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Questions
Q:
There are four types of franchising arrangements. List the systems and provide a brief description of each.
Q:
When Dell Computer sells made-to-order PCs to customers online via its website, it is an example of which type of marketing channel?
A. indirect channel
B. strategic channel alliance
C. consumer channel
D. dual distributive channel
E. direct channel
Q:
There are three types of contractual vertical marketing systems. List the systems and provide a brief description of each.
Q:
In a direct channel, all channel functions are performed by __________.
A. retailers
B. wholesalers
C. producers
D. brokers and agents
E. middlemen
Q:
List and define the three major types of vertical marketing systems.
Q:
A direct channel is when
A. producers and end-users deal with each other on a one-on-one basis.
B. the producer and consumer and perform numerous channel functions.
C. a firm reaches different buyers by employing two or more different types of channels for the same basic product.
D. an intermediary sells to other intermediaries, usually to retailers in consumer markets.
E. an agent or broker brings ultimate consumers to manufacturers.
Q:
Outside of the United States, you may see a Cheerios box that carries the Nestl name rather than the familiar General Mills brand name. Explain the channel that is being used and the importance of Cereal Partners Worldwide (CPW).
Q:
A(n) __________ exists when producers and ultimate consumers deal one-on-one with each other.
A. strategic channel alliance
B. direct channel
C. horizontal marketing exchange
D. indirect channel
E. dual distribution channel
Q:
Define and describe at least one similarity and one difference between dual distribution and a strategic channel alliance.
Q:
As the number of intermediaries between a producer and buyer increases, the channel is viewed as increasing in __________.
A. variety
B. scope
C. depth
D. scale
E. length
Q:
With respect to consumer product and service marketing channels, what are the key differences between a direct and an indirect channel?
Q:
An example of __________ utility involves intermediaries shipping goods to buyers of a product.
A. time
B. form
C. place
D. possession
E. transactional
Q:
What are the utilities created by marketing intermediaries? Describe each one.
Q:
A textile artist can buy fabric, thread, and batting, create an heirloom quilt, and then sell the finished work to customers in a kiosk decorated with some of the quilts produced to entice customers who shop at the local strip mall. By designing the quilts and kiosk with aesthetic value, the artist creates __________ utility.
A. application
B. possession
C. time
D. place
E. form
Q:
What are the functions performed by intermediaries?
Q:
Enhancing a product or service to make it more appealing to buyers is __________ utility.
A. time
B. place
C. possession
D. form
E. transactional
Q:
What is a marketing channel? Define each of the four types of marketing channels.
Q:
Having a product or service where consumers want it is __________ utility.
A. form
B. place
C. time
D. possession
E. location
Q:
Amazon uses supply chain and logistics management to
A. make sure that it maintains the authority that comes with being the channel captain.
B. avoid having to use quick response replenishment.
C. lessen the amount of communication that is necessary between it and its suppliers.
D. manage the flow of products from its suppliers to its distribution centers.
E. implement its market divestment strategies.
Q:
A snack vending machine located in a university building that students use between classes when hungry creates both __________ utility.
A. time and place
B. place and form
C. form and creation
D. possession and form
E. application and place
Q:
One of the sales growth strategies Amazon considered early on is (the) __________.
A. sales of books
B. sales of consulting services
C. sales of original paintings and wall art
D. selling Amazon's distribution centers
E. sales of greeting cards and invitations
Q:
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.
Q:
Hewlett-Packard is taking a proactive role in reducing the amount of electronic merchandise dumped in landfills by using __________ to reclaim recyclable and reusable materials.
A. reverse materials handling
B. reverse logistics
C. cause-related marketing
D. vendor-managed inventory
E. materials transformation
Q:
Though uninformed consumers may not appreciate the extra markups from channel members, the four utilities each provide methods of
A. channel intermediary development.
B. relationship management between channel intermediaries themselves.
C. value creation by channel intermediaries.
D. channel intermediary promotional efforts.
E. a way to recoup cost overruns.
Q:
Butler-McDonald, an Indianapolis firm, recycles outdated computers to reclaim reusable materials such as plastics, copper, zinc, silver, and gold. Butler-McDonald is implementing
A. salvage marketing.
B. materials transformation.
C. cyclical materials handling.
D. reverse logistics.
E. cause-related marketing.
Q:
Egg distributors determine the relative quality of the product and put a rating on the packaging, such as Grade A or Grade AA. This rating system is most closely related to which facilitating function activity performed by marketing intermediaries?
