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Which of the following describes the activities that play an important role in connecting brands to consumers in the final phases of the buying process?
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Part 1
A.
Warehousing
B.
Wholesaling
C.
Manufacturing
D.
Shopper marketing
E.
Retailing
E.
Retailing
________ carry narrow product lines with deep assortments within those lines.
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Part 1
A.
Superstores
B.
Specialty stores
C.
Discount stores
D.
Department stores
E.
Convenience stores
B.
Specialty stores
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Part 1
Which of the following statements is correct regarding store retailing?
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Part 1
A.
Full-service retailers such as high-end specialty stores (for example, Tiffany or Williams-Sonoma) and high-quality department stores tend to have lower operating costs and charge higher prices.
B.
Discount stores carry standard merchandise sold at lower prices, higher margins, and lower volumes.
C.
Convenience stores carry a limited line of low-turnover convenience goods.
D.
Supermarkets are the most frequently visited type of retail store, but their sales growth is slowing.
E.
Off-price retailers include superstores, supercenters, and category killers.
D.
Supermarkets are the most frequently visited type of retail store, but their sales growth is slowing.
Which of the following is NOT correct regarding franchising?
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Part 1
A.
Franchising limits growth opportunities for brands with a unique value proposition.
B.
Franchising has been prominent for fast-food restaurants, motels, and fitness centers.
C.
A franchise is a contractual agreement.
D.
Franchise systems are usually based on a unique product or service, method of doing business, or trade name, goodwill, or patent.
E.
Franchisees buy the right to own and operate one or more units in the franchise system.
A.
Franchising limits growth opportunities for brands with a unique value proposition.
.REI, Williams-Sonoma, and LensCrafters are examples of ________, stores that carry a narrow product line with a deep assortment.
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Part 1
A.
discount stores
B.
off-price retailers
C.
service retailers
D.
supermarkets
E
specialty stores
E
specialty stores
Hotels and motels, banks, airlines, restaurants, colleges, hospitals, movie theaters, tennis clubs, bowling alleys, repair services, hair salons, and dry cleaners are all examples of ________.
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Part 1
A.
franchises
B.
wholesalers
C.
service retailers
D.
specialty stores
E.
non-retailers
C.
service retailers
Direct mail marketing ________.
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Part 1
A.
offers no advantages over digital approaches
B.
has increased during the last decade
C.
is faster than the newer digital marketing approaches
D.
is cheaper than the newer digital marketing approaches
E.
is still heavily used by most retailers
E.
is still heavily used by most retailers
Which of the following is true regarding omni-channel buyers?
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Part 1
A.
They do not shift easily across online and in-store channels.
B.
They prefer the online environment.
C.
They shift easily across online and in-store channels.
D.
They always shop in-store channels, then order online.
E.
They purchase online but tend to purchase more in-store.
C.
They shift easily across online and in-store channels.
The massive shift in how and where people buy calls for _________.
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Part 1
A.
massive spending increases in advertising and sales promotion
B.
massive shifts in how store retailers operate
C.
massive shifts to online-only environments for brick-and-mortar retailers
D.
massive shifts in pricing strategies
E.
massive spending in social media for brick-and-mortar retailers
B.
massive shifts in how store retailers operate
Retailers must decide on which three major product variables?
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Part 1
A.
Product assortment, store atmosphere, and price
B.
Product assortment, price, and location
C.
Product assortment, services mix, and location
D.
Product assortment, services mix, and store atmosphere
E.
Product assortment, services mix, and price
D.
Product assortment, services mix, and store atmosphere
After segmenting and defining their target markets, retailers must then decide ________.
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Part 1
A.
on the product assortment and volume they will stock
B.
on pricing by product line and assortment
C.
on the level of service they will provide
D.
how they will differentiate and position themselves
E.
on the store atmosphere and shopping experience
D.
how they will differentiate and position themselves
________ let retailers personalize offers to individual customers with carefully targeted messages.
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Part 1
A.
New-store openings
B.
Public service activities
C.
Digital promotions
D.
Newspaper inserts
E.
In-store demonstrations
C.
Digital promotions
Which of the following statements about major retail trends is true?
