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M: Marketing, 6e (Grewal)
Chapter 15 Supply Chain and Channel Management
1) In the four Ps of marketing, place refers to all the activities required to get the right product to
the right customer when that customer wants it.
2) Marketing channel management adds value because it gets products to customers efficiently,
quickly, and at low cost.
3) A distribution center and a fulfillment center are one and the same.
4) Marketing channel management and supply chain management are virtually the same.
5) In a direct marketing channel, there are no intermediaries between the buyer and the seller.
6) Radio frequency identification (RFID) tags automatically transmit information about a
container's contents or individual products.
7) Quick response (QR) inventory systems allow retailers to maximize their inventory holdings.
8) Marketing channel relationships evolve when the parties have common goals.
9) Conflicts within a supply chain tend to be more pronounced when the members are part of a
corporate vertical marketing system.
10) Universal product codes (UPCs) are used to describe products for inventory taxation
purposes.
11) Retailers generally have no prior knowledge of the merchandise they will be receiving from
suppliers in any particular shipment.
12) When a firm is just starting out or entering a new market, it doesn't typically have the option
of designing the best marketing channel structure.
13) When manufacturers such as Avon sell directly to consumers, they perform both production
and retailing activities.
14) Distribution centers are always operated by distribution specialists.
15) Wholesalers are often used in an indirect marketing channel.
16) When two competing retailers have a disagreement, it is an example of a horizontal channel
conflict.
17) The vertical marketing system that exhibits the most formalization and control is the
corporate vertical marketing system.
18) When Walmart threatens to punish or punishes the other channel member for not undertaking
certain tasks, such as if it were to delay payment for a late delivery, this is an example of
expertise power.
19) The computer-to-computer exchange of business documents from a retailer to a vendor and
back is referred to as vendor-managed inventory (VMI).
20) One reason retailers are reluctant to use distribution centers is that retail store space is
typically much less expensive than space at a distribution center, so it is more cost-effective to
store merchandise and get it ready for sale at the retail store rather than at a distribution center.
21) Sophie made pies and sold them from her food truck to local businesses. This is an example
of a(n)
A) direct marketing channel.
B) distribution center.
C) simplified transaction.
D) wholesale operation.
E) indirect marketing channel.
22) Which element of the marketing mix specifically deals with supply chain management?
A) product
B) price
C) place
D) promotion
E) production
23) Students of marketing often overlook or underestimate the importance of place in the
marketing mix simply because
A) it happens behind the scenes.
B) it conflicts with promotion.
C) it occurs after making pricing decisions.
D) no one is directly in charge of place decisions.
E) the product itself is so much more important.
24) In marketing's four Ps, place refers to all activities required to get
A) the design of the terminal location for products accomplished.
B) the right product to the right customer when that customer wants it.
C) access to the physical space within a retail establishment.
D) consumers to the destination.
E) demand chain management functionally operable.
25) Dawn works for a firm that buys products directly from the manufacturer and resells them to
retailers, who then sell the products to consumers. Dawn works for a
A) retail distribution center.
B) retail jobber.
C) store representative.
D) wholesaler.
E) manufacturer's representative.
26) Stores like Home Depot and Costco act as wholesalers when they
A) take delivery in whole-lot quantities.
B) sell directly to consumers.
C) sell products for distributors.
D) sell to contractors or restaurant owners.
E) compete with each other.
27) When Costco sells to consumers directly, it acts as a ________; when it sells to other
businesses, such as a restaurant owner, it acts as a ________.
A) wholesaler; retailer
B) retailer; manufacturer
C) retailer; wholesaler
D) manufacturer; wholesaler
E) marketing channel; supply channel
28) A(n)________ is used in the shipment of products directly to customers.
A) fulfillment center
B) distribution center
C) administration center
D) data warehouse
E) vendor warehouse
29) Naomi knows she has to order her store's Christmas holiday merchandise in April to ensure
delivery before the holiday season. Naomi is concerned with the supply chain management goal
of
A) providing products at the right time.
B) providing products at the right locations.
C) providing the right quantities.
D) satisfying the service levels supply chain participants expect.
E) minimizing systemwide costs.
30) A ________ program is a promotional strategy that encourages people to pass along a
marketing message to other potential consumers.
A) supply chain
B) direct marketing
C) viral marketing
D) wholesale marketing
E) social media
31) A ________ is a facility for the receipt, storage, and redistribution of goods to company
stores.
