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