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Part 1
A.
The green movement has not yet affected retailing.
B.
Retailers are faced with an increasingly uncertain and disruptive business environment.
C.
Retail convergence has decreased competition for retailers.
D.
The lifecycle of new retail forms is increasing.
E.
The global expansion of major retailers into other countries has slowed down.
B.
Retailers are faced with an increasingly uncertain and disruptive business environment.
Which of the following statements about retailer marketing mix decisions is NOT correct?
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Part 1
A.
Retailers can differentiate themselves on their service mix.
B.
Location is one of the least important decisions in retail.
C.
Most retailers seek either high markups on lower volume or low markups on higher volume.
D.
Many retailers are now practicing experiential retailing.
E.
The product assortment should differentiate the store and match target shoppers' expectations.
B.
Location is one of the least important decisions in retail.
________ are smaller, open-air malls with upscale stores, convenient locations, and nonretail activities, such as a playground, skating rink, hotel, dining establishments, and a movie theater complex.
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Part 1
A.
Regional shopping malls
B.
Power centers
C.
Lifestyle centers
D.
Neighborhood shopping centers
E.
Community shopping centers
C.
Lifestyle centers
Macy's, Kohl's, and JCPenney practice a retailing pricing strategy called "high-low pricing." Which of the following correctly describes high-low pricing?
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Part 1
A.
The retailer does not have to run sales on selected items.
B.
Retailers charge an everyday low price with no special promotions.
C.
The retailer charges higher prices on an everyday basis, coupled with frequent sales and other price promotions.
D.
Some products are priced high, others are priced low, and still others are priced at bargain-basement levels.
E.
Retailers do not have to use promotions.
C.
The retailer charges higher prices on an everyday basis, coupled with frequent sales and other price promotions.
A ________ has from 50 to more than 100 stores, including two or more full-line department stores.
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Part 1
A.
lifestyle center
B.
neighborhood shopping center
C.
community shopping center
D.
strip mall
E.
regional shopping mall
E.
regional shopping mall
The Great Recession of 2008-2009 had a profound effect on the economy and consumers. Of the following, which represents one of the major consumer trends resulting from the Great Recession?
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Part 1
A.
It restricted retail expansion domestically and internationally.
B.
It created a trend away from consumer spending on well-known brands.
C.
It turned free-spending consumers into value-seeking ones.
D.
It forced consumers to become omni-channel shoppers.
E.
It turned brick-and-mortar retailers into Internet-only retailers.
C.
It turned free-spending consumers into value-seeking ones.
Audi showrooms provide customers with tablets that allow them to select any car model and customize each element. They then put on a headset and earphones to experience the sights and sounds of their customized car. They can move around the outside of the car, open the trunk and doors, check under the hood, and even sit in the driver's seat. Which advance in retail technology does this exemplify?
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Part 1
A.
RFID
B.
Experiential marketing
C.
Retail convergence
D.
Augmented reality
E.
Virtual reality
E.
Virtual reality
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Part 1
Which of the following statements about wholesaling is true?
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Part 1
A.
Wholesalers do not need to define a target market.
B.
Wholesalers do not make positioning decisions.
C.
Wholesalers do not need to differentiate themselves.
D.
Wholesalers must make decisions regarding their marketing mix.
E.
Wholesalers do not need to segment their markets.
D.
Wholesalers must make decisions regarding their marketing mix.
Which of the following types of wholesalers are independently owned businesses that take title to all merchandise handled?
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Part 1
A.
Brokers
B.
Rack jobbers
C.
Manufacturers' agents
D.
Industrial distributors
E.
Merchant wholesalers
E.
Merchant wholesalers
Which of the following statements is NOT correct regarding wholesalers and wholesaling?
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Part 1
A.
Brokers bring buyers and sellers together for negotiations and take title to goods.
B.
Merchant wholesalers are the largest group of wholesalers, accounting for roughly 50% of all wholesaling.
C.
Merchant wholesalers take title to the merchandise they handle.
D.
Manufacturers' branch offices are used when the company does not wish to use independent wholesalers.
E.
Agents represent buyers or sellers on a relatively permanent basis and do not take title to goods.
