Chapter 16
Test Bank
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 Pampered Chef 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)
22. Which element of the marketing mix specifically deals with supply chain management?
23. Students of marketing often overlook or underestimate the importance of place in the marketing mix simply because
24. In marketing’s four Ps, place refers to all activities required to get
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
26. Stores like Home Depot and Costco act as wholesalers when they
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 _______.
28. A(n) _______ is used in the shipment of products directly to customers.
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
30. A ___________ program is a promotional strategy that encourages people to pass along a marketing message to other potential consumers.
31. A ________ is a facility for the receipt, storage, and redistribution of goods to company stores.
32. A distribution center is typically operated by
33. Having no intermediaries between the buyer and seller is a defining characteristic of a(n) _______ marketing channel.
34. In a(n) _______ marketing channel, one or more intermediaries work with manufacturers to provide goods and services to customers.
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?
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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?
37. When a customer purchases a smartphone at Best Buy, all of the following information flows in the supply chain are started except
38. Steven managed an auto parts store in the 1990s. At that time, stockouts—failure to have the parts auto mechanics needed to do their work that
day—increased the likelihood of the mechanics becoming customers of competing auto supply stores. To avoid this problem and keep his business
customers, Steven most likely
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
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)
42. Today, when a customer orders merchandise from an online vendor, the vendor usually sends an immediate order confirmation message by e-mail.
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)
44. In vendor-managed inventory systems,
45. All of the following are advantages of using a distribution center except
46. All of the following are activities carried on in a distribution center except
47. Ted is glad his company finally converted to an RFID system. Now, he no longer needs to go through all the new goods to make sure what they
ordered was what they received. Ted is responsible for __________ in his company.
48. Radio frequency identification tags are
49. __________ is when vendors ship merchandise prepackaged in the quantity required for each store to the distribution center.
50. In a __________ distribution center, merchandise moves from vendors’ trucks to retailers’ delivery trucks in a matter of hours.
51. Walmart’s customers have come to expect to find P&G products in stores, and P&G depends on Walmart to purchase a good portion of its output to
sell to its own customers. This scenario represents the first phase of a
52. Colin has just received a delivery from the company’s distribution center. He opens the containers and finds the popcorn and snacks are all bar-coded
and priced and the package includes an end-of-the-aisle display rack. Colin has received a(n) __________ shipment.
53. Some retailers require their suppliers to ship merchandise ___________, thus eliminating the time and expense associated with ticketing and
marking.
54. Getting merchandise floor-ready entails
55. Which of the following is true regarding the ticketing and marking process?
56. Each time a politician or celebrity writes a book, bookstores can expect at least some customers to want the book, but whether or not it will become
a best-seller is less certain. The bookstore’s primary inventory management challenge is
57. H&M has adopted the inventory management system that delivers less merchandise on a more frequent basis than in traditional inventory systems.
The firm gets the merchandise just in time for it to be used in the manufacture of another product or for sale when the customer wants it. This is an
example of a ___________ inventory system.
58. Forever 21 has adopted an inventory system that reduces the amount of time between the recognition that an order needs to be placed and the arrival
of the needed merchandise at the seller’s store, available for sale. This increases product availability and lowers inventory investment. These benefits
are attributed to the _______ system.
59. At the BMW plant in Spartanburg, South Carolina, rather than use a typical order-to-delivery process, it has suppliers deliver parts every four hours
when the plant is in operation. BMW uses a ______ inventory control system.
60. Because manufacturers with JIT systems produce merchandise closer to the time of sale, they can
61. Especially in the fashion industry where styles and trends change rapidly, a quick response system can
62. A recent innovation by Amazon, the Vendor Flex program, seeks to lower overall transportation costs but also creates new forms of channel conflict
with competitors. As a partner in the Vendor Flex program, P&G agreed to allow Amazon to build fulfillment centers within P&G’s own warehouses,
thus helping to eliminate some of the costs of transporting P&G‘s products to Amazon’s fulfillment centers. Believing that the program was giving its
competitor Amazon an unfair advantage, Target reacted vigorously, moving all P&G products from prominent end-cap positions in its stores to less
prestigious and less visible locations. Target also stopped using P&G as its primary source of advice for planning merchandising strategies within each
category. This is an example of ____________ channel conflict.
63. The Stanley company wants Home Depot to carry all its tools but not the tools of its competitors so that Stanley can maximize its sales. But Home
Depot carries a mix of tool brands so it can maximize the sales in its tool category. This misalignment of goals will likely lead to a ________ channel
conflict.
64. Marketing channels and supply chains comprise various buying entities that form relationships with one another. The basic motivating factor in
these interactions is
65. Although conflict is likely to occur in any marketing channel, it is generally more pronounced when
66. Yesterday, Lorinda overheard a surprisingly unpleasant encounter between the manager of the hardware store where she works and a sales rep who
sells a well-known line of tools. The rep insisted that his tools should be more prominently displayed and that a better assortment would mean more
sales. The manager had other plans and told him so, and the conversation turned into a loud argument. What Lorinda observed was an example of
67. In a(n) __________ marketing channel, none of the participants have any control over the others.