MKG 300 Exam 4 CH. 10 and 11 – Flashcards
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Which of the following statements about Place is FALSE? A. Place variations are required when target markets have different needs. B. Product classes suggest Place objectives. C. Place decisions have relatively little impact on competition in a product-market. D. Place decisions have longer-run implications than Price decisions. E. Place decisions need to consider when customers want products.
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C. Place decisions have relatively little impact on competition in a product-market.
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Because of long-run effects, decisions about one of the four Ps are often harder to change than the others. This P is: A. Product. B. Place. C. Promotion. D. Price.
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B. Place
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Direct marketing is A. personal sales contact between a representative of the company and an individual consumer. B. primarily concerned with the degree of market exposure. C. direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling. D. an effort to sell through only one intermediary. E. a strategy that works best when a producer has little working capital.
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C. direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling.
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Indirect channels are probably a better choice than direct channels when: A. the firm has limited financial resources. B. the product is a consumer product instead of a business product. C. target customers already have established buying patterns for where to search for the product. D. retailers are already conveniently located where consumers shop. E. all of the above.
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E. all of the above.
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Since music, movies, books, and TV programs now exist in digital form, such products:
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Distribution costs can be very low because there is often no physical good to distribute.
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Discrepancy of quantity is A. the difference between the lines a typical producer makes and the assortment final consumers or users want. B. adjusting the quantities of products handled at each level in a channel of distribution. C. collecting products from many small producers. D. the difference between the quantities of products that it is economical for a producer to make and the quantity final users or consumers normally want. E. usually seen with producers who specialize by product.
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D. the difference between the quantities of products that it is economical for a producer to make and the quantity final users or consumers normally want.
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The CBS network offers consumers hundreds of hours of television viewing each month, but the typical consumer wants to watch only a few programs. What type of discrepancy does this create? A. Discrepancy of assortment B. Discrepancy of quality C. Discrepancy of image D. Discrepancy of variety E. Discrepancy of quantity
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E. Discrepancy of quantity
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"Discrepancies of assortment" means: A. there are more producers than consumers. B. consumers want more output than producers make. C. the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users. D. there are more consumers than producers. E. the difference between the quantity of products the typical producer makes and the quantity wanted by individual consumers
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C. the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users.
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Consumers usually want to shop for milk, meat, vegetables, and fruits at one convenient location. Grocery stores that offer all of these products help to alleviate this ___________. A. discrepancy of quantity B. accumulation deficit C. sorting error D. discrepancy of assortment E. bulk-breaking
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D. discrepancy of assortment
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A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time. But a bookstore orders only a few copies of each book since its customers want to select from a wide variety. This example shows A. why discrepancies of quantity occur. B. why both discrepancies of quantity and assortment occur. C. neither discrepancies of assortment or quantity. D. why discrepancies of assortment occur. E. multichannel distribution.
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B. why both discrepancies of quantity and assortment occur.
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Which of the following is NOT one of the "regrouping activities?" A. Assorting B. Ranking C. Sorting D. Bulk-breaking E. Accumulating
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B. Ranking
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When Amazon.com collects products from many small producers, the company is involved in _____. A. assorting B. accumulating C. bulk-breaking D. quantitizing E. sorting
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B. accumulating
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AsianArt4U.com brings together the art produced by many different Asian painters and sculptors—and offers them for sale on its website. This is an example of A. accumulating B. sorting C. a franchise channel D. a discrepancy intermediary E. bulk-breaking
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A. accumulating
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InterContinental Hardware Co. buys carload quantities of bolts, screws, nuts, washers, and other hardware from a large producer in the Netherlands, breaks these shipments into smaller quantities, and sells them to other wholesalers and retail chains. This "regrouping activity" is called: A. assorting. B. wholesaling. C. accumulating. D. bulk-breaking. E. sorting.
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D. bulk-breaking.
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When an online intermediary like Hulu scans all of the episodes of NCIS and then offers them to its customers one episode at a time, this is an example of: A. sorting B. assorting C. vertical integration D. bulk-breaking E. horizontal integration
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D. bulk-breaking
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The desirability of a common "product-market commitment" is based on the idea that: A. each member of the channel should focus on a different target market. B. the whole channel is competing with other channel systems. C. the producer should always be the "channel captain." D. a channel can eliminate the marketing functions. E. All of the above are true.
