Download MKTG 406 “CONCEPT QUIZ” POOL [From MKTG 300 “PLACE

MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
Marketing Channels (Ch. 13 MKTG 300 Text)
MULTIPLE CHOICE
1.
A _____ is a business structure of interdependent organizations that reaches from the
point of product origin to the consumer.
a. facilitating agency or place member
b. marketing mix intermediary
c. selective distribution channel
d. marketing channel or channel of distribution
e. transportation channel or channel of movement
ANS: D
This is the definition of a marketing channel, also called the channel of distribution.
PTS: 1
REF: 201
KEY: CB&E Model Distribution
OBJ: 13-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
2.
Jones Soda is positioned as the anti-Coke. In the early years, few mainstream retailers
sold Jones Soda. Fans had to get their Jones fix in surf shops, tattoo parlors, and bookstores, adding to the
brand’s mystique. Jones Soda used its _____ to create a competitive advantage.
a. channel ascendancy
b. distribution channel
c. channel conflict
d. channel focus
e. vertical integration
ANS: B
Its unusual retail venues added to the brand’s mystique.
PTS: 1
REF: 201
KEY: CB&E Model Distribution
OBJ: 13-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
3.
Kayak.com is a company that allows customers to efficiently search databases to find the
best airline and hotel deals all over the Web. Kayak does not make bookings but rather provides
recommendations for the best travel plans. Travel providers pay Kayak a commission when customers
click through to their sites. Kayak.com, travelers, the airlines, and the hotels are all part of a:
a. facilitating agency
b. marketing mix intermediary
c. selective promotion channel
d. marketing channel or channel of distribution
e. transportation channel or channel of movement
ANS: D
A marketing channel is a business structure of interdependent organizations that reaches from the point of
product origin to the consumer.
PTS: 1
REF: 201
KEY: CB&E Model Distribution
4.
OBJ: 13-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
Marketing channels can achieve economies of scale through:
1
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
a.
b.
c.
d.
e.
overcoming spatial discrepancies
contact expertise
specialization and division of labor
overcoming temporal discrepancies
overcoming discrepancies of quantity
ANS: C
The concept of specialization and division of labor involves breaking down a complex task into smaller,
simpler ones and allocating them to specialists, creating greater efficiency and lower average production
costs.
PTS: 1
REF: 202
KEY: CB&E Model Distribution
OBJ: 13-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
5.
Distribution channels aid in overcoming barriers to exchange that are created in the
production process by overcoming all of the following types of discrepancies EXCEPT:
a. possession
b. assortment
c. quantity
d. spatial
e. temporal
ANS: A
Channels facilitate the end goal of possession of the goods, but they do not help to overcome a
discrepancy of possession.
PTS: 1
REF: 202
KEY: CB&E Model Distribution
OBJ: 13-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
6.
A discrepancy of _____ is the difference between the amount of product produced and
the amount an end user wants to buy.
a. space
b. quantity
c. assortment
d. accumulation
e. possession
ANS: B
This is the definition of the discrepancy of quantity.
PTS: 1
REF: 202
KEY: CB&E Model Distribution
OBJ: 13-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
7.
Kraft Foods produces millions of packages of Chips Ahoy cookies each year, but
consumers only want to purchase one package at a time. This difference between the amount Kraft
produces and the amount a consumer wants to buy is referred to as a:
a. discrepancy of quantity
b. discrepancy of assortment
c. spatial discrepancy
d. temporal discrepancy
e. discrepancy of possession
2
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
ANS: A
A discrepancy of quantity is the difference between the amount of product produced and the amount an
end user wants to buy.
PTS: 1
REF: 202
KEY: CB&E Model Distribution
OBJ: 13-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
8.
Which of the following is the lack of all the items a customer needs to receive full
satisfaction from a product or products?
a. Discrepancy of assortment
b. Discrepancy of quantity
c. Spatial discrepancy
d. Temporal discrepancy
e. Discrepancy of possession
ANS: A
This is the definition of the assortment discrepancy.
PTS: 1
REF: 202-203
KEY: CB&E Model Distribution
OBJ: 13-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
9.
McKesson Wholesalers provides healthcare products to pharmacies. It purchases
bandages, gauze, antibacterial cream, and ointments from a variety of different manufacturers and resells
them to pharmacies so that many of the items a customer might need for a cut will be available in the
store. McKesson is aiding consumers by overcoming a:
a. spatial discrepancy
b. discrepancy of quantity
c. discrepancy of assortment
d. demand discrepancy
e. discrepancy of possession
ANS: C
A manufacturer may only produce one product, yet additional products may be required to actually use
the first product. This creates a discrepancy of assortment.
PTS: 1
REF: 202-203
KEY: CB&E Model Distribution
OBJ: 13-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
10.
Certified Grocers Midwest, Inc., the Chicago-based grocery wholesale cooperative,
provides all kinds of meats, cereals, canned and fresh fruits and vegetables, beauty aids, healthcare items,
and pet products to the supermarkets in its channel. Certified Grocers is aiding consumers by overcoming:
a. spatial discrepancy
b. discrepancy of quantity
c. discrepancy of assortment
d. demand discrepancy
e. discrepancy of possession
ANS: C
By providing the central buying function on behalf of its customers, Certified Grocers overcomes the
discrepancy of assortment and is able to offer many different brands of similar items.
3
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
PTS: 1
REF: 202-203
KEY: CB&E Model Distribution
OBJ: 13-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
11.
A(n) _____ discrepancy is created when a product is produced but a consumer is not
ready to purchase it.
a. quantity
b. supply
c. possession
d. temporal
e. assortment
ANS: D
This is the definition of a temporal discrepancy.
PTS: 1
REF: 203
KEY: CB&E Model Distribution
OBJ: 13-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
12.
Cutter & Buck is a high-end fashion sportswear company. Even though swimwear is a
product category that does not sell year-round, its sales remain steady all year because Cutter & Buck
sells to wholesale distributors that stock the product. Its wholesale distributors are helping to overcome
a(n) _____ discrepancy.
a. assortment
b. spatial
c. possession
d. quantity
e. temporal
ANS: E
A temporal discrepancy is created when a product is produced but a consumer is not ready to purchase it.
PTS: 1
REF: 203
KEY: CB&E Model Distribution
OBJ: 13-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
13.
Vicobello is a major manufacturer of outdoor fountains that are popular in gardens. Even
though fountains represent a product category that does not sell year-round due to inclement weather,
Vicobello’s sales remain steady all year because it sells to wholesale distributors that stock the product.
Its wholesale distributors are primarily helping to overcome a(n) _____ discrepancy.
a. assortment
b. spatial
c. possession
d. quantity
e. temporal
ANS: E
A temporal discrepancy is created when a product is produced but a consumer is not ready to purchase it.
Several of those discrepancies are being partially overcome, but the main one is temporal.
PTS: 1
REF: 203
KEY: CB&E Model Distribution
OBJ: 13-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
4
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
14.
The difference between the location of a producer and the location of widely scattered
markets represents a(n) _____ discrepancy.
a. spatial
b. temporal
c. assortment
d. quantity
e. ownership
ANS: A
This is the definition of a spatial discrepancy.
PTS: 1
REF: 203
KEY: CB&E Model Distribution
OBJ: 13-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
15.
YKK slide fasteners (zippers) are made in Macon, Georgia, yet manufactures all over the
world use zippers to manufacture, clothes, luggage, shoes, and other items. Wholesalers around the world
primarily help to overcome a(n) _____ discrepancy.
a. creation
b. temporal
c. assortment
d. spatial
e. ownership
ANS: D
Markets are often scattered over large geographic regions, yet a manufacturer may only have one location
in the country. This creates a spatial discrepancy.
PTS: 1
REF: 203
KEY: CB&E Model Distribution
OBJ: 13-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
16.
Marketing channels make distribution simpler by reducing the number of transactions
required to get products from manufacturers to consumers. This is called:
a. forward integration
b. contact efficiency
c. elimination of temporal discrepancies
d. sorting
e. reciprocity
ANS: B
Marketing channels provide contact efficiencies by reducing the number of stores customers must shop in
to complete their purchases.
PTS: 1
REF: 203
KEY: CB&E Model Distribution
OBJ: 13-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
17.
When an intermediary in the channel of distribution owns the merchandise and controls
the terms of the sale, this is referred to as:
a. complete control
b. exclusive distribution
c. taking title
d. contact efficiency
5
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
e. economies of scale
ANS: C
This is the definition of taking title.
PTS: 1
REF: 204
KEY: CB&E Model Distribution
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
18.
The major characteristic that is used to differentiate among types of intermediaries is
whether they:
a. install exchange barriers such as location, time, and quantity
b. create specialization of labor
c. create economies of scale
d. take title to the products they sell
e. raise profit margins for independent middlemen
ANS: D
Taking title means they own the merchandise and control the terms of the sale.
PTS: 1
REF: 204
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
19.
Retailers and merchant wholesalers are examples of intermediaries that:
take title to a product
create temporal and spatial discrepancies
use consumer promotions
do not benefit from any economies of scale
are accurately described by all of these statements
ANS: A
Retailers and merchant wholesalers own the merchandise and control the terms of its ultimate sale.
PTS: 1
REF: 204
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
20.
Which of the following intermediaries sell mainly to consumers?
Retailers
Merchant wholesalers
Agents
Brokers
Specialists
ANS: A
Retailers are firms that sell mainly to consumers.
PTS: 1
REF: 204
KEY: CB&E Model Distribution
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
21.
A(n) _____ is an institution that buys goods from manufacturers, takes title to these
goods, and resells them to businesses, government agencies, and/or other wholesalers or retailers.
a. merchant wholesaler
b. agent
6
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
c. drop shipper
d. channel cooperative
e. marketing cooperative
ANS: A
This is the definition of a merchant wholesaler.
PTS: 1
REF: 204
KEY: CB&E Model Distribution
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
22.
W.W. Grainger, Inc., is one of the world’s largest business-to-business distributors of
equipment, component parts, and supplies in the United States and Canada. It has ownership title to over
220,000 products, which are stocked in one national and nine regional warehouses to guarantee product
availability and quick service to the many manufacturers who are its customers. W.W. Grainger is an
example of a(n):
a. agent or broker
b. merchant wholesaler
c. retailer
d. consumer market
e. hypermarket intermediary
ANS: B
A merchant wholesaler is an institution that buys goods from manufacturers and resells them to other
wholesalers and retailers. Merchant Wholesalers receive and take title to the goods, own warehouses, and
ship the products they sell.
PTS: 1
REF: 204
KEY: CB&E Model Distribution
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
23.
Long Island Lefty provides retailers and other businesses with the latest and the best
products for left-handed consumers. It buys all types of products from a variety of manufacturers and
stores the merchandise in its New York warehouse until purchased by buyers. Long Island Lefty does not
sell to end users and is an example of a(n):
a. agent or broker
b. merchant wholesaler
c. retailer
d. consumer market
e. hypermarket intermediary
ANS: B
A merchant wholesaler is an institution that buys goods from manufacturers and resells them to other
wholesalers and retailers. Merchant wholesalers receive and take title to the goods, own warehouses, and
ship the products they sell.
PTS: 1
REF: 204
KEY: CB&E Model Distribution
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
24.
Agents and brokers:
a. have a great deal of control and risk invested in the goods
b. only represent manufacturers in sales situations
c. have a great deal of input on the terms of the sale
7
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
d. generally are on salary with the manufacturer
e. do not take title to merchandise
ANS: E
Agents and brokers represent retailers, wholesalers, or manufacturers in sales situations, but the agent or
broker generally has little input into the terms of the sale. Agents and brokers generally receive a fee or
commission and do not take title, control, or risk concerning the merchandise.
PTS: 1
REF: 204
KEY: CB&E Model Distribution
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
25.
_____ are intermediaries who facilitate the sales of a product from producer to end user
by representing retailers, wholesalers, or manufacturers and providing little input as to the terms of the
sale.
a. Marketing facilitators
b. Channel cooperatives
c. Agents and brokers
d. Merchant wholesalers
e. Channel functionaries
ANS: C
Agents and brokers simply facilitate the sale of a product from producer to end user.
PTS: 1
REF: 204
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
26.
Generally, _____ determine what type of intermediary a manufacturer should use:
product characteristics, buyer consideration, and market characteristics
only internal environmental characteristics
competitive conditions and government regulations
all controllable marketing factors
only noncontrollable environmental factors
ANS: A
The correct answer combines both internal and external elements. The internal elements can be controlled
by the manufacturer, while external environmental factors cannot.
PTS: 1
REF: 204
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
27.
The three basic functions channel intermediaries perform are:
transactional, logistical, and facilitating
contacting, negotiating, and ownership
promoting, distributing, and bulk-breaking
assorting, accumulating, and allocating
financing, mediating, and storing
ANS: A
See Exhibit 13.2.
PTS: 1
REF: 205
KEY: CB&E Model Distribution
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
8
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
a.
b.
c.
d.
e.
28.
Which of the following is a transactional function performed by intermediaries?
Sorting
Researching
Risk taking
Physically distributing
Storing
ANS: C
Transactional functions include contacting and promoting, negotiating, and risk taking.
PTS: 1
REF: 205
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
29.
Transactional channel functions include all of the following activities EXCEPT:
contacting buyers
promoting the products to be sold
taking the risks associated with product inventories
negotiating the sale
physical distribution and sorting
ANS: E
See Exhibit 13.2.
PTS: 1
REF: 205
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
30.
Which of the following is a logistical function performed by intermediaries?
Sorting
Negotiating
Financing
Risk taking
All of these choices
ANS: A
Logistical functions include physically distributing, storing, and sorting products.
PTS: 1
REF: 205
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
31.
Marketing channels perform all of the following logistical activities EXCEPT:
sorting
storing
physically distributing
risk taking
breaking bulk
ANS: D
Risk taking is a transactional activity. See Exhibit 13.2
PTS: 1
REF: 205
KEY: CB&E Model Distribution
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
9
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
a.
b.
c.
d.
e.
32.
All of the following are sorting activities EXCEPT:
assorting
accumulation
sorting out
allocation
possession
ANS: E
See Exhibit 13.2.
PTS: 1
REF: 205
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
33.
Breaking bulk at the wholesale level is called:
allocating
accumulation
storing
downsizing
grading
ANS: A
Allocating is breaking a homogeneous supply into smaller and smaller lots (“breaking bulk”). See Exhibit
13.2.
PTS: 1
REF: 205
KEY: CB&E Model Distribution
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
34.
With respect to the sorting logistical function, _____ is the combining of similar stocks
into a larger homogeneous supply.
a. sorting out
b. accumulating
c. allocating
d. breaking bulk
e. assorting
ANS: B
Accumulating is combining similar stocks into a larger homogeneous supply.
