MKTG 431 week 8

Kendra runs a wholesale distribution center for candy. Each week she receives a truckload of candy from her supplier and unpacks it so that her customers only have to buy a case at a time. Kendra is adding value by ___________? Select one: a. Storing b. Breaking bulk c. Transporting d. Grading. e. Creating assortment

b. Breaking bulk

Ideally each of the channel flows is performed by a separate business that specializes in that function. Select one: True False

False

Which of the following is NOT a cost typically associated with logistics? Select one: a. Advertising b. Inventory c. Transportation d. Stockout. e. Order processing

a. Advertising

Materials handling deals with loading and unloading products and moving them short distances from place to place. One of the biggest issues in material handling is? Select one: a. All of these are issues associated with materials handling b. Keeping track of where things are c. Theft d. Breakage e. Damage control

a. All of these are issues associated with materials handling

Which of the following is NOT something you would like an intermediary to provide for your customers? Select one: a. Alternate products b. Communication c. Convenience d. Variety e. Research

a. Alternate products

A marketing channel always includes? Select one: a. An end user b. A wholesaler c. An intermediary d. All of the above e. A raw materials supplier

a. An end user

_____________ occurs when there is a clash of goals and methods between distribution channel members. Select one: a. Channel conflict b. Cognitive dissonance c. Disintermediation d. Whining. e. Administered systems

a. Channel conflict

Which of the following is NOT an example of an intermediary? Select one: a. Consumer b. Agent c. Distributor d. Retailer e. Broker

a. Consumer

The goal of a marketing channel is to? Select one: a. Create the most efficient way to move products from producer to consumer b. Create a network of suppliers, intermediaries and customers to support long-term sales of the product. c. Identify groups of people with needs that are similar to each other and different from everyone else d. Communicate with groups of people who are similar to each other and different from everyone else. e. Create economies of scale for the producer.

a. Create the most efficient way to move products from producer to consumer

One of the ways intermediaries create value is to? Select one: a. Decrease the number of transactions needed to create an efficient market. b. Increase the amount of money customers are willing to pay for a good or service. c. These are all ways that intermediaries create value. d. Invest in trucks that are much more expensive than other companies in the channel can afford. e. Provide a buffer between consumer and producer so individuals don't feel like they are dealing with a large corporation.

a. Decrease the number of transactions needed to create an efficient market.

BruceCo sells medical devices used in surgical operations. It requires a great deal of training to be able to use these medical devices properly and there is a potential liability to BruceCo if they are used improperly. Because each product has to be numbered and monitored for quality and sanitation, the products must be handled carefully and are expensive. Which of these market coverage strategies would be best for BruceCo? Select one: a. Exclusive distribution b. Invasive distribution c. Intensive distribution d. Selective distribution e. Excessive distribution

a. Exclusive distribution

A storage warehouse creates value by? Select one: a. Holding inventory closer to where customers are likely to use it. b. Act as a transshipment point as products move from manufacturer to retailer. c. Creating possession utility for producers d. A storage warehouse does all of these things. e. Providing a place for last minute assembly.

a. Holding inventory closer to where customers are likely to use it.

The decision to hold inventory is critical to providing customer service through the supply chain. There are both costs and benefits. Which of these is NOT a cost of holding inventory? Select one: a. Increased number of stock outs b. The risk of damage or spoilage c. Inventory taxes d. Materials handling costs e. The need to purchase inventory insurance

a. Increased number of stock outs

____________ deals with the flow of physical goods and related information through the value chain? Select one: a. Logistics b. Promotion c. Efficiency d. Channeling e. Marketing

a. Logistics

A ________________ is all of the organizations and activities associated with moving the product from producer to end user? Select one: a. Marketing Channel b. Business c. Cartel d. Sales organization e. Market segment

a. Marketing Channel

The _________________ channel flow involves two-way communication between producer and consumer? Select one: a. Negotiation b. Risking c. Ownership d. Ordering e. Promotion

a. Negotiation

The ____________ channel flow deals with the movement of the actual product from producer to consumer? Select one: a. Physical possession b. Promotion c. Payment d. Ordering e. Ownership

