Deck 12: Retailing and Multichanneled Marketing

Question 1

RS Associates is a firm that is engaged in buying, taking title to, and physically handling goods.The firm also resells the goods.RS Associates is an example of a:

A)wholesaler.
B)promoter.
C)dealer.
D)retailer.
E)warehouse.

Answer 1

A

Question 2

Arbex Stores is located in Prince Albert, a city in Saskatchewan.The store displays different types of home furniture and most of the store's business comes from individual consumers.The firm displays products of many manufacturers.Arbex Stores is best referred to as a(n):

A)organizer.
B)distributor.
C)retailer.
D)warehouse.
E)wholesaler.

Answer 2

C

Question 3

Subexo Stores is a small firm that sells its products directly to consumers.The company stores many brands of consumer goods and other low-value items.Subexo Stores is best referred to as a(n):

A)organizer.
B)retailer.
C)warehouse.
D)distributor.
E)wholesaler.

Answer 3

B

Question 4

Distribution channels add value to customers because they:

A)are the most important component of product promotions.
B)conduct multiple quality reviews for the product.
C)do not include external entities or vendors.
D)get products to customers quickly and at low cost.
E)are crucial only for technical offerings of products.

Question 5

Retail stores that sell multiple brands help brands obtain competitive intelligence about customers or other channel members.Which of the following intermediary functions does this relate to?

A)physical distribution
B)financing
C)promotion
D)risk taking
E)gathering information

Question 6

Firms that buy products from manufacturers and resell them to firms that sell products directly to consumers are called:

A)warehouses.
B)promoters.
C)dealers.
D)retailers.
E)wholesalers.

Question 7

Retailers promote the products of a manufacturer to attract consumers.This is an example of a(n) function of retailers.

A)facilitating
B)logistical
C)transactional
D)informational
E)distributive

Question 8

Firms that sell products directly to consumers are called:

A)promoters.
B)retailers.
C)distributors.
D)warehouses.
E)intermediaries.

Question 9

FS Computers is a manufacturer of personal computers.The company sells all its products by allowing customers to select the configuration of computer they want and place orders online.This is an example of:

A)circular distribution.
B)direct distribution.
C)parallel distribution.
D)multiple distribution.
E)multichannel distribution.

Question 10

Which of the following is an example of a facilitating function that intermediaries perform?

A)transporting goods to customers
B)purchasing goods for resale
C)maintaining inventory
D)extending credit to customers
E)transacting with potential customers

Question 11

Sober Inc.is a manufacturer of high-definition televisions.The firm sells its products through external resellers.The resellers transport the products to the buyers' location and take care of the installation.The functions performed by the reseller exemplifies the function of intermediaries.

A)facilitating
B)logistical
C)transactional
D)risk taking
E)promotional

Question 12

Charles Cycles is the largest seller of Rober Bicycles in Manitoba.The firm ships products directly from Rober's manufacturing plant and sells the products to smaller firms across Manitoba.Charles Cycles is best referred to as a:

A)promoter.
B)warehouse.
C)retailer.
D)dealer.
E)wholesaler.

Question 13

Which of the following is an example of a transactional function that intermediaries perform?

A)transporting goods to customers
B)purchasing goods for resale
C)maintaining inventory
D)extending credit to customers
E)sharing competitive intelligence about customers

Question 14

Maintaining inventory and protecting goods of manufacturers is an example of a function of intermediaries.

A)promotional
B)facilitating
C)risk taking
D)logistical
E)transactional

Question 15

Most U.S.companies pay listing fees to get shelf space in retail outlets.Which of the following factors have contributed the most to the advent of listing fees?

A)Retail business is negatively influenced by the economic slowdown.
B)The Internet has emerged as a strong distribution channel.
C)The number of retail chains have increased drastically.
D)Many new products are being introduced each day.
E)The importance given to product quality has strengthened.

Question 16

Which of the following describes the integration of two or more activities to plan, implement, and control the efficient flow of raw materials, in-process inventory, and finished goods from the point of origin to the point of consumption?

A)marketing management
B)channel management
C)logistics management
D)supply chain management
E)production management

Question 17

FSX sells office furniture.The firm procures merchandise from different manufacturers in Canada and sells it to smaller sellers in Lethbridge.FSX is an example of a:

A)warehouse.
B)promoter.
C)dealer.
D)retailer.
E)wholesaler.

Question 18

Which of the following is an example of a logistical function that intermediaries perform?

A)promoting products to attract consumers
B)purchasing goods for resale
C)maintaining inventory
D)extending credit to customers
E)sharing competitive intelligence about customers

Question 19

The institutions that transfer the ownership of and move goods from the point of production to the point of consumption are called the:

A)distribution channel.
B)operational structure.
C)production structure.
D)marketing channel.
E)procurement channel.

