Deck 11: Distribution Decisions

Question 1

Which of the following links producers to consumers through the purchase and reselling of products or contractual agreements?

A)Marketing intermediaries
B)Distributors
C)Suppliers
D)Middle marketers
E)Marketing channels

Answer 1

A

Question 2

A group of organisations and individuals that directs the flow of products from producers to the ultimate consumers is called a:

A)marketing intermediary.
B)supply chain.
C)marketing channel.
D)distribution network.
E)strategic channel alliance.

Answer 2

C

Question 3

What is a store's image, and how does it affect retailing strategy decisions?

Answer 3

no answer

Question 4

Identify and describe the criteria used for selecting transportation modes.

Question 5

What is a marketing intermediary, and what are the activities that marketing intermediaries perform?

Question 6

The supply chain includes:

A)producers, wholesalers and retailers.
B)suppliers, producers, intermediaries and customers.
C)suppliers and suppliers' suppliers.
D)all entities that facilitate product distribution.
E)buyers, sellers, marketing intermediaries and agents.

Question 7

The driving force behind marketing-channel decisions should be:

A)convenience.
B)cost reduction.
C)environmental concerns.
D)customer satisfaction.
E)quality.

Question 8

A channel of distribution is defined as a group of individuals and organisations that:

A)consumes about one-half of every dollar spent on products.
B)directs the flow of products from producers to customers.
C)links producers to other marketing intermediaries.
D)takes title to products and resells them.
E)manages transportation and warehousing functions.

Question 9

Discuss channel cooperation and conflict, and explain how each might affect distribution channel functions.

Question 10

Most marketing channels have marketing intermediaries.A marketing intermediary's role is to:

A)link wholesalers to other wholesalers.
B)link producers to other middlemen or to consumers.
C)always sell products to wholesalers.
D)not take title to products.
E)always sell products to retailers.

Question 11

Long-term partnerships among channel members that work together to reduce inefficiencies, costs and redundancies in the entire marketing channel are called:

A)supply-chain management.
B)vertical channel integration.
C)industrial management.
D)industrial distribution.
E)marketing management.

Question 12

Discuss the advantages and disadvantages of online retailing.

Question 13

What is supply-chain management? How can it help marketing channel members?

Question 14

Compare and contrast department stores and discount stores.

Question 15

Identify and describe three kinds of specialty stores.

Question 16

In what ways do retailers add value to products?

Question 17

What are the three types of utility that marketing channels create, and what do they involve?

Question 18

Why is a store's location one of the most important strategic retailing decisions?

Question 19

All members of the supply chain should determine their position in the chain, identify their partners and their roles, and establish partnerships that focus on:

A)shifting costs to suppliers.
B)maximising costs.
C)maximising technology implementation.
D)cooperation with competitors.
E)customer relationships.

Question 20

How do marketing-channel decisions influence the rest of the marketing mix?

Question 21

Heinz markets tomato sauce for household use to supermarkets through grocery wholesalers.It markets tomato sauce for institutional use through industrial distributors and food brokers.Heinz is using a(n):

A)hybrid marketing channel
B)industrial distribution.
C)strategic channel alliance.
D)supply-chain management.

Question 22

Retailing is best characterised as:

A)large organisations that carry wide and deep product mixes.
B)transactions in which a buyer intends to consume the product through personal, family or household use.
C)arrangements whereby a supplier grants a dealer the right to sell its products.
D)transactions in which the purchaser intends to use the product for resale or for business operations.
E)exchanges that take place only in a store or service establishment.

Question 23

If Samsung decides to make changes in its marketing channels, the strategic significance is that channel decisions are:

A)long-term commitments.
B)short-term commitments.
C)easier to change than prices.
D)easier to change than promotion.
E)impossible to change.

Question 24

Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called:

A)multiple channelling.
B)strategic channel alliance.
C)intensive distribution.
D)hybrid channel
E)market splitting.

Question 25

A small retailer could no longer handle all of the distribution activities as her business grew.She hired a shipper and an information technology company to assist with these functions.She is using __________ for physical distribution for her business.

A)producers
B)wholesalers
C)retailers
D)selling agents
E)outsourcing

Question 26

An important goal of physical distribution is reducing the time it takes to complete:

A)inventory management.
B)outsourcing evaluation.
C)electronic data interchange.
D)order processing.
E)cycle time.