a. Physical possession

Carlina operates a wholesale lumber business serving contractors in her Midwestern city. She takes orders from a central location and delivers the lumber and other building materials to the contractor's jobsite using her own trucks. She orders her lumber from a mill in Washington State. Because the lumber is bulky and she orders large quantities she uses _________ transportation to ship the lumber from Washington? Select one: a. Rail b. Truck c. Water d. Pipeline e. Air

a. Rail

Which of these is NOT a tool used in materials handling? Select one: a. Safety stock b. RFID (radio frequency identification) c. Forklifts d. Conveyor belts e. Bar code scanners Feedback

a. Safety stock

The supply chain centers on the producer. Downstream activities consist of? Select one: a. The flow of finished product from the producer to the end user b. The flow of raw materials from the supplier to the producer c. The channel flows that deal with the physical product. d. Actions that will allow the company to exit from an unattractive market. e. Quality control and service monitoring after production begins

a. The flow of finished product from the producer to the end user

Which of these would be considered an indirect marketing channel? Select one: a. A producer and a customer b. A customer, a retailer, and a producer c. A producer and a retailer d. A producer, a wholesaler, and a retailer. e. A retailer and a customer

b. A customer, a retailer, and a producer

The decision to hold inventory is critical to providing customer service through the supply chain. There are both costs and benefits. Which of these is NOT a benefit of holding inventory? Select one: a. To create possession utility for producers b. Make it possible to save money buy buying in volume. c. Serve as a buffer against supply interruptions d. To create time utility for customers e. Serve as a hedge against inflation for price-sensitive goods.

a. To create possession utility for producers

The decision to hold inventory is critical to providing customer service through the supply chain. There are both costs and benefits. Which of these is NOT a benefit of holding inventory? Select one: a. To create possession utility for producers b. Serve as a buffer against supply interruptions c. Make it possible to save money buy buying in volume. d. Serve as a hedge against inflation for price-sensitive goods. e. To create time utility for customers

a. To create possession utility for producers

When dealing with order processing, there is a trade-off between ____________ and ____________? Select one: a. Transaction costs, inventory levels b. Storage, distribution intensity c. Financial cost, risk-related costs d. Speed of delivery, damage e. Speed of delivery, cost

a. Transaction costs, inventory levels

Thomas Friedman wrote a book about the impact of new technologies and other trends impacting the way business is conducted in the world called The World is Flat. One of the basic premises is that widespread adoption of internet protocols and the seamless connection of computer systems along the value chain allowing for the efficient flow of ___________ to help smooth the flow of goods from raw materials to end user. Select one: a. Intermediation b. Information c. Technology d. Permission e. Payment Feedback

b. Information

When I order a book from Amazon.com, an online marketplace, I receive an order confirmation that tells me when my package will leave the Amazon warehouse, the name of the shipper, and a link to the shipper's website that allows me to track the progress of my package from the warehouse to my home. This way I know exactly when to expect my package. This is an example of the use of ____________ to smooth the flow of goods and services through the channel of distribution? Select one: a. Intermediation. b. Information c. Warehousing d. Payment e. Permission

b. Information

Carlina operates an oil refinery in Houston Texas. She gets her crude oil from the largest oilfield in Texas. Because the product is more or less fluid and because she knows exactly where the raw material is coming from and where it has to go, Carlina uses _________ transportation for this part of her business? Select one: a. Truck b. Pipeline c. Air d. Water e. Rail

b. Pipeline

Carlina operates an oil refinery in Houston Texas. She gets her crude oil from the largest oilfield in Texas. Because the product is more or less fluid and because she knows exactly where the raw material is coming from and where it has to go, Carlina uses _________ transportation for this part of her business? Select one: a. Water b. Pipeline c. Air d. Rail e. Truck

b. Pipeline

A marketing channel helps to create ______ utility? Select one: a. Time b. Place c. Form d. Electric e. Image

b. Place

Which of the following is NOT a cost typically associated with logistics? Select one: a. Materials handling b. Product development c. Stockout. d. Order processing e. Storage

