MKG 300 Exam 3- Chapter 11

question

When planning physical distribution, the marketing manager should: A) Set the customer service level so that every customer can get the product exactly when he wants it B) Minimize the cost of distribution for a given customer service level C) Minimize the cost of transportation D) Maximize the speed of delivery E) Make use of a distribution center
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B) Minimize the cost of distribution for a given customer service level
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The ______________ concept says that all transporting, storing, and product-handling activities of a business and a channel system should be thought of as part of one system which should seek to minimize the cost of distribution for a given customer service level. A) PERT B) Product-market C) Distribution center D) Physical distribution E) Marketing
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D) Physical distribution
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Which of the following statements best reflects a marketing-oriented approach to physical distribution? A) “We should create a position of inventory manager and give that person authority to coordinate all physical distribution activities to minimize the firm’s total inventory costs” B) “We should aim to keep our customers fully satisfied 100% of the time as this will increase our sales and give us a competitive advantage” C) “We should replace our warehouses with distribution centers to speed the flow of products and eliminate all storage” D) “We should choose the physical distribution alternative that will minimize the total cost of achieving the level of customer service our target market requires” E) All are equally “marketing-oriented”
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D) “We should choose the physical distribution alternative that will minimize the total cost of achieving the level of customer service our target market requires
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Physical distribution decisions interact with which other marketing mix decisions? A) Price decisions B) Promotion decisions C) Product decisions D) All of the above E) None of the above
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D) All of the above
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A supply chain: A) Is part of a broader network of relationships called a channel of distribution B) Is most effective when the objectives of the manufacturer at the beginning of the chain guide the activities of all other firms in the chain C) Requires skill in coordinating activities among different firms, and this has prompted many firms to seek help from outside experts D) Focuses on procuring materials needed for production, so its main weakness is that it ignores customer needs E) Concerns only direct relationships between producers, but a channel of distribution may involve intermediaries
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C) Requires skill in coordinating activities among different firms, and this has prompted many firms to seek help from outside experts
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Electronic data interchange: A) Puts information in standardized format B) Makes inventory formation more accessible C) Is common in both domestic and international markets D) All of the above E) Both A and B
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D) All of the above
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Which of the following statements about the transporting function is true? A) Among transportation modes, an advantage of air transport is its ability to handle a variety of goods B) Because transportation costs are less than 1% of costs for most products, marketing managers do not need to consider them when making strategy decisions C) Pipelines are generally one of the fastest modes of transportation D) In most countries, government plays little role in transportation E) Transporting costs can be a large part of total cost for heavy products that are low in value
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E) Transporting costs can be a large part of the total cost for heavy products that are low in value
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Which of the following products would have the lowest transporting costs as a percentage of the selling price? A) Electronic equipment B) Chemicals and plastics C) Pharmaceuticals D) Sand and gravel E) Manufactured food
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C) Pharmaceuticals
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More freight is carried more miles _______ than any other mode of transportation. A) By railroads B) By air C) By pipeline D) By trucks E) Over water
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A) By railroads
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All of the following are advantages of using trucks except: A) Flexibility B) Fast delivery speed C) Reliability in meeting delivery schedules D) Handling a variety of goods E) Serving a limited number of locations
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E) Serving a limited number of locations
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At least ______ percent of all freight shipped in the United States moves by trucks– at least part of the way– from producer to user. A) 20% B) 75% C) 15% D) 5% E) 10%
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B) 75%
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Which of the following transportation modes is “best” at handling a variety of goods? A) Truck B) Rail C) Water D) Air E) Pipeline
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C) Water
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______ as a mode of transport serves a very limited number of locations but has high dependability in meeting schedules. A) Trucks B) Railroads C) Waterways D) Airfreight E) Pipelines
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E) Pipelines
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Regarding airfreight, which of the following statements is not true? A) Airfreight may reduce the total cost of distribution B) Inventory costs usually increase, since only small quantities can be shipped at a time C) Very bulky items cannot be shipped economically D) Airfreight is opening up new markets for many perishable items E) There are usually fewer problems from theft and damage with airfreight
