Deck 15: Distribution and Marketing Logistics

Question 1

Consumers who practice showrooming visit full-service retailers to view products and talk to sales personnel,but then they buy at lower prices from discounters or online stores.

Answer 1

True
Explanation: Full-service retailers face intense competition from discount and/or online retailers. For example, some consumers visit full-service retailers-viewing products and talking to sales personnel on site-then buy at discount stores or online, a practice known as showrooming.

Question 2

Having your products available in as many outlets as possible is known as exclusive distribution.

Answer 2

False
Explanation: Exclusive distribution is a market coverage strategy that gives intermediaries exclusive rights to sell a product in a specific geographic area.

Question 3

Online retailers can be either Internet-only operations or online extensions of store-based operations.

Answer 3

True
Explanation: Online retailers can be either Internet-only operations or online extensions of store-based operations.

Question 4

Full-service merchant wholesalers never actually own the products they handle,and they perform fewer services than agents and brokers.

Question 5

A slotting allowance is a payment to a retailer in exchange for carrying a producer's products for an agreed-upon length of time.

Question 6

Sam's Club sells sports apparel to individual consumers for their personal use and to small businesses that resell those goods to consumers.Therefore,Sam's Club functions as both a retailer and a wholesaler.

Question 7

Celebrations Depot is a store that is only open for several weeks during the summer,selling fireworks and decorations before the 4th of July.It is designed more as an attention-getting event than as an ongoing retail operation.Celebrations Depot would be an example of a convenience store.

Question 8

Unlike retailers,wholesalers primarily sell products to consumers for personal use.

Question 9

Drop shippers take legal title to and possession of goods from a producer and then resell those goods to retailers or organizational buyers.

Question 10

The shortest distribution channel is from the producer,to the retailer,to the consumer.

Question 11

Consumers (reached by retailers)and organizations (reached by wholesalers)respond to marketing programs the same way,because their motivations are similar.

Question 12

Retail intermediaries collect valuable data about customer purchases: who buys,how often,and how much.

Question 13

The primary function of distribution channels is delivering value to producers,so channel strategy decisions should start with producers' needs and expectations.

Question 14

Products vary widely in the amount of skilled support they may require before and after a sale.

Question 15

The growth of online retailing has lagged store-based retailing in recent years.

Question 16

A growing number of customers are pursuing strategic sourcing,in which they forge closer relationships with a smaller number of strategic distribution partners.

Question 17

Hybrid stores refer to stores that exist for only a short time and are designed more as attention-getting events than as ongoing retail operations.

Question 18

Like wholesalers,retailers face the threat of disintermediation if suppliers or customers don't think they add sufficient value or if other types of retailers can do the job better.

Question 19

Distribution strategy refers to a firm's overall plan for moving products through intermediaries and on to final customers.

Question 20

Merchant wholesalers that sell products to organizational customers for internal operations or the production of other goods,rather than to retailers for sale,are known as manufacturers' representatives.

Question 21

All activities required to move products from producer to consumer comprise the logistics function.

Question 22

Intermediaries that primarily sell goods and services to individuals for their own personal use are called ________.

A) drop shippers
B) agents
C) brokers
D) distributors
E) retailers

Question 23

The coordinated use of multiple modes of transportation is known as warehousing.

Question 24

Natural resources such as lumber,grain and coal are usually marketed through ________ who take ownership but not physical possession of the goods.

A) manufacturers' representatives
B) brokers
C) rack jobbers
D) drop shippers
E) agents

Question 25

Channel organization and control refers to attempts to coordinate the activities of a channel into a cohesive marketing system.

Question 26

Which of the following is a defining characteristic of distributors?

A) They do not take title to the goods they distribute.
B) They take ownership, but not physical possession, of the goods they handle.
C) They sell various noncompeting products to customers in a specific region.
D) They complete or customize solutions for customers.
E) They sell products to organizational customers for internal operations or the production of other goods.

Question 27

One of the valuable services that a wholesaler might perform is ________,in which it receives large shipments from the producer and then sells smaller quantities to retailers.

A) rack jobbing
B) drop shipping
C) bundling
D) breaking bulk
E) system integration

Question 28

Wholesalers differ from retailers in that wholesalers ________.

