mq7

1.

Molly goes shopping at Publix, picks up 25 items that she needs for the week, and is quickly on her way. Publix, being an intermediary, makes it possible for Molly to buy all of her items in one place with only one transaction instead of ordering each item separately from 25 different manufacturers. Even though marketing intermediaries may sometimes cause headaches for manufacturers, they are here to stay because intermediaries:

Student Response

Value

Correct Answer

Feedback

A. make the channel of distribution more efficient.

100%

B. have a higher success rate because they are franchises.

0%

C. cause less channel conflict.

0%

D. can avoid the "supply chain management" fallacy.

0%

E. are always "channel captains".

0%

General Feedback:

Lecture page 92:

A. Correct! Marketing intermediaries are very important. Imagine if Molly had to purchase her 25 different items from 25 different manufacturers. She might have to make 25 different trips to accomplish this. As a result, it is more efficient for Molly to visit just one store, in this case Publix, for all 25 items. B. This answer choice makes no sense in the context of the question. C. Intermediaries are often a source of channel conflict.D. Created term. E. A channel captain refers to the firm that maintains the most influence over

how the channel operates, and can be the manufacturer, the wholesaler, or the retailer.

Score: 1/1

2.

Macy's is referred to as an "anchor store" in a large regional mall. It carries a wide variety of merchandise, including clothing, shoes, and household merchandise. Macy's would best be described as a _______.

Student Response

Value Correct Answer

Feedback

A. Power Retailer

0%

B. Discounter 0%

C. Specialty Store

0%

D. Wholesaler 0%

E. Department Store

100%

General Feedback:

Lecture page 91:

A. Power retailers, known as category killers, are large and generally have a narrow product line with great depth. The question states that Macy’s carries a wide variety of merchandise, thus we can eliminate this possible answer choice. B. Discounters generally have many product lines with shallow selection. Unlike department stores such as Macy’s, discounters do not add much value to the products they sell. Examples of discounters include Target and Wal-Mart. C. Specialty stores are generally small and carry limited product lines, the exact opposite of Macy’s. D. A wholesaler acts as an intermediary between manufacturers and retailers. E. Correct! Department stores are large, carry a wide variety of product lines with average to deep selection, and are generally the anchor stores within malls. This accurately describes Macy’s.

Score: 1/1

3.

The two types of channel conflict are:

Student Response

Value

Correct Answer

Feedback

A. divisional and organizational.

0%

B. external and internal.

0%

C. supervisor-subordinate and subordinate-subordinate.

0%

D. horizontal and vertical.

100%

E. transactional and transformational.

0%

General Feedback:

Text page 407: Choice D is the answer. Horizontal conflict occurs between intermediaries at the same level in a marketing channel, for example between two wholesalers or two retailers. Vertical conflict occurs between different levels in a marketing channel, for example between the manufacturer and the wholesaler, or between the wholesaler and the retailer. The other answers are distracters.

Score: 1/1

4.

Cross-docking and inventory management are examples of what concept?

Student Response


Feedback

A. The distinction between a channel of distribution and actual physical distribution of a product

0%

B. Logistics 100%

C. Transaction Marketing

0%

D. Channel Dynamics

0%

E. Relationship Marketing

0%

General Feedback:

Lecture page 94: Logistics focuses on getting the right amount of the right product to the right place at the right time at the lowest possible cost. The emphasis of logistics is on distribution, getting the product from point of origin to point of consumption. Cross-docking allows for the quick and efficient method of sorting goods coming from the manufacturer to the retailer. Cross-docking essentially involves two docks, an arrival dock and a departure dock. Goods coming from the manufacturer enter the plant at the arrival dock and are then sorted and prepared to exit on the departure dock. Thus, cross-docking serves an important logistical function since it allows goods to flow quickly and efficiently from the manufacturer to the retailer. Inventory management requires coordination between suppliers and vendors in order to maintain optimal levels of inventory. This an example of logistics since inventory management focuses on the movement of products in a cost effective manner throughout the supply chain.

Score: 0/1

5.

_____ refers to the linkage of computers among suppliers, manufacturers, and resellers to transmit documents such as electronic purchase orders, invoices, and information.

Student Response


Feedback

A. Strategic information alliance

0%

B. Reciprocal data exchange

0%

C. Integrated information system

0%

D. Integrated sales

0%

management system

E. Electronic data interchange

100%

General Feedback:

Text page 421: EDI’s are used to transmit and manage information in a supply chain. This is achieved through the linking of computers and the continuous flow of information throughout the supply chain. An electronic data interchange combines proprietary computer and telecommunication technologies to exchange electronic invoices, payments, and information among suppliers, manufacturers, and retailers.

Score: 1/1

6.

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

Student Response

Value

Correct Answer

Feedback

A. just-in-time inventory systems

0%

B. electronic data manipulation

0%

C. creative computer imagery

0%

D. electronic data interchange

100%

E. product-specific delivery

0%

system

General Feedback:

Text page 421:

A. Just-in-time delivery by definition is an inventory supply system that operates with very low inventories and requires fast, on-time delivery. B. Created term. C. Created term. D. Correct! An electronic data interchange combines proprietary computer and telecommunication technologies to exchange electronic invoices, payments, and information among suppliers, manufacturers, and retailers. EDI’s are used to transmit and manage information in a supply chain. Schneider is using technology in order to gather information and create a more efficient supply chain, which is one of the objectives of EDI. E. Created term.

Score: 1/1

7.

Zook Company is a wholesaler that buys footballs and then sells them to other businesses, such as Sports Authority and Target. The company is independent of the manufacturer it buys from and it takes possession of the footballs. In addition to storing the inventory, the company provides financing services to the retailers. However, it does not provide any feedback from the retailers to the manufacturers. What type of wholesaler is Zook Company?

Student Response


Feedback

A. Distributor

0%

B. Jobber 100%

C. Vertically integrated

0%

D. Franchise 0%

E. Agent 0%

General Feedback:

Lecture page 90A) Distributors are full-function retailers so would they provide feedback from the retailers to manufacturers. B) A jobber is a limited merchandise wholesaler because it does not perform all of the functions we expect out of a channel. Zook Company does not provide any feedback from the retailers to the manufacturers.

C) Vertically integrated is not a type of wholesaler. D) A franchise is a type of contractual vertical marketing system. There is not a franchise wholesaler. E) Agents operate more like salespeople and do not take possession of the goods. Zook Company takes possession of the footballs so it is not an agent.

Score: 0/1

8.

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

Student Response

Value

Correct Answer

Feedback

A. marketing chain of command

0%

B. marketing channel

100%

C. organizational hierarchy

0%

D. marketing hierarchy

0%

E. organizational chain of command

0%

General Feedback:

Text page 390 A) This is not a marketing term. B) A marketing channel consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users. C) This is term is too vague to be the correct answer. D) This is not a marketing term. E) An organizational chain of command usually refers to the chain of authority within one organization, not across several.

Score: 0/1

9.

