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.
1. Refer to Scenario 14.1. Liz Claiborne, Inc. uses which type of channel of distribution for its premium brands?
a. A short, direct channel
b. A long, direct channel
c. Dual distribution
d. Horizontal integration
e. Intensive distribution
2. Refer to Scenario 14.1. The Liz & Co brand is sold only at J.C. Penney's. This is an example of ____ distribution.
a. selective
b. routine
c. horizontal
d. intensive
e. exclusive
3. Refer to Scenario 14.1. If Liz Claiborne were to distribute their Kate Spade brand through its company-owned stores andthrough wholesalers, to major department stores, then Liz Claiborne would be using ____ distribution.
a. intensive
b. vertical
c. horizontal
d. dual
e. exclusive
4. Refer to Scenario 14.1. Which of the following is most likely the primary factor Liz Claiborne, Inc. used when selecting the marketing channel for its Juicy Couture brand?
a. characteristics of the intermediaries
b. product attributes
c. type of organization
d. marketing environmental forces
e. competition
Scenario 14.2- Use the following to answer the questions.
Star Supplies, Inc. manufactures commercial-grade floor cleaners, such as vacuums and floor polishers. The firm has recently begun manufacturing other janitorial-related product lines, such as paper products and chemical cleaners. Star Supplies distributes its products in two ways. It sells its vacuum, floor polisher, and janitorial supply products to an independent business that takes title to the products and then sells them to various small businesses throughout the region. Also, Star has a list of large businesses that it distributes to directly, on an as-needed basis. These businesses keep very little inventory and purchase janitorial supplies in small quantities. Recently, Star has decided to add new two new service product lines¾paper shredding and a uniform rental service. Clint Rodriguez, the marketing manager, is conducting a meeting to discuss the ways in which Star can strategically manage these new businesses. Star has the choice of marketing the paper shredding service to their large business clients, by picking up the paper as they drop off the other janitorial supplies, or they can buy a small paper shredding business and market to both large and small business customers. With regard to the uniform rental service, Star can either pick up and deliver the uniforms to the small businesses themselves, or contract that out to a third party.
5. Refer to Scenario 14.2. Star Supplies, Inc. is most likely using which of the following to market its vacuum, floor polisher, and janitorial supplies to its small business customers?
a. Wholesalers
b. Retailers
c. Merchants
d. Industrial distributors
e. Manufacturers' agents
6. Refer to Scenario 14.2. Currently, Star is using the ____ approach to distributing its janitorial supplies to its large customers.
a. intensive
b. just-in-time
c. segmented
d. outsourcing
e. exclusive
7. Refer to Scenario 14.2. When Clint suggested that Star consider purchasing a paper shredding business and then offer the service to its large and small business customers, he was suggesting a method called ____, where Star would be the ____.
a. horizontal integration; channel manager
b. horizontal integration; channel captain
c. vertical integration; channel captain
d. outsourcing; channel manager
e. outsourcing; channel captain
8. Refer to Scenario 14.2. Clint's suggestion for the uniform rental service was either picking up and delivering the uniforms themselves, or contracting this to a third party. If Star decides to pick up and deliver the uniforms with its own trucks, this is an example of a(n) ____ channel. If Star contracts this action to a third party, it is called ____.
a. long; industrial distribution
b. direct; industrial distribution
c. long; outsourcing
d. direct; outsourcing
e. exclusive; outsourcing
Scenario 15.1- Use the following to answer the questions.
Landry Restaurants, Inc. owns a number of different franchised restaurants, including the Rain Forest Cafe and their recent addition, the T-Rex Cafe. Both the Rain Forest and T-Rex restaurants differentiate themselves from their competitors by offering a unique dining experience. At the Rain Forest Cafe you can dine under a ceiling of lush tropical forest plants while you are viewing the enormous aquarium with exotic fish. Periodically, the rain forest explodes with the sound of waterfalls and birds. Giant stuffed monkeys, parrots, and other jungle creatures are planted within the landscape. The Rain Forest Cafe also contains a gift shop, where customers can purchase t-shirts, hats, and other items emblazoned with the Rain Forest logo. The newer T-Rex Cafe has a similar approach to the uniqueness of the dining experience. The T-Rex Cafe offers guests a hands-on prehistoric experience, including educational, interactive computer screens. Customers can also pan for precious gems and fossils in Discovery Creek or feast on food from the Kitchen of Fire. The T-Rex Cafe also has a gift shop, where customers can purchase items with the T-Rex logo or build their very own stuffed dinosaur, through "Build-a-Dino" by the "Build-a-Bear" franchise.
9. Refer to Scenario 15.1. The unique dining experiences offered by the Rain Forest Cafe and T-Rex Cafe represent the strategic issue of ____ addressed by the restaurants.
a. retail location
b. product mix
c. retail positioning
d. the wheel of retailing
e. customer segmentation
10. Refer to Scenario 15.1. The lush tropical plants, aquarium, and stuffed animals represent the ____ of the Rain Forest Cafe.
a. product lines
b. retail positioning
c. scrambled merchandising
d. atmospherics
e. interior location
11. Refer to Scenario 15.1. The Rain Forest Cafe and T-Rex Cafe are usually located in tourist-dense areas or large shopping malls in order to capture walk-by traffic. If the restaurants' primary focus was to obtain customers who are walking by, they would definitely not want which of the following locations?
a. strip centers
b. free-standing buildings
c. regional shopping centers
d. the Mall of America
e. a traditional business district
Scenario 15.2- Use the following to answer the questions.