A) sell products to organizational customers
B) are marketing intermediaries
C) primarily sell products to consumers for personal use
D) cannot sell products to consumers for personal use
E) create place utility and time utility

Question 29

AMS Technologies,a computer hardware reseller,purchases computer components from leading manufacturers and builds fully operational personal-computer systems customized for specific consumer requirements,such as non-linear video editing capabilities.The firm sells its products to various companies and educational institutions.AMS Technologies belongs to which of the following class of intermediaries?

A) retail outlet
B) drop shippers
C) manufacturers' representatives
D) system integrators
E) specialty stores

Question 30

Retailers differ from wholesalers in that retailers ________.

A) sell products to small-business owners
B) sell products to wholesalers, government agencies, and educational institutions
C) primarily sell products to consumers for personal use
D) receive bulk shipments from producers
E) create possession utility

Question 31

________ refer(s)to intermediaries that sell products to other intermediaries for resale or to organizations for internal use.

A) Retailers
B) Wholesalers
C) Department store
D) Specialty store
E) Convenience store

Question 32

Independently-owned businesses that buy from producers,take legal title to the goods,and then resell them to retailers or to organizational buyers,are called ________.

A) agents
B) brokers
C) merchant wholesalers
D) department stores
E) manufacturers' representatives

Question 33

________ are full-service merchant wholesalers that set up displays in retail outlets,stock inventory,and perform other services such as marking prices on merchandise.

A) Rack jobbers
B) Agents
C) Brokers
D) System integrators
E) Value-added resellers

Question 34

Merchant wholesalers differ from brokers in that merchant wholesalers ________.

A) are generally paid a commission for arranging sales
B) never actually own the products they handle
C) take legal title to goods they distribute
D) sell various noncompeting products to customers in a specific region
E) offer a limited range of convenience goods, long service hours, and quick checkouts

Question 35

Producers rely on a class of intermediaries called value-added resellers (VARs)to assist with which of the following functions?

A) transport the goods from the producer to the retail outlets
B) assist with advertising, in-store displays, and other promotional efforts
C) provide market information
D) divide bulk quantities into smaller packages
E) complete or customize solutions for customers

Question 36

Merchant wholesalers that sell products to organizational customers for internal operations or the production of other goods,rather than to retailers for resale,are called ________.

A) manufacturers' representatives
B) drop shippers
C) rack jobbers
D) distributors
E) system integrators

Question 37

Channel conflict refers to disagreement over rights and responsibilities of the organizations in a distribution channel.

Question 38

Agents differ from merchant wholesalers in that agents ________.

A) take legal title to goods they distribute
B) never actually own the products they handle
C) take ownership, but not physical possession, of the goods they handle
D) provide a wide variety of services, such as storage, selling, order processing, delivery, and promotional support
E) set up displays in retail outlets, stock inventory, and perform other services such as marking prices on merchandise

Question 39

Order processing involves preparing orders for shipment and receiving orders when shipments arrive.

Question 40

Which of the following is a defining characteristic of manufacturers' representatives?

A) They take ownership, but not physical possession, of the goods they handle.
B) They sell various noncompeting products to customers in a specific region.
C) They set up displays in retail outlets, stock inventory, and perform other services such as marking prices on merchandise.
D) They sort, standardize, and divide bulk quantities into smaller packages.
E) They complete or customize solutions for customers.

Question 41

Weaver & Sharpe,Inc.,a firm that manufactures home and kitchen appliances,uses an intensive distribution strategy.However,the firm finds that the retailers in the same marketing area compete with each other for greater market share,which negatively affects the sale of Weaver & Sharpe products.Which of the following can help Weaver & Sharpe,Inc.to resolve the problem of channel conflict?

A) decentralization
B) disintermediation
C) centralization
D) diversification
E) product development

Question 42

TechSource Inc.is a wholesaler of electronic components,such as connectors and semiconductors.The firm purchases electronic components directly from technology manufacturers,has physical possession of the products,takes legal title to the goods,and then resells it to organizational customers for internal operations or the production of other goods.TechSource Inc.does not sell products to retailers for resale.TechSource Inc.can be classified as a(n)________.

