Marketing Ch. 14

Front 1

Annual sales for Callaway Golf are approaching:

Back 1

$1 billion

Front 2

Which of the following does Callaway Golf NOT, market and sell its products through?

Back 2

using athletes as salespeople (i.e. like Tupperware)

Front 3

Partnerships are critical for Callaway Golf, which solution was implemented to ensure thatpartnerships were not jeopardized when they opened an online store?

Back 3

allowing retailers to take credit if they fulfill buyer's order within 24hrs

Front 4

One could describe Callaway's approach to marketing channels as:

Back 4

multichannel

Front 5

Callaway has a presence in over __________ countries

Back 5

100

Front 6

On your way into school today, you stopped by Mac's Milk to pick up a Red Bull for an energypickup. Mac's Milk is an example of a(n):

Back 6

marketing channel.

Front 7

Rob stops at the supermarket to purchase a package of Oreo and other groceries. He is theultimate consumer in a pipeline from the producer through intermediaries including the grocerystore. This pipeline is actually a:

Back 7

marketing channel.

Front 8

You probably own several pairs of blue jeans. Further, it is likely that you purchased thosejeans at retail stores located in a shopping mall. It is quite unlikely you bought the jeansdirectly from the manufacturer. In fact, most goods are brought to you via a(n) ____, whichconsists of several organizations involved in the process of marketing products or servicesand making them available for our use as consumers.

Back 8

marketing channel

Front 9

Two students, Nick and Lee, were studying for an upcoming exam in their Introduction toMarketing course. While studying the chapter on Marketing Channels and Wholesalers, Nickmade the following statement, "If it weren't for wholesalers and other intermediaries in thechannel of distribution, the products we buy would cost a lot less!" After contemplating Nick'sstatement, Lee said, "Wait a minute. We learned in class that channel intermediaries actuallymake marketing more efficient by minimizing the number of transactions necessary to sellproducts." Lee's statement refers to:

Back 9

value created by channel intermediaries

Front 10

A trucking company is shipping goods from a manufacturer in the USA up to Winnipeg,Manitoba. When the truck reaches the border, a(n) _____________ helps the truck clear theborder as they have legal authority to deal with customs.

Back 10

agent or broker

Front 11

A dealer is another more imprecise term for each of the following EXCEPT:

Back 11

manufacturer

Front 12

Several artists in Victoria, British Columbia, have created an arrangement to sell theirpaintings. They have set up an art gallery in downtown Charleston, so tourists and art loverscan look at their paintings and buy the ones they like. Each artist takes a turn acting as thesales clerk at the gallery. In terms of the marketing channel, the artist who is on duty in thegallery is acting as a(n):

Back 12

retailer.C. wholesaler

Front 13

Which of the following statements about the terms used for marketing intermediaries is true?

Back 13

A middleman is any intermediary between manufacturer and end-user markets

Front 14

Intermediaries make the selling of goods more efficient by:

Back 14

minimizing the number of sales contacts between producer and consumer.

Front 15

The three basic functions performed by intermediaries are:

Back 15

transactional functions, logistical functions, and facilitating functions.

Front 16

When Future Shop purchases the latest Dell computer from the manufacturer, with plans ofselling it in their stores, they are taking a(n) ___________ in case the product does not sell.

Back 16

risk

Front 17

Receiving a flyer from Future Shop is an example of which function completed by anintermediary?

Back 17

selling

Front 18

In terms of distribution, when marketing channel members are engaged in buying, selling, andrisk taking, they are performing _____ functions.

Back 18

transactional

Front 19

When Best Buy purchases a new Xbox 360 game to sell, they receive them in bulk quantitiesof 500. The Best Buy employees then separate them to individual products that consumers willpurchase. This is an example of which activity?

Back 19

sorting products

Front 20

In terms of distribution, when marketing channel members are engaged in assorting, storing,sorting, and transporting, they are performing _____ functions.

Back 20

logistical

Front 21

A consumer buys berries at Remlinger Farms, flour and sugar at a bulk food store, and milkand butter at a supermarket, then returns home to bake two dozen strawberry pies for a familyreunion. Which logistical function activity did the consumer engage in that is ordinarilyperformed by a retailer?

Back 21

assorting

Front 22

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 purchasedthe gloves, it purchased a case containing 100 pairs of identical gloves. Which logisticalfunction did the hardware store perform for Hunter?

Back 22

sorting

Front 23

Metro shopping centres receives ten bushels of Apples every day, they then sort them aseither "A," "B," or "C" grade apples and price accordingly. This activity is known as:

Back 23

grading

Front 24

In terms of distribution, when marketing channel members are engaged in financing, grading,marketing information and research, they are performing the _____ function.

Back 24

facilitating

Front 25

The Facilitation Manager at Costco is likely doing which of the following activities?

Back 25

financing, grading, and marketing information and research

Front 26

Before consumers see a movie, it is assigned a rating such as G or PG based on its languageand content. This rating system is most closely related to which facilitating function activityperformed by marketing intermediaries?

Back 26

grading

Front 27

A small electronics company manufactures a line of low to moderate quality stereocomponents that are distributed through wholesalers to mass market retailers such asWalmart. The electronics company has begun production of a small line of high quality,professional studio model components. How should the small electronics company distributeits new products?

Back 27

distribute through agents who sell to specialty electronics stores who will feature the newline

Front 28

Every Saturday morning you like driving out to the apple orchard and purchasing right from thefarmer. This purchasing form is considered:

Back 28

direct channel

Front 29

In a direct channel, all channel functions are performed by:

Back 29

producers.

Front 30

Direct Energy selling utilities contracts, door to door is an example of which type of marketingchannel?

Back 30

direct channel

Front 31

The Schwan Food Company of Marshall, Alberta, markets a full line of frozen foods in 49states and parts of Canada using door-to-door salespeople who sell from refrigerated trucks.This particular method of distribution is called a(n):

Back 31

direct channel.

