Ch.9 Place Decisions And Customer Convenience Exam Questions

Applied Marketing, 2e (Padgett)

Chapter 9 Place Decisions and Customer Convenience

1) The total set of companies, exchanges, and transactions that produce goods and make them physically and commercially available to consumers is the definition of "place" in the marketing mix.

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Knowledge

2) If a store advertises it has "wholesale prices," it cannot sell to the final consumers of a product.

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

3) While some stores urge you to "eliminate the middleman" in transactions, significant value can be lost when manufacturers move to more direct marketing channels.

Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains.

Section Reference: The Importance of Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

4) Brian took a job at a wholesaler, thinking only of the way wholesalers make products available to retailers. What he will realize when he starts working is that there is a flow moving in the opposite direction of money and valuable information, such as complaints.

Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains.

Section Reference: The Importance of Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

5) Relationships among members of the supply chain are sought by the each of the members of the supply chain for that individual's benefit as well as the each of the other participants.

Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains.

Section Reference: The Importance of Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

6) Marketers need to focus on the ultimate customer. They realize that retail supply chains are significant, but these concerns are more tactical than strategic.

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains: Lengths and Intensity

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

7) If a marketer develops a strong brand, it will be easier to use impersonal approaches such as online sales or catalogues.

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains: Lengths and Intensity

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

8) Once a marketer has designed a retail supply change and then set everything in motion, the remaining task is to monitor the results to ensure the strategy and the design are working.

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

9) Retailers will go through detailed planning to determine the atmosphere, lighting, staffing, layout and many other variables, but they are at the mercy of manufacturers who can dictate what kinds of merchandise will be cared in what stores.

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

10) Before the emergence of strong retailers, manufacturers traditionally had more power in supply chains based on the power of the brands they had built.

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Comprehension

11) Because of the differences between selling activities in physical stores and online retailers, different kinds of conflicts arise when power is exerted in the supply chains of the two.

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Knowledge

12) Jim's firm had worked for several years to get producers, retailed and wholesalers working together. This system, which proved beneficial to all, is known as a vertical marketing system.

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Comprehension

13) Which of the following is NOT one of the many elements of an industrial supply chain?

A) Farmers

B) Components manufacturers

C) Retailers

D) Miners

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

14) ________ are the core of place decision as the concept encompasses a broader array of ideas than simply moving goods from producer to consumer.

A) Supply chains

B) Consumers

C) Wholesalers

D) Reverse supply chains

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

15) Supply chains as the total series of companies, exchanges, and transactions that produce goods and make them physically and commercially available to

A) wholesalers.

B) consumers.

C) retailers.

D) supply chain managers.

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

16) Merchandise sometimes flows backwards from consumer to producer. This is known as a(n)

A) supply chain.

B) industrial supply chain.

C) retail supply chain.

D) reverse supply chain.

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

17) A key function of an effective supply chain is

A) providing exchanges that make goods available to consumers.

B) operating efficiently while protecting the environment.

C) moving products from manufacturers to suppliers.

D) offering coordination between producers and retailers.

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

18) The role of supply chains is to

A) deliver materials to producers and consumers.

B) ensure products are delivered on time.

C) assist distributors in coordinating deliveries.

D) transport products efficiently to multiple locations.

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

19) The goal of retail supply chains is to

A) create exchanges that ensure goods move from producer to consumer.

B) develop proper distribution channels.

C) organize and transport product to various regions and distribution centers.

D) coordinate proper technology to monitor delivery of products.

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

20) Which of the following is the best definition of supply chain?

A) The movement of goods from producer to consumer

B) The total series of companies, exchanges, and transactions that produce goods and make them physically and commercially available to consumers

C) The act of making products easily attainable and convenient to consumers

D) The use of a sales force and promotional incentives to convince wholesalers and retailers to carry the producer's products

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

21) Which of the following utilizes one or more marketing intermediaries to get products from the producer to the consumer?

