Unit 5 Quiz – Flashcards with Answers

Although some middlemen may resent this approach, a manufacturer may have to use "multichannel distribution" because: a. present channel members are doing a poor job b. the firm desires to reach different target markets c. small retailers want to deal directly d. antitrust regulations prohibit relying on just one channel system

The right physical distribution system should be based primarily on: a. the desired customer service level b. how customers store the product c. the physical characteristics of the product d. what is the lowest cost method of transportation for the product

A supply chain: a. focuses on making services available whereas a channel of distribution focuses on making goods available b. may involve many firms, but only one manufacturer c. includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers d. is easier to coordinate than a channel of distribution

Which of the following statements about just-in-time delivery is TRUE? a. every firm should try to use the just-in-time approach to physical distribution b. just-in-time increases storing and handling costs for everyone in the channel c. just-in-time delivery systems typically shift more responsibility for PD activities to the customer rather than the supplier d. just-in-time reduces storing and handling costs for business customers

The "physical distribution concept" is probably being used in a firm if: a. inventories are set based on just-in-time delivery policies b. the total cost of distribution is as low as possible c. storing costs have been minimized d. transporting, storing, and product-handling are seen as interrelated parts of one physical distribution system

Which of the following statements about electronic data interchange is FALSE? a. inventory information is automatically updated b. EDI has not yet spread to international markets c. a customer transmits its order information directly to the supplier's computer d. EDI puts information into a standardized format

A large beer brewery acquiring a popular pub is an example of: a. dual distribution b. vertical integration c. a tying contract d. horizontal integration

Marketing specialists develop to adjust "discrepancies" in the marketplace. Which of the following best explains the concept of "discrepancies"? a. there are many more consumers than there are producers b. the assortment and quantity of products wanted by a customer may be different than the assortment and quantity of products normally produced by a manufacturer c. supply and demand is no longer determined by market forces because "big business" is more powerful than the individual consumer d. price is not always a reliable measure of a product's quality

Pitney Bowes manufactures postal scales. A Pitney Bowes sales rep sells the postal scale to Staples (an office supply retail store). Lori, from the Big L Accounting Firm stops by Staples to purchase the postal scale. Which channel of distribution has the postal scale traveled through? a. direct channel b. indirect channel c. general retail channel d. general wholesale channel

Small farmers in the mountains of Colombia pick coffee beans by hand, obtaining only a bucket a day. Then they sell them to buyers who put the beans in large bags to be shipped to processors. This regrouping activity is called: a. assorting b. wholesaling c. bulk-breaking d. accumulating

When a channel has a "product-market commitment": a. each member of the channel should focus on a different target market b. its members attempt to share the various marketing functions in appropriate ways c. there is no need for a channel captain to develop d. the channel can eliminate the marketing functions

A channel of distribution: a. is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user b. is only needed when products must be stored c. must include one or more middlemen d. helps create possession utility but not time utility

Which of the following statements about Place is true? a. most consumer products and most business products are sold to middlemen who then sell them to final customers b. place decisions are usually harder to change than other marketing mix decisions c. service firms seldom use direct channels d. a series of individuals who aid in the flow of goods and services from producer to final customer is called a distribution network

Transporting costs: a. are the only criterion for selecting the best mode of transportation b. do not vary much no matter which mode of transportation is used c. usually add relatively little to the cost of valuable products d. never limit the target market that a marketing manager can serve

"Intensive distribution" means selling through: a. only one channel of distribution b. all responsible and suitable retailers or wholesalers c. only one middleman in a particular geographic area d. only those middlemen who give the product special attention

Distribution agreements which limit sales by customer or territory: a. are always illegal b. may be legal if they are vertical agreements between producers and middlemen c. are always legal d. are always illegal if they are vertical agreements between producers and middlement

A marketing manager who wants to ship small quantities (1,500 pounds) of relatively high-value products short distances at an economical cost should use: a. inland waterways b. pipelines c. railroads d. trucks

A cheese processor having regular need for regional storage of a large quantity of cheese probably should use ________________ warehouses. a. public b. private c. general merchandise d. commodity

There are big shifts in demand from season to season for the lawn mowers produced by Grow Green Co. and its need for storage facilities also varies. Grow Green should think about using: a. piggyback service b. private warehouses c. distribution centers d. public warehousing facilities

Which of the following statements about a distribution center is TRUE? a. a distribution center is used to avoid unnecessary storing costs b. a distribution center is designed to buy low and sell high c. a distribution center is designed to eliminate all storage d. a distribution center is used only by shoe manufacturers