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Multiple Choice Quiz
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Which of the following is NOT a Place decision?
A)Types of middlemen needed.
B)Degree of market exposure desired.
C)Recruiting, selecting and managing the sales force.
D)Type of distribution channel to use.
E)Customer service level desired.
Which of the following statements about Place decisions is True?
A)Product classes are not related to Place objectives.
B)The product life cycle is not related to Place objectives.
C)Place decisions are short-term decisions that are easy to change.
D)Different market segments may require separate Place arrangements.
E)All of the above.
A producer using a direct-to-customer channel for its product:
A)may gain a greater degree of control over the entire marketing effort for the product.
B)will be unable to use an Internet-based direct channel.
C)will have less contact with final consumers than if it used an indirect channel.
D)will have more difficulty adjusting its marketing mix in response to changes in the market.
E)none of the above.
Which of the following statements about direct-to-customer channels is False?
A)Most consumer products are sold via direct-to-customer channels.
B)Many business products are sold via direct-to-customer channels.
C)Service firms often use direct-to-customer channels.
D)"Direct marketing" does not mean that a firm uses direct-to-customer channels.
E)Producers must sometimes use direct-to-customer channels because suitable middlemen are not available.
Ravi Singh is working his way through college as an independent distributor of the Rapier Knife Co. The Rapier product line includes kitchen knives, hunting knives, and other special-purpose cutlery. Ravi makes sales presentations to potential customers in their homes. If a customer wants to make a purchase, Ravi buys the knives from Rapier and sells them to the customer at a markup. For example, Rapier's most popular knife is a chef's knife that Ravi buys for $25 and resells to the consumer for $50. Ravi:
A)is part of a direct-to-customer channel.
B)is engaged in direct marketing.
C)is engaged in direct selling, but is part of an indirect channel.
D)all of the above.
E)none of the above.
Middlemen in indirect channels of distribution:
A)often perform functions that producers cannot perform efficiently by themselves.
B)do not provide additional convenience to consumers.
C)increase the need for producers to make large investments in distribution facilities and personnel.
D)make it necessary for producers to carry more inventory.
E)all of the above.
A manufacturer prefers to produce and ship in large quantities to take advantage of economies of scale. Final consumers often want to purchase in small quantities. This difference between the producer and consumer is a:
A)Discrepancy of assortment.
B)Discrepancy of quantity.
C)Regrouping activity.
D)Discrepancy adjustment.
E)Marketing discrepancy.
Costco is a warehouse store that sells groceries, household items, and business products. Purchase quantities tend to be larger than in traditional stores that serve final consumers. For example, soft drinks are only sold in 24-can cases, not in 12-packs or 6-packs. Coffee is sold in 3-pound cans instead of one-pound foil packs. Which of the regrouping activities typically performed by grocery stores is Costco partially shifting to the consumer?
E)Adjusting discrepancies.
Traditional channel systems:
A)usually feature a strong product-market commitment that is shared by all of the members of the channel.
B)have members that go to great lengths to cooperate with each other.
C)are not usually characterized by conflict among channel members.
D)are still typical, and very important, in some industries.
E)all of the above.
A manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts is a:
A)Channel obermeister.
B)Channel coordinator.
C)Channel captain.
D)Channel ombudsman.
E)Channel troubleshooter.
The vertical marketing system that typically has the greatest amount of cooperation among channel members is a:
A)traditional channel system.
B)administered channel system.
C)contractual channel system.
D)franchise channel system.
E)corporate channel system.
If Wal-Mart purchases a manufacturing plant to produce nothing but Wal-Mart's dealer brand of laundry detergent, Wal-Mart is engaging in:
B)vertical integration.
C)intertype competition.
D)a contractual channel system.
E)an administered channel system.
The vertical marketing system in which control is maintained via economic power and leadership is a(n).
A)administered channel system.
B)corporate channel system.
C)contractual channel system.
D)franchise channel system.
E)channel captaincy.
A convenience product would probably be sold using:
A)intensive distribution.
B)exclusive distribution.
C)selective distribution.
D)extensive distribution.
E)sole-source distribution.
Raymond Weil, a European manufacturer of premium watches, is trying to compete in the U. S. market with other fine watch brands. Its corporate Web site contains the following notice: "...RAYMOND WEIL products are sold by official dealers only. The RAYMOND WEIL International Guarantee is offered exclusively to consumers in possession of a watch purchased from an official dealer...." In the United States, Raymond Weil watches are not available in every jewellery or department store. For example, in large cities such as Boston, Washington, D.C., and San Francisco, there are only three retailers in each city that are official Raymond Weil dealers. Raymond Weil seems to be using:
A)intensive distribution.
B)selective distribution.
C)exclusive distribution.
D)extensive distribution.
E)limited distribution.
Rolls-Royce automobiles are super-premium-and super-expensive-cars that are hand-crafted in Great Britain. In the United States, Roll-Royce has dealerships in only 16 of the 50 states. No city has more than one dealership. Roll-Royce appears to be using:
A)intensive distribution.
B)selective distribution.
C)exclusive distribution.
D)extensive distribution.
E)limited distribution.
