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Exam 14: Marketing Channels and Supply Chain Management

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Question 121

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A drug maker got in trouble with the FTC. If patients of the drug maker wanted to purchase its schizophrenia drug, they also had to buy its blood-monitoring services. The FTC found this to be unfair. This is an example of a(n)

A) restricted sales territory.
B) tying agreement.
C) exclusive distribution.
D) refusal to deal.
E) full-line forcing.

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Question 122

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Private warehouses are usually leased or purchased when a firm believes its warehouse needs are so stable that it can make a long-term commitment to fixed facilities.

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Question 123

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Marketing channels create four types of utility for consumers including

Sometimes a marketing channel is quite simple and short, perhaps running directly from a producer to the final user or consumer.

Supplier ABC requires all its channel members to purchase all of its products in order to be able to purchase any of its products. This is an example of

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

Eric is concerned about not having enough air conditioning units in inventory during June, July, and August so he keeps extra inventory to guard against stockouts during this critical period. Eric is keeping

The main objectives of physical distribution are decreasing costs while increasing customer service.

Both a manufacturers' agent and an industrial distributor may be used when the organizational marketer wishes to cover a larger geographic area but does not maintain a sales force.

It is rare for a channel member to manage the physical distribution of goods for all supply-chain members involved in exchanges.

Which of the following is least likely to be a factor affecting the selection of marketing channels?

Long-term commitments usually characterize the relationships among channel members.

Kawasaki places several motorcycles in "pods" in order to load them efficiently using forklifts. This system of materials handling is called

Supply chains start with the producer.

The United States Postal Service works hard to get priority mail from the sender to the recipient as quickly as possible in order to compete with companies such as UPS and FedEx. The postal service is competing with UPS and FedEx in terms of

Why is the choice of warehouse facilities an important strategic consideration?

The main reason a manufacturer will prohibit intermediaries from selling its products outside designated sales territories is to

Today, marketing focuses solely on certain downstream supply-chain activities.

Scenario 14.1 Use the following to answer the questions. Liz Claiborne, Inc. markets several different brands, under their own Claiborne name label, as well as others. Their primary brands, such as Liz Claiborne, Liz & Co, and DKNY, are sold to wholesalers. These brands are then available through retail department stores such as Kohl's and Macy's. Their wholesale-based brands division is positioned as customer-focused and cost-efficient. Their premium brands division includes labels such as Kate Spade, Juicy Couture, and Mexx. These premium brands are sold through stores that the Claiborne company owns. Refer to Scenario 14.1. The Liz & Co brand is sold only at JCPenney. This is an example of ____ distribution.

The overall safety stock, or inventory needed to prevent a stockout, depends on the general level of prices.