b. Product development

Carlina operates a wholesale lumber business serving contractors in her Midwestern city. She takes orders from a central location and delivers the lumber and other building materials to the contractor's jobsite using her own trucks. She orders her lumber from a mill in Washington State. Because the lumber is bulky and she orders large quantities she uses _________ transportation to ship the lumber from Washington? Select one: a. Truck b. Rail c. Pipeline d. Air e. water

b. Rail

Coca Cola's basic strategy is they you should never be more than an arms length away from a cold, refreshing Coke. In order to achieve this strategy they try to make Coke products available for sale through as many outlets as possible. You can buy bottled Coke in the grocery store, fountain coke at a restaurant, single cans and bottles at convenience stores and gas stations, and individual cans from vending machines while you are waiting in line for a ride at an amusement park. Because the goal of the supply chain is to maximize __________, Coke is willing to bear the expense of having several different channels of distribution? Select one: a. Variety b. Responsiveness c. Downstream activities. d. Efficiency. e. Upstream activities

b. Responsiveness

Thomasville furniture decided to reduce the number of dealers carrying its line fine furniture. Stores who wished to carry Thomasville were required to dedicate at least 10,000 square feet in their store for a Thomasville gallery. This meant that only the larger dealers in a given market would be able to carry Thomasville. This is an example of? Select one: a. Exclusive b. Selective c. Exhaustive d. Intensive e. Discriminating

b. Selective

One of the advantages of ____________ is that they can be moved from one platform to another without having been loaded or unloaded. Names such as piggyback, fishyback relate to the variety of transportation options? Select one: a. Forklifts b. Shipping containers c. Trucks d. Conveyer belts e. Packages

b. Shipping containers

With _________________ the roles of the various channel partners are specified by a formal contract. Select one: a. Franchises b. The roles of the channel partners are specified by contract in all of these situations. c. Co-operative associations d. Vertical marketing systems

b. The roles of the channel partners are specified by contract in all of these situations.

Which of the following is an example of a direct marketing channel? Select one: a. The Avon Corporation which has company-paid salespeople sell cosmetics door to door b. These are all direct channels of distribution. c. My brother in law Don who custom builds homes for customers on their property. d. The Dell Corporation which sells computers to consumers through its company owned website. e. My niece Polly who sells hand-made jewelry at tables she rents at craft shows and art fairs.

b. These are all direct channels of distribution.

I can't believe it, said Wiley Coyote, I am the president of Acme enterprises and we make $200,000 a year profit with me working my tail off. Our distributor, Road Runner Representatives, made over $800,000 in commissions. I don't understand why they are making all of that money when all they do is run around all day and say beep-beep to customers. I think we should lower the commission rate to bring their income down to a more reasonable level. This is an example of? Select one: a. Horizontal conflict b. Vertical conflict. c. A price war d. Suspended animation e. Vertical integration

b. Vertical conflict.

Carlina operates a tofu making factory in Taiwan. She uses soybeans grown in Northwest Ohio for her tofu because they are very high quality and the prices are low. Soybeans will keep for a very long time without spoiling. Because her main concern is how to get the thousands of bushels of soybeans to her factory for the least cost, Carlina uses _________ transportation for this part of her business? Select one: a. Pipeline b. Water c. Truck d. Air e. Rail

b. Water

A direct marketing channel consists of? Select one: a. A producer and a retailer b. A retailer and a customer c. A producer and a customer d. A customer e. A producer, a truck, and a retailer.

