Deck 11: Small Business Distribution and Location

Question 1

Traditionally,manufacturing processes are laid out in one of the two formats: grid layout and free-form layout.

Answer 1

False

Question 2

Face-to-face meetings with the client are infrequent if the services are provided at the client's location.

Answer 2

False

Question 3

It is good to opt for distributors when a whole line of products need to be bought or warehoused.

Answer 3

True

Question 4

Consumers find telemarketing to be an agreeable method of selling a product or service.

Question 5

A vending machine is a form of direct sales method.

Question 6

E-tailers have high overhead and limited shelf space.

Question 7

Radio advertisements provide both geographic and demographic segmentation of a product or service.

Question 8

There are three typical locations for services: at a client's location,at a mutually accessible location,and at the firm's location.

Question 9

The primary areas for conflict resolution in exporting include nonpayment and contract default issues.

Question 10

Exporting is usually expensive,difficult to start,and more risky than licensing,franchising,or joint ventures.

Question 11

Up-front cash payment by a consumer,prior to shipment of a product,is a payment risk to a company.

Question 12

Doing business in a different location other than the hometown is comparatively less expensive.

Question 13

Creating and distributing a catalog online saves the cost of printing and mailing.

Question 14

Participating in trade shows and trade missions increase international contacts.

Question 15

Leasing is an option with a considerably lower initial cash outlay and is often the only feasible choice for new businesses.

Question 16

Access for employees and reasonable cost are critical for businesses with low customer contact.

Question 17

Distributors and wholesalers prefer taking on start-up products as there are no setup charges involved.

Question 18

Setting up a short-term lease initially is one of the ways to handle an early termination of business.

Question 19

A direct mail approach needs major inventory investment.

Question 20

An "as is" property is one which is in compliance with all applicable laws,rules,and regulations.

Question 21

_____ refers to selling goods or services to consumers without intermediaries,typically to select customer groups and typically with tracking of the results.

A) Nondirect distribution
B) Direct marketing
C) Benchmarking
D) Contract manufacturing

Question 22

_____ refers to a method of selling in which catalogs,brochures,letters,videos,and other pieces of marketing materials are shipped straight to customers from which they can mail,call,or e-mail an order.

A) Guerilla marketing
B) Direct sales
C) Contract manufacturing
D) Direct mail

Question 23

Which of the following statements is true of catalogs?

A) Catalogs do not target particular types of consumers.
B) Creating and disseminating catalogs online increases company costs.
C) Most part-time entrepreneurs typically use existing catalogs for their products.
D) Catalogs do not focus on any particular types of products.

Question 24

Which of the following statements is true of telemarketing?

A) Outbound telemarketing is the result of direct response advertising.
B) It is the least expensive form of direct marketing.
C) It is found to be a very annoying form of marketing to most customers.
D) Inbound telemarketing involves the company calling customers.

Question 25

A _____ is a form of direct mail.

A) door-to-door sale
B) party sale
C) brochure
D) vending machine

Question 26

Which of the following statements is true of a direct mail approach?

A) It is a challenge to find the right market using this method.
B) It involves major inventory investments.
C) It is seen by most customers as a form of home invasion.
D) It does not need adequate preparation before selling a product.

Question 27

A(n)_____ refers to a set of goods or services that consists of only one or a few items.

A) in-process inventory
B) macro inventory
C) just-in-time inventory
D) micro inventory

Question 28

Which of the following forms of direct mail is the least expensive?

A) Catalog
B) Sales letter
C) Leaflet
D) E-mail

Question 29

_____ involves contacting customers via telephone for the express purpose of selling a product or service.

A) Telecasting
B) Guerilla marketing
C) Telemarketing
D) Teleprocessing

Question 30

Which of the following is a modern form of direct mail?

A) Catalogs and brochures
B) Direct faxing and e-mailing
C) Sales letters and mail orders
D) Postcards and leaflets

Question 31

Door-to-door sales and party sales are examples of _____.

A) direct sales
B) telemarketing
C) direct response advertising
D) contract manufacturing

Question 32

Which of the following forms of direct response advertising attracts a large audience and is a good way to demonstrate a product?

A) Television
B) Radio
C) Magazine
D) Billboard

Question 33

Which of the following direct sales methods is effective for products that need demonstrations or detailed explanations?

A) Industrial sales
B) Door-to-door sales
C) Vending machines
D) Flea market

Question 34

Which of the following is usually the first technique an entrepreneur uses to get customers?

A) Franchising
B) Guerilla marketing
C) Telemarketing
D) Word-of-mouth

Question 35

A(n)_____ refers to having only sufficient amount of products on the shelves to meet immediate purchases and usually requires frequent shipment from the supplier.

A) just-in-time inventory
B) macro inventory
C) micro inventory
D) in-process inventory

Question 36

Which of the following forms of direct marketing is the most expensive?

A) Direct sales
B) Telemarketing
C) Direct mail
D) Guerilla marketing

Question 37

In _____,an advertisement is placed in a magazine,newspaper,radio,billboard,or television and includes an order blank with a phone number,e-mail,or snail-mail address,using which customers can place immediate orders.

