d. Hierarchical e. Integrated

answer

C

question

Which channel relationship is less ambiguous than an arm's-length relationship but without the longer-term and/or capital investment required to achieve full integration? a. Negotiated b. Functional c. Cooperative d. Hierarchical e. Intermediate

answer

C

question

In 1935, Howard Johnson teamed up with Reginald Sprague to establish the first modern restaurant franchise. Their idea was to let independent operators use the same name, food, supplies, logo and even building design in exchange for a fee. In terms of the type of channel relationships established, this nonequity agreement would require a _____ relationship. a. negotiated b. functional c. cooperative d. hierarchical e. segregated

answer

C

question

Some countries, such as the Peoples Republic of China and to some extent India, require foreign companies to form joint ventures with domestic firms in order to enter a market. This requirement often forces technology transfers and managerial control to the domestic partner. These types of equity agreements also require the establishment of a(n) _____ channel relationship. a. arm's-length b. functional c. cooperative d. hierarchical e. integrated

answer

C

question

The capacity of a particular marketing channel member to control or influence the behavior of other channel members is known as: a. channel power b. channel conflict c. channel control d. channel dominance e. channel inversion

answer

A

question

Wal-Mart is the largest retailer in the world, and many consumer packaged-goods manufacturers like Kraft have offices in Bentonville, Arkansas, where Wal-Mart is headquartered. Wal-Mart has the ability to influence manufacturers to lower their prices so that it can deliver on its low-price guarantee to consumers. Wal-Mart possesses: a. channel influence b. channel supremacy c. channel power d. channel exclusivity e. channel clout

answer

C

question

A situation that occurs when one marketing channel member intentionally affects another member's behavior is called: a. channel power b. channel control c. channel conflict d. channel dominance e. channel inversion

answer

B

question

A channel leader is also called a(n): a. intermediary leader b. channel captain c. channel facilitator d. distribution supervisor e. channel gatekeeper

answer

B

question

DeBeers sells most of the diamonds it produces to industry. The company controls over 90 percent of the market and has great power over its distributors. In its marketing channel, DeBeers would be considered a: a. channel authority b. channel member c. channel leader d. channel gatekeeper e. power broker

answer

C

question

Johns Manville is the only manufacturer to offer a complete line of formaldehyde-free fiberglass building insulation, which offers superior energy efficiency in hard-to-reach cathedral ceilings and flat roof cavities; plus it is an excellent sound control for interior floors. As the only manufacturer and patent holder of this revolutionary insulation, Johns Manville has great power over its dealers. It is an example of a: a. channel authority b. channel regulator c. channel captain d. channel gatekeeper e. power broker

answer

C

question

Channel conflict: a. always has an adverse effect on the members of the channel b. is not caused by ideological differences, because such differences would prevent the members from ever operating as a channel c. is often caused by an inability of some channel members to keep up with the changing times d. can appear as either internal or external e. does not occur when multiple distribution channels are used

answer

C

question

Almost a million fans are willing to buy subscriptions to watch Major League Baseball (MLB) games online at MLB.com. That business is worth more than $100 million to MLB. But this online broadcast takes those fans away from the broadcasters that pay MLB hundreds of millions of dollars for the right to carry the games. Which of the following is likely to occur between MLB and broadcast television? a. Horizontal market share b. Lateral channel takeover c. Niche market conflict d. Channel conflict e. Market share conflict

answer

D

question

Honda uses just-in-time manufacturing to build its Odyssey minivans. Five companies that make component parts for the Honda Odyssey relocated to Alabama and states bordering Alabama when Honda announced plans to build a new Odyssey manufacturing plant in Alabama. This relocation in order to provide efficient delivery of goods indicates that Honda is a: a. channel captain b. horizontal integrator c. distribution champion d. distribution ombudsman e. demand maverick

answer

A

question

Channel conflict that occurs among channel members on the same level is known as: a. primary conflict b. organic conflict c. internal conflict d. horizontal conflict e. vertical conflict

answer

D

question

Horizontal channel conflict occurs most often when manufacturers practice: a. dual or multiple distribution b. trade loading c. promotional pricing d. direct distribution e. channel distribution