A) drop shipper
B) manufacturers' representative
C) agent
D) distributor
E) broker

Question 43

Which of the following is a defining characteristic of drop shippers?

A) They take ownership, but not physical possession, of the goods they handle.
B) They do not do take title to the goods they distribute but take possession of those goods.
C) They sell various noncompeting products to customers in a specific region.
D) They set up displays in retail outlets, stock inventory, and perform other services such as marking prices on merchandise.
E) They complete or customize solutions for customers.

Question 44

M&K Wholesalers,owned by Jonathan McCloud,sells rough lumber to furniture manufacturers.M&K Wholesalers take ownership,but not physical possession,of the goods they handle.The firm does not keep goods in stock,but instead transfers customer orders and shipment details to American Timber and Lumber Inc.,a producer and manufacturer of quality hardwood lumber.M&K Wholesalers can be classified as ________.

A) brokers
B) drop shippers
C) agents
D) value-added resellers
E) manufacturers representatives

Question 45

PetCare is a retail store based in New York that offers only pet supplies and pet accessories.The shop stocks a limited number of product lines such as dog and cat products (canned and dry food,and hard goods),and bird,fish and small animal products (fish tanks,stands,aquarium decorations,cages,bowls,perches,etc.).The shop stocks several brands of varying prices rages within these product lines.PetCare can be classified as a(n)________.

A) department store
B) manufacturers' representative
C) supermarket
D) specialty store
E) convenience store

Question 46

Which of the following is an example of disintermediation?

A) A manufacturing firm introduces a new line of products.
B) A manufacturing firm uses in-store marketing to help customers locate its products.
C) A manufacturing firm chooses retailers that can provide customer support for its products.
D) A manufacturing firm closely monitors the activities of its retailers to ensure that its brand image is not harmed.
E) A manufacturing firm supplies its products directly to the retailers, instead of selling them to the wholesaler.

Question 47

Unlike drop shippers,rack jobbers ________.

A) provide fewer services
B) perform services such as setting up displays in retail outlets
C) sell goods and services to individuals for their own personal use
D) customize solutions for customers
E) take title to the goods they distribute

Question 48

Off-price retailers differ from discount stores in that off-price retailers ________.

A) offer many customer services
B) require club membership
C) offer a limited range of convenience goods, long service hours, and quick checkouts
D) sell a variety of everyday goods below the market price by keeping their overhead low
E) sell designer labels and other fashionable products at steep discounts

Question 49

PopArt,an American manufacturer of music and pop culture-related clothing and accessories,sells its products to selected retail stores,who then resell them to consumers.However,the firm finds that the retail stores do not market their products effectively.PopArt begins to market its products directly to the consumers to have greater control over pricing,promotion,service,and delivery of their products.Thus the firm replaces the retailers.This exemplifies ________.

A) decentralization
B) disintermediation
C) centralization
D) diversification
E) the wheel of retailing

Question 50

InfiniTea,Inc.is a manufacturer of a range of organic teas.The firm provides free samples of their products in stalls at retail stores that stock their products to increase their brand awareness.In this example,InfiniTea,Inc.uses ________.

A) stealth marketing
B) cause-related marketing
C) drop shipping
D) shopper marketing
E) disintermediation

Question 51

________ refers to a type of specialty store that focuses on specific products on a massive scale and dominates retail sales in respective products categories.

A) Warehouse club
B) Department store
C) Category killer
D) Off-price store
E) Hypermarket

Question 52

Which of the following is a key feature of a supermarket?

A) It is a store that offers a complete selection in a narrow range of merchandise.
B) It is a large outlet store that sells discontinued items, overruns, and factory seconds.
C) It is a web-based store that offers anything from a single product line to comprehensive selections in multiple product areas.
D) It is a large, self-service store that offers a wide selection of food and non-food merchandise.
E) It is a store that sells designer labels and other fashionable products at steep discounts.

Question 53

Large stores that carry a variety of products in multiple categories,such as clothing,house wares,gifts,bedding,and furniture are termed as ________.

A) specialty stores
B) convenience stores
C) department stores
D) distributors
E) drop shippers

Question 54

Stores that carry only a particular type of goods,often with deep selection in those specific categories,are called ________.