Question 27

By locating its dealership in the same general vicinity as other car dealerships, Hartfield Honda can:

A)facilitate comparison shopping.
B)create form utility.
C)facilitate wholesale exchanges.
D)create possession utility.
E)create exchange utility.

Question 28

L'Oréal, the largest beauty company in the world, coordinates activities with both its suppliers and its distributors in order to produce and deliver products that its customers demand.Which statement is most likely to be true about the impact of L'Oréal's supply-chain management?

A)L'Oréal demonstrates a product firm orientation that increases its competitiveness.
B)L'Oréal demonstrates a market firm orientation that increases its competitiveness.
C)L'Oréal demonstrates a sales firm orientation that increases its competitiveness.
D)L'Oréal's supply-chain management overlaps with all of the firm's marketing functions but not its financial functions.
E)L'Oréal's primary objective is to maximise efficiency in its supply chain.

Question 29

Having products available when the customer wants them is called:

A)place utility.
B)time utility.
C)availability.
D)possession utility.

Question 30

Supermarkets, discount stores and hypermarkets can all be classified as:

A)superstores.
B)general merchandise retailers.
C)department stores.
D)specialty retailers.
E)off-price retailers.

Question 31

A general merchandise retailer offers:

A)a single product line that is stocked in depth.
B)a few product lines with deep assortments of these lines.
C)a few choices of a large variety of product lines.
D)a variety of product lines that are stocked in depth.

Question 32

Eliminating a wholesaler from a marketing channel will:

A)cut costs and lower prices.
B)not eliminate the functions performed by that wholesaler.
C)eliminate the functions performed by that wholesaler.
D)lead to lower costs but higher prices.
E)reduce channel conflict.

Question 33

Large retailers such as Target are most likely to participate in which of the following channels?

A)Producer, industrial distributors, retailers and consumers
B)Producer and consumers
C)Producer, wholesalers, retailers and consumers
D)Producer, retailers and consumers
E)Producer, agents, wholesalers, retailers and consumers

Question 34

Compared with other types of retailers, department stores compete mainly on the basis of:

A)customer services.
B)low prices.
C)a very deep assortment of a few specific products.
D)high sales volume.
E)catalogue sales.

Question 35

Manufacturers of convenience products, such as chewing gum, reach customers through thousands of retailers.What marketing channel are these manufacturers most likely to use?

A)Producer and consumer
B)Producer, wholesaler, retailer and consumer
C)Producer, wholesaler, agent, retailer and consumer
D)Producer, retailer and consumer
E)Retailer and consumer

Question 36

When Sophia buys organic products for her household using a channel with only one intermediary, that intermediary is classified as a:

A)retailer.
B)wholesaler.
C)broker.
D)functional middleman.
E)producer.

Question 37

The marketing channel that runs from producer to retailer to consumer is most likely to be used by producers of which product?

A)Chewing gum
B)Tobacco
C)Automobiles
D)Hardware
E)Saltine crackers

Question 38

Australia Post works hard to get parcels from the sender to the receiver as quickly as possible to compete with courier companies.Australia Post is competing with them in terms of:

A)cycle time.
B)order processing.
C)turnaround time.
D)shipping time.
E)transportation.

Question 39

After direct distribution to the customer, the next, slightly longer marketing channel adds a(n):

A)retailer.
B)producer.
C)wholesaler.
D)agent.
E)consumer.

Question 40

Marketing channels create three types of utility for consumers, namely:

A)place, time and possession.
B)location, availability and suitability.
C)time, location and promotion.
D)position, possession and place.

Question 41

Matt's girlfriend tells him that she wants a cashmere sweater for her birthday.Matt decides to go to a store that provides the best possible selection of sweaters.His best choice would be to shop at a __________ store.

A)department
B)catalogue
C)discount
D)traditional specialty
E)convenience

Question 42

Which of the following is an example of a category killer?

A)McDonald's
B)Kmart
C)Foot Locker
D)Bunnings

Question 43

If a store has areas for men's apparel, women's apparel, housewares, cosmetics and jewellery, and competes mostly on the basis of service, it is a(n):

A)off-price retailer.
B)department store.
C)discount store.
D)superstore.
E)supermarket.

