1. Discuss the levels of brand loyalty.
2. What are family, individual, manufacturers’, captive, and private brands? What are some benefits of each alternative?
3. Discuss the four dimensions of the Young & Rubicam Brand Asset Valuator model.
4. Explain the difference between a brand manager and a category manager. Which is more common today?
5. Distinguish between a brand and a trademark.
6. Why do firms create brand extensions?
7. What are the four alternative approaches to new product development strategy? Explain each.
8. Identify and describe the consumer adoption process and its stages.
9. What product characteristics affect the rate of adoption of a new product?
10. Discuss the steps in the new product development process.
Chapter 13 (70)
Marketing Channels and Supply Chain Management
1. The two critical components of distribution strategy are ________ and ________.
a) marketing channels; logistics and supply-chain management
b) physical distribution; relationship marketing
c) location; cost
d) warehousing; transportation
2. Physical distribution extends beyond transportation to include all of the following decision areas except _____.
a) inventory control b) material handling c) risk analysis d) protective packaging
3. Marketing intermediaries are ________.
a) middlemen who operate between producers and consumers or business user
b) management consulting firms that advise producers on distribution strategy
c) “personal shoppers” who are paid to purchase products for busy customers and businesses
d) financial institutions that arrange for financing terms for business purchases
4. ^ as a marketing channel carries goods directly from producer to ________.
a) retail storage warehouse c) intermediary that will take title and possession
b) channel captain d) ultimate consumer or business purchaser
5. The term “industrial distributor” is essentially synonymous with the term ________.
a) wholesaler b) middle users c) franchiser d) retailer
6. Direct selling is most common ________.
a) with raw material purchases in the B2B marketplace
b) between retailers and consumers
c) more common with products that do not require installation
d) the best way to sell products that require little demonstration
7. Which of the following is an example of direct selling to the consumer market?
a) Purchase of hair care products from a beauty salon c) Gateway computers at Best Buy
b) Car purchase from a Honda dealer d) Party plan selling jewelry
8. Business customers are more geographically concentrated and fewer in number than individual consumers, which results in ________.
a) shorter business channels compared to consumer goods channels
b) moving products effectively through wholesale and retail markets simultaneously
c) reduction in price from producer to user
d) more middlemen and unique channel structures than consumer channels
9. The traditional marketing channel proceeds from producer to ________.
a) business user c) agent to business user
b) agent to wholesaler to retailer to customer d) wholesaler to retailer to consumer
10.Cynthia, a marketing director for a chemical company, is looking for an independent intermediary who will take title to the goods and provide sales, technical support, and customer service to business purchasers. Cynthia is looking for a(n) ________.
a) extended channel member b) industrial distributor c) direct seller d) reverse channel seller
11.Small producers in the industrial market may attempt to market their offerings to large wholesalers by utilizing agents that are called ________.
a) industrial distributors c) direct marketers
b) manufacturers’ representatives d) auction companies
12.In addition to traditional drug stores, Dr Scholl’s foot care company has decided to market through home medical care supply centers and telemarketing to podiatrists. This is an example of ________.
a) reverse marketing channels c) scrambled merchandising
b) home marketing d) dual distribution
13.The variables that affect the selection of a channel strategy include all of the following EXCEPT:
a) product characteristics c) legal and liability issues
b) the size of the producer and competitive environment d) market factors
14.One factor that would ordinarily result in a longer marketing channel is ________.
a) a product with a low level of technical complexity
b) a high level of geographic concentration of customers
c) the manufacturer’s desire to control the channel
d) the product’s need for specialized knowledge, technical information, and regular service
15.Which product would NOT be sold through a short channel?
a) Deck of cards c) Dairy products
b) Custom-made computer system d) Package of pretzels in a vending machine
16.A common, and often accurate, generalization is that the lower the unit price of the product, the ____.
a) more likely the product will be sold direct
b) shorter the channel will be
c) more likely its is that marketing channel length will not be affected
d) longer the channel will be
17.Marketing intermediaries are generally most beneficial to ________.
a) producers with wide product lines
b) well-financed national manufacturers
c) suppliers with a small and concentrated market of customers
d) a small producer trying to sell to large customers
18. Distribution intensity refers to ________.
a) tying agreements held with intermediaries
b) the amount of monthly cooperative advertising that a producer contracts with a retailer
c) the number of intermediaries through which a producer distributes goods within a particular market
d) the concentration of wholesalers carrying competing products in a given geography
19.When a selective distribution strategy is chosen by a firm, ________.
a) the firm seeks to distribute its products through all available channels in its trade areas
b) a single wholesaler or retailer in an area is granted exclusive rights to sell its line
c) only a limited number of retailers in a market area can handle its line
d) the number of product outlets available to the consumer is unlimited
20.Achieving cooperation that resolves conflict among marketing channel members is primarily the responsibility of the ________.
