BMKT 325 CH. 14 QUESTIONS AND
ANSWERS
Procurement - ANSWER-Carlos works at Kellogg's and is on a team developing a new breakfast
cereal. He is currently trying to contact different companies who can provide the specific
ingredients and equipment needed to make the cereal. He will work with the procurement
department to reach an agreement with the companies selected to provide the ingredients and
equipment. Carlos is currently engaging in _______.
logistics management - ANSWER-Pierre runs a grocery store and is working with his suppliers in
the planning and implementation of the flow of products from the manufacturer to his store.
The goal is to make the transportation and storage of products more efficient and effective. He
is engaging in _______.
Supply Chain Management - ANSWER-Walmart is working with its suppliers, using tools such as
electronic billing, purchase order verification, and bar code technology, to integrate data used
to improve overall performance. This is an example of _______.
A retailer offers to add a monogram to a product - ANSWER-Customers receive the benefits of
form utility from an intermediary when _______.
Producer, wholesaler, retailer, and consumer - ANSWER-Kraft sells its macaroni and cheese
through thousands of retailers across the country. Which of the following marketing channel
structures is Kraft most likely to use?
Industrial Distributor - ANSWER-Grainger is an industrial supply company selling equipment
from manufacturers and selling the equipment to manufacturing companies. Grainger takes title
and carries inventory of the products it sells. Grainger is an example of a(n) _______.
The producer wants to cover a large geographic area but has no sales force. - ANSWER-A
channel that includes both a manufacturers' agent and an industrial distributor is appropriate
under which of the following circumstances?
dual distribution - ANSWER-American Eagle allows shoppers to buy its clothing through its
stores or through its website, ae.com. This is an example of _______.
selective - ANSWER-Gucci sells its handbags through its company-owned stores and through a
handful of high-end department store chains like Neiman Marcus and Saks Fifth Avenue. Gucci
is using _______ distribution.
,suitable for products consumed over a long period of time - ANSWER-Exclusive distribution is
_______.
intensive - ANSWER-When Coke Zero was added to the line of Coca-Cola products, it most likely
was introduced using _______ distribution.
captain - ANSWER-Large manufacturers such as Procter & Gamble are typically able to have
control over how their products are promoted and sold in different retail outlets. Due to this
control, Procter & Gamble is likely a channel _______.
demonstrating channel power - ANSWER-If Kellogg's is forcing its retailers to place its cereals in
prime locations on the shelves so customers can see them easier than the competition, it would
be _______.
channel conflict - ANSWER-Snap-on Tools uses a franchise model to sell shop equipment
products to customers. When Snap-on developed a website that sold tools directly to
consumers, this likely caused _______ with franchisees, which would likely increase if Snap-on
reaches an agreement to sell through Home Depot as well.
electronic data interchange (EDI) - ANSWER-Companies have been using computer technology
to integrate order processing with production, inventory, accounting, and transportation in a
system referred to as _______.
inventory management - ANSWER-JanSport offers a line of backpacks in a variety of styles and
sizes. The company needs to make sure it has an adequate assortment of backpacks available to
meet customer demand as part of the _______ stage of logistics.
just-in-time (JIT) - ANSWER-Alicia is a product manager for a computer manufacturer and has
decided to improve its inventory management. She is working with suppliers to wait to
purchase materials right before they are needed in production so she can keep the levels of
inventory low. She is suggesting a(n) _______ approach.
Tying agreements - ANSWER-When launching its Dove Men+Care line of men's skin care
products, Unilever told its distributors that they had to carry the new line if they still wanted to
carry the rest of the Dove line of products. They would have been engaging in which of the
following channel management practices?
Tying agreement - ANSWER-Redlands Distributing wants to carry Tide detergent products made
by Procter & Gamble (P&G), P&G agrees, but only if the supplier also purchases P&G's entire
line of detergents such as Gain and Cheer. If this were to occur, P&G would be engaging in which
of the following channel management practices?