A) Direct retail supply chain

B) Indirect retail supply chain

C) Reverse supply chain

D) Wholesale supply chain

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

22) Heather was a marketing intern in a large manufacturing firm, and she was attending a meeting to examine how to streamline entire process of getting raw materials to the firm and the finished goods to market. Several of the other participants were talking about "marketing intermediaries," and she was not clear who or what these are. Who are the "marketing intermediaries" that were the focus of this discussion?

A) Transportation firms bringing materials to the firm

B) Sales agents used by the firm's suppliers

C) Wholesalers and retailers

D) Marketing and advertising agencies retained by the firm

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

23) Paul and Marcus were planning the launch of a new product line for their firm, and they both got enthusiastic about breaking out of the traditional selling they had been doing using wholesalers to sell directly to the consumers using their website. They had checked with everyone associated with the operations of the website, it was relatively easy to do. They needed to get approval from the CMO because the company would be taking on the new role of

A) marketing intermediary.

B) direct retailer.

C) wholesaler disintermediation.

D) supply chain manager.

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

24) Sarah was always looking for bargains, and she was talking about the number of refurbished and reconditioned electronics on companies' website. Her friend Alexis, a marketing major, explained to her that this was one of the results of the growth of which process?

A) Recycling

B) Reverse supply chains

C) Profit maximization

D) Product-life extensions

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

25) Way fair and Amazon use which type of supply chain when selling products?

A) Direct retail

B) Indirect retail

C) Direct wholesale

D) Indirect wholesale

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

26) Which of the following is a reason why companies such as L.L.Bean might use reverse supply chain?

A) To accommodate returned or defective products

B) To assist in recycling used merchandise

C) To facilitate efficiency in transporting products

D) To coordinate the distribution of time sensitive products

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

27) Roberto is a finish carpenter for a local construction firm. He purchases his lumber and necessary hardware from Lumber Nation, a company that sells only to professional builders. Which of the following terms most accurately describes the role of Lumber Nation in this scenario?

A) Wholesaler

B) Retailer

C) Mass merchandiser

D) Category killer

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

28) Nespresso is headquartered in Switzerland and operates in 60 countries. It sells its coffee pods and coffee makers via company-owned boutiques or online. Which of the following terms best describes this type of supply chain?

A) Reverse supply chain

B) Industrial supply chain

C) Traditional supply chain

D) Direct supply chain

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

29) Veronica purchased a Ring doorbell from Target for her new home. Since it never seemed to work correctly, she returned it to the store in exchange for a new one. Target shipped the malfunctioning doorbell to Ring, where it was repaired and sold as "certified refurbished." Which of the following terms best describes this type of supply chain?

A) Industrial supply chain

B) Direct supply chain

C) Reverse supply chain

D) Traditional supply chain

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

30) A bottle of laundry detergent begins with a plastic producer and a chemical manufacturer. Once filled and labeled, the detergent bottles are shipped to companies like Clean It Supply. They end up at mass merchandisers like Kroger, which sell directly to the end customer. This is an example of a(n)

A) industrial supply chain.

B) direct retail supply chain.

C) reverse supply chain.

D) indirect retail supply chain.

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

31) Intermediaries provide what areas of expertise to supply chains?

A) Efficiency in moving and sorting

B) Security in storage and retrieval of goods

C) Protection against theft and vandalism

D) Assistance in managing logistics

Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains.

Section Reference: The Importance of Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

32) Supply chains can provide valuable information to retailers by

A) gathering information from scanners and mobile devices.

B) tracking purchase patterns of customers.

C) designing metrics to guide logistics efficiency.

D) anticipating shortages in product deliveries.

Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains.

Section Reference: The Importance of Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

33) Which of the following is NOT one of the ways retailers help get products to the customers?

A) Retailers increase the variety of choices available to the consumer.

B) Retailers provide efficiency and effectiveness to keep products at or below the "manufacturer's suggested retail price."

C) Retailers provide moving, sorting and handling goods as they become specialists in this area.