Larry's parents decide to buy him a car as a graduation present, so Larry places an order through Jeep.com for a customized Jeep Wrangler. The information that he specifies is transferred electronically to DaimlerChrysler, the manufacturer of Jeeps. The order is then sent electronically from DaimlerChrysler to its suppliers so they can send the necessary parts exactly when needed to assemble Larry's Jeep Wrangler. Larry's Jeep is manufactured and sent to the local dealer for Larry to pick up. The entire process, from order to delivery, took only ten days. This process is an example of _____ made possible by _____.

Student Response

Value

Correct Answer

Feedback

A. warehousing and materials handling; continuous flow of goods

0%

B. order processing; cross-docking

0%

C. customization; back-order shipping

0%

D. transportation; vendor-managed inventory

0%

E. "just-in-time" inventory management; electronic data interchange

100%

General Feedback:

Lecture page 94A) Warehousing deals with keeping and maintaining a finished product. In this example, the finished Jeep is never in a warehouse. Once it is manufactured it is shipped directly to the dealer.B) Sending the order electronically is an example of order processing but that is just part of the entire inventory process. Also, cross-docking is a materials handling process that has nothing to do with orders. C) A backorder is created when an item is out of stock. Back-order shipping is

a made up term that does not really make sense. D) Vendor managed inventory is an inventory-management system whereby the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items. This is not the case in this question because Larry’s parents place an order to DaimlerChrysler for the customized Jeep they want. E) Just-in-time inventory management is an inventory supply system that operates with very low inventories and requires fast, on-time delivery. The emergence of electronic data interchange (EDI) has facilitated order processing. DaimlerChrysler use EDI with Jeep.com to make order processing more efficient.

Score: 1/1

10.

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

Student Response


Feedback

A. product flow

0%

B. supply lag

0%

C. logistical lag

0%

D. customer response cycle

0%

E. lead time 100%

General Feedback:

Text page 423A) This is not an actual marketing term. B) This is not an actual marketing term. C) This is not an actual marketing term. D) This is not an actual marketing term. E) Lead time is the lag from ordering an item until it is received and ready for use or sale. It is also referred to as order cycle time or replenishment time.

Score: 0/1

1.

Marco traveled across three states to shop at Tiffany's to buy his girlfriend, Jana, a present. This is the only Tiffany's store in the entire region. The degree of channel coverage for Tiffany's is:

Student Response

Value

Correct Answer

Feedback

A. Intensive 0%

B. Exclusive 100%

C. Transactional

0%

D. Logistical 0%

E. Speed 0%

General Feedback:

Lecture page 90:

A. Intensive channel coverage is where the product is distributed in as many places as possible. This strategy is commonly used for convenience goods.B. Correct! Exclusive channel coverage means that the good is not widely distributed. Exclusive channel coverage provides an individual store with the exclusive right to distribute the product in a given area. Exclusive coverage is generally used for specialty goods.C. This term does not define a degree of channel coverage.D. This term does not define a degree of channel coverage.E. This term does not define a degree of channel coverage.

Score: 1/1

2.

Ralph Lauren has numerous ways to distribute its famous shirts to customers. Ralph Lauren has its own Polo stores throughout the U.S. and a Ralph Lauren website where customers can design and purchase their own shirts. In addition, Ralph Lauren sells its shirts through various retail stores such as Bloomingdales and Nordstrom. What type of channel is being used to sell Polo shirts through Nordstrom?

Student Value Correct Feedback

Response Answer

A. direct 0%

B. indirect 100%

C. vertically-integrated

0%

D. intensive 0%

E. exclusive 0%

General Feedback:

Lecture page 90:

A. A direct channel is where the producer and the ultimate consumer deal directly with each other. When selling shirts through Nordstrom’s Ralph Lauren is using an intermediary, and therefore is using an indirect channel. B. Correct! An indirect channel involves the use of an intermediary between the producer and the ultimate consumer. When selling shirts through Nordstrom’s Ralph Lauren is using an intermediary, and therefore is using an indirect channel. C. A vertically-integrated channel is one whereby a single channel member owns two or more different aspects of the distribution channel. Ralph Lauren selling shirts through its owns stores would be an example of a vertically integrated channel. D. This refers to a certain degree of channel coverage, not the channel type. E. This refers to a certain degree of channel coverage, not the channel type.

Score: 0/1

3.

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

Student Response


Feedback

A. middlemen. 0%

B. producers. 100%

C. wholesalers.

0%

D. retailers. 0%

E. brokers and agents.

0%

General Feedback:

Text page 395: Choice B is the correct answer. A direct channel is a situation where the producer deals directly with the ultimate consumer. There are no wholesalers or retailers acting as intermediaries. As a result, the producer must perform all the channel functions in a direct channel.

Score: 1/1

4.

Mark is in the logistics department at Lowe's. Which of the following would not be one of his duties?

Student Response

Value

Correct Answer

Feedback

A. Inventory management

0%

B. Transportation

0%

C. Warehousing and materials handling

0%

D. Servicing the product after delivery to the customer

100%

E. Order processing

0%

General Feedback:

Lecture page 94: The four logistical functions of a supply chain are transportation, warehousing and materials handling, order processing, and inventory management. Logistics deals with getting the right amount of the right products to the right place at the right time at the lowest possible cost. Logistics would not involve servicing the product after it has been delivered to the customer.

Score: 1/1

5.

Within the domain of logistics management, the customer service concept implies that

firms should:

Student Response

Value

Correct Answer

Feedback

A. automate customer service.

0%

B. set customer service levels and logistic costs simultaneously in order to achieve strategic goals.

100% Customer service is the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience. The ultimate goal is to achieve customer satisfaction in the most cost-effective manner. This involves balancing the logistical cost factors against customer service factors. This implies that firms should set customer service levels and logistic costs simultaneously in order to achieve strategic goals.

C. establish logistics costs and let customer service follow.

0%

D. maximize customer service levels, then make the necessary logistics decisions.

0%

E. minimize customer service levels, then make the necessary logistics decisions.

0%

General Feedback:

Text page 423 A) This doesn't make sense; some services cannot be automated. B) Customer service is the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience. The ultimate goal is to achieve customer satisfaction in the most cost-effective manner. This

involves balancing the logistical cost factors against customer service factors. This implies that firms should set customer service levels and logistic costs simultaneously in order to achieve strategic goals. C) The ultimate goal is to achieve customer satisfaction in the most cost-effective manner. Therefore customer service takes precedence over logistical costs. Without satisfied customers the need for low costs disappears. D) You do not need to maximize customer service levels first; however you need to make sure that the customers are satisfied and that logistical costs are as low as possible to achieve the desired level of customer service. It is best to make logistical cost decisions and customer service decisions simultaneously in order to achieve a happy balance between cost and service. E) You do not want to minimize customer service levels. It is best to make logistical cost decisions and customer service decisions simultaneously in order to achieve a happy balance between cost and service.

Score: 1/1

6.

A marketing expert described a _____ as looking like a butterfly. The manufacturer is the body of the butterfly with many different suppliers accumulated on one side of the body for the left wing and a large number of buyers collected on the other side to form the right wing.

