mktg exam 11 – Flashcards
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5) A ________ is made up of the company, suppliers, distributors, and customers who partner to improve the performance of the entire system.
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A) value delivery network
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6) A ________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.
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C) marketing channel
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7) Which of the following is most likely true of marketing channel decisions?
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A) They often involve long-term commitments to other firms.
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8) ________ play an important role in matching supply and demand by providing consumers with a broad assortment of products in small quantities.
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B) Intermediaries
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9) From the economic system's point of view, the role of ________ is to transform the assortments of products made by producers into the assortments wanted by consumers.
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B) marketing intermediaries
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10) A ________ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.
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B) channel level
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11) In a(n) ________ channel, the same member both produces and distributes a product or service to consumers.
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B) direct
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12) Which of the following companies uses a direct marketing channel?
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D) Holly Wreaths, a store that sells Christmas ornaments to customers via its online click-to-order catalogs
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13) Lifebelt Insurance sells insurance only through its door-to-door salespeople. What type of marketing channel does Lifebelt use?
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D) direct
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14) At its most basic form, a marketing channel consists of the producer and the ________.
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E) consumer
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15) A marketing channel that consists of one or more intermediaries is known as a(n) ________ marketing channel.
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E) indirect
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16) Plasticine Palace supplies its products exclusively to Arts & Crafts, a chain of stationery stores across the country. The chain then makes the plasticine available to end consumers. This is an example of ________.
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C) an indirect marketing channel
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17) Which of the following is an example of an indirect marketing channel?
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C) Wine & Dine, which sells its picnic baskets to select novelty stores across the country
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18) The greater the number of channel levels in a marketing channel, the ________.
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B) greater the channel complexity
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19) Which of the following is a conventional consumer marketing channel?
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B) producer to wholesaler to retailer to end consumer
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20) Which of the following is an indirect business marketing channel?
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E) producer to business distributor to business customer
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21) Which of the following is a type of flow that connects all institutions in a marketing channel?
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A) payment flow
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22) Which of the following is Giant Beanstalks' upstream partner?
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B) the farmers of Riverdale
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34) ________ are complex behavioral systems in which people and companies interact to accomplish individual, company, and channel goals.
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B) Distribution channels
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35) Which of the following is true of channel members?
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B) They play specialized roles in the channel.
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36) Conflict that occurs among firms at the same level of the marketing channel is known as ________ conflict.
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B) horizontal
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37) Conflict that occurs between different levels of the same marketing channel is known as ________ conflict.
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B) vertical
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38) Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ________ conflict.
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E) horizontal
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39) The management of two Panizza restaurants has an ongoing disagreement over the discount rate given to students from the local high school. This is an example of ________ conflict.
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D) horizontal
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40) When KFC came into conflict with its franchisees over the brand's Unthink KFC repositioning, which emphasized grilled chicken over its traditional Kentucky fried chicken, KFC experienced ________ conflict.
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B) vertical
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41) Stylize, Inc. opened an online store that triggered disagreements between headquarters and the firm's exclusive dealers. This type of a disagreement is known as a(n) ________ conflict.
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A) vertical
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42) A(n) ________ consists of one or more independent producers, wholesalers, and retailers, each seeking to maximize its own profits, sometimes even at the expense of the system as a whole.
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B) conventional distribution channel
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43) Which of the following is true of conventional distribution channels?
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B) Channel members seek to maximize their own profits.
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44) A(n) ________ marketing system consists of producers, wholesalers, and retailers acting as a unified system.
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B) vertical
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45) Which of the following is true of vertical marketing systems?
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A) Producers, wholesalers, and retailers act as a unified system.
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46) Which of the following is a major type of vertical marketing system?
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A) corporate
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47) A ________ VMS integrates successive stages of production and distribution under single ownership.
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B) corporate
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48) A ________ VMS consists of independent firms at different levels of production and distribution who join together through formal agreements to obtain more economies or sales impact than each could achieve alone.
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C) contractual
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49) The ________ organization is the most common type of contractual relationship.
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A) franchise
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50) Ford and its network of independent franchised dealers is an example of a ________.
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A) manufacturer-sponsored retailer franchise system
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51) Fire Up makes fireproof clothing material and it licenses select stores around the world to use its material to make finished products with the Fire Up logo. Which of the following type of franchising is evident here?
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B) manufacturer-sponsored wholesaler franchise system
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52) In a(n) ________, leadership is assumed not through common ownership or contractual ties but through the size and power of one or a few dominant channel members.
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B) administered VMS
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53) ________ VMS is a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties.
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B) Administered
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54) In a(n) ________, two or more companies at one level join together to follow a new marketing opportunity.
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B) horizontal marketing system
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55) Which of the following is most likely a manufacturer-sponsored retailer franchise system?
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C) Toyota and its network of independent franchised dealers
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56) When McDonald's offers its products inside of a Walmart store, it is using a(n) ________.
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E) horizontal marketing system
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57) A(n) ________ system involves a single firm setting up two or more marketing channels to reach one or more customer segments.
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E) multichannel distribution
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58) Atlas Imports and Exports sells products directly to consumers via the Atlas Web site, and through local retailers as well. Which of the following is evident here?
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C) multichannel distribution system
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59) Movie Giants offers DVD rentals through its Web site. It also offers DVD rentals via Star City stores. This is an example of a(n)________ distribution system.
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E) multichannel
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60) Which of the following is an advantage of adding new channels in a multichannel distribution system?
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C) expanding sales and market coverage
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61) Which of the following is a disadvantage of adding new channels in a multichannel distribution system?
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B) decreasing control over the system
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62) ________ occurs when product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones.
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C) Disintermediation
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63) The Bookworm began delivering books directly to customers through mail instead of selling through brick-and-mortar companies. This is an example of ________.
