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____ is the combining and coordinating of two or more modes of transportation to take advantage of benefits offered by each of the different types of carriers.


A) Intermodal transportation
B) Physical distribution
C) Containerized movement
D) Efficient transportation
E) Freight forwarding

F) B) and D)
G) C) and D)

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A

What two modes of transportation are used when containers are shipped by piggyback?


A) Railroads and airways
B) Trucks and airways
C) Pipelines and trucks
D) Waterways and railroads
E) Railroads and trucks

F) None of the above
G) C) and E)

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When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a


A) retailer.
B) wholesaler.
C) broker.
D) functional middleman.
E) producer.

F) B) and C)
G) D) and E)

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What is the primary determinant in deciding how materials will be handled?


A) Unit loading
B) Containerization
C) Customer preference
D) Cost reduction
E) Product characteristics

F) A) and B)
G) A) and D)

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Explain how electronic data interchange (EDI) and just-in-time (JIT) inventory management might be used in combination to improve physical distribution effectiveness and efficiency.

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Many producers selling on the Internet are using


A) several intermediaries.
B) complex marketing channels.
C) Internet wholesalers, retailers, and agents.
D) supply chain channels.
E) direct-marketing channels.

F) A) and D)
G) A) and E)

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E

The contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channel is known as


A) illegal.
B) logistics.
C) warehousing.
D) wholesaling.
E) outsourcing.

F) C) and E)
G) A) and B)

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Scenario 15.2 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. -Refer to Scenario 15.2. 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

F) B) and E)
G) B) and C)

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Overall channel goals and individual channel member goals cannot be achieved together without


A) conflict.
B) captains.
C) leadership.
D) cooperation.
E) tying agreements.

F) A) and B)
G) A) and C)

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When channel members are linked by legal agreements that specify each member's rights and responsibilities, ____ exists.


A) horizontal channel integration
B) an administered VMS
C) a corporate VMS
D) a channel captain
E) a contractual VMS

F) All of the above
G) B) and D)

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Discuss channel cooperation and conflict. How might each one affect distribution channel functions?

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The driving force behind marketing channel decisions should be


A) convenience.
B) cost reduction.
C) environmental concerns.
D) customer satisfaction.
E) quality.

F) B) and C)
G) A) and C)

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Sales are most likely to have a direct relationship to product availability for products that use ____ distribution.


A) selective
B) dual
C) intensive
D) extensive
E) exclusive

F) B) and C)
G) All of the above

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When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most likely used ____ distribution.


A) horizontal
B) intensive
C) selective
D) agent
E) exclusive

F) B) and E)
G) None of the above

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B

The marketing channel of producer to retailer to consumer is most likely to be used by producers of which of the following products?


A) Chewing gum
B) Tobacco
C) Automobiles
D) Hardware
E) Saltine crackers

F) B) and E)
G) D) and E)

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If Ralston Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be


A) demonstrating sound channel leadership.
B) insisting on exclusive exposure.
C) exercising channel power.
D) minimizing channel conflict.
E) creating a coordinate system.

F) B) and C)
G) A) and E)

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Which of the following physical distribution functions involves design and operation of facilities for storing goods?


A) Order processing
B) Materials handling
C) Transportation
D) Warehousing
E) Inventory management

F) A) and C)
G) C) and D)

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Bennetton, a leading manufacturer of knitwear in Italy, expanded its operations to include retail outlets in the United States and South America. This type of integration is called


A) horizontal.
B) vertical.
C) multilevel.
D) retail.
E) merchandising.

F) B) and D)
G) A) and E)

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An important goal of physical distribution is reducing the time it takes to complete


A) inventory management.
B) outsourcing evaluation.
C) electronic data interchange.
D) order processing.
E) cycle time.

F) A) and B)
G) B) and D)

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How do marketing channel decisions influence the rest of the marketing mix?

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