PTS: 1
REF: 205
KEY: CB&E Model Distribution
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
35.
Which of the following are examples of facilitating functions performed by wholesaling
intermediaries?
a. Sorting and storing
b. Risk taking and promotion
c. Assorting, accumulating, grading, and allocating
d. Researching and financing
e. Financial management and storing
ANS: D
See Exhibit 13.2.
10
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
PTS: 1
REF: 205
KEY: CB&E Model Distribution
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
36.
_____ is the efficient and cost-effective forward and reverse flow and storage of goods,
services, and related information into, through, and out of channel member companies.
a. Disintermediation
b. Logistics
c. Materials handling
d. Intermodal transportation
e. Contract logistics
ANS: B
This is the definition of logistics.
PTS: 1
REF: 205
KEY: CB&E Model Distribution
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
37.
_____ describes the process of strategically managing the efficient flow and storage of
raw materials, in-process inventory, and finished goods from point of origin to point of consumption.
a. Contract logistics
b. Logistics
c. Cross-docking
d. Disintermediation
e. Channel facilitation
ANS: B
This describes the logistics function.
PTS: 1
REF: 205
KEY: CB&E Model Distribution
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
38.
Serenity is a manufacturer of outdoor fountains that are popular in gardens. Even though
fountains represent a product category that does not sell year-round due to inclement weather, Serenity’s
sales remain steady all year because it sells to wholesale distributors that stock the product. Serenity sells
to wholesale distributors that perform _____ functions for the manufacturer.
a. financial
b. transactional
c. facilitating
d. logistical
e. promotional
ANS: D
Storing for later sale to retailers is a logistical function. See Exhibit 13.2.
PTS: 1
REF: 205
KEY: CB&E Model Distribution
OBJ: 13-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
39.
One configuration of a marketing channel entails producers selling to consumers with no
intermediaries involved. This is called a:
a. limited distribution system
11
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
b.
c.
d.
e.
conventional channel
vertical marketing system
reciprocal channel
direct channel
ANS: E
Producers use the direct channel to sell directly to consumers.
PTS: 1
REF: 206
KEY: CB&E Model Distribution
OBJ: 13-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
40.
The only way that Jim Keeler in New Mexico can get a box of Carolyn Popwell’s Festive
Holiday Truffles from Washington is to order it through the mail. Popwell, who makes the candy by
hand, uses a(n) _____ exclusively.
a. exclusive distribution system
b. conventional channel
c. vertical marketing system
d. reciprocal channel
e. direct channel
ANS: E
The manufacturer sells directly to the consumer.
PTS: 1
REF: 206
KEY: CB&E Model Distribution
OBJ: 13-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
41.
All of the following are typical channel members in marketing channels for consumer
products EXCEPT:
a. retailers
b. agent/brokers
c. industrial distributors
d. producers
e. wholesalers
ANS: C
Industrial distributors are used for distributing industrial, not consumer, products. See also Exhibit 13.3
and Exhibit 13.4.
PTS: 1
REF: 206-207
KEY: CB&E Model Distribution
OBJ: 13-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
42.
Vutek manufactures printing machines used to print high-resolution graphics for
billboards, bus cards, banners, and posters. For distribution, you would expect Vutek to use a:
a. network of facilitating agents
b. horizontally integrated channel
c. reciprocal channel
d. direct channel
e. vertical marketing system
ANS: D
Direct channels are typical in business and industrial markets.
12
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
PTS: 1
REF: 207
KEY: CB&E Model Distribution
OBJ: 13-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
43.
Centigon is a manufacturer of customized armored vehicles for military, private,
presidential, and commercial uses. Each armored vehicle is designed to deliver security on the road while
also achieving optimum levels of performance and comfort. For distribution, you would expect Centigon
to use a:
a. network of facilitating agents
b. horizontally integrated channel
c. reciprocal channel
d. direct channel
e. vertical marketing system
ANS: D
For customized business products requiring detailed specifications, the most common channel structure is
the direct channel because of the amount of interaction and direct communication required.
PTS: 1
REF: 207
KEY: CB&E Model Distribution
OBJ: 13-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
44.
Companies selling standardized items of moderate or low value to other businesses (not
to consumers) often use:
a. retailers
b. industrial distributors
c. wholesalers
d. bulk breakers
e. industrial resellers
ANS: B
In many ways, an industrial distributor is like a supermarket for organizations.
PTS: 1
REF: 207
KEY: CB&E Model Distribution
OBJ: 13-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
45.
_____ distribution occurs when a producer selects two or more different channels to
distribute the same products to target markets.
a. Selective
b. Intensive
c. Dual
d. Contractual
e. Cumulative
ANS: C
Dual distribution (multiple distribution), is the use of two (or more) channels to distribute the same
product to target markets.
PTS: 1
REF: 208
KEY: CB&E Model Distribution
OBJ: 13-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
13
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
46.
Customers can purchase Hewlett-Packard computers from retail stores like Best Buy and
Office Depot, online directly from HP, and through various catalogs. HP is using a(n) _____ distribution
arrangement.
a. intensive
b. multiple
c. exclusive
d. cumulative
e. aggregated
ANS: B
Multiple distribution occurs when a producer selects two or more different channels to distribute the same
products to target markets.
PTS: 1
REF: 208
KEY: CB&E Model Distribution
OBJ: 13-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
47.
Which of the following enables a company to use another manufacturer’s already
established channel?
a. Strategic channel alliances
b. Relationship channels
c. Reverse channels
d. Multiple distribution systems
e. Nontraditional channelization
ANS: A
Alliances are used most often when the creation of marketing channel relationships may be too expensive
and time-consuming.
PTS: 1
REF: 208
KEY: CB&E Model Distribution
OBJ: 13-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
48.
Selfridges is the second-largest department store in Great Britain. It works with House of
Frasier, one of its competitors, to reduce operating costs by sharing channels of distribution to ship goods
from 1,500-plus suppliers. Selfridges and House of Frasier are engaged in:
a. vertical conflict
b. an integrated supply chain
c. a strategic channel alliance
d. an information-based distribution channel
e. a distribution cooperative
ANS: C
A strategic channel alliance is a cooperative agreement between businesses to use each other’s alreadyestablished distribution channels.
PTS: 1
REF: 208
KEY: CB&E Model Distribution
OBJ: 13-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
49.
When Delphi-Grundig, a manufacturer of state-of-the-art car radios, decided to expand its
marketing efforts into countries in which its products are not currently available, it did not have the time
or resources to spend on developing new channels of distribution. Delphi-Grundig should consider a(n):
a. industrial distributor
14
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
b.
c.
d.
e.
franchising system
reverse channel
strategic channel alliance
channel cooperative
ANS: D
Strategic channel alliances use another manufacturer’s already-established channel and are used when the
creation of marketing channel relationships may be expensive and time-consuming.
PTS: 1
REF: 208
KEY: CB&E Model Distribution
OBJ: 13-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
50.
Which of the following statements concerning how market factors affect channel
decisions is true?
a. Industrial customers tend to buy in larger quantities and require more customer service.
b. Geographically concentrated target markets should be served with an indirect sales force.
c. Widely dispersed markets require fewer intermediaries.
d. New firms in extremely competitive markets will be more successful if they use indirect
channels.
e. A very large market requires fewer intermediaries.
ANS: A
Industrial customers’ buying habits are very different from those of consumers, and they tend to buy in
larger quantities and require more customer service.
PTS: 1
REF: 209
KEY: CB&E Model Distribution
OBJ: 13-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Evaluation
51.
Canesta Company has developed a virtual keyboard out of light to be used with cell
phones and PDAs. The product beams an image of a keyboard on a desk, allowing the user to type on the
image. The words are picked up by the user’s digital device. When introduced to the market, the device
will sell for less than $50. If, in choosing its channel, Canesta is most concerned about the life cycle of the
device, then its choice of channels will largely be influenced by:
a. factors of production
b. customer characteristics
c. ownership factors
d. product factors
e. market factors
ANS: D
Stage of the product life cycle is a product factor.
PTS: 1
REF: 209
KEY: CB&E Model Distribution
OBJ: 13-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
52.
Canesta Company has developed a virtual keyboard out of light to be used with cell
phones and PDAs. The product beams an image of a keyboard on a desk, allowing the user to type on the
image. The words are picked up by the user’s digital device. When introduced to the market, the device
will sell for less than $50. If, in choosing its channel, Canesta is most concerned about its lack of
financial, managerial, and marketing resources to support the product’s introduction, then its choice of
channels will largely be influenced by:
15
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
a.
b.
c.
d.
e.
factors of ownership
market factors
producer factors
product factors
internal environmental characteristics
ANS: C
Financial, managerial, and marketing issues are producer factors.
PTS: 1
REF: 209
KEY: CB&E Model Distribution
OBJ: 13-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
53.
_____ is distribution aimed at maximum market coverage. It is used for many
convenience goods and supplies that need to be available in every outlet where the potential customer
might want to buy them.
a. Selective distribution
b. Channel franchising
c. Intensive distribution
d. Horizontal channeling
e. Exclusive distribution
ANS: C
The objective of intensive distribution is to achieve mass-market selling.
PTS: 1
REF: 210
KEY: CB&E Model Distribution
OBJ: 13-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
54.
Chewing gum and soft drinks are sold in grocery stores, service stations, convenience
stores, drugstores, discount stores, and motel vending machines. This is a an example of a(n) _____
distribution strategy.
a. exclusive
b. reciprocal
c. selective
d. horizontal
e. intensive
ANS: E
Intensive distribution is distribution aimed at maximum market coverage. It is used for many convenience
goods that need to be available in every outlet where the potential customer might want to buy them.
PTS: 1
REF: 210
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 13-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
55.
Which of the following manufacturers most likely uses intensive distribution?
M&M’s candies
Jen-Weld windows
Calloway golf clubs
Rollerblade in-line skates
Smith & Wesson firearms
ANS: A
16
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
Only M&M’s candies are a low-value product that is frequently purchased. Low-value products are
commonly sold in a variety of locations.
PTS: 1
REF: 210
KEY: CB&E Model Distribution
OBJ: 13-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
56.
_____ distribution is achieved by screening dealers to eliminate all but a few in any
single geographic area. Shopping goods and some specialty products that consumers are willing to search
for are sold this way.
a. Intensive
b. Selective
c. Exclusive
d. Dual
e. Controlled
ANS: B
This is a description of selective distribution.
PTS: 1
REF: 210
KEY: CB&E Model Distribution
OBJ: 13-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
57.
Husqvarna Viking manufactures sewing machines. The company carefully screens its
dealers to ensure a quality dealer image and service ability. Only a few dealers are chosen in any single
geographic area. This is an example of _____ distribution.
a. dual
b. intensive
c. exclusive
d. selective
e. controlled
ANS: D
Selective distribution is achieved by screening dealers to eliminate all but a few in any single geographic
area. Shopping goods and some specialty goods that consumers are willing to search for are sold by
selective distribution.
PTS: 1
REF: 210
KEY: CB&E Model Distribution
OBJ: 13-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
58.
Canesta Company has developed a virtual keyboard out of light to be used with cell
phones and PDAs. The product beams an image of a keyboard on a desk, allowing the user to type on the
image. The words are picked up by the user’s digital device. When introduced to the market, the device
will sell for less than $50. What level of distribution intensity should the company use?
a. Exclusive
b. Controlled
c. Extensive
d. Reciprocal
e. Selective
ANS: E
Screening dealers will promote a quality image for the product. Price is also a factor in its level of
distribution intensity. It is not a convenience good.
17
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
PTS: 1
REF: 210
KEY: CB&E Model Distribution
OBJ: 13-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
59.
Polo brand apparel is only available in fine department stores or from Polo retail stores.
Which distribution strategy has Polo adopted?
a. Extensive
b. Intensive
c. Premium
d. Selective
e. Pioneering
ANS: D
Selective distribution is achieved by screening dealers to eliminate all but a few in any single geographic
area. Shopping goods and some specialty goods that consumers are willing to search for are sold by
selective distribution.
PTS: 1
REF: 210
KEY: CB&E Model Distribution
OBJ: 13-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
60.
Which level of distribution intensity is the most restrictive and entails establishing only
one or a few dealers within a given geographic area?
a. Selective
b. Intensive
c. Exclusive
d. Dual
e. Premium
ANS: C
This is the definition of exclusive distribution.
PTS: 1
REF: 211
KEY: CB&E Model Distribution
OBJ: 13-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
61.
Rolex is an expensive brand of watches. The company has a policy of only having one or
two dealers within a given large geographic area. Buyers of Rolex watches will travel extensively to
acquire just the right watch. This is an illustration of which level of distribution intensity?
a. Exclusive
b. Intensive
c. Selective
d. Reciprocal
e. Premium
ANS: A
Extensive distribution, the most restrictive form of distribution, entails establishing one or a few dealers
within a given geographic area. Because buyers need to be willing to search or travel to acquire the
product, this form of distribution is limited to consumer specialty goods, a few shopping goods, and major
industrial equipment.
PTS: 1
REF: 211
KEY: CB&E Model Distribution
OBJ: 13-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
18
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
62.
Caterpillar, the manufacturer of tractors and other earthmoving equipment, has an
extremely high market share, which means customers seek the dealers out regardless of where they are.
There are approximately 50 Caterpillar dealers in the United States––one in each state. From this
information, you can surmise that Caterpillar uses _____ distribution.
a. selective
b. premium
c. intensive
d. exclusive
e. inclusive
ANS: D
Exclusive distribution, the most restrictive form of distribution, entails establishing one or a few dealers
within a given geographic area. Because buyers need to be willing to search or travel to acquire the
product, this form of distribution is limited to consumer specialty goods, a few shopping goods, and major
industrial equipment.
PTS: 1
REF: 211
KEY: CB&E Model Distribution
OBJ: 13-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
63.
Which of the following types of distribution channel relationships is considered to be
temporary?
a. Arm’s length
b. Functional
c. Cooperative
d. Hierarchical
e. Integrated
ANS: A
These types of relationships are often referred to as “arm’s-length” relationships due to the companies’
unwillingness or lack of ability to develop a closer type of relationship.
PTS: 1
REF: 211
KEY: CB&E Model Distribution
OBJ: 13-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
64.
This summer, college student Pat is planning on selling kites at Panama City Beach. He
has found some suppliers and has preordered all of the kites he thinks he can sell this summer. What type
of a distribution channel relationship does Pat have with his suppliers?
a. Arm’s length
b. Functional
c. Cooperative
d. Hierarchical
e. Integrated
ANS: A
The arm’s-length relationship is considered to be temporary.