Question 44

A store that offers a wide variety of shoes for men, women and children would most likely be considered a(n):

A)department store.
B)specialty retailer.
C)category killer.
D)off-price retailer.
E)warehouse showroom.

Question 45

Jason Beaumont gets a shopping list from his wife.On the list are a potted plant, fresh salmon, motor oil, bread, milk and a birthday cake.To make just one stop and save time, Jason should go to a(n):

A)convenience store.
B)off-price retailer.
C)specialty store.
D)franchiser.
E)supermarket.

Question 46

Large, self-service stores that carry a complete line of food products and some non-food products are called:

A)discount stores.
B)superstores.
C)supermarkets.
D)department stores.
E)warehouse clubs.

Question 47

Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume?

A)Department stores
B)Traditional specialty retailers
C)Warehouse showrooms
D)Direct marketers
E)Discount stores

Question 48

IKEA is located in huge, low-cost buildings, offers minimum service and maintains large, on-premises inventories.IKEA is a:

A)warehouse showroom.
B)catalogue showroom.
C)superstore.
D)warehouse club.
E)department store.

Question 49

After shopping in the same store for nearly two hours, Chester goes to McDonald's for a Big Mac while Cynthia goes to the optical shop to see if her contacts are ready.They engage in these activities without leaving the store in which they have been shopping.They are most likely in a:

A)superstore.
B)hypermarket.
C)department store.
D)general merchandise retailer.
E)discount store.

Question 50

A small, self-service store that is open long hours and carries a narrow product assortment in convenient locations is best described as a:

A)discount store.
B)department store.
C)convenience store.
D)supermarket.
E)category killer.

Question 51

Specialty stores offer __________ than department stores.

A)greater varieties of product lines and higher prices
B)lower prices and higher quality
C)more product depth and less customer service
D)more sales expertise and better selections
E)more frequent price discounts and less selection

Question 52

A __________ is a retail establishment that combines a supermarket and a discount store in one location.

A)superstore
B)department store
C)category killer
D)hypermarket

Question 53

What is the primary distinction between superstores and hypermarkets?

A)Superstores offer a wider variety of products than hypermarkets.
B)Superstores offer low prices while hypermarkets offer moderate-to-high prices.
C)Hypermarkets have fewer departments but deeper product lines than superstores.
D)Hypermarkets are larger and have more types of products than superstores.
E)These two types of retailers carry very different types of products.

Question 54

Coles and Woolworths are considered:

A)superstores.
B)groceries.
C)department stores.
D)supermarkets.
E)food stores.

Question 55

Off-price retailers and category killers are both:

A)specialty retailers.
B)discount stores.
C)showrooms.
D)general merchandisers.
E)department stores.

Question 56

Costco is an example of a:

A)discounter.
B)warehouse club.
C)warehouse showroom.
D)discount club.
E)wholesaler.

Question 57

Category killers compete primarily on the basis of:

A)enormous product selection and sales expertise.
B)low prices and enormous product availability.
C)convenient locations and customer services.
D)rock-bottom prices and moderate selections.
E)one-stop shopping and product availability.

Question 58

Self-service, general merchandise stores such as Kmart are known as:

A)discount stores.
B)warehouse showrooms.
C)catalogue showrooms.
D)superstores.
E)specialty retailers.

Question 59

Retail facilities located in big, low-cost buildings with large on-premises inventories and minimal services are called:

A)catalogue showrooms.
B)category killers.
C)warehouse showrooms.
D)warehouse clubs.
E)display outlets.

Question 60

Myer and David Jones are considered:

A)department stores.
B)discount stores.
C)off-price retailers.
D)specialty retailer.
E)category killers.

Question 61

Dawn is concerned that there are not enough avid quilters in Centreville to support her Quilts Unlimited store.Her business adviser suggests that she not limit her promotion to the Centreville population but also consider destination shoppers (customers coming from a distance) This approach is most likely to work if her store is located in a:

A)freestanding Types of retailers and strategies in retailing.
B)traditional business district.
C)strip centre.
D)community shopping centre.
E)regional shopping centre.

Question 62

The kinds of products sold and the availability of public transportation are both factors that influence a retailer's decision about:

A)store atmosphere.
B)location.
C)retail positioning.
D)store image.