c. A producer and a customer

Carlina operates a wholesale flower market serving florists in her city. She orders her roses from Ecuador because the quality is good and the prices are very competitive. Because the roses become unsalable after a day or two, Carlina uses _________ transportation for this part of her business? Select one: a. Water b. Truck c. Air d. Rail e. Pipeline

c. Air

Materials handling deals with loading and unloading products and moving them short distances from place to place. One of the biggest issues in material handling is? Select one: a. Theft b. Keeping track of where things are c. All of these are issues associated with materials handling d. Breakage e. Damage control

c. All of these are issues associated with materials handling

Which of the following is NOT an example of an intermediary? Select one: a. Distributor b. Agent c. Consumer d. Retailer e. Broker

c. Consumer

Kendra runs a wholesale distribution center for candy. Each week she receives candy from all of the major manufacturers and repackages it so that a retailer can buy a case of candy bars and have some from every manufacturer in the case. Kendra is adding value by ___________? Select one: a. Grading. b. Transporting c. Creating assortment d. Storing e. Disintermediating

c. Creating assortment

Wal-Mart's basic strategy is to provide products to customers at rock bottom prices. Thus their slogan, "Always Low Prices." In order to achieve this strategy, Wal-Mart's Supply chain is designed to maximize ___________? Select one: a. Variety b. Downstream activities. c. Efficiency. d. Responsiveness e. Upstream activities

c. Efficiency.

Caterpillar makes heavy equipment for the construction industry. These machines are used hard and need fast reliable service to keep them running once a customer has purchased one. Because of this, there is only one Caterpillar dealer in any market. This is an example of __________ distribution? Select one: a. Intensive b. Exhaustive c. Exclusive d. Selective e. Heavy-duty

c. Exclusive

A storage warehouse creates value by? Select one: a. A storage warehouse does all of these things. b. Providing a place for last minute assembly. c. Holding inventory closer to where customers are likely to use it. d. Act as a transshipment point as products move from manufacturer to retailer. e. Creating possession utility for producers

c. Holding inventory closer to where customers are likely to use it.

One of the issues in order processing is ________ which recognizes that customer orders cannot always be filled immediately? Select one: a. Dependability b. Communication c. Lead time d. Variability e. Flexible manufacturing

c. Lead time

One of the issues in order processing is ________ which recognizes that customer orders cannot always be filled immediately? Select one: a. Variability b. Dependability c. Lead time d. Communication e. Flexible manufacturing

c. Lead time

Coca Cola's basic strategy is they you should never be more than an arms length away from a cold, refreshing Coke. In order to achieve this strategy they try to make Coke products available for sale through as many outlets as possible. You can buy bottled Coke in the grocery store, fountain coke at a restaurant, single cans and bottles at convenience stores and gas stations, and individual cans from vending machines while you are waiting in line for a ride at an amusement park. Because the goal of the supply chain is to maximize __________, Coke is willing to bear the expense of having several different channels of distribution? Select one: a. Variety b. Upstream activities c. Responsiveness d. Downstream activities. e. Efficiency.

c. Responsiveness

Kendra runs a wholesale distribution center for candy. Each month she receives a shipment of candy from her supplier. She always has enough inventory on hand so that her retail customers can buy cases of candy whenever they need it. Kendra is adding value by ___________? Select one: a. Creating assortment b. Breaking wind c. Storing d. Transporting e. Grading.

c. Storing

The biggest difference between a merchant wholesaler and an agent or broker is that the merchant wholesaler? Select one: a. Deals with more than one company's products. b. Doesn't have to call on customers. c. Takes ownership of the products it carries. d. Is paid a commission on what it sells e. Doesn't bring buyers and sellers together.

c. Takes ownership of the products it carries.

The supply chain centers on the producer. Upstream activities consist of? Select one: a. Market research and product concept testing before production begins b. The flow of finished product from the producer to the end user c. The flow of raw materials from the supplier to the producer d. The channel flows that deal with information. e. Gaining permits and licenses in order to be able to operate the business.

