Deck 15: Supply Chain and Channel Management

Question 1

A wholesaler always sells products directly to consumers.

Answer 1

False

Question 2

When a manufacturer offers a monetary incentive to get a supplier to lower its cost of goods, the manufacturer is exhibiting reward power.

Answer 2

True

Question 3

An advanced shipping notice is used by retailers to let consumers know when products will arrive at the store.

Answer 3

False

Question 4

Wholesalers are often used in an indirect marketing channel.

Question 5

When Walgreens threatens to punish another 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.

Question 6

Quick response (QR)inventory systems allow retailers to receive less merchandise at a time but on a more frequent basis.

Question 7

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.

Question 8

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.

Question 9

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.

Question 10

When two competing retailers have a disagreement, it is an example of a vertical channel conflict.

Question 11

Marketing channel management adds value because it gets products to customers efficiently, quickly, and at low cost.

Question 12

The vertical marketing system that exhibits the most formalization and control is the corporate vertical marketing system.

Question 13

Mobile task management technology is used by retailers when planning the flow of floor space.

Question 14

When manufacturers such as Avon sell directly to consumers, they perform both production and retailing activities.

Question 15

Marketing channel management and supply chain management are virtually the same.

Question 16

Conflicts within a supply chain tend to be more pronounced when the members are part of a corporate vertical marketing system.

Question 17

In a direct marketing channel, there are no intermediaries between the buyer and the seller.

Question 18

Radio frequency identification (RFID)tags automatically transmit information about a container's contents or individual products.

Question 19

Distribution centers are used to ship products directly to consumers.

Question 20

Universal product codes (UPCs)are used to describe products for inventory taxation purposes.

Question 21

Franchising is a type of contractual ________ marketing system.

A)cooperative
B)corporate
C)vertical
D)administered
E)conventional

Question 22

In marketing's four Ps, place refers to all activities required to get

A)goods to a distribution location.
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.

Question 23

Eileen is in charge of supply chain management for her company. In this role, she would be responsible for

A)integrating suppliers, stores, and transportation companies.
B)projecting sales prior to each quarter.
C)calculating cost of goods sold.
D)overseeing customer service.
E)organizing retail space design.

Question 24

Britt's Bikes Inc. recently started buying paint for its bikes from Color Supply Corp. Color Supply Corp. is part of Britt's Bikes

A)supply chain.
B)corporate vertical marketing system.
C)distribution center.
D)CFPR.
E)warehouse distribution system.

Question 25

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.

Question 26

With more frequent shipments associated with quick response (QR)systems, a retailer is

A)likely to have lower shipping costs.
B)more likely to add extra floor-ready merchandise.
C)less likely to use radio frequency identification tags.
D)more likely to engage in predatory pricing behavior.
E)more likely to have what customers want.

Question 27

Abby creates macramé plant hangers out of old sweaters 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)two-step

Question 28

The importance of place is often underestimated 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.

Question 29

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

Question 30

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

Question 31

Brigette works for Simply Shoes Inc. which buys products directly from the manufacturer and resells them to retailers, who then sell the products to consumers. Brigette works for a

A)retail distribution center.
B)retail jobber.
C)store representative.
D)wholesaler.
E)manufacturer's representative.

Question 32

An electronics store buys televisions, computers, cellular phones, and gaming systems from various manufacturers and resells them to its customers. What type of marketing channel does this represent?

A)horizontal
B)vertical
C)indirect
D)direct
E)simple

Question 33

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 likelylead to a(n)________ channel conflict.

A)horizontal
B)independent
C)conventional
D)coercive
E)vertical

Question 34

Henry makes croissants and sells them to local restaurants. This is an example of a(n)

A)direct marketing channel.
B)distribution center.
C)simplified transaction.
D)wholesale operation.
E)indirect marketing channel.

Question 35

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)retail store

Question 36

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

Question 37

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.

Question 38

When Lowe's Home Improvement stores sell to consumers directly, it acts as a ________; when it sells to other businesses, such as a building contractor, it acts as a ________.

A)wholesaler; retailer
B)retailer; manufacturer
C)retailer; wholesaler
D)manufacturer; wholesaler
E)marketing channel; supply channel

Question 39

Having no intermediaries between the buyer and seller is a defining characteristic of a(n)________ marketing channel.

A)indirect
B)vertical
C)horizontal
D)two-step
E)direct

Question 40

The "prime effect" created by Amazon by providing free two-day shipping to every Prime member forces other retailers to offer rapid delivery, which can be very expensive . This is an example of ________ channel conflict.

A)horizontal
B)independent
C)conventional
D)coercive
E)vertical

Question 41

Parul has just taken over her family's business after spending ten years in the marketing department of a large corporation. She met with a representative from one of the firm's biggest customers, who told her, "We should think about how we can make the pie bigger rather than fighting over the size of the slices." She had expected a more cutthroat approach rather than this call for a

A)partnering relationship.
B)shared mission statement.
C)common marketing system.
D)corporate vertical marketing system.
E)linked supply chain.