PTS: 1
REF: 211
KEY: CB&E Model Distribution
OBJ: 13-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
19
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
65.
With the _____ channel relationship, both parties retain their independence and pursue
their own interests while attempting to benefit from the goods or services provided by the other.
a. arm’s-length
b. functional
c. cooperative
d. hierarchical
e. integrated
ANS: A
These types of relationships are often referred to as “arm’s-length” relationships due to the companies’
unwillingness or lack of ability to develop a closer type of relationship.
PTS: 1
REF: 211
KEY: CB&E Model Distribution
OBJ: 13-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
66.
_____ distribution channel relationships are situations where one company, or several
companies acting as one, performs all channel functions.
a. Arm’s-length
b. Functional
c. Cooperative
d. Hierarchical
e. Integrated
ANS: E
Integrated relationships are tightly connected, with linked processes across and between firm boundaries
and high levels of trust and interfirm commitment.
PTS: 1
REF: 211
KEY: CB&E Model Distribution
OBJ: 13-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
67.
One of the earliest, largest, and most famous examples of vertical integration was the
Carnegie Steel Company. The company controlled not only the mills where the steel was manufactured
but also the mines where the iron ore was extracted, the coal mines that supplied the coal, the ships that
transported the iron ore, and the railroads that transported the coal to the factory. Carnegie Steel had a(n)
_____ channel relationship.
a. arm’s-length
b. functional
c. cooperative
d. hierarchical
e. integrated
ANS: E
Integrated distribution channel relationships are situations where one company, or several companies
acting as one, performs all channel functions.
PTS: 1
REF: 211
KEY: CB&E Model Distribution
OBJ: 13-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
68.
_____ channel relationships include nonequity agreements such as franchising and
licensing as well as equity-based joint ventures and strategic alliances.
a. Arm’s-length
20
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
b.
c.
d.
e.
Functional
Cooperative
Hierarchical
Integrated
ANS: C
Cooperative relationships are between companies that take the form of informal partnership with
moderate levels of trust and information sharing as needed to further each company’s goals.
PTS: 1
REF: 211
KEY: CB&E Model Distribution
OBJ: 13-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
69.
Which channel relationship is less ambiguous than an arm’s-length relationship but
without the longer-term and/or capital investment required to achieve full integration?
a. Negotiated
b. Functional
c. Cooperative
d. Hierarchical
e. Intermediate
ANS: C
Cooperative relationships are between companies that take the form of informal partnership with
moderate levels of trust and information sharing as needed to further each company’s goals.
PTS: 1
REF: 211
KEY: CB&E Model Distribution
OBJ: 13-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
70.
In 1935, Howard Johnson teamed up with Reginald Sprague to establish the first modern
restaurant franchise. Their idea was to let independent operators use the same name, food, supplies, logo
and even building design in exchange for a fee. In terms of the type of channel relationships established,
this nonequity agreement would require a _____ relationship.
a. negotiated
b. functional
c. cooperative
d. hierarchical
e. segregated
ANS: C
Cooperative channel relationships include nonequity agreements such as franchising and licensing as well
as equity-based joint ventures and strategic alliances.
PTS: 1
REF: 211
KEY: CB&E Model Distribution
OBJ: 13-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
71.
Some countries, such as the Peoples Republic of China and to some extent India, require
foreign companies to form joint ventures with domestic firms in order to enter a market. This requirement
often forces technology transfers and managerial control to the domestic partner. These types of equity
agreements also require the establishment of a(n) _____ channel relationship.
a. arm’s-length
b. functional
c. cooperative
21
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
d. hierarchical
e. integrated
ANS: C
Cooperative channel relationships include nonequity agreements such as franchising and licensing as well
as equity-based joint ventures and strategic alliances.
PTS: 1
REF: 211
KEY: CB&E Model Distribution
OBJ: 13-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
72.
The capacity of a particular marketing channel member to control or influence the
behavior of other channel members is known as:
a. channel power
b. channel conflict
c. channel control
d. channel dominance
e. channel inversion
ANS: A
Channel power is a channel members’ ability to control or influence the behavior of other channel
members.
PTS: 1
REF: 212
KEY: CB&E Model Distribution
OBJ: 13-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
73.
Wal-Mart is the largest retailer in the world, and many consumer packaged-goods
manufacturers like Kraft have offices in Bentonville, Arkansas, where Wal-Mart is headquartered. WalMart has the ability to influence manufacturers to lower their prices so that it can deliver on its low-price
guarantee to consumers. Wal-Mart possesses:
a. channel influence
b. channel supremacy
c. channel power
d. channel exclusivity
e. channel clout
ANS: C
Channel power is the capacity of a particular marketing channel member to control or influence the
behavior of other channel members.
PTS: 1
REF: 212
KEY: CB&E Model Distribution
OBJ: 13-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
74.
A situation that occurs when one marketing channel member intentionally affects another
member’s behavior is called:
a. channel power
b. channel control
c. channel conflict
d. channel dominance
e. channel inversion
ANS: B
Channel control is when one channel member actually affects another.
22
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
PTS: 1
REF: 212
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 13-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
75.
A channel leader is also called a(n):
intermediary leader
channel captain
channel facilitator
distribution supervisor
channel gatekeeper
ANS: B
The channel captain is a member of a marketing channel that exercises authority and power over the
activities of other channel members.
PTS: 1
REF: 212
KEY: CB&E Model Distribution
OBJ: 13-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
76.
DeBeers sells most of the diamonds it produces to industry. The company controls over
90 percent of the market and has great power over its distributors. In its marketing channel, DeBeers
would be considered a:
a. channel authority
b. channel member
c. channel leader
d. channel gatekeeper
e. power broker
ANS: C
The channel captain is a member of a marketing channel that exercises authority and power over the
activities of other channel members. DeBeers has control over delivery, inventory, and so on.
PTS: 1
REF: 212
KEY: CB&E Model Distribution
OBJ: 13-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
77.
Johns Manville is the only manufacturer to offer a complete line of formaldehyde-free
fiberglass building insulation, which offers superior energy efficiency in hard-to-reach cathedral ceilings
and flat roof cavities; plus it is an excellent sound control for interior floors. As the only manufacturer and
patent holder of this revolutionary insulation, Johns Manville has great power over its dealers. It is an
example of a:
a. channel authority
b. channel regulator
c. channel captain
d. channel gatekeeper
e. power broker
ANS: C
A channel captain or channel leader is a member of the marketing channel that exercises authority and
power over the activities of other members in the channel.
PTS: 1
REF: 212
KEY: CB&E Model Distribution
OBJ: 13-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
23
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
78.
Channel conflict:
a. always has an adverse effect on the members of the channel
b. is not caused by ideological differences, because such differences would prevent the
members from ever operating as a channel
c. is often caused by an inability of some channel members to keep up with the changing
times
d. can appear as either internal or external
e. does not occur when multiple distribution channels are used
ANS: C
In a broad context, channel conflict can be good for a channel. It is sometimes caused by ideological
differences. It appears as vertical or horizontal.
PTS: 1
REF: 212
KEY: CB&E Model Distribution
OBJ: 13-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
79.
Almost a million fans are willing to buy subscriptions to watch Major League Baseball
(MLB) games online at MLB.com. That business is worth more than $100 million to MLB. But this
online broadcast takes those fans away from the broadcasters that pay MLB hundreds of millions of
dollars for the right to carry the games. Which of the following is likely to occur between MLB and
broadcast television?
a. Horizontal market share
b. Lateral channel takeover
c. Niche market conflict
d. Channel conflict
e. Market share conflict
ANS: D
Channel members may have conflicting goals resulting in channel conflict.
PTS: 1
REF: 212
KEY: CB&E Model Distribution
OBJ: 13-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
80.
Honda uses just-in-time manufacturing to build its Odyssey minivans. Five companies
that make component parts for the Honda Odyssey relocated to Alabama and states bordering Alabama
when Honda announced plans to build a new Odyssey manufacturing plant in Alabama. This relocation in
order to provide efficient delivery of goods indicates that Honda is a:
a. channel captain
b. horizontal integrator
c. distribution champion
d. distribution ombudsman
e. demand maverick
ANS: A
A channel captain exercises authority and power over the other channel members.
PTS: 1
REF: 212
KEY: CB&E Model Distribution
81.
OBJ: 13-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
Channel conflict that occurs among channel members on the same level is known as:
24
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
a.
b.
c.
d.
e.
primary conflict
organic conflict
internal conflict
horizontal conflict
vertical conflict
ANS: D
This is the definition of horizontal conflict, which occurs at the same level of distribution such as two or
more different wholesalers or two or more different retailers.
PTS: 1
REF: 212
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 13-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
82.
Horizontal channel conflict occurs most often when manufacturers practice:
dual or multiple distribution
trade loading
promotional pricing
direct distribution
channel distribution
ANS: A
Horizontal conflict occurs when more than one channel is used to handle the same brand.
PTS: 1
REF: 212
KEY: CB&E Model Distribution
OBJ: 13-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
83.
Goodyear tire dealers were hurt financially when Goodyear made the decision to
distribute its tires through retailers such as Sears and Walmart in addition to the exclusive dealerships it
had established. The conflict that occurred at the retail level is an example of:
a. horizontal conflict
b. trade loading
c. value-added pricing
d. exclusive distribution
e. channel partnering
ANS: A
Horizontal conflict occurs among channel members at the same level––retail in this example.
PTS: 1
REF: 212
KEY: CB&E Model Distribution
84.
as:
a.
b.
c.
d.
e.
OBJ: 13-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
Channel conflict that occurs between different levels in a marketing channel is referred to
horizontal conflict
primary conflict
vertical conflict
secondary conflict
parallel conflict
ANS: C
This describes vertical conflict, which typically occurs between the manufacturer and wholesaler or
between the manufacturer and retailer.
25
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
PTS: 1
REF: 212-213
KEY: CB&E Model Distribution
OBJ: 13-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
85.
Polo brand apparel can be purchased through fine department stores nationwide.
However, Polo apparel can also be purchased through Polo stores, which creates the potential for _____
conflict in the channel of distribution.
a. primary
b. secondary
c. horizontal
d. vertical
e. parallel
ANS: D
Vertical conflict is a channel conflict that occurs between different levels of a marketing channel.
PTS: 1
REF: 212-213
KEY: CB&E Model Distribution
OBJ: 13-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
86.
_____ is the joint effort of all channel members to create a channel that serves customers
and creates a competitive advantage.
a. Selective partnering
b. Direct distribution
c. Channel partnering
d. Intensive integration
e. Closed channel distribution
ANS: C
This is the definition of channel partnering, which is also called channel cooperation.
PTS: 1
REF: 213
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 13-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
87.
_____ occurs when products are distributed through unauthorized marketing channels.
Black marketing
Countertrading
Channel malfeasance
Gray marketing
Reverse channeling
ANS: D
These channels include unauthorized channels intermediaries.
PTS: 1
REF: 213-214
KEY: CB&E Model Distribution
OBJ: 13-7
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
88.
Many large champagne sellers do their own importing and desire to maintain independent
price points in different markets. Thus, a bottle of champagne might cost $45 in the United States, while
the same bottle might be only 20 euros (about $30) in France. It is often profitable to buy the wine in
Europe, typically from an unauthorized distributor, and resell it in the United States. U.S. wine merchants
who do so would be engaging in:
26
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
a.
b.
c.
d.
e.
black marketing
channel malfeasance
countertrading
reverse channeling
gray marketing
ANS: E
Gray marketing occurs when products are distributed through unauthorized marketing channels.
PTS: 1
REF: 213-214
KEY: CB&E Model Distribution
OBJ: 13-7
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
89.
It seems counterintuitive, but Jon Jordan, CEO of Southern Audio Services (SAS) in
Baton Rouge, wants to curb the number of dealers who are selling his car speakers. Jordan understands
that he can’t handpick all his vendors, but he never expected the rise in unauthorized dealers that came
with the e-commerce boom. When Jordan decided to look for the SAS name on eBay, he came up
thousands of sellers. These eBay sellers are engaging in:
a. black marketing
b. channel malfeasance
c. countertrading
d. reverse channeling
e. gray marketing
ANS: E
Gray marketing occurs when products are distributed through unauthorized marketing channels.
PTS: 1
REF: 213-214
KEY: CB&E Model Distribution
OBJ: 13-7
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
90.
One thing that sets service distribution apart from traditional manufacturing distribution
is that in a service environment:
a. production and consumption are simultaneous
b. production setbacks can be remedied by using safety stock
c. faster modes of transportation can offset service production problems
d. service distribution benefits are more tangible
e. service distribution has a narrower focus
ANS: A
In a service environment, services are produced and consumed at the same time.
PTS: 1
REF: 214
KEY: CB&E Model Distribution
OBJ: 13-8
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
91.
Which of the following businesses is most likely to have a problem with distribution
because production and consumption of the product occurs simultaneously?
a. A company that manufacturers bicycles
b. A hair salon
c. A retailer that sells mattresses
d. A soft drink bottler
e. A wholesaler that specializes in athletic equipment
ANS: B
27
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
A hair salon is the only service listed.
PTS: 1
REF: 214
KEY: CB&E Model Distribution
OBJ: 13-8
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
92.
You are responsible for physical distribution of your company’s service and should focus
on:
a. ensuring the intangibility of the service so that physical distribution becomes a less
important factor
b. minimizing wait times, managing service capacity, and providing delivery through
distribution channels
c. making sure production and consumption are simultaneous
d. setting quality standards, choosing faster transportation modes, and using safety stock
e. customer-oriented order processing and inventory control
ANS: B
Service industries are customer oriented and must manage intangible services by minimizing wait times,
managing service capacity, and providing delivery through distribution channels.
PTS: 1
REF: 214
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 13-8
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
93.
Which of the following is a main area of concern for service distribution?
Minimizing wait times
Maximizing sales
Creating a one-to-one relationship with customers
Providing easy to use Internet help
Reducing risk
ANS: A
The other two areas are managing service capacity, and providing delivery through distribution channels.
PTS: 1
REF: 214
KEY: CB&E Model Distribution
OBJ: 13-8
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
28
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
Supply Chain Management (Ch. 14 MKTG 300 Text)
MULTIPLE CHOICE
1.
The connected chain of all of the business entities, both internal and external to the
company, that perform or support the logistics function is known as the:
a. channel of distribution
b. intermediary link
c. physical distribution integration
d. reseller network
e. supply chain
ANS: E
A company’s supply chain includes all of the companies involved in all of the upstream and downstream
flows of products, services, finances, and information, from initial suppliers (point of origin) to the
ultimate customer (point of consumption).
