Which of the following would be considered an upstream partner in a company's supply chain? |
B) a firm that provides technical expertise in the production of a product |
Which of the following is true of downstream channels in a company's supply chain? |
E) They form an intermediary link between the company and its customers |
A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system. |
D) value delivery network |
________ are sets of interdependent organizations that help make the product or service of a company available for use by consumers or business users. |
C) Marketing channels |
Producers use marketing intermediaries because they ________. |
A) create greater efficiency in making goods available to target markets |
From the economic system's point of view, the role of marketing intermediaries is to ________. |
E) transform the assortments of products made by producers into the assortments wanted by consumers |
Which of the following is true of a direct marketing channel? |
C) It does not use any intermediaries. |
Which of the following creates the shortest distribution channel between a producer and a customer? |
D) direct marketing |
In which of the following situations is a producer guaranteed full control over product sales? |
B) a direct marketing channel |
A firm that uses direct marketing would most likely sell its products through ________. |
E) the company Web site |
Crowbar Records used to sell its music CDs through a network of retail outlets, record stores, and music dealers but stopped using these agents with the advent of MP3 technology. Crowbar now sells its music independently on its Web site, through personal mail, and on social networking sites. Which type of marketing system has Crowbar most likely adopted? |
D) a direct marketing channel |
Which of the following is a marketing intermediary? |
D) retailers |
Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain? |
D) Abundon |
Mintel Agro provides raw materials in the form of agricultural products to Kiltmark Food Company. Kiltmark produces flour-based edible products, which it distributes to a wholesale company called Yellowstar Trading. Yellowstar Trading then sells Kiltmark products to the discount retailer, Stroos. Stroos sells the products to consumers. Which of the following is considered a marketing intermediary in these transactions? |
D) both Yellowstar Trading and Stroos |
Which of the following is an example of a horizontal conflict in a distribution channel? |
B) a Ford car dealer complaining that another Ford dealer is underpricing the same models |
Vertical conflicts in distribution channels are conflicts that occur between ________. |
B) different levels of the same channel |
Orion Steel is the chief provider of metals to Accline Cars, which manufactures two models of vehicles-cars and large buses. Accline dealers sell the firm's cars to individual citizens, but buses are sold directly to government entities. In such a distribution channel, which of the following would be considered a vertical conflict? |
E) a conflict between Accline Cars and its dealers |
Jupiter Steel is the chief provider of metals to Greystone Motors. Greystone Motors has two models of cars-one for commercial and ordinary consumers and another for professional car racing teams. Greystone Motors has designated dealers to sell its commercial cars to consumers, while racing cars are sold directly to the racing teams. In such a distribution channel, which of the following would be considered a horizontal conflict? |
C) a conflict between two Greystone Motors car dealerships |
Which of the following is true of a conventional distribution channel? |
A) It has each channel member acting as a separate business unit trying to maximize its own profits. |
In a ________, producers, wholesalers, and retailers act as a unified system. In such a structure, one channel member owns the others, has contracts with them, or has so much power that they all cooperate. |
E) vertical marketing system |
Which of the following is true of a vertical marketing system? |
E) It has one channel member owning all the other channel members or has contracts with all other channel members. |
A(n) ________ marketing system combines successive stages of production and distribution under single ownership, where channel leadership is established through common ownership. |
B) corporate vertical |
A(n) ________ marketing system is a marketing system in which independent firms at different levels of production and distribution join together through binding agreements. |
C) contractual vertical |
Which type of channel arrangement does a franchise organization most likely follow? |
C) contractual vertical marketing system |
Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It invites proposals from independent dealers who are willing to set up exclusive showrooms that only sell Rage's superbikes. Chosen dealers will sell and service the superbikes, and Rage will oversee national advertising. This is most likely an example of a(n) ________. |
C) manufacturer-sponsored retailer franchise system |
Pastaliano is a restaurant based in Illinois that exclusively sells Italian food. Pastaliano sells the rights to its recipes to a British firm, Clover Trading, which then opens an outlet in London under the Pastaliano brand name. Which kind of channel arrangement does Pastaliano most likely have with Clover Trading? |
D) a contractual vertical marketing system |
In a(n) ________ marketing system, leadership over production and distribution is assumed through the size and power of one or a few dominant channel members. |
E) administered vertical |
Sonic Shack, an audio equipment retailer, signs an agreement with PineWire, a renowned electronics company, to sell PineWire products. The deal requires Sonic Shack to provide PineWire products with superior displays, shelf space, and promotion compared to competing products. Sonic agrees to these terms as PineWire products command a huge share in the market. Which of the following types of channel arrangements do PineWire and Sonic Shack most likely have? |
A) administered vertical marketing system |
A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ________. |
D) horizontal marketing system |
TruMart, a leading retail chain, decides to open a restaurant inside its stores, so the firm partners with MeatMe, a popular burger chain. MeatMe opens a restaurant inside TruMart. The MeatMe chain of restaurants also has a deal with Westman Cola to serve only Westman soft drinks at its outlets. This arrangement will benefit all three companies. What kind of channel arrangement is being followed in this case? |
B) horizontal marketing system |
GreatWords is a book retailer. Due to the increasing demand for audiobooks, the firm decides to sell audiobooks in its stores. GreatWords signs a deal with Carpem, a leading producer of educational audiobooks. According to the deal, GreatWords will sell only Carpem's audio titles in its stores, while Carpem will not sell its books through other retailer stores. GreatWords profits from Carpem's popularity while Carpem, in return, enjoys better sales. This is most likely an example of a(n) ________ marketing system. |
E) horizontal |
Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber's lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the tires and its expertise on the racing industry. Which term best describes Faber's channel arrangements? |
D) multichannel distribution system |
Clara's, a cosmetics manufacturer, sells many of its products through retail outlets. However, the firm sells a few expensive, popular products only through direct selling methods. What kind of channel arrangement does Clara's follow for all of its products together? |
B) multichannel distribution system |
For over ten years, Erudite, a publishing and educational company that produces college textbooks, has been selling its books online through studysmart.com, a popular online retailer that sells textbooks published by different companies. Recently, Erudite stopped selling its books through studysmart.com and set up its own website for selling its books. This change in channel organization is called ________. |
A) disintermediation |
________ distribution is a product distribution strategy that involves stocking a product in as many outlets as possible. |
C) Intensive |
Which of the following is true of an intensive distribution strategy? |
B) It strives to make products available where and when consumers want them. |
________ distribution gives a limited number of dealers the sole rights to distribute a company's products in their territories. |
D) Exclusive |
Selective distribution is a strategy in which ________. |
A) more than one but fewer than all willing intermediaries are used by a seller |
________ distribution gives producers good market coverage with more control and less cost than does intensive distribution. |
B) Selective |
When a seller requires that only certain dealers carry its products, its strategy is known as ________. |
E) exclusive distribution |
Which of the following is an advantage of exclusive dealing between a seller and a dealer? |
D) The dealer obtains a steady source of supply and more support from the seller. |
________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its products. |
C) Full-line forcing |
Which of the following is true of an exclusive dealing arrangement between a producer and a dealer? |
E) It does not allow other producers to sell to that dealer. |
The Memphis Rock chain of restaurants has a deal with WestEnd Cola, according to which it will serve only WestEnd sodas at its restaurants. What strategy has most likely been adopted by WestEnd Cola? |
C) exclusive dealing |
Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman Gray's products at their outlets. What kind of marketing strategy has Bateman Gray adopted with its car dealers? |
B) exclusive dealing |
PinWheel, a renowned electronics company, has an arrangement with SoundBite, an audio equipment retailer. Through the agreement, Soundbite is to promote and sell PinWheel's audio electronics and give PinWheel products better shelf space than competitors' products. The agreement also requires that SoundBite sell additional non-audio PinWheel products at all SoundBite stores. Which term best describes PinWheel's strategy? |
C) full-line forcing |
In supply chain management, moving products and materials from suppliers to the factory is known as ________ logistics. |
C) inbound |
Outbound logistics refers to moving ________. |
D) products from the factory to resellers |
Reverse logistics refers to moving ________. |
A) unwanted, excess products from resellers to producers |
In a logistics system, minimizing distribution costs most likely involves ________. |
B) large shipping lots |
A ________ is highly automated and designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible. |
A) distribution center |
Which of the following is a difference between storage warehouses and distribution centers? |
B) Storage warehouses store goods for moderate to long periods, while distribution centers are used to move goods rather than just store them. |
In a just-in-time logistics system, ________. |
A) retailers carry small inventories of merchandise to last for only a few days |
Which of the following is true of RFID or "smart tag" technology? |
E) "Smart shelves" can tell when it is time to reorder and can place orders automatically. |
Which of the following is a cost-effective mode for shipping large amounts of bulk products-coal, sand, minerals, and forest products-over long distances? |
E) railroads |
Which of the following is most efficient for short hauls of high-value merchandise and is highly flexible in its routing and time schedules? |
C) trucks |
Which mode of transportation is best for carrying perishable goods to distant markets? |
D) air carriers |
________ involves combining two or more systems of transportation to move products. |
E) Multimodal transportation |
The use of both rail and trucks for transporting goods is called ________. |
C) piggybacking |
Under ________, a customer shares real-time data on sales and current inventory levels with a supplier, and the supplier then takes full responsibility for managing inventories and deliveries. |
B) vendor-managed inventory systems |