Western New Mexico University BSAD 340 Chapter 14 1)A_______is a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer

Question

Western New Mexico University

BSAD 340

Chapter 14

1)A_______is a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer.

a. facilitating agency or place member

b. marketing mix intermediary

c. selective distribution channel

d. marketing channel or channel of distribution

e. transportation channel or channel of movement

2. Kayak.com is a company that allows customers to efficiently search databases to find the best airline and hotel deals all over the Web. Kayak does not make bookings but rather provides recommendations for the best travel plans. Travel providers pay Kayak a commission when customers click through to their sites. Kayak.com, travelers, the airlines, and the hotels are all part of a:

a. facilitating agency

b. marketing mix intermediary

c. selective promotion channel

d. marketing channel or channel of distribution

e. transportation channel or channel of movement

3. Jones Soda is positioned as the anti-Coke. In the early years, few mainstream retailers sold Jones Soda. Fans had to get their Jones fix in surf shops, tattoo parlors, and bookstores, adding to the brand’s mystique. Jones Soda used its to create a competitive advantage.

a. channel ascendancy b. distribution channel

c. channel conflict

d. channel focus

e. vertical integration

4. Marketing channels make distribution simpler by reducing the number of transactions required to get products from manufacturers to consumers. This is called:

a. forward integration b. contact efficiency

c. elimination of temporal discrepancies

d. sorting

e. reciprocity

5. The major characteristic that is used to differentiate among types of intermediaries is whether they:

a. install exchange barriers such as location, time, and quantity

b. create specialization of labor

c. create economies of scale

d. take title to the products they sell

e. raise profit margins for independent middlemen

6. W.W. Grainger, Inc. is one of the world’s largest businesstobusiness

distributors of equipment, component parts, and supplies in the United States and Canada. It has ownership title to over 220,000 products, which are stocked in one national and nine regional warehouses to guarantee product availability and quick service to the many manufacturers who are its customers. W.W. Grainger is an example of a(n):

a. agent or broker

b. merchant wholesaler

c. retailer

d. consumer market

e. hypermarket intermediary

7. are intermediaries who facilitate the sales of a product from producer to end user by representing retailers,

wholesalers, or manufacturers and providing little input as to the terms of the sale.

a. Marketing facilitators

b. Channel cooperatives c. Agents and brokers

d. Merchant wholesalers

e. Channel functionaries

8. considerations affecting the wholesaler choice include how often a product is purchased and how long a customer is willing to wait to receive the product.

a. Market

b. Transactional

c. Product

d. Buyer

e. Logistic

9. The three basic functions channel intermediaries perform are:

a. transactional, logistical, and facilitating

b. contacting, negotiating, and ownership

c. promoting, distributing, and bulk-breaking

d. assorting, accumulating, and allocating

e. financing, mediating, and storing

10. Transactional channel functions include all of the following activities EXCEPT:

a. explaining product benefits

b. making buyers aware of existing products

c. explaining product features, advantages, and benefits

d. contacting and communicating with prospective buyers e. physically distributing and sorting products

11. Which of the following are examples of facilitating functions performed by wholesaling intermediaries?

a. Sorting and storing

b. Risk taking and promotion

c. Assorting, accumulating, grading, and allocating d. Researching and financing

e. Financial management and storing

12. Serenity is a manufacturer of outdoor fountains that are popular in gardens. Even though fountains represent a product category that does not sell year round due to inclement weather, Serenity’s sales remain steady all year because it sells to wholesale distributors that stock the product. Serenity sells to wholesale distributors that perform functions for the manufacturer.

a. financial

b. transactional

c. facilitating d. logistical

e. promotional

13. The only way that Jim Keeler in New Mexico can get a box of Carolyn Popwell’s Festive Holiday Truffles from Washington is to order it through the mail. Popwell, who makes the candy by hand, uses a(n) exclusively.