Question 20

Logistics was traditionally the responsibility of:

A)procurement.
B)packaging.
C)operations.
D)purchasing.
E)manufacturing.

Question 21

Which of the following tools is commonly used in a push strategy?

A)social advertising
B)print advertising
C)personal selling
D)TV commercials
E)direct mail campaigns

Question 22

RS Constructions is a manufacturer who has a supply chain system with no common ownership.However, the company, being the dominant channel member, has total control over the relationship.This is an example of a(n) vertical marketing system.

A)independent
B)corporate
C)franchised
D)contractual
E)administered

Question 23

Which of the following actions of a manufacturer is most likely to increase distribution intensity?

A)storing less inventory in warehouses
B)introducing more products
C)increasing the number of outlets
D)introducing a new product line
E)reducing the number of intermediaries

Question 24

Conflicts in a distribution channel are generally more pronounced when:

A)the industry in which the channel exists is a monopoly.
B)a company's channel members rely on one another.
C)the channel members are independent entities.
D)a company is using a direct distribution strategy.
E)the channel members use a common communication channel.

Question 25

Sodo Cola is a leading manufacturer of soft drinks.The firm believes in making the products visible and continually attempts to place its products in as many outlets as possible.The firm is using a(n) distribution strategy.

A)exclusive geographic
B)territorial
C)selective
D)intensive
E)exclusive product

Question 26

With a push strategy, a manufacturer focuses its promotional efforts on:

A)channel members to convince them to carry its product.
B)customers to create more demand for specific brands.
C)reducing the number of intermediaries that it has.
D)creating demand for the company's products as a whole.
E)selling products by using new channels such as the Internet.

Question 27

The number of channel members used at each level of the supply chain is called:

A)procurement intensity.
B)channel structure.
C)distribution intensity.
D)distribution frequency.
E)procurement frequency.

Question 28

With a pull strategy, a manufacturer focuses its promotional efforts on:

A)channel members to convince them to carry its product.
B)forcing channel members to stock less inventory.
C)reducing the number of intermediaries that it has.
D)selling products by using new channels such as the Internet.
E)building demand for products by focusing on consumers.

Question 29

Which of the following tools is commonly used in a pull strategy?

A)product bundling
B)discount sales
C)rebates
D)TV commercials
E)personal selling

Question 30

Direct distribution channels allow manufacturers to:

A)create more inventory in distribution.
B)deal directly with consumers.
C)purchase goods for resale.
D)transfer the risk of ownership.
E)gather accurate information on customers.

Question 31

Forster Gifts is a manufacturer of gift articles.The company sells its products to businesses and individual consumers.The company sells directly to most of its industrial buyers by using company salespeople and sells to individual consumers through third-party retail outlets.The company also has an Internet shop to sell gifts.This distribution strategy is best referred to as:

A)indirect distribution.
B)circular distribution.
C)direct distribution.
D)personal distribution.
E)multichannel distribution.

Question 32

RFX Cycles is a manufacturer of bicycles.The firm is the only manufacturer of cycles in its country and controls all its supply chain partners although it has no legal obligations.This is an example of a(n) vertical marketing system.

A)independent
B)contractual
C)franchised
D)corporate
E)administered

Question 33

Which of the following is an example of using a pull strategy?

A)A company offers a volume discount to increase its sales.
B)A retail shop announces a stock clearance sale.
C)An insurer hires more agents to sell more.
D)A firm appoints more salespeople to increase sales.
E)A company uses mass media advertisements for its products.

Question 34

Which of the following vertical marketing systems is a supply chain system in which there is no common ownership and no contractual relationships, but the dominant channel member controls the channel relationship?

A)administered
B)independent
C)franchised
D)corporate
E)contractual

Question 35

Which of the following will strengthen the chances of direct distribution?

A)low listing fees in the industry
B)scattered target consumers
C)low value of the products
D)fewer consumers
E)reduced shelf space in outlets

Question 36

Which of the following distribution strategies grants rights to sell to one or very few retail customers so that no other store can sell a particular brand?

A)intensive
B)selective
C)exclusive
D)extensive
E)geographical

Question 37

Which of the following entities is not a marketing intermediary?

A)wholesaler
B)retailer
C)manufacturer
D)distributor
E)franchisee

Question 38

Electror is a manufacturer of commercial washing machines.The firm uses personal selling to sells its products to various industrial customers.The firm is using a(n) strategy.

A)promotion-based
B)push distribution
C)indirect marketing
D)pull distribution
E)demand generation

Question 39

Which of the following strategies is designed to get products into as many outlets as possible?

A)territorial distribution
B)exclusive geographic
C)intensive distribution
D)exclusive product
E)selective distribution

Question 40

DSS Supermarkets is a retail company that manufactures the products of IFS Appliances in Canada.IFS Appliances do not have any other retail partners in Canada.This is an example of distribution strategy.

