86) Blockbuster offers DVD rentals through its Total Access online rental service and through its bricks-and-mortar stores. This is an example of a(n)________. A) contractual VMS B) administered VMS
C) horizontal marketing system
D) conventional distribution channel E) multichannel distribution system Answer: E Diff: 1 Page Ref: 346 AACSB: Reflective Thinking Skill: Application Objective: 12-2
87) When Netflix began delivering DVDs directly to customers through the mail instead of using a brick-and-mortar system, Netflix was following the trend of ________. A) indirect marketing B) disintermediation C) a franchise system D) exclusive distribution E) selective distribution Answer: B Diff: 1 Page Ref: 347 AACSB: Reflective Thinking Skill: Application Objective: 12-2
88) Chewing gum is stocked in many outlets in the same market or community; in fact, it is placed in as many outlets as possible. This is an example of ________ distribution. A) exclusive B) selective C) multichannel D) intensive
E) disintermediated Answer: D Diff: 2 Page Ref: 351 AACSB: Reflective Thinking Skill: Application Objective: 12-3
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89) Which product(s) will most likely be intensively distributed? A) Olympus digital cameras B) BMW cars
C) Guess blue jeans D) Coca Cola
E) Nike running shoes Answer: D Diff: 1 Page Ref: 351 AACSB: Analytic Skills Skill: Application Objective: 12-3
90) Which product will most likely be exclusively distributed? A) BMW cars
B) Levi's blue jeans C) Bazooka bubble gum D) Prairie Farms yogurt E) Coca-Cola Answer: A Diff: 1 Page Ref: 351 AACSB: Analytic Skills Skill: Application Objective: 12-3
91) Tiffany & Co jewelry can only be found in a limited number of intermediaries. This is an example of ________ distribution. A) exclusive B) intensive C) quality D) high-end E) independent Answer: A Diff: 2 Page Ref: 351 AACSB: Reflective Thinking Skill: Application Objective: 12-3
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92) Why is it important for manufacturers to be sensitive to the needs of their dealers? A) Dealers have few legal rights.
B) Poorly performing dealers will be replaced.
C) Dealers fail to provide value to the entire channel system. D) Dealer support is essential to creating value for the customer. E) Manufacturers cannot break commitments to channel. Answer: D Diff: 2 Page Ref: 353 AACSB: Analytic Skills Skill: Application Objective: 12-4
93) Caterpillar, the famous heavy equipment manufacturer, has a reputation for working in
harmony with its worldwide distribution network of independent dealers. Caterpillar has shared its successes with its dealers and protected its dealers during difficult economic times. This is an example of ________. A) intensive distribution
B) integrated logistics management C) disintermediation D) third-party logistics
E) partner relationship management Answer: E Diff: 2 Page Ref: 353 AACSB: Reflective Thinking Skill: Application Objective: 12-4
94) Max Samuelson is a high-end fashion designer who markets his clothing lines through a limited number of highly reputable retailers. Max uses ________. A) exclusive distribution B) exclusive dealing
C) exclusive territorial agreements D) full-line forcing E) tying agreements Answer: A Diff: 3 Page Ref: 356 AACSB: Reflective Thinking Skill: Application Objective: 12-4
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95) Jewels for the Rich and Famous sells very exclusive jewelry with a minimum price of $25,000 to customers around the world. Speed of delivery to distant markets is a must. Management should consider using ________ as its main carrier. A) rail B) air C) truck
D) the Internet E) water Answer: B Diff: 2 Page Ref: 360 AACSB: Analytic Skills Skill: Application Objective: 12-5
96) Grayville Rock and Gravel, located in a seaport town, sells rock, gravel, and sand to local markets. It has just been awarded a contract with a company 500 miles down the coast. Management should consider switching from truck to ________ transport. A) water B) rail C) pipeline D) air
E) none of the above Answer: A Diff: 2 Page Ref: 360 AACSB: Analytic Skills Skill: Application Objective: 12-5
97) When Home Depot allows key suppliers to use its stores as a testing ground for new merchandising programs, it is implementing a ________. A) shared services
B) partnership management C) shared projects D) third-party project
E) cross-functional, cross-company team Answer: C Diff: 2 Page Ref: 362 AACSB: Reflective Thinking Skill: Application Objective: 12-5
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98) UPS Supply Chain Solutions, which handles all of its clients' \logistics, is an example of ________. A) integrated logistics management B) a distribution center C) selective distribution
D) a third-party logistics provider
E) a cross-functional, cross-company team Answer: D Diff: 2 Page Ref: 362 AACSB: Reflective Thinking Skill: Application Objective: 12-5
Refer to the scenario below to answer the following questions. Miller Meat Company contracts with several Midwestern farmers to raise beef and pork for its meat processing center. To guarantee freshness, Miller Meat Company relies on a vast
distribution network. For delivery to local grocers in Indiana, Miller Meat uses its own fleet of refrigerated trucks; delivery to these Indiana grocers constitutes 65 percent of Miller Meat's business. For deliveries in Illinois, Wisconsin, and points directly west of the Mississippi River, Miller Meat Company contracts with a refrigerated fleet that specializes in expediting smaller shipments. For faster delivery during peak times, Miller Meat Company often uses its own trucks to deliver to the expedited fleet's consolidation point from its distribution warehouse in Indiana. During the holiday season, however, several specialty distributors contract with Miller Meat Company to package specialty meats in gift boxes, then ship them directly to the recipients. For these specialty shipments within Indiana, Illinois, and Wisconsin, Miller uses its normal delivery mode. For all other specialty shipments, Miller ships from its distribution warehouse via air, then contracts with expedited carriers in various cities to deliver to the recipients.
99) Which of the following is one of Miller Meat Company's upstream partners? A) local grocers in Indiana who sell the company's products
B) Midwestern farmers who raise beef and pork for the meat processing center C) the refrigerated fleet that expedites small shipments D) air carriers that take Miller's specialty shipments E) recipients of Miller's gift boxes Answer: B Diff: 1 Page Ref: 337 AACSB: Reflective Thinking Skill: Application Objective: 12-1
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