PTS: 1
REF: 217
KEY: CB&E Model Distribution
OBJ: 14-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
2.
_____ coordinates and integrates all of the activities performed by channel members into
a seamless process, from the source to the point of consumption, resulting in enhanced customer and
economic value.
a. Yield management
b. Channel power
c. Materials handling
d. Supply chain management
e. Physical distribution
ANS: D
This is the definition of supply chain management.
PTS: 1
REF: 217
KEY: CB&E Model Distribution
OBJ: 14-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
3.
Peachtree Windows does not make a window until an order is received. It can promise
delivery in five working days because of the excellent relationships it has established with its suppliers.
The partnering relationship that Peachtree Windows has established with its suppliers indicates the use of:
a. supply chain management
b. yield management
c. channel networks
d. horizontal marketing channels
e. intensive distribution strategy
ANS: A
Supply chain management coordinates and integrates all the activities from raw materials to product
consumption.
29
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
PTS: 1
REF: 217
KEY: CB&E Model Distribution
OBJ: 14-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
4.
A large automotive after-market business wanted to improve its current situation, which
is characterized by excessive inventory, incomplete information, high logistics costs, slow reactions to
environmental change, and lost profits at the retail level. Would supply chain management be of any help
to the business?
a. Yes, supply chain management is designed to coordinate and integrate all the
activities from raw materials to product consumption.
b. No, supply chain management is only applicable to distribution strategies for
products being sold to the consumer market.
c. Yes, supply chain management would be very useful because it relies so heavily
on benchmarking.
d. Yes, supply chain management would alleviate all channel conflict.
e. No, supply chain management requires an expensive investment of time and
resources to make it worthwhile.
ANS: A
The correct answer contains the definition of supply chain management.
PTS: 1
REF: 217
KEY: CB&E Model Distribution
5.
a.
b.
c.
d.
e.
OBJ: 14-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
All of the following accurately describe supply chain management EXCEPT:
physical flow process
customer driven
provides enhanced customer and economic value
plays the role of communicator of customer demand
relies on a “push” strategy
ANS: E
In earlier days, standardized products were “pushed” down through the supply channel to the consumer,
but now the system relies on customers to “pull” the product through the channel.
PTS: 1
REF: 217-218
KEY: CB&E Model Distribution
6.
a.
b.
c.
d.
e.
OBJ: 14-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
All of the following are benefits of supply chain management EXCEPT:
increased flexibility of supply chain activities
improved customer service
reduced supply chain costs
decreased cash flow
decreased inventory
ANS: D
Cash flow would likely be increased due to higher revenues.
PTS: 1
REF: 218
KEY: CB&E Model Distribution
OBJ: 14-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
30
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
7.
Which of the following is a key principle of supply chain management that means
multiple firms work together to perform tasks as a single unified system rather than as several individual
companies acting in isolation?
a. Pareto principle
b. 80/20 principle
c. Systems approach
d. Win–win approach
e. Integrative approach
ANS: C
This describes a systems approach.
PTS: 1
REF: 218
KEY: CB&E Model Distribution
OBJ: 14-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
8.
_____ occurs when all the firms and business units participating in the supply chain
appear as though they are reading from the same script.
a. Strategic channel operation
b. Supply chain integration
c. Strategic MRP
d. Demand management
e. Extensive distribution integration
ANS: B
Supply chain integration occurs when multiple firms in a supply chain coordinate their activities and
processes so that they are seamlessly linked to one another in an effort to satisfy the customer.
PTS: 1
REF: 218
KEY: CB&E Model Distribution
OBJ: 14-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
9.
When the Boeing Co. announced it would delay the introduction of its new 787, the CEO
blamed the problem on the company’s supply chain. Airplanes use thousands of individual parts, and in
an attempt to relieve the smaller, individual supply chain quandary, Boeing used major suppliers to
construct large pieces of the plane. Boeing would have benefited from more _____ integration.
a. channel
b. supply chain
c. MRP
d. functional
e. tactical distribution
ANS: B
Supply chain integration occurs when multiple firms in a supply chain coordinate their activities and
processes so that they are seamlessly linked to one another in an effort to satisfy the customer.
PTS: 1
REF: 218
KEY: CB&E Model Distribution
OBJ: 14-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
10.
_____ integration is the ability of two or more companies to develop social connections
that serve to guide their interactions when working together.
31
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
a.
b.
c.
d.
e.
Relationship
Social
Customer
Materials and service supplier
Technology and planning integration
ANS: A
This is the definition of relationship integration.
PTS: 1
REF: 218
KEY: CB&E Model Distribution
OBJ: 14-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
11.
When each firm in a supply chain has clarity in terms of knowing which firm is the
leader, which are the followers, and which responsibilities are assigned to each firm, _____ is (are)
evident.
a. specificity
b. complexity
c. ambiguity
d. internal relationships
e. hierarchy
ANS: A
Relationally integrated supply chains typically have high role specificity, that is, each firm has clarity of
its role in the chain.
PTS: 1
REF: 218
KEY: CB&E Model Distribution
OBJ: 14-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
12.
Which type of integration implies the performance assessment of the supply chain should
be taken as a whole while also holding each member of the supply chain accountable for meeting its own
goals?
a. Accountability
b. Benchmarking
c. Social
d. Planning
e. Measurement
ANS: E
Measurement integration reflects the idea that performance assessments should assess the performance of
the supply chain as a whole while holding each individual firm or business unit accountable for meeting
its own goals.
PTS: 1
REF: 218
KEY: CB&E Model Distribution
OBJ: 14-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
13.
Which of the following is an example of one of the six types of integration that are
sought by firms interested in providing top-level service to their customers?
a. Strategic integration
b. Hierarchical integration
c. Internal operations integration
32
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
d. Global integration
e. All of the above
ANS: C
The six types of integration are relationship integration, measurement integration, technology and
planning integration, material and service supplier integration, internal operations integration, and
customer integration.
PTS: 1
REF: 218-219
KEY: CB&E Model Distribution
OBJ: 14-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
14.
All of the following are types of integration sought by firms interested in providing toplevel service to customers EXCEPT:
a. relationship integration
b. measurement integration
c. customer integration
d. production integration
e. technology and planning integration
ANS: D
The six types of integration are relationship integration, measurement integration, technology and
planning integration, material and service supplier integration, internal operations integration, and
customer integration.
PTS: 1
REF: 218-219
KEY: CB&E Model Distribution
OBJ: 14-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
15.
By achieving _____ integration across their supply chains, firms can gain the information
needed to execute short-term and long-term planning, and thereby make better operational decisions.
a. relationship
b. social
c. functional
d. technology and planning
e. internal operations
ANS: D
Technology and planning integration is the creation and maintenance of information technology systems
that connect managers across and through the firms in the supply chain, with the goal of supporting
supply chain activities that best satisfy customer demands.
PTS: 1
REF: 219
KEY: CB&E Model Distribution
OBJ: 14-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
16.
Through the use of automatic shipping notices, Ace Hardware is effective at removing
unnecessary costs from its supply chain. According to a VP of inventory for the retailer, “Information
gathering that used to take three or four phone calls now is available immediately.” This is an example of
the use of _____ integration.
a. relationship
b. social
c. functional
33
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
d. technology and planning
e. internal operations
ANS: D
By achieving technology and planning integration across their supply chains, firms can gain the
information needed to execute short-term and long-term planning. The process is the creation and
maintenance of information technology systems that connect managers across and through the firms in the
supply chain, with the goal of supporting supply chain activities that best satisfy customer demands.
PTS: 1
REF: 219
KEY: CB&E Model Distribution
OBJ: 14-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
17.
Food producers love big boxes because they serve as billboards on store shelves.
Walmart wants to change this practice and promises suppliers that their shelf spaces won’t shrink even if
their boxes do. As a result, some of its vendors have reengineered their packaging. This is an example of
_____ integration.
a. relationship
b. social
c. functional
d. operational
e. materials and service supplier
ANS: E
Both the retailer and its suppliers have a common vision of the total value creation process.
PTS: 1
REF: 219
KEY: CB&E Model Distribution
OBJ: 14-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
18.
_____ integration requires firms within a supply chain to link seamlessly so that they can
streamline work processes and thereby provide smooth, high-quality customer experiences.
a. Relationship
b. Social
c. Functional
d. Internal operations
e. Material and service supplier
ANS: D
To provide a seamless and satisfying customer experience, everyone working within the firm must be “on
the same page” in terms of daily operations.
PTS: 1
REF: 219
KEY: CB&E Model Distribution
OBJ: 14-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
19.
Nabisco has reduced product inventory requirements from 49 days to 22 days. This frees
up cash and warehouse space, adding flexibility to the plant. This seamless linking of Nabisco’s strategic
business units is accomplished through _____ integration.
a. relationship
b. social
c. functional
d. hierarchical
34
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
e. internal operations
ANS: E
Internal operations integration is the result of capabilities developed toward the goal of linking internally
performed work into a seamless process that stretches across functional and departmental boundaries.
PTS: 1
REF: 219
KEY: CB&E Model Distribution
OBJ: 14-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
20.
Sobha Developers is the only company in India and possibly the world that manufactures
almost everything that goes into its buildings. It is this backward integration that gives Sobha absolute
control over quality at every level. Sobha has the highest possible _____ integration.
a. relationship
b. social
c. functional
d. operational
e. internal operations
ANS: E
Internal operations integration is the result of capabilities developed toward the goal of linking internally
performed work into a seamless process that stretches across functional and departmental boundaries.
PTS: 1
REF: 219
KEY: CB&E Model Distribution
OBJ: 14-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
21.
_____ integration is a competency that enables firms to offer long-lasting, distinctive,
value-added offerings to those customers who represent the greatest value to the firm or supply chain.
a. Customer
b. Social
c. Measurement
d. Departmental
e. Internal operations
ANS: A
The best way to deliver value under profitability constraints is through customer integration.
PTS: 1
REF: 219
OBJ: 14-2
KEY: CB&E Model Distribution | CB&E Model Customer
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
22.
_____ is (are) composed of bundles of interconnected activities that stretch across firms
in the supply chain.
a. ABC segmentation strategies
b. Activity-based costing
c. Customer relationship management
d. Business processes
e. Customer service activities
ANS: D
This is the definition of business processes.
35
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
PTS: 1
REF: 219
KEY: CB&E Model Distribution
OBJ: 14-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
23.
There are eight critical business processes on which supply chain managers must focus.
Which of the following is one of those processes?
a. Returns management
b. Sales promotion activities
c. Distribution intensity
d. Public relations activities
e. Environmental assessments
ANS: A
Returns management is one of the eight critical business processes on which supply chain managers must
focus.
PTS: 1
REF: 219
KEY: CB&E Model Distribution
OBJ: 14-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
24.
Of the eight critical business processes on which supply chain managers must focus,
which process allows companies to prioritize their marketing focus on different customer groups
according to each group’s long-term value to the company or the supply chain?
a. Customer relationship management
b. Returns management
c. Product development and commercialization
d. Order fulfillment
e. Demand management
ANS: A
Customer relationship management is designed to identify and build relationships with good customers.
PTS: 1
REF: 219
KEY: CB&E Model Distribution
OBJ: 14-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
25.
Of the eight critical business processes on which supply chain managers must focus, the
_____ process presents a multi-company, unified response system to the customer whenever complaints,
concerns, questions, or comments are voiced.
a. manufacturing flow management
b. customer service management
c. product development and commercialization
d. order fulfillment
e. demand management
ANS: B
The customer service management process is designed to ensure that customer relationships remain
strong.
PTS: 1
REF: 220
OBJ: 14-3
KEY: CB&E Model Distribution | CB&E Model Customer
36
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
26.
By working closely with its suppliers and listening to its customers, Target has improved
the service encounter to a level that was not thought possible in mass retailing. This is an example of
which of the eight critical processes performed by supply managers?
a. Manufacturing flow management
b. Customer service management
c. Product development and commercialization
d. Order fulfillment
e. Demand management
ANS: B
Of the eight critical business processes on which supply chain managers must focus, the customer service
management process presents a multi-company, unified response system to the customer whenever
complaints, concerns, questions, or comments are voiced.
PTS: 1
REF: 220
OBJ: 14-3
KEY: CB&E Model Distribution | CB&E Model Customer
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
27.
Which business process is based on the activities involved in customer data collection,
forecasting of future demand, synchronization of supply and demand by comparing production capacity to
forecasts, and the development of activities to “smooth out” demand?
a. Manufacturing flow management
b. Customer service management
c. Product development and commercialization
d. Order fulfillment
e. Demand management
ANS: E
The demand management process is the alignment of supply and demand throughout the supply chain.
PTS: 1
REF: 220
KEY: CB&E Model Distribution
OBJ: 14-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
28.
The amount of time between order placement, receipt of the customer’s payment, and
order shipment is known as the:
a. 3PL cycle
b. product life cycle
c. purchase cycle
d. order-to-cash cycle
e. float
ANS: D
When the order fulfillment process is managed diligently, the amount of time between order placement
and receipt of the customer’s payment after order shipment, known as the order-to-cash cycle), is
minimized as much as possible.
PTS: 1
REF: 221
KEY: CB&E Model Distribution
OBJ: 14-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
29.
A firm that specializes in the order fulfillment process is called a(n):
a. third-party logistics firm (3PL)
37
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
b.
c.
d.
e.
intermediate distributor
industrial distributor
merchant wholesaler
ABC firm
ANS: A
Because many firms do not view order fulfillment as a core competency, they often outsource this
function to a third-party logistics firm (3PL) that specializes in the order fulfillment process.
PTS: 1
REF: 221
KEY: CB&E Model Distribution
OBJ: 14-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
30.
ProLog is a firm that specializes in warehousing and fulfilling orders for firms as diverse
as those supplying parts for manufacturers of complicated missile defense systems to those manufacturing
pet-care products. Firms contract ProLog to manage part or all of their order fulfillment process. ProLog
is an example of a:
a. merchant wholesaler
b. retailer
c. distributor
d. third-party logistics firm (3PL)
e. manufacturing flow process manager
ANS: D
Third-party logistics firms (3PLs) are contracted to manage part or all of another firm’s order fulfillment
process.
PTS: 1
REF: 221
KEY: CB&E Model Distribution
OBJ: 14-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
31.
Which business process ensures that firms in the supply chain have the resources they
need?
a. Manufacturing flow management
b. Customer service management
c. Product development and commercialization
d. Order fulfillment
e. Demand management
ANS: A
The manufacturing flow management process is concerned with ensuring that firms in the supply chain
have the needed resources to manufacture with flexibility and to move products through a multi-stage
production process.
PTS: 1
REF: 221
KEY: CB&E Model Distribution
OBJ: 14-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
32.