answer

A

question

Goodyear tire dealers were hurt financially when Goodyear made the decision to distribute its tires through retailers such as Sears and Walmart in addition to the exclusive dealerships it had established. The conflict that occurred at the retail level is an example of: a. horizontal conflict b. trade loading c. value-added pricing d. exclusive distribution e. channel partnering

answer

A

question

Channel conflict that occurs between different levels in a marketing channel is referred to as: a. horizontal conflict b. primary conflict c. vertical conflict d. secondary conflict e. parallel conflict

answer

C

question

Polo brand apparel can be purchased through fine department stores nationwide. However, Polo apparel can also be purchased through Polo stores, which creates the potential for _____ conflict in the channel of distribution. a. primary b. secondary c. horizontal d. vertical e. parallel

answer

D

question

_____ is the joint effort of all channel members to create a channel that serves customers and creates a competitive advantage. a. Selective partnering b. Direct distribution c. Channel partnering d. Intensive integration e. Closed channel distribution

answer

C

question

_____ occurs when products are distributed through unauthorized marketing channels. a. Black marketing b. Countertrading c. Channel malfeasance d. Gray marketing e. Reverse channeling

answer

D

question

Many large champagne sellers do their own importing and desire to maintain independent price points in different markets. Thus, a bottle of champagne might cost $45 in the United States, while the same bottle might be only 20 euros (about $30) in France. It is often profitable to buy the wine in Europe, typically from an unauthorized distributor, and resell it in the United States. U.S. wine merchants who do so would be engaging in: a. black marketing b. channel malfeasance c. countertrading d. reverse channeling e. gray marketing

answer

E

question

It seems counterintuitive, but Jon Jordan, CEO of Southern Audio Services (SAS) in Baton Rouge, wants to curb the number of dealers who are selling his car speakers. Jordan understands that he can't handpick all his vendors, but he never expected the rise in unauthorized dealers that came with the e-commerce boom. When Jordan decided to look for the SAS name on eBay, he came up thousands of sellers. These eBay sellers are engaging in: a. black marketing b. channel malfeasance c. countertrading d. reverse channeling e. gray marketing

answer

E

question

One thing that sets service distribution apart from traditional manufacturing distribution is that in a service environment: a. production and consumption are simultaneous b. production setbacks can be remedied by using safety stock c. faster modes of transportation can offset service production problems d. service distribution benefits are more tangible e. service distribution has a narrower focus

answer

A

question

Which of the following businesses is most likely to have a problem with distribution because production and consumption of the product occurs simultaneously? a. A company that manufacturers bicycles b. A hair salon c. A retailer that sells mattresses d. A soft drink bottler e. A wholesaler that specializes in athletic equipment

answer

B

question

You are responsible for physical distribution of your company's service and should focus on: a. ensuring the intangibility of the service so that physical distribution becomes a less important factor b. minimizing wait times, managing service capacity, and providing delivery through distribution channels c. making sure production and consumption are simultaneous d. setting quality standards, choosing faster transportation modes, and using safety stock e. customer-oriented order processing and inventory control

answer

B

question

Which of the following is a main area of concern for service distribution? a. Minimizing wait times b. Maximizing sales c. Creating a one-to-one relationship with customers d. Providing easy to use Internet help e. Reducing risk

answer

A

question

Paul operates Kayak.com, a company that allows customers to efficiently search company databases and find the best airline and hotel deals all over the Web. Kayak does not make bookings but rather provides recommendations for the best travel plans. Travel providers pay Kayak a commission for most customers who click through to their sites. Paul wants his users to have as short and sweet an experience on Kayak as possible. Time is of the essence in responding to any customer question, especially in this day where airfare can increase dramatically in just a couple of hours. Paul is devoted to: a. improving service delivery b. maximizing queues c. reducing discrepancies of assortment d. reducing wait time e. managing service capacity

