Which is a reason that retailers use distribution centers rather than store inventory on site quizlet?

In the four Ps of marketing, placerefers to all the activities required to get the right products to the right customer when that customer wants it.

TRUE
This is the definition ofplaceas it relates to the four Ps of marketing

Marketing channel management creates value by getting products to customers efficiently.

TRUE
Supply chain management is a set of approaches and techniques employed to get merchandise to the right places at the right times in the right quantities.

A distribution center and a fulfillment center are one and the same

FALSE
A distribution center is a facility for the receipt, storage, and redistribution of goods to company stores; a fulfillment center is used to ship directly to customers.

A marketing channel and a supply chain are virtually the same

TRUE
A marketing channel is the set of institutions that transfer and move goods from the point of production to the point of consumption; this is essentially the same as a supply chain.

In a direct marketing channel, there are no intermediaries between the buyer and the seller

TRUE
Typically, in a direct marketing channel there are no intermediaries between the buyer and seller. For example, an individual who sells handmade purses at craft fairs and on websites like eBay would sell directly to consumers, representing a direct marketing channel.

Radio frequency identification (RFID) tags automatically transmit information about a container's contents or individual products

TRUE
Approximately as large as a pinhead, RFID tags consist of an antenna and a chip that contains an electronic product code that stores far more information about a product than bar (UPC) codes can. The tags also act as passive tracking devices, signaling their presence over a radio frequency when they pass within a few yards of a special scanner.

Quick response (QR) systems allow retailers to maximize their inventory holdings.

FALSE
Quick response (QR; also known as just-in-time) systems are inventory management systems designed to minimize inventory levels (and thus inventory-carrying costs).

Marketing channel relationships evolve when the parties have common goals.

TRUE
Supply chains require cooperation to operate efficiently. If the partners have conflicting goals, there may be channel conflict

Conflicts within a supply chain tend to be more pronounced when the members are part of a corporate vertical marketing system

FALSE
Conflict is generally more pronounced when the channel members are independent entities. Marketing channels that are more closely aligned share common goals and are therefore less prone to conflict.

Universal product codes (UPCs) are used to describe products for inventory taxation purposes.

FALSE
A UPC tag is the black-and-white bar code found on most merchandise. It contains a 13-digit code that indicates the manufacturer of the item, a description of the item, information about special packaging, and special promotions. It records receipt of the merchandise as it arrives at a distribution center.

Retailers generally have no prior knowledge of the merchandise they will be receiving from suppliers in any particular shipment

FALSE
An advanced shipping notice is an electronic document that the supplier sends the retailer in advance of a shipment to tell the retailer exactly what to expect in the shipment.

A firm just starting out usually has the option of choosing from whom it buys and to whom it sells

FALSE
A new firm typically doesn't have the option of designing the "best" marketing channel structure—that is, choosing from whom it buys or to whom it sells. For example, a new sporting goods retailer may not have the option of carrying all the manufacturer lines it wants because other competing retailers in its market area might carry the same products.

When manufacturers such as Pampered Chef sell directly to consumers, they perform both production and retailing activities

TRUE
Pampered Chef acts as a retailer by selling directly to consumers, and as production when it transports the merchandise.

Distribution centers are always operated by distribution specialists

FALSE
Distribution centers may be operated by retailers, manufacturers, or distribution specialists

Wholesalers are often used in an indirect marketing channel.

TRUE
A wholesaler is an intermediary between the manufacturer and the customer, which describes an indirect marketing channel.

When two competing retailers have a disagreement, it is an example of a horizontal channel conflict

TRUE
Horizontal channel conflict occurs between members at the same level of marketing channel, such as two competing retailers.

The vertical marketing system that exhibits the most formalization and control is the corporate vertical marketing system.

TRUE
Of the three vertical marketing systems—administered, contractual, and corporate—corporate exhibits the most formalization and control

Coercive power is based on getting a channel member to behave in a certain way because of a contractual agreement between the two firms.

FALSE
This is the definition oflegitimate power. Coercive power is when a firm threatens to punish a channel member for not undertaking certain tasks

The computer-to-computer exchange of business documents from a retailer to a vendor and back is referred to as vendor-managed inventory (VMI).

FALSE
Electronic data interchange (EDI) is the computer-to-computer exchange of business documents from a retailer to a vendor and back. EDI enables channel members to communicate more quickly and with fewer errors than in the past, ensuring that merchandise moves from vendors to retailers more quickly.

One reason retailers are reluctant to use distribution centers is that retail store space is typically much less expensive than space at a distribution center, so it is more cost-effective to store merchandise and get it ready for sale at the retail store rather than at a distribution center.

FALSE
It is advantageous to use a distribution center since space at a distribution center is typically less expensive than a retail store.