a. exclusive distribution system

b. conventional channel

c. vertical marketing system

d. reciprocal channel e. direct channel

14. Vutek manufactures printing machines used to print high-resolution graphics for billboards, bus cards, banners, and posters. For distribution, you would expect Vutek to use a:

a. network of facilitating agents

b. horizontally integrated channel

c. reciprocal channel

d. direct channel

e. vertical marketing system

15. A channel is commonly used for low-cost consumer items that are frequently purchased, such as candy, cigarettes, and magazines.

a. retailer

b. agent/broker

c. industrial distributor

d. producer e. wholesaler

16. Nontraditional channel arrangements:

a. tend to make a firm’s product seem the same as the competition.

b. usually broaden a brand’s coverage.

c. can give a producer serving a niche market a way to gain market access without having to establish channel intermediaries.

d. are not usually useful for larger firms.

e. All of the above are true.

17. Customers can purchase Hewlett-Packard computers from retail stores like Best Buy and Office Depot, online directly from HP, and through various catalogs. HP is using a(n) distribution arrangement.

a. intensive b. multiple

c. exclusive

d. cumulative

e. aggregated

18. Selfridges is the second-largest department store in Great Britain. It works with House of Frasier, one of its competitors, to reduce operating costs by sharing channels of distribution to ship goods from 1,500-plus suppliers. Selfridges and House of Frasier are engaged in:

a. vertical conflict

b. an integrated supply chain c. a strategic channel alliance

d. an information-based distribution channel

e. a distribution cooperative

19. Which of the following statements concerning how market factors affect channel decisions is true?

a. Industrial customers tend to buy in larger quantities and require more customer service.

b. Geographically concentrated target markets should be served with an indirect sales force.

c. Widely dispersed markets require fewer intermediaries.

d. New firms in extremely competitive markets will be more successful if they use indirect channels.

e. A very large market requires fewer intermediaries.

20. Canesta Company has developed a virtual keyboard out of light to be used with cell phones and PDAs. The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user’s digital device. When introduced to the market, the device will sell for less than $50. If, in choosing its channel, Canesta is most concerned about its lack of

financial, managerial, and marketing resources to support the product’s introduction, then its choice of channels will largely be influenced by:

a. factors of ownership.

b. market factors. c. producer factors.

d. product factors.

e. internal environmental characteristics.

21. Chewing gum and soft drinks are sold in grocery stores, service stations, convenience stores, drugstores, discount stores, and motel vending machines. This is a an example of a(n) distribution strategy.

a. exclusive

b. reciprocal

c. selective

d. horizontal e. intensive

22. distribution is achieved by screening dealers to eliminate all but a few in any single geographic area. Shopping goods and some specialty products that consumers are willing to search for are sold this way.

a. Intensive b. Selective

c. Exclusive

d. Dual

e. Controlled

23. Canesta Company has developed a virtual keyboard out of light to be used with cell phones and PDAs. The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user’s digital device. When introduced to the market, the device will sell for less than $50. What level of distribution intensity should the company use?

a. Exclusive

b. Controlled

c. Extensive

d. Reciprocal e. Selective

24. Which level of distribution intensity is the most restrictive and entails establishing only one or a few dealers within a given geographic area?

a. Selective

b. Intensive c. Exclusive

d. Dual

e. Premium

25. Caterpillar, the manufacturer of tractors and other earthmoving equipment, has an extremely high market share, which means customers seek the dealers out regardless of where they are. There are approximately 50 Caterpillar dealers in the United States––one in each state. From this information, you can surmise that Caterpillar uses distribution.

a. selective

b. premium

c. intensive d. exclusive

e. inclusive

26. This summer, college student Pat is planning on selling kites at Panama City Beach. He has found some suppliers and has preordered all of the kites he thinks he can sell this summer. What type of a distribution channel relationship does Pat have with his suppliers?

a. Arm’slength

b. Functional

c. Cooperative

d. Hierarchical

e. Integrated

27. With the channel relationship, both parties retain their independence and pursue their own interests while attempting to benefit from the goods or services provided by the other.