A. grading
B. sorting
C. risk taking
D. marketing
E. assorting
Q:
Reverse logistics refers to
A. the collection of used goods donated from to nonprofit organizations by ultimate consumers to be restored, cleaned, repaired, and resold back to ultimate consumers.
B. deconstructing products that failed to pass quality inspection standards on the production line and reusing workable parts instead of throwing out the entire unit.
C. the process of reclaiming recyclable and reusable materials, returns, and reworks from the point-of-consumption or use for repair, remanufacturing, redistribution, or disposal.
D. organizing a cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements.
E. the donation of old or broken automobiles to nonprofit organizations that can be recycled or turned into scrap with the profits applied to the organization's operating expenses.
Q:
Inspecting, testing, or judging products and assigning them quality grades would be an example of a __________ function performed by channel intermediaries.
A. transactional
B. logistical
C. storing
D. facilitating
E. risk taking
Q:
The process of reclaiming recyclable and reusable materials, returns, and reworks from the point-of-consumption or use for repair, remanufacturing, redistribution, or disposal is referred to as
A. salvage marketing.
B. materials transformation.
C. reverse materials handling.
D. reverse logistics.
E. cause-related marketing.
Q:
Extending credit to customers would be an example of a __________ function performed by channel intermediaries.
A. transactional
B. logistical
C. facilitating
D. buying
E. risk taking
Q:
At the end of a recent year, Solectron, a big Milpitas, California, electronics contractor, made half of its purchases under vendor-managed inventory programs. Solectron
A. had its suppliers perform all materials handing activities.
B. authorized its suppliers to eliminate as many wholesaling functions as possible from the supply chain.
C. used a system in which its suppliers determined the product amount and assortment that should be in stock.
D. authorized the use of distribution centers to provide quicker customer response times.
E. balanced its total logistics cost by eliminating the convenience service factor.
Q:
Intermediaries perform facilitating function activities, which assist producers in making products and services more attractive to buyers. These activities include
A. producing, assembling, and distributing.
B. transportation and distribution.
C. buying, selling, and risk taking.
D. assorting, sorting, and storing.
E. financing, grading, and providing marketing information and research.
Q:
A vendor-managed inventory system refers to an
A. inventory supply system that operates with very low inventories and requires fast on-time delivery.
B. inventory management system whereby the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items.
C. inventory management system that is designed to reduce the retailer's lead time for receiving merchandise, which then lowers its inventory investment, improves customer service levels, and reduces logistic expenses.
D. inventory supply system that relies on the "judgment" of individual warehouse managers based on daily reports from its retailer customers.
E. inventory system that guarantees delivery within 48 hours, granting price reductions of 1 percent per hour if a shipment is delayed.
Q:
In terms of distribution, when marketing channel members are engaged in financing, grading, and providing marketing information and research, they are performing the __________ function.
A. logistical
B. transformational
C. implementing
D. facilitating
E. transactional
Q:
An inventory-management system whereby the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items is referred to as __________.
A. supplier-managed inventory
B. supply chain inventory
C. logistics-managed inventory
D. just-in-time inventory management
E. vendor-managed inventory
Q:
Facilitating function activities include
A. buying and selling.
B. assorting, sorting, and storing.
C. financing, grading, and providing information.
D. risk taking.
E. transportation.
Q:
Convenience refers to the concept that
A. there should be a minimum of effort on the part of the buyer in doing business with the seller.
B. all products or services should be available 24 hours a day, 7 days a week, and 365 days a year.
C. all tasks required to make an exchange are the sole responsibility of the seller.
D. an exchange requires equal effort by both the buyer and seller.
E. all logistical services are provided by a supplier network.
Q:
When Hunter went to the hardware store looking for gloves to wear while refinishing a table, he bought one pair because that was all he needed. But when the hardware store purchased the gloves, it purchased a case containing 100 pairs of identical gloves. Which logistical function did the hardware store perform for Hunter and its other customers here?
A. marketing
B. buying
C. sorting
D. assorting
E. risk taking
Q:
Which of the following is an example of good communication between buyer and seller?
A. disintermediation
B. selective distribution
C. reverse logistics
D. forward integration
E. order status reports
Q:
Physically moving a product to customers would be an example of a __________ function performed by channel intermediaries.
A. transactional
B. logistical
C. facilitating
D. selling
E. risk taking
Q:
In logistics, a two-way link between buyer and seller that helps in monitoring service and anticipating future needs is referred to as
A. inventory management.
B. dependability.
C. communication.
D. reverse logistics.
E. accountability.
Q:
Purchasing products in large quantities and breaking them into smaller amounts desired by customers would be an example of a __________ function performed by a channel intermediary.
