Question 1

The more distribution intermediaries that a firm employs, the greater the customer contact it achieves and the greater its control over the marketing mix.

Accepted Answer

A) True 
 B)False

Question 2

a.	Discuss the circumstances by which a manufacturer could emerge as the dominant firm in an administered channel arrangement. Explain your answer.
b. How could a wholesaler be dominant? Explain your answer.

Accepted Answer

a. A manufacturer could emerge as the do

Question 3

Which statement concerning motor carriers is NOT correct?

Accepted Answer

A)  The trucking industry has not yet been deregulated. 
B)  Motor carriers ship small packages over short distances. 
C)  Motor carriers serve more locations than railroads, pipelines, or airways. 
D)  Motor carriers are often used in conjunction with rail and air transportation services. 
A)  The trucking industry has not yet been deregulated. 
B)  Motor carriers ship small packages over short distances. 
C)  Motor carriers serve more locations than railroads, pipelines, or airways. 
D)  Motor carriers are often used in conjunction with rail and air transportation services.

Question 4

The sorting process enables

Accepted Answer

A)  small firms to purchase large quantities of goods. 
B)  the conflicting goals of manufacturers and consumers to be resolved. 
C)  small firms to receive high levels of customer service. 
D)  channel members to be viewed as strategic partners. 
A)  small firms to purchase large quantities of goods. 
B)  the conflicting goals of manufacturers and consumers to be resolved. 
C)  small firms to receive high levels of customer service. 
D)  channel members to be viewed as strategic partners.

Question 5

In comparison to the distribution channel for final goods, the distribution channel for industrial goods

Accepted Answer

A)  is more prone to use team selling. 
B)  is less direct. 
C)  is longer. 
D)  offers less technical service. 
A)  is more prone to use team selling. 
B)  is less direct. 
C)  is longer. 
D)  offers less technical service.

Question 6

Electronic data interchange is an integral part of a just-in-time inventory system.

Accepted Answer

A) True 
 B)False

Question 7

A manufacturer decides to use final consumer-oriented, rather than trade-oriented promotions. The manufacturer is employing which type of distribution strategy?

Accepted Answer

A)  Dual channel 
B)  Administered channel 
C)  Pushing 
D)  Pulling 
A)  Dual channel 
B)  Administered channel 
C)  Pushing 
D)  Pulling

Question 8

Intermediaries are typically compensated through the use of both functional discounts and commissions.

Accepted Answer

A) True 
 B)False

Question 9

A dual channel of distribution is best used by firms having a concentrated demand pattern.

Accepted Answer

A) True 
 B)False

Question 10

The important elements of a contractual channel arrangement are specified in a supplier/distribution intermediary contract.

Accepted Answer

A) True 
 B)False

Question 11

An important characteristic of a just-in-time (JIT) inventory system is

Accepted Answer

A)  the minimization of safety stock requirements. 
B)  the use of economic order quantity formulas. 
C)  lower usage rates. 
D)  increased inventory holding costs. 
A)  the minimization of safety stock requirements. 
B)  the use of economic order quantity formulas. 
C)  lower usage rates. 
D)  increased inventory holding costs.

Question 12

The sorting process can be best handled through direct distribution.

Accepted Answer

A) True 
 B)False

Question 13

Describe five potential causes of channel conflict. Be sure to identify the conflicting goals of the manufacturer/service provider and the distribution intermediary.

Accepted Answer

Channel conflict can arise from a variet

Question 14

With which distribution approach would a company first seek to generate final consumer demand and then secure dealer support?

Accepted Answer

A)  Horizontal integration 
B)  Vertical integration 
C)  Pulling strategy 
D)  Pushing strategy 
A)  Horizontal integration 
B)  Vertical integration 
C)  Pulling strategy 
D)  Pushing strategy

Question 15

Which of these is NOT a transportation service company?