a. arm’slength

b. functional

c. cooperative

d. co-opetitive

e. integrated

28. One of the earliest, largest, and most famous examples of vertical integration was the Carnegie Steel Company. The company controlled not only the mills where the steel was manufactured but also the mines where the iron ore was extracted, the coal mines that supplied the coal, the ships that transported the iron ore, and the railroads that transported the coal to the factory. Carnegie Steel had a(n) channel relationship.

a. arm’slength

b. functional

c. cooperative

d. co-opetitive e. integrated

29. Which channel relationship is less ambiguous than an arm’slength relationship but without the longerterm and/or capital investment required to achieve full integration?

a. Co-opetitive b. Cooperative

c. Functional

d. Integrated

e. Supplemental

30. The capacity of a particular marketing channel member to control or influence the behavior of other channel members is known as:

a. channel power.

b. channel conflict.

c. channel control.

d. channel dominance.

e. channel inversion.

31. A situation that occurs when one marketing channel member intentionally affects another member’s behavior is called:

a. channel power. b. channel control.

c. channel conflict.

d. channel dominance.

e. channel inversion.

32. DeBeers sells most of the diamonds it produces to industry. The company controls over 90 percent of the market

and has great power over its distributors. In its marketing channel, DeBeers would be considered a:

a. channel authority.

b. channel member. c. channel captain.

d. channel gatekeeper.

e. power broker.

33. Channel conflict:

a. always has an adverse effect on the members of the channel

b. is not caused by ideological differences, because such differences would prevent the members from ever operating as a channel

c. is often caused by an inability of some channel members to keep up with the changing times

d. can appear as either internal or external

e. does not occur when multiple distribution channels are used

34. Honda uses just-in-time manufacturing to build its Odyssey minivans. Five companies that make component parts for the Honda Odyssey relocated to Alabama and states bordering Alabama when Honda announced plans to build a new Odyssey manufacturing plant in Alabama. This relocation in order to provide efficient delivery of goods indicates that Honda is a:

a. channel captain

b. horizontal integrator

c. distribution champion

d. distribution ombudsman

e. demand maverick

35. Horizontal channel conflict occurs most often when manufacturers practice: a. dual or multiple distribution

b. trade loading

c. promotional pricing

d. direct distribution

e. channel distribution

36. Channel conflict that occurs between different levels in a marketing channel is referred to as:

a. horizontal conflict

b. primary conflict

c. vertical conflict

d. secondary conflict

e. parallel conflict

37. is the joint effort of all channel members to create a channel that serves customers and creates a competitive advantage.

a. Selective partnering

b. Direct distribution c. Channel partnering

d. Intensive integration

e. Closed channel distribution

38. You are responsible for physical distribution of your company’s service and should focus on:

a. ensuring the intangibility of the service so that physical distribution becomes a less important factor.

b. minimizing wait times, managing service capacity, improving service delivery, and establishing channel-wide network coherence.

c. making sure production and consumption are simultaneous.

d. setting quality standards, choosing faster transportation modes, and using safety stock.

e. customer-oriented order processing and inventory control.

39. Paul operates Kayak.com, a company that allows customers to efficiently search company databases and find the best airline and hotel deals all over the Web. Kayak does not make bookings but rather provides recommendations for the best travel plans. Travel providers pay Kayak a commission for most customers who click through to their sites. Paul wants his users to have as short and sweet an experience on Kayak as possible. Time is of the essence in responding to any customer question, especially in this day where airfare can increase dramatically in just a couple of hours. Paul is devoted to:

a. improving service delivery.

b. maximizing queues.

c. reducing discrepancies of assortment.

d. reducing wait time.

e. managing service capacity.

