121. A public warehouse is a:
a. business that leases storage space and related facilities for distribution to other firms.
b. large, centralized warehouse that focuses on moving rather than storing goods.
c. company that provides a complete array of logistical services for businesses.
d. company-operated facility for storing and shipping products.
e. warehouse used to store the personal property of many different customers.
122. Garcia Wholesale Plumbing has seen its sales in the Southeast triple in the past two years. Materials handling
director Barb Peterson announces plans to the board for an Atlanta facility that will combine shipments received
from Garcia’s 25 suppliers for nearly immediate shipment to plumbing stores and contractors in the region. This new
facility would be best classified as a _____.
a. sales office
b. public warehouse
c. field public warehouse
d. distribution center
e. bonded warehouse
Chapter 13 – Marketing Channels and Supply-Chain Management
123. ____ adds time and place utility to a product by moving it from where it is made to where it is purchased and used.
a. Warehousing
b. Containerization
c. Distribution
d. Materials handling
e. Transportation
124. Madison is responsible for the freight transportation of products sold by Richland Tech, a producer of cooking oils
sold to large institutions. Since Madison needs to schedule freight transportation with the mode that provides the
most flexible schedules and routes, which of the following should she use?
a. Trucks
b. Waterways
c. Warehousing
d. Pipelines
e. Railroads
Chapter 13 – Marketing Channels and Supply-Chain Management
125. Which of the following modes of transportation hauls more freight than any other?
a. Railroads
b. Waterways
c. Pipelines
d. Trucks
e. Airways
126. Magnetic Springs wants to ship its bottled water with the most flexible schedules and routes of all transportation
modes. Magnetic Springs should use _____ as its transportation mode.
a. railroads
b. waterways
c. pipelines
d. trucks
e. airways
Chapter 13 – Marketing Channels and Supply-Chain Management
127. If a microchip in a computer at the Pentagon failed, which method of transportation would be most appropriate to
use to replace the chip immediately if one could get the new chip only from New York City?
a. Government vehicle
b. Airway
c. Waterway
d. Truck
e. Railroad
128. The Diamond Salt Company needs to transport 20 tons of salt from Baton Rouge, Louisiana, to Cincinnati. Which
of the following methods would be the cheapest for transporting this cargo?
a. Pipelines
b. Waterways
c. Trucks
d. Airways
e. Railroads
Chapter 13 – Marketing Channels and Supply-Chain Management
129. Assuming everything else equal, the most cost-efficient way for British Petroleum to transport crude oil from
remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be:
a. waterways.
b. intermodal transportation.
c. tanker trucks.
d. railroads.
e. pipelines.
130. Luke is a transportation coordinator for Volkswagen of North America. In order to move a large order of vehicles
from a plant in Germany to Chicago, he is planning to use both waterways and railroads. The combining and
coordinating of these two modes of transportation in order to take advantage of benefits offered by each of the
different types of carriers is known as:
a. intermodal transportation.
b. transportation piggybacking.
c. containerized movement.
d. efficiency transportation
e. freight forwarding.
Chapter 13 – Marketing Channels and Supply-Chain Management
131. Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through:
a. transit time.
b. warehousing.
c. packaging.
d. containerization.
e. lot sizes.
132. Which of the following modes of transportation are used when containers are shipped by piggyback?
a. Railroads and airways
b. Trucks and airways
c. Pipelines and trucks
d. Waterways and railroads
e. Railroads and trucks
Chapter 13 – Marketing Channels and Supply-Chain Management
133. Logistics Plus is an organization that consolidates shipments from several industrial firms into more efficient lot
sizes so that they can be more efficiently transported. Logistics Plus is an example of a(n) _____.
a. freight forwarder
b. forwarding agency
c. transport consolidator
d. specialty transportation company
e. intermodal shipping company
134. Freight transportation companies that offer several different shipment methods are called:
a. megacarriers.
b. intermodal transporters.
c. freight forwarders.
d. shipping experts.
e. superfreighters.
Chapter 13 – Marketing Channels and Supply-Chain Management
135. Dual distribution is characterized as:
a. illegal under the Robinson-Patman Act.
b. distribution channels that typically carry exclusive products, such as Rolex watches.
c. marketing environments that are highly competitive.
d. manufacturers that forbid an intermediary to carry products of competing producers.
e. distribution of a manufacturer’s product through two or more different channel structures.
136. In which of the following situations is dual distribution likely to be determined illegal?
a. A manufacturer sells its product through independent and company-owned retail outlets.
b. A manufacturer opens its own retail outlets across the country and sells its entire line of products.
c. A producer uses company outlets to dominate independent retailers that carry its products.
d. A producer sells its products both to wholesalers who deal with small and medium-sized retailers and directly
to retailers.
e. A producer charges higher prices at its company-owned retail outlets than independent retailers charge for
the same products.
Chapter 13 – Marketing Channels and Supply-Chain Management
137. The main reason a manufacturer will prohibit intermediaries from selling its products outside designated sales
territories is to:
a. tighten its control over distribution of its products.
b. discourage competition from other manufacturers.
c. incorporate selective distribution.
d. contain distribution costs.
e. punish intermediaries for past behavior.
138. Tying agreements occur when a:
a. producer distributes the same product through two or more different channels and insisting that the
distribution be equal.
b. manufacturer forbids an intermediary to carry products of competing manufacturers and forcing the
intermediary in dealing exclusively with it.
c. supplier furnishes a product to a channel member with the stipulation that the channel member must
purchase other products as well.
d. producer refuses to deal to channel members that seem unethical or illegitimate.
e. manufacturer prohibits intermediaries from selling its products outside designated sales territories.
Chapter 13 – Marketing Channels and Supply-Chain Management
139. An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is
known as:
a. exclusive distribution.
b. a tying agreement.
c. refusal to deal.
d. contractual VMS.
e. exclusive dealing.
140. Dell Computers is a nationally recognized manufacturer of computers for the small business and home markets. If
Dell were to order one of its wholesalers not to carry any computer products other than those made by Dell, this
arrangement would be known as:
a. a tying contract.
b. refusal to deal.
c. a restricted sales territory.
d. a restricted channel.
e. an exclusive dealing.
Chapter 13 – Marketing Channels and Supply-Chain Management
Scenario 13.1
Use the following to answer the questions.
Liz Claiborne Inc. markets several different brands, under their own Claiborne name label, as well as others. Their
primary brands, such as Liz Claiborne, Liz & Co, and DKNY, are sold to wholesalers. These brands are then
available through retail department stores such as Kohl’s and Macy’s. Their wholesale-based brands division is
positioned as customer-focused and cost-efficient. Their premium brands division includes labels such as Kate
Spade, Juicy Couture, and Mexx. These premium brands are sold through stores that are owned by Claiborne.
141. Refer to Scenario 13.1. If Liz Claiborne were to distribute their Kate Spade brand through its company-owned
stores and through wholesalers, to major department stores, then Liz Claiborne would be using ____ distribution.
a. intensive
b. vertical
c. horizontal
d. dual
e. exclusive
142. Refer to Scenario 13.1. Which of the following is most likely the primary factor Liz Claiborne Inc. used when
selecting the marketing channel for its Juicy Couture brand?
a. Characteristics of the intermediaries
b. Product attributes
c. Type of organization
d. Marketing environmental forces
e. Competition
Chapter 13 – Marketing Channels and Supply-Chain Management