c. The flow of raw materials from the supplier to the producer

Unlike a storage warehouse, a distribution center is primarily for? Select one: a. Vertical integration b. Climate control c. Transshipment of products d. Storage e. Reintermediation

c. Transshipment of products

Carlina operates an automobile parts manufacturing plant in Chillicothe, Ohio. She has automotive customers in Michigan, Ohio, Tennessee, Georgia and Indiana. Because most of her customers insist on Just In Time inventory management she needs to know exactly when the shipments of her product to the customer will arrive. Carlina uses _________ transportation for this part of her business? Select one: a. Water b. Air c. Truck d. Pipeline e. Rail

c. Truck

A _____________ includes all of the activities involved with taking a raw material, turning it into a finished product, and getting it into the hands of the customer? Select one: a. Supply network b. Channel flow c. Value chain d. Marketing channel e. Channel strategy

c. Value chain

What is the difference between the supply chain and the value chain? Select one: a. The supply chain deals with the cost side of the product while the value chain deals with the revenue side of the product. b. the supply chain refers to activities around the physical product while the value chain deals with information flows associated with distribution. c. Very little. The supply chain is the part of the value chain. d. The supply chain concept is used with tangible products while the value chain concept is used with services. e. Supply chain is a term used in marketing textbooks while value chain is a term used in Management textbooks.

c. Very little. The supply chain is the part of the value chain.

BruceCo makes novelty products such as whoopee cushions and plastic vomit. The company sells about $2 million dollars worth of product. The major customers for BruceCo products are small independent novelty shops that will typically order less than $200 worth of product at a time. Which of these marketing channels would be the best for BruceCo to adopt? Select one: a. Set up a series of regional warehouses to keep inventory nearer to the customer. b. Hire a manufacturer's representative to call on independent novelty shops and send the orders into the factory. c. Work with a distributor who carries a variety of products sold in novelty shops. d. Recruit junior high school students to demonstrate the product during lunch. e. Work with a broker to negotiate deals with each of the novelty shops who wish to carry BruceCo products.

c. Work with a distributor who carries a variety of products sold in novelty shops.

BruceCo is an inventory liquidator. The company identifies other businesses that have huge amounts of unsold inventory and buys it from them at pennies on the dollar. They then try to find another company that can use the inventory and sell it to them at a profit. What makes this business so fun is that you never know from day to day what product you will be dealing in or who might be a prospective customer. What type of wholesaler would BruceCo be considered? Select one: a. A distributor who carries a variety of products and sells to a variety of customers. b. A direct channel, selling to customers through a company website, charging $10 shipping and handling for ground delivery and $20 shipping and handling for rush delivery. c. A manufacturer's representative to call manufacturing businesses send the orders into BruceCo. d. A broker who negotiates deals with any customer who wishes to purchase what BruceCo is trying to liquidate. e. A regional warehouse which keeps inventory nearer to the customer.

d. A broker who negotiates deals with any customer who wishes to purchase what BruceCo is trying to liquidate.

Which of the following is NOT an example of a third-party provider of logistics? Select one: a. A parcel delivery company b. An export/import firm c. A freight forwarder d. A design firm e. A public warehouse.

d. A design firm

Carlina operates a wholesale flower market serving florists in her city. She orders her roses from Ecuador because the quality is good and the prices are very competitive. Because the roses become unsalable after a day or two, Carlina uses _________ transportation for this part of her business? Select one: a. Water b. Truck c. Rail d. Air e. Pipeline

d. Air

In marketing channels where there are both large players and small players, a(n) ___________, usually the largest member of the channel will assume responsibility for coordinating activities in the channel? Select one: a. Opinion leader. b. System administrator c. Vertical marketing system d. Channel captain e. Intermediary

d. Channel captain

In marketing channels where there are both large players and small players, a(n) ___________, usually the largest member of the channel will assume responsibility for coordinating activities in the channel? Select one: a. Vertical marketing system b. System administrator c. Intermediary d. Channel captain e. Opinion leader.

d. Channel captain

The _______________ concept recognizes that there are a set of functions that need to happen in order to move a product from the producer to the consumer? Select one: a. Value b. Four "P's" c. Utility d. Channel flow e. Intermediary

d. Channel flow

The basic trade-off in logistics is between ________ and ________? Select one: a. Upstream and downstream b. Time and money c. Revenue and costs d. Efficiency and responsiveness. e. Storage and transportation.

d. Efficiency and responsiveness.

Wal-Mart's basic strategy is to provide products to customers at rock bottom prices. Thus their slogan, "Always Low Prices." In order to achieve this strategy, Wal-Mart's Supply chain is designed to maximize ___________? Select one: a. Variety b. Responsiveness c. Downstream activities. d. Efficiency. e. Upstream activities

d. Efficiency.