,exclusive dealing - ANSWER-An arrangement under which a producer forbids an intermediary
from carrying products made by competing manufacturers is called _______.
facilitate comparison shopping - ANSWER-By locating in the same general vicinity as other car
dealerships, Hartfield Honda can _______.
adding value for customers - ANSWER-Best Buy stores have knowledgeable staff to provide
information to consumers on products ranging from televisions to laptops. The company also
offer repair and support services through the Geek Squad. These are examples that Best Buy is
_______.
online retailing - ANSWER-Lindsay visits jcrew.com and orders a sweater. This is an example of
_______.
Retailers may offer exclusive online sales. - ANSWER-Which of the following is true of online
retailers?
general-merchandise retailers - ANSWER-Department stores, convenience stores, and
warehouse clubs can all be classified as _______.
Discount store - ANSWER-Which type of store offers a wide assortment of products, has high
inventory turnover, and operates with low margins and high sales volume?
Superstore - ANSWER-Nevaeh goes shopping to buy food for dinner, but she also wants to pick
up a new pair of running shoes and a new shirt for her son. Because she is with her children,
she wants to do all her shopping at one store. Which of the following should Nevaeh visit?
hypermarket - ANSWER-Hans can spend hours at his local Carrefour. He will shop for household
items and clothing, paying lower prices than at other stores. If he needs to, he can also get his
eyeglasses, make deposits at a branch of his bank, and eat lunch at a fast-food restaurant.
Carrefour is a _______.
deeply discounted prices on name-brand merchandise - ANSWER-Off-price retailers compete
primarily based on _______.
Webrooming - ANSWER-_______ occurs when a shopper researches a product online and then
heads to the nearest store to make the actual purchase.
convenience store - ANSWER-Before heading to the pool, Yash filled up his car with gas and ran
into the _______ to withdraw $40 from the ATM and get snacks and a Gatorade.
location - ANSWER-Kroger is planning to open a new suburban grocery store. Management is
currently evaluating how easy it will be to get deliveries at different sites, leasing terms of sites,
and compatibility with potential neighboring stores. Kroger is evaluating a new store's _______.
, neighborhood - ANSWER-Deborah is opening a second-hand clothing store in a shopping center
that has other small specialty stores, a convenience store, and a fast-food restaurant. The center
primarily attracts customers who live within a couple miles of the stores. Deborah's store is
most likely in a _______ shopping center.
regional - ANSWER-Twin Pines Mall has a Nordstrom, a J.C. Penney, and a Macy's as well as
many specialty stores that are national chains. It attracts customers traveling a distance because
it has stores selling products that smaller shopping centers do not offer. Twin Pines Mall is most
likely a _______ shopping center.
lifestyle - ANSWER-The Grove is an open-air shopping center that has upscale specialty stores,
nice restaurants, and a movie theater. It is designed to encourage customer loyalty by looking
like a "mini-city" with streets, benches, and a small park. The Grove is most likely a _______
shopping center.
direct selling - ANSWER-Companies such as Avon and Amway choose to market their products
to ultimate consumers. They use face-to-face sales presentations, either at home or at work.
This strategy is referred to as _______.
direct-response marketing; telemarketing - ANSWER-KidRead is developing a way to increase
the number of subscribers to its children's book subscription service using direct marketing. It
has narrowed down the options to _______, in which it would mail out postcards advertising
the service and have new customers place mail, telephone, or online orders or _______, in
which it would call potential subscribers to sell them the service over the phone.
direct-response marketing - ANSWER-Vaughn was wide awake at 2 a.m., so he decided to watch
television. He ended up watching an infomercial about Gotham Steel frying pans. Vaughn
became convinced he needed the dishwasher safe, scratch-resistant cookware and immediately
called the 1-800 number listed on the screen to order a frying pan. This is an example of
_______.
merchant wholesaler - ANSWER-Tri-County Supply is a wholesaler that works in the home
construction industry, providing building supplies such as doors, windows, gutters, and other
components used in home construction. Tri-County Supply takes ownership of the components,
which means it assumes the risk associated with the products if it is unable to sell them to
home builders. Tri-County Supply is a _______.
full-service wholesaler - ANSWER-If a retailer needs help with document management,
communication management, and the distribution of retailer flyers, it will most likely hire a
_______.
ANSWERS
Procurement - ANSWER-Carlos works at Kellogg's and is on a team developing a new breakfast
cereal. He is currently trying to contact different companies who can provide the specific
ingredients and equipment needed to make the cereal. He will work with the procurement
department to reach an agreement with the companies selected to provide the ingredients and
equipment. Carlos is currently engaging in _______.
logistics management - ANSWER-Pierre runs a grocery store and is working with his suppliers in
the planning and implementation of the flow of products from the manufacturer to his store.