Which business process supports manufacturing flow by identifying and maintaining
relationships with highly valued suppliers?
a. Supplier relationship management
b. Customer service management
c. Product development and commercialization
38
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
d. Order fulfillment
e. Demand management
ANS: A
The supplier relationship management process is closely related to the manufacturing flow management
process and contains several characteristics that parallel the customer relationship management process.
PTS: 1
REF: 221
KEY: CB&E Model Distribution
OBJ: 14-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
33.
Specialty Blades designs precision cutting devices for varied applications. On one recent
project, they worked closely with a medical device company, developing a combination scalpel and
stapler that slices tissue very neatly close to the staples, which results in less traumatic procedures and
quicker patient recoveries. This is an example of which of the eight critical processes performed by
supply chain managers?
a. Supplier relationship management
b. Customer service management
c. Product development and commercialization
d. Order fulfillment
e. Demand management
ANS: C
The product development and commercialization process includes the group of activities that facilitates
the joint development and marketing of new offerings among a group of supply chain partners.
PTS: 1
REF: 222
KEY: CB&E Model Distribution
OBJ: 14-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
34.
Mattel, the world’s biggest toymaker, ordered 18 million toys made in China to be
recalled because of hazards such as the use of lead paint. Mattel’s _____ process allowed it to handle the
product recall efficiently.
a. order fulfillment
b. returns management
c. product commercialization
d. demand management
e. product fulfillment
ANS: B
The returns management process enables firms to manage the returned merchandise while minimizing
returns-related costs.
PTS: 1
REF: 222
KEY: CB&E Model Distribution
35.
a.
b.
c.
d.
e.
OBJ: 14-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
All of the following are logistics components of the supply chain EXCEPT:
trade promotions
production scheduling
inventory control
warehousing and materials handling
order processing
39
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
ANS: A
The logistics function consists of several interrelated and integrated logistical components: (1) sourcing
and procurement of raw materials and supplies, (2) production scheduling, (3) order processing, (4)
inventory control, (5) warehousing and materials handling, and (6) transportation.
PTS: 1
REF: 222-223
KEY: CB&E Model Distribution
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
36.
Which of the following provides the technological link connecting all of the logistics
components of the supply chain?
a. Logistics information system
b. Materials requirement plan
c. EDI
d. RFID chips
e. Distribution resources strategy
ANS: A
The components of the system include software for materials acquisition and handling, warehousemanagement and enterprise-wide solutions, data storage and integration in data warehouses, and so on.
PTS: 1
REF: 223
KEY: CB&E Model Distribution
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
37.
One-quarter of Ace’s 60,000 SKUs are vendor managed through software called the
“Collaboration” program. This software allows certain vendors to go online to get information to build
their forecasts. The result of this application is fewer shipments, fuller pallets, increased pallets per truck,
and a reduction in freight. Collaboration is part of Ace’s:
a. logistics information system
b. materials requirement plan
c. EDI
d. RFID chips
e. distribution resources strategy
ANS: A
A logistical information system provides the technological link connecting all of the logistics components
of the supply chain
PTS: 1
REF: 223
KEY: CB&E Model Distribution
38.
a.
b.
c.
d.
e.
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
The supply chain team does all of the following EXCEPT:
communicating, coordinating, and cooperating extensively
embracing all parties who participate in moving the product to market
typically cutting across organizational boundaries
providing financing for distributors
orchestrating the movement of goods, services, and information from the source to
the consumer
ANS: D
40
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
The supply chain team does all of these, but it does not provide financing for distributors.
PTS: 1
REF: 223
KEY: CB&E Model Distribution
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
39.
Which of the following is a member of a supply chain team that moves just-picked cotton
to finished clothing and then to the consumer of that clothing?
a. The warehouse in which the cotton was temporarily stored
b. The ad agency that develops the promotion for the clothing
c. The farmer who picks the cotton
d. The trucking company that hauls the cotton to the clothing manufacturer
e. All of the choices
ANS: E
The supply chain team is composed of everyone who participates in the movement from raw material to
consumer, including all external participants like ad agencies and transportation companies.
PTS: 1
REF: 223
KEY: CB&E Model Distribution
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
40.
In which logistical component of the supply chain will you find electronic data
interchange a common feature?
a. Production scheduling
b. Transportation
c. Order processing
d. Materials handling
e. All of these
ANS: C
Order processing is becoming more automated through the use of computer technology known as
electronic data interchange (EDI).
PTS: 1
REF: 225
OBJ: 14-4
TOP: AACSB Technology
KEY: CB&E Model Distribution | CB&E Model Online/Computer
MSC: BLOOMS Comprehension
41.
_____ is the direct electronic transmission, from computer to computer, of standard
business forms between two organizations. When this technique is used, orders can become virtually
paperless, and information about the order is available to both firms.
a. Business prioritizing
b. Electronic data interchange
c. Just-in-time inventory
d. Real-time inventory
e. Direct sourcing
ANS: B
Electronic data interchange (EDI) is information technology that replaces the paper documents that
usually accompany business transactions.
PTS: 1
REF: 225
OBJ: 14-4
41
TOP: AACSB Technology
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
KEY: CB&E Model Distribution | CB&E Model Online/Computer
MSC: BLOOMS Knowledge
42.
_____ is a method of developing and maintaining an adequate assortment of materials or
products to meet a manufacturer’s or a customer’s demand.
a. The materials-handling system
b. An inventory control system
c. Direct sourcing
d. Contract logistics
e. Warehousing
ANS: B
This is the definition of an inventory control system.
PTS: 1
REF: 225
KEY: CB&E Model Distribution
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
43.
Which of the following is the inventory control system that manages the replenishment of
raw materials, supplies, and components from the supplier to the manufacturer?
a. Electronic data interchange (EDI)
b. Distribution resource planning (DRP)
c. Third-party logistics firm (3PL)
d. Materials requirement planning (MRP)
e. Activity-based costing (ABC)
ANS: D
This is the definition of materials requirement planning (MRP), which is also referred to as materials
management.
PTS: 1
REF: 225
KEY: CB&E Model Distribution
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
44.
The goal of inventory control is to:
a. minimize inventory levels while maintaining an adequate supply of goods to meet
b.
c.
d.
e.
customer demands
maximize inventory levels to prevent any possibility of stockouts
determine order timing and order quantity
estimate proper usage rates
integrate JIT to reduce risks of obsolescence, theft, and damage
ANS: A
Inventory decisions affect physical distribution costs and service levels. The goal is to balance minimum
inventory levels while meeting customer needs for stock.
PTS: 1
REF: 225
KEY: CB&E Model Distribution
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
45.
In which logistical component of the supply chain will you find distribution resource
planning (DRP) a common feature?
a. Production scheduling
42
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
b.
c.
d.
e.
Transportation
Order processing
Materials handling
Inventory control
ANS: E
Distribution resource planning (DRP) is an inventory control system that manages the replenishment of
goods from the manufacturer to the final consumer.
PTS: 1
REF: 225-226
KEY: CB&E Model Distribution
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
46.
ZuTech makes sensitive monitors for measuring exposure to hazardous materials.
ZuTech has suffered substantial losses when moving products from the assembly line to the warehouse
and shipping docks. ZuTech should consider reducing the number of times an item is moved in the
warehouse by installing a(n):
a. inventory control system
b. materials-handling system
c. safety procedure to manage SKUs
d. order-processing system
e. outsourcing system
ANS: B
The goal of the materials-handling system is to move items quickly with minimal handling.
PTS: 1
REF: 226
KEY: CB&E Model Distribution
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
47.
All of the following are types of inputs used in both materials requirement planning and
distribution resource planning EXCEPT:
a. the source of funding
b. lead times
c. the mode of transportation to be used
d. outstanding orders
e. sales forecasts
ANS: A
Both inventory systems use various inputs, such as sales forecasts, available inventory, outstanding
orders, lead times, and mode of transportation to be used, to determine what actions must be taken to
replenish goods at all points in the supply chain.
PTS: 1
REF: 226
KEY: CB&E Model Distribution
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
48.
_____ provides time utility to buyers and sellers and aids manufacturers in managing
supply and demand.
a. Containerization
b. Distribution
c. Storage
d. Direct sourcing
43
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
e. Channelization
ANS: C
Storage is necessary to match supply with demand and to provide a level of safety stock.
PTS: 1
REF: 226
KEY: CB&E Model Distribution
49.
a.
b.
c.
d.
e.
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
Which of the following moves inventory into, within, and out of a warehouse?
An inventory control system
A multichannel system
An ERP control system
A freight forwarder
A materials-handling system
ANS: E
A materials handling system is a method of moving inventory into, within, and out of the warehouse.
PTS: 1
REF: 226
KEY: CB&E Model Distribution
50.
a.
b.
c.
d.
e.
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
The goal of any effective materials-handling system is to:
reduce the time of the order-processing system
optimize the inventory control system
increase safety procedures
move items quickly with minimal handling
reduce the length of time a product is in the transportation subsystem
ANS: D
Each time a product is handled, the cost and risk of damage increase.
PTS: 1
REF: 226
KEY: CB&E Model Distribution
51.
a.
b.
c.
d.
e.
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
All of the following are criteria used to choose a mode of transportation EXCEPT:
diversity
cost
transit time
reliability
traceability
ANS: A
Criteria used include cost, transit time, reliability, capability, accessibility, and traceability.
PTS: 1
REF: 227
KEY: CB&E Model Distribution
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
52.
The mode of transportation that provides the most accessibility is:
a. pipelines
b. air freight
44
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
c. truck freight
d. water transport
e. railroad
ANS: C
Motor carriers (trucks) can go to more locations than any of the other modes of transportation. See
Exhibit 14.1.
PTS: 1
REF: 227
KEY: CB&E Model Distribution
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
53.
The growers of Vidalia onions have determined that their chief priority for choosing a
transportation mode within the United States is transit time. However, this must be tempered by practical
cost considerations. In light of these considerations, Vidalia onion growers should use _____ to ship their
onions.
a. railroads
b. motor carriers (trucks)
c. airplanes
d. water transportation
e. pipelines
ANS: B
Motor carriers are not as fast as airplanes, but they are less expensive, particularly when dealing with a
bulky product like onions. See Exhibit 14.1.
PTS: 1
REF: 227
KEY: CB&E Model Distribution
54.
a.
b.
c.
d.
e.
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
One major advantage of pipelines over other modes of transportation is:
availability
points served
flexibility
speed
reliability
ANS: E
Pipelines are rarely interrupted by weather, traffic, or labor disputes. See Exhibit 14.1.
PTS: 1
REF: 227
KEY: CB&E Model Distribution
55.
a.
b.
c.
d.
e.
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
Which of the following describes a disadvantage associated with water transportation?
Cannot be used for international trade
High cost
Capability
Lack of speed
Product weight restrictions
ANS: D
Shipping via water is the slowest mode of transportation. See Exhibit 14.1.
45
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
PTS: 1
REF: 227
KEY: CB&E Model Distribution
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
56.
Which of the following transportation modes can most easily determine the location of a
package en route between shipper and receiver?
a. Air
b. Truck
c. Rail
d. Pipe
e. Water
ANS: A
In addition to speed, air transport offers an important additional benefit to shippers, that being the ease of
tracing shipments. See Exhibit 14.1.
PTS: 1
REF: 227
KEY: CB&E Model Distribution
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
57.
The Canadian lobster harvest requires special handling coupled with rapid transportation
to ensure the cargo reaches destinations alive. The favored transportation mode would be:
a. air
b. water
c. truck
d. pipeline
e. rail
ANS: A
Air transportation ensures the speed necessary for lobster delivery. (Air Canada has developed special
handling and shipping techniques for the lobsters.) See Exhibit 14.1.
PTS: 1
REF: 227
KEY: CB&E Model Distribution
OBJ: 14-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
58.
All of the following are business trends currently having a strong influence on the job of
the supply chain manager EXCEPT:
a. bar coding and radio frequency technology
b. the advancement of computer technology
c. the outsourcing of logistical functions
d. replenishment benchmarking
e. electronic distribution
ANS: D
An additional trend is green supply chain management.
PTS: 1
REF: 227-228
KEY: CB&E Model Distribution
OBJ: 14-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
59.
A manufacturer’s or supplier’s use of an independent third party to manage an entire
function of the logistics system, such as transportation, warehousing, or order processing, is called:
46
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
a.
b.
c.
d.
e.
outsourcing
mediation
intermediary distribution
benchmarking
disintermediaton
ANS: A
This is the definition of outsourcing, also called contract logistics.
PTS: 1
REF: 228
KEY: CB&E Model Distribution
OBJ: 14-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
60.
Papa John’s pizza chain uses UPS trucks to carry supplies to its franchises. Papa John’s
does not own the trucks but has contracted with UPS to have all of the trucks it uses in its deliveries to
Papa John’s establishments painted with the Papa John’s logo and company colors. Papa John’s is using:
a. a horizontal distribution channel
b. a selective distribution channel
c. outsourcing
d. multisourcing
e. a portable inventory control system
ANS: C
Papa John’s supplier is an independent third party.
PTS: 1
REF: 228
KEY: CB&E Model Distribution
OBJ: 14-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
61.
Volvo, working with FedEx, set up a warehouse in Memphis with a complete stock of
truck parts. A dealer needing a part for an emergency phones a toll-free number, and the part is delivered
by FedEx within 24 hours. This is an example of how manufacturers are using:
a. outsourcing
b. cross-docking
c. disintermediation
d. piggybacking
e. an integrated demand channel
ANS: A
With outsourcing, a company would use an independent third party to operate some or all of its logistics
system.
PTS: 1
REF: 228
KEY: CB&E Model Strategy
OBJ: 14-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
62.
A manufacturer of automobile component parts that has turned over all transportation
functions to an independent third party in its supply chain has engaged in:
a. creating a dependent materials-handling system
b. outsourcing
c. removing entry barriers
d. task deployment
47
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
e. channel rotation
ANS: B
Outsourcing (or contract logistics) is a manufacturer’s or supplier’s use of an independent third party to
manage an entire function of the logistics system, such as transportation, warehousing, or order
processing.
PTS: 1
REF: 228
KEY: CB&E Model Strategy
63.
a.
b.
c.
d.
e.
OBJ: 14-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
When Rick purchased tickets to a concert on the Internet, it was an example of:
single-sourcing distribution
one-way channelization
electronic distribution
mass customization
aggregated marketing
ANS: C
Electronic distribution includes any kind of product or service that can be distributed electronically.
Tickets are just one of many types of products and services that can be distributed electronically.