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B. the whole channel is competing with other channel systems.
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Which of the following is not a common cause of conflict between producers and channel partners in a channel system? A. lack of communication. B. different objectives. C. independent operations. D. lack of a channel captain. E .different target customers.
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E .different target customers.
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A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location, but the supermarket manager refuses to give that valuable real estate to this producer. This is an example of __________ conflict. A. Contractual B. Vertical C. Corporate D. Horizontal E. Administered
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B. Vertical
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Roscoe Hardware carries stock on the complete line of Ever-Green Push Lawn Mowers. Its competitor down the street sells the same mowers at a special price by special order but does not carry any inventory. This situation creates A. vertical conflict. B. exclusive distribution rights. C. competitive discrepancy. D. horizontal conflict. E. reverse channels.
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D. horizontal conflict.
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A local TV retailer hires knowledgeable salespeople to explain the differences among its models to customers, but a nearby discount store with very few sales staff sells the same TVs at a lower price. This is an example of __________ conflict. A. horizontal B. traditional C. vertical D. contractual E. corporate
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A. horizontal
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Barnes and Noble, a multichannel book shop, discovers that Amazon.com is selling a new blockbuster book by Dan Brown at a 25 percent discount over Barnes and Noble's in-store price—because Amazon.com has a lower overhead cost. This is an example of _________ conflict. A. vertical B. traditional C. horizontal D. administered E. contractual
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C. horizontal
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The marketing manager for a producer of mattresses and box springs distributes its products through discount stores (like Costco), department stores, furniture stores, and specialty bedding stores. To avoid conflict with channel members, the manager A. should offer purchase discounts based on the quantity of mattresses that the retailer sells. B. assume that all channel members have a common commitment to target consumers at the end of the channel. C. trust retailers to emphasize sales of his brand rather than the brand of some other manufacturer. D. develop different brands or product lines for different channels. E. expect one of the large retail chains to step up to the responsibilities of being the channel captain.
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D. develop different brands or product lines for different channels.
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A "channel captain" A. might be any member of the channel (that is, at any level in the channel) B. views the members of the channel as a unit. C. should help to make the channel more efficient by reducing conflict. D. all of the above. E. none of the above.
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D. all of the above.
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The role of "channel captain": A. should be taken by producers because they have more power. B. is to force other channel members to accept the channel captain's plan. C. should be taken by retailers because they are closer to consumers. D. may not be necessary if the channel members are satisfied with the "status-quo." E. is to help a channel system compete more effectively with other channel systems.
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E. is to help a channel system compete more effectively with other channel systems.
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The main reason that vertical marketing systems are becoming more common is:
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firms recognize that coordination among channel members can increase sales for each channel member
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Which of the following is NOT a likely advantage of vertical integration? A. Lower capital requirements. B. Lower executive overhead. C. Better control of distribution. D. Better quality control. E. Greater buying power.
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A. Lower capital requirements.
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"Intensive distribution" means selling through: A. only one channel of distribution. B. all responsible and suitable retailers or wholesalers. C. only one intermediary in a particular geographic area. D. only those intermediaries who give the product special attention. E. all retail outlets.
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B. all responsible and suitable retailers or wholesalers.
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Intensive distribution is A. selling through only those wholesalers or retailers who will give the product special attention. B. selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product. C. selling through only one wholesaler or retailer in a particular geographic area. D. making a product available widely enough to satisfy target customers' needs but not exceed them. E. used to gain some of the advantages of exclusive distribution - while still achieving fairly widespread market coverage.
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B. selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.
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Intensive distribution is often very appropriate for: A. shopping products and convenience products. B. convenience products and business supplies. C. business products of all classes. D. unsought products and specialty products. E. shopping, specialty, and unsought products.
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B. convenience products and business supplies.
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"Selective distribution" means selling through: A. retailers but not wholesalers. B. multichannel distribution. C. all responsible and suitable wholesalers. D. only those wholesalers and retailers who give the product special attention. E. only one wholesaler or retailer in each geographic area.
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D. only those wholesalers and retailers who give the product special attention.
