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Johnson Controls can receive an order for automobile seats from Ford and deliver the order four hours later,beginning with raw materials and ending with delivery of the finished seats to Ford.As used by Johnson Controls,logistics


A) creates utilities for Ford.
B) increases Ford's inventory.
C) increases the number of steps in the value proposition.
D) includes the role of Johnson controls as a drop shipper.
E) does not influence Ford's supply chain.

F) A) and C)
G) B) and D)

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While Maytag appliances have the leading brand name,its sales are third in the industry.One of the things the company has done to spur sales is to create a website where potential customers can find the answers to the questions they ask during the appliance purchase process.Although Maytag considered using a __________ strategy by directing customers to Maytag appliance stores it owns,the firm decided against it and simply provides the names and addresses of all the retailers (Sears,Home Depot,etc.) that carry Maytag appliances.


A) horizontal channel strategy
B) strategic channel alliance
C) dual distribution
D) cross-docking
E) disintermediation

F) A) and C)
G) A) and D)

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What are the three questions marketing executives consider when choosing a marketing channel and intermediaries?

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Marketing executives typically consider ...

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Which of the following statements regarding corporate vertical marketing systems is most accurate?


A) Corporate vertical marketing systems combine successive stages of production and distribution under shared ownership with all links in the marketing chain sharing title to the goods.
B) Corporate vertical marketing systems can incorporate both forward and backward integration.
C) Corporate vertical marketing systems increase distribution costs.
D) Corporate vertical marketing systems increase investment increases but decrease fixed costs.
E) Corporate vertical marketing systems are only effective with low-end consumer products.

F) C) and E)
G) C) and D)

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Enhancing a product or service to make it more appealing to buyers is __________ utility.


A) time
B) place
C) possession
D) form
E) transactional

F) A) and C)
G) C) and E)

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A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members.Influence can take four forms,one of which is


A) stakeholder position.
B) familial ties to other channel members.
C) expertise.
D) longevity in the industry.
E) geographic proximity to the manufacturing plant.

F) C) and E)
G) None of the above

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In the context of a supply chain,customer service refers to


A) adhering to the belief that the customer is always right.
B) satisfying the customers' needs no matter what the price.
C) accepting full liability if a product fails to meet a customer's expectations.
D) the ability of logistics management to satisfy users in terms of time,dependability,communication,and convenience.
E) the ability of logistics management to satisfy users in terms of product,price,promotion,and place.

F) None of the above
G) A) and B)

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Candy bars should most likely be sold using which type of target market coverage?


A) exclusive distribution
B) direct distribution
C) intensive distribution
D) dual distribution
E) selective distribution

F) B) and C)
G) C) and D)

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A wholesaler refers to


A) independent firms or individuals whose principal function is to bring buyers and sellers together.
B) any intermediary who takes ownership of a manufacturer's products or services and then finds multiple buyers for those products or services.
C) an intermediary who sells to other intermediaries,usually to retailers in consumer markets.
D) an intermediary who sells to consumers.
E) a manufacturing "matchmaker" who actively seeks out potential consumers and brings them to retailers.

F) A) and E)
G) B) and E)

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In marketing,the term __________ is used to describe the number of stores in a geographical area.


A) density
B) breadth
C) depth
D) mass
E) concentration

F) D) and E)
G) A) and E)

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Franchising refers to


A) a contractual agreement between multiple retailers sharing the same business mission to operate with a consistent business model to not only achieve enhanced buying power but also increase customer loyalty.
B) a contractual arrangement between a parent company and an individual or firm that allows the latter to operate a certain type of business under an established name and according to specific rules.
C) purchasing the name,branding,and raw materials from one organization and transferring it to another.
D) a practice whereby one firm's marketing channel is used to sell another firm's product.
E) selling an idea to a larger company and letting it do all the manufacturing,distribution,and marketing.

F) A) and D)
G) B) and E)

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A vendor-managed inventory system refers to an


A) inventory supply system that operates with very low inventories and requires fast on-time delivery.
B) inventory management system whereby the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items.
C) inventory management system that is designed to reduce the retailer's lead time for receiving merchandise,which then lowers a retailer's inventory investment,improves customer service levels,and reduces logistic expenses.
D) inventory supply system that relies on the "judgment" of individual warehouse managers based on daily reports from its retailer customers.
E) inventory system that guarantees delivery within 48 hours,and grants price reductions of 1 percent per hour if a shipment is delayed.

F) B) and D)
G) C) and D)

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Often companies must choose between a responsive supply chain and an efficient supply chain.This decision is based on __________.


A) the specific needs of customer segments
B) monetary considerations
C) supplier alternatives
D) the business mission
E) a lack of an appropriate channel captain

F) All of the above
G) None of the above

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What are the three steps used in choosing a supply chain?

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(1)Understand the customers,in...

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What are some specific cost trade-offs that can be made in a logistics system?

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Total logistics cost includes expenses a...

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  Figure 12-3 -Figure 12-3 above depicts the four most common marketing channels for consumer products and services. Z  represents A) consumers. B) industrial users. C) wholesalers. D) agents or brokers. E) retailers. Figure 12-3 -Figure 12-3 above depicts the four most common marketing channels for consumer products and services."Z" represents


A) consumers.
B) industrial users.
C) wholesalers.
D) agents or brokers.
E) retailers.

F) A) and B)
G) A) and E)

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Several artists in Charleston,South Carolina,show and sell their work in an art gallery downtown.The gallery is owned by an art lover who does not buy the paintings but displays them and collects a percentage on each piece sold.In terms of the marketing channel,the gallery is a(n) __________.


A) ultimate consumer
B) manufacturer
C) wholesaler
D) agent
E) retailer

F) A) and E)
G) A) and D)

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Ford uses a(n) __________,whereby the company license dealers in North America to sell Ford automobiles subject to various sales and service conditions.


A) service-sponsored producer franchise system
B) service-sponsored retail franchise system
C) manufacturer-sponsored wholesale franchise system
D) manufacturer-sponsored retail franchise system
E) administered vertical marketing system

F) B) and D)
G) A) and E)

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The choice of a supply chain follows from a clearly defined marketing strategy and involves three steps: (1) _________; (2) understand the supply chain; and (3) harmonize the supply chain with the marketing strategy.


A) understand the environment
B) consider the legal consequences of partnering
C) understand the marketing strategy
D) understand the customer
E) understand the company's goals

F) C) and D)
G) A) and B)

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Buyers are interested in having numerous competing and complementary items from which to choose.The buyer requirement for __________ is satisfied through the breadth and depth of products and brands that intermediaries carry.


A) information
B) convenience
C) variety
D) pre- or postsale services
E) adaptability

F) B) and E)
G) C) and E)

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