A) circulation center
B) distribution center
C) supply chain hub
D) collaborative replenishment office
E) floor-ready franchising center
32) A distribution center is typically operated by
A) the marketing department.
B) vertically integrated consumer networks.
C) retailers, manufacturers, or distribution specialists.
D) wholesalers.
E) electronic data interchange services.
33) Having no intermediaries between the buyer and seller is a defining characteristic of a(n)
________ marketing channel.
A) indirect
B) vertical
C) horizontal
D) simple
E) direct
34) In a(n) ________ marketing channel, one or more intermediaries work with manufacturers to
provide goods and services to customers.
A) indirect
B) vertical
C) horizontal
D) simple
E) direct
35) Trisha makes purses out of old blue jeans and sells them to customers at local craft fairs.
What type of marketing channel does this represent?
A) indirect
B) vertical
C) horizontal
D) direct
E) simple
36) A local furniture store buys furniture from various manufacturers and resells the furniture to
its customers. What type of marketing channel does this represent?
A) horizontal
B) vertical
C) indirect
D) direct
E) simple
37) When a customer purchases a smartphone at Best Buy, all of the following information flows
in the supply chain are started except
A) the sales associate scans the UPC recording the sale.
B) the sale is transmitted to Best Buy's distribution center to adjust inventory data.
C) the purchase is added to the customer's purchasing habit records.
D) Best Buy's buyer aggregates sales at all stores and uses the information to send a reorder to
the manufacturer.
E) the point-of-sale terminal records the sale and sends it to Best Buy's buyer.
38) Steven managed an auto parts store in the 1990s. How long would it have taken Steven to
fulfill an order from the warehouse to his customer?
A) 7 to 10 days
B) 6 weeks.
C) One week
D) 15 to 30 days
E) 3 to 4 days
39) In addition to merchandise and payments, information flows throughout a supply chain. All
of the following statements are a good characterization of the flow of information in a supply
chain except
A) a manufacturer will send and receive information from buyers, stores, and distribution
centers.
B) stores will send and receive information from manufacturers, buyers, distribution centers, and
customers.
C) distribution centers will send and receive information from stores and manufacturers.
D) customers will send and receive information from stores and manufacturers.
E) buyers will send and receive information from stores and manufacturers.
40) Typically, manufacturers and retailers exchange business documents through a(n)
________system, the computer-to-computer exchange of business documents from a retailer to a
vendor and back.
A) cross-docking exchange
B) electronic data interchange
C) vendor-managed inventory
D) vertical conflict reduction
E) radio frequency identification
41) Flora is frustrated with her company's supply chain management information system. She
wants to be able to receive sales data, initiate purchase orders, send and receive invoices, and
receive returned merchandise documentation. Flora needs a(n)
A) cross-docking exchange.
B) electronic data interchange system.
C) vendor-managed inventory system.
D) vertical conflict reduction system.
E) radio frequency identification system.
42) Today, when a customer orders merchandise from an online vendor, the vendor usually sends
an immediate order confirmation message by e-mail. Usually within a day or two, a second
message arrives stating that the order is in the mail. This second message is a type of
A) vertical contractual notice.
B) VMI requirement.
C) advanced shipping notice.
D) universal product code report.
E) RFID tag.
43) Roland has just received notification from a vendor that his clothing merchandise order has
been processed and dispatched. Roland has just received a(n)
A) horizontal contractual notice.
B) vendor-managed inventory alert.
C) advanced shipping notice.
D) universal product code report.
E) EDI tag.
44) In vendor-managed inventory systems,
A) corporations send information to retail customers, bypassing wholesalers and retailers.
B) companies send information to cooperatives.
C) customers send information to retailers.
D) sales reps send sales information to the retailer.
E) retailers send sales information to the manufacturer.
45) All of the following are advantages of using a distribution center except
A) more accurate sales forecasts are possible.
B) retailers need to keep less merchandise in the store as inventory if the stores get frequent
deliveries.
C) it is easier to avoid running out of stock or having too much stock.
D) use of a distribution center saves money since the storage space at a distribution center is
generally less expensive than that of a store.
E) customers know they are dealing with a more sophisticated and financially well-off operation
if the firm uses a distribution center.
46) All of the following are activities carried on in a distribution center except
A) coordinating inbound transportation.
B) receiving, checking, storing, and cross-docking merchandise.
C) distributing paychecks and paystubs for retail employees.
D) getting merchandise floor ready.
E) coordinating outbound transportation.