The goal is to make the transportation and storage of products more efficient and effective. He
is engaging in _______.
Supply Chain Management - ANSWER-Walmart is working with its suppliers, using tools such as
electronic billing, purchase order verification, and bar code technology, to integrate data used
to improve overall performance. This is an example of _______.
A retailer offers to add a monogram to a product - ANSWER-Customers receive the benefits of
form utility from an intermediary when _______.
Producer, wholesaler, retailer, and consumer - ANSWER-Kraft sells its macaroni and cheese
through thousands of retailers across the country. Which of the following marketing channel
structures is Kraft most likely to use?
Industrial Distributor - ANSWER-Grainger is an industrial supply company selling equipment
from manufacturers and selling the equipment to manufacturing companies. Grainger takes title
and carries inventory of the products it sells. Grainger is an example of a(n) _______.
The producer wants to cover a large geographic area but has no sales force. - ANSWER-A
channel that includes both a manufacturers' agent and an industrial distributor is appropriate
under which of the following circumstances?
dual distribution - ANSWER-American Eagle allows shoppers to buy its clothing through its
stores or through its website, ae.com. This is an example of _______.
selective - ANSWER-Gucci sells its handbags through its company-owned stores and through a
handful of high-end department store chains like Neiman Marcus and Saks Fifth Avenue. Gucci
is using _______ distribution.
,suitable for products consumed over a long period of time - ANSWER-Exclusive distribution is
_______.
intensive - ANSWER-When Coke Zero was added to the line of Coca-Cola products, it most likely
was introduced using _______ distribution.
captain - ANSWER-Large manufacturers such as Procter & Gamble are typically able to have
control over how their products are promoted and sold in different retail outlets. Due to this
control, Procter & Gamble is likely a channel _______.
demonstrating channel power - ANSWER-If Kellogg's is forcing its retailers to place its cereals in
prime locations on the shelves so customers can see them easier than the competition, it would
be _______.
channel conflict - ANSWER-Snap-on Tools uses a franchise model to sell shop equipment
products to customers. When Snap-on developed a website that sold tools directly to
consumers, this likely caused _______ with franchisees, which would likely increase if Snap-on
reaches an agreement to sell through Home Depot as well.
electronic data interchange (EDI) - ANSWER-Companies have been using computer technology
to integrate order processing with production, inventory, accounting, and transportation in a
system referred to as _______.
inventory management - ANSWER-JanSport offers a line of backpacks in a variety of styles and
sizes. The company needs to make sure it has an adequate assortment of backpacks available to
meet customer demand as part of the _______ stage of logistics.
just-in-time (JIT) - ANSWER-Alicia is a product manager for a computer manufacturer and has
decided to improve its inventory management. She is working with suppliers to wait to
purchase materials right before they are needed in production so she can keep the levels of
inventory low. She is suggesting a(n) _______ approach.
Tying agreements - ANSWER-When launching its Dove Men+Care line of men's skin care
products, Unilever told its distributors that they had to carry the new line if they still wanted to
carry the rest of the Dove line of products. They would have been engaging in which of the
following channel management practices?
Tying agreement - ANSWER-Redlands Distributing wants to carry Tide detergent products made
by Procter & Gamble (P&G), P&G agrees, but only if the supplier also purchases P&G's entire
line of detergents such as Gain and Cheer. If this were to occur, P&G would be engaging in which
of the following channel management practices?