D) Retailers reduce the number of transactions for manufacturers.

Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains.

Section Reference: The Importance of Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

34) Dawn's marketing director urged her to give special attention to several of the retailers buying her firm's product. He even suggested they might take some short-term losses if necessary. Why would the marketing director decide to do this?

A) He was concerned that if the firm were seen as being too strict or too firm, it might be seen as unethical.

B) He felt that if the retailers do well, it will benefit Dawn's firm in the long run.

C) He was concerned that damaging the retailers might lead to lawsuits from them.

D) He knew that if he drove even a few of the firms to bankruptcy, his firm would end up losing money.

Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains.

Section Reference: The Importance of Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

35) Manufacturers can stimulate demand for their products by creating promotions with the understanding that

A) retailers will pass on some of the price savings to customers.

B) competitors cannot match the promotion.

C) these promotions may indicate to others in the supply chain a change in the firm's objectives.

D) strategies aren't working, and tactics are required.

Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains.

Section Reference: The Importance of Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

36) Which of the following is a reason why producers might offer discounts to retailers?

A) Inventory control and promotional planning

B) Develop or repair important relationships

C) Reduce inventory or storage space

D) Eliminate waste and spoilage

Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains.

Section Reference: The Importance of Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

37) Which of the following statements most accurately describes the importance of supply chains?

A) The presence of retailers in a supply chain saves consumers considerable time, effort, and resources.

B) Producers possess logistics expertise that wholesalers and retailers do not.

C) Marketing intermediaries frequently place goods in unexpected places, which improves product awareness and trial.

D) The ability to buy directly from producers saves consumers a great deal of money.

Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains.

Section Reference: The Importance of Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

38) Which of the following is a source of power for retailers?

A) The flow of money through the retail chain

B) The promotional assistance they can provide the other supply chain members

C) The technological capability of collecting information from cash register scanners

D) The direct contact with the final consumer

Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains.

Section Reference: The Importance of Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

39) The level of availability for the product or service is referred to as

A) intensive distribution.

B) distribution intensity.

C) exclusive distribution.

D) selective distribution.

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains: Lengths and Intensity

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

40) When producers utilize ________, they place their brands in as many, but not all, outlets as possible.

A) exclusive distribution

B) selective distribution

C) intensive distribution

D) distribution intensity

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains: Lengths and Intensity

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

41) Producers sometimes use ________ by placing their product in few outlets.

A) exclusive distribution

B) distribution intensity

C) selective distribution

D) intensive distribution

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains: Lengths and Intensity

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

42) Which is a leading reason why a company might decide to use catalogs when communicating with customers?

A) Customers do not need the product immediately.

B) Customers depend on promotional discounts.

C) Customers prefer a traditional form of evaluating possible purchases.

D) Consumers are not price sensitive and are not bargain shopping.

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

43) Indirect supply chains can sometimes decide to bypass which of the following?

A) Wholesalers

B) Intermediaries

C) Distributors

D) Suppliers

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

44) When producers wish to make their products easily obtainable and increase convenience, they select a(n) ________ strategy.

A) distribution intensity

B) intensive distribution

C) exclusive distribution

D) selective distribution

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains: Length and Intensity

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

45) Luxury brands such as Rolex and Gucci would use which type of distribution strategy?

A) Exclusive

B) Selective

C) Prestige

D) Intensive

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

46) Which of the following terms is defined as the level of availability for a product or service?

A) Relationship marketing

B) Relational exchange

C) Distribution logistics

D) Distribution intensity

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

47) A firm is producing luxury desk sets–letter openers, pencil cups, etc. They are beautifully made, and they are made of rare and expensive materials. When the firm is developing its Place strategies in the marketing mix, what kind of distribution intensity would the firm select for these products?

A) Intensive

B) Selective

C) Premium

D) Exclusive

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains: Lengths and Intensity

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

48) Megan's firm is launching a new line of hair-care products which are not expensive, but a certainly higher quality than the less-expensive products dominating the market. What kind of distribution intensity should she select for these new products?