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B) disintermediation
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64) Which of the following is true of changes in the organization of distribution channels?
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C) The growth of the Internet threatens many brick-and-mortar companies with disintermediation.
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65) What distribution strategy does Giant Beanstalks use?
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B) exclusive distribution
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82) Which of the following should be a manufacturer's first step when designing an effective marketing channel?
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B) analyze consumer needs
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83) Which of the following is an environmental factor that affects channel objectives and design?
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A) economic conditions
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84) ________ distribution is a strategy in which producers of convenience products and raw materials stock their products in as many outlets as possible.
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B) Intensive
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85) For which of the following products would the intensive distribution strategy most likely be used?
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D) soft drinks
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86) Whitelight sells its toothpastes in many convenience stores across the country. This is an example of ________ distribution.
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D) intensive
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87) With which of the following strategies would a company give only a limited number of dealers the right to distribute its products in their territories?
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A) exclusive distribution
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88) For which product would a company use an exclusive distribution strategy?
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A) luxury cars
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89) Ocean Spray sells its air fresheners only through Ray's Drugs. This is an example of ________ distribution.
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A) exclusive
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90) ________ distribution involves the use of more than one but fewer than all of the intermediaries who are willing to carry a company's products.
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B) Selective
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91) Which of the following is true of the exclusive distribution strategy?
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C) It helps promote a brand's luxury image.
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92) When the seller allows only certain outlets to carry its products, this strategy is called ________.
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A) exclusive distribution
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93) When a seller requires its dealers to abstain from handling competitors' products, it is called ________.
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B) exclusive dealing
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94) Why do firms have difficulty accessing potential market areas in developing countries, such as China and India?
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A) inadequate distribution systems
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103) ________ management calls for selecting, managing, and motivating individual channel members and evaluating their performance over time.
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B) Marketing channel
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104) To help recruit, train, organize, manage, motivate, and evaluate relationships with channel partners, companies are now installing integrated high-tech ________ systems.
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D) partnership relationship management
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105) A strategy of exclusive dealing is most likely considered legal if ________.
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C) competition is not substantially lessened
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106) Which of the following involves the producer agreeing not to sell to other dealers in a given area, or the buyer agreeing to sell only in its own region?
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C) exclusive territorial agreement
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107) Producers of strong brands sometimes sell to dealers only on the condition that dealers take some or all of the rest of a product line. This practice is known as ________.
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D) full-line forcing
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114) Smart Shoppers, an online store that delivers its products to homes in and around California, recently switched its entire fleet to biodiesel trucks that run on used cooking oil rather than gas. Smart Shoppers has most likely developed a(n) ________.
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B) green supply chain
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115) ________ involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit.
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D) Marketing logistics
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116) ________ logistics starts with the marketplace and works backward to the factory or even to sources of supply.
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B) Customer-centered
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117) ________ logistics involves moving products from the factory to resellers and ultimately to customers.
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B) Outbound
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118) ________ logistics refers to moving products and materials from the suppliers to the factory.
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C) Inbound
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119) Reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers is known as ________.
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B) reverse logistics
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120) ________ management refers to the management of upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.
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B) Supply chain
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121) Which of the following is NOT a major logistics function?
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B) product designing
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122) ________ are large and highly automated warehouses designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible.
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C) Distribution centers
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123) ________ or smart tag technology helps companies locate a product's exact position within its supply chain.
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A) RFID
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124) Which of the following is true of using trucks as a transportation mode?
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D) Trucks are highly flexible in their routing and time schedules.
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125) Which of the following is true of transporting goods via railroads?
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C) Railroads are a cost-effective way to ship large amounts of bulk products over long distances.
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126) Which of the following is true of shipping goods via water transportation?
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E) Water transportation is the slowest mode of transportation and the most affected by the weather.
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127) ________ are a specialized means of shipping petroleum, natural gas, and chemicals from sources to markets.
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D) Pipelines
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128) Which of the following is true about using air carriers as a transportation mode when shipping products?
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D) Air carriers are ideal when time is short and speed is needed.
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129) In intermodal transportation, which of the following describes the use of both rail and trucks for transportation?
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D) piggyback
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130) In intermodal transportation, which of the following describes the use of both water and trucks for transportation?
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A) fishyback
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131) Which of the following is the most effective way for a company to ship bulky, non-perishable products if its key requirement is low price?
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D) water carriers
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132) Which of the following is the most effective way for a company to ship perishable goods over long distances, if its key requirement is speed?
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B) air transport
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133) Heart of Midnight sells blue orchids to major florists around the world. Their key requirement is speed. Which of the following modes of transport will help them?
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B) air carriers
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134) Using ________, retailers can share real-time data on sales and current inventory levels with suppliers.
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B) vendor-managed inventory (VMI) systems
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135) ________ management is the logistics concept that emphasizes teamwork—both inside the company and among all the marketing channel organizations—to maximize the performance of the entire distribution system.
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B) Integrated logistics
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136) Roland is the logistics manager of Giant Beanstalks. Which of the following is NOT an area of responsibility for him?
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C) the advertising of the final product
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137) Which of the following modes of transport should Roland choose to transport the unprocessed vegetables from Riverdale's farms to the Giant Beanstalks' factory quickly and with minimum cost?
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C) truck
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138) What distribution strategy does Kimberly's Crown use?
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C) selective
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139) When one of the stores complains that the jewelry they're being given is inferior to the jewelry Kimberly sells to other stores, Kimberly experiences ________ conflict.
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C) vertical
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140) Kimberly decides to alter its distribution strategy so that its jewelry is accessible to the public only through one distributor. The strategy they're considering is known as ________ distribution.
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C) exclusive
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141) What mode of transport should Kimberly use to ship its goods over long distances as quickly as possible?
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C) air transport
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