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Which degree of market exposure would probably be most suitable for a heterogeneous shopping product which has achieved brand preference and sells for about $300? A. Concentrated distribution B. Selective distribution C. Administered distribution D. Intensive distribution E. Exclusive distribution
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B. Selective distribution
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"Exclusive distribution" means selling through: A. the most prestigious retail outlets. B. only one wholesaler or retailer in a particular geographic area. C. only responsible and suitable retailers or wholesalers. D. retailers that handle specialty products. E. only those wholesalers or retailers who will give the product special attention.
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B. only one wholesaler or retailer in a particular geographic area.
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Selling through only one wholesaler or retailer in a particular geographic area is called: A. Ideal market distribution B. Intensive distribution C. Selective distribution D. Exclusive distribution E. Equivalent distribution
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D. Exclusive distribution
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If a producer has a technically superior and expensive product—which has achieved brand preference—and wants retailers to provide aggressive promotion and maximum customer service, this producer should seek: A. Multichannel distribution. B. Exclusive distribution. C. Administered distribution. D. Intensive distribution. E. Selective distribution.
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B. Exclusive distribution.
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When McDonald's corporate headquarters offers a local McDonald's franchise to a franchisee on Bourbon Street in New Orleans, this is an example of ___________ distribution. A. intensive B. operational C. selective D. exclusive E. administered
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D. exclusive
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The need for reverse channels may arise in all of the following situations EXCEPT A. a consumer buys something in error and wants to return it. B. a firm makes an error in completing an order. C. a product is recalled for safety reasons. D. a consumer changes her mind after purchasing a product. E. All of the above create a need for reverse channels.
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E. All of the above create a need for reverse channels.
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If a Universal computer monitor breaks while it is still under warranty, someone needs to get it to the repair center. In this case, Universal will need: A. reverse channels. B. multichannels. C. intensive distribution. D. exclusive distribution. E. selective distribution.
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A. reverse channels.
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In Europe, auto manufacturers are required by law to allow owners of their brands to give the cars back to the manufacturers at the end of their useful life. The manufacturers must then recycle and reuse at least 85 percent of any vehicle made after 2004. This is an example of a(n): A. integration law B. horizontal law C. contractual law D. vertical law E. take back law
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E. take back law
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Exporting A. is selling some of what the firm produces to foreign markets. B. can be a way to get rid of surplus output. C. can come from a real effort to look for new opportunities. D. all of the above. E. A and B, but not C.
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D. all of the above.
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Which of the following statements about exporting is NOT TRUE? A. Export agents can handle the arrangements as products are shipped outside the country. B. Channel relationships in international markets take time to build and shouldn't be treated lightly. C. Exporting requires a firm to establish permanent relationships with international partners. D. A firm often invests a minimum amount of time and money. E. Both A and C.
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C. Exporting requires a firm to establish permanent relationships with international partners.
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In international markets, a firm can sell its management and marketing know-how while letting locals own the production and distribution facilities by using A. licensing. B. exporting. C. joint venturing. D. management contracting. E. direct investment.
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D. management contracting.
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Worldwide Drilling, Inc. of Fort Worth, Texas, operates an oil well in Russia for its owners. Worldwide is involved in: A. management contracting. B. exporting. C. a direct investment. D. a joint venture. E. licensing.
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A. management contracting.
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When the Rosco International chain of restaurants enters foreign markets, locals own the restaurant facilities, but look to Rosco to provide expertise in management and marketing. Rosco uses the _______ approach to enter international markets. A. management contracting B. direct investment C. exporting D. joint venture E. licensing
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A. management contracting
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If a producer agrees to enter into a management contracting arrangement with a zinc mining operation in Chile, A. the company should be prepared to invest large amounts in mining facilities. B. the company should be prepared to send people to Chile. C. success will depend on how well the Chilean managers know what needs to be done. D. the company must assume no political problems will arise, otherwise the risk is very high. E. None of the above is true.
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B. the company should be prepared to send people to Chile.
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Oceanside Tools, Inc. of Newport, Rhode Island has agreed to work with a Thai company to produce and sell chemicals in Thailand. The U.S. firm will provide technical and marketing know-how, while its Thai partner will provide knowledge of Thai markets and political connections. The partners will share the costs and profits 50/50. This type of international involvement is called: A. direct investment. B. management contracting. C. licensing. D. multinational marketing. E. joint venturing.