Question 63

Location is important to a retailer because:

A)suppliers charge more to service stores in certain trading areas.
B)a desirable location appeals to consumers' emotions.
C)it is the major determinant of store image.
D)it determines the trading area from which the store must draw its customers.
E)convenience is an essential customer service element.

Question 64

A shopping centre containing a Woolworths, a David Jones, and an Amcal Chemist, as well as dozens of specialty shops, restaurants and entertainment venues is most likely a:

A)regional shopping centre.
B)local shopping centre.
C)community shopping centre.
D)complete business district.
E)hypermarket.

Question 65

The target market of a regional shopping centre typically includes at least __________ people.

A)25 000
B)50 000
C)100 000
D)150 000
E)250 000

Question 66

Which is the least flexible important retailing strategy issue?

A)Store atmosphere
B)Scrambled merchandising
C)Retail positioning
D)Store image
E)Location

Question 67

An open-air shopping centre that features upscale specialty, dining and entertainment stores, usually owned by national chains, is generally called a:

A)regional shopping centre.
B)local shopping centre.
C)community shopping centre.
D)lifestyle shopping centre.
E)factory outlet centre.

Question 68

A retailer engaged in direct marketing would probably select television home shopping over online retailing to sell a new kitchen device because:

A)it offers lower selling costs.
B)it offers easier financial transaction.
C)it provides a superior ability to demonstrate the product.
D)it provides a superior ability to offer the product at a lower price.
E)it has a decreased cycle time.

Question 69

Which type of retailers primarily competes with specialty retailers?

A)Discount stores
B)Category killers
C)Catalogue marketers
D)Department stores
E)Superstores

Question 70

In Cara's hometown, there is a shopping centre with a Coles, a Myer department store, a couple of fast-food restaurants, a few specialty shops and some convenience stores.The shopping centre features seasonal sidewalk sales and boat shows.This is most likely a __________ shopping centre.

A)local
B)national
C)regional
D)community
E)city

Question 71

Jessica Dowling is planning to open an upscale dress boutique.She is evaluating ease of movement to and from sites, vehicular traffic, types of stores in the area and transportation networks.Which strategic retailing issue is she concerned with at this time?

A)Location
B)Production depth
C)Product mix
D)Scrambled merchandising
E)Retail positioning

Question 72

Bunnings and Officeworks are examples of:

A)department stores.
B)off-price retailers.
C)category killers.
D)traditional specialty retailers.
E)superstores.

Question 73

Off-price retailers feature:

A)deep discounts, few customer services and central checkouts.
B)sales expertise, wide selections and low prices.
C)overstocks, designer brands and moderate prices.
D)a narrow product range and enormous product availability.
E)cash-only sales and few customer services.

Question 74

Greg chooses to locate his hunting equipment store away from the centre of town so that he can have a large car park and an outdoor range on which customers can test out his merchandise.Greg's store is:

A)in a traditional business district.
B)a rural shopping centre.
C)in a local shopping centre.
D)a non-traditional shopping centre.
E)a freestanding structure.

Question 75

Planned shopping centres include:

A)neighbourhood, regional, super-regional and power.
B)community, rural, urban and traditional business districts.
C)lifestyle, super-regional, regional, neighbourhood and community.
D)factory outlets, lifestyle and shopping centres.
E)freestanding, convenience, traditional and regional.

Question 76

A(n) __________ is a very large specialty store that competes on the basis of lower prices and enormous product availability.

A)warehouse club
B)off-price retailer
C)category killer
D)traditional specialty store
E)super centre

Question 77

A shopping centre that contains stores owned by manufacturers that make a special effort not to conflict with traditional retailers is a(n):

A)strip centre.
B)local shopping centre.
C)off-price retailer.
D)lifestyle shopping centre.
E)factory outlet centre.

Question 78

What type of shopping centre usually consists of several small convenience and specialty stores?

A)Specialty
B)Regional
C)Local
D)Convenience
E)Community

Question 79

Which of the following offers the widest product mixes and the deepest product lines?

A)Category killer
B)Factory outlet centre
C)Traditional business district
D)Community shopping centre
E)Super-regional shopping centre

Question 80

Hickory Village Shopping Centre has two department stores and some specialty and convenience stores.It serves a large geographic area and holds special events to stimulate consumer traffic.Hickory Village is a __________ centre.

A)community shopping
B)regional shopping
C)non-traditional shopping
D)local shopping