a) manufacturer b) channel captain c) channel power broker d) wholesaler
21.If KitchenAid established an electronic storefront where customers could purchase mixers and accessories from the company’s Web site, it would cause ________ with retailers.
a) vertical channel conflicts c) exclusive dealing agreements
b) horizontal channel conflicts d) tying agreements
22.Goods manufactured abroad and then sold in the U.S. market in competition with U.S. counterparts are called ________ goods.
a) black market b) inferior c) grey d) horizontal
23.Sherwin-Williams Paint Company sells the paint it manufactures through its company-owned retail paint stores. Their marketing channel is a(n) ________ marketing system.
a) corporate b) horizontal c) administered d) contractual
24.The difference between a retail cooperative and a wholesale-sponsored-voluntary chain is that the __.
a) wholesaler buys ownership shares of the retail operations
b) cooperative has private label brands
c) retailers purchase ownership shares of the cooperative
d) wholesaler-sponsored voluntary chain has contractual agreements
25.The supply chain begins with ________.
a) the finished good rolling off the end of the production line
b) firms seeking new markets for their products
c) the product being loaded aboard the rail car for shipment
d) the raw material inputs for the manufacturing process of a product
26.Managing warehouse and storage facilities is part of ________.
a) upstream supply chain management c) forward integration
b) backward integration d) downstream supply chain management
27.Technology that uses a tiny chip with identification information that can be read by a scanner from a distance is called ________.
a) RFID b) UPC c) enterprise resource technology d) logistics technology
28.Physical distribution elements include all of following EXCEPT:
a) customer service and order processing
b) inventory control and materials handling
c) raw material procurement and operations management
d) transportation and warehousing
29.Management at Granger Industries is evaluating their distribution system to determine if cost-cutting measures will impact performance) Ralph, an employee with experience in annual cost-cutting negotiations, suggests the company consider synergies between elements of the distribution system instead of judging each activity on its own merits. What Ralph is trying to avoid with the cuts is ________.
a) angering loyal customers c) losing their comparative advantage
b) suboptimization d) ignoring the customer-service standards
30.If a company attempts to reduce transportation costs by using low-cost, relatively slow water transportation, the result may be ________.
a) increased production costs c) increased inventory costs
b) decreased inventory costs d) decreased production costs
31.A condition in which the manager of each physical distribution function attempts to minimize costs but, due to the impact of one physical distribution task on the other, obtains less than optimal results is known as ________.
a) slow order processing c) inventory fluctuations
b) suboptimization d) a poor customer service standard
32.An example of a customer service standard is ________.
a) “We provide credit for good accounts; all others must pay cash.”
b) “Our purpose is to minimize time utility.”
c) “We will deliver orders within four days or less.”
d) “We maintain large inventories to ship dated goods.”
33.A home furnishings distributor needs to ship products to another warehouse 500 miles away. The company vans are needed for local deliveries, so the warehouse must call an outside carrier to ship the products. What type of freight carrier will the company most likely call?
a) Private carrier b) Common carrier c) Contract carrier d) Intermodal freight company
34. ________ is the form of transportation that has the lowest transport cost per ton.
a) Railroad b) Water freight, either barge or oceangoing c) Air freight d) Pipeline
35.The most efficient, if not the fastest, means of transporting products such as natural gas and crude oil is by ________.
a) water carrier b) piggyback c) pipeline d) bulk motor carrier
36.The highest-cost mode of transportation is ________.
a) overnight common carrier b) air freight c) non-stop rail express d) high pressure pipeline
37.Tractor trailers of products ride stacked on barges along the Mississippi River. When they reach shore, they will be attached to truck cabs and driven to warehouses hundreds of miles away. The first type of intermodal hauling is called ________.
a) birdyback service b) piggyback service c) fishyback service d) a double stack
38.The three forms of intermodal coordination are ________.
a) piggyback, fishyback, and birdyback c) carrier, inland, and express
b) port, sea, and air d) rail, truck, and boat
39.The major difference between a storage warehouse and a distribution warehouse is:
a) Storage warehouses attempt to balance supply and demand for producers and purchasers.
b) A distribution warehouse is used for products with seasonal supply or demand)
c) No major logistical differences exist.