40. is defined as all activities directly related to the sale of goods and services to the ultimate consumer for

personal, nonbusiness use or consumption.

a. Wholesaling b. Retailing

c. Business

d. Franchising

e. Distribution

41. A Target store is an example of a(n):

a. merchant wholesaler

b. retailer

c. broker

d. agent

e. exporter

42. Which of the following intermediaries sell mainly to consumers? a. Retailers

b. Merchant wholesalers

c. Agents

d. Brokers

e. Specialists

43. Retail establishments are generally classified according to all of the following EXCEPT:

a. ownership b. level of sales

c. level of service

d. price

e. product assortment

44. Around the world, most retailers are , operating one or a few stores in their community, owned by a single

person or partnership and not operated as part of a larger retail institution. a. independent

b. chain stores

c. franchise outlets

d. specialty clubs

e. product assortment stores

45. Jim’s Bike Shop sells bicycles for the serious racer to the casual cyclist. Jim’s also sells biking gear and clothing.

Jim is the sole owner of the store, so in terms of ownership, his store would be classified as a(n): a. independent retailer.

b. freestanding store.

c. franchise.

d. chain store.

e. common retailer.

46. Which type of retail ownership is owned and operated by an individual but is licensed by a larger supporting

organization?

a. Independent retailer

b. Chain store c. Franchise

d. Cooperative

e. Secondary retailer

47. The number of different varieties of fishing lures carried by the Angler’s Store refers to the store’s:

a. supply standard.

b. complete retail offering.

c. retail mix.

d. volume.

e. assortment depth.

48. shows how much the retailer makes as a percentage of sales after the cost of goods sold is subtracted.

a. Net income

b. Retained earnings

c. Profitability

d. Net equity e. Gross margin

49. Housing several departments under one roof, a carries a wide variety of shopping and specialty goods,

including apparel, cosmetics, housewares, electronics, and sometimes furniture.

a. supermarket

b. specialty store

c. convenience store

d. super club

e. department store

50. Each department in a department store is usually treated as a different center and central management sets

broad policies about the types of merchandise carried and prices.

a. franchise

b. financial

c. comptroller

d. human resources e. buying

51. Which type of retail store specializes in a given type of merchandise?

a. An independent store

b. A department store

c. A discount store d. A specialty store

e. A first-level store

52. James wants to open a small store that caters to the model railroad hobbyist. The store would sell model trains,

scenery, accessories, and books on the subject of model railroading. Which of the following types of stores would

most likely support an effective launch of his business idea?

a. An off-price retailer b. A specialty store

c. A full-discount store

d. A general store

e. A warehouse club

53. Which of the following statements about specialty stores is true?

a. Specialty stores find it easy to compete on price with big-box stores.

b. Customers at specialty stores are not concerned with the distinctiveness of the merchandise or the store’s

physical appearance.

c. Customers of specialty stores usually consider price to be secondary.

d. Specialty stores are ineffective test markets.

e. A typical specialty store carries a wider assortment of specialty merchandise than department stores.

54. Fairway is a chain of retail outlets in Iowa, Minnesota, Nebraska, and Illinois that are described as large, departmentalized, self-service stores that specialize in food and limited nonfood items. Fairway stores are:

a. off-price retailers

b. discount stores

c. wholesale clubs

d. convenience stores e. supermarkets

55. Kroger is the second-largest supermarket chain in the United States. Which of the following is the most likely reason why Kroger supermarkets sell all types of foodstuffs as well as nonfood products including a wide range of eyewear and accessories?

a. Consumer demand for one-stop shopping often leads to scrambled merchandising.

b. The fulfillment of the wheel of retailing hypothesis

c. Inflationary economic climate

d. Repositioning as a discounter

e. Growth of convenience merchandising

56. carry a limited line of high-turnover, high-priced goods and resemble miniature supermarkets. These selfservice

stores are typically located near residential areas and are open long hours, seven days a week.

a. Specialty stores

b. Wholesale stores c. Convenience stores

d. Factory outlets

e. General stores

57. Prices are usually higher in convenience stores than in supermarkets because convenience stores offer:

a. more specialty goods

b. a wider variety of products

c. a higher level of customer services

d. better location, longer hours, and faster service

e. higher-quality goods

58. are retailers that compete on the basis of low prices, high turnover, and high volume.

a. Convenience outlets b. Discount stores

c. General stores

d. Department stores

e. Specialty stores

59. is the retailing strategy of offering consumers very limited service and carrying a broad assortment of wellknown,

nationally branded “hard goods.”

a. Specialty store positioning

b. Merchandise positioning

c. M-store retailing

d. The wheel of retailing e. Full-line discounting

60. A retail operation that has a 90,000-square-foot facility and houses a florist, baker, bank, craft shop, photo finisher,

dry cleaner, and pharmacy under the same roof as grocery and household items would be called a:

a. membership warehouse club.

b. wholesale outlet.

c. factory outlet. d. supercenter.

e. mass merchandiser.

