Question 1

What is technology that uses a tiny chip with identification information that can be read by a scanner from a distance called?

Accepted Answer

A)  Radio frequency identification 
B)  Universal Product Code 
C)  enterprise resource technology 
D)  logistics technology

Question 2

What are goods called when they are manufactured abroad under license from a Canadian manufacturer, and then sold in the Canadian market in competition with Canadian-produced goods from the Canadian manufacturer?

Accepted Answer

A)  black market goods 
B)  inferior goods 
C)  grey goods 
D)  horizontal goods

Question 3

Identify the elements of the physical distribution system and the questions each must address.

Accepted Answer

The answer of Identify the elements of the physical distribution...

Question 4

Water carrier costs have continued to decline, making this mode of transportation the cheapest per tonne-kilometre of all the transportation means available.

Accepted Answer

A) True 
 B)False

Question 5

What is the system that involves unitizing and containerization referred to as?

Accepted Answer

A)  a materials handling system 
B)  a product efficiency system 
C)  a Just-In-Time System (JIT) 
D)  a Package Tracking System (PTS)

Question 6

What is the advantage of intermodal transportation? Give examples of intermodal hauling.

Accepted Answer

The answer of What is the advantage of intermodal transportation?...

Question 7

A telemarketer calling to sell season subscriptions for a local theatre company is a marketing intermediary between a not-for-profit organization and the consumer.

Accepted Answer

A) True 
 B)False

Question 8

When products move through more than one marketing channel to reach different target markets, it is called dual distribution.

Accepted Answer

A) True 
 B)False

Question 9

What must a wholesaler do to grow profitably in a competitive environment?

Accepted Answer

A)  cut costs in every possible area 
B)  make as many tying agreements as possible 
C)  move into exclusive distribution of a majority of product lines that are to be carried 
D)  provide better service at a lower cost than manufacturers or retailers can do themselves

Question 10

Suboptimization results when managers of individual physical distribution functions seek to meet their overall customer service goal by meshing all physical distribution elements to achieve lowest total cost.

Accepted Answer

A) True 
 B)False

Question 11

What occurs when a selective distribution strategy is chosen by a firm?

Accepted Answer

A)  The firm seeks to distribute its products through all available channels in its trade areas. 
B)  A single wholesaler or retailer in an area is granted exclusive rights to sell its line. 
C)  Only a limited number of retailers in a market area can handle its line. 
D)  The number of product outlets available to the consumer is unlimited.

Question 12

What type of distribution is the process of using every channel available to bring a product to market?

Accepted Answer

A)  exclusive 
B)  specialized 
C)  selective 
D)  intensive

Question 13

The supply chain is called the value chain because it is the sequence of activities that contributes to the creation and delivery of goods and services.

Accepted Answer

A) True 
 B)False

Question 14

What is a major difference between an administered vertical marketing system and a contractual system?

Accepted Answer

A)  Administered marketing systems are larger than contractual systems. 
B)  Administered systems depend on channel captains, whereas contractual systems depend on formal agreements. 
C)  Administered systems usually have common names and similar inventories, whereas contractual systems may include non-competing members. 
D)  Contractual systems depend on effective working relationships built up over the years, whereas administered systems depend upon finite control.

Question 15

The profit an intermediary earns depends on the product line.Typically, food wholesalers earn 1 percent, while durable goods wholesalers can earn 5 percent.

Accepted Answer

A) True 
 B)False

Question 16

Freight carriers are classified as common, contract, and institutional carriers.

Accepted Answer

A) True 
 B)False

Question 17

In the context of marketing channels, who do business purchasers usually prefer to buy from?

Accepted Answer

A)  manufacturers 
B)  retailers 
C)  wholesalers 
D)  agents

Question 18

Sherwin-Williams Paint Company sells the paint it manufactures through its company-owned retail paint stores.What type of marketing system is the company's marketing channel?

Accepted Answer

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

Question 19

What type of channel conflict is between two or more wholesalers or two or more retailers?

Accepted Answer

A)  competitive 
B)  vertical 
C)  horizontal 
D)  cross-channel

Question 20

A manufacturer assigns national sales teams to sell to Walmart, Loblaws, Zellers, and other large retailers.Smaller retailers and wholesalers are sold through food brokers.In this situation, the manufacturer is utilizing dual distribution.

Accepted Answer

A) True 
 B)False

Exam 11: Marketing Channels and Supply Chain Management

What is technology that uses a tiny chip with identification information that can be read by a scanner from a distance called?

What are goods called when they are manufactured abroad under license from a Canadian manufacturer, and then sold in the Canadian market in competition with Canadian-produced goods from the Canadian manufacturer?

Identify the elements of the physical distribution system and the questions each must address.

Water carrier costs have continued to decline, making this mode of transportation the cheapest per tonne-kilometre of all the transportation means available.

What is the system that involves unitizing and containerization referred to as?

What is the advantage of intermodal transportation? Give examples of intermodal hauling.

A telemarketer calling to sell season subscriptions for a local theatre company is a marketing intermediary between a not-for-profit organization and the consumer.

When products move through more than one marketing channel to reach different target markets, it is called dual distribution.

What must a wholesaler do to grow profitably in a competitive environment?

Suboptimization results when managers of individual physical distribution functions seek to meet their overall customer service goal by meshing all physical distribution elements to achieve lowest total cost.

What occurs when a selective distribution strategy is chosen by a firm?

What type of distribution is the process of using every channel available to bring a product to market?

The supply chain is called the value chain because it is the sequence of activities that contributes to the creation and delivery of goods and services.

What is a major difference between an administered vertical marketing system and a contractual system?

The profit an intermediary earns depends on the product line.Typically, food wholesalers earn 1 percent, while durable goods wholesalers can earn 5 percent.

Freight carriers are classified as common, contract, and institutional carriers.

In the context of marketing channels, who do business purchasers usually prefer to buy from?

Sherwin-Williams Paint Company sells the paint it manufactures through its company-owned retail paint stores.What type of marketing system is the company's marketing channel?

What type of channel conflict is between two or more wholesalers or two or more retailers?

A manufacturer assigns national sales teams to sell to Walmart, Loblaws, Zellers, and other large retailers.Smaller retailers and wholesalers are sold through food brokers.In this situation, the manufacturer is utilizing dual distribution.