d) Distribution warehouses store products for moderate to long periods of time)
Identify as having a short (a) or a long (b) distribution channel. (Boone, Table13.1)
40) business users 43) limited product line
41) small orders 44) perishable goods
42) geographically concentrated
Identify the direction of supply chain management:
a) = upstream, b) = downstream, c) = neither
45) raw materials
46) customer service
47) warehouse and storage
In comparing transportation modes consider that: (Boone, Figure 13.3)
a) = very low, b) = low, c) = average, d) = high, e) = very high
Rate the various modes on the basis of cost:
48) truck 49) water 50) pipeline
Chapter 13 — Marketing Channels and Supply Chain Management
1. Define a marketing intermediary. Give two examples.
2. Compare and contrast merchant wholesalers and agents/brokers. Provide an example of a wholesaler and an agent/broker.
3. What is dual distribution? What technological advances are increasing the use of dual distribution? Give two examples of dual distribution in the marketplace)
4. What are reverse channels? Why are they necessary?
5. List and explain the three levels of distribution intensity.
6. Describe the concept of channel captain within the marketing channel.
7. Discuss the two categories of channel conflict. Give an example of each.
8. What is a vertical marketing system? Distinguish between forward integration and backward integration.
9. Discuss the three types of contractual marketing systems (CMS).
10. Define supply chain, and describe a manufacturing supply chain.
11. What is RFID? What is its purpose?
12. Identify the elements of the physical distribution system and the questions each must address.
13. Define and discuss the concept of suboptimization.
14. Identify and describe the types of service provided by the three classes of freight carriers.
15. Identify and discuss in detail the major transportation alternatives.
16. What is the advantage of intermodal transportation? Give examples of intermodal hauling.
17. Discuss the concept of protective packaging and materials handling.
Chapter 14 (28)
Retailers, Wholesalers, and Direct Marketers
1. After identifying a target market, a retailer must ________.
a) develop marketing strategies to attract chosen customers to their stores
b) get sufficient funding to change all displays and store decor
c) contact new suppliers to purchase products that fit their target
d) develop new pricing strategies to increase the prestige image and value
2. The combination of all the components of the retailing mix results in a store’s ________.
a) retail economy c) retail prestige
b) projections of sales d) retail image
3. When developing a retail strategy, which task should be completed first?
a) Selecting a target market c) Establishing customer service standards
b) Determining a merchandising strategy d) Outlining a promotional strategy
4. General product categories, specific product lines, specific products within lines, and the depth and width of its assortment are considerations retailers must bear in mind when developing their ________.
a) “geographic fit” c) pricing strategy
b) target market d) merchandising strategy
5. The amount a retailer adds to the product’s cost to determine the selling price is called ________.
a) overhead expenses b) markup
c) markdown d) the return on investment objective
6. The Purple Pumpkin, a local women’s clothing store, buys formal gowns for an average of $75 each and prices them to sell for an average of $200. Purple Pumpkin’s average markup on the selling price for these gowns is ________ percent.
a) 37.5 b) 62.5 c) 100 d) 166.6+
7. A supervisor at a retail store directs an associate to mark down all merchandise currently selling for $9.98 to $5.98. The percentage of markdown (rounded to the nearest full percent) is ________ percent.
a) 25 b) 33 c) 40 d) 66
8. When a retailer tries to convince a customer to buy a higher-priced item than he or she had originally intended, it is called ________.
a) personal promotional c) selling up
b) one-on-one persuasion d) value-added selling
9. Reminding a customer that the flashlight they just purchased requires batteries (which you have available for sale) is an example of ________.
a) cross selling b) reminding c) customer service d) suggestion selling
10. The physical characteristics and amenities of a retail store that attract customers and satisfy their shopping needs is called ________.
a) atmospherics c) environmental psychographics
b) point-of-sale closure d) elements of place satisfaction
11. Independent retailers ________.
a) compete through retail cooperatives and friendly, personalized service
b) account for less than 25 percent of total retail sales
c) are few in number
d) have limited resources and inflexible operating hours, and are not knowledgeable about local market conditions
12. Consumers usually compare prices, assortments, and quality levels of competing outlets before making purchase decisions at ________.
a) department stores b) mass merchandisers c) specialty stores d) shopping stores
13. Nordstrom, Neiman Marcus, and Saks Fifth Avenue are all stores that are classified as ________ retailers.
a) shopping b) specialty c) lifestyle d) image
14. IKEA (home furnishings and housewares) and Pottery Barn are examples of ________.
a) superstores b) limited-line stores c) regional shopping stores d) anchor stores
15. A new kind of limited-line retailer has emerged over the past 15 years. These stores combine wide selection and low prices in a single product line and are known as ________.
a) economy limited line stores b) price killers c) category killers d) smorgasbord stores
16. All of the following retailers are considered to be category killers EXCEPT:
a) Best Buy b) Target c) Barnes & Noble d) Home Depot
17. A department store is a ________.
a) series of limited-line retail stores that benefit from close proximity to one another
b) supermarket of product lines offering the lowest price possible
c) large display of rooms that contain samples of products stored in a warehouse
d) series of limited-line or specialty stores gathered under one roof
18. ________, facing high operating costs and inconvenient downtown locations, have fought back against increasing competition by closing certain departments and branching out into regional shopping centers.
a) Extended supermarkets b) Catalog retailers c) Hypermarkets d) Department stores
19. Costco, Wal-Mart, and Sam’s Club are examples of ________.
a) superstores b) discount houses c) “no frills” retailers d) warehouse clubs
20. Discount houses have all of the following characteristics EXCEPT: