Ch15 Managing Marketing Channels Test Questions & Answers - Answer Key + Test Bank | Marketing 13th Edition by Kerin and Hartley by Roger A. Kerin, Steven W. Hartley. DOCX document preview.
Chapter 15
Managing Marketing Channels and Supply Chains
Multiple Choice Questions
1. | Callaway Golf markets its products through on- and off-course golf retailers and sporting goods retailers, and also has its own online store, which makes it a full-fledged
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2. | Providing Callaway's authorized golf retailers and sporting goods retailers with the right products, at the right place, at the right time, and in the right quantity and condition is the responsibility of the company's
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3. | Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users are referred to as a
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4. | You probably own several pairs of shoes. Further, it is likely you purchased those shoes at retail stores located in a shopping mall and not directly from the manufacturer. In fact, most products are brought to you from a series of other individuals or firms known as a
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5. | A __________ can be compared to a pipeline through which water flows—making possible the flow of products and services from a producer, through intermediaries, to a buyer.
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6. | Jay stops at the shopping mall to purchase a new pair of jeans from the Diesel store. He is the ultimate consumer in a pipeline from the producer through intermediaries, including the clothing store. This pipeline is actually a
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7. | A middleman is
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8. | Any intermediary between a manufacturer and end-user markets is referred to as a
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9. | A(n) __________ is any intermediary between a manufacturer and end-user markets.
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10. | Jaffar (Jeff) Tabrizi is the owner and president of Tabrizi Oriental Rugs located in Toronto, Canada. He personally shops the world over, handpicks, and orders authentic and beautiful handmade rugs. He has them shipped to Canada, where he sells them through his brick-and-mortar stores and his www.tabrizi.com website. In terms of the marketing channel, Tabrizi is acting as
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11. | Any intermediary with legal authority to act on behalf of the manufacturer is referred to as
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12. | Agent refers to
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13. | Several artists in Charleston, South Carolina, show and sell their work in an art gallery downtown. The gallery is owned by an art lover who does not buy the paintings but displays those from other artists. She only collects a percentage on each piece sold. In terms of the marketing channel, the gallery is
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14. | Wholesaler refers to
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15. | An intermediary that sells to other intermediaries, usually to retailers in consumer markets, is referred to as
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16. | A(n) __________ is an intermediary that sells to other intermediaries.
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17. | Establishments primarily engaged in selling grain and small farm products to retail feed stores would be classified as
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18. | An intermediary that sells to consumers is referred to as
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19. | Retailer refers to
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20. | A(n) __________ is an intermediary that sells to consumers.
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21. | Several artists in Charleston, South Carolina, have created an arrangement to sell their paintings. They have set up an art gallery in downtown Charleston so tourists and art lovers can look at their paintings and buy the ones they like. Each artist takes a turn acting as the salesclerk at the gallery. In terms of the marketing channel, the gallery is acting as
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22. | Your best friend just bought a longboard at BC Surf & Sport. In terms of the marketing channel, BC Surf & Sport is
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23. | Distributor is
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24. | An imprecise term for intermediaries that perform a variety of functions, including selling, maintaining inventories, extending credit, and so on, is
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25. | An even more imprecise term than distributor, __________ can mean the same as retailer, wholesaler, and more.
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26. | Automakers such as Chrysler, Ford, and General Motors utilize a __________ network.
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27. | Intermediaries performing a transactional function in distribution are engaged in buying, selling, and
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28. | The risk in a transactional function refers to
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29. | In terms of distribution, when marketing channel members are engaged in buying, selling, and risk-taking, they are performing __________ functions.
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30. | A marketing channel intermediary that purchases merchandise for resale at retail outlets is engaging in __________ function.
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31. | Purchasing products for resale or as an agent for supply of a product would be an example of __________ function.
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32. | Logistical function activities include __________ products and services.
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33. | When marketing channel members are engaged in assorting, storing, sorting, and transporting products and services, they are performing __________ functions.
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34. | Creating product assortments from several sources to serve customers is an example of a __________ function.
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35. | Assembling and protecting products at a convenient location to offer better customer service is an example of a __________ function.
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36. | Creating product assortments from several sources to serve customers is an example of a __________ function.
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37. | Physically moving a product to customers is an example of a __________ function.
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38. | When Hunter went to the hardware store looking for gloves to wear while refinishing a table, he bought one pair because that was all he needed. But when the hardware store purchased the gloves, it purchased a case containing 100 pairs of identical gloves. Which logistical function did the hardware store perform for Hunter and its other customers?
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39. | Facilitating function activities include
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40. | In terms of distribution, when marketing channel members are engaged in financing, grading, and marketing information and research, they are performing the __________ function.
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41. | Intermediaries perform facilitating function activities, which assist producers in making products and services more attractive to buyers. These activities include
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42. | Extending credit to customers is an example of a __________ function.
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43. | Inspecting, testing, or judging products and assigning them quality grades is an example of a __________ function.
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44. | Before consumers see a movie, it is assigned a rating such as G or PG based on its language and content. This rating system is most closely related to which facilitating function activity performed by marketing intermediaries?
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45. | Two students, Nick and Sean, were studying for an upcoming exam in their introduction to marketing course. While studying the chapter on marketing channels and wholesalers, Nick made the following statement: "If it weren't for wholesalers and other intermediaries in the channel of distribution, the products we buy would cost a lot less!" After contemplating Nick's statement, Sean said, "Wait a minute. We learned in class that channel intermediaries actually make marketing more efficient by making transactions easier." Sean's statement refers to
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46. | Marketing channels help create value for consumers through four utilities. These utilities are
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47. | A snack vending machine located in a university building creates both __________ utility.
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48. | Having a product or service where consumers want it is __________ utility.
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49. | Enhancing a product or service to make it more appealing to buyers is __________ utility.
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50. | A textile artist can buy fabric, thread, and batting, create an heirloom quilt, and then sell the finished work to customers in a kiosk decorated with some of the quilts produced to entice customers who shop at the local mall. By designing the quilts and kiosk with aesthetic value, the artist creates __________ utility.
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51. | An example of __________ utility involves intermediaries shipping goods to buyers of a product.
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52. | As the number of intermediaries between a producer and buyer increases, the channel is viewed as increasing in
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53. | A(n) __________ exists when producers and ultimate consumers deal one-on-one with each other.
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54. | When producers and ultimate consumers deal with each other one-on-one, it is referred to as
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55. | A direct channel exists when
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56. | In a direct channel, all channel functions are performed by
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57. | When Dell Computer sells made-to-order PCs to customers online via its website, it is an example of which type of marketing channel?
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58. | Schwan's Sales Enterprises of Marshall, Minnesota, markets a full line of frozen foods in 49 states and parts of Canada using door-to-door salespeople who sell from its refrigerated trucks. This particular method of distribution is referred to as
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59. | In an episode of the Glee television series, members of the glee club sold home-baked cupcakes at school to raise money. The students selling their cupcakes without any intermediary would be an example of
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60. | A channel that includes intermediaries that are between the producer and consumers and perform numerous channel functions is referred to as
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61. | Indirect channels for consumer products
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62. | A commonly used indirect channel moves product from producer to retailer to consumer. This channel is used when
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63. | A commonly used indirect channel moves product from producer to retailer to consumer. This channel is used when
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64. | The most indirect channel for consumer products incorporates agents, wholesalers, and retailers and is most commonly used when there
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65. | The most indirect marketing channel is employed where many intermediaries are used to help coordinate the distribution of the product. Which of the following products would most likely be marketed using this kind of channel?
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66. | A small electronics company has begun production of a small line of high-quality, professional studio-model components targeted at audiophiles who shop at thousands of specialty stores across the United States. How should the small electronics company best distribute its new products?
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67. | In marketing channels for business products, an intermediary that performs a variety of marketing channel functions including selling, stocking, delivering a full product assortment, and financing is referred to as
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68. | An industrial distributor is
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69. | Industrial distributors perform functions that are most like which intermediary in the consumer products marketing channel?
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70. | International Products, a Burlington, New Jersey, firm that sells industrial cleansers and lubricants, wanted to sell its product to factories, hospitals, and labs in China, but it did not have the necessary expertise. As a result, International Products hired Asia Marketing & Management to sell, stock, and deliver a full assortment of products to the Chinese market. Asia Marketing & Management is an example of
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71. | Internet marketing channels refers to
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72. | Using the Internet to make products and services available for consumption or use by consumers or organizational buyers is referred to as
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73. | Which of the following products or services must typically be provided by traditional and not by Internet marketing channels?
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74. | MachineTools.com sells grinders, boring mills, and engine lathes. Its website lists products from over 700 machinery manufacturers, 2,500 distributors of new equipment, and 650 dealers of used inventory for sale. MachineTools.com relies on a well-established channel of manufacturers, distributors, and machinery dealers to provide the merchandise that is sold through this
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75. | Allowing consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson is referred to as
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76. | Direct marketing channel refers to
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77. | Mail order selling, catalog sales, telemarketing, interactive media, and televised home shopping are all examples of
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78. | When you order a sweater from an L.L. Bean mail-order catalog, what type of marketing channel are you and the company using?
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79. | The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online is referred to as
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80. | Multichannel marketing is the blending of different __________ that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.
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81. | Multichannel marketing seeks to integrate a firm's electronic and delivery channels. Catalogs can serve as shopping tools for online purchasing, and websites can help consumers do their homework before visiting a store. By blending different communication and delivery channels, multichannel marketing
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82. | Multichannel marketing
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83. | An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product is referred to as
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84. | Dual distribution refers to
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85. | In some instances, firms pair multiple channels with a multibrand strategy. The purpose of this strategy is to __________ of the firm's family brand and differentiate its marketing channels.
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86. | Pharmaceutical companies sell some of their products to hospitals and clinics directly. They also market other products to large retail chains such as Walgreens that distribute them to their stores across the nation. In addition, they sell products to drug wholesalers that sell to the remaining independent drugstores in the United States. What method of distribution best describes the method used by pharmaceutical companies in this example?
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87. | Rather than compete with large greeting card companies for shelf space in supermarkets, several smaller card companies place their cards in pack-and-ship stores where the customer can mail a card on the spur of the moment, and in racks in car washes where customers who are waiting for their cars can browse and purchase cards. This is an example of which type of marketing channel strategy?
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88. | A practice whereby one firm's marketing channel is used to sell another firm's products is referred to as
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89. | Strategic channel alliance refers to
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90. | Which type of marketing channel arrangement is especially good for a firm to use in global marketing where the creation of marketing channel relationships is expensive and time-consuming?
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91. | Nestlé and General Mills have __________ to distribute General Mills products like Cheerios in about 140 markets worldwide.
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92. | Kraft Foods distributes Starbucks coffee in U.S. supermarkets and internationally. These firms are most likely using __________ strategy.
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93. | An example of __________ is when Kraft Foods uses the distribution system of Ajinomoto, a major Japanese food company, to market its Maxwell House coffee in Japan.
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94. | CPW (Cereals Partners Worldwide) is a __________ designed from the start to be a global business. It joined the cereal manufacturing and marketing capability of General Mills with the distribution clout of Nestlé.
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95. | The General Mills-Nestlé strategic channel alliance
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96. | Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact are referred to as
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97. | Vertical marketing system refers to
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98. | The three major types of vertical marketing systems are administered, corporate, and
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99. | The three major types of vertical marketing systems are corporate, contractual, and
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100. | Corporate vertical marketing system refers to
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101. | The combination of successive stages of production and distribution under a single ownership is referred to as
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102. | Which of the following statements regarding corporate vertical marketing systems is most accurate?
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103. | Which of the following statements regarding corporate vertical marketing systems is most accurate?
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104. | Which of the following statements regarding corporate vertical marketing systems is most accurate?
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105. | A large company produces paint and other home decorating products. Its goal is to choose the best marketing channel arrangement that will give it the most control over supply sources. Which marketing channel system should this company choose?
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106. | Cessna is considered the volume leader in the executive jet market. It has been described as "almost totally vertically integrated." This quote means that Cessna
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107. | A producer might own the intermediary at the next level down in a channel. This practice, called forward integration, is exemplified by Ralph Lauren, which manufactures clothing and also owns apparel shops. This is an example of
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108. | A new company produces paint and other home decorating products. Its goal is to choose the best marketing channel arrangement that would give it the most control. Which marketing channel system should this company choose?
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109. | When a producer owns an intermediary at the next level down in the marketing channel, it is referred to as
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110. | Forward integration means
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111. | Apple now operates over 400 Apple Retail Stores around the world to sell its innovative products such as the iPhone and iPad. Apple uses
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112. | When a retailer owns a manufacturing operation, it is referred to as
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113. | Tiffany & Co. manufactures about half of the fine jewelry items for sale in its stores and boutiques worldwide. Tiffany & Co. practices
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114. | A contractual vertical marketing system is an arrangement whereby
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115. | There are three variations of contractual systems: wholesaler-sponsored voluntary chains, retailer-sponsored cooperatives, and
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116. | There are three variations of contractual systems: wholesaler-sponsored voluntary chains, franchising, and
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117. | There are three variations of contractual systems: retailer-sponsored cooperatives, franchising, and
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118. | A vertical marketing system that involves a contractual relationship between a wholesaler and small independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management efforts is referred to as
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119. | IGA and Ben Franklin variety and craft stores are examples of
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120. | Which type of contractual vertical marketing system involves small independent retailers forming an organization that operates a wholesale facility cooperatively?
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121. | The arrangement in which small, independent retailers form an organization that operates a wholesale facility cooperatively is referred to as
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122. | Retailer-sponsored cooperative refers to
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123. | Ace Hardware is a national __________ that allows its members, retailers of paint and hardware products, to concentrate their buying power through wholesalers and more importantly plan collaborative promotional and pricing activities.
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124. | A contractual arrangement between a parent company and an individual or firm that allows the latter to operate a certain type of business under an established name and according to specific rules is referred to as
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125. | Franchising refers to
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126. | Franchising is one form of
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127. | There are four popular types of franchising: (1) __________, (2) manufacturer-sponsored wholesale franchise systems, (3) service-sponsored retail franchise systems, and (4) service-sponsored franchise systems.
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128. | There are four popular types of franchising: (1) manufacturer-sponsored retail franchise systems, (2) __________, (3) service-sponsored retail franchise systems, and (4) service-sponsored franchise systems.
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129. | There are four popular types of franchising: (1) manufacturer-sponsored retail franchise systems, (2) manufacturer-sponsored wholesale franchise systems, (3) service-sponsored franchise systems, and (4) __________.
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130. | The four most popular types of franchise arrangements are
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131. | Ford uses __________, whereby the company licenses dealers in North America to sell Ford automobiles subject to various sales and service conditions.
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132. | Jacob has developed a lawn care service that will revolutionize the lawn care industry. However, Jacob has limited operating capital and yet he still wants a wide distribution of his new product. Which of the following options would be the best choice for Jacob?
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133. | In the automobile industry, many companies use a __________, whereby a manufacturer licenses dealers to sell its cars subject to various sales and service conditions.
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134. | A(n) __________ is common in the soft drink industry where the manufacturer sells its concentrate to wholesalers, that carbonate it and market the finished product to retailers.
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135. | Firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others employ
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136. | A(n) __________ exists when a franchisor licenses individuals or firms to dispense a service under a trade name and specific guidelines.
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137. | A(n) __________ is common in the employment services and tax services industries where franchisors license individuals or firms to dispense a service under a trade name and specific guidelines.
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138. | The type of vertical marketing system that achieves coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership is referred to as
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139. | An administered vertical marketing system is a marketing system
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140. | Which of the following statements best describes the difference between a corporate vertical marketing system and an administered vertical marketing system?
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141. | Procter & Gamble can obtain cooperation from supermarkets in terms of displaying, promoting, and pricing its products, given its broad assortment of brand-name products. Which type of vertical marketing system does Procter & Gamble represent?
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142. | Walmart can obtain cooperation from manufacturers in terms of product specifications, price levels, and promotional support, given its position as the world's largest retailer. Walmart is an example of
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143. | When choosing a marketing channel or intermediary, it is important to ask three key questions: (1) Which channel and intermediaries will provide the best coverage of the target market? (2) Which channel and intermediaries will best satisfy the buying requirements of the target market? and (3) __________
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144. | In terms of target market coverage, density refers to the number of __________ in a geographical area.
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145. | In marketing, the term __________ is used to describe the number of stores in a geographical area.
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146. | The three degrees of distribution density are
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147. | When a firm tries to place its products or services in as many outlets as possible, the density of distribution is referred to as
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148. | Intensive distribution refers to
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149. | Candy bars most likely should be sold using which type of target market coverage?
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150. | Breath mints, bottled water, and newspapers most likely would use which type of distribution density?
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151. | When only one retailer in a geographical area carries a firm's products, the density of distribution is referred to as
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152. | Exclusive distribution refers to
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153. | There are three degrees of distribution density—one of these is intensive distribution. What is the extreme opposite of this degree of distribution density?
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154. | Retailers and industrial distributors prefer exclusive distribution for two reasons. One is that
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155. | Retailers and industrial distributors prefer exclusive distribution for two reasons. One is that
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156. | John Deere manufactures and distributes industrial and farm equipment. This type of equipment is considered to be a specialty product. Which type of market coverage does John Deere most likely use?
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157. | Bentley Motors makes one of the world's most prestigious automobile brands, targeting the ultra-luxury segment. Which type of market coverage does Bentley most likely use?
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158. | Which type of distribution density does Rolls-Royce use when the car manufacturer maintains only one dealership in any large metropolitan area?
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159. | Which type of distribution density does Piaget use when the maker of fine jewelry and watches distributes its products through a single retailer in select cities in the United States?
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160. | Manufacturers most likely would use exclusive distribution for which of the following products?
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161. | A level of distribution density whereby a firm tries to place its products in a few retail outlets in a specific geographical area is referred to as
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162. | Selective distribution refers to
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163. | Which type of distribution lies between the two distribution extremes and means that a firm selects a few retail outlets in a specific geographical area to carry its products?
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164. | The distribution intensity associated with products such as Dell's personal computers is referred to as
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165. | Which is the most common form of distribution intensity used today?
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166. | In choosing the appropriate marketing channel, a firm should consider the interests that buyers might want fulfilled. These interests fall into four broad categories: (1) __________, (2) convenience, (3) variety, and (4) pre- or postsale services.
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167. | In choosing the appropriate marketing channel, a firm should consider the interests that buyers might want fulfilled. These interests fall into four broad categories: (1) information, (2) convenience, (3) __________, and (4) pre- or postsale services.
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168. | In choosing the appropriate marketing channel, a firm should consider the interests that buyers might want fulfilled. These interests fall into four broad categories: (1) information, (2) convenience, (3) variety, and (4) __________.
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169. | All of the following are buyer requirements for choosing a marketing channel except
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170. | The most important consideration in choosing a marketing channel when buyers have limited knowledge or desire specific data about a product or service is to provide
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171. | Which buyer requirement would be most important in choosing a channel for a financial service for a consumer who is interested in setting up a retirement account?
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172. | Most Apple retail stores have a Genius Bar staffed with highly trained personnel who can help customers with their purchases of iPads, iPhones, and other Apple products and services. Which buying requirement is Apple satisfying with its Genius Bar?
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173. | Driving time, proximity, and hours of operation for stores, and the usability of a website are all examples of which buyer requirement?
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174. | By promising to change engine oil and filters quickly, Jiffy Lube is appealing to which buyer requirement?
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175. | Customer convenience is an important consideration when choosing a marketing channel. A commonly held view among website developers is the "__________" where consumers will abandon their efforts to enter or navigate a website if download time exceeds this amount of time.
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176. | Channels are typically designed to satisfy one or more of four consumer buying requirements. When a membership book club allows its members to use the Internet to notify the company that they want to receive the next month's issue, the book club is appealing to which buyer requirement?
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177. | Buyers are interested in having numerous competing and complementary items from which to choose. The buyer requirement for __________ is satisfied through the breadth and depth of products and brands that intermediaries carry.
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178. | Tylenol and Advil are two manufacturers of over-the-counter products for ailments such as colds, headaches, sore throats, arthritis aches, fever, and general pain. Both manufacturers seek distribution of their products through pharmacies such as Walgreens and CVS. These companies seek channels and intermediaries that will satisfy a buyer's desire for
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179. | Items such as large household appliances that require installation, delivery, and credit demonstrate the buyer requirement of
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180. | One consideration in choosing a marketing channel is profitability, which is determined by the margins earned for each channel member and for the channel as a whole. Based on this information, which of the following statements would be most accurate?
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181. | When one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals, it is referred to as
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182. | Channel conflict refers to
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183. | The two types of channel conflict are
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184. | Which of the following types of vertical marketing systems is least likely to experience channel conflict?
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185. | Conflict that occurs between two different levels in a marketing channel is referred to as
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186. | Vertical conflict is conflict that occurs between
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187. | Which of the following would be a source of vertical conflict?
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188. | Channel conflict that arises when one member bypasses another member and sells or buys products directly is referred to as
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189. | Disintermediation refers to channel conflict that arises when
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190. | While Maytag appliances have the leading brand name, its sales are third in the industry. One of the things the company has done to spur sales is to create a website where potential customers can find the answers to the questions they ask during the appliance purchase process. Although Maytag considered using a __________ strategy by directing customers to Maytag appliance stores it owns, the firm decided against it and simply chose to provide the names and addresses of all the retailers (Sears, Home Depot, etc.) that carry Maytag appliances.
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191. | Conflict occurring between intermediaries at the same level in a marketing channel, such as between two or more retailers that carry the same manufacturer's brands, is referred to as
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192. | Horizontal conflict refers to conflict that occurs between
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193. | Two sources of horizontal conflict are common, including when
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194. | Two sources of horizontal conflict are common, including when
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195. | Goodyear Tire dealers became irate when Goodyear Tire Co. decided to sell its brands through Sears, Walmart, and Sam's Club. Many switched to competing tire makers. This is an example of
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196. | All the following sources produce channel conflict except
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197. | A channel member (producer, wholesaler, or retailer) who coordinates, directs, and supports other channel members is referred to as a
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198. | A channel captain is
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199. | A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms, one of which is
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200. | A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms, one of which is
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201. | A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms, one of which is
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202. | Walmart is a channel captain because of its strong image, number of outlets, and purchasing volume. The source of Walmart's power is its
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203. | American Hospital Supply helps its customers (hospitals) manage inventory and streamline order processing for hundreds of medical supplies. The source of American Hospital Supply's power is its
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204. | Neiman Marcus is a retailer with which many small manufacturers would like to be associated. A product placement in Neiman Marcus will increase the prestige of a smaller brand. The source of Neiman Marcus' power is its
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205. | Bombardier is the leading marketer of corporate jets. Its brand name is well known and respected in the corporate jet market. The aircraft company relies on outside suppliers for design support and to share development costs and market risks, but Bombardier is considered the leader in determining design and marketing of its planes. For its newest plane, Bombardier has about 30 prime suppliers, and about 10 of those have been involved since the initial design phase. Bombardier is an example of a
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206. | Sports Port, a motorcycle and fishing boat retailer located in a small northern Minnesota town, was the world's largest dealer for Crestliner fishing boats. To meet the demand of his many customers, the owner of Sports Port works with a wide variety of channel members, ranging from the manufacturer of the boats to trucking firms, other retailers, and even detailers (firms that clean, polish, and wax boats). Such a diverse channel of distribution often resulted in channel conflict. However, due to his strong consumer following, the owner of Sports Port had the power to resolve disputes between channel members. The owner of Sports Port serves as the __________ in the channel of distribution.
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207. | The __________ and the Justice Department monitor channel practices that restrain competition, create monopolies, or otherwise represent unfair methods of competition under the provisions of the Clayton Act or the Sherman Act.
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208. | The Federal Trade Commission and the Justice Department monitor channel practices that __________, create monopolies, or otherwise represent unfair methods of competition under the Sherman Act (1890) and the Clayton Act (1914).
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209. | The __________ specifically prohibits exclusive dealing and tying arrangements when they lessen competition or create monopolies.
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210. | The __________ has been used to prosecute resale restrictions, which are a supplier's attempt to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may be sold.
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211. | The Clayton Act prohibits, restricts, or influences all of the following channel strategies and practices except
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212. | Dual distribution is considered illegal if
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213. | When developing a distribution strategy, marketers should avoid the anticompetitive attempts to eliminate wholesalers or retailers if they want to avoid the possibility of violating the __________ provisions of the Clayton Act or the Sherman Act.
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214. | Dual distribution can violate the Sherman Act and the Clayton Act if the
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215. | Vertical integration can lead to legal prosecution if
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216. | Some manufacturers have tried to use the brand loyalty of their consumers to force retailers to carry only their products and none from their competitors. These manufacturers were trying to force retailers to participate in a practice known as
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217. | A tying arrangement exists if a supplier requires
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218. | Full-line forcing is a special kind of __________. This practice involves a supplier requiring that a channel member carry its full line of products in order to sell a specific item in the supplier's line.
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219. | __________ is a special kind of tying arrangement. This practice involves a supplier requiring that a channel member carry its full line of products in order to sell a specific item in the supplier's line.
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220. | A fast-food franchisee is required by its franchisor to buy unmarked plastic eating utensils from the franchisor if the franchisee wants to use the cups, napkins, and other paper products with the franchise logo. The franchisee can buy the identical utensils from a local supplier for half the price. This requirement would be an example of
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221. | Questions of legality regarding tying arrangements and exclusive dealing would most likely occur in
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222. | A refusal to deal with existing channel members may be illegal under the
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223. | Under the Clayton Act, __________ with existing channel members may be illegal.
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224. | A(n) __________ is a supplier's attempt to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may sell.
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225. | A supplier's attempt to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may sell is referred to as
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226. | Resale restrictions exist if a supplier
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227. | Resale restrictions have been prosecuted under the
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228. | Resale restrictions have been prosecuted under the Sherman Act. Today, however, the courts apply the __________ in such cases and consider whether such restrictions have a "demonstrable economic effect."
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229. | A marketing channel relies on __________ to make products available to consumers and industrial users.
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230. | Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost are referred to as
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231. | Activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost are referred to as
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232. | Logistics refers to
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233. | Logistics is most closely related to which element of the marketing mix?
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234. | Johnson Controls can receive an order for automobile seats from Ford and deliver the order four hours later, beginning with raw materials and ending with delivery of the finished seats to Ford. As used by Johnson Controls, logistics
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235. | Reductions in delivery times in both the marketplace and the supply chain have earned firms such as Toyota and Xerox a reputation as "time-based competitors." For Toyota and Xerox, logistics
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236. | A few years ago, Benetton delivered new styles to its worldwide stores once a month. Today, it replenishes its racks once a week. Getting the fashions to its retailers more quickly means that effectively using logistics has increased Benetton's market share by providing
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237. | The practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements is referred to as
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238. | Logistics management refers to
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239. | The word flow as it relates to the definition of logistics management refers to decisions needed to move
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240. | The word cost-effective as it relates to the definition of logistics management implies that
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241. | A firm needs to drive down logistics costs as long as it can deliver expected
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242. | The various firms involved in performing the activities required to create and deliver a product or service to ultimate consumers or industrial users are referred to as
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243. | Supply chain refers to
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244. | Which of the following statements best describes how a supply chain differs from a marketing channel?
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245. | A __________ is essentially a sequence of linked suppliers and customers in which every customer is, in turn, a supplier to another customer until a finished product reaches the ultimate consumer or industrial user.
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246. | Customers currently link to Cisco's website to configure, price, and order its networking equipment. Cisco then sends orders back out across the Internet to producers and assemblers including Celestica, Flextronics, Jabil, and Solectron. Products are built and tested to Cisco's standards, sometimes with procedures run remotely by Cisco. Most items are then drop-shipped to buyers, untouched by Cisco's employees. This is a description of Cisco's
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247. | Supply chain management refers to
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248. | An important feature of supply chain management is its application of __________ that allows companies to share and operate systems for order processing, transportation scheduling, and inventory and facility management.
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249. | In the automobile industry, the __________ manager is responsible for translating customer requirements into actual orders and arranging for delivery dates.
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250. | In the automobile industry, the supply chain manager is responsible for translating __________ into actual orders and arranging for delivery dates.
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251. | Supply chain and logistics managers play a large part in the manufacture of automobiles. It is estimated that logistics costs account for __________ percent of the retail price you pay for a new car.
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252. | The choice of a supply chain follows from a clearly defined marketing strategy and involves three steps: (1) __________, (2) understand the supply chain, and (3) harmonize the supply chain with the marketing strategy.
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253. | The choice of a supply chain involves three steps: (1) understand the customer, (2) __________, and (3) harmonize the supply chain with the marketing strategy.
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254. | The three steps used in choosing a supply chain are (1) understand the customer, (2) understand the supply chain, and (3) __________.
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255. | What is the first step in choosing the right supply chain?
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256. | IBM is one of the world's great business success stories because of its ability to reinvent itself to satisfy shifting customer needs in __________ global marketplace.
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257. | IBM has adopted __________ supply chain strategy to better serve its customers.
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258. | IBM built a single __________ that would handle raw material procurement, manufacturing, logistics, customer support, order entry, and customer fulfillment across all of IBM—something that had never been done before.
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259. | Often companies must choose between a responsive supply chain and an efficient supply chain. This decision is based on
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260. | The goals to be achieved by a firm's marketing strategy determine whether its supply chain needs to be more __________ in meeting customer requirements.
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261. | Dell has adopted __________ supply chain strategy to better serve its customers.
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262. | Because its customers desire rapid delivery and a wide variety of customizable products, Dell made a conscious decision to use __________ supply chain to meet these requirements.
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263. | Which statement regarding responsive supply chains is most accurate?
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264. | Which statement regarding responsive supply chains is most accurate?
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265. | Walmart made a conscious decision to use __________ supply chain in order to best meet the needs of its consumers.
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266. | Walmart's marketing strategy is to be a reliable, lower-price retailer for a wide variety of mass consumption consumer goods. This strategy favors __________ designed to deliver products to consumers at the lowest possible cost.
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267. | Which statement regarding efficient supply chains is most accurate?
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268. | Which statement regarding efficient supply chains is most accurate?
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269. | The practice that involves unloading products from suppliers, sorting products for individual stores, and quickly reloading products on trucks that will deliver the products to specific stores is referred to as
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270. | Cross-docking refers to
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271. | Cross-docking is most closely related to
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272. | Which of the following statements regarding supply chains is most accurate?
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273. | Which of the following statements regarding supply chains is most accurate?
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274. | Which of the following statements regarding supply chains is most accurate?
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275. | The objective of information and logistics management in a customer-driven supply chain is to minimize logistics costs while
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276. | The objective of information and logistics management in a supply chain is to deliver the appropriate level of customer service while
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277. | Expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling are referred to as
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278. | Total logistics cost refers to
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279. | Which of the following is an element of total logistics cost?
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280. | Which of the following best describes the goal for a firm's inventory and transportation costs?
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281. | For logistics, the customer service concept suggests that firms should
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282. | In the context of a supply chain, customer service refers to
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283. | Within the context of a supply chain, __________ is the ability of a logistics system to satisfy users in terms of time, dependability, communication, and convenience.
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284. | The importance of time, dependability, communication, and convenience are all important concepts of __________, within the context of the supply chain.
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285. | Supply chain managers balance total logistics cost factors against customer service factors. Customer service factors include
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286. | The output of a supply chain is the
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287. | Which of the following statements regarding supply chain customer service is most accurate?