Front 32

In an episode of the Andy Griffith television series, two local farmers were selling the producethey grew on their farms from the back of their pickup trucks to local people that drove by onthe road. The farmers selling their products without wholesalers or retailers were an exampleof a:

Back 32

direct channel of distribution.

Front 33

When Dell Computer sells made-to-order PCs via its website, it is an example of which type ofmarketing channel?

Back 33

Direct channel

Front 34

Longaberger baskets are sold at parties. A hostess invites friends and neighbours to admirethe baskets the company has sent to display and takes orders. In return, the hostess is able topurchase the baskets at a discount. Longaberger uses which type of marketing channel?

Back 34

direct channel

Front 35

In an episode of the Glee television series, members of the glee club were selling home-bakedcupcakes at school, to raise money. The students selling their cupcakes without anyintermediary would be an example of

Back 35

direct channel of distribution

Front 36

A channel that includes intermediaries between the producer and consumer and performnumerous channel functions are referred to as a(n)

Back 36

indirect channel.

Front 37

Indirect channels for consumer goods

Back 37

include intermediaries that are between the producer and consumer and perform numerouschannel functions.

Front 38

The most common indirect channel moves product from producer to retailer to consumer. Thistype of channel is most likely to exist in all of the following scenarios, except when:

Back 38

the cost of maintaining inventory is low.

Front 39

The most common indirect channel moves product from producer to retailer to consumer. Thistype of channel is most likely to exist with each of the following EXCEPT

Back 39

the retailer is small and buys in small quantities.

Front 40

Adding a wholesaler to the marketing channel for consumer goods is most common for

Back 40

low-cost, low-unit-value items.

Front 41

The most indirect channel for consumer goods incorporates agents, wholesalers, and retailersand is most commonly used when:

Back 41

there are many small manufacturers and many small retailers

Front 42

An intermediary that performs a variety of marketing channel functions involving selling,stocking, and delivering a full product assortment as well as providing financing for industrialgoods and services is known as a(n):

Back 42

business distributor

Front 43

International Products, Burlington, Ontario, a firm that sells industrial cleansers and lubricantswanted to sell its product to factories, hospitals, and labs in China, but it did not have thenecessary expertise. As a result International Products hired Asia Marketing & Management tosell, stock, and deliver a full assortment of products to the Chinese market. Asia Marketing &Management is an example of a(n):

Back 43

business distributor.

Front 44

Business distributors perform functions that are most like which intermediary in the consumergoods marketing channel?

Back 44

wholesalers

Front 45

MachineTools.com sells grinders, boring mills, and engine lathes. The website has listedgoods from over 700 machinery manufacturers, 2,500 distributors of new equipment, and 650dealers of used inventory for sale at the website. MachineTools.com relies on a wellestablishedchannel of manufacturers, distributors, and machinery dealers to provide themerchandise that is sold through this:

Back 45

electronic marketing channel.

Front 46

Facebook, Amazon.ca, Expedia.ca, and Dell.ca are all examples of:

Back 46

Electronic marketing channels

Front 47

A method of marketing which allows consumers to buy products by interacting with variousadvertising media without a face-to-face meeting with a salesperson is referred to as:

Back 47

Direct marketing

Front 48

Mail-order selling, catalogue sales, and telemarketing, are all examples of:

Back 48

direct marketing.

Front 49

When you order a sweater from an L. L. Bean mail-order catalogue, what type of marketingchannel are you and the company using?

Back 49

direct marketing

Front 50

Canada has gone from producing and marketing no diamonds to being the third-largestproducer of diamonds in the world. This is largely due to the construction of a(n)_____________.

Back 50

ice road

Front 51

Callaway Golf, by using an online and storefront strategy to sell the same product is anexample of which type of arrangement?

Back 51

Multichannel distribution

Front 52

Pharmaceutical companies sell to hospitals and clinics directly. They market their products tolarge retail chains that distribute the medicines to their stores across the nation. They also sellto drug wholesalers that sell to the remaining independent drugstores in Canada. Whatmethod of distribution is used by pharmaceutical companies?

Back 52

multichannel distribution

Front 53

The channel strategy demonstrated when Black & Decker sells its tools in the consumermarket under the Black & Decker name and basically the same tool to the business marketusing the DeWalt brand name. Black & Decker is using:

Back 53

multichannel distribution.

Front 54

Hybrid marketing channels or dual distribution are two terms that mean the same as

Back 54

multichannel distribution.

Front 55

Apple Inc. sells its products in its own retail stores, through its own website, and through otherretailers such as Best Buy. Apple is using:

Back 55

multichannel distribution.

Front 56

GE sells certain appliances directly to home and apartment builders but uses retail stores tosell other appliances to regular homeowners. GE is using:

Back 56

multichannel distribution.

Front 57

Hallmark sells its Hallmark greeting cards through Hallmark stores and select departmentstores, and its Ambassador brand of cards through discount and drugstore chains, thusreaching different customers with different brands. Hallmark is using:

Back 57

multichannel distribution.

Front 58

Josmar Farms, sells their products directly at their storefront, at a local farmers market,through a local convenience store, and through an online storefront using Facebook. They arereferred to as a(n):

Back 58

multichannel retailers

Front 59

A recent innovation in marketing channels whereby one firm's marketing channel is used tosell another firm's products is called a(n):

Back 59

strategic channel alliance

Front 60

Kraft distributes Starbucks coffee in supermarkets. This is called a(n):

Back 60

strategic channel alliance.

Front 61

Which type of marketing channel arrangement is good for a firm to use in internationalmarketing where the creation of marketing channel relationships is expensive and timeconsuming?

Back 61

strategic channel alliance

Front 62

Abbott Laboratories, a manufacturer of several popular over-the-counter medications,warehouses and delivers all of 3M's medical and surgical products to hospitals across thenation. The agreement between Abbott Laboratories and 3M is an example of:

Back 62

a strategic channel alliance.

