Question 1

Scenario 13.2
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 two new service product lines-paper 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 13.2. Currently, Star is using the ____ approach to distributing its janitorial supplies to its large customers.

Accepted Answer

A)  intensive
B)  just-in-time
C)  segmented
D)  outsourcing
E)  exclusive

Question 2

Consumers receive the benefits of place utility when

Accepted Answer

A)  they have to travel excessively to obtain products they want.
B)  retailers remain open 24 hours a day.
C)  they can stock up on products they need but not use them right away.
D)  they make purchases with credit and debit cards.
E)  products are available in locations where consumers want to buy them.

Question 3

Companies that sell products with high profit margins are more likely to use _______________. Companies selling products whose sales are directly related to product availability will most likely use ______________.

Accepted Answer

A)  exclusive distribution; intensive distribution
B)  exclusive distributive; selective distribution
C)  selective distribution; intensive distribution
D)  selective distribution; exclusive distribution
E)  intensive distribution; exclusive distribution

Question 4

Inventory decisions seldom have a strong impact on physical distribution costs and on the level of customer service provided.

Accepted Answer

A) True 
 B)False

Question 5

A public warehouse is a

Accepted Answer

A)  business that leases storage space and related facilities for distribution to other firms.
B)  large, centralized warehouse that focuses on moving rather than storing goods.
C)  company that provides a complete array of logistical services for businesses.
D)  company-operated facility for storing and shipping products.
E)  warehouse used to store the personal property of many different customers.

Question 6

Without wholesalers and other intermediaries,

Accepted Answer

A)  most products would be much less expensive because fewer companies would be handling the product.
B)  products would be cheaper because the functions of intermediaries would be eliminated.
C)  products would likely be more expensive due to the use of less efficient channel members.
D)  products would never be able to make it to the ultimate consumer at any price without passing through intermediaries.
E)  many products would be more expensive because retailers would expect more profit.

Question 7

Only producers can be channel captains.

Accepted Answer

A) True 
 B)False

Question 8

When higher-priced or technically complex business products are involved, business customers prefer to deal directly with producers rather than through intermediaries.

Accepted Answer

A) True 
 B)False

Question 9

Full-line forcing requires that channel members purchase the supplier's entire line to obtain any of the products.

Accepted Answer

A) True 
 B)False  True

Question 10

General Steel wants to install technology into its logistics management system. This technology will enable General Steel to gain efficiency and accuracy in inventory tracking, stocking, and electronic notifications. General Steel is most likely using

Accepted Answer

A)  electronic data interchange.
B)  radio frequency identification.
C)  intermodal transportation.
D)  freight forwarders.
E)  lean distribution.

Question 11

Organizational buyers are especially partial to direct marketing channels when

Accepted Answer

A)  they buy cheap materials in large quantities.
B)  they try a new product for the first time.
C)  they are filling an order for a very important customer.
D)  a modified rebuy type of decision is involved.
E)  expensive and/or complex equipment is involved. E

Question 12

Fred Stevens is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ____ to maintain contact with the firms using its products.

Accepted Answer

A)  wholesalers
B)  brokers
C)  agents
D)  merchants
E)  retailers C

Question 13

The courts have determined that producers have the right under most circumstances to choose or reject the channel members with which they will do business.

Accepted Answer

A) True 
 B)False

Question 14

What are the three primary tasks of order processing?

Accepted Answer

A)  Order receipt, order delivery, order follow-up
B)  Order handling, inventory management, order delivery
C)  Materials handling, warehousing, order delivery
D)  Order handling, order entry, order delivery
E)  Order receipt, order checking, order delivery

Question 15

Bonded storage means that goods will not be released until U.S. customs duties or federal or state taxes or other fees are paid.

Accepted Answer

A) True 
 B)False

Question 16

Marketing intermediaries are marketing institutions, such as retailers and wholesalers, which perform marketing functions necessary to direct products to customers.

Accepted Answer

A) True 
 B)False

Question 17

Materials handling is important in efficient warehouse operations but has little to do with customers' ultimate satisfaction with a product.

Accepted Answer

A) True 
 B)False

Question 18

Third-party logistics firms have special expertise in core physical distribution activities and can often perform these activities more efficiently.

Accepted Answer

A) True 
 B)False

Question 19

Miller, sales manager for Pacific Lumber, tells Fred, the firm's inventory manager, that the firm's failure to have adequate supplies of pressure-treated lumber on hand has cost the firm $175,000 in lost sales. This figure represents which of the following inventory management costs?

Accepted Answer

A)  Carrying
B)  Replenishment
C)  Stockout
D)  Safety stock
E)  Reorder

Question 20

To prevent channel conflict, producers or other channel members may do all of the following except

Accepted Answer

A)  provide competing resellers with different brands.
B)  define policies for direct sales to avoid potential conflict over large accounts.
C)  combine reseller markets.
D)  negotiate territorial issues among regional distributors.
E)  provide recognition to certain resellers for their importance in distributing to others.