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288. | The lag from ordering an item until it is received and ready for use or sale is referred to as
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289. | Order cycle time refers to
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290. | Another name for order cycle time is
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291. | In a supply chain setting, replenishment time refers to lead time for an item, which means the time between the ordering of an item and when it is
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292. | Replenishment time refers to
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293. | The typical order cycle includes all of the following elements except
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294. | The Limited employs a quick response system to order fast-moving fashion items. The Limited's point-of-sale scanner records each sale. When inventory falls below a minimum level, the system automatically sends an electronic order to the manufacturer, which processes the order immediately. This system has effectively reduced
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295. | Inventory management systems that are designed to make the process of reordering and receiving products as simple as possible are referred to as
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296. | An efficient consumer response system refers to
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297. | Inventory management systems that are designed to make the process of reordering and receiving products as simple as possible are referred to as
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298. | Another name for quick response systems is
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299. | Another name for efficient consumer response systems is
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300. | Dependability is the consistency of replenishment. This is important to all firms in a supply chain and to consumers. It can be broken into three elements: safe delivery, complete delivery, and
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301. | Dependability is the consistency of replenishment. This is important to all firms in a supply chain and to consumers. It can be broken into three elements: consistent lead time, complete delivery, and
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302. | Dependability is the consistency of replenishment. This is important to all firms in a supply chain and to consumers. It can be broken into three elements: consistent lead time, safe delivery, and
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303. | In logistics, a two-way link between buyer and supplier that helps in monitoring service and anticipating future needs is referred to as
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304. | Which of the following is an example of good communication between buyer and supplier?
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305. | Convenience refers to the concept that
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306. | An inventory-management system whereby the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items is referred to as
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307. | A vendor-managed inventory system is an
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308. | Many retailers who sell Campbell Soup products make purchases from Campbell under vendor-managed inventory programs. These retailers
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309. | The process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal is referred to as
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310. | Reverse logistics refers to
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311. | Butler-McDonald, an Indianapolis firm, recycles outdated computers to reclaim reusable materials such as plastics, copper, zinc, silver, and gold. Butler-McDonald is implementing
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312. | Hewlett-Packard is taking a proactive role in reducing the amount of electronic merchandise dumped in landfills by using __________ to reclaim recyclable and reusable materials.
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313. | Amazon.com was started with a simple idea: Use the Internet to ______________ into the fastest, easiest, and most enjoyable shopping experience possible.
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314. | Amazon uses supply chain and logistics management to
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315. | Amazon uses supply chain and logistics management to
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Short Answer Questions
316. | What is a marketing channel? Define each of the four types of marketing channels.
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317. | What are the functions performed by intermediaries?
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318. | What are the utilities created by marketing intermediaries? Describe each one.
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319. | With respect to consumer product and service marketing channels, what are the key differences between a direct and an indirect channel?
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320. | Define and describe at least one similarity and one difference between dual distribution and a strategic channel alliance.
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321. | In some countries, the packaging of the well-known Cheerios brand of cereal carries the Nestlé name rather than the familiar General Mills brand name. Explain the channel that is being used and the importance of Cereal Partners Worldwide (CPW).
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322. | List and define the three major types of vertical marketing systems.
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323. | There are three types of contractual vertical marketing systems. List the systems and provide a brief description of each.
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324. | There are four types of franchising arrangements. List the arrangements and provide a brief description of each.
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325. | What are the three questions marketing executives consider when choosing a marketing channel and intermediaries?
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326. | Channels are typically designed to satisfy one or more of four consumer interests. What are they and why are they important?
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327. | What is a channel captain? What is its function and how does it accomplish this?
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328. | Briefly explain the differences between the terms supply chain management and marketing channel.
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329. | What are the three steps involved in choosing a supply chain that aligns with an organization's marketing strategy?
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330. | What specific decision areas are associated with the flow of goods and together make up total logistics cost?
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331. | What are some specific cost trade-offs that can be made in a logistics system?
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332. | List and briefly describe the four customer service factors that must be balanced in a logistics system.
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Document Information
Connected Book
Answer Key + Test Bank | Marketing 13th Edition by Kerin and Hartley
By Roger A. Kerin, Steven W. Hartley
Explore recommendations drawn directly from what you're reading
Chapter 13 Building The Price Foundation
DOCX Ch. 13
Chapter 14 Arriving At The Final Price
DOCX Ch. 14
Chapter 15 Managing Marketing Channels And Supply Chains
DOCX Ch. 15 Current
Chapter 16 Retailing And Wholesaling
DOCX Ch. 16
Chapter 17 Integrated Marketing Communications And Direct Marketing
DOCX Ch. 17