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E. joint venturing.
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Business products tend to be sold direct to customers because compared to consumer products:
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Business products tend to move through shorter channels than consumer. Sometimes a direct channel is the only way to sell the product -Business customers often look for specific product attributes
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The CBS network offers consumers hundreds of hours of television viewing each month, but the typical consumer wants to watch only a few programs. What type of discrepancy does this create? A. discrepancy of assortment B. discrepancy of quality C. discrepancy of image D. discrepancy of variety E. discrepancy of quantity
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E. discrepancy of quantity
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In _____ channel systems the amount of cooperation among members of the channel is very high. A. contractual B. traditional C. corporate D. administered E. horizontal
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C. corporate
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Logistics decisions include all of the following except: A. distribution service level. B. transporting of goods. C. handling of goods. D. prices to charge for delivery. E. storage of goods. (ch.11)
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D. prices to charge for delivery.
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Physical distribution differs from logistics in that A. logistics deals with storing and physical distribution does not. B. logistics uses JIT to coordinate activities among firms and physical distribution does not. C. logistics includes customer service decisions and physical distribution does not. D. logistics includes transporting goods and physical distribution does not. E. physical distribution is another common name for logistics. (Ch. 11)
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E. physical distribution is another common name for logistics.
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Which of the following questions is likely to be MOST important to a customer concerning a company's physical distribution practices? (ch. 11)
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cost
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Most physical distribution decisions involve trade-offs between A. the total cost of physical distribution and consumer service levels only. B. transportation costs and inventory carrying costs only. C. costs, consumer service levels, and sales. D. sales and consumer service levels only. E. availability and speed of delivery only. (Ch.11)
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C. costs, consumer service levels, and sales.
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Most physical distribution decisions involve trade-offs between A. the total cost of physical distribution and consumer service levels only. B. transportation costs and inventory carrying costs only. C. costs, consumer service levels, and sales. D. sales and consumer service levels only. E. availability and speed of delivery only.
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C. costs, consumer service levels, and sales.
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Which of the following statements concerning physical distribution trade-offs is NOT true? A. The trade-offs that must be made in the physical distribution area can be complicated. B. The lowest-cost approach may not be the best as customer service level varies from one market to the other. C. Many firms are trying to address trade-off complications with e-commerce. D. Most physical distribution decisions involve trade-offs between costs, customer service level, and sales. E. An efficient physical distribution system does not have to make trade-offs for customers.
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E. An efficient physical distribution system does not have to make trade-offs for customers.
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The right physical distribution system should be based primarily on: A. the desired customer service level. B. how customers store the product. C. the physical characteristics of the product. D. what is the lowest cost method of transportation for the product. E. the inventory level that allows the smoothest production runs.
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A. the desired customer service level.
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Information technology helps physical distribution in what ways? A. It improves service levels, but doesn't coordinate activities. B. While it cannot cut costs, it can coordinate activities. C. It can cut costs and improve service levels. D. It is overrated and generally fails to improve service levels and coordinate activities. E. It improves service levels while raising costs.
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C. It can cut costs and improve service levels.
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Which of the following observations about the total cost approach is NOT true? A. Includes transportation costs. B. Helps find the lowest total cost for the right service level. C. Focuses on direct costs and doesn't consider the possible costs of lost sales. D. Uses the tools of cost accounting and economics. E. Involves evaluating each possible physical distribution system and identifying all of the costs of each alternative
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C. Focuses on direct costs and doesn't consider the possible costs of lost sales.
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After evaluating all of its alternatives and the costs of each, Vegpro Kenya decided the most efficient way to quickly get its fresh vegetables from Nairobi to European cities was to use air freight. What approach did it use in making this decision? A. diagonal B. total cost C. piggyback D. EDI E. layered
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B. total cost
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Physical distribution decisions interact with which other marketing mix decisions? A. Price decisions. B. Promotion decisions. C. Product decisions. D. All of the above. E. None of the above.
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D. All of the above.
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How PD functions are shared will have the greatest effect on which of the other three Ps?