A) Intensive

B) Professional

C) Selective

D) Exclusive

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains: Lengths and Intensity

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

49) When you feel you just have to have a piece of chewing gum, you know there will be a vending machine or many different kinds of stores where you can get a pack of gum quickly and without much thought. The chewing gum company selected an intensive distribution strategy because

A) they want a consistent brand image of a product anyone can afford.

B) they want to be in as many locations as possible to close out as many competitors as possible.

C) they know margins will be low, and they look for locations that will not be expensive in which to place the product.

D) they recognize this is the industry standard practice, and they see no reason to depart from it.

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains: Lengths and Intensity

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

50) Under what condition is it best to include one or more wholesalers in the supply chain?

A) When pre-purchase inspection is not important

B) When customers do not need the product immediately

C) When the producer is of small or medium size

D) When the producer needs absolute control over how its brands are merchandised

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

51) Stella McCartney partnered with Adidas to create a line of designer athletic footwear, which is sold at outlets like Nordstrom, Nieman Marcus, and Zappos.com. A savvy shopper may even find them on sale. This is an example of which type of distribution?

A) Selective

B) Intensive

C) Exclusive

D) Inclusive

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

52) A Birkin handbag retails for thousands of dollars and is only available for purchase in an Hermes store, of which there are 36 in the United States. Which type of distribution is exemplified in this scenario?

A) Selective

B) Intensive

C) Exclusive

D) Inclusive

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

53) Gatorade is available in vending machines, convenience stores, grocery stores, sporting goods stores, and concession stands. Which type of distribution is exemplified in this scenario?

A) Selective

B) Intensive

C) Exclusive

D) Inclusive

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

54) Which strategy would a company use if they wanted to make their product easy to acquire?

A) Intensive distribution

B) Exclusive distribution

C) Selective distribution

D) Direct distribution

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

55) Retailer ________ is the ability of a retailer to attract consumers in a producer's target market or markets.

A) type

B) image

C) reach

D) fit

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

56) ________ are very large retail stores that specialize in selling large volumes of merchandise at low prices.

A) Discount stores

B) Mass merchandisers

C) Department store

D) Specialty stores

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

57) Marketers are concerned with the concept of retail fit, trying to answer the question about which store would be best for customers. Which of the following is NOT one of the dimensions of retail fit?

A) Retailer reach

B) Retailer sustainability

C) Retailer type

D) Retailer image

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

58) ________ are physically much smaller in space.

A) Discount stores

B) Specialty stores

C) Department stores

D) Mass merchandisers

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

59) ________ are also large stores that feature apparel and home furnishings.

A) Department stores

B) Discount stores

C) Mass merchandisers

D) Specialty stores

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

60) ________ stores, such as Walmart and Target, are all mass merchandisers.

A) Discount

B) Specialty

C) Department

D) Chain

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

61) Which of the following is NOT a type of retail store?

A) Convenience stores

B) Mass merchandiser

C) Chain stores

D) Specialty stores

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

62) What are distinguishing features of specialty stores?

A) Narrow inventory and high level customer service

B) Deep product selection and exclusive luxury brands

C) Custom products and private showing

D) Exclusive brand selections and limited assortments

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

63) How does a push strategy differ from a pull strategy?

A) It is less expensive.

B) It is more impactful.

C) It is easier to manage.

D) It is difficult to imitate.

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

64) Which dimension of retailer fit is defined as the ability to attract consumers in a producer's target market?

A) Retailer intensity

B) Retailer type

C) Retailer image

D) Retailer reach

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

65) Jordan had been working diligently to gather as much information as possible about the stores where his firm might put their new line of sports apparel. He was trying to assemble all the criteria he could think of to test each of the stores, but he was feeling more confused than he had been at the beginning. When he was explaining his frustration to Sam over coffee, Sam said, "You're going at the this the wrong way. There's only one question you need to answer." What is that one question?