,exclusive dealing - ANSWER-An arrangement under which a producer forbids an intermediary
from carrying products made by competing manufacturers is called _______.
facilitate comparison shopping - ANSWER-By locating in the same general vicinity as other car
dealerships, Hartfield Honda can _______.
adding value for customers - ANSWER-Best Buy stores have knowledgeable staff to provide
information to consumers on products ranging from televisions to laptops. The company also
offer repair and support services through the Geek Squad. These are examples that Best Buy is
_______.
online retailing - ANSWER-Lindsay visits jcrew.com and orders a sweater. This is an example of
_______.
Retailers may offer exclusive online sales. - ANSWER-Which of the following is true of online
retailers?
general-merchandise retailers - ANSWER-Department stores, convenience stores, and
warehouse clubs can all be classified as _______.
Discount store - ANSWER-Which type of store offers a wide assortment of products, has high
inventory turnover, and operates with low margins and high sales volume?
Superstore - ANSWER-Nevaeh goes shopping to buy food for dinner, but she also wants to pick
up a new pair of running shoes and a new shirt for her son. Because she is with her children,
she wants to do all her shopping at one store. Which of the following should Nevaeh visit?
hypermarket - ANSWER-Hans can spend hours at his local Carrefour. He will shop for household
items and clothing, paying lower prices than at other stores. If he needs to, he can also get his
eyeglasses, make deposits at a branch of his bank, and eat lunch at a fast-food restaurant.
Carrefour is a _______.
deeply discounted prices on name-brand merchandise - ANSWER-Off-price retailers compete
primarily based on _______.
Webrooming - ANSWER-_______ occurs when a shopper researches a product online and then
heads to the nearest store to make the actual purchase.
convenience store - ANSWER-Before heading to the pool, Yash filled up his car with gas and ran
into the _______ to withdraw $40 from the ATM and get snacks and a Gatorade.
location - ANSWER-Kroger is planning to open a new suburban grocery store. Management is
currently evaluating how easy it will be to get deliveries at different sites, leasing terms of sites,
and compatibility with potential neighboring stores. Kroger is evaluating a new store's _______.
, neighborhood - ANSWER-Deborah is opening a second-hand clothing store in a shopping center
that has other small specialty stores, a convenience store, and a fast-food restaurant. The center
primarily attracts customers who live within a couple miles of the stores. Deborah's store is
most likely in a _______ shopping center.
regional - ANSWER-Twin Pines Mall has a Nordstrom, a J.C. Penney, and a Macy's as well as
many specialty stores that are national chains. It attracts customers traveling a distance because
it has stores selling products that smaller shopping centers do not offer. Twin Pines Mall is most
likely a _______ shopping center.
lifestyle - ANSWER-The Grove is an open-air shopping center that has upscale specialty stores,
nice restaurants, and a movie theater. It is designed to encourage customer loyalty by looking
like a "mini-city" with streets, benches, and a small park. The Grove is most likely a _______
shopping center.
direct selling - ANSWER-Companies such as Avon and Amway choose to market their products
to ultimate consumers. They use face-to-face sales presentations, either at home or at work.
This strategy is referred to as _______.
direct-response marketing; telemarketing - ANSWER-KidRead is developing a way to increase
the number of subscribers to its children's book subscription service using direct marketing. It
has narrowed down the options to _______, in which it would mail out postcards advertising
the service and have new customers place mail, telephone, or online orders or _______, in
which it would call potential subscribers to sell them the service over the phone.
direct-response marketing - ANSWER-Vaughn was wide awake at 2 a.m., so he decided to watch
television. He ended up watching an infomercial about Gotham Steel frying pans. Vaughn
became convinced he needed the dishwasher safe, scratch-resistant cookware and immediately
called the 1-800 number listed on the screen to order a frying pan. This is an example of
_______.
merchant wholesaler - ANSWER-Tri-County Supply is a wholesaler that works in the home
construction industry, providing building supplies such as doors, windows, gutters, and other
components used in home construction. Tri-County Supply takes ownership of the components,
which means it assumes the risk associated with the products if it is unable to sell them to
home builders. Tri-County Supply is a _______.
full-service wholesaler - ANSWER-If a retailer needs help with document management,
communication management, and the distribution of retailer flyers, it will most likely hire a
_______.