answer

A

question

Refer to R. H. Kurt & Son. Its marketing channel is composed of: a. the distribution, objectives, strategies, and tactics used to move products from the manufacturer to the retailer b. any organization that had a part in moving the product from the distributor to the retailer c. the functions of transportation, storage, inventory control, materials handling, and order processing d. the 41 different manufacturers, R. H. Kurt, the retailers it serves, and their customers e. all organizations in the industry that make it possible for a consumer to buy his or her desired product

answer

D

question

Refer to R. H. Kurt & Son. Customers at retail stores only want one rifle or one scope. They do not want to buy in the quantities the manufacturers need to sell. This _____ is overcome by the marketing channels. a. discrepancy of quantity b. spatial discrepancy c. discrepancy of assortment d. discrepancy of facilitation e. discrepancy of possession

answer

A

question

Refer to R. H. Kurt & Son. When Kurt combines products from 41 different manufacturers into a collection retail buyers want available at one place, it is engaging in: a. a transactional function b. creating an assortment c. a facilitating function d. integrating its promotional functions e. compressed distribution

answer

B

question

Refer to R. H. Kurt & Son. When Kurt solicits an order from a sporting goods store, it engages in a _____ function. a. logistical b. functional c. facilitating d. customerized e. transactional

answer

E

question

Refer to R. H. Kurt & Son. Given the nature of the products carried by Kurt, what level of distribution intensity would be most appropriate? a. Extensive b. Intensive c. Reflexive d. Unitary e. Selective

answer

E

question

Refer to R. H. Kurt & Son. If Kurt wishes to make sure its gunsmith service is profitable, it must consider: a. how it can minimize the time a customer must wait for his or her rifle to be repaired b. how the opening of hunting season will affect demand for its services c. how to maintain an adequate staff d. whether to ship the repaired rifle to the customer or the retailer e. all of these options

answer

E

question

Refer to Redbox. Warner Bros., Blockbuster, Redbox, Walmart, and third-party DVD distributors are part of a: a. distribution cooperative b. marketing mix c. transportation channel d. marketing channel e. logistics system

answer

D

question

Refer to Redbox. Redbox offers DVDs from several production studios, such as Disney, Sony, and Paramount. Consumers can rent from Redbox instead of obtaining the DVD from the various production studios if they want a children's movie from Disney and an action movie from Paramount. Thus, one kiosk provides _____ for both consumers and the production studios. a. contact efficiency b. integration c. synergy d. distribution efficiency e. distribution intensity

answer

A

question

Refer to Redbox. Video stores that distribute DVDs usually also sell popcorn, candy, soft drinks, and entertainment publications. Basically, they overcome discrepancies of quantity and assortment by combining products into collections or assortment that consumers want available in one place. Which channel function does this describe? a. Logistical functions b. Transactional functions c. Facilitating functions d. Purchasing functions e. Secondary functions

answer

A

question

Refer to Redbox. Production studios distribute DVDs in grocery stores, drugstores, discount stores, entertainment stores, and vending machines like Redbox. Which level of distribution intensity does this represent? a. Intensive b. Extensive c. Product focused d. Market focused e. Exclusive

answer

A

question

Refer to Redbox. Production studios are potentially producing _____ among its existing distributors by allowing Redbox to rent their DVDs for $1.00. a. vertical conflict b. cognitive dissonance c. supply management divergence d. horizontal conflict e. disintermediation

answer

D

question

Sampling error

answer

_____ occurs when a sample somehow does not represent the target population.

question

Observation

answer

_____ research depends on watching what people do

question

nonprobability

answer

A _____ sample is any sample in which little or no attempt is made to obtain a representative cross section of the population.

question

probability

answer

A(n) _____ sample is characterized by every element in the population having a known statistical likelihood of being selected.

question

reduced measurement error

answer

All of the following are advantages associated with the use of Internet surveys EXCEPT:

question

secondary

answer

Data previously collected for purposes other than the one at hand are an important source of information as the researcher defines the problem. These data are called ____ date.

question

primary

answer

Information collected for the first time for the purpose of solving a particular problem under investigation is called _____ data.

question

the perceived costs are greater than the projected benefits.

answer

Marketing research should NOT be undertaken when:

question

observation research.

