Q&A Hero

Q: IBM is one of the world's great business success stories because of its ability to reinvent itself to satisfy shifting customer needs in a(n) __________ global marketplace. a. stagnant b. dynamic c. inert d. lethargic e. apathetic

Q: Jay stops at the shopping mall to purchase a new pair of jeans from the Diesel store. He is the ultimate consumer in a pipeline from the producer through intermediaries, including the clothing store. This pipeline is actually a a. marketing tunnel. b. consumer market. c. marketing channel. d. transactional conduit. e. distribution matrix.

Q: Supply chain and logistics managers play a large part in the manufacture of automobiles. It is estimated that logistics costs account for __________ percent of the retail price of a typical new car. a. 25 to 30 b. 40 to 45 c. 50 to 60 d. 60 to 70 e. over 70

Q: A __________ can be compared to a pipeline through which water flowsmaking possible the flow of goods from a producer, through intermediaries, to a buyer. a. chain of command b. marketing hierarchy c. marketing agent d. marketing channel e. marketing middleman

Q: In the automobile industry, the supply chain manager is responsible for translating __________ into actual orders and arranging for delivery dates. a. marketing goals b. customer requirements c. marketing information d. production requirements e. company goals

Q: You probably own several pairs of shoes. Further, it is highly likely you purchased those shoes at retail stores located in a shopping mall and not directly from the manufacturer. In fact, most products are brought to you via a __________, which 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. a. marketing intermediary b. distribution hierarchy c. marketing chain of command d. distribution matrix e. marketing channel

Q: In the automobile industry, the __________ manager is responsible for translating customer requirements into actual orders and arranging for delivery dates. a. marketing b. information technology c. intermodal d. supply chain e. financial

Q: Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users are referred to as a a. marketing channel. b. distribution matrix. c. retailer. d. wholesaler. e. distributor.

Q: An important feature of customer-driven supply chain management is its application of __________ that allows companies to share and operate systems for order processing, transportation scheduling, and inventory and facility management. a. wholesaler cooperatives b. mathematical and statistical models c. sophisticated information technology d. continuous inventory management e. standardized distribution protocols

Q: Callaway markets its products through on- and off-course golf retailers and sporting goods retailers, and also has its own online store, which makes it a full-fledged a. cross channel marketer. b. multichannel marketer. c. industrial marketer. d. direct marketer. e. merchant marketer.

Q: Supply chain management refers to a. the integration and organization of information and logistic activities across firms in a supply chain for the purpose of creating and delivering goods and services that provide value to ultimate consumers. b. organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point-of-origin to point-of-consumption to satisfy customer requirements. c. the integration and organization of information and logistical activities that actively bring consumers together with sellers through the express use of agents and brokers. d. an inventory management system that is designed to reduce the retailer's lead time for receiving merchandise, which then lowers a retailer's inventory investment, improves customer service levels, and reduces logistic expenses. e. a highly organized system that facilitates minute-to-minute communication between all members of a supply chain and ensures the producer is aware of any changes in delivery or demand for a product or service.

Q: When Callaway opened its "online" store, it wanted to be very careful not to ruin the good relationship it had with its loyal trade partners. To make sure this did not happen, Callaway a. offered its retail partners greater trade allowances. b. offered its retail partners Callaway stock options. c. had one of its retail stores get the credit for an online sale. d. offered incentives for retailers if they encouraged their store customers to shop online. e. discounted merchandise in retail outlets but not online.

Q: Customers currently link to Cisco's website to configure, price, and order its networking equipment. Cisco then sends orders back out across the Internet to producers and assemblers including Celestica, Flextronics, Jabil, and Solectron. Products are built and tested to Cisco's standards, sometimes with procedures run remotely by Cisco. Most items are then drop-shipped to buyers, untouched by Cisco's employees. This is a description of Cisco's a. just-in-time inventory system. b. supply chain. c. electronic data interchange. d. strategic information alliance. e. product-specific delivery system.