61. Toys “R” Us sells a huge assortment of toys and children’s books at greatly reduced prices. It offers customers few services and competes on the basis of moderate to low prices on the large quantities of merchandise it stocks. Toys “R” Us is an example of a:

a. full-line discount store. b. specialty discount store.

c. general store.

d. department store.

e. wholesale store.

62. sell a limited selection of brand name appliances, household items, and groceries, usually in bulk on a cashand-

carry basis to members only.

a. Super outlets

b. Factory outlets

c. Wholesale discounters

d. Off-price discount retailers e. Warehouse membership clubs

63. Off-price retailers:

a. usually don’t ask for return privileges

b. very often offer a consistent assortment of merchandise.

c. seldom stock brand name merchandise.

d. are owned by the manufacturer of the products they sell.

e. offer very deep assortments.

64. A is an off-price retailer that is owned and operated by a manufacturer and carries one line of

merchandise––its own.

a. mass merchandiser b. factory outlet

c. wholesale club

d. discount store

e. bargain basement store

65. refers to shopping without visiting a store and is currently growing faster than in-store shopping because of

the consumer demand for convenience. a. Non-store retailing

b. Customerization

c. Hypershopping

d. Niche marketing

e. Specialty merchandising

66. is the most pervasive retail business in the United States. Consumers get products out of automated machines, and it accounts for billions of dollars worth of goods each year in the United States.

a. Automatic vending

b. Party-plan selling

c. Direct marketing

d. A pyramid scheme

e. Professional selling

67. Southwestern Company recruits and trains college students to sell educational reference books, software, and

children's books door-to-door. This form of non-store retailing is called: a. direct retailing

b. personal marketing

c. direct marketing

d. automatic vending

e. electronic retailing

68. refers to the techniques used to get consumers to buy from their home. Those techniques include direct

mail, catalogs and mail-order, telemarketing, and electronic retailing.

a. Nonstore vending

b. In-home retailing

c. Franchising

d. Direct marketing

e. Direct retailing

69. Marketers can precisely target their customers according to demographics, geographics, and psychographics with:

a. direct mail.

b. vending machines.

c. franchise stores.

d. specialty retail outlets.

e. electronic selling.

70. Telemarketing can consist of either unsolicited sales calls, or sales calls, which allow companies to

receive orders through toll-free telephone numbers.

a. order placement; lead generation

b. push strategy; pull strategy

c. systematic; synergistic

d. qualifying; finalizing e. outbound; inbound

71. is a type of shopping available to consumers with access to the Internet.

a. Shop-at-home networks b. Online retailing

c. Franchising

d. Electronic wholesaling

e. Mobile vending

72. The Cedar Store carries a full line of cedar swings, gliders, garden benches, and tables. All of its products can be purchased through its Web site. The site has done well since the Cedar Store’s products do not need to be touched or smelled before purchase. The Cedar Store is engaging in:

a. online retailing.

b. shop-at-home networking.

c. mobile vending.

d. franchising.

e. electronic wholesaling.

73. A(n) is a continuing relationship in which an individual or business grants business rights to operate or sell a

product to another individual or business.

a. leasing contract

b. alliance for profit

c. brokered partnership d. franchise

e. countertrade

74. The party in a franchise relationship that is an individual or business granted the right to sell another party’s product

is called the:

a. franchisor b. franchisee

c. receiver

d. renter

e. owner/operator

75. Chattanooga Bottling Company is licensed to bottle Coke products. The Chattanooga Bottling Company is an

example of a:

a. product and trade name franchisee.

b. redistributor franchisor.

c. business format franchisee.

d. licensed franchisor.

e. relationship franchisee.