A. logistical
B. transactional
C. facilitating
D. transporting
E. risk taking
Q:
Dependability is the consistency of replenishment. This is important to all firms in a supply chain and to consumers. It can be broken into three elements: consistent lead time, safe delivery, and __________.
A. complete delivery
B. honest and accurate pricing
C. quality products
D. product warranties
E. a well-informed delivery staff
Q:
Assembling and protecting products at a convenient location to offer better customer service would be an example of a __________ function performed by a channel intermediary.
A. transactional
B. facilitating
C. grading
D. risk taking
E. logistical
Q:
Dependability is the consistency of replenishment. This is important to all firms in a supply chain and to consumers. It can be broken into three elements: consistent lead time, complete delivery, and __________.
A. honest and accurate pricing
B. quality products
C. a well-informed delivery staff
D. product warranties
E. safe delivery
Q:
Creating product assortments from several sources to serve customers would be an example of a __________ function performed by a channel intermediary.
A. transactional
B. facilitating
C. selling
D. logistical
E. risk taking
Q:
Dependability is the consistency of replenishment. This is important to all firms in a supply chain and to consumers. It can be broken into three elements: safe delivery, complete delivery, and __________.
A. honest and accurate pricing
B. quality products
C. consistent lead time
D. a well-informed delivery staff
E. product warranties
Q:
When marketing channel members are engaged in assorting, storing, sorting, and transporting products and services, they are performing __________ functions.
A. logistical
B. merchandising
C. facilitating
D. implementation
E. transactional
Q:
Another name for quick response systems is __________.
A. order replenishment systems
B. customer logistics factors
C. minimum-inventory systems
D. web-based response systems
E. efficient consumer response systems
Q:
Logistical function activities include __________ products and services.
A. buying and selling
B. assorting, storing, sorting, and transporting
C. financing and grading
D. risk taking
E. marketing information for and research of
Q:
Inventory management systems that are designed to make the process of reordering and receiving products as simple as possible are referred to as __________.
A. efficient consumer response systems
B. order replenishment systems
C. customer logistics factors
D. minimum-inventory systems
E. web-based response systems
Q:
Purchasing products for resale or as an agent to supply of a product would be an example of a __________ function of a marketing intermediary.
A. logistical
B. facilitating
C. risk taking
D. transactional
E. assorting
Q:
An efficient consumer response system refers toA. an order replenishment system that maintains a 10 percent inventory rate at all times in order to guarantee there will never be stockouts.B. an online virtual inventory storage program that allows firms to enter in minute-by-minute information in order to avoid stockouts due to unforeseen environmental forces.C. a computer program that allows even the smallest manufacturer to manage its inventory system.D. an inventory management system that is designed to make the process of reordering and receiving products as simple as possible.E. an exclusive contractual agreement between delivery services such as FedEx or UPS to deliver expedited orders at a special low rate, regardless of the day and time.
Q:
A marketing channel intermediary that contacts potential customers, promotes products, and seeks orders would be engaging in a(n) __________ function.
A. transactional
B. logistical
C. facilitating
D. risk taking
E. assorting
Q:
Inventory management systems that are designed to make the process of reordering and receiving products as simple as possible are referred to as
A. order replenishment systems.
B. quick response systems.
C. customer logistics factors.
D. minimum-inventory systems.
E. web-based response systems.
Q:
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
Q:
The Limited employs a quick response system to order fast-moving fashion items. The Limited's point-of-sale scanner records each sale. When inventory falls below a minimum level, the system automatically sends an electronic order to the manufacturer, which processes the order immediately. This system has effectively reduced
A. dependability.
B. product flow.
C. replenishment time.
D. supply lag.
E. logistical lag.
Q:
Risk taking as a transactional function refers to
A. unpredictable costs of transportation because of fuel prices.
B. product liability from poorly produced products that become defective.
C. the need to stock merchandise in anticipation of sales though it may become obsolete.
D. trying new promotional campaigns that are unproven with consumers.
E. investments in new product development even when the product has a low chance of long-term success.
Q:
The typical order cycle include all of the following elements EXCEPT:
A. order processing.
B. transportation.
C. stockout reports.
D. documentation.
E. order transmittal.
Q:
Intermediaries performing a transactional function in distribution are engaged in buying, selling, and __________.
