Chapter 14-MKT-101
What are the three primary tasks of order processing?
Order handling, order entry, order delivery
What is typically the primary determinant in deciding how materials will be handled?
Product characteristics
The notion of logistics is
the activities used to move products from producers to end users.
Possession utility is best described as
the customer having access to the product to use now or store and use later.
Multichannel distribution is characterized as
the use of a variety of marketing channels to ensure maximum distribution.
Physical distribution activities may be performed by a producer, wholesaler, retailer or
they may be outsourced.
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 _______.
exclusive distribution; intensive distribution
Channel cooperation can do all of the following except
increase cycle time.
Which of the following is likely to employ a longer marketing channel with more intermediaries?
Canned peas
Which of the following is most likely to be a product stocked solely by an industrial distributor?
Industrial glues and adhesives
Which of the following is least likely to be a factor affecting the selection of marketing channels?
Product packaging
What two modes of transportation are used when containers are shipped by piggyback?
Railroads and trucks
For which of the following products would exclusive distribution be most appropriate?
Rolls Royce automobile
An inventory stockout results in
an increase in lost sales.
To achieve the desired intensity of market coverage, distribution must correspond to
behavior patterns of buyers.
A public warehouse is a
business that leases storage space and related facilities for logistics to other firms.
A single leader who controls and organizes a marketing channel is called a
channel captain.
To prevent channel conflict, producers or other channel members may do all of the following except
combine reseller markets.
Order handling involves all of the following activities except that the
customer places a purchase order.
The driving force behind marketing channel decisions should be
customer satisfaction.
The main objective of logistics should be to
decrease costs while increasing customer satisfaction.
Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called
multichannel distribution.
Eliminating a wholesaler from a marketing channel will
not eliminate the functions performed by that wholesaler.
Marketing channels create four types of utility for consumers including
place, time, possession, and form.
What is the reorder point if the usage rate is 10 units per day, the order lead time is five days, and the safety stock is 30?
80