A) department stores
B) specialty stores
C) distributors
D) drop shippers
E) convenience stores

Question 55

MacyPools is a firm that distributes pool chemicals,pool equipment,and pool supplies.The firm purchases the products from manufacturers,takes legal title to the goods,and then resells it to companies and government agencies.MacyPools also sells its products to small-business owners who then resell it to individuals for their own personal use.MacyPools can be classified as ________.

A) brokers
B) drop shippers
C) merchant wholesalers
D) manufacturers' representatives
E) a specialty store

Question 56

Discount stores differ from off-price retailers in that discount stores ________.

A) sell limited selections of designer labels at steep discounts
B) use e-commerce technologies to sell over the Internet
C) offer a limited range of convenience goods, long service hours, and quick checkouts
D) feature a wide variety of aggressively priced everyday merchandise
E) focus on specific products on a massive scale and dominate retail sales in respective products categories

Question 57

When the role of an intermediary is taken over by manufacturers upstream or customers downstream,________ occurs.

A) centralization
B) disintermediation
C) drop shipping
D) market penetration
E) horizontal integration

Question 58

________ refers to an evolutionary process by which stores that feature low prices gradually upgrade until they no longer appeal to price-sensitive shoppers and are replaced by a new generation of leaner,low-price competitors.

A) Benchmarking
B) Decision tree model
C) Hawthorne effect
D) Wheel of retailing
E) Hyper-retailing

Question 59

JustBooks Company is a U.S.-based international wholesaler specializing in Afro-American books and children's literature.The firm purchases books from publishers,has physical possession of the books,takes legal title to them,and sells them to retailers for resale.The firm also offers a wide variety of services including setting up displays in retail outlets,and marking prices on books.JustBooks Company can be classified as a(n)________.

A) rack jobber
B) drop shipper
C) broker
D) agent
E) specialty store

Question 60

Communication efforts directed at consumers while they are in the retail setting are referred to as ________.

A) stealth marketing
B) shopper marketing
C) disintermediation
D) breaking bulk
E) cause-related marketing

Question 61

The Bookstop,a chain of bookstores in the United States,sells books to individuals for personal use.The firm began with a traditional retail storefront,and then began to "sell through" mail order catalogs as well.Recently,the store also opened a website and sells its books online.The website also allows customers to place requests for specific books that are not in the stock.In this example,The Bookstop uses ________.

A) strategic sourcing
B) disintermediation
C) retail theater
D) multichannel retailing
E) wheel of retailing

Question 62

Market coverage refers to ________.

A) the arrangements by which channel partners coordinate their activities under the leadership of one of the partners
B) the number of layers between producers and target customers
C) all the activities required to move finished products from the producer to the consumer
D) the planning, movement, and flow of goods and related information throughout the supply chain
E) the number of wholesalers or retailers that will carry a product

Question 63

CTM Manufacturers,a firm that manufactures luxury cars,offers its products in only one outlet in each market area.The car dealers are carefully chosen by the firm and monitored to ensure that CTM cars are properly merchandised.The firm chooses the optimum number of outlets carefully to balance cost and market coverage.CTM Manufacturers uses which of the following market coverage strategies?

A) selective distribution
B) exclusive distribution
C) intensive distribution
D) disintermediation
E) multichannel retailing

Question 64

Exclusive distribution differs from intensive distribution in that exclusive distribution ________.

A) involves offering products in a limited number of outlets in each market area
B) requires wholesalers and retailers of many types
C) refer to producers who sell directly to customers
D) tries to place a product in as many outlets as possible
E) offers products in only one outlet in each market area

Question 65

Hybrid stores differ from pop-up stores in that hybrid stores ________.

A) exist for only a short time
B) combine different types of retailers in the same facility
C) require club membership
D) are designed more as attention-getting events than as ongoing retail operations
E) focus on specific products on a massive scale

Question 66

Arrangements by which channel partners coordinate their activities under the leadership of one of the partners is termed as ________.