Front 63

Meyers, Inc. is a Canadian company that manufactures and distributes coffee products inCanada Because of the wide popularity of its products in the Canada, Meyers wants to initiatedistribution internationally as soon as possible. The most efficient distribution arrangement interms of cost and time for Meyers Inc. to use would be:

Back 63

strategic channel alliance

Front 64

When Kraft Foods uses the distribution system of Ajinomoto, a major Japanese foodcompany, to market its Maxwell House coffee in Japan. It is employing a(n) ___________strategy.

Back 64

strategic channel alliance

Front 65

Which limited-service wholesalers perform no facilitating functions?

Back 65

cash-and-carry wholesalers and truck jobbers

Front 66

Which type of wholesaler carries a broad assortment of merchandise and performs all channelfunctions?

Back 66

general merchandise wholesaler

Front 67

Bauer Sports Inc. is a wholesaler that specifically focuses on hockey skates, hockey helmets,and hockey gloves. Bauer Sports Inc. is likely a(n):

Back 67

specialty merchandise wholesaler

Front 68

Merchant wholesalers are independently owned firms that _____ the merchandise theyhandle.

Back 68

take title to

Front 69

All of the following are types of specialty merchandise wholesalers EXCEPT:

Back 69

televised home shopping networks.

Front 70

A regional manufacturer of dairy products has developed a frozen soy-based yogurt product. Itfeels the choice of distribution channel is critical to the product's success, especially since itwants to have the product distributed nationally. However, it will take some time before salestake off, and it wants to make sure the marketing program is consistent everywhere. It shoulduse:

Back 70

manufacturers' agents to sell to truck jobbers who in turn will deal with retailers.

Front 71

Which of the following is a type of merchant wholesaler?

Back 71

specialty merchandise wholesaler

Front 72

Which of the following is NOT a type of limited-service wholesaler?

Back 72

general merchandise wholesaler

Front 73

All of the following are hauled using the ice road built in Nunavut except:

Back 73

conveyer system

Front 74

The ice roads play a vital ________________ in the ____________ of Canada's growing diamondindustry.

Back 74

logistics function; supply chain

Front 75

A Ryder truck driver downloads delivery instructions from an onboard computer to help getsupplies for Saturn, an automobile manufacturer. This is part of Saturn's ___________.

Back 75

just-in-time inventory system

Front 76

Ryder Integrated Logistics is charged with making Saturn's JIT system work smoothly. A driveris equipped with a plastic key that plugs into an on-truck computer. The computer informs thedriver of all of the following except:

Back 76

all of these

Front 77

The purpose of implementing a vertical marketing system is to:

Back 77

achieve channel economies and create the maximum marketing impact

Front 78

Every morning, retailers electronically inform the Campbell Soup company that of theirdemand for all Campbell's products and the inventory levels in the distribution centres. TheCampbell Soup company is using _____________ links with retailers.

Back 78

EDI

Front 79

Dell computer's allows its customers to customize the type of computer based on individualneeds as opposed to premanufactured computers available in retail stores. An efficient supplychain supply chain may use all of the following characteristics except

Back 79

many storage facilities as possible

Front 80

Which of the following is TRUE when it comes to Dell Computer's transportation decisions?

Back 80

expensive transportation

Front 81

In the automotive industry, which of the following would represent a supplier network?

Back 81

Raw materials; Components; Subassembly

Front 82

Which of the following is NOT part of the automotive supply chain?

Back 82

Assembly

Front 83

Which of the following statements describes the key difference between merchant wholesalersand agents and brokers?

Back 83

Merchant wholesalers take title to merchandise and agents and brokers do not

Front 84

Manufacturer's agents:

Back 84

work for several producers and carry non-competitive, complementary merchandise in anexclusive territory.

Front 85

In 2000, Neurosmith, a new toy company, launched Music Blocks, a $70 set of electronicblocks that young children arrange in different combinations to create music and experimentwith sound. To get the toy into the hands of the consumers, Neurosmith chose to use a _____to be principally responsible for the transactional channel functions.

Back 85

manufacturer's agents

Front 86

Selling agents are agents who:

Back 86

represent a single producer and are responsible for the entire marketing function of thatproducer.

Front 87

Brokers are independent firms or individuals whose principal function is to:

Back 87

represent a single producer and are responsible for the entire marketing function of thatproducer.

Front 88

BizBuyer.com, ITRadar.com, and Onvia.com are all Internet companies that are called "gobetweens."If a business needs bids on installing a wastewater treatment center, it can visitone of these sites, list its requirements, and ask for bids. Since the purpose of these websitesis to put buyer and sellers together so that a sale can be made, these three websites can becategorized as:

Back 88

brokers.

Front 89

In 1997, office vacancy rates from Kansas City to San Jose hovered at or near a 10-year low.Like skilled labour at the time, choice office space was a scarce commodity. A business inKansas City, Missouri, looking to rent office space should have used a _____ to help it locatethe most suitable space at the best possible rate.

Back 89

broker

Front 90

Originally, filters for Mr. Coffee electric-drip coffee makers were sold through appliance andmass merchandise stores. When the company decided to sell the filters in stores wherecustomers purchased their coffee, what type of intermediaries would the company most likelyhave hired?

Back 90

food brokers

Front 91

Wholly owned extensions of the producer that perform wholesale activities are known as:

Back 91

Manufacturer's branches and sales offices

Front 92

A Ford-owned dealership is considered a branch office because it:

Back 92

carries a producer's inventory and performs the functions of a full-service wholesaler.

Front 93

Miele, makes high-end dishwashers, they have a sales office in Toronto, which only has demodishwashers, not for sale, but only for the sales process. When individuals place an order, theinventory is shipped directly from the manufacturer. Miele is considered a manufacturer's salesoffice in this case because: it:

Back 93

performs a sales function as an option to agents and brokers.

Front 94

Systems that are professionally managed and centrally coordinated marketing channelsdesigned to achieve channel economies and maximum marketing impact are known as__________ marketing systems.

Back 94

Vertical

Front 95

All of the following are examples of vertical marketing systems, except:

Back 95

commercial

Front 96

Cessna is considered the volume leader for the executive -jet market. It has been describedas "almost totally vertically integrated." This quote means that Cessna:

Back 96

achieves coordination of production and distribution through ownership, which results inmore control.