Q: A __________ is essentially a sequence of linked suppliers and customers in which every customer is, in turn, a supplier to another customer until a finished product reaches the final consumer. a. logistical flow b. demand chain c. supplier-customer alliance d. supply chain e. distributive cooperative

Q: Which of the following statements best describes how a supply chain differs from a marketing channel? a. Communication is more important in the marketing channel than in the supply chain. b. The marketing channel places more emphasis on cost-effectiveness than the supply chain. c. A marketing channel includes suppliers that provide raw material inputs to a manufacturer. d. A supply network moves materials from producer to consumer while a marketing channel moves materials from the supplier to the producer. e. A supply chain includes suppliers; marketing channels do not.

Q: A supply chain refers to a. the sequence of firms that performs activities required to create and deliver a product or service to ultimate consumers or industrial users. b. an inventory management system where the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items. c. mathematical formulas and calculations used in determining product volume and demand in order to generate the greatest revenue at the lowest cost. d. activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost. e. a specialized intermediary in the distribution chain responsible for the coordination of all production schedules.

Q: The sequence of firms that performs activities required to create and deliver a product or service to ultimate consumers or industrial users is referred to as a. strategic distribution. b. distribution management. c. a supply chain. d. value chain optimization. e. logistics.

Q: A firm needs to drive down logistics costs as long as it can deliver expected __________. a. balance sheet results b. customer service c. low levels of expenses d. product-market synergies e. target market goals

Q: The word cost-effective as it relates to the definition of logistics management implies a. while it is important to drive down logistics costs, all channel members must equally benefit financially or the chain will not function effectively. b. speed of delivery must be measured against increased savings. c. while it is important to drive down logistics costs, customer buying requirements must be a part of the equation. d. the need for multiple carriers always results in lower profit margins and therefore should be avoided. e. the choice of intermediaries should be made on their ability to perform their tasks efficiently even if additional costs must be passed on to the consumer.

Q: The word flow as it relates to the definition of logistics management refers to decisions needed to move a. raw materials to the producer. b. semi-finished materials to a merchant wholesaler. c. finished products to the distributor. d. finished products directly from the producer to the retailer. e. a product from the source of raw materials to consumption.

Q: Logistics management refers to a. the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements. b. the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to ultimate consumers. c. the integration and organization of information and logistical activities that actively brings consumers together with sellers through the express use of agents and brokers. d. systems that are designed to reduce a retailer's lead time for receiving merchandise, which then lowers a retailer's inventory investment, improves customer service levels, and reduces logistics expense. e. proprietary computer and telecommunication technologies to exchange electronic invoices, payments, and information among suppliers, manufacturers, and retailers.

Q: The practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements is referred to as __________. a. marketing channel oversight b. logistics management c. production management d. manufacturer distribution logistics e. supply-chain management

Q: A few years ago, Benetton delivered new styles to its worldwide stores once a month. Today, it replenishes its racks once a week. Getting the fashions to its stores more quickly means that effectively using logistics has increased Benetton's market share by providing a. larger lots of available inventory for the retailer. b. time and place utility for its customers. c. increased steps in the value proposition. d. technological advances leading to greater customer information. e. increased customer traffic.

Q: Reductions in delivery times both in the marketplace and the supply chain have earned firms such as Toyota and Xerox a reputation as "time-based competitors." For Toyota and Xerox, logistics a. increases their customers' inventory. b. increases the number of steps in the manufacturing process. c. includes the role of Toyota and Xerox as a drop shipper. d. creates time and place utility for their customers. e. does not influence their suppliers' supply chain.

Q: Johnson Controls can receive an order for automobile seats from Ford and deliver the order four hours later, beginning with raw materials and ending with delivery of the finished seats to Ford. As used by Johnson Controls, logistics a. creates utilities for Ford. b. increases Ford's inventory. c. increases the number of steps in the value proposition. d. includes the role of Johnson controls as a drop shipper. e. does not influence Ford's supply chain.