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Price, Place, Product
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A jewelry maker's suppliers of gold, platinum and silver, the warehouses that store its finished goods, and the trucks that deliver the product to retailers are all part of a:
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supply chain
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Just-in-time (JIT) delivery A. is always the best approach. B. reduces customers' physical distribution costs. C. increases storing and handling costs. D. shifts responsibility for physical distribution activities forward in the channel. E. requires customers to have high quality standards in physical distribution activity.
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B. reduces customers' physical distribution costs.
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Which of the following statements about supply chains is FALSE? A. A supply chain includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers. B. A supply chain includes one or more channels of distribution. C. The primary aim of any firm in a supply chain is to contribute to customer value by minimizing its own distribution costs. D. Few firms are willing to give "outsiders" access to information in their computer systems, so it is likely to be quite some time before computers have the impact on managing a supply chain that they have had in other areas of business. E. None of the above is false.
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D. Few firms are willing to give "outsiders" access to information in their computer systems, so it is likely to be quite some time before computers have the impact on managing a supply chain that they have had in other areas of business.
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Which of the following statements about electronic data interchange is FALSE? A. Inventory information is automatically updated. B. EDI has not yet spread to international markets. C. A customer transmits its order information directly to the supplier's computer. D. EDI is very common in the United States. E. EDI puts information into a standardized format.
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B. EDI has not yet spread to international markets.
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As a percentage of selling price, transportation costs would most likely be highest for which of the following?
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airfreight
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Good marketing strategy planners know that: A. transporting costs may limit a marketing manager's possible target markets. B. the transporting costs for some bulky or low-value products may be greater than their manufacturing costs. C. transporting is vital for mass distribution and modern urban life. D. the cost of shipping some "high-value" products to users is less than 5 percent of their selling prices. E. All of the above are true.
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E. All of the above are true.
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More freight is carried more miles _____ than any other mode of transportation A. by railroads B. by air C. by pipeline D. by trucks E. over water
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A. by railroads
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Trucks A. are best at moving large quantities of goods for longer distances. B. are the most expensive of any of the modes. C. are very slow compared to railroads, and this makes it hard to compete effectively. D. compete aggressively with other modes for high-value shipments. E. All of the above are true.
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D. compete aggressively with other modes for high-value shipments.
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Regarding alternative transporting modes: A. trucks are good for speed, frequency, dependability, and number of locations served. B. pipelines are slower and less dependable than water transport, but also less expensive and able to serve more locations. C. airways are faster, cheaper, and more dependable than railways. D. waterways are slow, costly, and unable to handle a variety of shipments.
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A. trucks are good for speed, frequency, dependability, and number of locations served.
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Which of the following transportation modes is "best" at handling a variety of goods? A. Truck B. Rail C. Water D. Air E. Pipeline
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C. Water
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It is usually most economical to ship bulky nonperishable items, such as coal and iron ore, by A. water. B. pipeline. C. truck. D. air. E. None of the above is a good answer, since the cost of shipping a product usually does not vary from one mode to another.
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A. water.
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Considering weight, which one of the following transporting modes usually has the LOWEST cost? A. Waterways B. Airways C. Trucks D. Railroads E. Pipelines
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A. Waterways
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Products that require a high frequency of scheduled shipments would be least suited to travel by A. truck. B. rail. C. air. D. water. E. pipeline.
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D. water.
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Alex has to transport iron ore from New Orleans to Memphis. Which mode of transport is he more likely to use? A. Airways B. Truck C. Railroad D. Inland waterways E. Monorail
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D. Inland waterways
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Regarding airfreight, which of the following statements is NOT true? A. Airfreight may reduce the total cost of distribution. B. Inventory costs usually increase, since only small quantities can be shipped at a time. C. Very bulky items cannot be shipped economically. D. Airfreight is opening up new markets for many perishable items. E. There are usually fewer problems from theft and damage with airfreight.
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B. Inventory costs usually increase, since only small quantities can be shipped at a time.
