Marketing Quiz 4, Practice Exam 2

Which of the following is true of downstream channels in a company’s supply chain?
a. they provide their expertise in product design
b. they manufacture the products of the company
c. they supply raw materials and components to the company
d. they contribute financially to the company during production
e. they form an intermediary link between the company and its customers
e. they form an intermediary link between the company and its customers
A _____ is made up of a company, its suppliers, distributors, and ultimately customers who “partner” with each other to improve the performance of the entire system.
a. manufacturing chain
b. distribution center
c. marketing intermediary
d. value delivery network
e. disintermediation system
d. value delivery network
Which of the following is true of a direct marketing channel?
a. it does not use any intermediaries
b. it enables retailers to reach many customers
c. it does not use any intermediaries
d. it gives limited distribution control to producers
e. it creates a complex distribution channel
c. it does not use any intermediaries
Orion Steel manufactures cars and large buses. Accline dealers sell the firm’s cars to individual citizens, but buses are sold directly to government entities. In such distribution channel, which of the following would be considered a vertical conflict?
a. a conflict between Orion Steel and Accline Cars
b. a conflict between Orion Steel and Accline dealers
c. a conflict between two Accline car dealers
d. a conflict between Accline dealers and government entities
e. a conflict between Accline Cars and it dealers
e. a conflict between Accline Cars and its dealers
Jupiter Steel is the chief provider of metals to Greystone Motors. Greystone Motors has 2 models of cars – one for commercial and ordinary consumers and another for professional car racing teams. Greystone Motors has designated dealers to sell its commercial cars to consumers, while racing cars are sold directly to the racing teams. In such a distribution channel, which of the following would be considered a horizontal conflict?
a. a conflict between Jupiter Steel and Greystone Motors
b. a conflict between Jupiter Steel and Greystone dealers
c. a conflict between two Greystone Motors car dealerships
d. a conflict between a Greystone Motors car dealership and a racing team
e. a conflict between Greystone Motors and its car dealerships
c. a conflict between two Greystone Motors car dealerships
Which of the following is true of a conventional distribution channel?
a. it has each channel member acting as a separate business unit trying to maximize its own profits
b. it consists of producers selling their products directly to customers without the use of intermediaries
c. it has one channel member owning the other channel members
d. it is a distribution channel where a producer is owner of all the other channel members
e. it has all members of the channel working together as a single organization
a. it has each channel member acting as a separate business unit trying to maximize its own profits
Which of the following is true of a vertical marketing system?
a. it is formed when two or more companies at one level join together to follow a new marketing opportunity
b. it is formed when a single firm sets up two or more marketing channels to reach one or more customer segments
c. it does not give overall power to any one member in the channel
d. it has each channel member acting as a separate business unit trying to maximize its own profits
e. it has one channel member owning all the other channel members or has contracts with all other channel members
e. it has on channel member owning all the other channel members or has contracts with all other channel members
SS, retailer, signs an agreement with PW, electronics company, to sell PW products. Deal requires SS to provide PW products with superior displays, shelf space, and promotion compare to competing products. SS agrees to these terms as PW products command a huge share in the market. Which of the following types of channel arrangements do PW and SS most likely have?
a. administered vertical marketing system
b. corporate vertical marketing system
c. indirect marketing system
d. wholesaler franchise system
e. horizontal marketing system
a. administered vertical marketing system
FB manufactures 3 lines of cars: high end, commercial, and racing. The high-end cars are sold directly to government buyers by the company. The commercial cars are sold through dedicated dealers who only sell FB’s lines at their outlets. For its racing cars, FB collaborates w Radium Tires, an innovative & renowned tire manufacturer. FB provides the engine & body, while Radium provides the tires & its expertise on the racing industry. Which term best describes FB’s channel arrangments?
a. direct distribution system
b. horizontal marketing system
c. corporate vertical franchise system
d. multichannel distribution system
e. administered vertical marketing system
d. multichannel distribution system
Which of the following is true of an intensive distribution strategy?
a. it gives sole rights to select dealers in a given area
b. it strives to make products available where & when consumers want them
c. compared w other distribution strategies, it uses the least # of intermediaries to sell products
d. compared w other distribution strategies, it provides the best support for dealers of luxury products
e. it discards traditional intermediaries & uses direct marketing to reach customers
b. it strives to make products available where and when consumers want them
_______ distribution gives a limited number of dealers the sole rights to distribute a company’s products in their territories.