A.
Brokers bring buyers and sellers together for negotiations and take title to goods.
Which of the following statements is correct regarding the functions of wholesalers?
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Part 1
A.
Wholesalers absorb risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence.
B.
Using wholesalers slows delivery time.
C.
Wholesalers buy small quantities which they combine into larger lots.
D.
Wholesalers do not get involved in financing.
E.
Wholesalers rely on suppliers and customers for marketplace information.
A.
Wholesalers absorb risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence.
By performing the channel function of ________, wholesalers' sales forces help manufacturers reach many small customers at a low cost.
Question content area bottom
Part 1
A.
financing
B.
risk bearing
C.
bulk-breaking
D.
buying and assortment building
E.
selling and promoting
E.
selling and promoting
Which channel partners in a company's supply chain are upstream from a manufacturer or producer?
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Part 1
A.
Retailers
B.
Suppliers
C.
Customers
D.
Business distributors
E.
Wholesalers
B.
Suppliers
One key function performed by channel members is ________, which involves finding and engaging customers and prospective buyers.
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Part 1
A.
negotiating
B.
matching
C.
risk taking
D.
promotion
E.
contact
E.
contact
A direct marketing channel ________.
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Part 1
A.
does not sell via the internet
B.
sells directly to the consumer
C.
has the greatest channel length
D.
has a maximum of 5 intermediary levels
E.
has at least 1 intermediary level
B.
sells directly to the consumer
Which of the following is a reason that producers use marketing channels and channel intermediaries?
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Part 1
A.
Marketing channel decisions only require a short-term commitment.
B.
Using marketing channels allows producers to retain control over how and to whom they sell their products.
C.
The reduced costs of using channel intermediaries offsets the inefficiencies of marketing channels.
D.
Using channel intermediaries increases the number of contacts with customers.
E.
Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
E.
Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
Which of the following indicates the length of a channel?
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Part 1
A.
The number of final consumers in the channel
B.
The number of retailers in the channel
C.
The number of intermediary levels in the channel
D.
The number of producers in the channel
E.
The number of wholesalers in the channel
C.
The number of intermediary levels in the channel
A(n) _______ consists of producers, wholesalers, and retailers acting as a unified system.
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Part 1
A.
distribution center
B.
administered vertical marketing system
C.
vertical marketing system
D.
conventional distribution channel
E.
channel level
C.
vertical marketing system
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent?
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Part 1
A.
Manufacturer-sponsored retailer franchise system
B.
Corporate VMS
C.
Conventional distribution channel
D.
Contractual VMS
E.
Administered VMS
E.
Administered VMS
Tesla sells its cars online and through a network of company-owned Tesla stores or "galleries." Which type of vertical marketing system (VMS) has Tesla established?
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Part 1
A.
A conventional distribution channel
B.
A franchise
C.
A contractual VMS
D.
A corporate VMS
E.
An administered VMS
D.
A corporate VMS
When a product or service producer cuts out intermediaries and goes directly to final buyers or when radically new types of channel intermediaries displace traditional ones this is called ________.
Question content area bottom
Part 1
A.
multichannel distribution
B.
vertical channel conflict
C.
franchising
D.
horizontal conflict
E.
disintermediation
E.
disintermediation
Target partners with CVS Health, which operates CVS pharmacies and Minute Clinics in Target stores through a store-within-a-store format. Which type of channel arrangement does this represent?
Question content area bottom
Part 1
A.
A franchise organization
B.
A contractual VMS
C.
A corporate VMS
D.
An administered VMS
E.
A horizontal marketing system
E.
A horizontal marketing system
Which type of distribution strategy involves stocking the product in as many outlets as possible?
Question content area bottom
Part 1
A.
Direct
B.
Franchise
C.
Exclusive
D.
Intensive
E.
Selective
D.
Intensive
When a company uses more than one but fewer than all of the intermediaries who are willing to carry a company's products it is engaging in ________ distribution.
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Part 1
A.
selective
B.
intensive
C.
franchise
D.
exclusive
E.
direct
A.
selective
Producers of ________ typically use intensive distribution for their products.