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Airfreight A. has rates one third the rates of trucks. B. efficiently delivers all types of goods. C. serves many more locations than trucks. D. can reduce the cost of preparing goods for distribution. E. can help reduce inventory costs
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E. can help reduce inventory costs
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Regarding transportation modes, which of the following statements is NOT true? A. The majority of the pipelines in the U.S. are in the Southwest. B. Airfreight costs about the same as trucks for long distances, not counting the cost of transporting to and from the airport. C. Water transportation is the slowest shipping mode. D. Most cities in the United States are less than 200 miles from a major petroleum pipeline
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B. Airfreight costs about the same as trucks for long distances, not counting the cost of transporting to and from the airport.
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Jackie works in transportation for a company that ships expensive, high quality fish all across the United States. The perishable nature of her product, the value of freshness, and the high prices she charges would lead you to recommend which transportation mode? A. Airfreight B. Trucks C. Railroads D. Inland waterways E. Piggyback truck
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A. Airfreight
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Regarding alternative transporting modes, which of the following statements is TRUE? A. Waterways serve the most locations. B. Airways offer the most expensive transporting mode. C. Railways provide the lowest cost considering weight. D. Trucks offer the fastest speed. E. Pipelines in the U.S. are located mostly in the Northeast.
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B. Airways offer the most expensive transporting mode
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Containerization: A. is widely used by railroads, but has not caught on with other modes. B. makes it easier to load and unload products, but it increases the risk of damage. C. has increased competition between railroads and water shippers since both offer this service. D. is commonly used for international shipments from Japan. E. None of the above is true.
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D. is commonly used for international shipments from Japan.
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A major benefit of _____ is that it protects the products and simplifies handling during shipping. A. fast freight B. truck service C. containerization D. airfreight E. piggyback
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C. containerization
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Piggyback service means A. loading truck trailers on railcars to increase flexibility. B. linking truck trailers to save fuel. C. providing door-to-door service in cities. D. special handling of important farm equipment. E. combining small shipments of many shippers into more economical quantities.
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A. loading truck trailers on railcars to increase flexibility.
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Chrysler manufactures cars in Detroit and loads them on truck trailers at the factory. Burlington Northern Santa Fe (BNSF) picks up the truck trailers, loads them on specially designed rail flatcars, and ships them to St. Louis. There they are delivered by truck to local dealers. This transportation process is: A. containerization B. multilevel C. layered D. piggyback E. disjointed
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D. piggyback
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A footwear company specializing in the production of ballet shoes normally produces shoes only in women's and girl's sizes. The company is hired by several customers to produce shoes in men's and boy's sizes. Which of the following should the manufacturer consider in order to achieve economies of scale in shoe production?
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Order the shoes in bulk
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Storing of goods is necessary when A. there is more demand and no supply. B. quality doesn't match demand. C. production doesn't match consumption. D. production doesn't match quality demanded. E. products are produced in small batches.
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C. production doesn't match consumption.
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Which of the following does NOT contribute to total inventory cost? A. Costs of damage to products while in inventory. B. Costs of risks such as theft and fire. C. Costs of inventory becoming obsolete. D. Increase in the value of goods. E. Handling costs.
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D. Increase in the value of goods.
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Compared to a public warehouse, a private warehouse A. requires no fixed investment. B. has lower unit costs. C. has less flexibility. D. works better when large volumes of goods must be stored irregularly. E. tends to have less managerial control.
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C. has less flexibility.
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Public warehouses: A. generally do not provide all the services that could be obtained in a company's own branch warehouse. B. are not usually responsible for the risk of damage in the warehouse. C. provide flexibility because the user pays only for the space used. D. are not very useful to manufacturers who must maintain stocks in many locations, including foreign countries. E. All of the above.
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C. provide flexibility because the user pays only for the space used.
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Compared to private warehouses, PUBLIC warehouses: A. are not any more flexible because long-term leases are usually required. B. may not always be conveniently available. C. require no fixed investment but per unit storing costs are usually higher. D. reduce managerial flexibility. E. All of the above.
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B. may not always be conveniently available.
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Radio frequency identification tags can A. make it easy for computers to monitor inventory. B. help computers to order needed stock. C. track storing costs. D. transmit details about carton contents. E. all of the above.
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E. all of the above.
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In designing the right physical distribution system, United Tools should primarily focus on: A. the inventory level that its current warehouse can support. B. the lowest cost transportation method for each of its products. C. where customers store their inventory. D. the desired customer service level. E. the physical characteristics of each product.
answer
D. the desired customer service level.