Student Response


Feedback

A. materials handling facility

0%

B. market 0%

C. retailer cooperative

0%

D. logistical flow

0%

E. supply chain

100%

General Feedback:

Text page 416: The supply chain is the sequence of firms that perform activities required to create and deliver a good or service to consumer or industrial users. Thus, manufacturers receive materials from the “left wing”, and transform them into products to be sold to the “right wing”.

Score: 0/1

7.

What type of stores rely on their large size and very deep selection to try to dominate the market?

Student Response


Feedback

A. specialty stores

0%

B. discounters

0%

C. department stores

0%

D. anchors 0%

E. power retailers

100%

General Feedback:

Lecture page 91A) Specialty stores are small and specialize in a particular type of merchandise. The smaller stores in a mall are specialty stores. B) Discounters are firms like Wal-Mart and Target that emphasize many different prices at relatively low prices. C) Department stores are large stores that have multiple departments within them. They usually are the “anchor stores” in a mall like Macy’s ad JC Penney. D) Anchor stores are well known national or regional stores, like Sears, Macy’s and such that are usually found in malls. E) Power retailers offer very large and deep selections in a narrow range of products. Best Buy and Home Depot are good examples because they carry huge selections of products in their respective categories.

Score: 1/1

8.

The Hallmark Card Company is able to maintain good dealer relationships because it limits the number of stores in a geographic area and carefully monitors the quality of the stores through which it sells. Hallmark uses _____ distribution.

Student Response

Value

Correct Answer

Feedback

A. selective 100%

B. extensive 0%

C. concentrated

0%

D. exclusive 0%

E. intensive 0%

General Feedback:

Text page 404A) Selective distribution is when a firm selects a few retail outlets in a specific geographical area to carry its products. B) Extensive distribution is not a real term. It is a combination of exclusive and intensive distribution. C) Concentrated distribution is a made up term. D) Exclusive distribution is the extreme opposite of intensive distribution because only one retail outlet in a specified geographical area carries the firm’s product. E) Intensive distribution is when a firm tries to place its products and services in as many outlets as possible.

Score: 1/1

9.

Relationship Marketing is characterized by:I. A long-term perspectiveII. A product quality focusIII. InterdependenceIV. An emphasis on price

Student Response


Feedback

A. II, III, and IV only

0%

B. I, II, III, and IV

0%

C. I and III only

100%

D. I, II, and 0%

IV only

E. I and IV only

0%

General Feedback:

Lecture page 94A) A long-term perspective characterizes relationship marketing, while price emphasis and product quality focus are characteristics of transaction marketing not relationship marketing. B) Price emphasis and product quality focus are characteristics of transaction marketing not relationship marketing. C) A long-term perspective and interdependence are characteristics of relationship marketing. D) Interdependence is a characteristic of relationship marketing. Price emphasis and product quality focus are characteristics of transaction marketing not relationship marketing E) Price emphasis is not a characteristic of relationship marketing.

Score: 0/1

10.

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

Student Response

Value

Correct Answer

Feedback

A. strategic distribution

0%

B. logistical-assisted manufacturing (LAD)

0%

C. logistics 100%

D. movement and storage

0%

E. direct selling 0%

General Feedback:

Text page 416A) Determining the best strategy of distribution is one part of logistics. B) This is a made up term. C) This is the definition of logistics.

D) Movement and storage of goods are part of logistics decisions. E) Selling is only part of the channel function and does not really deal with logistics.

Score: 0/1

1.

Mike is an avid musician who opened a new music store called MP3s a few years ago. Since then Mike has become much more knowledgeable about the business and has decided to launch his own record label in order to have more control over the music that he sells in his stores. This is an example of what?

Student Response

Value

Correct Answer

Feedback

A. Administered channel

0%

B. Mass Merchandising

0%

C. Backward vertical integration

100% Mike is in the retail aspect of music (his music store) and is moving towards the manufacturing aspect (his record label). This is an example of backward vertical integration. Moving the other direction from manufacturing towards retail is called forward integration.

D. Contractual channel

0%

E. Forward vertical integration

0%

General Feedback:

Lecture page 91A) An administered vertical marketing system achieves coordination at successive stages of production and distribution by the size and influence of one channel member. B) This is a term describing a particular type of low price retailer, equivalent to discounter. C) Mike is in the retail aspect of music (his music store) and is moving towards the manufacturing aspect (his record label). This is an example of

backward vertical integration. Moving the other direction from manufacturing towards retail is called forward integration. D) A contractual channel would involve would involve independent production and distribution firms integrating their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone. E) Forward vertical integration is moving from manufacturing towards retail. An example of forward integration in this case it would involve a record label opening a retail outlet.

Score: 1/1

2.


Student Response

Value

Correct Answer

Feedback

A. Intensive 0%

B. Exclusive 100%

C. Transactional

0%

D. Logistical 0%

E. Speed 0%

General Feedback:

Lecture page 90:

A. Intensive channel coverage is where the product is distributed in as many places as possible. This strategy is commonly used for convenience goods.B. Correct! Exclusive channel coverage means that the good is not widely distributed. Exclusive channel coverage provides an individual store with the exclusive right to distribute the product in a given area. Exclusive coverage is generally used for specialty goods.C. This term does not define a degree of channel coverage.D. This term does not define a degree of channel coverage.E. This term does not define a degree of channel coverage.

Score: 1/1

3.

A consumer buys berries at Remlinger Farms, flour and sugar at a bulk food store, and

milk and butter at a local dairy, then returns home to bake two dozen strawberry pies for a family reunion. Considering only her shopping behavior (not the baking of the pies), which logistical function activity did the consumer engage in that is ordinarily performed by a retailer, such as a supermarket?

Student Response


Feedback

A. risk taking 0%

B. assorting 100%

C. transporting

0% Transporting means physically moving a product to customers. In this case, the consumer performs the last leg of the transportation function by hauling the items from the stores to her home. However, the consumer also hauls items home from the supermarket, so this aspect of transportation is not performed by the supermarkets either.

D. storing 0%

E. creating form utility

0%

General Feedback:

Text page 391A) Risk taking is a transactional function. This is what the retailer does when they assume ownership of inventory, (such as milk etc.) that can become obsolete or deteriorate. B) Assorting involves creating product assortments from several sources to service customers. Since the consumer is buying products directly from the producers on an independent basis, the consumer is performing the assorting function normally performed by retailers such as supermarkets. Instead of buying berries, flour, sugar, milk, and butter all at a single retail store, the consumer independently seeks out these products from the producers. C) Transporting means physically moving a product to customers. In this case, the consumer performs the last leg of the transportation function by hauling the items from the stores to her home. However, the consumer also hauls items home from the supermarket, so this aspect of transportation is not performed by the supermarkets either. D) Storing involves assembling and protecting products at a convenient location to offer better customer service. The consumer is not performing this task by buying various goods from producers. E) Form utility involves enhancing a product or service to make it more appealing to buyers. The consumer is still buying the same product whether or not he/she buys from the producer or retailer. As a result, form utility is not created by the consumer's actions.