Q: Logistics is most closely related to which element of the marketing mix? a. product b. place (distribution) c. production d. promotion e. price

Q: A marketing channel relies on __________ to make products available to consumers and industrial users. a. logistics b. strategic distribution c. strategic marketing planning d. supply chains e. value chain optimization

Q: Logistics refers to a. an inventory management system where the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items. b. mathematical formulas and calculations used in determining product volume and demand in order to generate the greatest revenue at the lowest cost. c. the sequence of firms that performs activities required to create and deliver a product or service to ultimate consumers or industrial users. d. activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost. e. a specialized intermediary in the distribution chain responsible for the coordination of all production schedules.

Q: Activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost is referred to as __________. a. sensitivity b. distribution c. logistics d. direct selling e. warehousing

Q: Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost are referred to as a. strategic distribution. b. distribution management. c. tactical marketing planning. d. value chain optimization. e. logistics.

Q: Resale restrictions refer to when a supplier a. requires a channel member to sell only its products. b. requires a channel member to finance all loans through the seller's bank. c. stipulates to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may sell. d. attempts to sell used or pre-owned products as new. e. attempts to sell used products that have expired or will soon become obsolete without informing the buyer.

Q: A supplier's attempt to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may sell is referred to as __________. a. full-line forcing b. exclusive dealing c. a refusal to deal d. a resale restriction e. a tying arrangement

Q: A(n) __________ is a supplier's attempt to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may sell. a. oligopolistic practice b. monopolistic practice c. refusal to deal d. tying arrangement e. resale restriction

Q: Under the Clayton Act, __________ with existing channel members may be illegal. a. refusal to cooperate b. refusal to deal c. sharing proprietary information d. horizontal integration e. disintermediation

Q: Questions of legality regarding tying arrangements and exclusive dealing would most likely occur in a. corporate vertical marketing systems. b. administered vertical marketing systems. c. franchises. d. horizontal marketing systems. e. retail-sponsored cooperatives.

Q: A fast-food franchisee is required by its franchisor to buy unmarked plastic eating utensils from the franchisor if the franchisee wants to use the cups, napkins, and other paper products with the franchise logo. The franchisee can buy the identical utensils from a local supplier for half the price. This requirement would be an example of a(n) a. dual distribution network. b. refusal to deal. c. exclusive dealing. d. tying arrangement. e. resale restriction.

Q: A tying arrangement refers to when a supplier a. requires a distributor purchasing some products to buy others from the supplier. b. requires channel members to sell only its products or restricts distributors from selling directly competitive products. c. stipulates to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may sell. d. requires a channel member to sell only its products. e. requires a channel member to finance all loans through the seller's bank.

Q: Some manufacturers have tried to use the brand loyalty of their consumers to force retailers to carry manufacturers' products and none from their competitors. These manufacturers were trying to force retailers to participate in a practice known as a(n) a. resale restriction. b. vertical integration. c. exclusive dealing. d. refusal to deal. e. tying arrangement.

Q: Vertical integration can lead to legal prosecution if a. there is potential to lessen competition or create a monopoly. b. mergers create too much competition. c. a corporate vertical system attempts to become a contractual vertical marketing system. d. an administered vertical system attempts to become a corporate vertical marketing system. e. one member of the channel attempts to take the position of channel captain away from another.

Q: Dual distribution can violate the Sherman Act and the Clayton Act if the a. prices charged for items sold through one channel are different from the prices charged for the same items in another channel. b. manufacturer's behavior is viewed as lessening competition by eliminating wholesalers or retailers. c. manufacturer has a corporate vertical marketing system with one channel and an administered vertical system with the other. d. manufacturer uses both a direct and indirect marketing channel. e. product is not available through more than one marketing channel.

Q: Dual distribution is considered illegal if a. both channels are corporately owned. b. one channel is a direct channel and the other is not. c. channels are operated from two different states. d. there is an attempt by a manufacturer to lessen competition by eliminating wholesalers or retailers. e. the prices charged consumers differ as a result of the channel in which they were making their purchases.