The owners of all the Chrysler auto dealerships in a large metropolitan area have an informal meeting during a golf outing. During the meeting, they agree to limit their orders of a new model of automobile that has received excellent reviews from the trade press for its styling and handling characteristics. Restricting orders will permit the dealers to sell these models at a price that will be at or above the manufacturer's suggested retail price for the vehicle. As a result, the dealers will make more profit on each vehicle sold due to the high demand for the new model. This type of agreement would be viewed by the courts as:
A)horizontal collusion that is illegal.
B)horizontal collusion that is legal.
C)vertical collusion that is legal.
D)vertical collusion that is illegal.
E)an exclusive distribution arrangement that is legal.
Multichannel distribution:
A)may involve using both direct and indirect channels simultaneously.
B)may offer producers a way to reach customers they would not be able to reach with a single channel.
C)is becoming more common.
D)may create channel conflict.
E)all of the above.
An office-furniture manufacturer sets up a system for retrieving used office furniture that its customers no longer want. The used furniture is sent back to the manufacturer at the manufacturer's expense, so that it can be reconditioned and resold at a substantial discount. The office furniture manufacturer is using a(n):
A)franchise channel.
B)exclusive channel.
C)selective channel.
D)reverse channel.
E)horizontal channel.
Logistics, or physical distribution (PD), provides:
A)Possession utility.
B)Time and place utility.
C)Form utility.
D)Task utility.
E)Possession and time utility.
The physical distribution _______________ is how rapidly and dependably a firm can deliver what consumers want.
C)customer service level
Which of the following statements about physical distribution is False?
A)Marketers should always try to maximize the customer service level provided regardless of cost.
B)Physical distribution activities are invisible to most consumers-unless something goes wrong.
C)There are tradeoffs between costs, the customer service level desired, and sales.
D)Information technology can help marketers improve service and cut costs.
E)In countries with inefficient distribution systems, consumers can face shortages of products they need.
In a firm that fully implements the physical distribution concept:
A)physical distribution activities are dealt with as separate, unrelated activities, not as coordinated parts of a single system.
B)the firm determines the aspects of service that are most important to customers before designing the physical distribution system.
C)increasing the level of service provided is not related to customer perceptions of value.
D)physical distribution is never a source of competitive advantage.
E)none of the above.
Regarding a "chain of supply":
A)all of the firms in the chain of supply should work together to meet the needs of the customer at the end of the chain.
B)logistics functions are not shifted or shared among the firms in the chain of supply.
C)all firms in the supply chain are able to do a better job competing against competitors who are in other chains of supply.
D)all of the above.
E)A and C only.
Electronic data interchange (EDI):
A)puts information in a standardized format that can be shared between different computer systems.
B)improves information flow between buyers and suppliers.
C)allows customers to transmit orders directly to a supplier's computer.
D)replaces many of the paper documents previously used for purchase orders and shipping reports.
E)all of the above.
Which of the following products would have the highest transporting costs as a percentage of the selling price?
A)electronic equipment.
B)chemicals and plastics.
D)sand and gravel.
E)manufactured food.
Which of the following statements about transporting by rail is True?
A)Rail transportation is the slowest mode of transportation.
B)Rail transportation is the least expensive mode of transportation.
C)Rail transportation is good for long-distance transportation of heavy, bulky items.
D)Railroads are most efficient at handling less-than-carload (LCL) shipments.
E)All of the above.
Regarding transporting by truck:
A)trucks are best for moving large quantities of goods long distances.
B)trucks are a very low cost mode of transportation.
C)trucks are not reliable in meeting delivery schedules.
D)trucks tend to provide fast delivery.
E)all of the above.
Transporting by water:
A)is the fastest transporting mode.
B)is the least expensive transporting mode for heavy freight.
C)is only important for international transportation.
D)Is especially useful for lightweight goods.
E)all of the above.
Transporting by air:
A)works well for heavy, bulky items.
B)is slower than transporting by truck.
C)may reduce the total cost of physical distribution.
D)has had no effect on international trade.
E)none of the above.
Air express companies place many small packages into specially designed cylinders that conform to the interior dimensions of a cargo airplane. This practice protects the smaller packages and helps to reduce distribution costs. The air express companies are practicing:
C)freight forwarding.
E)none of the above.
A train carries truck trailers long distances. The trailers are then offloaded, attached to truck tractors, and the tractor-trailer combinations are driven to their final destination. This practice is known as:
B)piggyback service.
C)freight forwarding.
D)long hauling.
E)none of the above.
Storing inventory:
A)makes it more difficult for producers to achieve economies of scale in production.
B)allows producers and middlemen to keep stocks at convenient locations.
C)does not involve any costs.
D)by one channel member does not affect the behaviour of other channel members.
E)Both A and C.
Regarding the storing function:
A)public warehouses entail significant fixed investment for the companies wishing to use them.
B)private warehouses are most useful when a company does not have a regular need for space.
C)public warehouses provide as wide a range of services as private warehouses.
D)all of the above.
E)none of the above.
Distribution centres:
A)are designed to facilitate the flow of products through the channel.
B)are the same as public warehouses.
C)are not places where regrouping activities-such as bulk-breaking-are performed.
D)increase storing costs.
E)all of the above.

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