Front 97

A new company produces paint and other home decorating products. Its goal is to choose thebest marketing channel arrangement that would give it the most control and the least amountof conflict. Which marketing channel arrangement should this company choose?

Back 97

a corporate vertical marketing system

Front 98

Forward and backward integration usually take place under which marketing system?

Back 98

corporate vertical marketing system

Front 99

The Fox Entertainment Group counts among its assets a thriving TV production unit, aHollywood movie studio, 33 TV stations, a half-dozen national cable networks, and 21 regionalsports networks. Since most of the shows produced at its TV production unit and many of themovies made at its studio are made just for televising on its cable networks, FoxEntertainment Group is an example of a(n):

Back 99

corporate vertical marketing system.

Front 100

When a producer owns an intermediary at the next level down in the marketing channel, it iscalled:

Back 100

forward integration.

Front 101

Irving Oil, which refines gasoline and also operates retail gasoline stations, illustrates:

Back 101

forward integration

Front 102

Coppley has been a suit manufacturer in Hamilton, Ontario for over 100 years. They also ownseveral retail stores, where their products are for sale. Coppley uses:

Back 102

forward integration.

Front 103

Sears operates a network of warehouses as part of its distribution system. Sears also obtainsover 50 percent of its goods from companies that it partly or wholly owns. Sears is engagedin:

Back 103

backward integration.

Front 104

Walmart realized they could save significant shipping costs if they purchase a manufacturingcompany. This is an example of:

Back 104

backward integration

Front 105

Safeway supermarkets operate their own bakeries. This illustrates:

Back 105

backward integration

Front 106

Tim Hortons operates its own coffee-roasting facilities. This illustrates:

Back 106

backward integration.

Front 107

All of the following are examples of contractual vertical marketing systems, except:

Back 107

distribution-sponsored voluntary chains

Front 108

Which type of contractual vertical marketing system involves a contractual relationshipbetween a wholesaler and small, independent retailers to standardize and coordinate buyingpractices, merchandising programs, and inventory management efforts?

Back 108

wholesaler-sponsored voluntary chain

Front 109

Lighting One allows its members, retailers of lighting fixtures, to concentrate their buyingpower through wholesalers and more importantly plan collaborative promotional and pricingactivities. Lighting One is an example of a(n):

Back 109

retailer-sponsored cooperative

Front 110

Which type of contractual vertical marketing system involves small, independent retailersforming an organization that operates a wholesale facility cooperatively?

Back 110

retailer-sponsored cooperative

Front 111

As a McDonald's franchise owner, you most likely have a(n):

Back 111

contractual vertical marketing systems.

Front 112

A contractual arrangement between a parent company and an individual or firm that allows theindividual or firm to operate a certain type of business under an established name andaccording to specific rules is called:

Back 112

franchising.

Front 113

Jacob has developed a lawn care service that will revolutionize the lawn care industry. Jacob,however, has limited operating capital and still wants a wide distribution of his new product.Which of the following options might he choose?

Back 113

He can establish a contractual vertical marketing system (franchise).

Front 114

In the automobile industry, a manufacturer licenses dealers to sell its cars subject to varioussales and service conditions. This system is called a(n):

Back 114

Manufacturer-sponsored retail franchise systems

Front 115

In the soft-drink industry, the manufacturer sells its concentrate to wholesalers, who carbonateit, and market the finished product to retailers. This system uses a(n):

Back 115

manufacturer-sponsored wholesale

Front 116

Which type of vertical marketing system achieves coordination at successive stages ofproduction and distribution by the size and influence of one channel member rather thanthrough ownership?

Back 116

administered vertical marketing systems

Front 117

Procter & Gamble, given its broad product assortment ranging from disposable diapers todetergents, is able to obtain cooperation from supermarkets in displaying, promoting, andpricing its products. This channel arrangement is an example of a(n):

Back 117

administered vertical marketing system

Front 118

Walmart can obtain cooperation from manufacturers in terms of product specifications, pricelevels, and promotional support, given its position as the world's largest retailer.This channel arrangement is an example of a(n):

Back 118

administered vertical marketing systems

Front 119

Which of the following statements describes the most significant distinction between acorporate vertical marketing system and an administered vertical marketing system?

Back 119

Administered vertical marketing systems achieve coordination at successive stages ofproduction and distribution by the size and influence of one channel member rather thanthrough ownership.

Front 120

Because Procter & Gamble has a broad product assortment and is able to obtain excellentcooperation from supermarkets in displaying, promoting, and pricing its products, Procter &Gamble represents which type of vertical marketing system?

Back 120

administered vertical marketing systems

Front 121

Which of the following factors affects the final choice of a marketing channel by a producer?

Back 121

environmental factors

Front 122

Visa's website offers customers

Back 122

a way to find the nearest Visa ATM.

Front 123

All of the following are factors that affect the final choice of a marketing channel, except:

Back 123

political

Front 124

When Kraft Foods introduced Planters Trail Mix snack food, it was a low-involvementconvenience product. Which type of distribution should Kraft have used with this newproduct?

Back 124

intensive distribution

Front 125

Starbucks, Shoppers Drug Mart, and Tim Hortons are examples of __________ distribution

Back 125

intensive

Front 126

Breath mints, bottled water, and nail clippers would most likely use which density ofdistribution?

Back 126

intensive distribution

Front 127

The "Mink Mile" in Toronto or "Rodeo Drive" in California is known to have a high density ofhigh-end luxury goods that can only be found in these places. The manufacturers of thesegoods are following which distribution strategy?

Back 127

exclusive

Front 128

John Deere manufactures and distributes industrial and farm equipment. These typesequipment are considered to be specialty products. Which type of market coverage does thecompany use?

Back 128

exclusive distribution

Front 129

Which type of distribution density is used by Rolls Royce when the car manufacturer maintainsonly one dealership in any large metropolitan area?

Back 129

exclusive distribution

Front 130

For which of the following products would the manufacturer be most likely to use exclusivedistribution?