Score: 0/1

4.

Mr. D is the manager of a local Walgreens. His biggest concern is to make sure that his store is always making the most profit possible. He cuts costs by focusing on certain logistical decisions. Every other day Walgreens receives shipments from Pepsi, Evian, Hershey, and numerous other manufacturers. Walgreens insists on small shipments every two days, which helps to keep their inventory costs low. What system is Mr. D using at Walgreens to reduce his costs?

Student Response


Feedback

A. electronic data interchange

0%

B. materials handling

0%

C. backward vertical integration

0%

D. just in time inventory

100%

E. vendor managed inventory

0%

General Feedback:

Lecture page 94:

A. EDI’s are used to transmit and manage information in a supply chain. This is achieved through the linking of computers and the continuous flow of information throughout the supply chain. An electronic data interchange combines proprietary computer and telecommunication technologies to exchange electronic invoices, payments, and information among suppliers, manufacturers, and retailers. B. Materials handling deals with how products are handled throughout the supply chain. C. Backward vertical integration occurs when a retailer owns a manufacturing operation, or whenever a firm moves backward in the supply chain in order to gain more control over the previous link. D. Correct! Just-in-time delivery by definition is an inventory supply system

that operates with very low inventories and requires fast, on-time delivery. In such a system materials needed for production arrive from suppliers “just in time”, which means neither before not after they are needed. Mr. D is attempting to employ this system by insisting on small shipments every two days. E. Vendor managed inventory is when the retailer allows the supplier or manufacturer to control the amount of inventory the store has. For example, if Walgreens allowed Pepsi, Evian, Hershey, and other manufacturers to monitor stock levels and deliver products when they wanted, they would be employing a vendor managed inventory system.

Score: 1/1

5.


Student Response


Feedback

A. Strategic information alliance

0%


0%


0%

D. Integrated sales management system

0%


100%

General Feedback:


Score: 1/1

6.

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 standards, sometimes with procedures run remotely by Cisco. Most are then drop-shipped to buyers, untouched by human hands on Cisco's payroll. The individuals who monitor these transactions and make sure each is performed in a cost-effective and timely fashion are engaged in:

Student Response

Value

Correct Answer

Feedback

A. just-in-time management.

0%

B. point-to-point management.

0%

C. materials handling.

0%

D. total distribution cost management.

0%

E. supply chain management.

100%

General Feedback:

Text page 416: Supply chain management is the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering goods and services to consumers. Cisco’s supply chain requires sophisticated information technology that allows different companies to share and operate systems for delivering the product to the consumer. Supply chain management involves overseeing and applying these different methods in order to ensure their smooth operation.

Score: 0/1

7.

MGM is a company that makes and distributes movies and television shows, but some say the company's real value lies in its library of over 4,100 films, on which it currently collects licensing fees. Concerning future growth for the company, a news article states, "[MGM CEO] Yemenidjian's vision, viewed as solid by Wall Street and industry watchers alike, is to develop branded channels, such as MGM Drama or MGM Comedy, through which it can leverage the library to reap distribution and advertising fees as well." MGM's strategy of launching cable television channels on which to display its movies and shows is an example of:

Student Response


Feedback

A. franchising 0%

B. horizontal integration

0%

C. administered channeling

0%

D. backward vertical integration

0%

E. forward vertical integration

100%

General Feedback:

Lecture page 91A) Franchising is a contractual arrangement between a parent company and an individual or firm that allows the franchisee to operate a certain type of business under an established name and according to specific rules. Here MGM would own everything and not be contracting with another firm. B) Horizontal integration occurs when a company buys another firm in the same industry. In this case if MGM bought another film library this would be horizontal integration. C) Administered vertical marketing systems achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather through ownership. Administered channeling is not a marketing term. D) Backward vertical integration occurs when a firm owns the channel of distribution at a level further away from the consumer. In this example, if MGM owned TV channels and then bought a film library to show on the channels that would be backward vertical integration. E) MGM is a producer of movies and TV channels are a mode of distributing

movies to consumers. By starting its own cable TV channels, MGM is forward vertically integrating toward the consumer market rather than selling or renting its movies to independently owned cable channels.

Score: 1/1

8.

The Hallmark Card Company is able to maintain good dealer relationships because it limits the number of stores in a geographic area and carefully monitors the quality of the stores through which it sells. Hallmark uses _____ distribution.

Student Response

Value

Correct Answer

Feedback

A. selective 100%

B. extensive 0%

C. concentrated

0%

D. exclusive 0%

E. intensive 0%

General Feedback:

Text page 404A) Selective distribution is when a firm selects a few retail outlets in a specific geographical area to carry its products. B) Extensive distribution is not a real term. It is a combination of exclusive and intensive distribution. C) Concentrated distribution is a made up term. D) Exclusive distribution is the extreme opposite of intensive distribution because only one retail outlet in a specified geographical area carries the firm’s product. E) Intensive distribution is when a firm tries to place its products and services in as many outlets as possible.

Score: 1/1

9.

Larry's parents decide to buy him a car as a graduation present, so Larry places an order through Jeep.com for a customized Jeep Wrangler. The information that he specifies is transferred electronically to DaimlerChrysler, the manufacturer of Jeeps. The order is then sent electronically from DaimlerChrysler to its suppliers so they can send the necessary parts exactly when needed to assemble Larry's Jeep Wrangler. Larry's Jeep is manufactured and sent to the local dealer for Larry to pick up. The entire process, from order to delivery, took only ten days. This process is an example of _____ made possible

by _____.

Student Response

Value

Correct Answer

Feedback

A. warehousing and materials handling; continuous flow of goods

0%

B. order processing; cross-docking

0%

C. customization; back-order shipping

0%

D. transportation; vendor-managed inventory

0%

E. "just-in-time" inventory management; electronic data interchange

100%

General Feedback:

Lecture page 94A) Warehousing deals with keeping and maintaining a finished product. In this example, the finished Jeep is never in a warehouse. Once it is manufactured it is shipped directly to the dealer.B) Sending the order electronically is an example of order processing but that is just part of the entire inventory process. Also, cross-docking is a materials handling process that has nothing to do with orders. C) A backorder is created when an item is out of stock. Back-order shipping is a made up term that does not really make sense. D) Vendor managed inventory is an inventory-management system whereby the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items. This is not the case in this question because Larry’s parents place an order to DaimlerChrysler for the customized Jeep they want. E) Just-in-time inventory management is an inventory supply system that operates with very low inventories and requires fast, on-time delivery. The emergence of electronic data interchange (EDI) has facilitated order

processing. DaimlerChrysler use EDI with Jeep.com to make order processing more efficient.

Score: 1/1

10.

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

Student Response

Value

Correct Answer

Feedback

A. just-in-time inventory management system

0%

B. production control

0%

C. inventory expediting

0%

D. materials handling

100%

E. intermodal transportation

0%

General Feedback:

Text page 429A) Just-in-time inventory management is used when a firm wants their inventory “just in time” to use it. It is an inventory supply system that operates with very low inventories and requires fast, on time delivery. This term is too broad to be the definition in the question. B) This term is too vague. Also, this question is talking about moving or shipping goods not producing them. C) This is a made up term. D) This is the definition of materials handling. An example would be cross-docking. E) Intermodal transportation involves combining different transportation modes to get the best features of each. Materials handling may use intermodal transportation.