A) telemarketing
B) direct response advertising
C) guerilla marketing
D) direct selling

Question 38

While teaching strategy at Farrell University,Jessica developed an interactive strategy-simulation game to help her students understand its concepts.She found that they were able to grasp the concept much better from the game rather than from reading books.For two years,Jessica used the game to teach students.Eventually she removed possible glitches and perfected the game.She wanted students at other universities to benefit from the simulation.The result was the launch of Simulate Strategy,Inc.Given that Jessica has a very limited budget,which of the following forms of direct mail will be most appropriate for her to adopt?

A) Brochure
B) Direct response advertising
C) E-mail
D) Telemarketing

Question 39

Wholesalers and retailers who connect manufacturers to consumers are referred to as _____.

A) traffic generators
B) manufacturing agents
C) distribution channels
D) business franchisors

Question 40

_____ offer the flexibility of having a product available around the clock and at convenient locations.

A) Party sales
B) Farmers' markets
C) Vending machines
D) Door-to-door sales

Question 41

Which of the following has low overhead and unlimited shelf space and thereby can afford to take on an unknown firm or product?

A) An e-tailer
B) A wholesaler
C) A retailer
D) An agent

Question 42

A(n)_____ refers to a new firm that opens a Web site immediately,thus being exposed to customers from around the world.

A) freight forwarder
B) sheltered workshop
C) born international
D) contract manufacturer

Question 43

A(n)_____ is a middleman business which buys and sells to businesses rather than consumers.

A) manufacturer
B) agent
C) wholesaler
D) retailer

Question 44

In _____,several different outlets such as a website,direct mail,and traditional retailing are used to reach customers.

A) guerilla marketing
B) Internet marketing
C) multichannel marketing
D) direct sales

Question 45

While teaching strategy at Farrell University,Jessica developed an interactive strategy-simulation game to inculcate the concept of strategy to her students.She found that they were able to grasp the concept much better from the game rather than from reading books.For two years Jessica used the game to teach students.Eventually she removed possible glitches and perfected the game.She wanted students at other universities to benefit from the simulation.The result was the launch of Simulate Strategy,Inc.Some of Jessica's students suggested that she create a Web site for Simulate Strategy,Inc.Her company is fairly new and opening a Web site immediately would expose her company to customers from around the world.In this scenario,Simulate Strategy is an example of a _____.

A) freight forwarder
B) born international
C) sheltered workshop
D) contract manufacturer

Question 46

_____ is a form of direct response advertising that reaches local people but does not permit a lot of details.

A) Radio
B) Billboard
C) Magazine
D) Newspaper

Question 47

A _____ will warehouse products,pack and ship them,and send an automated e-mail to customers to let them know that the product is on its way.

A) contract manufacturer
B) traffic generator
C) sheltered workshop
D) fulfillment center

Question 48

A(n)_____ allows specific geographic segmentation.

A) newspaper
B) magazine
C) e-mail
D) video

Question 49

While teaching strategy at Farrell University,Jessica developed an interactive strategy-simulation game to inculcate the concept of strategy to her students.She found that they were able to grasp the concept much better from the game rather than from reading books.For two years Jessica used the game to teach students.Eventually she removed possible glitches and perfected the game.She wanted students at other universities to benefit from the simulation.The result was the launch of Simulate Strategy,Inc.Jessica places an advertisement about her product with her e-mail and contact information in the "Chronicle of Higher Education," a leading publication for University professors.Which of the following marketing strategies exemplifies this scenario?

A) Guerilla marketing
B) Telemarketing
C) Direct sales
D) Direct response advertising

Question 50

Which of the following international strategies is usually inexpensive,quick to start,easy to change,and less risky than the others?

A) Exporting
B) Joint venture
C) Franchising
D) Licensing

Question 51

Which of the following forms of direct response advertising allows very specific targeting and is appropriate for business-to-business selling?

A) Television
B) Radio
C) Magazine
D) Billboard

Question 52

_____ uses agents,export management companies,or export trading companies as intermediaries to handle most of the exporting process.

A) Indirect exporting
B) Freight forwarding
C) Contract manufacturing
D) Direct exporting

Question 53

A(n)_____ is a middleman business which sells to consumers or end-users of a product,typically in single or small quantities.

A) manufacturer
B) agent
C) wholesaler
D) retailer

Question 54

Which of the following statements is true of nondirect distribution?

A) A product's final price is more than the manufacturing cost if intermediaries are involved.
B) An agent sells products to consumers or end-users,typically in small quantities.
C) Distributors and wholesalers tend to take on start-up products due to zero setup charges.
D) A retailer represents a manufacturer's product to other business-to-business middleman firms.

Question 55

_____ advertisements provide both geographic and demographic segmentation with a highly distracted audience.

A) Television
B) Radio
C) Magazine
D) Newspaper

Question 56

A(n)_____ refers to a middleman business which represents a manufacturer's products or services to other business-to-business middleman firms.

A) retailer
B) wholesaler
C) manufacturer
D) agent

Question 57

In _____,products are sold to foreign buyers or distributors without any intermediaries.