A) Which store's margins are the most attractive?

B) Which store will carry the merchandise without having to pay an allowance?

C) Does the brand belong in a particular retail store?

D) Which store is not already carrying the competitor's products?

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

66) Crystal saw a new brand of salsa being promoted online, and it was getting great reviews. She couldn't find it anywhere in her area, so she began a campaign using social media to convince grocery retailers to start carrying this new brand. This is an example of what kind of retail strategy?

A) Word of mouth strategy

B) Pull strategy

C) Push strategy

D) Social-media action strategy

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

67) Paula's firm was relaunching a line of yard tools and an argument broke out in the marketing department. The veterans wanted to focus on lawn care centers, nurseries and selected hardware stores. On the other hand, the younger marketers wanted to emphasize an online push. Paula stepped in and asked what kind of research was available that discussed the balance between online and retail brick and mortar stores. Both groups came back with the same answer.

A) About a third of retail sales are online.

B) More than three-quarters of retail sales were made online.

C) Within the last few years, the retails sales for online and physical stores were about the same.

D) The overwhelming majority of sales occur in physical stores.

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

68) Which of the following is a way in which retail reach can be measured?

A) Determining how well the retailer can attract the target customer

B) Determining which advertising will reach the target customer

C) Determining which social media platform appeals to the target customer

D) Utilizing analytic data to determine marketing content that needs to be changed

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

69) What must producers consider when creating an image for their store?

A) If the retailer's image matches the products sold in the store

B) If the store highlights the uniqueness of the brand being sold

C) If there is a fit between the item sold and the target customer

D) If the producer has access to the luxury brands necessary to create the image

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

70) Suppose that Tech Yeah! is a large and hugely successful retailer in the United States. It carries a large and deep assortment of consumer electronics and appliances. Consumers report that Tech Yeah! prices are extremely competitive. Tech Yeah! is an example of which type of retailer?

A) Category killer

B) Specialty store

C) Department store

D) Mass merchandiser

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

71) Victoria's Secret is an American clothing and lingerie retailer. Stores carry deep inventories, but brands are limited. Employees are expected to provide quality customer service. Victoria's Secret is an example of which type of retailer?

A) Category killer

B) Specialty store

C) Department store

D) Mass merchandiser

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

72) Which of the following best describes the difference between a push strategy and a pull strategy?

A) The need for product promotion

B) The necessity of demand from customers to retailers

C) The necessity of demand from retailers to producers

D) The need for additional cash outlay

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

73) Kristoff tries veggie chips at a sampling station at a trade show. During his next shopping trip at his locally owned grocery store, Kristoff asks the manager if she carries the tasty chips. When she replies negatively, Kristoff raves about them. A few weeks later, at that same store, Kristoff notices an endcap filled with bags of veggie chips. This type of marketing interaction is termed a

A) power exchange.

B) discrete transaction.

C) push strategy.

D) pull strategy.

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

74) You are a marketing manager for a sporting goods manufacturer that is launching a new lawn bowling game. The plan is for the game to be sold via stores like Dick's Sporting Goods and Academy Sports + Outdoors, and also Target and Walmart. One of your subordinates approaches you with concerns that selling via mass merchandisers is overkill as those stores reach consumers far beyond your target market. What is your best response?

A) You agree and limit your sales to specialty stores where customers readily expect your products.

B) You move forward with your original plan. While mass merchandisers attract customers outside your target market, they do attract a significant number of consumers within your target. Further, consumers will expect products like yours in the mass merchandisers' sporting goods sections.

C) You move forward with your original plan. Mass merchandisers attract customers outside your target market and, by placing product there, you may extend your reach and increase your sales.

D) You agree and rebrand your bowling game so that it clearly favors a specialty store market.

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Evaluation

75) Mariah has invented a new kind of insulated covering that can keep beer cans frosty cold for days. She knows this product has great potential, but her capital is limited. She comes to you for advice on the best way to get her product into retail stores. What is the best advice to give her?