Score: 0/1

1.

Historically, the "channel captain" has been the manufacturer. In recent years, the power has been shifting to:

Student ResponseValueCorrect AnswerFeedback

A.Suppliers0%

B.Retailers100%

C.Consumers0%

D.Wholesalers0%

E.Advertisers0%

General Feedback:Lecture page 91: Retailers have consolidated or grown such that many of them are now larger than the manufacturers that sell to them. Plus, retailers have been using more and more technology to record their customers' purchases. This detailed information about consumer spending patterns gives retailers more power in the marketplace.Score:0/1

2.

Macy's is referred to as an "anchor store" in a large regional mall. It carries a wide variety of merchandise, including clothing, shoes, and household merchandise. Macy's would best be described as a _______.

Student ResponseValueCorrect AnswerFeedbackA.Power Retailer0%

B.Discounter0%

C.Specialty Store0%

D.Wholesaler0%

E.Department Store100%

General Feedback:Lecture page 91:

A. Power retailers, known as category killers, are large and generally have a narrow product line with great depth. The question states that Macy’s carries a wide variety of merchandise, thus we can eliminate this possible answer choice.B. Discounters generally have many product lines with shallow selection. Unlike department stores such as Macy’s, discounters do not add much value to the products they sell. Examples of discounters include Target and Wal-Mart.C. Specialty stores are generally small and carry limited product lines, the exact opposite of Macy’s.D. A wholesaler acts as an intermediary between manufacturers and retailers.E. Correct! Department stores are large, carry a wide variety of product lines with average to deep selection, and are generally the anchor stores within malls. This accurately describes Macy’s.Score:1/1

3.

Manufacturer's agents:


A.furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.0%

Rack jobbers furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers, which means they retain the title to the products displayed and bill retailers only for the merchandise sold.B.take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise.0%

C.work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.100%

D.own the merchandise they sell but do not physically handle, stock, or deliver it.0%

E.have a small warehouse from which they stock their trucks for distribution to retailers.0%

General Feedback:Text page 399A) Rack jobbers furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers, which means they retain the title to the

products displayed and bill retailers only for the merchandise sold.B) Cash and carry wholesalers take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandiseC) Manufacturer's agents work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. Manufacturer's agents act as a producer's sales arm in a territory and are principally responsible for the transactional channel functions, principally selling.D) Drop shippers, or desk jobbers, own the merchandise they sell but do not physically handle, stock, or deliver it.E) Truck jobbers have a small warehouse from which they stock their trucks for distribution to retailers.Score:0/1

4.



A.electronic data interchange0%

B.materials handling0%

C.backward vertical integration0%

D.just in time inventory100%

E.vendor managed inventory0%

General Feedback:Lecture page 94:

A. EDI’s are used to transmit and manage information in a supply chain. This is achieved through the linking of computers and the continuous flow of information throughout the supply chain. An electronic data interchange combines proprietary computer and telecommunication technologies to exchange electronic invoices, payments, and information among suppliers, manufacturers, and retailers.B. Materials handling deals with how products are handled throughout the supply chain.C. Backward vertical integration occurs when a retailer owns a manufacturing operation, or whenever a firm moves backward in the supply chain in order to gain more control over the previous link.D. Correct! Just-in-time delivery by definition is an inventory supply system that operates with very low inventories and requires fast, on-time delivery. In such a system materials needed for production arrive from suppliers “just in time”, which means neither before not after they are needed. Mr. D is attempting to employ this system by insisting on small shipments every two days.E. Vendor managed inventory is when the retailer allows the supplier or manufacturer to control the amount of inventory the store has. For example, if Walgreens allowed Pepsi, Evian, Hershey, and other manufacturers to monitor stock levels and deliver products when they wanted, they would be employing a vendor managed inventory system.

Score:0/1

5.

Within the domain of logistics management, the customer service concept implies that firms should:


A.automate customer service.0%

This doesn't make sense; some services cannot be automated.B.set customer service levels and logistic costs simultaneously in order to achieve strategic goals.100%

C.establish logistics costs and let customer service follow.0%

D.maximize customer service levels, then make the necessary logistics decisions.0%

E.minimize customer service levels, then make the necessary logistics decisions.0%

General Feedback:Text page 423A) This doesn't make sense; some services cannot be automated.B) Customer service is the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience. The ultimate goal is to achieve customer satisfaction in the most cost-effective manner. This involves balancing the logistical cost factors against customer service factors. This implies that firms should set customer service levels and logistic costs simultaneously in order to achieve strategic goals.C) The ultimate goal is to achieve customer satisfaction in the most cost-effective manner. Therefore customer service takes precedence over logistical costs. Without satisfied customers the need for low costs disappears.D) You do not need to maximize customer service levels first; however you need to make sure that the customers are satisfied and that logistical costs are as low as possible to achieve the desired level of customer service. It is best to make logistical cost decisions and customer service decisions simultaneously in order to achieve a happy balance between cost and service.E) You do not want to minimize customer service levels. It is best to make logistical cost decisions and customer service decisions simultaneously in order to achieve a happy balance between cost and service.Score:0/1

6.

In a logistics setting, replenishment time refers to lead time for an item, which means the lag from ordering an item until it is:


A.promised for delivery.0%

B.billed and paid for.0%

C.acknowledged by the customer.0%

D.received and ready for use or sale.100%

E.billed to the customer.0%

General Feedback:Text page 423: By definition, the time between ordering an item until it is received and ready for use or sale is replenishment time. Replenishment time is also known as order cycle time or lead time. A current emphasis in supply chain management is to reduce lead time, or replenishment time, so that the inventory levels may be minimized.Score:0/1

7.

David's job for Walgreen’s consists of looking at different sites and

determining which one is the best location to build a new store. He prefers sites that are on the "evening" side of the street where people are returning home from work, since these locations are usually more profitable. This is an example of the _____ aspect of _____ utility.


A.speed, time0%

B.convenience, time0%

C.convenience, place100%

D.place, time0%

E.prestige, place0%

General Feedback:Lecture page 89A) The location of the Walgreen’s creates place utility moreso than time utility. Also, the convenience aspect is more important than the speed aspect.B) Although it may be true that the more convenient location also creates time utility, place utility is the basis for the time savings and therefore a better answer.C) The location is convenient because it is on the side of the street that people returning from work in the evening are driving on. The convenient location of the store creates its place utility.D) Place is not one of the aspects of time utility. Place is a whole different type of utility.E) There is no mention of the location being prestigious. The utility is created by the convenience of the location.Score:0/1

8.