Q: The Clayton Act prohibits, restricts, or influences all of the following channel strategies and practices EXCEPT: a. exclusive dealing b. refusal to deal c. resale restrictions d. vertical integration e. full-line forcing

Q: The __________ has been used to prosecute resale restrictions, which are a supplier's attempt to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may be sold. a. Sherman Act b. Robinson-Patman Act c. Federal Trade Commission Act d. Clayton Act e. Consumer Goods Pricing Act

Q: The __________ specifically prohibits exclusive dealing and tying arrangements when they lessen competition or create monopolies. a. Sherman Act b. Robinson-Patman Act c. Federal Trade Commission Act d. Clayton Act e. Consumer Goods Pricing Act

Q: When developing a distribution strategy, marketers should avoid the anticompetitive attempts of eliminating wholesalers or retailers if they want to avoid the possibility of violating the __________ provisions of the Clayton Act or the Sherman Act. a. resale restrictions b. tying arrangements c. exclusive dealing d. refusal to deal e. dual distribution

Q: The Federal Trade Commission and the Justice Department monitor channel practices that __________, create monopolies, or otherwise represent unfair methods of competition under the Sherman Act (1890) and the Clayton Act (1914). a. suggest patent infringement b. restrain competition c. connect channel members d. use coercive or suggestive advertising e. manipulate public opinion

Q: The __________ and the Justice Department monitor channel practices that restrain competition, create monopolies, or otherwise represent unfair methods of competition under the provisions of the Clayton Act or the Sherman Act. a. Consumer Product Safety Commission b. Better Business Bureau c. Federal Trade Commission d. American Marketing Association e. Department of Commerce

Q: Sports Port, a motorcycle and fishing boat retailer located in a small northern Minnesota town, was the world's largest dealer for Crestliner fishing boats. In order to meet the demand of his many customers, the owner of Sports Port worked with a wide variety of channel members, ranging from the manufacturer of the boats to trucking firms, other retailers, and even detailers. Such a diverse channel of distribution often resulted in channel conflict. However, due to his strong consumer following, the owner of Sports Port had the power to resolve disputes between channel members. The owner of Sports Port served as the __________ in the channel of distribution. a. wholesaler b. producer c. channel spokesperson d. channel captain e. channel arbitrator

Q: Bombardier is the leading marketer of corporate jets. Its brand name is well known and respected in the corporate jet market. The aircraft company relies on outside suppliers for design support and to share development costs and market risks, but Bombardier is considered the leader in determining design and marketing of its planes. For its newest plane, Bombardier has about 30 prime suppliersabout 10 of those have been involved since the initial design phase. Bombardier is an example of a __________. a. product champion b. channel general c. channel director d. channel coordinator e. channel captain

Q: Neiman-Marcus is a retailer that many small manufacturers would like to be associated with. A product placement in Neiman-Marcus will increase the prestige of a smaller brand. The source of Neiman-Marcus's power is its a. economic influence. b. expertise. c. sought-after identification for a particular channel member. d. legitimate rights through contracts. e. longevity as an upscale retailer.

Q: American Hospital Supply helps its customers (hospitals) manage inventory and streamline order processing for hundreds of medical supplies. The source of American Hospital Supply's power is its a. economic influence. b. expertise. c. identification with a particular channel member. d. legitimate rights through contracts. e. governmental contracts.

Q: Walmart is a channel captain because of its strong image, number of outlets, and purchasing volume. The source of Walmart's power is its a. economic influence. b. expertise. c. identification with a particular channel member. d. legitimate rights through contracts. e. political connections.

Q: A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms, one of which is a. stakeholder position. b. familial ties to other channel members. c. longevity in the industry. d. identification with a particular channel member. e. geographic proximity to the manufacturing plant.

