Chapter 15 5 Marketing manager Connie Smythe is concerned that her firm is doing a poor job of managing the movement of finished products to the final consumer. If Connie is right

293. (p. 419) __________ brings raw materials, packaging, other goods and services, and information from

suppliers to producers.

D. Supply side logistics

294. (p. 419) _________ change(s) raw materials, parts, and other inputs into outputs such as finished products.

D. Materials handling

295. (p. 419) __________ deals with moving finished products and information to business buyers and ultimate

consumers.

D. Wholesale distribution

296. (p. 419) When firms manage the return of goods from consumers either because they are defective or for

recycling, they are involved in:

A. materials handling.

297. (p. 419) __________ is the term used to describe the use of outside firms to help move their goods through

D. Mediated distribution

298. (p. 419) Logistics is concerned:

D. only with the flow of finished goods from the producer to the final consumer.

299. (p. 419) The part of logistics that is most concerned with the flow of goods as well as work in process within

D. outbound logistics.

300. (p. 419) Which of the following activities would be most closely associated with inbound logistics?

A. arranging equipment on the factory floor so that materials move smoothly and efficiently from one work

station to the next

301. (p. 419) Mardelay Industries has discovered a defect in one of its products that may result in injury to users.

The company believes it must quickly develop and implement a recall program. It is likely that Mardelay soon

will be placing a great deal of emphasis on:

A. inbound logistics.

302. (p. 419) Marketing manager Connie Smythe is concerned that her firm is doing a poor job of managing the

movement of finished products to the final consumer. If Connie is right, her firm should work to improve its:

D. coordination of its freight forwarders.

303. (p. 419) Jen Carter is trying to find ways to improve her firm’s movement of materials and goods from its

warehouse to the factory floor. Jen is looking into ways of making her firm’s __________ more efficient.

A. internal logistics

304. (p. 420) Currently, in the United States the greatest volume of goods and services is shipped by:

A. trucks and vans.

305. (p. 421) ____________ put many small shipments together to create a single large shipment that can be

transported more cost-efficiently to the final destination.

A. Containerized shippers

306. (p. 422) Pipelines are used primarily to transport:

A. coal slurry.

307. (p. 420) _____________ shipping is the term used when truck trailers are transported on rail flatcars.

D. Trailerail

308. (p. 422) _____________ shipping uses several different modes of transportation to complete a single

long-distance movement of freight.

D. LAST (land-air-sea transport)

309. (p. 421, figure 15.7) The most dependable type of transportation is:

A. railroad.

310. (p. 421, figure 15.7) The transportation method with the most flexibility in the types of products it can handle is:

A. railroad.

311. (p. 421, figure 15.7) The highest-cost transportation method is:

A. railroad.

312. (p. 422) The two basic types of warehouses are:

A. public and private.

313. (p. 422) __________ warehouses are used to gather and redistribute products.

D. Merchandising

314. (p. 422) __________ warehouses are used to hold products for a relatively long time.

D. Distribution

315. (p. 421) Compared to rail transportation, one of the advantages of shipping by truck is that trucks:

A. are more energy efficient.

316. (p. 421, figure 15.7) Compared to railroads and trucks, the biggest advantage offered by air transport is that it is:

D. able to reach more destinations.

317. (p. 422) Items such as snow skis, lawnmowers, and other highly seasonal items are often held in

___________ warehouses during the months they are not in demand.

A. seasonal

318. (p. 422) Marcia Baker ships orchids and other perishable flowers from her greenhouses near San Francisco,

California to florists thousands of miles away in cities such as New York, Boston, and Philadelphia. Since the

flowers must reach the florists as quickly as possible, the best mode of transportation for Marcia to use would

be:

A. railroads.

319. (p. 421) Which type of wholesale organization would be most useful to a small manufacturer which has

shipments that are too small to fill a truck or railcar?

A. rack jobbers

320. (p. 422) Loundes Enterprises loads its products into truck trailers, then loads the trailers onto ships to

transport long distances. Once the ship reaches the port nearest the final destination, the trailers are unloaded

and hauled to their final destination by truck. Loundes’ practice of transporting truck trailers on ships is known

as ____________ shipping.

A. waterwheel

321. (p. 422) Kidder Manufacturing wants to ship a large quantity of its goods across the country. They have

contacted Wayback Shipping, Inc. to find out what the shipment would cost. Wayback has shown Kidder how it

can arrange to use a combination of barges, trains, and trucks to complete the shipment at a low cost. Wayback’s

D. multilevel distribution.

322. Explain why you agree or disagree with the following statement:

“Marketing intermediaries must charge a high enough price for the functions they perform to earn a profit.

Therefore, the cost of distributing goods can almost always be reduced by eliminating marketing intermediaries

from the channel of distribution.”

323. What is utility? What are the major types of utility? Give an example of how marketing intermediaries can

provide each type of utility.

324. What is a wholesaler? Describe the difference between merchant wholesalers and agents and brokers.

Identify the three types of limited-function wholesalers.

325. Retail distribution strategies can take three different forms. Identify the three forms and give examples of

products that would be marketed using each strategy.

326. Identify and describe the four basic types of distribution systems that are used to link firms in a formal

relationship.

327. What is logistics? Describe the types of issues you might deal with if you specialized in logistics.

328. (p. 419) The need for Lite Bite to recall its almond chocolate bars suggests that it had to be very concerned

with:

D. drop shipping.

329. (p. 412) Dee’s comments about the need to get Lite Bite products into additional retail outlets suggests the

company wants to use a(n):

D. selective distribution strategy.

330. (p. 417) Dee’s suggestion that the company needed more control over the way its products were displayed,

priced, and promoted prompted a lot of discussion. Mark suggested that the company should manage these

marketing functions for its products at the retail outlets. Mark appears to be suggesting that Lite Bite use a(n):

331. (p. 404) Currently, Lite Bite uses a lot of intermediaries to help distribute its products. Collectively, the

organizations that participate in getting finished goods from Lite Brite to the ultimate consumers of its products

are all part of the:

A. marketing mix.

332. (p. 407) After listening to all of the challenges and issues, Rhea said she wanted to propose a more sweeping

change. “Mark has already suggested doing some of the retailer’s job for them. I say go even further—let’s just

do away with all of the intermediaries. We can perform all of their functions ourselves,” she said. She went on

to explain that, “Since we won’t have to deal with intermediaries, my suggestion is bound to simplify the

distribution process and cut costs dramatically.” Rhea’s suggestion:

A. is truly radical because it calls for the elimination of the entire supply chain.

c15 Summary