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


A.transformational0%

B.logistical0%

C.

transactional0%

D.implementing0%

E.facilitating100%

General Feedback:Text page 391A) Transformational function is not one of the functions performed by marketing channel members.B) Logistical functions include assorting, storing, sorting, and transporting products.C) Transactional functions involve buying, selling, and risk taking because intermediaries stock merchandise in anticipation of sales.D) Implementing is not one of the functions performed by intermediaries.E) The facilitating function includes financing, grading, and marketing information and research.Score:0/1

9.

Susie goes to Publix and buys Dawn dish soap, Crest toothpaste, and Tide laundry detergent. As the cashier is scanning the bar codes of the various items at the cash register, it is sending a signal to computers at Procter & Gamble that those items have been bought. When they see enough customers have bought a certain product, P&G managers instructs the warehouse to ship more to that store location. Which of the following is this scenario describing?

Student Response

ValueCorrect AnswerFeedback

A.Electronic data interchange100%

B.Sales forecasting0%

C.Facilitating function0%

D.Transportation function0%

E.Supply chain management0%

General Feedback:Lecture Page 94A) Electronic data interchange (EDI) combines proprietary computer and telecommunication technologies to exchange electronic invoices, payments, and information among suppliers, manufacturers, and retailers. In this example Publix is connected with Procter & Gamble by using EDI.B) A sales forecast is the total sales of a product that a firm

expects to sell during a specified time period. In this example Procter & Gamble is not forecasting any sales, they are just responding to actual sales.C) The facilitating function describes the financing, grading, and marketing information and research performed by intermediaries.D) The transportation function involves the buying, selling, and risk taking performed by intermediaries.E) Supply chain management is the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering goods and services that provide value to consumers. EDI may be used in supply chain management, but overall this answer is too broad.Score:1/1

10.

For 20 years, Regardo Inc. has produced small specially-ordered machine parts. It sends out numerous small-sized orders throughout the week. This has been a very expensive way of doing business, and its logistics manager wants to save money on outbound transportation costs. What should she do?


A.Use an air express company to ensure that orders arrive on time0%

B.Use an intermodal transportation method to haul the orders0%

C.Charter a plane once a week to carry all necessary orders

0%

D.Employ the services of a freight forwarder100%

E.Work with her suppliers to design a JIT system0%

General Feedback:Text page 428A) Orders arriving on time is not the problem. The problem is high transportation costs and air freight is very costly.B) An intermodal approach would generally be larger shipments and Regardo Inc. has many small-sized orders.C) Chartering a plane would not save money on transportation costs and would be very expensive in fuel costs aloneD) Regardo Inc. sends out a lot of small orders. This is a precisely the circumstance that calls for the use of a freight forwarder, which combines small shipments from several sources to secure all of them more efficient shipping and lower their expense.E) Designing a JIT system has to do with inventory costs. It will not help her reduce her outbound transportation costs.Score:0/1

1.

Jeb is trying to market a new type of chewing gum. His new gum, Popsalot, is a low involvement purchase. Which type of channel coverage should he employ?

Student Respons


Feedback

e

A.

direct 0%

B. exclusive

0%

C. intensive 100%

D.

indirect 0%

E. selective 0%

General Feedback:

Lecture page 90

A. This term does not define a degree of channel coverage. It represents a type of marketing channel. B. Exclusive coverage would be inappropriate since it is generally used for specialty goods, and involves giving an individual store the exclusive right to distribute the product in a given area. C. Correct! Intensive channel coverage is commonly used for convenience goods. Intensive channel coverage involves trying to distribute the product in as many locations as possible. Intensive distribution makes sense for chewing gum, a convenience good, since it would be in Jeb’s best interest to have his gum sold at as many locations as possible. D. This term does not define a degree of channel coverage. It represents a type of marketing channel. E. Selective coverage involves selecting a few retail outlets in a specific area to carry the product. This is done in order to maintain a certain image for the product.

Score: 0/1

2.

Historically, the "channel captain" has been the manufacturer. In recent years, the power has been shifting to:

Student Response

Value

Correct Answer

Feedback

A.

Suppliers 0%

B. Retailers 100%

C. Consumers 0%

D.

Wholesalers

0%

E. Advertisers 0%

General Feedback:

Lecture page 91: Retailers have consolidated or grown such that many of them are now larger than the manufacturers that sell to them. Plus, retailers have been using more and more technology to record their customers' purchases. This detailed information about consumer spending patterns gives retailers more power in the marketplace.

Score: 0/1

3.

Jacob has opened Total Lawn Care, a service firm that will revolutionize the lawn care industry. Although Jacob has limited operating capital, he still wants to open as many stores as he can, as quickly as possible. Which of the following options should he choose?

Student Response

Value

Correct Answer

Feedback

A.

An administered vertical marketing system in order to achieve distribution.

0%

B. A wholesaler-sponsored vertical

0%

marketing system to obtain greater economies of scale.

C. A contractual vertical marketing system (franchise).

100%

D.

Branch offices around the country to provide the exposure he needs.

0%

E. A corporate vertical marketing system to control the distribution system established.

0%

General Feedback:

Text page 400A) An administered vertical marketing system requires coordination at successive stages of production and distribution, much like the corporate vertical marketing system does, however it achieves it by the size and influence of one channel member rather than through ownership. B) Although a wholesaler-sponsored vertical marketing system would help the reduce the cost of operating Jacob's business, it would not given him the capital needed to expand. C) A contractual vertical marketing system is Jacob's best option since he has limited capital and wants to expand rapidly. Franchising Jacob's business will allow it to grow quickly without much additional capital invested. The franchisees are the ones investing the additional capital which makes it possible for the franchisor, Jacob, to expand his business

rapidly. D) Since Jacob has limited operating capital, and having branch offices around the country would require a large amount of money, this is not the best approach. E) A corporate vertical marketing system involves the combination of successive stages of production and distribution under a single ownership. Examples of this include forward and backward integration. This system is used to reduce distribution costs and gain greater control over supply sources. It requires a lot of capital and will not help Jacob open stores as quickly as possible.

Score: 0/1

4.


Student Response

Value

Correct Answer

Feedback

A.

electronic data interchange

0%

B. materials handling

0%

C. backward vertical integration

0%

D.

just in time inventory

100%

E. vendor managed inventory

0%

General Feedback:

Lecture page 94:

A. EDI’s are used to transmit and manage information in a supply chain. This is achieved through the linking of computers and the continuous flow of information throughout the supply chain. An electronic data interchange combines proprietary computer and telecommunication technologies to exchange electronic invoices, payments, and information among suppliers, manufacturers, and retailers. B. Materials handling deals with how products are handled throughout the supply chain. C. Backward vertical integration occurs when a retailer owns a manufacturing operation, or whenever a firm moves backward in the supply chain in order to gain more control over the previous link. D. Correct! Just-in-time delivery by definition is an inventory supply system that operates with very low inventories and requires fast, on-time delivery. In such a system materials needed for production arrive from suppliers “just in time”, which means neither before not after they are needed. Mr. D is attempting to employ this system by insisting on small shipments every two days. E. Vendor managed inventory is when the retailer allows the supplier or manufacturer to control the amount of inventory the store has. For example, if Walgreens allowed Pepsi, Evian, Hershey, and other manufacturers to monitor stock levels and deliver products when they wanted, they would be employing a vendor managed inventory system.