Kendra runs a wholesale distribution center for candy. Each week she receives candy from all of the major manufacturers. She stamps a date sticker on each package so the retailers will know how fresh the candy is. She also provides information on how much cocoa is in the chocolate from the various manufacturers. Kendra is adding value by ___________? Select one: a. Breaking bulk b. Transporting c. Creating assortment d. Grading. e. Storing

d. Grading.

The decision to hold inventory is critical to providing customer service through the supply chain. There are both costs and benefits. Which of these is NOT a cost of holding inventory? Select one: a. The need to purchase inventory insurance b. The risk of damage or spoilage c. Materials handling costs d. Increased number of stock outs e. Inventory taxes

d. Increased number of stock outs

Most of the functions that need to happen in order to move a product from producer to consumer deal with? Select one: a. Transportation b. All of the above c. Money d. Information e. Products

d. Information

Starbucks recently announced that it intends to grow from 21,000 to 30,000 stores world wide by the year 2020. Even though it seems as if there is a Starbucks on every corner in America, the company feels there is a need for more outlets. This is an example of ___________ distribution. Select one: a. Selective b. Caffeinated c. Exclusive d. Intensive e. Exhaustive

d. Intensive

____________ deals with the flow of physical goods and related information through the value chain? Select one: a. Channeling b. Efficiency c. Promotion d. Logistics e. Marketing

d. Logistics

A marketing channel helps to create ______ utility? Select one: a. Electric b. Time c. Form d. Place e. Image

d. Place

Which of these is NOT a tool used in materials handling? Select one: a. Bar code scanners b. Forklifts c. RFID (radio frequency identification) d. Safety stock e. Conveyor belts

d. Safety stock

One of the ways intermediaries create value is to? Select one: a. Increase the amount of money customers are willing to pay for a good or service. b. Provide a buffer between consumer and producer so individuals don't feel like they are dealing with a large corporation. c. Invest in trucks that are much more expensive than other companies in the channel can afford. d. Specialize in one or more channel functions in order to become better at it than others in the channel. e. These are all ways that intermediaries create value.

d. Specialize in one or more channel functions in order to become better at it than others in the channel.

In a market with four producers and six retailers, the addition of a wholesaling middleman can decrease the number of transactions needed to have an efficient market form 24 to 10. This is an example of? Select one: a. Economies of scale b. Selective distribution c. Disintermediation d. The economy of transactions e. Disruptive innovations

d. The economy of transactions

One critical issue to consider when developing a marketing channel that may not be covered in marketing textbooks is...? Select one: a. Whether or not to accept credit cards b. How many intermediaries to include in the channel c. The nature of the product being distributed d. The need to prove your product is a good fit for your channel partners e. Whether or not to outsource channel flows

d. The need to prove your product is a good fit for your channel partners

Unlike a storage warehouse, a distribution center is primarily for? Select one: a. Storage b. Climate control c. Vertical integration d. Transshipment of products e. Reintermediation

d. Transshipment of products

Which of the following is NOT an example of a third-party provider of logistics? Select one: a. An export/import firm b. A public warehouse. c. A freight forwarder d. A parcel delivery company e. A design firm

e. A design firm

A marketing channel always includes? Select one: a. All of the above b. A wholesaler c. A retailer d. A salesperson e. A producer

e. A producer

Which of the following is NOT a cost typically associated with logistics? Select one: a. Transportation b. Inventory c. Stockout. d. Order processing e. Advertising

e. Advertising

Which of the following is NOT an issue typically addressed in developing a channel strategy? Select one: a. Market Coverage b. In-stock levels c. After-sale service d. Service level e. Advertising

e. Advertising

When dealing with logistics there is a fundamental trade-off between ________ and ________. The goal is to keep one high and the other low, but they tend to increase together. Select one: a. Upstream, downstream. b. Profit, revenue c. Service, responsiveness d. Cost, efficiency e. Cost, service level Feedback