Exam 13: Marketing Channels and Supply-Chain Management

Correct Answer
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Consumers receive the benefits of place utility when

Correct Answer
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Companies that sell products with high profit margins are more likely to use _. Companies selling products whose sales are directly related to product availability will most likely use .

Correct Answer
verified

Inventory decisions seldom have a strong impact on physical distribution costs and on the level of customer service provided.

Correct Answer
verified

A public warehouse is a

Correct Answer
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Without wholesalers and other intermediaries,

Correct Answer
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Only producers can be channel captains.

Correct Answer
verified

When higher-priced or technically complex business products are involved, business customers prefer to deal directly with producers rather than through intermediaries.

Correct Answer
verified

Full-line forcing requires that channel members purchase the supplier's entire line to obtain any of the products.

Correct Answer
verified
True

General Steel wants to install technology into its logistics management system. This technology will enable General Steel to gain efficiency and accuracy in inventory tracking, stocking, and electronic notifications. General Steel is most likely using

Correct Answer
verified

Organizational buyers are especially partial to direct marketing channels when

Correct Answer
verified
E

Fred Stevens is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ____ to maintain contact with the firms using its products.

Correct Answer
verified
C

The courts have determined that producers have the right under most circumstances to choose or reject the channel members with which they will do business.

Correct Answer
verified

What are the three primary tasks of order processing?

Correct Answer
verified

Bonded storage means that goods will not be released until U.S. customs duties or federal or state taxes or other fees are paid.

Correct Answer
verified

Marketing intermediaries are marketing institutions, such as retailers and wholesalers, which perform marketing functions necessary to direct products to customers.

Correct Answer
verified

Materials handling is important in efficient warehouse operations but has little to do with customers' ultimate satisfaction with a product.

Correct Answer
verified

Third-party logistics firms have special expertise in core physical distribution activities and can often perform these activities more efficiently.

Correct Answer
verified

Miller, sales manager for Pacific Lumber, tells Fred, the firm's inventory manager, that the firm's failure to have adequate supplies of pressure-treated lumber on hand has cost the firm $175,000 in lost sales. This figure represents which of the following inventory management costs?

Correct Answer
verified

To prevent channel conflict, producers or other channel members may do all of the following except

Correct Answer
verified

Exam 13: Marketing Channels and Supply-Chain Management

Correct AnswerverifiedShow Answer

Consumers receive the benefits of place utility when

Correct AnswerverifiedShow Answer

Companies that sell products with high profit margins are more likely to use _______________. Companies selling products whose sales are directly related to product availability will most likely use ______________.

Correct AnswerverifiedShow Answer

Inventory decisions seldom have a strong impact on physical distribution costs and on the level of customer service provided.

Correct AnswerverifiedShow Answer

A public warehouse is a

Correct AnswerverifiedShow Answer

Without wholesalers and other intermediaries,

Correct AnswerverifiedShow Answer

Only producers can be channel captains.

Correct AnswerverifiedShow Answer

When higher-priced or technically complex business products are involved, business customers prefer to deal directly with producers rather than through intermediaries.

Correct AnswerverifiedShow Answer

Full-line forcing requires that channel members purchase the supplier's entire line to obtain any of the products.

Correct AnswerverifiedTrue

General Steel wants to install technology into its logistics management system. This technology will enable General Steel to gain efficiency and accuracy in inventory tracking, stocking, and electronic notifications. General Steel is most likely using

Correct AnswerverifiedShow Answer

Organizational buyers are especially partial to direct marketing channels when

Correct AnswerverifiedE

Fred Stevens is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ____ to maintain contact with the firms using its products.

Correct AnswerverifiedC

The courts have determined that producers have the right under most circumstances to choose or reject the channel members with which they will do business.

Correct AnswerverifiedShow Answer

What are the three primary tasks of order processing?

Correct AnswerverifiedShow Answer

Bonded storage means that goods will not be released until U.S. customs duties or federal or state taxes or other fees are paid.

Correct AnswerverifiedShow Answer

Marketing intermediaries are marketing institutions, such as retailers and wholesalers, which perform marketing functions necessary to direct products to customers.

Correct AnswerverifiedShow Answer

Materials handling is important in efficient warehouse operations but has little to do with customers' ultimate satisfaction with a product.

Correct AnswerverifiedShow Answer

Third-party logistics firms have special expertise in core physical distribution activities and can often perform these activities more efficiently.

Correct AnswerverifiedShow Answer

Miller, sales manager for Pacific Lumber, tells Fred, the firm's inventory manager, that the firm's failure to have adequate supplies of pressure-treated lumber on hand has cost the firm $175,000 in lost sales. This figure represents which of the following inventory management costs?

Correct AnswerverifiedShow Answer

To prevent channel conflict, producers or other channel members may do all of the following except

Correct AnswerverifiedShow Answer

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Companies that sell products with high profit margins are more likely to use _. Companies selling products whose sales are directly related to product availability will most likely use .

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True

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E

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C

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