Question 1

Explain the legal ramifications of attempts to control distribution functions.

Accepted Answer

The answer of Explain the legal ramifications of attempts to...

Question 2

Garcia Wholesale Plumbing has seen its sales in the Southeast triple in the past two years.Materials handling director Barb Peterson announces plans to the board for an Atlanta facility that will combine shipments received from Garcia's 25 suppliers for nearly immediate shipment to plumbing stores and contractors in the region.This new facility would be best classified as which of the following?

Accepted Answer

A) Sales office 
B) Public warehouse 
C) Field public warehouse 
D) Distribution center 
E) Bonded warehouse

Question 3

In the distribution channel for Domino's Pizza,channel members are linked by legal agreements that spell out the obligations and rights of each member.This is an example of a(n)____ vertical marketing system.

Accepted Answer

A) contractual 
B) administered 
C) corporate 
D) negotiated 
E) institutional

Question 4

Channel decisions are important to marketers mostly because

Accepted Answer

A) they are relatively flexible to change quickly. 
B) consumers value reasonable prices delivered through marketing channels. 
C) they dictate what promotional strategies companies should use. 
D) many businesses are marketing intermediaries. 
E) they involve long-term commitments and affect customer accessibility.

Question 5

Kolder Inc.is using a new just-in-time inventory management system that requires ordering smaller quantities of parts more frequently.The success of its business depends significantly on receiving these parts very quickly,so like many other companies using just-in-time,Kolder Inc.is relying more on the ____ mode of transportation despite its expense.

Accepted Answer

A) railroad 
B) pipeline 
C) airway 
D) truck 
E) waterway

Question 6

Del Monte markets ketchup for household use to supermarkets through grocery wholesalers.It markets ketchup for institutional use through industrial distributors and food brokers.Del Monte is using

Accepted Answer

A) dual distribution. 
B) industrial distribution. 
C) strategic channel alliance. 
D) supply chain management. 
E) an unethical marketing channel.

Question 7

A commonly used computerized means of integrating order processing with production,inventory,accounting,and transportation is

Accepted Answer

A) web-based inventory management. 
B) just-in-time. 
C) electronic data interchange. 
D) universal product codes. 
E) activity based management.

Question 8

To expand the number of its retail outlets in the Washington,D.C.area,Whole Foods bought out a small chain of organic food stores in northern Virginia.This type of integration is called

Accepted Answer

A) vertical. 
B) retail. 
C) horizontal. 
D) backward. 
E) forward.

Question 9

The supply chain includes

Accepted Answer

A) producers,wholesalers,and retailers. 
B) suppliers,producers,intermediaries,and customers. 
C) suppliers and suppliers' suppliers. 
D) all entities that facilitate product distribution. 
E) buyers,seller,marketing intermediaries,and agents.

Question 10

All of the following products are likely to use the producer-retailer-consumer marketing channel except for _____

Accepted Answer

A) Pharmaceutical drugs 
B) U-Pick farm produce 
C) Amazon Kindle Fire 
D) Designer wedding gowns 
E) Microbrew beers

Question 11

When Sophie buys organic produce for her household using a channel with only one intermediary,that intermediary is classified as a

Accepted Answer

A) retailer. 
B) wholesaler. 
C) broker. 
D) functional middleman. 
E) producer.

Question 12

Scenario 15.1
Use the following to answer the questions.
Liz Claiborne,Inc.markets several different brands,under their own Claiborne name label,as well as others.Their primary brands,such as Liz Claiborne,Liz & Co,and DKNY,are sold to wholesalers.These brands are then available through retail department stores such as Kohl's and Macy's.Their wholesale-based brands division is positioned as customer-focused and cost-efficient.Their premium brands division includes labels such as Kate Spade,Juicy Couture,and Mexx.These premium brands are sold through stores that the Claiborne company owns.
-Refer to Scenario 15.1.If Liz Claiborne were to distribute their Kate Spade brand through its company-owned stores and through wholesalers,to major department stores,then Liz Claiborne would be using ____ distribution.

Accepted Answer

A) intensive 
B) vertical 
C) horizontal 
D) dual 
E) exclusive

Question 13

Which mode of transportation hauls more freight than any other?

Accepted Answer

A) Railroads 
B) Waterways 
C) Pipelines 
D) Trucks 
E) Airways

Question 14

Why is the choice of warehouse facilities an important strategic consideration?

Accepted Answer

The answer of Why is the choice of warehouse facilities...

Question 15

IMA Wholesalers is a distributor of car repair parts and supplies,selling to both retailers and auto repair service businesses.Recently,IMA has been promoting the Pennzoil brand of oil over the Quaker State brand of oil by offering larger discounts to the channel members.If IMA continues to do this,____ is likely to result.

Accepted Answer

A) channel disintegration 
B) vertical channel integration 
C) horizontal channel integration 
D) channel conflict 
E) a tying arrangement

Question 16

A manufacturer has decided to improve its inventory management by maintaining low inventory levels and waiting to purchase materials until right before they are needed in production.This inventory management technique is called

Accepted Answer

A) just-in-time (JIT). 
B) time management. 
C) inventory minimization. 
D) economic order quantity. 
E) reorder point maximization.

Question 17

If a microchip in a computer at the Pentagon failed,which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from New York City?

Accepted Answer

A) Government vehicle 
B) Airway 
C) Waterway 
D) Truck 
E) Railroad

Question 18

Netflix sells its movie services using its website while Red Box sells its movie services using vending machines.From a customer's point of view,Netflix is using ____ and Red Box is using ___.

Accepted Answer

A) a direct marketing channel;a slightly shorter channel. 
B) a direct-marketing channel;an agent. 
C) an Internet wholesalers;a retailers. 
D) an Internet wholesaler;a slightly longer channel. 
E) a direct-marketing channel;a type of retailer.

Question 19

What is the reorder point if the usage rate is 10 units per day,the order lead time is five days,and the safety stock is 30?

Accepted Answer

A) 50 
B) 150 
C) 80 
D) 200 
E) 400

Question 20

Which of the following describes a disadvantage of using industrial distributors?

Accepted Answer

A) Industrial distributors possess considerable market information. 
B) Their marketing exchange relationships are very focused. 
C) They are unlikely to handle bulky items or items that are slow sellers. 
D) Industrial distributors sell specific brands aggressively. 
E) Industrial distributors acquire title to the products and take possession.

Exam 15: Marketing Channels and Supply-Chain Management