A) Forget about retail stores and focus on online retailing, which is where consumers expect new products to be sold.

B) Focus on creating social media buzz and support. Tell interested consumers to ask for the product at local retailers.

C) Visit mom-and-pop convenience stores with considerable beer sales, demonstrate the product, and ask for shelf space.

D) Attempt to create a relationship with a beer manufacturer. Customers who buy a case of their beer can receive a free insulated covering by mail.

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Evaluation

76) The major sources of conflict in supply chains are the differing goals, differing ideas of who should be responsible for what, and

A) geographic exclusivity.

B) who sets prices.

C) how target markets are seen.

D) brand image differences.

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Knowledge

77) Which of the following is NOT one of the potential sources of conflict in supply chains?

A) How much shelf space can be allocated to a manufacturer's products

B) When products will be delivered

C) When payments will be made

D) Which sales associates will oversee reordering and stocking issues

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Knowledge

78) Companies can threaten another supply chain member, it is called ________ power.

A) reward

B) brand

C) members

D) coercive

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

79) What can be the end result of supply chain conflicts? They can

A) produce positive results.

B) lead to repaired relationships.

C) resolve internal conflicts.

D) create a better atmosphere.

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

80) Which of the following most accurately defines reward power as it is exercised in supply chains?

A) One supply chain member offers incentives to another member to share its expert knowledge.

B) One supply chain member is threatened by another.

C) One supply chain member offers positive incentives to another to gain compliance.

D) One supply chain member is awarded control over the entire chain.

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Communication

Standard 2: Bloom's || Comprehension

81) When Stephen began working at a children's apparel company, he had very firm opinions about specific retailers, including setting his own rules about where he would shop. As he worked, he found he actually enjoyed meeting and working with counterparts in these retailers, which caused him to soften his opinions. This reflects which fundamental element of supply chain relationships?

A) A person should not bring his or her personal opinions into work.

B) Business relationships are developed by people not companies.

C) A person should not be judgmental about people he or she works with.

D) Conflicts arise because of preconceived ideas.

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Application

82) Liz was observing how her company dealt with specific retailers. With some, she noticed threats were common and issues were often determined by the party with the most resources–one or the other firm was coerced into acting in some way. In others, the nature of the relationships, even in issues of power, were handled, and it rarely came down to force. The kind of power seen in the latter relationships is known as

A) expert power.

B) referent power.

C) reward power.

D) contained power.

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Application

83) Which of the following is a way in which companies such as Heinz and Kellogg's might use power to gain entry into stores?

A) Reward power

B) Shelf displays

C) Point of purchase displays

D) Product placement

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

84) Which of the following statements accurately describes power in supply chains?

A) Online retailers have limited power in supply chains.

B) Producers are the most powerful supply chain members.

C) Producers are the least powerful supply chain members.

D) Technology plays a large role in which supply chain member wields power.

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

85) Which of the following statements accurately describes conflict in supply chains?

A) Supply chain conflict equals negative results for all parties.

B) Conflict often arises because supply chain members have the same goal.

C) Conflict may arise because supply chain members view the target market differently.

D) While all producers are equally important to retailers, not all retailers are equally important to producers.

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

86) What is the best similarity between coercive power and reward power when exercised in supply chains?

A) Both seek to gain compliance.

B) Both seek to cultivate loyalty.

C) Both negatively affect relationships.

D) Both motivate with types of punishments.

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

87) When is coercive power most effectively exercised in supply chains?

A) When one member is dependent on another

B) When members are interdependent

C) When competitors' products are few

D) When distribution is intensive

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Evaluation

88) A major risk in working with various supply chains might be

A) how to create and maintain relationships.

B) how to be efficient and cost effective.

C) how to use technology effectively across all channels.

D) how to respond to product shortages and layoffs.

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

89) In which sort of vertical marketing system does a manufacturer exert the most control?