e. Cost, service level

BruceCo makes novelty products such as whoopee cushions and plastic vomit. The company sells about $2 million dollars worth of product. The major customers for BruceCo products are small independent novelty shops that will typically order less than $200 worth of product at a time. Adding an intermediary to the marketing channel could add value through _________? Select one: a. Specialization b. Humor c. Omnichannel distribution d. Disintermediation e. Economy of transactions

e. Economy of transactions

Tami owned the Subway franchise in Centennial Village at San Francisco state University. She heard that another franchisee had been granted permission to open a Subway in the student union. She immediately complained to whoever would listen to her that the new store would take away most of her business. This is an example of? Select one: a. Disenfranchisement b. Vertical conflict. c. Vertical integration d. A price war e. Horizontal conflict

e. Horizontal conflict

Which of the following is NOT a reason a company might want to have more than one marketing channel? Select one: a. To serve customers in different industries. b. To provide local service to customers in different areas of the country. c. Because you sell the same product to two completely different customer groups d. To avoid becoming dependent on a single middleperson e. In order to earn back money that otherwise would have been earned by your retail network.

e. In order to earn back money that otherwise would have been earned by your retail network.

When I order a book from Amazon.com, an online marketplace, I receive an order confirmation that tells me when my package will leave the Amazon warehouse, the name of the shipper, and a link to the shipper's website that allows me to track the progress of my package from the warehouse to my home. This way I know exactly when to expect my package. This is an example of the use of ____________ to smooth the flow of goods and services through the channel of distribution? Select one: a. Payment b. Warehousing c. Permission d. Intermediation. e. Information

e. Information

A(n) ____________ is an entity that assists in the movement of products through the channel? Select one: a. Principal b. Supplier c. End user d. Customer e. Intermediary

e. Intermediary

Which of the following is NOT a cost typically associated with logistics? Select one: a. Storage b. Stockout. c. Materials handling d. Order processing e. Product development

e. Product development

The biggest difference between a merchant wholesaler and an agent or broker is that the merchant wholesaler? Select one: a. Doesn't have to call on customers. b. Is paid a commission on what it sells c. Doesn't bring buyers and sellers together. d. Deals with more than one company's products. e. Takes ownership of the products it carries.

e. Takes ownership of the products it carries.

When dealing with order processing, there is a trade-off between ____________ and ____________? Select one: a. Speed of delivery, damage b. Financial cost, risk-related costs c. Storage, distribution intensity d. Speed of delivery, cost e. Transaction costs, inventory levels

e. Transaction costs, inventory levels

Kendra runs a wholesale distribution center for candy. Each week she receives candy from all of the major manufacturers at her warehouse. She then puts cases of each brand of candy in her delivery trucks so that her drivers can visit her retail customers and resupply their candy racks. Kendra is adding value by ___________? Select one: a. Storing b. Breaking bulk c. Creating confusion. d. Grading. e. Transporting

e. Transporting

Carlina operates an automobile parts manufacturing plant in Chillicothe, Ohio. She has automotive customers in Michigan, Ohio, Tennessee, Georgia and Indiana. Because most of her customers insist on Just In Time inventory management she needs to know exactly when the shipments of her product to the customer will arrive. Carlina uses _________ transportation for this part of her business? Select one: a. Air b. Water c. Pipeline d. Rail e. Truck

e. Truck

A selective market coverage approach works best for shopping products that have a distinctive brand. Select one: True False

false

From a channel flow perspective, ownership of a product changes from producer to consumer when the consumer takes physical possession of the product. Select one: True False

false

Keeping inventory levels low decreases the chance of a stock out. Select one: True False Feedback

false

Keeping inventory levels low decreases the chance of a stock out. Select one: True False

false

A distributor is simply a wholesaler serving the B2B (business to business) market. Select one: True False

true

Availability or having a product in stock is a primary distribution concern for convenience products. Select one: True False

true

One drawback to adopting an intensive market coverage strategy is that there is no incentive for channel partners to promote your product because it isn't "special". Select one: True False

true