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Marketing
Q:
Retailing can be defined as all activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use.
Q:
Johns Manville is the only manufacturer to offer a complete line of Formaldehyde-free fiber glass 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
Q:
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
Q:
A channel leader is also called a(n):
a. intermediary leader
b. channel captain
c. channel facilitator
d. distribution supervisor
e. channel gatekeeper
Q:
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
Q:
Wal-Mart is the largest retailer in the world and many consumer package-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
Q:
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
Q:
When Rick purchased tickets to a concert on the Internet, it was an example of:
a. single-sourcing distribution
b. one-way channelization
c. electronic distribution
d. mass customization
e. aggregated marketing
Q:
A manufacturer of automobile component parts that has turned over all transportation functions to an independent third party in its supply chain has engaged in:
a. creating a dependent materials-handling system
b. outsourcing
c. removing entry barriers
d. task deployment
e. channel rotation
Q:
Volvo, working with FedEx, set up a warehouse in Memphis with a complete stock of truck parts. A dealer needing a part for an emergency phones a toll-free number, and the part is delivered by FedEx within 24 hours. This is an example of how manufacturers are using:
a. outsourcing
b. cross-docking
c. disintermediation
d. piggybacking
e. an integrated demand channel
Q:
Papa John's pizza chain uses UPS trucks to carry supplies to its franchises. Papa John's does not own the trucks but has contracted with UPS to have all of the trucks it uses in its deliveries to Papa John's establishments painted with the Papa John's logo and company colors. Papa John's is using:
a. a horizontal distribution channel
b. a selective distribution channel
c. outsourcing
d. multi-sourcing
e. a portable inventory control system
Q:
A 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, is called:
a. outsourcing
b. mediation
c. intermediary distribution
d. benchmarking
e. disintermediaton
Q:
All of the following are business trends currently having a strong influence on the job of the supply chain manager EXCEPT:
a. the globalization of supply chain management
b. the advancement of computer technology
c. the outsourcing of logistical functions
d. replenishment benchmarking
e. electronic distribution
Q:
The Canadian lobster harvest requires special handling coupled with rapid transportation to ensure the cargo reaches destinations alive. The favored transportation mode would be:
a. air
b. water
c. truck
d. pipeline
e. rail
Q:
Which of the following transportation modes can most easily determine the location of a package en route between shipper and receiver?
a. air
b. truck
c. rail
d. pipe
e. water
Q:
Which of the following describes a disadvantage associated with water transportation?
a. cannot be used for international trade
b. high cost
c. capability
d. lack of speed
e. product weight restrictions
Q:
One major advantage of pipelines over other modes of transportation is:
a. availability
b. points served
c. flexibility
d. speed
e. reliability
Q:
The growers of Vidalia onions have determined that their chief priority for choosing a transportation mode within the United States is transit time. However, this must be tempered by practical cost considerations. In light of these considerations, Vidalia onion growers should use _____ to ship their onions.
a. railroads
b. motor carriers (trucks)
c. airplanes
d. water transportation
e. pipelines
Q:
The mode of transportation that provides the most accessibility is:
a. pipelines
b. airfreight
c. truck freight
d. water transport
e. railroad
Q:
All of the following are criteria used to choose a mode of transportation EXCEPT:
a. diversity
b. cost
c. transit time
d. reliability
e. traceability
Q:
A materials-handling system does all of the following EXCEPT:
a. dispatching the goods to temporary storage areas
b. selecting goods for shipment
c. receiving goods into the warehouse
d. transports the goods by rail, motor carriers, pipelines, or other modes
e. identifying, sorting, and labeling the goods
Q:
The goal of any effective materials-handling system is to:
a. reduce the time of the order-processing system
b. optimize the inventory control system
c. increase safety procedures
d. move items quickly with minimal handling
e. reduce the length of time a product is in the transportation subsystem
Q:
Which of the following moves inventory into, within, and out of a warehouse?
a. inventory control system
b. multichannel system
c. ERP control system
d. freight forwarder
e. materials-handling system
Q:
_____ provides time utility to buyers and sellers and aids manufacturers in managing supply and demand.
a. Containerization
b. Distribution
c. Storage
d. Direct sourcing
e. Channelization
Q:
When using _____, suppliers assume the responsibility for managing inventories at customer locations through the use of highly automated electronic messaging systems, which allow the exchange of information between vendors and customers.
a. automatic replenishment programs
b. distribution resources programs
c. materials requirement planning
d. automated logistics
e. dynamic order fulfillment programs
Q:
The goal of inventory control is to:
a. minimize inventory levels while maintaining an adequate supply to meet customer demands
b. maximize inventory levels to prevent any possibility of stockouts
c. determine order timing and order quantity
d. estimate proper usage rates
e. integrate JIT to reduce risks of obsolescence, theft, and damage
Q:
All of the following are types of inputs used in both materials requirement planning and distribution resource planning EXCEPT:
a. source of funding
b. lead times
c. mode of transportation to be used
d. outstanding orders
e. sales forecasts
Q:
ZuTech makes sensitive monitors for measuring exposure to hazardous materials. ZuTech has suffered substantial losses when moving products from the assembly line to the warehouse and shipping docks. ZuTech should consider reducing the number of times an item is moved in the warehouse by installing a(n):
a. inventory control system
b. materials-handling system
c. safety procedure to manage SKUs
d. order-processing system
e. outsourcing system
Q:
In which logistical component of the supply chain will you find distribution resource planning (DRP) a common feature?
a. production scheduling
b. transportation
c. order processing
d. materials-handling
e. inventory control
Q:
Which of the following is the inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer?