PTS: 1
REF: 228
OBJ: 14-5
TOP: AACSB Technology
KEY: CB&E Model Distribution | CB&E Model Online/Computer
MSC: BLOOMS Application
48
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
Retailing (Ch. 15 MKTG 300 Text)
MULTIPLE CHOICE
1.
_____ is defined as all activities directly related to the sale of goods and services to the
ultimate consumer for personal, nonbusiness use or consumption.
a. Wholesaling
b. Retailing
c. Business
d. Franchising
e. Distribution
ANS: B
This is the definition of retailing.
PTS: 1
REF: 231
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 15-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
2.
Which U.S. retailer is the number one sales volume retailer in the world?
Sears
JCPenney
Target
Kroger
Walmart
ANS: E
Walmart’s annual U.S. sales alone are greater than the next five U.S. retail giants’ sales combined.
PTS: 1
REF: 231
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 15-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
3.
Retail establishments are generally classified according to all of the following EXCEPT:
ownership
level of sales
level of service
price
product assortment
ANS: B
The four elements used to classify retail establishments are its ownership, level of service, product
assortment, and price.
PTS: 1
REF: 232
KEY: CB&E Model Distribution
OBJ: 15-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
4.
A retail store can be classified according to its:
a. distribution method
b. inventory control
c. product assortment
49
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
d. management style
e. decor and atmosphere
ANS: C
A retail establishment can be classified according to its ownership, level of service, product assortment,
and price.
PTS: 1
REF: 232
KEY: CB&E Model Distribution
OBJ: 15-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
5.
Around the world, most retailers are _____, operating one or a few stores in their
community, owned by a single person or partnership and not operated as part of a larger retail institution.
a. independent
b. chain stores
c. franchise outlets
d. specialty clubs
e. product assortment stores
ANS: A
Independent retail outlets are owned by a single person or partnership and not operated as part of a larger
retail institution.
PTS: 1
REF: 232
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 15-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
6.
Small neighborhood florists, shoe stores, and ethnic food markets are most likely to be:
supercenters
franchise outlets
membership clubs
chain stores
independent retailers
ANS: E
These are examples of independent retailers.
PTS: 1
REF: 232
KEY: CB&E Model Distribution
OBJ: 15-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
7.
Tiffany owns a gift shop that carries clothing and memorabilia of local high school teams
as well as home decor objects. She is the sole owner of the store, so in terms of ownership, her store
would be classified as a(n):
a. independent retailer
b. freestanding store
c. franchise
d. chain store
e. common retailer
ANS: A
Independent retailer stores are owned by a single person or partnership and not operated as part of a larger
retail institution.
PTS: 1
REF: 232
OBJ: 15-2
50
TOP: AACSB Reflective Thinking
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
KEY: CB&E Model Distribution
MSC: BLOOMS Application
8.
Stores that are owned and operated as a group by a single organization are called _____.
Under this form of ownership, many administrative tasks are handled by the home office.
a. home base stores
b. independent retailers
c. franchisees
d. chain stores
e. strip centers
ANS: D
This is the definition of chain stores.
PTS: 1
REF: 232
KEY: CB&E Model Distribution
OBJ: 15-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
9.
Which type of retail ownership is owned and operated by an individual but is licensed by
a larger supporting organization?
a. Independent retailer
b. Chain store
c. Franchise
d. Cooperative
e. Secondary retailer
ANS: C
This describes a franchise.
PTS: 1
REF: 232
KEY: CB&E Model Distribution
OBJ: 15-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
10.
Rick owns and operates his own UPS shipping store. He has licensed the right to use UPS
business systems. Rick’s shipping store is a:
a. doubly managed outlet
b. chain store
c. franchise
d. independent retailer
e. licensor
ANS: C
Franchises are owned and operated by individuals but are licensed by larger supporting organizations.
PTS: 1
REF: 232
KEY: CB&E Model Distribution
OBJ: 15-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
11.
The number of different varieties of fishing lures carried by the Angler’s Store refers to
the store’s:
a. store’s supply standard
b. complete retail offering
c. retail mix
d. volume
e. assortment depth
51
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
ANS: E
Breadth and depth refers to product assortment.
PTS: 1
REF: 232
KEY: CB&E Model Distribution
OBJ: 15-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
12.
Which of the following types of stores has a high gross margin, a narrow product
assortment, and a high level of service?
a. A supermarket
b. A warehouse club
c. A convenience store
d. A full-line discount store
e. A specialty store
ANS: E
These are characteristics of specialty stores. See Exhibit 15.1.
PTS: 1
REF: 232
KEY: CB&E Model Distribution
OBJ: 15-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
13.
_____ shows how much the retailer makes as a percentage of sales after the cost of goods
sold is subtracted.
a. Net income
b. Retained earnings
c. Profitability
d. Net equity
e. Gross margin
ANS: E
This is the definition of gross margin.
PTS: 1
REF: 233
KEY: CB&E Model Pricing
a.
b.
c.
d.
e.
OBJ: 15-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
14.
As a general rule of thumb, a retailer that has a high gross margin will have:
m-commerce capabilities
an inventory management system
low prices
salespeople trained in cross-selling techniques
high prices
ANS: E
The level of gross margin and the price level generally match.
PTS: 1
REF: 233
KEY: CB&E Model Pricing
OBJ: 15-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
15.
Housing several departments under one roof, a _____ carries a wide variety of shopping
and specialty goods, including apparel, cosmetics, housewares, electronics, and sometimes furniture.
a. supermarket
b. specialty store
52
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
c. convenience store
d. super club
e. department store
ANS: E
Department stores house several departments under one roof.
PTS: 1
REF: 233
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
16.
Which type of retail store would typically have the highest labor costs?
A warehouse club
A department store
An off-price store
An off-price retailer
A discount store
ANS: B
A department store carries a wide variety of shopping and specialty goods in several departments and
provides a high level of service, all of which is labor intensive and adds to the cost of doing business.
PTS: 1
REF: 233
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
17.
Each department in a department store is usually headed by a _____ who selects the
merchandise mix for the department and may also choose the promotional devices and personnel for that
department.
a. franchisee
b. financial broker
c. comptroller
d. human resources manager
e. buyer
ANS: E
A buyer is a department head who selects the merchandise for his or her department and may also be
responsible for promotion and personnel.
PTS: 1
REF: 233
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
18.
The buyer who heads a department in a department store is responsible for the:
store’s exchange and return policies
store’s credit policies
chain’s expansion efforts
merchandise mix in that department
store’s advertising program
ANS: D
Each department in a department store is usually headed by a buyer who selects the merchandise mix for
the department and may also choose the promotional devices and personnel for that department.
PTS: 1
REF: 233
OBJ: 15-3
53
TOP: AACSB Reflective Thinking
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
KEY: CB&E Model Distribution
MSC: BLOOMS Comprehension
19.
The _____ at John Lewis, Britain’s largest department store chain, selects the
merchandise for his or her department and is often responsible for its promotion and for managing the
personnel in that department.
a. buyer
b. purchasing agent
c. retail broker
d. merchandiser
e. franchisee
ANS: A
Each department in a department store is usually headed by a buyer who selects the merchandise mix for
the department and may also choose the promotional devices and personnel for that department.
PTS: 1
REF: 233
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
20.
Which type of retail store specializes in a given type of merchandise?
An independent store
A department store
A discount store
A specialty store
A first-level store
ANS: D
This is the definition of a specialty store.
PTS: 1
REF: 234
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
21.
James wants to open a small store that offers only products, knowledge, and advice for
those who like to build Hot Rods, Street Rods, and refurbish classic cars. Which of the following types of
stores would most likely support an effective launch of his business idea?
a. An off-price retailer
b. A specialty store
c. A full-discount store
d. A general store
e. A warehouse club
ANS: B
Specialty stores specialize in a given type of merchandise.
PTS: 1
REF: 234
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
22.
Texas-based Grape Vine Market is an 18,000-square-foot store offering highly collectible
food and wine—along with some other culinary perks, including a cooking school—all in a setting crafted
to make shoppers feel comfortable. It stocks more than 5,500 different kinds of wine. Grape Vine Market
is best described as a:
a. hypermarket
54
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
b.
c.
d.
e.
convenience store
specialty store
department store
general store
ANS: C
A specialty store is a retail store specializing in a given type of merchandise.
PTS: 1
REF: 234
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
23.
Which of the following statements about specialty stores is true?
a. Customers usually consider price to be the most important factor in their selection of a
specialty store.
b. Customers at specialty stores are not concerned with the distinctiveness of the
merchandise or the store’s physical appearance.
c. Specialty stores typically avoid price wars.
d. Specialty stores are ineffective test markets.
e. A typical specialty store carries a wider assortment of specialty merchandise than
department stores.
ANS: C
Customers usually consider price to be of secondary importance in their selection of a specialty store.
Customers at specialty stores are very concerned with the distinctiveness of the merchandise or the store’s
physical appearance. Specialty stores provide a low-risk testing ground for new products. A typical
specialty store carries a narrower assortment of specialty merchandise than department stores.
PTS: 1
REF: 234
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Evaluation
24.
_____ are large, departmentalized, self-service retailers that specialize in food and some
nonfood items.
a. Supermarkets
b. Convenience stores
c. Membership wholesale clubs
d. Discount stores
e. Assortment merchandisers
ANS: A
This is the definition of a supermarket.
PTS: 1
REF: 234
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
25.
Giant Eagle is a chain of retail outlets in Ohio, West Virginia, Maryland, and
Pennsylvania that are described as large, departmentalized, self-service stores that specialize in food and
limited nonfood items. Giant Eagle stores are:
a. off-price retailers
b. discount stores
c. wholesale clubs
d. convenience stores
55
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
e. supermarkets
ANS: E
The key factors are the emphasis on food and the size of the stores.
PTS: 1
REF: 234
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
26.
When supermarkets offer a wide variety of nontraditional goods and services under one
roof, they are engaged in:
a. cross-selling
b. trading up
c. scrambled merchandising
d. disintermediation
e. cross-docking
ANS: C
This is the definition of scrambled merchandising.
PTS: 1
REF: 234
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
27.
Kroger is the second-largest supermarket chain in the United States. Which of the
following is the most likely reason why Kroger supermarkets sell all types of foodstuffs as well as
nonfood products including a wide range of eyewear and accessories?
a. Consumer demand for one-stop shopping often leads to scrambled merchandising.
b. The fulfillment of the wheel of retailing hypothesis
c. Inflationary economic climate
d. Repositioning as a discounter
e. Growth of convenience merchandising
ANS: A
In many cases, supermarkets offer a wide variety of nontraditional goods and services under one roof (a
strategy called scrambled merchandising) to respond to consumers who want convenience.
PTS: 1
REF: 234
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
28.
Safeway, Avanza (for the Hispanic market), Publix, and other supermarket chains offer a
variety of nontraditional goods and services such as video rental, flower shops, dry cleaning, and banking.
This practice is called:
a. convenience merchandising
b. retail wheeling
c. specialty service
d. trade-up positioning
e. scrambled merchandising
ANS: E
In many cases, supermarkets offer a wide variety of nontraditional goods and services under one roof,
which is a strategy called scrambled merchandising.
PTS: 1
REF: 234
OBJ: 15-3
56
TOP: AACSB Reflective Thinking
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
KEY: CB&E Model Distribution
MSC: BLOOMS Application
29.
_____ carry a limited line of high-turnover, high-priced goods and resemble miniature
supermarkets. These self-service stores are typically located near residential areas and are open long
hours, seven days a week.
a. Specialty stores
b. Wholesale stores
c. Convenience stores
d. Factory outlets
e. General stores
ANS: C
This describes convenience stores.
PTS: 1
REF: 235
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
30.
Prices are usually higher in convenience stores than in supermarkets because convenience
stores offer:
a. more specialty goods
b. a wider variety of products
c. a higher level of customer services
d. better location, longer hours, and faster service
e. higher-quality goods
ANS: D
Convenience stores carry a limited amount of high-turnover, high-priced goods and resemble miniature
supermarkets. Customers patronize these stores because of convenience.
PTS: 1
REF: 235
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
31.
Flash Foods is the name of a chain of convenience stores with self-service gas pumps.
What do you know about the convenience stores?
a. They carry a wide assortment of products.
b. They carry a limited line of high-turnover goods.
c. They compete on the basis of low price.
d. They carry a limited but deep assortment of products.
e. They carry the freshest of produce.
ANS: B
Convenience stores carry a limited line of high-turnover, high-priced goods and resemble miniature
supermarkets.
PTS: 1
REF: 235
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
32.
_____ are retailers that compete on the basis of low prices, high turnover, and high
volume.
a. Convenience outlets
b. Discount stores
57
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
c. General stores
d. Department stores
e. Specialty stores
ANS: B
This is the definition of discount stores. Convenience stores are miniature supermarkets, carrying only a
limited line of high-turnover convenience goods.
PTS: 1
REF: 235
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
33.
Discount stores:
compete on the basis of low prices, high turnover, and high volume
offer more SKUs than department stores
sell high-priced, low-turnover products
provide their customers with full service
compete on the basis of assortment and depth
ANS: A
Discount stores compete on the basis of low prices, high turnover, and high volume.
PTS: 1
REF: 235
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
34.
Which type of discount store offers consumers very limited service and carries a broad
assortment of nationally branded “hard goods,” such as housewares, toys, automotive parts, clothing,
bedding, and maybe a limited line of nonperishable food items?
a. Full-line discount stores
b. Discount specialty stores
c. Factory outlets
d. Fashion stores
e. Specialty supercenters
ANS: A
This describes full-line discounters, which are often called mass merchandisers.
PTS: 1
REF: 235
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
35.
_____ is the retailing strategy of using moderate to low prices on large quantities of
products and lower service to stimulate a high turnover of inventory.
a. Specialty store positioning
b. Merchandise positioning
c. M-store retailing
d. The wheel of retailing
e. Mass merchandising
ANS: E
This describes full-line discounters, which are often called mass merchandisers.
PTS: 1
REF: 235
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
58
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
36.
Kmart utilizes a strategy of moderate to low prices on large quantities of products and
lower levels of service to stimulate a high turnover of inventory. Kmart offers a wide variety of different
product lines. Kmart is an example of a:
a. factory outlet
b. mass merchandiser
c. convenience store
d. franchising operation
e. specialty store
ANS: B
Mass merchandising is the retailing strategy whereby retailers use moderate to low prices on large
quantities of merchandise and lower levels of service to stimulate high turnover of products.
PTS: 1
REF: 235
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
37.
A retail operation that has a 90,000-square-foot facility and houses a florist, baker, bank,
craft shop, photo finisher, dry cleaner, and pharmacy under the same roof as grocery and household items
would be called a:
a. membership warehouse club
b. wholesale outlet
c. factory outlet
d. supercenter
e. mass merchandiser
ANS: D
Supercenters offer an array of products and services, as well as groceries.