Question content area bottom
Part 1
A.
home appliance brands
B.
luxury brands
C.
consumer electronics
D.
convenience products
E.
furniture
D.
convenience products
After first analyzing consumer needs, what is the next step in marketing channel design?
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Part 1
A.
Evaluate major channel alternatives.
B.
Set channel objectives.
C.
Identify the number of intermediaries to use.
D.
Identify the responsibilities of channel intermediaries.
E.
Identify the types of intermediaries to use.
B.
Set channel objectives.
When setting channel objectives, companies should state the objectives in terms of ________.
Question content area bottom
Part 1
A.
the length of the channel
B.
competitors' objectives
C.
targeted levels of customer service
D.
exclusive distribution arrangements
E.
expected profitability
C.
targeted levels of customer service
Exclusive dealing occurs when ________.
Question content area bottom
Part 1
A.
the buyer agrees to sell only in its own territory
B.
the seller drops a dealer without cause
C.
producers of a strong brand sell it to dealers only if the dealers will take some or all of the rest of its line
D.
the seller requires that exclusive dealers not handle competitors' products
E.
the producer agrees not to sell to other dealers in a given area
D.
the seller requires that exclusive dealers not handle competitors' products
Producers of a strong brand sometimes sell it to dealers only if the dealers will take some or all of the rest of its line. This is known as full-line forcing. Which of the following statements is true regarding full-line forcing?
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Part 1
A.
It is only legal in New York, California, and Texas.
B.
It is only illegal in Europe.
C.
It is always illegal.
D.
It may or may not be legal.
E.
It is always legal.
D.
It may or may not be legal.
Companies today see channel members as first-line customers and practice strong ________.
Question content area bottom
Part 1
A.
discount pricing strategies
B.
partner relationship management
C.
business-to-business selling
D.
trade promotion strategies
E.
consumer advertising strategies
B.
partner relationship management
_________ entails managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.
Question content area bottom
Part 1
A.
Distribution networks management
B.
Wholesaling
C.
Business distribution management
D.
Reseller networks
E.
Supply chain management
E.
Supply chain management
Which of the following is NOT correct regarding the strong emphasis companies place on marketing logistics today?
Question content area bottom
Part 1
A.
Improved logistics can be a powerful competitive advantage.
B.
Improvements in information technology and automation have created opportunities for major gains in distribution efficiency.
C.
The explosion in product variety has created a need for improved logistics management.
D.
Improved logistics can yield significant cost savings.
E.
Logistics has no impact on the environment and sustainability, so logistics managers do not have to pay attention to these concerns. Logistic systems can both maximize customer service and minimize distribution costs.
E.
Logistics has no impact on the environment and sustainability, so logistics managers do not have to pay attention to these concerns. Logistic systems can both maximize customer service and minimize distribution costs.
What should be the goal of a company's logistics system?
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Part 1
A.
To always offer a low level of customer service to keep costs down
B.
To maximize customer service and minimize distribution costs
C.
To provide a targeted level of customer service at the least cost
D.
To maximize service regardless of costs
E.
To maximize sales, not profits
C.
To provide a targeted level of customer service at the least cost
Which of the following describes a just-in-time logistics system?
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Part 1
A.
Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations.
B.
Just-in-time logistics systems ensure that new stock arrives at least one week before it is needed.
C.
Just-in-time logistics systems greatly increase inventory-carrying and inventory-handling costs.
D.
Just-in-time logistic systems eliminate the need for forecasting.
E.
Just-in-time logistics systems allow producers and retailers to carry large amounts of inventory.
A.
Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations.
Which of the following recognizes that improved logistics mandates teamwork across the company and the entire supply chain?
Question content area bottom
Part 1
A.
Reverse logistics management
B.
Integrated supply chain management
C.
Just-in-time logistics management
D.
Electronic data exchange
E.
Logistics information management
B.
Integrated supply chain management
In terms of multimodal transportation, the term fishyback refers to the use of which types of transportation?
Question content area bottom
Part 1
A.
Water and trucks
B.
Air and trucks
C.
Water and rail
D.
Rail and trucks
E.
Air and water
A.
Water and trucks
Note 
Flashcard (46)