Marketing Quiz 9 – Flashcards

Marketing channels help create value for consumers through four utilities. These utilities are A. product, price, promotion, and place. B. form, function, risk taking, and selling. C. time, place, form, and possession. D. transactional, logistical, facilitating, and marketing. E. buying, selling, storing, and transporting.

Which of the following statements regarding corporate vertical marketing systems is most accurate? A. Corporate vertical marketing systems can use either forward integration or backward integration but not both. B. Corporate vertical marketing systems increase distribution costs. C. Corporate vertical marketing systems increase investment but decrease fixed costs. D. Corporate vertical marketing systems are only effective with low-end consumer products. E. Corporate vertical marketing systems offer more control over supply sources or resale of products.

The key goal for retailers in the accelerated development phase of the retail life cycle is to A. recover start-up costs. B. establish a dominant position in the fight for market share. C. delay entering the decline stage of the retail life cycle. D. find ways of discouraging their customers from moving to low-margin, mass-volume outlets. E. establish a retail concept that is a sharp departure from existing competition.

Extending credit to customers would be an example of a __________ function. A. transactional B. logistical C. facilitating D. buying E. risk taking

A commonly used indirect channel moves product from producer to retailer to consumer. This channel is used when A. the retail outlets are regionally located. B. the cost of maintaining inventory is low. C. there is little if any seasonal demand. D. the risk lies solely with the manufacturer. E. the retailer is large and can buy in large quantities from a producer.

In a direct channel, all channel functions are performed by __________. A. retailers B. wholesalers C. producers D. brokers and agents E. middlemen

There are three variations of contractual systems: wholesaler-sponsored voluntary chains, retailer- sponsored cooperatives, and __________. A. franchising B. service-oriented voluntary chains C. channel-dominated voluntary chains D. distributorship cooperatives E. reseller franchising

In terms of distribution, when marketing channel members are engaged in buying, selling, and risk taking, they are performing __________ functions. A. logistical B. merchandising C. facilitating D. implementation E. transactional

There are three degrees of distribution—one of these being intensive distribution. What is the extreme opposite of this degree of density? A. exhaustive distribution B. thorough distribution C. exclusive distribution D. selective distribution E. concentrated distribution

The sequence of firms that performs activities required to create and deliver a product or service to ultimate consumers or industrial users is referred to as A. strategic distribution. B. distribution management. C. a supply chain. D. value chain optimization. E. logistics.

Most of the 1.1 million retail establishments in the United States, including hardware stores, convenience stores, clothing stores, and computer and software stores, are considered __________. A. corporate chains B. contractual systems C. independent retailers D. conglomerate E. multinationals

Creating product assortments from several sources to serve customers would be an example of a __________ function. A. transactional B. facilitating C. selling D. logistical E. risk taking

There are three key methods of classifying retail operations A. method of operation, revenues generated, and merchandise line. B. form of ownership, method of operation, and merchandise line. C. form of ownership, level of service, and merchandise line. D. level of service, merchandise line, and revenues generated. E. merchandise line, form of ownership, and revenues generated.

The distribution intensity associated with shopping products such as electronics, clothing, and costume jewelry is referred to as __________. A. intensive distribution B. selective distribution C. extensive distribution D. exclusive distribution E. concentrated distribution

A restaurant that offers food made exactly to each customer's preference is providing its customers with __________ utility. A. time B. place C. possession D. form E. process

An example of __________ utility involves intermediaries shipping goods to buyers of a product. A. time B. form C. place D. possession E. transactional

The three basic functions intermediaries perform are A. accommodating, logistical, and transactional functions. B. implementation, accommodating, and contractual functions. C. contractual, facilitating, and logistical functions. D. transactional, logistical, and facilitating functions. E. facilitating, accommodating, and implementation functions.

A __________ can be compared to a pipeline through which water flows—making possible the flow of products from a producer, through intermediaries, to a buyer. A. chain of command B. marketing hierarchy C. marketing agent D. marketing channel E. marketing middleman

Multichannel marketing seeks to integrate a firm's electronic and delivery channels. Catalogs can serve as shopping tools for online purchasing, and websites can help consumers do their homework before visiting a store. By blending different communication and delivery channels, A. multichannel marketing can leverage the value-adding capabilities of different channels. B. multichannel marketing creates greater elasticity of demand for a firm's products. C. multichannel marketing creates greater inelasticity of demand for a firm's products. D. multichannel marketing allows a firm to legally circumvent paying taxes on revenue generated by online sales. E. multichannel marketing allows customers to avoid shipping and handling charges.

Consumers benefit in dealing with retail corporate chains because A. corporate chains have more experience than other forms of retailers. B. they can own stock in the same company where they shop since corporate chain stock must be publicly-traded. C. they can establish a credit history more easily than with other forms of retailers. D. there are multiple outlets with similar merchandise and consistent management policies. E. they have less stress in making decisions since merchandise is arranged and displayed by professional designers.