a. inclusive
b. horizontal
c. intensive
d. exclusive
e. vertical
d. exclusive
In supply chain management, moving products and materials from suppliers to the factory is known as ______ logistics.
a. outbound
b. reverse
c. inbound
d. downstream
e. inventory
c. inbound
Reverse logistics refers to moving ______.
a. unwanted, excess products from resellers to producers
b. raw materials from suppliers to the factory
c. excess materials from the factory to suppliers
d. finished products from the factory to customers
e. finished products from producers to resellers
a. unwanted, excess products from resellers to producers
Which of the following is a difference between storage warehouses & distribution centers?
a. storage warehouses are used to store agricultural products, while distribution centers are used to store non agricultural products
b. storage warehouses store goods for moderate to long periods, while distribution centers are used to move goods rather than just store them
c. storage warehouses are always owned by a producer, while distribution centers are rented
d. storage warehouses are more likely to use newer, computer-controlled systems, while distribution centers generally use outdated materials-handling methods
e. storage warehouses are exclusively used by government agencies, while distribution centers are exclusively used by private businesses
b. storage warehouses store goods for moderate to long periods, while distribution centers are used to move goods rather than just store them
______ involves combining two or more systems of transportation to move products.
a. vertical transportation
b. disintermediation
c. just-in-time management
d. vertical integration
e. multimodal transportation
e. multimodal transportation
In a just-in-time logistics system, _____.
a. retailers carry small inventories of merchandise to last for only a few days
b. retailers store products for long periods to avoid an interruption in supply
c. producers supply products to resellers before customers place their orders
d. producers that are geographically far from their retailers use an express-delivery system
e. retailers incur high inventory- carrying and inventory-handling costs
a. retailers carry small inventories of merchandise to last for only a few days
_______ refers to using point-of-purchase promotions & advertising to extend brand equity to “the last mile” & encourage favorable point-of-purchase decisions.
a. internal marketing
b. sole sourcing
c. warehousing
d. test marketing
e. shopper marketing
e. shopper marketing
Flax is a chain of stores that carries several product lines including clothing, home furnishings, & household appliances. Each line is operated as a separate department, & employees are available to assist & advise customers in every phase of the shopping process. Flax is most likely a ________.
a. self-service retailer
b. category killer
c. full-service retailer
d. supermarket
e. pop-up store
c. full-service retailer
Gamestop offers a deep assortment of video games & video game consoles. GameStop is best described as a ______.
a. department store
b. supermarket
c. specialty store
d. discount store
e. off-price retailer
c. specialty store
A convenience store ______.
a. markets to segments comprised mostly of white-collar workers
b. stocks narrow product lines that have wide, deep assortments
c. carries a limited line of high-turnover goods for consumer self-service
d. involves high operation costs due to full-service customer assistance
e. is a multi-channel food & discount retailer that targets niche markets
c. carries a limited line of high-turnover goods for consumer self-service
Dina loves branded apparel & accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned & operated by a famous brand. The company utilizes this store to sell its surplus, discontinued, or irregular goods at significantly lower costs. The retail store is best referred to as a ____.
a. category killer
b. factory outlet
c. specialty store
d. superstore
e. power center
b. factory outlet
Rhonda entered a contractual agreement w StellarCutz (affordable, walk in hair salons). Under agreement, Rhonda uses the SC trade name & receives support from SC in terms of business methods & processes. Rhonda paid a start-up fee to SC & will pay annual licensing fees for the use of the SC brand. Which of the following best describes Rhonda’s business?
a. franchise
b. factory outlet
c. superstore
d. acquisition
e. joint agreement
a. franchise
What is most likely the first major marketing decision that a retailer must take?
a. positioning
b. targeting
c. segmentation
d. differentiation
e. promoting
c. segmentation
Campbell is an old, famous for its surprise offerings of seconds, overstocks, & closeouts – occasionally including expensive items. Posco is new & offers products that are similar to C’s offerings; but P is known for encouraging customers to ask questions & for providing service representatives to assist customers in purchasing decision process. From this scenario, which of the following statements is most likely true?
