Question 1

Tying agreements occur when a

Accepted Answer

A) producer distributes the same product through two or more different channels. 
B) manufacturer forbids an intermediary to carry products of competing manufacturers. 
C) supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well. 
D) producer refuses to deal to channel members that seem unethical or illegitimate. 
E) manufacturer prohibits intermediaries from selling its products outside designated sales territories.

Question 2

Distribution decisions have little influence on the rest of the marketing mix.

Accepted Answer

A) True 
 B)False

Question 3

Assuming everything else equal, the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be

Accepted Answer

A) waterways. 
B) intermodal transportation. 
C) tanker trucks. 
D) railroads. 
E) pipelines.

Question 4

When Zappos, Inc., an online marketer of shoes, accessories, and clothing, contracts out the physical distribution task to third parties such as UPS, this arrangement is called ____. This is due to the fact that UPS does not have managerial authority within the Zappos marketing channel.

Accepted Answer

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

Question 5

Order handling involves all of the following activities except that the

Accepted Answer

A) credit department approves the purchase. 
B) order is transmitted to the warehouse. 
C) availability of product is verified. 
D) warehouse is instructed to fill the order. 
E) customer places a purchase order.

Question 6

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 7

Magnetic Springs wants to ship its bottled water with the most flexible schedules and routes of all transportation modes. Magnetic Springs should use ____ as its transportation mode.

Accepted Answer

A) railroads 
B) waterways 
C) pipelines 
D) trucks 
E) airways

Question 8

The Diamond Salt Company needs to transport 20 tons of salt from Baton Rouge, Louisiana, to Cincinnati, Ohio. Which of the following methods would be the cheapest for transporting this cargo?

Accepted Answer

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

Question 9

Safety stock helps protect an organization against stockouts.

Accepted Answer

A) True 
 B)False

Question 10

Only producers can be channel captains.

Accepted Answer

A) True 
 B)False

Question 11

Select Comfort, a producer of adjustable air mattresses, sells most of its products through direct mail sales and on its website. This channel would be classified as

Accepted Answer

A) direct distribution. 
B) producer, retailer, consumer. 
C) telemarketing. 
D) direct-marketing. 
E) indirect marketing.

Question 12

Nathan is trying to decide which shipping company to use to transport his custom-made furniture to customers. Nathan is facing a decision about

Accepted Answer

A) order entry. 
B) order completion. 
C) just-in-time. 
D) order handling. 
E) order delivery.

Question 13

Under what circumstances is selective distribution a desirable level of market coverage?

Accepted Answer

The answer of Under what circumstances is selective distribution a...

Question 14

The end result of eliminating marketing intermediaries is a cost benefit.

Accepted Answer

A) True 
 B)False

Question 15

Like manufacturers' agents, industrial distributors do not take title to products or carry inventories.

Accepted Answer

A) True 
 B)False

Question 16

Logistics Plus is an organization that consolidates shipments from several industrial firms into more efficient lot sizes so that they can be more efficiently transported. What type of transportation company is Logistics Plus?

Accepted Answer

A) A freight forwarder 
B) A forwarding agency 
C) A transport consolidator 
D) A specialty transportation company 
E) An Intermodal shipping company

Question 17

Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using

Accepted Answer

A) dual distribution. 
B) industrial distribution. 
C) strategic channel alliance. 
D) supply chain management. 
E) an unethical marketing channel.

Question 18

Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following channels?

Accepted Answer

A) Producer, industrial distributors, retailers, consumers 
B) Producer, consumers 
C) Producer, wholesalers, retailers, consumers 
D) Producer, retailers, consumers 
E) Producer, agents, wholesalers, retailers, consumers

Question 19

The reorder point is computed by multiplying the service standard by the order lead time.

Accepted Answer

A) True 
 B)False

Question 20

What is a primary difference between an industrial distributor and a manufacturers' agent?

Accepted Answer

A) A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does. 
B) A manufacturers' agent is employed by the manufacturers while an industrial distributor is independent. 
C) An industrial distributor is employed by the manufacturers while a manufacturers' agent is independent. 
D) A manufacturers' agent rarely adds any value to the marketing channel while an industrial distributor reduces costs significantly. 
E) An industrial distributor does not form relationships with customers for repeat business whereas a key asset of a manufacturers' agent is his knowledge of his customers.

Exam 14: Marketing Channels and Supply-Chain Management

Tying agreements occur when a

Distribution decisions have little influence on the rest of the marketing mix.

Assuming everything else equal, the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be

When Zappos, Inc., an online marketer of shoes, accessories, and clothing, contracts out the physical distribution task to third parties such as UPS, this arrangement is called ____. This is due to the fact that UPS does not have managerial authority within the Zappos marketing channel.

Order handling involves all of the following activities except that the

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

Magnetic Springs wants to ship its bottled water with the most flexible schedules and routes of all transportation modes. Magnetic Springs should use ____ as its transportation mode.

The Diamond Salt Company needs to transport 20 tons of salt from Baton Rouge, Louisiana, to Cincinnati, Ohio. Which of the following methods would be the cheapest for transporting this cargo?

Safety stock helps protect an organization against stockouts.

Only producers can be channel captains.

Select Comfort, a producer of adjustable air mattresses, sells most of its products through direct mail sales and on its website. This channel would be classified as

Nathan is trying to decide which shipping company to use to transport his custom-made furniture to customers. Nathan is facing a decision about

Under what circumstances is selective distribution a desirable level of market coverage?

The end result of eliminating marketing intermediaries is a cost benefit.

Like manufacturers' agents, industrial distributors do not take title to products or carry inventories.

Logistics Plus is an organization that consolidates shipments from several industrial firms into more efficient lot sizes so that they can be more efficiently transported. What type of transportation company is Logistics Plus?

Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using

Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following channels?

The reorder point is computed by multiplying the service standard by the order lead time.

What is a primary difference between an industrial distributor and a manufacturers' agent?