A. storing
B. financing
C. transporting
D. risk taking
E. merchandising
Q:
In a supply chain setting, replenishment time refers to lead time for an item, which means the time between the ordering of an item and when it is
A. billed to the customer.
B. acknowledged by the customer.
C. billed and paid for by the customer.
D. promised for delivery.
E. received and ready for use or sale.
Q:
Figure 12-2
Intermediaries perform three basic functions. According to Figure 12-2 above, C represents a(n) __________.
A. transactional function
B. facilitating function
C. middleman function
D. logistical function
E. operational function
Q:
Another name for order cycle time isA. physical distribution sequence.B. total logistics cycle.C. replenishment time.D. logistical support time.E. billing cycle.
Q:
Figure 12-2
Intermediaries perform three basic functions. According to Figure 12-2 above, B represents a(n) __________.
A. logistical function
B. transactional function
C. middleman function
D. facilitating function
E. operational function
Q:
Order cycle time refers toA. the time between when an order is placed and when payment is received.B. the time between the sale of the first production batch to the sale of the next production batch.C. the cycle between one full warehouse shipment to the next full warehouse shipment.D. the time between the ordering of an item and when it is received and ready for use or sale.E. the average time between reorders by a given wholesaler or retailer in the marketing channel.
Q:
Figure 12-2
Intermediaries perform three basic functions. According to Figure 12-2 above, Box A represents a(n) __________.
A. middleman function
B. logistical function
C. facilitating function
D. operational function
E. transactional function
Q:
The three basic functions intermediaries perform are
A. planning, implementing, and evaluating 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.
Q:
Which of the following statements regarding supply chain customer service is most accurate?
A. The output of a supply chain is measured in total units sold.
B. Customer service must be balanced against total logistics cost factors.
C. The output of a supply chain is measured either in total units sold or total number of customers served.
D. A firm's goal should be to provide superior customer service regardless of costs.
E. Customer service is the responsibility of marketing channel members and not the supplier network.
Q:
Figure 12-1
A variety of terms are used for marketing intermediaries. According to Figure 12-1 above, F represents a(n) __________.
A. dealer
B. retailer
C. middleman
D. wholesaler
E. agent or broker
Q:
The output of a supply chain is the
A. units of products delivered.
B. total generated revenue.
C. service delivered to customers.
D. total number of customers served.
E. total profits realized.
Q:
Figure 12-1
A variety of terms are used for marketing intermediaries. According to Figure 12-1 above, E represents a(n) __________.
A. retailer
B. middleman
C. wholesaler
D. distributor
E. agent or broker
Q:
Supply chain managers balance total logistics cost factors against customer service factors. Customer service factors include
A. reliability, flexibility, consistency, and dependability.
B. time, dependability, communication, and convenience.
C. consistency, responsiveness, durability, and communication.
D. time, assurance, responsiveness, and dependability.
E. convenience, flexibility, time, and value.
Q:
Figure 12-1
A variety of terms are used for marketing intermediaries. According to Figure 12-1 above, D represents a(n) __________.
A. retailer
B. wholesaler
C. distributor
D. agent or broker
E. middleman
Q:
The importance of time, dependability, communication, and convenience are all important concepts of __________, within the context of the supply chain.
A. customer service
B. supplier service
C. wholesaler service
D. retailer service
E. stakeholder service
Q:
Figure 12-1
A variety of terms are used for marketing intermediaries. According to Figure 12-1 above, C represents a(n) __________.
A. retailer
B. dealer
C. wholesaler
D. distributor
E. agent or broker
Q:
Within the context of a supply chain, __________ is the ability of a logistics system to satisfy users in terms of time, dependability, communication, and convenience.
A. quick response
B. customer service
C. distribution management
D. efficient consumer response
E. lead time
Q:
Figure 12-1
A variety of terms are used for marketing intermediaries. According to Figure 12-1 above, B represents a(n) __________.
A. retailer
B. middleman
C. wholesaler
D. distributor
E. agent or broker
Q:
In the context of a supply chain, customer service refers toA. adhering to the belief that the customer is always right.B. satisfying the customers' needs no matter what the price.C. accepting full liability if a product fails to meet a customer's expectations.D. the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.E. the ability of logistics management to satisfy users in terms of product, price, promotion, and place.
Q:
Figure 12-1
A variety of terms are used for marketing intermediaries. According to Figure 12-1 above, Box A represents a(n) __________.
A. retailer
B. middleman
C. wholesaler
D. distributor
E. agent or broker
Q:
For logistics, the customer service concept suggests that firms should
A. automate interactions with customers.
B. maximize customer service levels.
C. minimize customer service levels.
D. minimize total logistics costs and let customer service follow.
E. satisfy users in terms of time, dependability, communication, and convenience.