79) ________ implies that many of the promotional activities take place from the manufacturer
downward through the channel of distribution.
A) A selective distribution
B) An exclusive distribution
C) A push strategy
D) A pull strategy
E) An intensive distribution
80) An example of a push strategy is ________.
A) organizing couponing campaigns
B) utilizing newspaper advertising
C) using television advertising
D) employing direct marketing
E) paying a shelf fee
81) A manufacturer employing a(n) ________ strategy focuses much of its promotional
investment on the end-user consumer.
A) selective distribution
B) exclusive distribution
C) push
D) pull
E) limited distribution
82) A manufacturer employing a pull strategy would engage in ________.
A) offering discounts to wholesalers
B) Investing in intermediaries
C) paying slotting allowances
D) offering shelf fee to intermediaries
E) advertising in mass media
83) ________ logistics is the process that starts with production and ends with the delivery of a
final product.
A) Outbound
B) Inbound
C) Reverse
D) Third-party
E) Bulk
84) ________ refers to sourcing materials and knowledge inputs from external suppliers to the
point at which production begins.
A) Outbound logistics
B) Inbound logistics
C) Reverse logistics
D) Third-party logistics
E) Breaking bulk
85) Venus Office Supplies offers customers a $0.50 coupon for turning in their empty printer
cartridges. Venus collects the cartridges and then returns them to the producer for recycling. This
is an example of ________.
A) outbound logistics
B) inbound logistics
C) reverse logistics
D) order processing
E) reducing transactions
86) Logistics and other processes are managed using sophisticated and integrated ________.
A) partner relationships management strategies
B) total quality management strategies
C) enterprise resource planning systems
D) vertical marketing systems
E) integrated contractual systems
87) When an item is not in stock, it is called ________. In this case, inbound replenishment
processes are triggered.
A) a slotting allowance
B) an empty shelf
C) disintermediation
D) a stock-out
E) a supply chain disruption
88) A part of ERP, ________, guides overall management of the inbound materials from
suppliers to facilitate minimal production delays.
A) materials requirement planning
B) distributed marketing
C) vertical marketing
D) virtual network
E) just-in-time inventory control
89) To ensure that inventories of both raw materials and finished goods are sufficient to meet
customer demand without undue delay, firms utilize sophisticated ________.
A) just-in-time (JIT) inventory control systems
B) materials requirement planning (MRP) systems
C) exclusive dealings
D) exclusive territorities
E) multiverse inventories
90) When a supplier creates a restrictive agreement that prohibits intermediaries that handle its
product from selling competing firms’ products, ________ has occurred.
A) just-in-time (JIT) inventory control
B) materials requirement planning (MRP)
C) exclusive dealing
D) exclusive territory
E) tying contract
91) NextGen Electronix Inc. is a wholesaler of electronic goods in the city of Erbia. The
company sells goods manufactured by CellDer Inc. The wholesaler enjoys monopoly because it
is the only intermediary selling those products in the city. This is an example of a(n) ________.
A) just-in-time (JIT) inventory control
B) materials requirement planning (MRP)
C) exclusive dealing
D) exclusive territory
E) tying contract
92) If a seller requires an intermediary to purchase a supplementary product to qualify to
purchase the primary product the intermediary wishes to buy, it results in ________.
A) channel disintermediation
B) vertical integration
C) exclusive dealing
D) exclusive territory
E) a tying contract
93) A stationary store offers a 5 percent discount on pens and pencils to students if they agree to
purchase all the books needed for the academic year from the store. This is an example of a(n)
________.
A) tying contract
B) exclusive territory
C) exclusive dealing
D) intermediary contract
E) pull strategy
94) ________ is the point of contact in the supply chain with the consumer of the product.
A) Retailing
B) Wholesaling
C) Stocking
D) Promotion
E) Feedback
95) ________ is any business activity that creates value in the delivery of goods and services to
consumers for their personal, nonbusiness consumption.
A) Distribution
B) Retailing
C) Stocking
D) Merchandising
E) Wholesaling
96) ________ is the fastest-growing retail format.
A) Electronic retailing
B) Wholesaling
C) Customer Communities
D) Promotion
E) Franchising
97) Websites where customers come to engage with other customers, the sponsoring firm, and
others in the ecosystem to share ideas and collaborate on topics of mutual interest are called
________.
A) e-commerce sites
B) product communities
C) omnichannel retailing sites
D) customer communities
E) tying contracts
98) Explain the important aspects of a value network.
99) Explain the difference between merchant and agent intermediaries.
100) Channel intermediaries enhance utilities by providing a wide array of specific functions.
Their contributions can be classified into physical distribution functions, transaction and
communication functions, and facilitating functions. Give an example of an activity under each
of these functions and explain its importance in the value chain.
101) Define disintermediation, and explain why it’s common in the electronic channel.
102) A vertical marketing system (VMS) consists of vertically aligned networks behaving and
performing as a unified system. Explain the three different ways they can be set up.
103) Define channel power and explain how it can lead to channel conflict. How does it affect
vertical marketing systems?
104) Explain the difference between a push and pull strategy.
105) Name the three different types of logistics and explain why they are important for
businesses.
106) Describe three of the legal issues in supply chain management.
107) Describe two advantages of e-tailing and two disadvantages.
Advantages
1. Extensive Selection: No other channel offers the breadth and depth of selection. From
information search to purchase, the Internet gives consumers greater access to more choices and
different product options.
2. Considerable Information Available for Product Research and Evaluation: The Internet
dramatically expands consumers’ knowledge, offering an almost unlimited number of websites
that research, evaluate, and recommend products and services. From retailers (Best Buy in
electronics) to independent testing organizations (CNet in technology), consumers can find
information on anything.
3. Build Product Communities: The Internet brings together groups of individuals with a shared
interest to create virtual communities. These communities share information, ideas, and product
information.
4. Individualized Customer Experience: The Internet allows a great deal of personalization for
both the consumer and the company. Consumers can get one-on-one interaction from a customer
service representative and create their own web content based on personal preferences. At the
same time, companies can tailor messages and web content by analyzing consumer web history.
The end result is a more customized, personal experience for the consumer.
Disadvantages
1. Easier for Customers to Walk Away: The customer is in total control of the web experience
and has the opportunity to walk away at any time. In sharp contrast to a personal-selling situation
or even a retail store, the customer can simply click to another site. This puts additional pressure
on the website to attract and then hold on to visitors.
2. Reduced Ability to Sell Features and Benefits: Websites incorporate sophisticated tools to
display and highlight critical features and benefits. However, unless the customer initiates
additional contact via web live chat, phone, or e-mail, it can prove challenging to engage the
customer to answer questions or deal with objections.
3. Security of Personal Data: Over the past several years, numerous highly publicized data
security breaches have occurred involving e-retailers (as well as retail stores). While companies
work hard to make their websites secure and keep personal data such as credit card numbers
private, many consumers still have concerns about the security of their data. These concerns lead
some consumers to limit their electronic purchases.