Score: 0/1

5.


Student Response

Value

Correct Answer

Feedback

A.

Strategic information alliance

0%


0%


0%

D.

Integrated sales management system

0%


100%

General Feedback:


Score: 0/1

6.

_____ are firms that perform most or all of the logistics functions that manufacturers, suppliers, and distributors would normally perform themselves.

Student Response

Value

Correct Answer

Feedback

A.

Freight forwarders

0%

B. Freight jobbers

0%

C. Wholesalers

0%

D.

Rack jobbers

0%

E. Third-party 100%

logistics providers

General Feedback:

Text page 425:

A. Freight forwarders are firms that accumulate small shipments into larger lots and then hire a carrier to move them, usually at reduced rates. Thus, they do not perform all of the logistical functions necessary for a supply chain to operate. B. Created term. C. Wholesalers are just one link in the supply chain, and certainly do not perform all of the logistical functions required to operate a supply chain effectively. D. Rack jobbers furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers, which means they retain the title to the products displayed and bill retailers only for the merchandise sold. Correct! Third-party logistics providers perform most or all of the logistics functions that manufacturers, suppliers, and distributors would normally perform. Thus, they perform the four key logistical functions of a supply chain: transportation, warehousing and materials handling, order processing, and inventory management. In the competitive business world these functions are complex and often costly. As a result many companies are choosing to outsource them to third parties.

Score: 0/1

7.

Many elementary schools participate in programs where students go out into the community on behalf of a company to sell products from a catalog of goods, which the company ships directly to the consumer. Usually the school gets a cut of the profits and the kids are rewarded with prizes based on how much they sell. What type of channel member do the school children represent in this example?

Student Response

Value

Correct Answer

Feedback

A.

Network Marketer

0%

B. Merchant Wholesale

0%

r

C. Agent 100%

D.

Jobber 0%

E. Distributor 0%

General Feedback:

Lecture page 90A) Network Marketer refers to network marketing or multi-level marketing, where independent distributors build a network of distributors under them. B) Merchant wholesalers are independently owned firms that take title to the merchandise they handle. In this example the kids do not take possession of the goods they are selling. C) Agents serve primarily as the independent selling arm of producers and represent a producer or in this case the catalog company. Agents do not take the title to the goods, nor do they ever take physical possession of the goods. The kids simply represent the company, take orders, and transfer the orders back to the manufacturer. D) Jobbers are limited merchandise wholesalers. They do not perform all functions but they do more than simply sell the product, including taking title to the goods. E) Distributors are general merchandise wholesalers. They perform all the functions of a channel including taking possession of the goods.

Score: 0/1

8.

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

Student Response

Value

Correct Answer

Feedback

A.

transformational

0%

B. logistical 0%

C. transactional 0%

D.

implementing 0%

E. facilitating 100%

General Feedback:

Text page 391 A) Transformational function is not one of the functions performed by marketing channel members. B) Logistical functions include assorting, storing, sorting, and transporting products.C) Transactional functions involve buying, selling, and risk taking because intermediaries stock merchandise in anticipation of sales. D) Implementing is not one of the functions performed by intermediaries. E) The facilitating function includes financing, grading, and marketing information and research.

Score: 0/1

9.

Susie goes to Publix and buys Dawn dish soap, Crest toothpaste, and Tide laundry detergent. As the cashier is scanning the bar codes of the various items at the cash register, it is sending a signal to computers at Procter & Gamble that those items have been bought. When they see enough customers have bought a certain product, P&G managers instructs the warehouse to ship more to that store location. Which of the following is this scenario describing?

Student Response

Value

Correct Answer

Feedback

A.

Electronic data interchange

100%

B. Sales forecasting

0%

C. Facilitating function

0%

D.

Transportation function

0%

E. Supply chain management

0%

General Feedback:

Lecture Page 94A) Electronic data interchange (EDI) combines proprietary computer and telecommunication technologies to exchange electronic invoices, payments, and information among suppliers, manufacturers, and retailers. In this example Publix is connected with Procter & Gamble by using EDI. B) A sales forecast is the total sales of a product that a firm expects to sell during a specified time period. In this example Procter & Gamble is not forecasting any sales, they are just responding to actual sales. C) The facilitating function describes the financing, grading, and marketing information and research performed by intermediaries. D) The transportation function involves the buying, selling, and risk taking performed by intermediaries. E) Supply chain management is the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering goods and services that provide value to consumers. EDI may be used in supply chain management, but overall this answer is too broad.

Score: 0/1

10.

Within the context of a supply chain, _____ is the ability of a logistics system to satisfy users in terms of time, dependability, communications, and convenience.

Student Response

Value

Correct Answer

Feedback

A.

distribution management

0%

B. customer service

100%

C. stockout creation

0%

D.

lead time 0%

E. replenishment

0%

General Feedback:

Text page 423 A) Distribution management is too vague of a term to fit in this answer. B) In the context of a supply chain this is the definition of customer service. C) Stockouts occur when firms run out of inventory. Firms would not want to create a stockout. D) Lead time is the lag from ordering an item until it is received and ready for use or sale. E) Replenishment refers to restocking inventory. When a stockout occurs inventory needs to be replenished.

Score: 0/1

1.

Cindy wants to open a retail store in the mall where she can sell a few carefully selected lines of women's clothing. If Cindy opens her shop, what kind of store would it be considered?

Student Response Value Correct Answer Feedback

A. Specialty Store 100% Student Response

B. Nonstore Retailer 0%

C. Department Store 0%

D. Discounter 0%

E. Power Retailer 0%

General Feedback: Lecture page 91:

A. Correct! Specialty stores are generally small and carry limited product lines with average to deep selection. This is the best description of Cindy’s shop.

B. Distracter

C. Department stores are large, carry a wide variety of product lines with average to deep selection, and are generally the anchor stores within malls.

D. Discounters generally have a large number of product lines with shallow selection.

E. Power retailers, known as category killers, are large and generally have a narrow product line with great depth.

Score: 0/1

2.



A. Intensive 0%

B. Exclusive 100% Student Response

C. Transactional 0%

D. Logistical 0%

E. Speed 0%

General Feedback: Lecture page 90:

A. Intensive channel coverage is where the product is distributed in as many places as possible. This strategy is commonly used for convenience goods.

B. Correct! Exclusive channel coverage means that the good is not widely distributed. Exclusive channel coverage provides an individual store with the exclusive right to distribute the product in a given area. Exclusive coverage is generally used for specialty goods.

C. This term does not define a degree of channel coverage.

D. This term does not define a degree of channel coverage.

E. This term does not define a degree of channel coverage.

Score: 0/1

3.

Manufacturer's agents:


A. furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers. 0%

B. take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise. 0%

C. work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. 100% Student Response

D. own the merchandise they sell but do not physically handle, stock, or deliver it. 0%

E. have a small warehouse from which they stock their trucks for distribution to retailers. 0%

General Feedback: Text page 399

A) Rack jobbers furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers, which means they retain the title to the products displayed and bill retailers only for the merchandise sold.