A) indirect exporting
B) freight forwarding
C) contract manufacturing
D) direct exporting

Question 58

Wholesalers,retailers,distributors,agents are commonly referred to as ______.

A) freight forwarders
B) intermediaries
C) born internationals
D) traffic generators

Question 59

_____ uses creative and relatively inexpensive ways such as door-knob hangers,T-shirts,balloons,flyers under windshield wipers to reach customers.

A) Direct mail
B) Guerilla marketing
C) Telemarketing
D) Direct sales

Question 60

Neil places an advertisement for his pastry shop,Neil's Pastries,in the local newspaper.He includes his phone number,website,e-mail address,and postal address in the advertisement so that prospective customers have the option to contact him in the way they feel most comfortable.Neil is a _____.

A) guerilla marketer
B) multichannel marketer
C) telemarketer
D) direct seller

Question 61

_____ refer to other businesses that bring customers to a target market area.

A) Traffic generators
B) Freight forwarders
C) Fulfillment centers
D) Contract manufacturers

Question 62

Which of the following businesses requires a stake in the company and is good for brainstorming with other entrepreneurs?

A) Empowerment zone
B) Manufacturing business
C) Remote location service
D) Business incubator

Question 63

Identify the type of service location in which face-to-face meetings with clients are infrequent.

A) Mutually accessible location
B) Remote location
C) The client's location
D) The competitor's location

Question 64

Which of the following statements is true of low customer contact businesses?

A) Customer access is relatively important when compared to high customer contact businesses.
B) Some examples of low customer contact businesses are restaurants and dry cleaners.
C) Empowerment zones offer businesses low-cost space and tax advantages.
D) Business incubators are expensive and offer limited small business support services.

Question 65

Services at a _____ often have too much specialized equipment to be readily transported and a need for at least some client involvement.

A) client's location
B) competitor's location
C) remote location
D) mutually accessible location

Question 66

Which of the following is true of payment procedures?

A) A letter of credit can be exercised only with specified shipping documents.
B) Providing credit to customers is a risk to the customers.
C) Up-front cash payment is a risk to the customers.
D) A documentary draft involves only two parties-the company and the customer.

Question 67

_____ are specialists in export-related activities including tariff schedules,shipping,insurance,packing,transportation arrangements,customs clearing,and other export details.

A) Born internationals
B) Freight forwarders
C) Contract manufacturers
D) Traffic generators

Question 68

Which of the following is true of high customer contact businesses?

A) Remote location services are examples of high customer contact businesses.
B) Traffic generators reduce customer traffic to the target market area.
C) Businesses providing a strong contrast to existing competition in the same area increase customer traffic.
D) Customer ease is not critical in high customer contact businesses.

Question 69

Which of the following can be exercised only when presented with specified shipping records?

A) A documentary draft
B) A letter of credit
C) A mail order
D) A codicil

Question 70

A(n)_____ is a nonprofit organization or institution that provides business services by using handicapped or rehabilitated workers.

A) contract manufacturer
B) e-tailer
C) sheltered workshop
D) fulfillment center

Question 71

_____ refer to permanent changes made to the location to fit business's needs.

A) Rent defaults
B) Hidden charges
C) Leasehold improvements
D) Signage requirements

Question 72

A _____ is a document issued by a bank that guarantees a buyer's payment for a specified period of time upon compliance with specified terms.

A) documentary draft
B) letter of credit
C) mail order
D) bill of lading

Question 73

A _____ is an example of a low customer contact business.

A) retail establishment
B) medical or legal office
C) restaurant
D) manufacturing business

Question 74

Pest control,lawn services,and carpet cleaning are examples of services at a _____.

A) client's location
B) competitor's location
C) remote location
D) mutually accessible location

Question 75

When an existing firm with the correct production capabilities makes your product for you,it is referred to as _____.

A) contract manufacturing
B) a sheltered workshop
C) e-tailing
D) freight forwarding

Question 76

Which of the following statements is true of exporting?

A) Agents and export trading companies are extensively used in direct exporting.
B) Unstable governments and economies are a good market to export goods.
C) Shipping documentation and paperwork are generic to all products and countries.
D) Insurance is essential for export payments to overcome the risk of default.

Question 77

Which of the following statements is true of service locations?

A) Services at a remote location can be located anywhere in the world.
B) Office cleaning is an example of services at a mutually accessible location.
C) Services at a remote location needs frequent face-to-face client involvement.
D) Services at a mutually accessible location are ideal for home-based businesses.

Question 78

_____ businesses have diverse operations and three critical site selection considerations: traffic,customer ease,and competition.

A) Home-based
B) Low customer contact
C) E-tailer
D) High customer contact

Question 79

Which of the following is true of business locations?

A) Target market customers are essential factors for selecting business locations.
B) Most entrepreneurs prefer their business locations to be outside their hometown.
C) The cost of moving a company across town or across the country is cheap.
D) Proximity of competitors does not affect choice of business locations.

Question 80

Which of the following is an example of a high customer contact business?

A) Manufacturing businesses
B) Legal offices
C) Business incubators
D) Remote location services