Sophie made pies and sold them from her food truck to local businesses. This is an example of a(n)
A.
direct marketing channel.

B.
distribution center.

C.
simplified transaction.

D.
wholesale operation.

E.
indirect marketing channel.

A.
direct marketing channel.
There are no intermediaries between the buyer and seller in a direct marketing channel, as in this example.

Naomi knows she has to order her store's Christmas holiday merchandise in April to ensure delivery before the holiday season. Naomi is concerned with the supply chain management goal of
A.
providing products at the right time.

B.
providing products at the right locations.

C.
providing the right quantities.

D.
satisfying the service levels supply chain participants expect.

E.
minimizing systemwide costs.

A.
providing products at the right time.
Naomi is concerned with providing products at the right time, making sure holiday merchandise arrives in time so that it will be available to customers who want it.

Trisha makes purses out of old blue jeans and sells them to customers at local craft fairs. What type of marketing channel does this represent?
A.
indirect

B.
vertical

C.
horizontal

D.
direct

E.
simple

D.
direct
In a direct marketing channel, there are no intermediaries between the buyer and seller. Typically, the seller is a manufacturer, such as when a carpentry business sells bookcases through its own store and online to individual consumers. The seller also can be an individual, such as when a knitter sells blankets and scarves at craft fairs, on Etsy, and through eBay

A local furniture store buys furniture from various manufacturers and resells the furniture to its customers. What type of marketing channel does this represent?
A.
horizontal

B.
vertical

C.
indirect

D.
direct

E.
simple

C.
indirect
Whereas a direct marketing channel uses no intermediaries, an indirect marketing channel uses one or more intermediaries to provide goods and services to customers. For example, automobile manufacturers such as Ford and General Motors often use indirect distribution, such that dealers act as retailers.

When a customer purchases a DVD at a Best Buy Electronics store, all of the following information flows in the supply chain are started except
A.
the sales associate scans the UPC recording the sale.

B.
the sale is transmitted to Best Buy's distribution center to adjust inventory data.

C.
the purchase is added to the customer's purchasing habit records.

D.
Best Buy's buyer aggregates sales at all stores and uses the information to send a reorder to the manufacturer.

E.
the point-of-sale terminal records the sale and sends it to Best Buy's buyer.

C.
the purchase is added to the customer's purchasing habit records.
Although customer-specific data may be collected at the point of sale, they are not part of the information that flows in the supply chain.

Steven managed an auto parts store in the 1990s. At that time, stockouts—failure to have the parts auto mechanics needed to do their work that day—increased the likelihood of the mechanics becoming customers of competing auto supply stores. To avoid this problem and keep his business customers, Steven most likely
A.
canceled orders and shifted the business to competitors.

B.
increased promotional outlays to overcome customer dissatisfaction.

C.
used exclusive geographic territories to reduce supply chain inefficiencies.

D.
stockpiled inventory, adding to the cost of providing auto parts.

E.
returned to traditional distribution center logistics.

D.
stockpiled inventory, adding to the cost of providing auto parts.
In response to supply chain inefficiencies—and particularly stockouts—many retailers in the 1990s stockpiled inventory, leading to higher inventory carrying costs.

Flora is frustrated with her company's supply chain management information system. She wants to be able to receive sales data, initiate purchase orders, send and receive invoices, and receive returned merchandise documentation. Flora needs a(n)
A.
cross-docking exchange.

B.
electronic data interchange system.

C.
vendor-managed inventory system.

D.
vertical conflict reduction system.

E.
radio frequency identification system.

B.
electronic data interchange system.
Electronic data interchange (EDI) is the computer-to-computer exchange of business documents from a retailer to a vendor and back.

Colin has just received a delivery from the company's distribution center. He opens the containers and finds the popcorn and snacks are all bar-coded and priced and the package includes an end-of-the-aisle display rack. Colin has received a(n) __________ shipment.
A.
quick-response packaged

B.
ahead of the curve

C.
lead time synchronized

D.
floor-ready

E.
synthesized

D.
floor-ready
Floor-readyrefers to merchandise that has already been ticketed and marked with price and identification labels.

Each time a politician or celebrity writes a book, bookstores can expect at least some customers to want the book, but whether or not it will become a best seller is less certain. The bookstore's primary inventory management challenge is
A.
how to get the author to sign copies of the book.