Lands' End offers clothing and accessories for all members of the typical household. For many years, the products were sold only through catalogs. Later, they were available through the company on its Internet website. In the past few years, Lands' End has partnered with Sears to offer selected Lands' End products inside of Sears retail stores. This move by Lands' End has been criticized by some marketers because it was thought that the Lands' End products were superior in quality to those that are available in Sears stores. Additionally, the products available in Sears stores include Craftsman tools, lawn care equipment, and household appliances, which are not Lands' End types of product lines. This may create mixed messages about Lands' End to prospective customers.
12. Refer to Scenario 15.2. When Lands' End sells its products through a catalog or the Internet, it is most likely a(an) ____, selling through ____.
a. off-price retailer; direct marketing
b. mass merchandiser; retail outlets
c. retailer; direct marketing
d. specialty retailer; retail outlets
e. category killer; direct marketing
13. Refer to Scenario 15.2. In comparison to Lands' End, Sears has a product mix that is most likely
a. wider but not deeper.
b. deeper but not wider.
c. wider and deeper.
d. narrower and deeper.
e. narrower, but not deeper.
14. Refer to Scenario 15.2. The move to sell Land's End products inside of Sears' stores may lead to potential problems with the customer's perception of Lands' End quality, in part due to the functional and psychological picture in the consumer's mind of Sears' stores. This picture is called the ____ of Sears.
a. store location
b. atmospherics
c. product depth
d. store image
e. interior persona
15. Refer to Scenario 15.2. By locating in the Sears' stores, Lands' End can do all of the following, except
a. facilitate comparison shopping.
b. facilitate wholesale exchanges.
c. create place utility.
d. create time utility.
e. facilitate consumer exchanges.
MULTIPLE CHOICE-
16. Long-term partnerships among channel members working together to reduce inefficiencies, costs, and redundancies in the entire marketing channel is called
a. supply chain management.
b. vertical channel integration.
c. industrial management.
d. industrial distribution.
e. marketing management.
17. The Home Depot is trying to reduce transportation, information management, and administrative costs. To accomplish this goal, channel members need to
a. work independently.
b. avoid cooperation due to antitrust considerations.
c. work with competitors and share information.
d. increase competition among channel members.
e. cooperate and accommodate one another's needs.
18. The supply chain includes
a. producers, wholesalers, and retailers.
b. suppliers, producers, intermediaries, and customers.
c. suppliers and suppliers' suppliers.
d. all entities that facilitate product distribution.
e. buyers, seller, marketing intermediaries, and agents.
19. All members of the supply chain should determine their position in the chain, identify their partners and their roles, and establish partnerships whose focus is
a. shifting costs to suppliers.
b. maximizing costs.
c. maximizing technology implementation.
d. cooperation with competitors.
e. customer relationships.
20. Wal-Mart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of
a. supply chain management.
b. a vertical marketing system.
c. a horizontal marketing system.
d. channel conflict.
e. dual distribution.
21. A group of organizations and individuals that directs the flow of products from producers to the ultimate consumers is called a
a. free trade association
b. marketing channel
c. channel of suppliers
d. production line-up
e. chain of retailers
22. A channel of distribution is defined as a group of individuals and organizations that
a. consumes about one-half of every dollar spent on products in the United States.
b. directs the flow of products from producers to customers.
c. links producers to other marketing intermediaries.
d. takes title to products and resells them.
e. manages transportation and warehousing functions.
23. The driving force behind marketing channel decisions should be
a. convenience.
b. cost reduction.
c. environmental concerns.
d. customer satisfaction.
e. quality.
24. What links producers to consumers through the purchase and reselling of products or contractual agreements?
a. Marketing intermediaries
b. Distributors
c. Suppliers
d. Middle marketers
e. Marketing channels
25. Most marketing channels have marketing intermediaries. A marketing intermediary's role is to
a. link wholesalers to other wholesalers.
b. link producers to other middlemen or to consumers.
c. always sell products to wholesalers.
d. not take title to products.
e. always sell products to retailers.
26. A general merchandise retailer offers
a. a single product line that is stocked in depth.
b. few product lines with deep assortments of these lines.
c. few choices of a large variety of product lines.
d. products through the Internet and catalogs only.
e. a variety of product lines that are stocked in depth.
27. Supermarkets, discount stores, and hypermarkets can all be classified as
a. superstores.
b. general merchandise retailers.
c. department stores.
d. specialty retailers.
e. off-price retailers.
28. Compared with other types of retailers, department stores compete mainly on the basis of
a. customer services.
b. low prices.
c. a very deep assortment of a few specific products.
d. high sales volume.
e. catalog sales.
29. Nordstrom's, Macy's, and JC Penney's are all considered
a. department stores.
b. discount stores.
c. off-price retailers.
d. specialty retailers.
e. category killers.
30. If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is a(n)
a. off-price retailer.
b. department store.
c. discount store.
d. superstore.
e. supermarket.