76. Domino’s pizza, Hyatt Corporation, and Wendy’s are all examples of because the franchisee buys the right to use the franchisor’s approach to doing business.

a. product and trade name franchisors

b. redistributor franchisors

c. business format franchisors

d. licensed franchisors

e. relationship franchisors

77. The first task of developing a retail strategy is to:

a. create a buying organization.

b. decide what to buy.

c. define the target market.

d. create a promotional strategy.

e. define the pricing policies.

78. Retailers such as Dillard’s and Sears are responding to consumer needs by changing product mixes, hours of operation, locations, and prices. These stores are changing aspects of their:

a. merchandising groupings. b. retailing mixes.

c. product offerings.

d. retail trade areas.

e. store positioning strategies.

79. Which of the following statements about a retailer’s promotion strategy is true?

a. The design of the promotion strategy would be done separately from the creation of the retailing mix.

b. The goal of a retail store’s promotion mix is to position the store in consumers’ minds.

c. Most advertising for retailers is carried out at the national level.

d. Retailers find direct mail marketing inefficient.

e. Retail promotion strategy does not include public relations activities.

80. When opening a new retail operation, the retailer needs to consider all of the following factors EXCEPT:

a. traffic flow.

b. employee density.

c. geographic region.

d. growth potential.

e. zoning regulations.

81. Large retailers such as Target and Walmart and sellers of shopping goods such as automobiles and furniture often

use for their locations.

a. remote, rural locations

b. office complexes

c. factory outlets

d. freestanding stores

e. regional malls

82. Maggie Moo’s has decided that consumers will drive out of their way for the store’s yummy ice cream offerings. The owner needs to keep his overhead costs (such as rent) low and wants to avoid locating near competitors. For a location, Maggie Moo’s should open in a:

a. factory outlet.

b. strip center.

c. freestanding store.

d. shopping center.

e. regional mall.

83. Another name for an anchor store is a:

a. mass merchandiser. b. generator store.

c. host store.

d. shopping center pillar.

e. destination store.

84. The newest generation of shopping centers is the:

a. regional mall.

b. shopping business district. c. lifestyle center.

d. franchised center.

e. strip mall.

85. The Halloween Super Store is only open from September until November, usually in an otherwise vacant store. This is an example of a:

a. temp store.

b. m-commerce.

c. convenience retailing. d. pop-up shop.

e. flash sale site.

86. All of the following are factors in creating a store’s atmosphere EXCEPT:

a. employee type and density.

b. fixture type and density.

c. sound. d. price.

e. odors.

87. The of retail stores is a key factor in their success; the goal is to use all space in the store effectively, including aisles, displays, and even nonselling areas.

a. merchandise density b. layout

c. target strategy

d. merchandise mix

e. promotional strategy

88. A common practice among most retailers that seeks to broaden customers’ original purchases with related items is called:

a. suggestion selling.

b. trading up.

c. bait and switch.

d. comprehensive selling.

e. interactive selling.

89. When Irvin went into Lowe’s to buy his wife a small tool set she said she wanted, the sales clerk suggested a larger set with a tool kit on wheels that included a router and circular saw. In this example, the sales clerk engaged in:

a. trading up.

b. suggestion selling.

c. bait and switch.

d. customer relationship retailing.

e. service-disguised selling.

90. Whenever a customer opens an account at First Southern National Bank, a teller or account representative asks the customer whether he or she needs a CD, online banking, or other services. In other words, the account representative engages in:

a. interactive selling.

b. bait and switch.

c. trading up.

d. customer relationship retailing. e. suggestion selling.

91. One of the new developments in retailing is mcommerce. The “m” in mcommerce stands for:

a. motivated

b. multimedia

c. marketing

d. managed e. mobile

92. uses complex mathematical models to help retailers make better product mix decisions.

a. Inbound telemarketing b. Data mining

c. Blogs