Place Strategy: Channels, Supply Chain, and Logistics

Question 1

In a supply chain setting, replenishment time refers to the lag from ordering an item until it is:
A. Billed and paid for
B. Acknowledged by the customer
C. Received and ready for use or sale
D. Billed to the customer

Answer 1

C

Question 2

Jacy’s is a department store that sells their own private labels and also certain name brand products. An upscale designer would like to introduce his product line into Jacy’s. Due to the weak economy, Jacy’s is worried about the new line selling during the upcoming holiday season and does not want to take the risk. Which intermediary function is Jacy’s unwilling to perform in this instance?
A. Selling Function
B. Facilitating Function
C. Financing Function
D. Transactional Function

Answer 2

D

Question 3

Rack jobbers are wholesalers who
A. Work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory
B. Own the merchandise they sell but do not physically handle, stock or deliver it
C. Furnish the shelves that display merchandise in retail stores, perform all channel functions and sell on consignment to retailers
D. Own the merchandise they sell and use warehouse racks to store it

Answer 3

C

Question 4

Indirect channels for consumer goods
A. Occur when one firm’s marketing channels are used to sell another firm’s products
B. Include producers and end-users dealing directly with each other
C. Include intermediaries that are between the producer and consumer and perform numerous channel functions
D. Are arrangements whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product

Answer 4

C

Question 5

An independently-owned wholesaler for a t-shirt company in Chicago takes ownership and physical possession of the t-shirts. They offer credit as well as conduct some marketing research. However, the wholesaler does not have an outside sales force or print a catalog of the t-shirts they carry. This wholesaler is classified as a(n):
A. Manufacturer’s Sales Office
B. Distributor
C. Jobber
D. Agent

Answer 5

C

Question 6

Kim, Chrys, and Jesse all make chocolates. Kim wants to get her milk chocolates into as many places as possible so that customers can simply walk into any store and be able to purchase them. Chrys is focused on only a few stores in each market and wants to get them to sell his raspberry chocolates. Finally, Jesse thinks that he has the best chocolate recipe in the universe and will only sell his chocolates to the most prestigious store in each of the nation’s largest cities. Which of the following is an accurate portrayal of channel coverage that Kim, Chrys, and Jesse are trying to achieve?
A. Kim: Selective, Chrys: Direct, Jesse: Premium
B. Kim: Consumer, Chrys: Retail, Jesse: Manufacturer
C. Kim: Intensive, Chrys: Exclusive, Jesse: Selective
D. Kim: Intensive, Chrys: Selective, Jesse: Exclusive

Answer 6

D