Back 130

Chanel perfume, Steinway pianos, and Baccarat crystal

Front 131

The density of distribution whereby a firm tries to place its products in a few retail outlets in aspecific area is called _____ distribution.

Back 131

selective

Front 132

Specialty products or services—for example, automobiles, some women's fragrances, men'ssuits, and yachts—will likely benefit most from:

Back 132

exclusive distribution

Front 133

The most common form of distribution intensity is:

Back 133

selective distribution

Front 134

The target market coverage and distribution intensity associated with shopping goods such asovercoats, work boots, and dining room furniture is called:

Back 134

selective distribution.

Front 135

Which type of market coverage is usually associated with shopping goods?

Back 135

selective distribution

Front 136

Hallmark Cards is able to maintain good dealer relationships because it limits the number andmaintains the quality of outlets through which it sells. Hallmark uses _____ distribution.

Back 136

selective

Front 137

IBM has long been perceived as the leader in computer technology. As such, for many yearsIBM computers were available only from selected, authorized IBM retailers. Currently, IBM haschanged its distribution strategy. Consumers can now purchase IBM computers at severalwell-known department and discount stores, including Walmart and Kmart, located throughoutthe country. Initially, IBM employed _____ distribution and made its products available onlythrough a single retail outlet in specific locations. Currently, as computers have become moreof a shopping good, IBM is using _____ distribution, as it seeks to broaden the degree of itsdistribution and make its computers available in several retail outlets in specific areas.

Back 137

exclusive; selective

Front 138

All of the following are major considerations for satisfying buyer requirements when designingdistribution channels, except:

Back 138

uniformity

Front 139

Channels are typically designed to satisfy one or more of four consumer interests. When amembership book club allows its members to use the Internet to notify the company whetherthey want to receive the next month's issue, the book club is appealing to which buyerrequirement?

Back 139

convenience

Front 140

Which buyer requirement would be most important in choosing a channel design for a financialservice?

Back 140

information

Front 141

Keiretsu is the term for:

Back 141

a vertical integration, as well as a social and economic bond between producers andintermediaries in Japan.

Front 142

The dominant member of a keiretsu is the:

Back 142

producer.

Front 143

What is calculated by the margins earned (revenues minus cost) for each channel memberand for the channel as a whole?

Back 143

profitability

Front 144

Dell sells its products to both Best Buy and Future Shop. Best Buy just ran an advertisementhighlighting how they sell the best Dell products available, and all other computer shops arebad retailers. This advertisement may lead to:

Back 144

Channel conflict

Front 145

The two types of channel conflict are:

Back 145

horizontal and vertical.

Front 146

Ford is having issues with some dealer-owned retail stores from a marketing perspective.Which type of conflict is Ford experience?

Back 146

Vertical conflict

Front 147

Which of the following is NOT a source of vertical conflict?

Back 147

when a manufacturer increases its distribution coverage in a geographic area

Front 148

Dell is concerned that Future Shop is not doing a very good job in selling their products. Thistype of conflict between a manufacturer and wholesaler is referred to as:

Back 148

Vertical

Front 149

What conflict is likely to occur when a manufacturer increases its distribution coverage in ageographical area?

Back 149

Horizontal

Front 150

John's Dealership and Fred's Best Cars, both sell GM vehicles. The type of conflict that ismost likely to occur between these two is:

Back 150

Horizontal

Front 151

Which conflict occurs when a franchised Cadillac dealer complains to General Motors thatanother franchised Cadillac dealer has located too close to its dealership?

Back 151

Horizontal

Front 152

When a channel member bypasses another member and sells or buys product directly, this istermed:

Back 152

disintermediation.

Front 153

While Maytag appliances have the leading brand name, its sales are third in the industry. Oneof the things the company has done to spur sales is to create a website where potentialcustomers can find the answers to the questions most asked during the appliance purchaseprocess. While Maytag considered using _____ (allowing customers to purchase at the site),Maytag decided against it and simply provides the name and address of the nearest Maytagdealers.

Back 153

disintermediation

Front 154

Which of the following types of vertical marketing systems is likely to experience the leastchannel conflict?

Back 154

corporate vertical marketing system

Front 155

The payments supermarkets receive in the form of money or free goods in exchange for shelfspace to display and stock products of producers are called:

Back 155

slotting allowances

Front 156

Conflict occurring between intermediaries at the same level in a marketing channel, such asbetween two or more retailers is called _____ conflict

Back 156

horizontal

Front 157

At P&G, a description for a job said: "set policies and terms for supermarkets to follow, withrelation to our key brands." This job description is most closely aligned with a(n):

Back 157

channel captain.

Front 158

Bombardier makes corporate jets. The aircraft company relies heavily on outside suppliers fordesign support and to share development costs and market risks. For its newest plane, theContinental, Bombardier has about 30 prime suppliers—about ten of those have been involvedsince the initial design phase. Furthermore, as the owner of the defunct Lear Jet Corporation,Bombardier is the leading marketer of corporate jets. Bombardier is an example of a:

Back 158

channel captain

Front 159

All of the following are sources of power determining which channel member will be thechannel captain, except:

Back 159

social power

Front 160

During the 1990s, Sports Port, a motorcycle and fishing boat retailer located in a smallnorthern Minnesota town, was the world's largest dealer for Crestliner fishing boats. In order tomeet the demand of his many customers, the owner of Sports Port worked with a wide varietyof channel members, ranging from the manufacturer of the boats to trucking firms, otherretailers, and even detailers. Such a diverse channel of distribution often resulted in channelconflict. However, due to his strong consumer following, the owner of Sports Port had thepower to resolve disputes between channel members. The owner of Sports Port served as the_____ in the channel of distribution.

Back 160

channel captain

Front 161

Lab Safety Supply is a large distributor of MRO items and a channel captain. It requires itssuppliers to meet strict quality standards. It now wants greater price breaks from its suppliersso it can promote lower prices in its newest catalogue. The source of Lab Safety Supply'spower is:

Back 161

its economic influence.