Question 42

Marketing channels and supply chains comprise various buying entities that form relationships with one another. The basic motivating factor in these interactions is

A)collaboration creates transactional relationships.
B)the most powerful member of the supply chain always wins.
C)each party wants something from the others.
D)the participants must create the best possible EDI system.
E)retail floor salespeople need emotional support from management.

Question 43

Brigson Manufacturing Group works with several different suppliers for component parts. One of the suppliers, Caster Corp. has achieved control over the entire supply chain because it tells Brigson when caster orders can be shipped and only ships them when Brigson orders at least ten pallets worth of product. In this situation, Caster Corp. demonstrates ________ in this supply chain.

A)production
B)persistence
C)promotion
D)power
E)pressure

Question 44

When there is a partnering relationship in business, _______ is the belief that the partner is honest and benevolent.

A)interdependence
B)credibility
C)trust
D)profit
E)communication

Question 45

When supply chain members view their goals and ultimate success as intricately linked, or ________, they develop deeper long-term relationships.

A)conventional
B)vertical
C)horizontal
D)administered
E)interdependent

Question 46

Walmart may have ________ power if a supplier desperately wants to be associated with Walmart, because being known as an important Walmart supplier enables that supplier to attract other retailers' business.

A)referent
B)legitimate
C)licensing arrangement.
D)information
E)coercive

Question 47

Katrine's Kitchen Klassics sells products to a large big-box store. Unfortunately, Katrine's doesn't have much say about how their products are marketed at the store because the big-box store feels it is much more knowledgeable about how to market. What type of power does this represent?

A)expertise
B)referent
C)coercive
D)legitimate
E)information

Question 48

Barb overheard an unpleasant encounter between the manager of the paint store where she works and a sales rep who sells a well-known line of paint products. The rep insisted that his products should be more prominently displayed. The manager had other plans and told him so, and the conversation turned into a loud argument. What Barb observed was an example of

A)sales tactics.
B)channel conflict.
C)retail strategy tension.
D)passive aggressive behavior.
E)a failure of EDI processes.

Question 49

In a(n)________ marketing channel, each member attempts to satisfy its own objectives.

A)cooperative
B)corporate
C)contractual
D)administered
E)conventional

Question 50

If a firm declared that it wanted to develop a strategic relationship, but was unwilling to commit funds or any effort to make it succeed, there would be an obvious lack of

A)mutual trust.
B)common goals.
C)a contractual arrangement.
D)credible commitments.
E)open communication.

Question 51

Because Walmart has vast knowledge about the consumer goods market, it might exert ________ power over P&G by providing or withholding important market data.

A)coercive
B)reward
C)referent
D)legitimate
E)information

Question 52

Who retains complete power in a corporate vertical marketing system?

A)retail outlets
B)transportation companies
C)warehouse distribution centers
D)suppliers
E)parent company

Question 53

In a vertical marketing system, if the system is ________, the less likely conflict will occur.

A)less formal
B)more independent
C)less independent
D)more conventional
E)more formal

Question 54

When Bob's Burger Barn wants french fries delivered in smaller batches more frequently, it offers its distributors an incentive in the form of special bonuses to change their schedules. Bob's Burger Barn demonstrates which kind of power?

A)coercive
B)reward
C)referent
D)expertise
E)information

Question 55

In a(n)________ marketing channel, several independent members each attempt maximize their profits.

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

Question 56

When her company's component parts were delivered late for the second time in a month, Brigitte withheld payment from her supplier until it was back on schedule. This is an example of ________ power.

A)coercive
B)reward
C)referent
D)expertise
E)legitimate

Question 57

Heidi would love to get her company's line of bathroom cleaners into Walmart. She believes that if Walmart sells the products, other retailers will also want to. Which type of power does Heidi hope to achieve?

A)legitimate
B)information
C)coercive
D)referent
E)expertise

Question 58

When Braun's Big Box stores promise to purchase larger quantities if a manufacturer will lower its wholesale price, it is exhibiting ________ power.

A)reward
B)coercive
C)knowledge
D)legitimate
E)referent

Question 59

Walmart needs P&G to satisfy its customers, and P&G recognizes that if it can keep Walmart happy, it will have more than enough business for years to come. Walmart and P&G recognize that it is in their common interest to be

A)separate identities.
B)strategic partners.
C)supply chain intermediaries.
D)in a corporate vertical marketing system.
E)in an administered vertical marketing system.

Question 60

When ________ power is evident, the channel member exerting the power offers some type of compensation to gain power.

A)referent
B)coercive
C)reward
D)legitimate
E)expertise

Question 61

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.

Question 62

When Amazon delivers products to the consumer's front door, the merchandise has been delivered

A)via customer store pickup.
B)from distribution center to retail outlet to the customer.
C)by shipping the merchandise to a retail store.
D)directly to the customer from a fulfillment center.
E)from a retail outlet to a distribution center.