A) Corporate VMS

B) Administered VMS

C) Contractual VMS

D) Integrated VMS

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Knowledge

90) A benefit gained when supply chain members engage in relational exchange is

A) trust.

B) savings.

C) loyalty.

D) profits.

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

91) Discrete transaction differs from relational exchange in that

A) it is done on a one-time basis.

B) it is unethical.

C) it lacks transparency.

D) it does not share information.

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

92) What is the ultimate goal of a vertical marketing system?

A) Satisfy the consumer

B) Create supply chain efficiency

C) Develop long-term relationships

D) Improve efficiency

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

93) Which of the following is NOT a vertical marketing system (VMS)?

A) Franchise VMS

B) Contractual VMS

C) Administrative VMS

D) Corporate VMS

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

94) Which of the following terms applies when two parties have conducted business on a one-time basis with no set expectations of future business?

A) Relational exchange

B) Discrete transaction

C) Franchise agreement

D) Vertical marketing system

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Communication

Standard 2: Bloom's || Comprehension

95) The hosts on televised shopping channels focus on selling products to the people currently watching. Assured that new people will be watching later, they do not concern themselves with guaranteeing repeat sales. This type of marketing interaction is termed a

A) relational exchange.

B) discrete transaction.

C) power strategy.

D) pull strategy.

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Communication

Standard 2: Bloom's || Comprehension

96) Many companies that have been around for a few decades will observe how the way they interact with their own buyers and sellers has changed from adversarial, price focused transactions to a fundamentally different kind of system characterized by more trust, lower costs and more flexibility. This more modern approach is known as

A) supply chain management.

B) agile marketing.

C) relationship marketing.

D) egalitarian management.

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Application

97) Which of the following would be characterized as a discrete transaction?

A) Selling lingerie to a small retail clothing store

B) Setting up an arrangement where administrative assistants in a company can order office supplies using their own discretion

C) A small number of vendors were asked to submit confidential bids to refurbish the Vice President's office

D) A restaurant running out of butter one night and sending someone to the local grocery store

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Application

98) Lucas worked for an old-school business owner. When Lucas presented the idea of building relational exchanges with key vendor and buyers, the owner was skeptical at best. He told Lucas, "I'm not at all interested in having people feel good about business. It's not a party." Lucas then told him it could increase profits, and the owner took a new interest. Which of the following is NOT a way Lucas could demonstrate that relational exchanges would increase profits?

A) Lucas's firm could get the lowest price on the key materials they needed.

B) Lucas's firm could lower inventory costs with longer-term contracts with flexible deliveries.

C) Lucas's firm could reduce purchasing costs through fewer searches and negotiations.

D) Lucas's firm would not have to spend as much to test and examine in-bound materials.

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Application

99) What happens in an administered vertical marketing system when different levels of power between two parties is significant?

A) Companies may be dependent on each other, but the benefits are not equally distributed.

B) Regardless of the safeguard established in the design of the system, the strong party can essentially do what it wants to do.

C) Within a short period of time the administered VMS will evolve into a corporate VMS.

D) The weaker party can protect itself with a franchise agreement.

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Application

100) Sherwin-Williams has more than 4,000 company-operated paint and coating stores in 120 countries. They do not franchise. This is an example of which type of vertical marketing system?

A) Corporate VMS

B) Administered VMS

C) Contractual VMS

D) Discrete VMS

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

101) Which of the following statements accurately describes relationship marketing?

A) Relational exchanges involve constant oversight of relationships.

B) Discrete transactions represent a major shift in thinking among companies operating in supply chains.

C) Relational exchanges take a long-term view of business interactions.

D) Relational exchange relationships limit new business opportunities.

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

102) Giovanni wanted to be his own boss, so he bought a UPS Store franchise for $250,000. He is confident in his investment because his brand is well recognized, and he and his staff will be well trained. This is an example of which type of vertical marketing system (VMS)?