Q: A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms, one of which is a. stakeholder position. b. familial ties to other channel members. c. expertise. d. longevity in the industry. e. geographic proximity to the manufacturing plant.

Q: A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms, one of which is a. economic influence. b. stakeholder position. c. familial ties to other channel members. d. longevity in the industry. e. geographic proximity to the manufacturing plant.

Q: A channel captain refers to a. a member of a distribution channel that takes control through hegemony (power is not assigned, but assumed). b. a channel member (producer, wholesaler, or retailer) who coordinates, directs, and supports other channel members. c. a channel team member known for his or her expertise in cutting through red tape. d. a person responsible for implementing a firm's a mission statement linking all members of the marketing channel through a common goal. e. the person with greatest authority who represents his or her channel in the distribution chain.

Q: A channel member (producer, wholesaler, or retailer) who coordinates, directs, and supports other channel members is referred to as a __________. a. channel champion b. channel general c. channel captain d. channel director e. channel coordinator

Q: All the following sources produce channel conflict EXCEPT: a. when a manufacturer increases its distribution coverage in a geographical area. b. a channel member bypasses another member and sells or buys products directly. c. disagreements over how profit margins are distributed among channel members. d. manufacturers believe wholesalers or retailers are not giving their products adequate attention. e. a channel member that coordinates, directs, and supports other channel members.

Q: Goodyear Tire dealers became irate when Goodyear Tire Company decided to sell its brands through Sears, Walmart, and Sam's Clubs. Many switched to competing tire makers. This is an example of __________. a. corporate conflict b. vertical conflict c. horizontal conflict d. administered conflict e. contractual conflict

Q: Horizontal conflict refers to conflict that occurs between a. two different levels in a marketing channel. b. members of upper management who make the marketing channel decisions and lower management who must implement these decisions. c. two producers of the same product vying for the same distribution channel members. d. two members in the same level of a marketing channel. e. a firm's and its customers' goals.

Q: Conflict occurring between intermediaries at the same level in a marketing channel, such as between two or more retailers, is referred to as __________. a. horizontal conflict b. corporate conflict c. vertical conflict d. lateral conflict e. contractual conflict

Q: While Maytag appliances have the leading brand name, its sales are third in the industry. One of the things the company has done to spur sales is to create a website where potential customers can find the answers to the questions they ask during the appliance purchase process. Although Maytag considered using a __________ strategy, which directs customers to Maytag appliance stores it owns, the firm decided against it and simply provides the names and addresses of all the retailers (Sears, Home Depot, etc.) that carry Maytag appliances. a. horizontal channel strategy b. strategic channel alliance c. dual distribution d. cross-docking e. disintermediation

Q: Disintermediation refers to channel conflict that arises when a. a channel member severs relationships with other channel members to work for or with a competing manufacturer. b. channel conflicts are resolved by a third party. c. a channel member bypasses another member and sells or buys product directly. d. channel conflicts are resolved through a binding arbitration from a panel of representatives from all channel members involved. e. the entire distribution chain is eliminated, such as when a company sets up its own wholesaler and retailer network.

Q: Channel conflict that arises when one member bypasses another member and sells or buys product directly is referred to as __________. a. horizontal conflict b. channel circumvention c. lateral conflict d. disintermediation e. dual distribution

Q: Which of the following would be a source of vertical conflict? a. Foot Locker decides to open a retail outlet next to a Nike store in a shopping mall. b. A restaurant serves both Coke and Pepsi to its patrons. c. Ansible Technologies Ltd. sells its portable planetariums to both colleges and high schools. d. Microsoft provides HP laptops more prominent point-of-purchase locations in its retail stores than comparable laptops from Sony. e. Long John Silver's decides to serve grilled burgers in addition to seafood.

Q: Vertical conflict refers to conflict that occurs between a. two members in the same level of a marketing channel. b. two different levels in a marketing channel. c. members of upper management who make the marketing channel decisions and lower management who must implement these decisions. d. a firm's and its customers' goals. e. two producers of the same product vying for the same distribution channel members.