B) Cash and carry wholesalers take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise

C) Manufacturer's agents work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. Manufacturer's agents act as a producer's sales arm in a territory and are principally responsible for the transactional channel functions, principally selling.

D) Drop shippers, or desk jobbers, own the merchandise they sell but do not physically handle, stock, or deliver it.

E) Truck jobbers have a small warehouse from which they stock their trucks for distribution to retailers.

Score: 0/1

4.

Cross-docking and inventory management are examples of what concept?


A. The distinction between a channel of distribution and actual physical distribution of a product 0%

B. Logistics 100% Student Response

C. Transaction Marketing 0%

D. Channel Dynamics 0%

E. Relationship Marketing 0%

General Feedback: Lecture page 94: Logistics focuses on getting the right amount of the right product to the right place at the right time at the lowest possible cost. The emphasis of logistics is on distribution, getting the product from point of origin to point of consumption. Cross-docking allows for the quick and efficient method of sorting goods coming from the manufacturer to the retailer. Cross-docking essentially involves two docks, an arrival dock and a departure dock. Goods coming from the manufacturer enter the plant at the arrival dock and are then sorted and prepared to exit on the departure dock. Thus, cross-docking serves an important logistical function since it allows goods to flow quickly and efficiently from the manufacturer to the retailer. Inventory management requires coordination between suppliers and vendors in order to maintain optimal levels of inventory. This an example of logistics since inventory management focuses on the movement of products in a cost effective manner throughout the supply chain.

Score: 0/1

5.



A. Strategic information alliance 0%

B. Reciprocal data exchange 0%

C. Integrated information system 0%

D. Integrated sales management system 0%

E. Electronic data interchange 100% Student Response

General Feedback: Text page 421: EDI’s are used to transmit and manage information in a supply chain. This is achieved through the linking of computers and the continuous flow of information throughout the supply chain. An electronic data interchange combines proprietary computer and telecommunication technologies to exchange electronic invoices, payments, and information among suppliers, manufacturers, and retailers.

Score: 0/1

6.

A marketing expert described a _____ as looking like a butterfly. The manufacturer is the body of the butterfly with many different suppliers accumulated on one side of the body for the left wing and a large number of buyers collected on the other side to form the right wing.


A. materials handling facility 0%

B. market 0%

C. retailer cooperative 0%

D. logistical flow 0%

E. supply chain 100% Student Response

General Feedback: Text page 416: The supply chain is the sequence of firms that perform activities required to create and deliver a good or service to consumer or industrial users. Thus, manufacturers receive materials from the “left wing”, and transform them into products to be sold to the “right wing”.

Score: 0/1

7.

Mike is driving over to his girlfriend's apartment and decides to buy some gum. He could stop in a gas station, go to any grocery store, go to any discount store, or even buy some out of a vending machine. The reason Mike has so many options to buy gum is because chewing gum companies strive for _____ channel coverage.


A. Indirect 0%

B. Intensive 100% Student Response

C. Selective 0%

D. Direct 0%

E. Direct 0%

General Feedback: Lecture page 90

A) Indirect channel coverage is not one of the three 3 degrees of channel coverage.

B) Intensive distribution is when a firm tries to place its products and services in as many outlets as possible. Firms using this want their product to be in every place a consumer could conceivably get it, which is what gum companies want.

C) Selective channel coverage is in between exclusive and intrusive distribution. A firm selects a few retail outlets in a specific geographical area to carry its products.

D) Direct is not one of the degrees of channel coverage.

E) Exclusive distribution is the extreme opposite of intensive distribution because only one retail outlet in a specified geographical area carries the firm’s product.

Score: 0/1

8.

Rob stops at the supermarket to purchase a package of Oreos and other groceries. He is the ultimate consumer in a pipeline from the producer through intermediaries including the grocery store. This pipeline is actually a:


A. logistical function 0%

B. transactional function 0%

C. consumer market 0%

D. marketing intermediary 0%

E. marketing channel 100% Student Response


A) Logistical functions are provided by intermediaries. They include the assorting, storing, sorting, and transporting that are functions of the marketing channel performed by the intermediaries.

B) Transactional functions are also performed by intermediaries. This includes the buying, selling, and risk taking functions that intermediaries provide.

C) A market refers to the people with both the desire and the ability to buy a specific product. Consumer markets may be the ultimate consumers or the end of the marketing channel.

D) A marketing intermediary is a middleman. Intermediaries can be part of a marketing channel or pipeline but the entire pipeline is called a channel.

E) A marketing channel consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.

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9.

Larry's parents decide to buy him a car as a graduation present, so Larry places an order through Jeep.com for a customized Jeep Wrangler. The information that he specifies is transferred electronically to DaimlerChrysler, the manufacturer of Jeeps. The order is then sent electronically from DaimlerChrysler to its suppliers so they can send the necessary parts exactly when needed to assemble Larry's Jeep Wrangler. Larry's Jeep is manufactured and sent to the local dealer for Larry to pick up. The entire process, from order to delivery, took only ten days. This process is an example of _____ made possible by _____.


A. warehousing and materials handling; continuous flow of goods 0%

B. order processing; cross-docking 0%

C. customization; back-order shipping 0%

D. transportation; vendor-managed inventory 0%

E. "just-in-time" inventory management; electronic data interchange 100% Student Response

General Feedback: Lecture page 94

A) Warehousing deals with keeping and maintaining a finished product. In this example, the finished Jeep is never in a warehouse. Once it is manufactured it is shipped directly to the dealer.

B) Sending the order electronically is an example of order processing but that is just part of the entire inventory process. Also, cross-docking is a materials handling process that has nothing to do with orders.

C) A backorder is created when an item is out of stock. Back-order shipping is a made up term that does not really make sense.

D) Vendor managed inventory is an inventory-management system whereby the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items. This is not the case in this question because Larry’s parents place an order to DaimlerChrysler for the customized Jeep they want.

E) Just-in-time inventory management is an inventory supply system that operates with very low inventories and requires fast, on-time delivery. The emergence of electronic data interchange (EDI) has facilitated order processing. DaimlerChrysler use EDI with Jeep.com to make order processing more efficient.

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10.

Within the context of a supply chain, _____ is the ability of a logistics system to satisfy users in terms of time, dependability, communications, and convenience.


A. distribution management 0%

B. customer service 100% Student Response

C. stockout creation 0%

D. lead time 0%

E. replenishment 0%


A) Distribution management is too vague of a term to fit in this answer.

B) In the context of a supply chain this is the definition of customer service.

C) Stockouts occur when firms run out of inventory. Firms would not want to create a stockout.

D) Lead time is the lag from ordering an item until it is received and ready for use or sale.

E) Replenishment refers to restocking inventory. When a stockout occurs inventory needs to be replenished.

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Documents

marketing channel

feedback intermediaries

types of channel conflict

source of channel conflict

different manufacturers

different items

channel of distribution

marketing intermediaries