Question 1

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

Accepted Answer

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

Question 2

Anya,sales manager for Pacific Lumber,tells Ricardo,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 3

Piggyback,fishyback,and birdyback are terms usually associated with gaining efficiency in shipping through

Accepted Answer

A) transit time. 
B) warehousing. 
C) packaging. 
D) containerization. 
E) lot sizes.

Question 4

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 5

Select the greatest advantage of horizontal channel integration.

Accepted Answer

A) The flexibility of the channel is decreased. 
B) The markets are more heterogeneous. 
C) The expanded number of units is coordinated. 
D) Efficiencies in advertising,marketing research,and purchasing are increased. 
E) Planning and research are increased to cope with increased competition.

Question 6

WTA is a manufacturer of very large blades used in energy-reducing wind turbines.What is most likely the most expensive physical distribution function associated with the WTA product?

Accepted Answer

A) Warehousing of the product. 
B) Order processing for each blade. 
C) Inventory management of the product. 
D) Transportation of the product. 
E) Materials handling of the product.

Question 7

As her Internet quilt and bed linen business grew,Danielle could no longer perform all the distribution activities,so she hired a shipper and an information technology firm to assist with these functions.Danielle is using ____ for physical distribution for her business.

Accepted Answer

A) producers 
B) wholesalers 
C) retailers 
D) selling agents 
E) outsourcing

Question 8

Madison is responsible for the freight transportation of products sold by Richland Tech,a producer of cooking oils sold to large institutions.Since Madison needs to schedule freight transportation with the mode that provides the most flexible schedules and routes,which of the following should she use?

Accepted Answer

A) Trucks 
B) Waterways 
C) Warehousing 
D) Pipelines 
E) Railroads

Question 9

Yankee Candle,a candle and gift marketing organization has a(n)____ vertical marketing system arrangement with its franchised retail store operations.

Accepted Answer

A) corporate 
B) administered 
C) negotiated 
D) contractual 
E) horizontal

Question 10

When Coach,the producer of fine leather handbags and accessories,decided to open its own specialty shops to sell its merchandise,and its own retail outlet stores,the firm was engaging in

Accepted Answer

A) multiple channel repetition. 
B) vertical channel integration. 
C) dual channel integration. 
D) horizontal channel integration. 
E) channel expansion.

Question 11

At the annual managers' planning conference,Jackie Conrad asks the other managers to consider her proposal to increase the quantity of inventory to a five-week supply in order to increase the percentage of completely filled customer orders from 85 percent to 90 percent.She states that she is willing to trade off the ____ incurred for the positive effect of better customer service.

Accepted Answer

A) lower response time 
B) higher warehousing costs 
C) higher transportation costs 
D) higher order processing costs 
E) higher performance levels

Question 12

When a single channel member manages an integrated marketing channel to achieve low-cost,efficient distribution for satisfying target markets,____ exists.

Accepted Answer

A) a vertical marketing system 
B) horizontal channel integration 
C) channel power 
D) channel cooperation 
E) extensive distribution

Question 13

Revlon,a maker of cosmetics and skin-care products,is effectively involved in the management of its supply chain.It coordinates activities with both its suppliers and its distributors in order to produce and deliver products that its customers demand.Which of the following statements is most likely to be true about the impact of Revlon's supply-chain management?

Accepted Answer

A) Revlon demonstrates a product firm orientation which increases its competitiveness. 
B) Revlon demonstrates a market firm orientation which increases its competitiveness. 
C) Revlon demonstrates a sales firm orientation which increases its competitiveness. 
D) Revlon's supply-chain management overlaps with all of the firm's marketing functions but not its financial functions. 
E) Revlon's primary objective is to maximize efficiency in its supply-chain.

Question 14

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

Accepted Answer

The answer of How do marketing channel decisions influence the...

Question 15

Eric is concerned about not having enough air conditioning units in inventory during June,July,and August so he keeps extra inventory to guard against stockouts during this critical period.Eric is keeping

Accepted Answer

A) short order lead times. 
B) just-in-time inventory. 
C) a controlled usage rate. 
D) safety stock. 
E) excessive inventory.

Question 16

Nike maintains a good deal of control over how its products are promoted,displayed,and sold.Because of this control,Nike would be appropriately described as the channel

Accepted Answer

A) intermediary. 
B) captain. 
C) allocator. 
D) terminator. 
E) price leader.

Question 17

For which of the following products would exclusive distribution be most appropriate?

Accepted Answer

A) Gasoline 
B) Rolls Royce automobile 
C) Ray-Ban sunglasses 
D) Louis Vitton luggage 
E) Harley Davidson motorcycle

Question 18

What are the three types of utility that marketing channels create,and what do they involve?

Accepted Answer

The answer of What are the three types of utility...

Question 19

Discuss the importance of order processing in the physical distribution system.

Accepted Answer

The answer of Discuss the importance of order processing in...

Question 20

Because the iPhone is such a popular product and the company is so powerful,Apple,Inc.is in a position to exert considerable control over channel structures and the way the iPhone is marketed.This is an illustration of channel ____ in the distribution channel.

Accepted Answer

A) conflict 
B) leadership 
C) dominance 
D) cooperation 
E) negotiation

Exam 15: Marketing Channels and Supply-Chain Management