Q: Conflict that occurs between two different levels in a marketing channel is referred to as a. lateral conflict. b. horizontal conflict. c. vertical conflict. d. distributor conflict. e. contractual conflict.

Q: Which of the following types of vertical marketing systems is likely to experience the least channel conflict? a. corporate vertical marketing system b. wholesaler-sponsored voluntary chain c. retailer-sponsored cooperative d. franchise system e. administered vertical marketing system

Q: The two types of channel conflict are a. wholesaler and retailer. b. horizontal and vertical. c. transactional and promotional. d. external and internal. e. producer and consumer.

Q: Channel conflict refers to a. disagreements over the trade discounts allotted to each level of the distribution chain by the Federal Trade Commission. b. regulatory restrictions limiting the number of distributors that can sell a producer's products. c. when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals. d. when one distributor carries two competing brands. e. when the producer doesn"t allow other channel members to have input regarding product specifications or benefits.

Q: When one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals, it is referred to as __________. a. distributor dissension b. marketing channel discord c. partnership divergence d. channel conflict e. channel dissonance

Q: Channel Sales and Profit Marketing Dashboard Based on the information presented in the Channel Sales and Profit Marketing Dashboard above, which channel of distribution would the furniture manufacturer most likely consider dropping? a. department store chains b. furniture store chains c. independent furniture stores d. none of the above e. Not enough information is given in the dashboard to make this determination.

Q: Channel Sales and Profit Marketing Dashboard Which of the channels shown in the Channel Sales and Profit Marketing Dashboard above represents the least profit to the manufacturer? a. furniture store chains b. independent furniture stores c. department store chains d. mass merchandisers e. none of the above

Q: Channel Sales and Profit Marketing Dashboard Which of the channels shown in the Channel Sales and Profit Marketing Dashboard above represents the most sales for a particular furniture manufacturer? a. independent furniture stores b. furniture store chains c. department store chains d. mass merchandisers e. none of the above

Q: The third consideration in choosing a marketing channel is profitability, which is determined by the margins earned for each channel member and for the channel as a whole. Based on this information, which of the following statements would be most accurate? a. The more responsibilities a channel member takes in terms of distribution, advertising, and selling expenses, the greater the potential for manufacturer profitability. b. The more responsibilities the manufacturer assumes relative to its channel members, the greater the potential for profitability. c. The extent to which channel members share costs determines the margins received by each member and by the channel as a whole. d. While channel members can increase profitability by taking on distribution and selling expenses, advertising expenses should always remain with the manufacturer if a firm is looking for the greatest profitability. e. Profitability is not related to the length or nature of the distribution chain but determined by the manufacturer.

Q: Items such as large household appliances that require installation and delivery demonstrate the buyer requirements of __________. a. information b. convenience c. variety d. pre- or postsale services e. adaptability

Q: Buyers are interested in having numerous competing and complementary items from which to choose. The buyer requirement for __________ is satisfied through the breadth and depth of products and brands that intermediaries carry. a. information b. convenience c. variety d. pre- or postsale services e. adaptability

Q: Tylenol and Advil are two manufacturers of over-the-counter products for ailments such as colds, headaches, sore throats, arthritis aches, and general pain and fever. Both manufacturers seek distribution of their products through pharmacies such as Walgreens. These companies seek out channels and intermediaries that will satisfy a buyer's desire for a. variety. b. information. c. pre-or postsale service. d. convenience. e. adaptability.

Q: Driving time, proximity, hours of operation, and the usability of a website are all examples of which buyer requirement? a. information b. variety c. pre- or postsale services d. adaptability e. convenience

Q: Channels are typically designed to satisfy one or more of four consumer buying requirements. When a membership book club allows its members to use the Internet to notify the company whether they want to receive the next month's issue, the book club is appealing to which buyer requirement? a. information b. convenience c. variety d. pre- or postsale services e. adaptability