a. P fails to differentiate itself from C through the services mix
b. P’s product assortment helps differentiate it from C
c. Both C & P fail to identify the needs & wants of target markets
d. C has not been able to differentiate itself on the basis of product assortment
e. P better utilizes the services mix to differentiate itself from C
e. Posco better utilizes the services mix to differentiate itself from Campbell
Barry’s is a chain of retail stores that stocks a large variety of goods & practices high-low pricing. This means that Barry’s is likely to ______.
a. have low volume & low markups
b. charge low prices constantly
c. offer numerous sales or discounts
d. compete on the basis of price rather than product or service quality
e. use predatory pricing to eliminate competition
c. offer numerous sales or discounts
Which of the following statements is true of shopping centers?
a. most shopping centers function at the regional level rather than at the neighborhood level
b. shopping centers typically contain only those stores that target a niche market segment of high income groups
c. shopping centers are groups of retail businesses built on a site that is planned, developed, owned, & managed as a unit
d. shopping centers usually contain exclusive brands & specialty stores rather than convenience stores or department stores
e. shopping centers are huge superstores that offer a deep assortment of a particular product line
c. shopping centers are groups of retail businesses built on a site that is planned, developed, owned, & managed as a unit
Carleese (fashion brand) sets up small temporary boutiques across numerous locations during its year-end sale, promoting its outdated products at half the price. These temporary boutiques are referred to as ____.
a. power centers
b. franchises
c. shopping centers
d. pop-up stores
e. category killers
d. pop-up stores
Checking out products in traditional stores & purchasing them online is referred to as ______.
a. warehousing
b. wholesaling
c. retailing
d. franchising
e. showrooming
e. showrooming
Which wholesaler channel function helps reduce the inventory holding costs & risks of suppliers & customers?
a. showrooming
b. assortment building
c. warehousing
d. financing
e. transporting
c. warehousing
Which of the following channel functions of wholesalers is demonstrated when a buyer receives quicker delivery bc wholesalers are located closer than are producers?
a. buying & assortment building
b. financing
c. transportation
d. risk bearing
e. warehousing
c. transportation
______ are the largest group of wholesalers & can be divided into 2 broad types of wholesalers: full-service & limited-service.
a. brokers
b. retailers
c. agent wholesalers
d. merchant wholesalers
e. manufacturers’ agents
d. merchant wholesalers
When compared to merchant wholesalers, brokers & agents _____.
a. perform greater functions
b. do not take title to goods
c. deal only in services & not products
d. do not engage in any negotiation of wholesale deals
e. rarely specialize in one product category or customer type
b. do not take title to goods
A ______ brings buyers & sellers together & assists in negotiations.
a. distributor
b. broker
c. retailer
d. manufacturer
e. supplier
b. broker
_______ represent buyers or sellers on a more permanent basis than brokers.
a. distributors
b. franchise
c. agents
d. retailers
e. manufacturers
c. agents
Jacob works in a wholesale business which specializes in industrial goods needed in automobile industries. J’s job involves locating & contacting potential buyers & sellers & facilitating the negotiation process. Which of the following, if true, would strengthen the argument that J works as an agent & not as a merchant wholesaler?
a. J runs an independently-owned business
b. J is an employee of an organization producing automobiles
c. J represents his company but is not liable for any damage or low-quality goods
d. J works in a highly specialized market & does not venture into other product categories
e. J provides a full set of services ranging from locating sellers to delivering goods
c. Jacob represents his company but is not liable for any damaged or low-quality goods
HW, an electronics wholesaling firm, provides many services to customers including buying, storing, & transporting expensive & delicate electronics equipment. HW takes title of ownership to all goods that the firm handles. HW is most likely a(n) ______.
a. wholesaling broker
b. merchant wholesaler
c. agent wholesaler
d. manufacturer’s agent
e. manufacturer’s representative
b. merchant wholesaler
According to the text, today’s large & progressive wholesalers have successfully reacted to rising costs by _____.
a. relocating to low-rent, low-tax areas
b. investing in information technology systems
c. eliminating the need for brokers & agents
d. increasing customer service responsibilities
e. reducing promotional & personal selling activities
b. investing in information technology systems