a. electronic data interchange (EDI)
b. distribution resource planning (DRP)
c. third party logistics firm (3PL)
d. materials requirement planning (MRP)
e. activity-based costing (ABC)
Q:
_____ is a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer's or a customer's needs.
a. The materials-handling system
b. An inventory control system
c. Direct sourcing
d. Contract logistics
e. Warehousing
Q:
_____ is the direct electronic transmission, from computer to computer, of standard business forms between two organizations. When this technique is used, orders can become virtually paperless, and information about the order is available to both firms.
a. Business prioritizing
b. Electronic data interchange
c. Just-in-time inventory
d. Real-time inventory
e. Direct sourcing
Q:
In which logistical component of the supply chain will you find electronic data interchange a common feature?
a. production scheduling
b. transportation
c. order processing
d. materials-handling
e. all of these
Q:
Which of the following is a member of a supply chain team that moves just-picked cotton to finished clothing and then to the consumer of that clothing?
a. the warehouse in which the cotton was temporarily stored
b. the ad agency that develops the promotion for the clothing
c. the farmer who picks the cotton
d. the trucking company that hauls the cotton to the clothing manufacturer
e. all of the choices
Q:
The supply chain team does all of the following EXCEPT:
a. leverages the capabilities of the logistics information system
b. embraces all parties who participate in moving the product to market
c. typically cuts across organizational boundaries
d. provides financing for distributors
e. orchestrates the movement of goods, services and information from the source to the consumer
Q:
One-quarter of Ace's 60,000 SKUs are vendor-managed through software called the "Collaboration" program. This software allows certain vendors to go online to get information to build their forecasts. The result of this application is fewer shipments, fuller pallets, increased pallets per truck, and a reduction in freight. Collaboration is part of Ace's:
a. logistics information system
b. materials requirement plan
c. EDI
d. RFID chips
e. distribution resources strategy
Q:
Which of the following provides the technological link connecting all of the logistics components of the supply chain?
a. logistics information system
b. materials requirement plan
c. EDI
d. RFID chips
e. distribution resources strategy
Q:
All of the following are logistics components of the supply chain EXCEPT:
a. trade promotions
b. production scheduling
c. inventory control
d. warehousing and materials-handling
e. order processing
Q:
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
Q:
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 non-equity agreement would require a(n) _____ relationship.
a. negotiated
b. functional
c. cooperative
d. hierarchical
e. segregated
Q:
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
Q:
_____ channel relationships include non-equity 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
Q:
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 has a(n) _____ channel relationship.
a. Arm's Length
b. functional
c. cooperative
d. hierarchical
e. integrated
Q:
_____ distribution channel relationships are situations where one company or several companies acting as one perform all channel functions.
a. Arm's Length
b. Functional
c. Cooperative
d. Hierarchical
e. Integrated
Q:
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
Q:
This summer, college student Pat is planning on selling kites at Panama City Beach. He has found some suppliers and 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
Q:
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
Q:
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
Q:
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 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
Q:
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
Q:
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
Q:
Canesta Company has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants (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
Q:
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
Q:
_____ 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
Q:
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 inline skates
e. Smith & Wesson firearms
Q:
Chewing gum and soft drinks are sold in grocery stores, service stations, convenience stores, drugstores, discount stores, and motel vending machines. This is a example of a(n) _____ distribution strategy.
a. exclusive
b. reciprocal
c. selective
d. horizontal
e. intensive
Q:
_____ 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
Q:
Canesta Company has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants (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
Q:
Canesta Company has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants (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
Q:
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
Q:
All of the following are benefits of supply chain management EXCEPT:
a. increases flexibility of supply chain activities
b. improves customer service
c. reduces supply chain costs
d. decreases cash flow
e. key means of differentiation for a firm
Q:
Supply chain managers are responsible for all of the following EXCEPT:
a. the management of information that flows through the supply chain
b. auditing the accounting practices of suppliers to ensure compliance with ABC accounting
c. coordinating the relationships between the company and its external partners
d. coordinating customer service activities
e. coordinating the sourcing and procurement of raw materials
Q:
A large automotive after-market business wanted to improve its current situation, which is characterized by excessive inventory, incomplete information, high logistics costs, slow reactions to environmental change, and lost profits at the retail level. Would supply chain management be of any help to the business?
a. Yes, supply chain management is designed to coordinate and integrate all the activities from raw materials to product consumption.
b. No, supply chain management is only applicable to distribution strategies for products being sold to the consumer market.
c. Yes, supply chain management would be very useful because it relies so heavily on benchmarking.
d. Yes, supply chain management would alleviate all channel conflict.
e. No, supply chain management requires an expensive investment of time and resources to make it worthwhile.
Q:
Peachtree Windows does not make a window until an order is received. It can promise delivery in five working days because of the excellent relationships it has established with its suppliers. The partnering relationship that Peachtree Windows has established with its suppliers indicates the use of:
a. supply chain management
b. yield management
c. channel networks
d. horizontal marketing channels
e. intensive distribution strategy
Q:
All of the following accurately describe supply chain management EXCEPT:
a. physical flow process
b. customer-driven
c. provides enhanced customer and economic value
d. plays the role of communicator of customer demand
e. relies on a "push" strategy
Q:
_____ 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.
a. Yield management
b. Channel power
c. Materials handling
d. Supply chain management
e. Physical distribution
Q:
The connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function is known as the:
a. channel of distribution
b. intermediary link
c. physical distribution integration
d. reseller network
e. supply chain
Q:
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
Q:
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
Q:
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
Q:
Customers can purchase HP 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
Q:
_____ 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
Q:
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
Q:
All of the following are typical channel members in marketing channels for consumer products EXCEPT:
a. retailer
b. agent/broker
c. industrial distributor
d. producer
e. wholesaler
Q:
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
Q:
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
Q:
The only way 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
Q:
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
Q:
Serenity is a manufacturer of outdoor fountains that are currently 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
Q:
_____ 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