Front 162

When developing a distribution strategy, which of the following should marketers avoid if theywant to avoid the possibility of violating the Competition Act?

Back 162

exclusive dealing

Front 163

Producers can find it difficult to use dual distribution because:

Back 163

it can cause conflict between channel members.

Front 164

Dual distribution is considered illegal if:

Back 164

there is an attempt to lessen competition by eliminating wholesalers or retailers.

Front 165

Dual distribution can violate the Competition Act if the:

Back 165

manufacturer's behaviour is viewed as lessening competition by eliminating wholesalers orretailers.

Front 166

Vertical integration can lead to legal prosecution if:

Back 166

there is potential to lessen competition or create a monopoly.

Front 167

Questions of legality regarding tied selling and exclusive dealing would most likely occur in:

Back 167

franchising.

Front 168

Under the Competition Act, _____ with existing channel members may be illegal.

Back 168

refusing to deal

Front 169

Some manufacturers have tried to use the brand loyalty of their consumers to force retailers tocarry the manufacturers' products and none of their competitors. These manufacturers weretrying to force retailers to participate in:

Back 169

exclusive dealing.

Front 170

A fast-food franchisee is required by its franchisor to buy unmarked plastic eating utensils fromthe franchisor if the franchisee wants to use the cups, napkins, and other paper products withthe franchise logo. The franchisee can buy the identical utensils from a local supplier for halfthe price. This requirement would be an example of:

Back 170

a tying arrangement

Front 171

A supplier of light bulbs to several distributers states in their contract that they are only allowedto sell in Saskatchewan, even if customers outside of Saskatchewan are demanding to buythe light bulbs. This supplier has implemented a(n):

Back 171

resale restriction

Front 172

Activities that focus on getting the right amount of the right product to the right place at theright time at the lowest possible cost are called:

Back 172

logistics.

Front 173

UPS Logistics earned more than $1 billion in revenue in a recent year and is one of the fastestgrowing divisions of UPS. UPS Logistics designs and manages entire transportation andcustomer service networks for global clients that include Ford Motor Company and NationalSemiconductor. UPS Logistics:

Back 173

creates utility for these companies' customers

Front 174

Logistics is most closely related to which element of the marketing mix?

Back 174

place

Front 175

Kenny works at a warehouse in Edmonton where his job is to organize the flow of mineral oreinto the processing warehouse and then ensure the finished product, granite countertops aredelivered out to resellers. Kenny is most likely in which department?

Back 175

logistics management

Front 176

Logistics management is organizing the cost-effective flow of raw materials, in-processinventory, finished goods, and related information from point of origin to point of consumptionto:

Back 176

satisfy customer requirements.

Front 177

If you were to draw a graphic representation of marketing channels of distribution, it wouldmost likely resemble a(n):

Back 177

pipeline.

Front 178

All of the following are reasons for the increased emphasis on logistics systems EXCEPT:

Back 178

reregulation of the trucking and railroad industries to insure that price-gouging tactics will nolonger be practiced.

Front 179

Dramatic cost savings are possible when efficient transportation and information systems canreduce _____ costs.

Back 179

inventory

Front 180

John manages all of the activities from raw materials to finished product at Optimum SteelCompany. John is most likely focused on:

Back 180

supply chain

Front 181

Which aspect of marketing would best be described by the following? The manufacturer is thebody of the butterfly with many different suppliers accumulated on one side of the body for theleft wing and a large number of buyers collected on the other side to form the right wing.

Back 181

supply chain

Front 182

Customers currently link to Cisco's website to configure, price, and order its networkingequipment. Cisco then sends orders back out across the Internet to producers and assemblersincluding Celestica, Flextronics, Jabil, and Solectron. Products are built and tested to Ciscostandards, sometimes with procedures run remotely by Cisco. Most are then drop shipped tobuyers, untouched by human hands on Cisco's payroll. This is a description of Cisco's:

Back 182

supply chain.

Front 183

Which of the following statements describes how a supply chain differs from a marketingchannel?

Back 183

A supply chain includes suppliers that provide raw material inputs to a manufacturer

Front 184

The integration and organization of information and logistics across firms in a supply chain forthe purpose of creating and delivering goods and services that provide value to consumers isreferred to as:

Back 184

Supply chain management

Front 185

Customers currently link to Cisco's website to configure, price, and order its networkingequipment. Cisco then sends orders back out across the Internet to producers and assemblersincluding Celestica, Flextronics, Jabil, and Solectron. Products are built and tested to Ciscostandards, sometimes with procedures run remotely by Cisco. Most are then drop shipped tobuyers, untouched by human hands on Cisco's payroll. The individuals who monitor thesetransactions and make sure each is performed in a cost effective and timely fashion areengaged in:

Back 185

supply chain management.

Front 186

At the Saturn website, you can assemble your own car based on your preferences and pricepoint by choosing from thousands of versions, including the retailer-installed accessories youmight want. This easy task for you represents a challenge for Saturn's ____, who isresponsible for translating customer requirements into actual orders and arranging for deliverydates and financial arrangements for car dealers.

Back 186

supply chain manager

Front 187

Supply chain management impacts all of the following aspects of the marketing mix strategyEXCEPT:

Back 187

the target market selection decision.

Front 188

What is the first step in choosing a supply chain?

Back 188

understanding the customer

Front 189

Bombardier makes corporate jets and its strategy involves streamlining production activities,maintaining its reputation for quality, and reducing its costs. It has developed the Continental,an airplane assembled from just a dozen large component parts. While building planes withsubassemblies is not new, Bombardier is the first not to use vertical integration. All parts aresupplied by carefully chosen independent companies that share the development costs andmarket risk. In terms of its supply chain, Bombardier has

Back 189

harmonized its supply chain and its marketing strategy.

Front 190

At the Spring Creek Carriers warehouse in Ontario, a new truck just pulled into the warehouse.The staffs sort through all the goods on the truck and separate them out to separate loads thatwill go to different destinations on different trucks. This activity is referred to as:

Back 190

Cross-docking

Front 191

Cross-docking is most closely related to:

Back 191

efficient supply chain activities.