A)extensive
B)selective
C)intensive
D)exclusive
E)geographical

Question 41

Which of the following combines the entrepreneurial advantages of owning a business with the efficiencies of vertical marketing systems that function under single ownership?

A)franchise system
B)partnership
C)personal selling
D)company system
E)sole proprietorship

Question 42

Which of the following vertical marketing systems is a system in which the parent company has complete control and can dictate the priorities and objectives of the supply chain?

A)administered
B)corporate
C)coordinative
D)contractual
E)member control

Question 43

Canmart is the largest retailer in Canada.The firm, because of its large scale of operation, has absolute control over the elements in its supply chain, including distributors and retailers.This is an example of a(n) marketing system.

A)corporate vertical
B)contractual vertical
C)administered vertical
D)contractual parallel
E)administered parallel

Question 44

A manufacturing company has complete control and dictates the priorities and objectives of its supply chain partners.This is an example of a(n) vertical marketing system.

A)administered
B)coordinative
C)contractual
D)corporate
E)member control

Question 45

Which of the following supply chain relationships has members who are committed to maintaining long-term interactions and investing in mutually beneficial opportunities?

A)informational
B)strategic
C)logistical
D)functional
E)operational

Question 46

The computer-to-computer transfer of business documents from a retailer to a vendor and back is called a(n):

A)quick-response system.
B)electronic data interchange.
C)data warehouse.
D)just-in-time transfer.
E)enterprise resource system.

Question 47

DX Manufacturing has established legal relationships with its suppliers and distributors in such a way as to establish overall economies of scale.This is an example of a(n) vertical marketing system.

A)administered
B)corporate
C)parental
D)contractual
E)member control

Question 48

An inventory management system used in retailing in which merchandise is received just in time for sale when the customer wants it is called:

A)electronic data interchange.
B)universal product system.
C)franchising system.
D)quick response.
E)radio frequency identification.

Question 49

The person who coordinates deliveries to distribution centres is called the:

A)wholesaler.
B)retailer.
C)dealer.
D)distributor.
E)dispatcher.

Question 50

An electronic document that the supplier sends the retailer before a shipment to tell the retailer exactly what to expect in the shipment is called a(n):

A)dispatch file.
B)quick response.
C)advanced shipping notice.
D)lead time script.
E)purchase document.

Question 51

Which of the following vertical marketing systems is a system in which independent firms at different levels of the supply chain join together through agreements to obtain economies of scale and coordination and to reduce conflict?

A)administered
B)corporate
C)parental
D)contractual
E)member control

Question 52

Robert works in a distribution centre and coordinates its activities.Robert is best referred to as a:

A)wholesaler.
B)retailer.
C)dispatcher.
D)dealer.
E)distributor.

Question 53

In a conventional distribution channel, relationships between members often are based on the argument over the:

A)operational orientation of products.
B)needs of consumers.
C)quality of products.
D)split of the profit pie.
E)service orientation of offerings.

Question 54

Lead time is the amount of time between:

A)the recognition that an order needs to be placed and the arrival of the needed merchandise.
B)manufacturing a product and taking the product to the warehouse.
C)the conception of a product idea and the manufacture of a product.
D)the conception of a product idea and the procurement of raw materials.
E)procuring the necessary raw materials and assembling the raw materials to a finished product.

Question 55

Radio frequency identification tags are:

A)networking systems.
B)tiny computer chips.
C)inventory systems.
D)recognition systems.
E)bar codes on merchandise.

Question 56

Just-in-time systems are systems used for:

A)promoting brand management.
B)increasing market share.
C)restricting distribution intensity.
D)intensifying distribution.
E)inventory management.

Question 57

A contractual agreement between two firms that allows one of the firms to operate a retail outlet, using a name and format developed and supported by the other firm, is called:

A)licensing.
B)franchising.
C)patenting.
D)consulting.
E)cross-licensing.

Question 58

A facility for the receipt, storage, and redistribution of goods to company stores or customers that may be operated by retailers, manufacturers, or distribution specialists is called a:

A)procurement centre.
B)supply network.
C)warehouse.
D)processing centre.
E)distribution centre.

Question 59

Which of the following inventory management systems is designed to deliver less merchandise on a more frequent basis?

A)lead time
B)radio
C)vertical
D)just-in-time
E)administered

Question 60

The black and white bar code that you find when buying a packet of potato chips is called a:

A)universal product code.
B)point-of-sale record.
C)RFID.
D)process card.
E)proof of purchase.

Question 61

Charles Associates is a retail outlet that sells smartphones.The store provides its customers with convenient instalment payment options to facilitate the purchase of high-end phones.Which of the following functions is most closely associated with providing instalment options?

A)financing
B)storing
C)buying
D)promotion
E)physical distribution

Question 62

Josfer stores finished goods at resellers' storehouses rather than at the company's warehouse.This is an example of a function that intermediaries perform.

A)transactional
B)supportive
C)logistical
D)facilitating
E)collaborating

Question 63

RS Industries is a manufacturer of commercial kitchen equipment.The firm uses personal selling techniques to market its products to small-scale firms.Which of the following target markets is RS Industries pursuing?

A)business segment 2
B)consumer segment 1
C)business segment 1
D)consumer segment 2
E)business segment 3

Question 64

Which of the following is an example of a facilitating function that Josfer's supply chain partners might perform?

A)They maintain inventory and protect goods.
B)They purchase goods from Josfer.
C)They own the finished goods of Josfer.
D)They transact with potential customers.
E)They extend credit to Josfer's customers.

Question 65

Which of the following, if true, will strengthen the chances that Fredox will sell more through direct distribution?

A)Most of Fredox's target consumers make small-scale purchases.
B)Most retailers in Canada have increased listing fees recently.
C)The products that Fredox sells have relatively low value.
D)Most of the firm's business comes from retail selling.
E)Retail outlets in Canada have little shelf space for storing confectionaries.

Question 66

Rosex's major revenue generators are Canada and Mexico.The company attempts to get products into as many outlets as possible in these countries.Which of the following distribution strategies is the company using in Canada and Mexico?

A)intensive
B)restricted
C)selective
D)specialized
E)exclusive

Question 67

Jacob visits Dell's website and places an online order for a personal computer.Jacob belongs to:

A)business segment 1.
B)business segment 2.
C)business segment 3.
D)consumer segment 1.
E)consumer segment 2.

Question 68

Drobex Manufacturing does not maintain stock in its warehouse and instead keeps stock in its retail outlets.Which of the following intermediary functions does this statement relates to?

A)financing
B)storing
C)buying
D)promotion
E)distribution

Question 69

Which of the following, if true, will weaken the chances that Fredox will sell more through direct distribution?

A)The company sells only to a few business customers.
B)Listing fees for confectionaries is relatively high.
C)The products that Fredox sells have relatively low value.
D)Most of the firm's business comes from bulk selling.
E)The company's sales increased by 6 percent last year.

Question 70

In which of the following instances is the company engaging in direct marketing?

A)selling to a commercial firm through salespeople
B)selling to retail stores in Canada
C)selling to large shopping malls
D)selling through a third-party website
E)selling through a large exclusive dealer

Question 71

Josfer insists that its channel partners should purchase the goods that they intend to resell.Buying merchandise is an example of a function of intermediaries.

A)transactional
B)supportive
C)logistical
D)facilitating
E)collaborating

Question 72

Which of the following is an example of direct distribution?

A)RSS Associates, a firm that sells through exclusive distribution
B)BS Manufacturing, a firm that uses intense distribution
C)Albex, which sells agricultural machinery through agencies
D)Dell, which sells to customers through independent vendors
E)DX Textiles, which sells apparel through company-owned showrooms

Question 73

Rosex has only eight distributors in China, which helps the firm control the flow of goods in the country.This is an example of a(n) distribution strategy.

A)intensive
B)broad
C)selective
D)mass
E)exclusive

Question 74

Fred owns a small retail showroom.He buys merchandise from a larger firm that sells to most of the retailers in the area.Fred belongs to:

A)business segment 1.
B)business segment 2.
C)business segment 3.
D)consumer segment 1.
E)consumer segment 2.

Question 75

You walk into a store that has many cellphone brands and buy a phone for personal use.To which of the following segments do you belong?

A)business segment 2
B)consumer segment 1
C)business segment 1
D)consumer segment 2
E)business segment 3

Question 76

The marketing intermediaries help Josfer to gather valuable information about its customers.This is an example of a(n) function that intermediaries perform.

A)transactional
B)operational
C)logistical
D)facilitating
E)risk transferring

Question 77

Fredox stresses sales promotions and frequently gives volume discounts to retailers.The company is using a strategy.

A)personal selling
B)push distribution
C)direct marketing
D)pull distribution
E)demand generation

Question 78

Rosex's flower distribution in the United States is performed entirely through Frag Flower, a U.S.flower retailer.Which of the following distribution strategies is the company using in the United States?

A)intensive
B)broad
C)selective
D)mass
E)exclusive

Question 79

Coca-Cola sells its products to supermarkets and stores across Canada through its own distribution network.Which intermediary is absent in this situation?

A)end consumer
B)consumer
C)retailer
D)wholesaler
E)manufacturer

Question 80

RS Stores identifies that an order needs to placed for refrigerators.The company places an order after three weeks and receives the order after two weeks of placing the order.What is the lead time in this case?

A)one week
B)two weeks
C)three weeks
D)four weeks
E)five weeks