answer

Mystery shoppers engage in a form of:

question

survey research

answer

The most popular method for gathering primary data is _____, in which a researcher interacts with people to obtain facts, opinions, and attitudes.

question

Convenience

answer

_____ products are purchased with little shopping effort. These products typically are purchased regularly, usually with little planning, and require wide distribution.

question

trademark

answer

A _____ is a legal term indicating the owner's exclusive right to use a brand name or part of a brand.

question

brand

answer

A _____ is a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products

question

product

answer

A _____ is everything, both favorable and unfavorable, that a person receives in an exchange. It can be tangible, intangible, a service, an idea, or a combination of these things.

question

private

answer

A(n) _____ brand is one owned by the wholesaler or retailer.

question

product line extension.

answer

Adding additional products to an existing product line in order to compete more broadly in the industry is referred to as:

question

product

answer

The _____ is the starting point in creating a marketing mix

question

individual

answer

When a company uses different brand names for different products, it is using _____ branding.

question

the product name is no longer recognized as the exclusive property of one firm

answer

When a product name becomes generic:

question

Co-branding

answer

Which of the following entails placing two or more brand names on a product or its package?

question

Innovators

answer

_____ are eager to try new ideas and products. They typically have higher incomes, are better educated, and are more cosmopolitan than other categories of adopters.

question

Early adopters

answer

_____ embrace products relatively early in the product life cycle, are likely to be community oriented, and often are opinion leaders themselves.

question

Test marketing

answer

_____ is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.

question

Brainstorming

answer

_____ is a process where a group thinks of as many ways to vary a product or solve a problem as possible without considering the practicality of the ideas.

question

Decline

answer

A long-run drop in sales signals the beginning of which stage in the product life cycle?

question

doubters

answer

All of the following are categories of adopters in the diffusion process of innovations EXCEPT:

question

development

answer

In the _____ stage of new-product development, the technical feasibility of manufacturing the new product is examined as a prototype is produced

question

a good match between the product and market needs

answer

The MOST important factor in successful new-product introduction is:

question

late majority

answer

The _____ adopt a product because most of their friends have already done so, and their adoption is usually the result of pressure to conform because they rely on group norms.

question

False

answer

Adaptation is the process by which the adoption of an innovation spreads.

question

Supply chain management

answer

_____ coordinates and integrates all of the activities performed by channel members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value.

question

Supply chain integration

answer

_____ occurs when all the firms and business units participating in the supply chain appear as though they are reading from the same script.

question

diversity

answer

All of the following are criteria used to choose a mode of transportation EXCEPT:

question

trade promotions

answer

All of the following are part of a sequence of "source, make, and deliver," EXCEPT:

question

Safety stock

answer

_____ is an extra allotment of inventory that companies sometimes choose to hold in the event that demand spikes, or if forecasts regarding the amount of demand are too low

question

Selective

answer

_____ distribution is achieved by screening dealers to eliminate all but a few in any single geographic area. Shopping goods and some specialty products that consumers are willing to search for are sold this way.

question

Retailing

answer

_____ is defined as all activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use or consumption.

question

contact efficiency

answer

Marketing channels make distribution simpler by reducing the number of transactions required to get products from manufacturers to consumers. This is called:

question

Exclusive

answer

Which level of distribution intensity is the most restrictive and entails establishing only one or a few dealers within a given geographic area?

question

take title to the products they sell

answer

The major characteristic that is used to differentiate among types of intermediaries is whether they:

question

Supply Chain

answer

connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function

question

Supply Chain Managment

answer

management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value

question

Supply Chain Agility

answer

operational strategy focused on creating inventory velocity and operational flexibility simultaneously in the supply chain

question

Supply Chain Orientation

answer

a system of management practices that are consistent with a "systems thinking" approach

question

Supply Chain Integration

answer

when multiple firms or business functions in a supply chain coordinate their activities and processes so that they are seamlessly linked to one another in an effort to satisfy the customer

question

Demand-supply Integration (DSI)

answer

supply chain operational philosophy focused on integrating the supply-management and demand-generating functions of an organization

question

Business Processes

answer

bundles of interconnected activities that stretch across firms in the supply chain