Front 192

The objective of information and logistics management in a supply chain is to minimizerelevant logistics costs and to:

Back 192

deliver maximum customer service.

Front 193

The objective of information and logistics management in a supply chain is to delivermaximum customer service and to:

Back 193

minimize relevant logistics costs.

Front 194

The computer system at Amazon's warehouse is integrated with their trucking company andsuppliers, so that when someone places an order online, everyone in the chain receives anotice. This system is referred to as a(n):

Back 194

Electronic data interchange

Front 195

Schneider National is a logistics firm that places on-board computers in each of its trucks. Byusing communication satellites, the Schneider's customer service representatives located inGreen Bay, Wisconsin, can tap into a truck's on-board computer to find out exactly when acustomer's order will arrive and the specific items included in the order. Schneider National isusing a(n) _____ to provide more meaningful information to its customers.

Back 195

electronic data interchange

Front 196

Prudential HealthCare, managed care plan, recently implemented a system that links itsinternal systems to the corporate networks of large subscribers. This lets benefits managers atcompanies enroll new employees themselves—rather than sending paperwork or dialingPrudential's call centre. It also allows people to check their eligibility and claim status, orchange doctors at any hour of the day. The system that was implemented is most likely a(n):

Back 196

extranet

Front 197

Winemaker Robert Mondavi Corp. buys satellite images from NASA to spot problems in itsvineyards and aims to push those images out over a(n) _____ to its independent growers thisyear. So Mondavi will help growers avoid vineyard problems and improve the grapes it buys.

Back 197

extranet

Front 198

Spring Creek Careers has an area on their website, a secured portal, for customers to log intoand place a pickup/delivery order. This portal is referred to as (an):

Back 198

Extranet

Front 199

Devlin Applied Design, a Canadian company, developed a system for BASF to allow NorthAmerican body shops to purchase materials such as paint and sandpaper directly via the web.Since body shop professionals are typically not web savvy, Devlin designed a simple, userfriendly, visual interface that allows users intuitively to order products via computer. Thesystem that was designed is most likely a(n):

Back 199

extranet

Front 200

Whitney Museum of American Art implemented a system to allow it to work cost-effectivelywith curators from around the world to plan exhibitions, using threaded discussion and onlinegathering of images and documentation from museums and collectors all over the world. Thesystem that Whitney implemented is a(n):

Back 200

extranet

Front 201

In physical distribution decisions, total logistics cost includes each of the following EXCEPT:

Back 201

manufacturing.

Front 202

When completing their financial statements at the end of the year, TransForce, a truckingcompany, included expenses associated with transportation, materials handling andwarehousing, inventory, stockouts, and order processing under which category?

Back 202

Total logistics cost

Front 203

Which of the following is an element of total logistics cost?

Back 203

inventories

Front 204

Which of the following best describes the goal of a firm's combination of inventory andtransportation costs?

Back 204

minimize the sum of required inventory and transportation costs

Front 205

Suppose a large retail chain is considering increasing the number of distribution centres thatserve its retail stores from 6 to 20. If the number of suppliers, retail outlets, and customersremain unchanged, which of the following statements accurately describes what will happenas a result of this expansion?

Back 205

Total inventory in the warehouse system will increase

Front 206

The customer service concept implies firms should:

Back 206

set customer service levels and logistic costs simultaneously in order to achieve strategicgoals.

Front 207

Walmart ensures its customers, those who order online, the ability to pick-up that good within24 hours at the nearest store. From a transportation perspective, which factor below has thebiggest stake at risk to ensure the goods arrive within 24 hours?

Back 207

customer service

Front 208

Which of the following customer service components is likely to be most critical for Ford whenit purchases new-to-the-manufacturer automobile tires (tires put on new Ford cars)?

Back 208

dependability and on-time delivery

Front 209

Supply chain managers balance total logistics cost factors against customer service factors.Customer service factors include:

Back 209

time, convenience, communication, and dependability.

Front 210

The lag from ordering an item until it is received and ready for use is called:

Back 210

order cycle time.

Front 211

Walmart is trying to decrease its ______________ for products announced at trade shows andavailable in-store for purchase.

Back 211

lead time

Front 212

Replenishment time may be more important to retailers or wholesalers than consumers.Replenishment time is sometimes referred to as:

Back 212

order cycle time.

Front 213

Saks Fifth Avenue employs a quick response system to order fast-moving fashion items. Saks'point-of-sales scanner records each sale. When stock falls below a minimum level, the systemautomatically sends an electronic order to the vendor (e.g., Donna Karan), which processesthe order within 48 hours. This system has effectively reduced ____.

Back 213

customer response cycle

Front 214

Many organizations have realized that customer service is a key element of supply chainmanagement. Firms the world over have discovered that customer service is closely related tocustomer satisfaction and the sale of goods and services. The logistics manager who seeks toprovide clients with complete customer service must satisfy those clients in terms of each ofthe following EXCEPT:

Back 214

materials handling and warehousing costs.

Front 215

Quick response and efficient consumer response delivery systems are most closely relatedto:

Back 215

just-in-time inventory strategies

Front 216

A current emphasis in supply chain management is to make the process of ordering as simpleas possible, often through electronic data and inventory systems that are called:

Back 216

quick response and efficient consumer response delivery systems.

Front 217

All of the following are considered key logistic functions in supply chain, except:

Back 217

order cycle time.

Front 218

All transportation modes can be evaluated by using all of the following criteria, except:

Back 218

customer service

Front 219

When Walmart is evaluating between trucking and using the train to distribute their productsfrom warehouse to store, they note that using the train can only occur once per week, whiletrucking can happen every day. These two modes are likely being evaluated on:

Back 219

frequency

Front 220

The four key logistical functions in a supply chain include transportation, warehousing andmaterials handling, inventory management and:

Back 220

order processing

Front 221

Third-party logistics providers are firms that perform most or all of the logistics functions that:

Back 221

manufacturers, suppliers, and distributors would normally perform themselves

Front 222

Coldwater Creek is a mail-order company. Because of its proficiency at filling orders, it hascontracts to fill orders received by several e-commerce companies. Coldwater Creek is anexample of a:

Back 222

third-party logistics provider

Front 223

Optimum Inc. works with manufacturers, suppliers, and distributors to manage their shippingand logistic needs. Optimum Inc. would likely be considered a(n):

Back 223

Third-party logistics provider

Front 224

All transportation modes can be evaluated using all of the following basic service criteriaEXCEPT:

Back 224

tangibles.