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B) Inventory costs usually increase, since only small quantities can be shipped at a time
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Inventory refers to: A) The amount of goods being stored B) Minimizing storage costs C) The amount of goods being sold D) The marketing function of holding goods E) The quality of goods being stored
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A) The amount of goods being stored
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Storing: A) Is related to Place– but has not effect on price. B) Is necessary because production does not always match consumption C) Must be performed by all members of a channel system D) Decrease the value of products E) All of the above are true statements
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B) Is necessary because production does not always match consumption
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Which of the following statements in not true? A) Storing is a marketing function B) Storing allows producers and intermediaries to keep stocks at convenient locations C) Storing allows the producer to achieve economies of scale in production D) Storing is necessary when production of goods doesn’t match consumption E) Storing can increase the value of goods, but does not involve costs
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E) Storing can increase the value of goods, but does not involve costs
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Distribution centers: A) Are designed to facilitate the flow of products through the channel B) Are the same as public warehouses C) Are not places where regrouping activities– such as bulk-breaking– are performed. D) Increase storing costs E) All of the above
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A) Are designed to facilitate the flow of products through the channel
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Each of the following would be most likely to help a company to increase its physical distribution service levels except: A) Increasing the availability of online status information B) Increasing accuracy in filing customer orders C) Increasing the time allocated to enter and process orders D) Decreasing the amount of damage in shipping, handling, and storage E) Decreasing the time needed to deliver product orders
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C) Increasing the time allocated to enter and process orders
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A trucking company would be least likely to use global positioning data to determine which of the following? A) The exact locations of fueling stations on a route B) The frequency of rest stops on a particular route C) The names of routes that minimize fuel consumption D) The identification of route that maximize service E) The content of driver communications with customers
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E) The content of driver communications with customers
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A floral delivery company uses JIT delivery systems throughout its entire distribution channel. Which of the following is most likely to be experienced by the company as a result? A) Increased product marketing costs B) Increased costs of handling floral products C) Decreased need for physical distribution (PD) coordination D) Reduced costs of storing floral inventory E) Reduced need for physical distribution (PD) quality control
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D) Reduced costs of storing floral inventory
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A manufacturer having irregular need for regional storage of bicycles should use which one of the following? A) A private warehouse to be sure of adequate space B) Public warehouses to provide flexibility and low unit cost C) A distribution center D) Direct distribution E) Railroads, because they are slow and the bicycles are being stored while they’re on the train
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B) Public warehouses to provide flexibility and low unit cost
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The physical distribution customer service level is important because: A) It is a measure of how rapidly and dependably a firm delivers what its customers want B) It may result in lost sales if it is too low C) It may result in high costs (and thus lower profits) if it is too high D) All of these alternatives are correct
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D) All of these alternatives are correct
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Berry Bros wants to ship a somewhat bulky, high-valued commodity a short-distance– and it is seeking low-cost and extremely fast service. Berry should use: A) Airfreight B) Railroads C) Inland waterways D) Trucks E) None of these is a good answer
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D) Trucks
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According to the “physical distribution concept”: A) Transporting, storing, and product-handling are independent activities B) All transporting, sorting, and product-handling activities of a business and a whole channel system should be coordinated as part of one system C) Inventories should be based on production requirements D) The production department should be responsible for warehousing and shipping E) The lowest-cost distribution system is the best alternative
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B) All transporting, sorting, and product-handling activities of a business and a whole channel system should be coordinated as part of one system
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Transporting costs: A) Are usually more than the value added by shipping, but the products are shipped anyway as there is no choice B) Do no vary much as a percentage of the final price of products, since big items are shipped by inexpensive means and small items are shipped by more expensive approaches C) Usually do not add much to the final cost of products which are already valuable relative to their size and weight D) Usually are not large enough to limit the target market that marketing manager can serve E) None of these alternatives is correct
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C) Usually do not add much to the final cost of products which are already valuable relative to their size and weight

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