question

Customer Relationship Management Process (CRM)

answer

allows companies to prioritize their marketing focus on different customer groups according to each group's long-term value to the company or supply chain

question

Customer Service Management Process

answer

presents a multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced

question

Demand Management Process

answer

seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each related plans of action prior to actual customer purchasing behavior

question

Order Fulfillment Process

answer

highly integrated process, often requiring persons from multiple companies and multiple functions to come together and coordinate to create customer satisfaction at a given place and time

question

Order Cycle Time

answer

time delay between the placement of a customer's order and the customer's receipt of that order

question

Manufacturer Flow Management Process

answer

concerned with ensuring that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multi-stage production process

question

Supplier Relationship Management Process

answer

supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers

question

Product Development and Commercialization Process

answer

includes the group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms

question

Returns Management Process

answer

enables firms to manage volumes of returned product efficiently while minimizing returns-related costs and maximizing the value of the returned assets to the firms in the supply chain

question

Sustainable Supply Chain Management

answer

supply chain management philosophy that embraces the need for optimizing social and environmental costs in addition to financial costs

question

Outsourcing (contract logistics)

answer

manufacturer's or supplier's use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing

question

Third Party Logistics Company (3PL)

answer

firm that provides functional logistics services to others

question

Fourth-party Logistics Company (4PL or logistics integrator)

answer

consulting-based organization that assesses another's entire logistical service needs and provides integrated solutions, often drawing on multiple 3PLs for actual service

question

Offshoring

answer

the outsourcing of a business process from one country to another for the purpose of gaining economic advantage

question

Nearshoring

answer

transfer of an offshored activity from a distant to a nearby country

question

Public-private Partnerships (PPPs)

answer

Critical to the satisfaction of both company and societal interests and provide a mechanism by which very-large scale problems or opportunities can be addressed

question

Electronic Distribution

answer

distribution technique that includes any kind of product or service that can be distributed electronically, whether over traditional forms such as fiber-optic cable or through satellite transmission of electronic signals

question

Three-dimensional Printing (3DP)

answer

creation of three-dimensional objects via an additive manufacturing (printing) technology that layers raw material into desired shapes

question

Big Data

answer

rapidly collected and difficult-to-process large-scale datasets that have recently emerged, and which push the limits of current analytical capability

question

Cloud Computing

answer

practice of using remote network servers to store, manage, and process data

question

Supply Chain Analytics

answer

data analyses that support the improved design and management of the supply chain

question

Marketing Channel ((channel of distribution)

answer

set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer

question

Channel Members

answer

all parties in the marketing channel who negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer

question

Form utility

answer

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

question

Time Utility

answer

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

question

Place Utility

answer

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

question

Exchange Utility

answer

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

question

Merchant Wholeslaer

answer

institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them

question

Agents and Brokers

answer

wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers

question

Retailer

answer

channel intermediary that sells mainly to consumers

question

Direct Channel

answer

distribution channel in which producers sell directly to consumers

question

Dual Distribution (multiple distribution)

answer

use of two or more channels to distribute the same product to target markets

question

Nontraditional channels

answer

non-physical channels that facilitate the unique market access of products and services

question

Strategic Channel Alliance

answer

cooperative agreement between business firms to use the other's already established distribution channel

question

Gray Marketing Channel

answer

secondary channels that are unintended to be used by the producer, and which often flow illegally obtained or counterfeit product toward customers

question

Reverse Channels

answer

channels that enable customers to return products or components for reuse or remanufacturing

question

Drop and Shop

answer

system used by several retailers that allow customers to bring used products for return or donation at the entrance of the store

question

Digital Channels

answer

electronic pathways that allow products and related information to flow from producer to consumer

question

M-commerce

answer

ability to conduct commerce using a mobile device for the purpose of buying or selling goods or services

question

Intensive Distribution

answer

form of distribution aimed at having a product available in every outlet where target customers might want to buy it

question

Selective Distribution

answer

form of distribution achieved by screening dealers to eliminate all but a few in any single area

question

Exclusive Distribution

answer

form of distribution that establishes one or a few dealers within a given area

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