A) vertical integration
B) benchmarking
C) affirmative action
D) marketing systems
E) disintermediation

Question 67

________ refers to a market coverage strategy that tries to place a product in as many outlets as possible.

A) Intensive distribution
B) Selective distribution
C) Exclusive distribution
D) Disintermediation
E) Strategic sourcing

Question 68

Because grocery stores have limited shelf space for products,they often require a(n)________ from producers before they will agree to carry a new,unproven product.

A) space allotment
B) slotting allowance
C) channel conflict allowance
D) opportunity cost
E) bandwidth payment

Question 69

The number of layers between producers and their target customers is known as ________.

A) market coverage
B) channel length
C) logistics
D) wheel of retailing
E) multichannel retailing

Question 70

Intensive distribution differs from selective distribution in that intensive distribution ________.

A) offers products in only one outlet in each market area
B) tries to place a product in as many outlets as possible
C) refers to producers that sell directly to consumers
D) involves selling through a limited number of outlets
E) involves retailers that give the product adequate sales and service support

Question 71

Hamilton Manufacturing Group manufactures stationary products such as various types of pens,papers,pencils,paper clips,etc.The firm tries to place a product in as many outlets as possible.Hamilton Manufacturing Group works with wholesalers and retailers of many types to ensure that their products have a wide market coverage.Hamilton Manufacturing Group uses which of the following strategies?

A) intensive distribution
B) selective distribution
C) multichannel retailing
D) exclusive distribution
E) disintermediation

Question 72

When you enter a Sonicboom store,you won't find shelves of its products.Instead,it has attractive,interactive displays that help you "audition" various Sonicboom music players.The store has a soundproof room where customers can listen to music and play high-definition videos,see and hear the audio and video performance of Sonicboom products.Customers are given free monthly newsletters,with reviews of Sonicboom,and articles on latest trends in the music industry.This would be an example of ________.

A) strategic sourcing
B) disintermediation
C) retail theater
D) multichannel retailing
E) wheel of retailing

Question 73

Which of the following statements is TRUE about retailing formats?

A) Online retailers can be either Internet-only operations or online extensions of store-based operations.
B) Off-price retailers refer to large stores that carry a variety of products in multiple categories, such as clothing, house wares, gifts, bedding, and furniture.
C) Department stores sell various noncompeting products to customers in a specific region.
D) All retailing efforts can be divided into wholesalers and distributors.
E) The replacement of intermediaries by producers when the producers can perform channel functions more effectively is referred to as the wheel of retailing.

Question 74

Only specially selected retailers are allowed to stock and sell the orthopedic shoes by Ace Footware Manufacturers.The firm sells through a limited number of retailers and develops solid working relationships with the retailers to ensure that the product is properly merchandised.The retailers selling the products also provide sales and service support for Ace Footware products.Ace Footware Manufacturers uses which of the following market coverage strategies?

A) strategic sourcing
B) multichannel retailing
C) selective distribution
D) retail theater
E) disintermediation

Question 75

The ________ is a combination of intermediaries and channels that producers use to reach its target customers.

A) marketing mix
B) trading channel
C) distribution mix
D) wheel of retailing
E) market segmentation

Question 76

________ combine different types of retailers or different retail companies in the same facility.

A) Pop-up stores
B) Interactive kiosks
C) Off-price stores
D) Factory outlets
E) Hybrid stores

Question 77

________ refers to the addition of entertainment or education aspects to the retail experience.

A) Multichannel retailing
B) Off-price retailers
C) Unbundling of services
D) Retail theater
E) Wheel of retailing

Question 78

Stores that specialize in Halloween costumes and decorations open in retail spots in middle-class areas during the beginning of September.These stores typically sell unusual items like animatronic witches,various stage props,as well as a range of makeup,wigs,etc.They are temporary stores,and close shortly after Halloween.These stores would be examples of ________.

A) pop-up stores
B) retail theaters
C) distributors
D) off-price stores
E) drop shippers

Question 79

Disagreement over rights and responsibilities of the organizations in a distribution channel is termed as ________.

A) shopper marketing
B) category killer
C) channel conflict
D) disintermediation
E) positioning

Question 80

Retail stores that exist for only a short time and are designed more as attention-getting events than as ongoing retail operations are called ________.

A) pop-up stores
B) retail theaters
C) hybrid stores
D) off-price stores
E) specialty stores