Question 63

Olivia received an e-mail notification from Target telling her that her housewares merchandise order was processed and dispatched. Olivia received a(n)

A)horizontal contractual notice.
B)vendor-managed inventory alert.
C)advanced shipping notice.
D)universal product code report.
E)EDI tag.

Question 64

What is one advantage to using a distribution center?

A)Retailers fulfill all of their orders in-house.
B)Sales forecasts can only be made for six months out.
C)Distribution center floor space is typically more expensive.
D)Retailers can carry less merchandise.
E)Stores tend to have more stock on hand.

Question 65

Darcy's Dress Emporium 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 store, available for sale. This increases product availability and lowers inventory investment. These benefits are attributed to the ________ system.

A)cross-docking
B)UPC
C)just-in-time (JIT)
D)EDI
E)vendor-managed inventory

Question 66

Radio frequency identification tags are

A)selective distribution designs used to maximize geographic efficiency.
B)electronic discount information tags used to provide reduced prices to select customers.
C)VMI demand scheduling data tags.
D)tiny computer chips that transmit information about a container's contents.
E)information tags used for floor-ready merchandising.

Question 67

Manufacturers trying to implement a just-in-time delivery system need to start with

A)routing software.
B)shipping schedules.
C)distribution center design.
D)knowledge of customer demand.
E)intensive distribution.

Question 68

At the Keller Electronics plant in Nashville, Tennessee, rather than use a typical order-to-delivery process, it has suppliers deliver parts every two days when the plant is in operation. Keller Electronics uses a ________ inventory control system.

A)cross-docking
B)lead time
C)just-in-time (JIT)
D)pick ticket
E)UPC

Question 69

Especially in the fashion industry where styles and trends change rapidly, a quick response system can

A)allow retailers to better forecast long-term demand.
B)reduce logistical overlay.
C)increase cross-docking promotional effectiveness.
D)align deliveries more closely with actual sales.
E)allow manufacturers to introduce unpopular styles and still be successful.

Question 70

As the text states, "Students of marketing often overlook or underestimate the importance of place in the marketing mix." Why? Create an example to describe how place is important to consumers.

Question 71

Tomas 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. Tomas is responsible for ________ products in his company.

A)checking
B)dispatching
C)shipping
D)JIT
E)quick response

Question 72

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(n)________ inventory system.

A)cross-docking
B)quick response (QR)
C)UPC
D)EDI
E)lead time

Question 73

Shondra is considering using a distribution center and asks your opinion. What is one advantage of a distribution center you could tell Shondra?

A)More accurate sales forecasts are possible.
B)Retailers need to keep more merchandise in the store as inventory.
C)It is a greater challenge to keep stock for customer distribution.
D)The storage space at a distribution center is generally more expensive than that of a retail store.
E)Customers know they are dealing with a more financially well-off operation if the firm uses a distribution center

Question 74

Each time a politician or celebrity writes a book, bookstores can expect at least some customers to want the book, but whether it will become a best-seller is less certain. The bookstore's primary inventory management challenge is

A)how to get the author to sign copies of the book.
B)whether to price the books in the distribution center or at the retail store.
C)which other books to promote along with this book.
D)whether or not to display the book at the checkout counter.
E)having enough books to satisfy customer demands versus the cost of having the inventory.

Question 75

In a retail supply chain, the ________ records the purchase information and electronically sends it to the corporate office.

A)UPC
B)POS terminal
C)VMI
D)ASN
E)data warehouse

Question 76

The tiny computer chips embedded in some products automatically transmit to a special scanner. What are these called?

A)EOM
B)RFID
C)GNP
D)EDI
E)UPC

Question 77

Because manufacturers with JIT systems produce merchandise closer to the time of sale, they can

A)organize cooperative agreements among competing manufacturers to reduce oversupply.
B)reduce inventories needed to satisfy retailers' demand.
C)use exclusive geographic territories to centralize production.
D)effectively eliminate the need for a dispatcher.
E)replace independent supply chains with corporate supply chains.

Question 78

Leona is the logistics manager for the Barnes & Noble bookstore chain. She is weighing the many benefits of the company's JIT system but will need to consider that just-in-time inventory management systems increase ________ costs.

A)sales force labor
B)transportation
C)promotional
D)advertising
E)new product development

Question 79

What would typically happen during the first flow of information through the marketing channel?

A)The store communicates with the distribution center.
B)The sale is transmitted to the distribution center to adjust inventory data.
C)The sales associate at a store scans a UPC tag.
D)The purchase information from all retail stores in the system is aggregated.
E)The point-of-sale terminal records the purchasing information.

Question 80

A(n)________ is 13-digit code retailers can use to track inventory.

A)UPC
B)CFPR
C)pick ticket
D)ASN
E)EDI