Front 225

Which of the following statements about railroads is NOT true?

Back 225

Railroads always exhibit complete pickup and delivery.

Front 226

The Montana Coal Company needs to move its coal to intermediaries on the East coast whoin turn will sell it to end users. The best means of transportation for the company to employunder normal conditions is:

Back 226

railroads.

Front 227

Which of the following statements about air carriers is true?

Back 227

They are commonly used for perishable flowers, clothing, and electronics parts.

Front 228

The two types of warehouses are:

Back 228

distribution centres and storage warehouses.

Front 229

A Costco warehouse holds items for the shortest time possible in order to have very efficientlogistics systems. This warehouse is best described as a(n):

Back 229

distribution centre.

Front 230

Which of the following statements describes a major benefit of distribution centres?

Back 230

Distribution centres emphasize speed and moving stored goods out as soon as possible.

Front 231

Moving goods over short distances into, within, and out of warehouses and manufacturingplants is called:

Back 231

materials handling.

Front 232

One of the problems associated with materials handling is:

Back 232

a high rate of loss and damage.

Front 233

Which of the following statements is NOT a justification for carrying inventory?

Back 233

It promotes purchasing and transportation cost increases.

Front 234

Which of the following is an example of a capital cost that would be considered a part ofinventory costs?

Back 234

opportunity costs resulting from tying up funds in inventory instead of using them in other,more profitable investments

Front 235

Which of the following is an example of an inventory service cost that would be considered apart of inventory costs?

Back 235

costs such as insurance and taxes that are present in many states

Front 236

Which of the following is an example of a storage cost that would be considered a part ofinventory costs?

Back 236

warehousing space and materials handling costs

Front 237

Which of the following is an example of a risk cost that would be considered a part of inventorycosts?

Back 237

costs due to possible loss, damage, pilferage, or obsolescence

Front 238

Toyota Manufacturing is well-known for having parts arrive right when they need them in themanufacturing process of their vehicles. This is known as the:

Back 238

just-in-time concept.

Front 239

Alberto Culver Canada is the number three provider of hair care products in Canada. It first setup operation in downtown Etobicoke, Ontario in 1961. By 1966, it had to move its facility to theedge of town so that it was closer to its raw materials suppliers and, thus, would be able tooperate with very low inventories and require suppliers to make fast on-time deliveries. So in1966, Alberto Culver Canada implemented what today is called a(n):

Back 239

just-in-time system.

Front 240

The just-in-time concept requires very low inventories but fast, on-time delivery. When mustparts needed for production arrive from suppliers?

Back 240

neither before nor after they are needed

Front 241

Which of the following statements about the just-in-time (JIT) system is true?

Back 241

The JIT system is used in situations where demand and forecasting are reliable.

Front 242

Scott Baldwin, the owner of The Computer Company, located in Stillwater, Oklahoma,specializes in creating customized personal computers for home use. Baldwin buys basiccomputer components from mail-order companies and then upgrades the computers to fit thespecific needs of each customer. In years past, Baldwin carried a large inventory of harddrives, CD-ROMS, motherboards, memory upgrades, and other computer components. Morerecently, Baldwin has decided he can't afford to maintain a large inventory of components.Instead, The Computer Company maintains a very low inventory and relies on mail-ordersuppliers to provide fast, on-time delivery of components as they are needed. The ComputerCompany is using:

Back 242

a just-in-time inventory supply system.

Front 243

An inventory-management system whereby the supplier determines the product amount andassortment a customer, such as a retailer, needs and automatically delivers the appropriateitems is known as a(n):

Back 243

vendor-managed inventory

Front 244

Pharmaceutical companies such as Eli Lilly and SmithKline Beecham use a system to makesure retailers carrying their products maintain predetermined inventory levels in stock. Thepharmaceutical companies do this by a daily monitoring of sales at individual stores and willautomatically ship products out when the stores are running low. This is called a(n):

Back 244

vendor-managed inventory

Front 245

At the end of a recent year, Solectron, Milpitas, California, an electronics contractor, made halfof his purchases under vendor-managed inventory programs. Solectron:

Back 245

used a system in which its suppliers determined the product amount and assortment thatshould be in stock.

Front 246

The process of reclaiming recyclable and reusable materials, returns, and reworks from thepoint of consumption or use for repair, remanufacturing, redistribution, or disposal is termed:

Back 246

reverse logistics

Front 247

Hi-Tech Recycling Canada, a computer and electronics recycling firm based in Toronto, is alucrative business that focuses on the disposal of obsolete computer systems. Every monitorhas four to six pounds of lead, which is mixed with phosphorous to protect users fromradiation. The problem is that if the computers are thrown away in landfills, the lead and thephosphorous can get into the water supply, which is why many landfills won't acceptcomputers. Hi-Tech Recycling Canada is divided into different divisions for taking care ofcomputer board and memory recovery (which can often be recycled). The monitors it disposesof in accordance with legal regulations. Hi-Tech Recycling Canada has made a business outof:

Back 247

reverse logistics.

Front 248

Reverse logistics is:

Back 248

the process of reclaiming recyclable and reusable materials, returns and reworks from thepoint of consumption or use for repair, remanufacturing, redistribution, or disposal.

Front 249

Amazon uses supply chain and logistics management to:

Back 249

manage the flow of products from its suppliers to it distribution centres and the flow ofcustomer orders from the distribution centres to individual's homes.

Front 250

According to the text, which of the following sales growth strategies will Amazon most likely beusing in the future?

Back 250

sales of books, CDs, and videos