A) Contractual VMS

B) Corporate VMS

C) Administered VMS

D) Discrete VMS

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

103) Small Producer is heavily dependent on Massive Mart for product sales. When Massive Mart aggressively negotiates lower wholesale prices so it can then lower prices in its stores, Small Producer has no choice but to agree. This is an example of which type of vertical marketing system?

A) Contractual VMS

B) Corporate VMS

C) Administered VMS

D) Discrete VMS

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

104) What is the best synthesis of discrete transactions and relational exchanges?

A) They facilitate supply chain transactions with members who offer the best financial terms.

B) They facilitate supply chain transactions by sharing information and exchanging resources.

C) They represent traditional ways of doing business.

D) They operate on high levels of trustworthiness.

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Synthesis

105) Ethan sells fruit and vegetable smoothies from a food truck. He has a large following, but business has fallen off a bit as customers are frustrated by his ever-changing menu and prices. Because his business relies on quality, fresh fruit, Ethan is at the mercy of his produce suppliers for availability and cost. Unfortunately, to purchase the low quantities he needs, Ethan always pays a high price. What is the best advice for Ethan?

A) Ethan should seek bids from a variety of vendors each time he purchases produce. That way, he can be assured of the lowest costs.

B) Ethan should purchase higher quantities of produce to lower his costs and create new smoothie combinations to use up the extra supply.

C) Ethan should seek to partner with a specific vendor to get his required produce ingredients when he needs them. Though he likely will pay more, his costs will be offset by his increased sales.

D) Ethan should consider growing his own produce. That way, he is assured to have what he needs when he needs it–and at minimal cost.

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Evaluation

106) What are the two types of supply chains? Provide an example of each.

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

107) Why would a retailer want to take on functions that have value that had been traditionally added by a wholesaler? Use your response to demonstrate your understanding of marketing intermediaries.

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Synthesis

108) Explain the role that retailers play in the supply chain process.

Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains.

Section Reference: What Are Supply Chains?

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

109) What is the essential purpose of supply chains?

Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains.

Section Reference: The Importance of Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

110) As a consumer, you've had the experience of having your purchase scanned. It is easy to see how the retailer might use that information, from recording payment received to inventory control. That information becomes an asset as others would like to use that information. What are some of the uses for a manufacturer in the scanned data from purchases?

Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains.

Section Reference: The Importance of Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Synthesis

111) Information is an important resource that flows thru supply chains. Explain how this information is captured.

Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains.

Section Reference: The Importance of Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

112) Discuss a less expensive way to establish a retail supply chain.

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains: Lengths and Intensity

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

113) Producers sometimes choose to use exclusive distribution. What is the process for exclusive distribution and for what it is often used? Include real world examples.

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains: Lengths and Intensity

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

114) How would you explain the process of how producers use selective distribution?

Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design.

Section Reference: Designing Retail Supply Chains: Lengths and Intensity

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

115) Explain retailer reach relative to attracting customers.

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

116) Explain push strategy and how it is used to convince companies to carry their products.

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

117) What is the pull strategy and how is it applied to increase product demand?

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

118) Discuss the cost of a pull strategy as compared to push strategy.

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

119) Why is pull strategy antagonistic toward powerful retailers?

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

120) Discuss pull strategy and the likelihood that it will used by less well-known or established brands.

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

121) Discuss is the main goal of the pull strategy and provide an example of a real brand, product, or service.

Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands.

Section Reference: Retail Supply Chain Strategy: Retailer Selection

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

122) Who is the driving force for creating relationships between businesses? Explain.

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

123) What is coercive power and how might companies utilize it? Can you provide an example?

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

124) Explain reward power is, relative to how companies may utilize it. Provide an example to illustrate you explanation.

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

125) Discuss two major sources of conflict in a supply chain.

Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains.

Section Reference: Power and Conflict in Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

126) Explain relationship marketing in regards to supply chains.

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

127) Discuss why marketers are increasingly focused on relationship marketing.

Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing.

Section Reference: Relationship Marketing in Supply Chains

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

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