PTS: 1
REF: 235
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
38.
_____ are single-line stores that offer a nearly complete selection of one line of
merchandise and use self-service, discount prices, high volume, and high turnover of merchandise to their
advantage.
a. Specialty discount stores
b. Factory outlets
c. Mass merchandisers
d. Membership clubs
e. General stores
ANS: A
This describes specialty discount stores, which are also called category killers.
PTS: 1
REF: 235
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
39.
Glen’s Safety First! sells a huge assortment of firefighting equipment at greatly reduced
prices. It offers customers few services and competes on the basis of moderate to low prices on the large
quantities of merchandise it stocks. Glen’s Safety First! is an example of a:
a. full-line discount store
59
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
b.
c.
d.
e.
specialty discount store
general store
department store
wholesale store
ANS: B
A specialty discount store (also called a category killer) offers a nearly complete selection of single-line
merchandise and uses self-service, discount prices, high volume, and high turnover to its advantage.
PTS: 1
REF: 235
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
40.
Specialty stores such as Best Buy, Babies “R” Us, and Bed, Bath, and Beyond are often
called category killers because:
a. they can destroy the profit potential for a category of merchandise for other retailers
b. they are located at stand-alone sites
c. of their broad merchandise mix and shallow assortment
d. they offer an exclusive category of merchandise
e. they carry only fast-selling items
ANS: A
Because these stores dominate their narrow merchandise segment, they are called category killers.
PTS: 1
REF: 235
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
41.
_____ sell a limited selection of brand name appliances, household items, and groceries,
usually in bulk on a cash-and-carry basis to members only.
a. Super outlets
b. Factory outlets
c. Wholesale discounters
d. Off-price discount retailers
e. Warehouse membership clubs
ANS: E
This describes warehouse membership clubs.
PTS: 1
REF: 236
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
42.
Laura buys supplies for her catering business at a retailer that stocks a limited selection of
items, which are sold in bulk on a cash-and-carry basis to members only. As she browses through the
huge store, she buys flour, a set of muffin pans, and a package of paper towels as well as an assortment of
fresh produce. Laura is most likely shopping at a(n):
a. off-price discount retailer
b. factory outlet
c. industrial supply warehouse
d. warehouse membership club
e. wholesale outlet
ANS: D
60
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
Warehouse membership clubs sell a limited selection of brand name appliances, household items, and
groceries, usually in bulk on a cash-and-carry basis to members only.
PTS: 1
REF: 236
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
43.
Off-price retailers:
are often able to take advantage of manufacturers’ faulty sales forecasting
very often offer a consistent assortment of merchandise
seldom stock brand name merchandise
are owned by the manufacturer of the products they sell
offer very deep assortments
ANS: A
Off-price retailers buy manufacturers’ overruns at cost or even less.
PTS: 1
REF: 236
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
44.
A publisher of books on holiday decorating, cooking, and crafts has to find a way to
dispose of its overruns and unsold end-of-season output. As a marketing consultant, you suggest the firm
sell the merchandise to:
a. mass merchandisers
b. convenience stores
c. department stores
d. supermarkets
e. off-price discount retailers
ANS: E
Off-price discount retailers purchase goods at cost or less from manufacturers’ overruns, bankruptcies,
irregular stock supplies, and unsold end-of-season output. The other four categories may be current
customers and would not have a use for the overruns and out-of-season stock.
PTS: 1
REF: 236
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
45.
A _____ is an off-price retailer that is owned and operated by a manufacturer and carries
one line of merchandise––its own.
a. mass merchandiser
b. factory outlet
c. wholesale club
d. discount store
e. bargain basement store
ANS: B
This describes a factory outlet.
PTS: 1
REF: 236
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
61
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
46.
Well-known manufacturers such as Bose, Ralph Lauren, and Reebok have decided that
the most profitable way to dispose of out-of-season and irregular stock is to open stores and sell their own
merchandise. These stores are types of:
a. seasonal outlets
b. mass merchandisers
c. factory outlets
d. discount stores
e. bargain basements
ANS: C
Factory outlets are a type of off-price retailer that is owned and operated by a manufacturer and carries
one line of merchandise––its own.
PTS: 1
REF: 236
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
47.
Which of the following statements about restaurants is true?
Restaurants are clearly a retailing establishment.
There is a strong demand for many more restaurants.
The demographic issue of time-poor consumers has led to a growing demand for
restaurants.
Because barriers to entry are low, the restaurant business appeals to many people.
Restaurants are clearly a service industry.
ANS: D
According to the text, restaurants straddle the line between a retailing establishment and a service
industry. Time poverty is not a demographic factor. At the moment, food-service companies are generally
overexpanded.
PTS: 1
REF: 236
KEY: CB&E Model Distribution
OBJ: 15-3
TOP: AACSB Reflective Thinking
MSC: BLOOMS Evaluation
48.
_____ refers to shopping without visiting a store and is currently growing faster than instore shopping because of the consumer demand for convenience.
a. Nonstore retailing
b. Customerization
c. Hypershopping
d. Niche marketing
e. Specialty merchandising
ANS: A
Nonstore retailing is selling to consumers through other means than by visiting a store.
PTS: 1
REF: 237
KEY: CB&E Model Distribution
OBJ: 15-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
49.
Which of the following statements about nonstore retailing is true?
a. The nature of the communications between the retailer and the customer is the same in all
forms of nonstore retailing.
b. Nonstore retailing is currently growing faster than in-store retailing.
c. More than 80 percent of all sales are made through nonstore retailing.
62
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
d. The high growth rate for nonstore retailing is due to the growth of shop-at-home television
networks.
e. Nonstore retailing is increasing at a rate lower than in-store retailing.
ANS: B
Nonstore retailing refers to shopping without visiting a store; convenience is playing a major role in the
growth of nonstore business.
PTS: 1
REF: 237
KEY: CB&E Model Distribution
OBJ: 15-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Evaluation
50.
_____ is a low-profile yet important form of retailing in which consumers get products
out of automated machines, and it accounts for billions of dollars worth of goods each year in the United
States.
a. Automatic vending
b. Party-plan selling
c. Direct marketing
d. A pyramid scheme
e. Professional selling
ANS: A
Automatic vending is the use of machines to offer goods for sale.
PTS: 1
REF: 237
KEY: CB&E Model Distribution
OBJ: 15-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
51.
Which type of retailing is the selling of products by representatives who work door-todoor, office-to-office, or at home sales parties?
a. Personal marketing
b. Remote retailing
c. Direct retailing
d. Off-site retailing
e. Primary retailing
ANS: C
This is the definition of direct retailing.
PTS: 1
REF: 237
KEY: CB&E Model Distribution
OBJ: 15-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
52.
The manufacturer of Cutco knives uses students as salespeople. The salespeople go into
customers’ homes and demonstrate the product, and the sales transactions usually occur in a home setting.
This form of nonstore retailing is called:
a. direct retailing
b. personal marketing
c. direct marketing
d. automatic vending
e. electronic retailing
ANS: A
Direct retailing is the selling of products by representatives who work door-to-door, office-to-office, or at
home sales parties.
63
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
PTS: 1
REF: 237
KEY: CB&E Model Distribution
OBJ: 15-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
53.
Susan Adams makes children’s clothing. She is also the sales representatives and sets up
parties and fashion shows at homes of mothers to demonstrate the quality and value of her clothing. Susan
is using:
a. primary marketing
b. automatic vending
c. personal marketing
d. electronic retailing
e. direct retailing
ANS: E
Direct retailing includes door-to-door selling and party plans.
PTS: 1
REF: 237
KEY: CB&E Model Distribution
OBJ: 15-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
54.
_____ refers to the techniques used to get consumers to buy from their home. Those
techniques include direct mail, catalogs and mail-order, telemarketing, and electronic retailing.
a. Nonstore vending
b. In-home retailing
c. Franchising
d. Direct marketing
e. Direct retailing
ANS: D
Direct marketing includes techniques, such as catalogs and telemarketing, to get consumers to make a
purchase from their home, office, or other nonretail setting.
PTS: 1
REF: 238
KEY: CB&E Model Strategy
OBJ: 15-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
55.
Marketers can precisely target their customers according to demographics, geographics,
and psychographics with:
a. direct mail
b. vending machines
c. franchise stores
d. specialty retail outlets
e. electronic selling
ANS: A
Good mailing lists come from an internal database or from list brokers.
PTS: 1
REF: 238
KEY: CB&E Model Strategy
OBJ: 15-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
56.
_____ is the use of the telephone to sell directly to consumers.
a. Telemarketing
b. Two-way vending
64
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
c. Teleprompting
d. Indirect marketing
e. Phone vending
ANS: A
This is the definition of telemarketing.
PTS: 1
REF: 238
KEY: CB&E Model Strategy
OBJ: 15-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
57.
Telemarketing can consist of either unsolicited _____ sales calls, or _____ sales calls,
which allow companies to receive orders through toll-free telephone numbers.
a. order placement; lead generation
b. push strategy; pull strategy
c. systematic; synergistic
d. qualifying; finalizing
e. outbound; inbound
ANS: E
Outbound telemarketing is generally used for unsolicited selling, while inbound calls are from customers
placing orders.
PTS: 1
REF: 238
KEY: CB&E Model Strategy
OBJ: 15-4
TOP: AACSB Technology
MSC: BLOOMS Comprehension
58.
Amy received a phone call last night during supper. The caller wanted her to attend a
meeting to learn about timeshares. Since Amy had never thought of purchasing this type of product before
she received the call, this is obviously an example of _____ telemarketing.
a. outbound
b. lead generation
c. customer service
d. inbound
e. relationship
ANS: A
Outbound telemarketing is generally used for unsolicited selling.
PTS: 1
REF: 238
KEY: CB&E Model Strategy
OBJ: 15-4
TOP: AACSB Technology
MSC: BLOOMS Application
59.
The Mad Stencilist has decided to demonstrate how to use its products to create custom
gift tags on a local cable television channel and is encouraging shoppers to call a toll-free number to
purchase the merchandise with a credit card. This form of retailing is called a(n):
a. in-store electronic shopping
b. videotex
c. shop-at-home network
d. electronic point of sale
e. catalog viewing
ANS: C
Using a television channel to display goods that are sold over the phone is the shop-at-home network
format.
65
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
PTS: 1
REF: 239
KEY: CB&E Model Strategy
a.
b.
c.
d.
e.
OBJ: 15-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
60.
_____ is a type of shopping available to consumers with access to the Internet.
Shop-at-home networks
Online retailing
Franchising
Electronic wholesaling
Mobile vending
ANS: B
Online retailing is also called e-tailing and is a type of shopping available to consumers with access to the
Internet.
PTS: 1
REF: 239
KEY: CB&E Model Distribution
OBJ: 15-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
61.
The Cedar Store carries a full line of cedar swings, gliders, garden benches, and tables.
All of its products can be purchased through its Web site. The site has done well since the Cedar Store’s
products do not need to be touched or smelled before purchase. The Cedar Store is engaging in:
a. online retailing
b. shop-at-home networking
c. mobile vending
d. franchising
e. electronic wholesaling
ANS: A
Online retailing is a two-way interactive service offered to users with personal computers.
PTS: 1
REF: 239
KEY: CB&E Model Distribution
OBJ: 15-4
TOP: AACSB Technology
MSC: BLOOMS Application
62.
A(n) _____ is a continuing relationship in which an individual or business grants
business rights to operate or sell a product to another individual or business.
a. leasing contract
b. alliance for profit
c. brokered partnership
d. franchise
e. countertrade
ANS: D
The franchisor grants the rights to the franchisee.
PTS: 1
REF: 241
KEY: CB&E Model Distribution
OBJ: 15-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
63.
Who is the originator of a trade name, product, methods of operation, and so on that
grants operating rights to another party to sell its product?
a. The renter
b. The lessor
66
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
c. The franchisor
d. The franchisee
e. The owner/operator
ANS: C
The franchisor grants rights to the franchisee in franchise relationships.
PTS: 1
REF: 241
KEY: CB&E Model Distribution
OBJ: 15-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
64.
The party in a franchise relationship that is an individual or business granted the right to
sell another party’s product is called the:
a. franchisor
b. franchisee
c. receiver
d. renter
e. owner/operator
ANS: B
The franchisee sells the franchisor’s products.
PTS: 1
REF: 241
KEY: CB&E Model Distribution
OBJ: 15-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
65.
Which form of franchising involves a dealer agreeing to sell certain products provided by
a manufacturer or a wholesaler?
a. Primary franchising
b. Product and trade name franchising
c. Business format franchising
d. Limited franchising
e. Focused franchising
ANS: B
This describes product and trade name franchising. Examples include Coca-Cola bottlers and retailers
selling Michelin tires.
PTS: 1
REF: 241
KEY: CB&E Model Distribution
OBJ: 15-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
66.
Chattanooga Bottling Company is licensed to bottle Coke products. The Chattanooga
Bottling Company is an example of a:
a. product and trade name franchisee
b. redistributor franchisor
c. business format franchisee
d. licensed franchisor
e. relationship franchisee
ANS: A
In product and trade name franchising, a dealer agrees to sell certain products provided by a manufacturer
or wholesaler.
PTS: 1
REF: 241
OBJ: 15-5
67
TOP: AACSB Reflective Thinking
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
KEY: CB&E Model Distribution
67.
a:
a.
b.
c.
d.
e.
MSC: BLOOMS Application
A retailer in Winnsboro, Louisiana, is licensed to sell John Deere tractors. This retailer is
product and trade name franchisee
restricted franchisor
business format franchisee
licensed franchisor
relationship franchisee
ANS: A
In product and trade name franchising, a dealer agrees to buy or sell certain products or product lines
from a supplier.
PTS: 1
REF: 241
KEY: CB&E Model Distribution
OBJ: 15-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
68.
Which form of franchising is an ongoing business relationship between a franchisor and a
franchisee where the franchisor “sells” a franchisee the rights to use the franchisor’s approach to doing
business?
a. Primary franchising
b. Product and trade name franchising
c. Business format franchising
d. Process franchising
e. Service franchising
ANS: C
This describes business format franchising. Examples include restaurant, hotel and motel, printing, and
real estate franchises.
PTS: 1
REF: 241
KEY: CB&E Model Distribution
OBJ: 15-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
69.
Domino’s pizza, Hyatt Corporation, and Wendy’s are all examples of _____ because the
franchisee buys the right to use the franchisor’s approach to doing business.
a. product and trade name franchisors
b. redistributor franchisors
c. business format franchisors
d. licensed franchisors
e. relationship franchisors
ANS: C
Business format franchising is an ongoing relationship between a franchisor and a franchisee in which the
franchisor sells a franchisee the rights to use a format or approach to doing business.