Accepted Answer

A)  U.S. Postal Service 
B)  Specialized express companies 
C)  Private parcel services 
D)  Freight forwarders 
A)  U.S. Postal Service 
B)  Specialized express companies 
C)  Private parcel services 
D)  Freight forwarders

Question 16

Which statement concerning airways is NOT correct?

Accepted Answer

A)  The use of airways generally requires the use of regional warehouses. 
B)  Airways are the fastest transportation form. 
C)  The use of airways as a transportation form is dominated by high-value, perishable, and emergency goods. 
D)  The costs of packing, unpacking, and preparing goods are lower for airways than for other transportation forms. 
A)  The use of airways generally requires the use of regional warehouses. 
B)  Airways are the fastest transportation form. 
C)  The use of airways as a transportation form is dominated by high-value, perishable, and emergency goods. 
D)  The costs of packing, unpacking, and preparing goods are lower for airways than for other transportation forms.

Question 17

The total-cost approach may be used by firms to justify the relatively high cost of air freight.

Accepted Answer

A) True 
 B)False

Question 18

A firm has order-processing costs of $8, an annual demand of 4,000 units, holding costs equal to 20 percent of the average inventory on hand, and wholesale unit costs of $2. What is its economic order quantity?

Accepted Answer

A)  10 units 
B)  200 units 
C)  400 units 
D)  1,000 units 
A)  10 units 
B)  200 units 
C)  400 units 
D)  1,000 units

Question 19

High-value, perishable, and emergency goods dominate which transportation form?

Accepted Answer

A)  Waterways 
B)  Pipelines 
C)  Motor carriers 
D)  Airways 
A)  Waterways 
B)  Pipelines 
C)  Motor carriers 
D)  Airways

Question 20

Convenience products are generally distributed through selective distribution.

Accepted Answer

A) True 
 B)False

Exam 14: Value Chain Management and Logistics

The more distribution intermediaries that a firm employs, the greater the customer contact it achieves and the greater its control over the marketing mix.

a. Discuss the circumstances by which a manufacturer could emerge as the dominant firm in an administered channel arrangement. Explain your answer. b. How could a wholesaler be dominant? Explain your answer.

Which statement concerning motor carriers is NOT correct?

The sorting process enables

In comparison to the distribution channel for final goods, the distribution channel for industrial goods

Electronic data interchange is an integral part of a just-in-time inventory system.

A manufacturer decides to use final consumer-oriented, rather than trade-oriented promotions. The manufacturer is employing which type of distribution strategy?

Intermediaries are typically compensated through the use of both functional discounts and commissions.

A dual channel of distribution is best used by firms having a concentrated demand pattern.

The important elements of a contractual channel arrangement are specified in a supplier/distribution intermediary contract.

An important characteristic of a just-in-time (JIT) inventory system is

The sorting process can be best handled through direct distribution.

Describe five potential causes of channel conflict. Be sure to identify the conflicting goals of the manufacturer/service provider and the distribution intermediary.

With which distribution approach would a company first seek to generate final consumer demand and then secure dealer support?

Which of these is NOT a transportation service company?

Which statement concerning airways is NOT correct?

The total-cost approach may be used by firms to justify the relatively high cost of air freight.

A firm has order-processing costs of $8, an annual demand of 4,000 units, holding costs equal to 20 percent of the average inventory on hand, and wholesale unit costs of $2. What is its economic order quantity?

High-value, perishable, and emergency goods dominate which transportation form?

Convenience products are generally distributed through selective distribution.

Marketing Today

The Environment in Which Marketing Operates

Developing and Enacting Strategic Marketing Plans

Information for Marketing Decisions

Societal, Ethical, and Consumer Issues

Global Aspects of Marketing

Marketing and the Internet

Final Consumers

Organizational Consumers

Developing a Target Market Strategy

Basic Concepts in Product Planning

Goods Versus Services Marketing

Conceiving, Developing, and Managing Products

Wholesaling

Retailing

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Considerations in Price Planning

Developing and Applying a Pricing Strategy

Pulling It All Together: Integrating and Analyzing the Marketing Plan

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