B.
whether to price the books in the distribution center or at the retail store.

C.
which other books to promote along with this book.

D.
whether or not to display the book at the checkout counter.

E.
having enough books to satisfy customer demands versus the cost of having the inventory.

E.
having enough books to satisfy customer demands versus the cost of having the inventory.
Bookstores must select an order quantity that balances having enough of the books to meet demand with the cost of stocking extra books

At the BMW plant in Spartanburg, South Carolina, rather than use a typical order-to-delivery process, it has suppliers deliver parts every four hours when the plant is in operation. BMW uses a(n) ______ inventory control system.
A.
cross-docking

B.
lead time

C.
just-in-time (JIT)

D.
pick ticket

E.
UPC

C.
just-in-time (JIT)
Just-in-time (JIT)and quick response (QR)both refer to inventory management systems designed to ship smaller quantities more frequently.

Yesterday, Lorinda overheard a surprisingly unpleasant encounter between the manager of the hardware store where she works and a sales rep who sells a well-known line of tools. The rep insisted that his tools should be more prominently displayed and that a better assortment would mean more sales. The manager had other plans and told him so, and the conversation turned into a loud argument. What Lorinda observed was an example of
A.
sales tactics.

B.
channel conflict.

C.
retail strategy tension.

D.
passive aggressive behavior.

E.
a failure of EDI processes.

B.
channel conflict.
Lorinda saw an example of channel conflict. The store manager and the sales rep have conflicting goals—the sales rep wants to sell more of his company's tools, while the store manager wants to maximize sales for the store as a whole.

Felicia had just taken over her family's business after spending ten years in the marketing department of a large corporation. She met with a representative from one of her firm's biggest customers, who told her, "We should think about how we can make the pie bigger rather than fighting over the size of the slices." She had expected a more cutthroat approach rather than this call for a
A.
partnering relationship.

B.
shared mission statement.

C.
common marketing system.

D.
corporate vertical marketing system.

E.
linked supply chain.

A.
partnering relationship.
Felicia's customer is proposing a partnering relationship, in which she and the customer will look for opportunities that are mutually beneficial and will seek to maintain the relationship over the long term.

TT TOYS manufactures toys. The company recently started buying paint for its toys from a Chinese firm. This Chinese company is part of TT Toys'
A.
supply chain.

B.
corporate vertical marketing system.

C.
distribution center.

D.
CFPR.

E.
voluntary chain.

A.
supply chain.
Supply chain management is a set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless operation

When Cynthia's Boutique receives dresses, they already have price tags and are on hangers. Cynthia's Boutique receives __________ merchandise.
A.
floor-ready

B.
repurposed

C.
just-in-time

D.
quick response

E.
horizontal channel

A.
floor-ready
Floor-ready merchandise is merchandise that is ready to be placed on the selling floor.

When Joe's Chicken Shack wants chicken delivered in smaller batches more frequently, it offers its distributors an incentive in the form of special bonuses to change their schedules. Joe's demonstrates which kind of power?
A.
coercive

B.
reward

C.
referent

D.
expertise

E.
information

B.
reward
This is example of reward power.

________ power is based on getting a channel member to behave in a certain way because of a contractual agreement.
A.
Coercive

B.
Reward

C.
Referent

D.
Expertise

E.
Legitimate

E.
Legitimate
definition

When her company's dry goods deliveries were late for the third time, Melissa withheld payment from her supplier until it was back on schedule. This is an example of ________ power.
A.
coercive

B.
reward

C.
referent

D.
expertise

E.
legitimate

A.
coercive
Coercive power involves punishing a channel member for not undertaking certain tasks, such as timely delivery of products

After installing an electronic data interchange, Carmella's gift shop was able to reduce _______, the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise.
A.
quick time

B.
the advance notice

C.
lead time

D.
float time

E.
supply chain conflict time

C.
lead time
Lead time is the time it takes to receive merchandise from the point when a decision is made to place an order. EDI can reduce cycle time by electronically transmitting information between the buyer and seller.

The amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller's store to be available for sale is referred to as
A.
quick time.

B.
an advanced shipping notice.

C.
lead time.

D.
float time.

E.
supply chain conflict time.

C.
lead time.
Lead time is the time it takes to receive merchandise from the point when a decision is made to place an order

Leona is the logistics manager for the Barnes & Noble bookstore chain. She is weighing the many benefits of the company's JIT system, but will need to consider that just-in-time inventory management systems increase _______ costs.
A.
sales force labor

B.
transportation

C.
promotional

D.
advertising

E.
new product development

B.
transportation
JIT systems, despite their benefits, increase complexity and transportation costs associated with distribution. It is simpler and more straightforward to place a small number of large-quantity orders and then to stockpile inventory until it is needed; however, for many firms the benefits of JIT far outweigh the cost of the greater complexity

Which is an advantage of using a distribution center quizlet?

Which of the following is an advantage of using distribution centers over direct store delivery?

What is one advantage to using a distribution center retailers can carry less merchandise?

When it is most beneficial and appropriate for a retailer to use a distribution center?