PTS: 1
REF: 241
KEY: CB&E Model Distribution
OBJ: 15-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
70.
Arby’s, Jiffy-Lube, Baskin-Robbins, and Sylvan Learning Centers are examples of _____
because the franchisee buys the right to use the franchisor’s approach to doing business.
a. trade name franchising
68
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
b.
c.
d.
e.
product franchising
business format franchising
franchise wholesaling
logistic franchising
ANS: C
Business format franchising is an ongoing relationship between a franchisor and a franchisee in which the
franchisor sells a franchisee the rights to use a format or approach to doing business.
PTS: 1
REF: 241
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 15-5
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
71.
The first task of developing a retail strategy is to:
create a buying organization
decide what to buy
define the target market
create a promotional strategy
define the pricing policies
ANS: C
The target market’s wants and needs form the foundation for a successful retail strategy.
PTS: 1
REF: 241
KEY: CB&E Model Strategy
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
72.
Retailers control the six Ps of the retailing mix. The six Ps include the marketing mix
plus:
a. presentation and personnel
b. production and people
c. potential and perception
d. personality and persuasion
e. positioning and purchasing
ANS: A
See Exhibit 15.3.
PTS: 1
REF: 242
KEY: CB&E Model Strategy
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
73.
Retailers such as Target and JCPenney are responding to consumer needs by changing
product mixes, hours of operation, locations, and prices. These stores are changing aspects of their:
a. merchandising groupings
b. retailing mixes
c. product offerings
d. retail trade areas
e. store positioning strategies
ANS: B
Retailers are altering several aspects of the six Ps of the retailing mix. See Exhibit 15.3.
PTS: 1
REF: 242
KEY: CB&E Model Strategy
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
69
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
a.
b.
c.
d.
e.
74.
The merchandise mix:
is the term used for price-bundled merchandise
is the term for the marketing communications used by retailers
refers to the six levels in a buying organization
describes the composition of a traditional shopping center
is the retailer’s product offering
ANS: E
The retailer’s product offering is the mix of products offered to the consumers, also called the product
assortment or merchandise mix.
PTS: 1
REF: 242
KEY: CB&E Model Strategy
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
75.
Which of the following statements about a retailer’s promotion strategy is true?
a. The design of the promotion strategy would be done separately from the creation of the
retailing mix.
b. The goal of a retail store’s promotion mix is to position the store in consumers’ minds.
c. Most advertising for retailers is carried out at the national level.
d. Retailers find direct mail marketing inefficient.
e. Retail promotion strategy does not include public relations activities.
ANS: B
Promotion is part of the retailing mix and includes advertising, public relations and publicity, and sales
promotions. Most advertising for retailers is carried out at the local level. Retailers have been very
successful with direct marketing.
PTS: 1
REF: 243
KEY: CB&E Model Promotion
a.
b.
c.
d.
e.
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Evaluation
76.
Why is the selection of a retail location so critical to a store’s success?
Location affects pricing decisions but does not affect store image.
Customers will not drive out of their way to find a store.
A location decision ties up funds that will not appreciate or gain in value.
A location decision typically requires long-term commitment of resources.
Employee density is affected by the area in which the store is located.
ANS: D
One critical point about location choice is that it ties up a large amount of resources and is difficult to
change.
PTS: 1
REF: 243
KEY: CB&E Model Strategy
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Evaluation
77.
When opening a new retail operation, the retailer needs to consider all of the following
factors EXCEPT:
a. traffic flow
b. employee density
c. nature of the competition
d. land costs
70
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
e. economic growth potential
ANS: B
Employee density is concerned with the amount of employees per 1,000 square feet in the store––not in
the neighborhood. The other four factors are to be considered when deciding on a location.
PTS: 1
REF: 243-244
KEY: CB&E Model Strategy
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
78.
Banana Republic stores are usually built in shopping centers, but in a few cities the
company has chosen to build a stand-alone store. Its freestanding store entices customers to shop because
it:
a. contains merchandise different from that offered in other Banana Republic stores
b. is near a shopping center
c. has greater visibility to customers than it would in a shopping center
d. is an off-price retailing operation for the store chain
e. is most likely a franchise that offers lower prices than the shopping center locations
ANS: C
Stand-alone stores often have greater visibility and easier access than those in a mall location.
PTS: 1
REF: 244
KEY: CB&E Model Distribution
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
79.
Large retailers such as Target and Walmart and sellers of shopping goods such as
automobiles and furniture often use _____ for their locations.
a. remote, rural locations
b. office complexes
c. factory outlets
d. freestanding stores
e. regional malls
ANS: D
Freestanding stores are often used by large retailers.
PTS: 1
REF: 244
KEY: CB&E Model Distribution
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
80.
_____ are stores that consumers purposely plan to visit. They are often built as
freestanding stores.
a. Destination stores
b. Benefit retailers
c. Relationship builders
d. Lifestyle stores
e. M-stores
ANS: A
Consumers seek out destination stores.
PTS: 1
REF: 244
KEY: CB&E Model Distribution
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
71
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
81.
Maggie Moo’s has decided that consumers will drive out of their way for the store’s
yummy ice cream offerings. The owner needs to keep his overhead costs (such as rent) low and wants to
avoid locating near competitors. For a location, Maggie Moo’s should open in a:
a. factory outlet
b. strip center
c. freestanding store
d. shopping center
e. regional mall
ANS: C
A freestanding store has the advantage of low site costs and will be a benefit if consumers are willing to
seek it out.
PTS: 1
REF: 244
KEY: CB&E Model Strategy
a.
b.
c.
d.
e.
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
82.
Another name for an anchor store is a:
mass merchandiser
generator store
host store
shopping center pillar
destination store
ANS: B
Anchor stores or generator stores are usually located at opposite ends of the mall to create heavy foot
traffic.
PTS: 1
REF: 244
KEY: CB&E Model Distribution
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
83.
Anchor stores:
a. are the stores within the mall that sell services rather than products
b. are often large department stores that are located at opposite ends of a mall to create a
heavy pedestrian traffic flow
c. usually specialize in high-priced items like furniture
d. is the generic name given to supermarkets that are located within shopping malls
e. is a term for retail stores that “drop off” to freestanding locations
ANS: B
This describes anchor (or generator) stores.
PTS: 1
REF: 244
KEY: CB&E Model Distribution
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
84.
When JCPenney announced it would open a 97,000-plus square foot anchor store in the
new West Grand Promenade, it meant that JCPenney would be:
a. the only large store in the shopping center
b. a destination store
c. expected to create heavy foot traffic for the center
d. in an isolated location outside the shopping center structure
e. unable to control the local store’s pricing policies
72
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
ANS: C
There is typically more than one anchor store in any mall. Freestanding stores are destination stores.
PTS: 1
REF: 244
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
85.
The newest generation of shopping centers is:
regional malls
shopping business districts
lifestyle centers
franchised centers
strip malls
ANS: C
Lifestyle centers are open-air shopping centers targeted to upper-income shoppers with an aversion for the
“the mall.”
PTS: 1
REF: 244
KEY: CB&E Model Distribution
a.
b.
c.
d.
e.
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
86.
Pop-up shops are:
Web sites that pop up while you are visiting a site
m-commerce
convenience retailing
e-business
temporary retail establishments
ANS: E
Pop-up shops are temporary shops that allow a flexible location without a long-term commitment.
PTS: 1
REF: 244
KEY: CB&E Model Distribution
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Comprehension
87.
The Halloween Super Store is only open from September until November, usually in an
otherwise vacant store. This is an example of a:
a. temp store
b. m-commerce
c. convenience retailing
d. pop-up shop
e. flash store
ANS: D
Pop-up shops are temporary shops that allow a flexible location without a long-term commitment.
PTS: 1
REF: 244
KEY: CB&E Model Distribution
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
88.
The overall impression conveyed by a store’s physical layout, decor, and surroundings is
referred to as the store’s:
a. atmosphere
b. merchandising mix
73
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
c. aura
d. position
e. positioning
ANS: A
This is the definition of atmosphere.
PTS: 1
REF: 245
KEY: CB&E Model Strategy
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
89.
Many technologically advanced retailers are using a technique called _____ to analyze
the huge amounts of data collected through their point-of-purchase scanning equipment that will enable
them to better meet the needs of customers.
a. market-basket analysis
b. simulated test marketing
c. product/customer correlation analysis
d. market cross-tabulations
e. customer lifestyle analysis
ANS: A
The analysis looks for products that are commonly purchased together to help retailers merchandise their
stores to place products in the right places.
PTS: 1
REF: 245
KEY: CB&E Model Strategy
a.
b.
c.
d.
e.
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
90.
All of the following are factors in creating a store’s atmosphere EXCEPT:
employee type and density
fixture type and density
sound
price
odors
ANS: D
Influential factors in creating a store’s atmosphere include employee type and density, merchandise type
and density, fixture type and density, sound, odors, and visual factors.
PTS: 1
REF: 245-246
KEY: CB&E Model Strategy
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Analysis
91.
When you walk into an Apple store, you are immediately greeted by a clerk. The store is
simply designed with layouts where you can experience products such as iMacs, iPhones, a variety of
iPods, cameras, printers, and other accessories. If you have questions about the products, you can visit the
Genius Bar. There is a place where kids can play and experience Mac to by sitting on big round cushy
chairs. This description is of the store’s:
a. customer service strategy
b. atmosphere
c. target strategy
d. merchandise mix
e. promotional strategy
ANS: B
74
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
The main element of a store’s presentation is its atmosphere, how the store’s physical layout, decor, and
surroundings convey an overall impression.
PTS: 1
REF: 245-246
KEY: CB&E Model Strategy
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
92.
Home Depot has selected orange as its corporate color. It’s a good choice. At the gut
level, orange connotes happiness and warmth. A recent article in one of the company’s advertising
brochures spoke about choosing colors for home decorating. It referred to this color as “joyful orange.”
The color orange is part of the _____ at Home Depot stores.
a. cultural impact
b. atmosphere
c. target strategy
d. merchandise mix
e. promotional strategy
ANS: B
Color is a main ingredient of a retail atmosphere.
PTS: 1
REF: 246
KEY: CB&E Model Strategy
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
93.
Persuading customers to buy a higher-priced item than they originally intended to buy is
referred to as:
a. suggestion selling
b. trading up
c. conversion selling
d. relationship marketing
e. interactive selling
ANS: B
To avoid selling customers something they do not need or want, however, salespeople should take care
when practicing trading-up techniques.
PTS: 1
REF: 246
KEY: CB&E Model Promotion
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
94.
When Irvin went into Lowe’s to buy his wife a small tool set she said she wanted, the
sales clerk suggested a larger set with a tool kit on wheels that included a router and circular saw. In this
example, the sales clerk engaged in:
a. suggestion selling
b. trading up
c. bait and switch
d. customer relationship retailing
e. service-disguised selling
ANS: B
Trading up means persuading customers to buy a higher-priced item than the one they intended to buy.
PTS: 1
REF: 246
KEY: CB&E Model Promotion
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
75
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
95.
A common practice among most retailers that seeks to broaden customers’ original
purchases with related items is called:
a. suggestion selling
b. trading up
c. bait and switch
d. comprehensive selling
e. interactive selling
ANS: A
Suggestion selling is common in helping customers recognize true needs.
PTS: 1
REF: 246
KEY: CB&E Model Promotion
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge
96.
Whenever a customer opens an account at First Southern National Bank, a teller or
account representative asks the customer whether he or she needs a CD, online banking, or other services.
In other words, the account representative engages in:
a. suggestion selling
b. trading up
c. bait and switch
d. customer relationship retailing
e. service-disguised selling
ANS: A
Suggestion selling seeks to broaden customers’ original purchase with related items.
PTS: 1
REF: 246
KEY: CB&E Model Promotion
97.
to:
a.
b.
c.
d.
e.
OBJ: 15-6
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
Interactivity is one of the new developments in retailing. In retailing, interactivity refers
the use of improved communications with customers
a new form of customer relationship marketing
entertainment for customers to get them involved
the use of information kiosks
the creation of a static atmosphere
ANS: C
Interactivity is more than just entertaining customers, it is an attempt to get them involved.
PTS: 1
REF: 246
KEY: CB&E Model Strategy
OBJ: 15-7
TOP: AACSB Technology
MSC: BLOOMS Knowledge
98.
Build-a-Bear is a retailer where children can design and assemble a stuffed animal from
shelves full of parts. Each child starts by choosing an animal. Then, the child moves to a place where the
stuffing is added. Finally, the child moves to the area where the last accessories are added. Build-a-Bear is
part of a recent trend in retailing referred to as:
a. nonstore retailing
b. m-commerce
c. convenience retailing
76
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
d. e-business
e. interactivity
ANS: E
Retailers use interactivity in stores to differentiate themselves from the competition. Interactivity gets
customers involved in the retailing experience.
PTS: 1
REF: 246
KEY: CB&E Model Distribution
OBJ: 15-7
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
99.
One of the new developments in retailing is m-commerce. The “m” in m-commerce
stands for:
a. motivated
b. multimedia
c. marketing
d. managed
e. mobile
ANS: E
M-commerce, or “mobile” e-commerce enables consumers using wireless mobile devices to connect to
the Internet and shop.
PTS: 1
REF: 246
KEY: CB&E Model Strategy
OBJ: 15-7
TOP: AACSB Technology
MSC: BLOOMS Knowledge
100.
One of the new developments in retailing is m-commerce. M-commerce refers to the
ability to:
a. use unique communication techniques to send advertising messages
b. create situations in which the AIDA technique is effective
c. more efficiently manage customer demand with inventory
d. shop using wireless mobile devices
e. motivate consumers to buy more by creating more feedback channels
ANS: D
M-commerce goes beyond text message advertisements to allow consumers to purchase goods and
services by using wireless mobile devices.
PTS: 1
REF: 246
KEY: CB&E Model Strategy
OBJ: 15-7
TOP: AACSB Technology
MSC: BLOOMS Knowledge
101.
At the American Girl store in Chicago, dolls can be purchased and girls can then go to the
American Girl Cafe or American Girl Theatre and even have birthday parties. This is an example of
using:
a. nonstore retailing
b. m-commerce
c. convenience retailing
d. e-business
e. interactivity
ANS: E
Interactivity is used to differentiate one store from another. Interactivity gets customers involved in the
retailing experience.
77
MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]
PTS: 1
REF: 246
KEY: CB&E Model Distribution
OBJ: 15-7
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application
78