62) Which of the following is true of the exclusive distribution strategy?
A) It makes products available to everybody, everywhere.
B) It is used primarily for convenience items.
C) It helps promote a brand’s luxury image.
D) It gives producers no control over their products.
E) It enlists all of the intermediaries willing to carry a company’s products.
63) Why do firms have difficulty accessing potential market areas in developing countries, such
as China and India?
A) inadequate distribution systems
B) anti-globalization efforts
C) highly centralized rural markets
D) limited manpower
E) high operating costs
64) ________ management calls for selecting, managing, and motivating individual channel
members and evaluating their performance over time.
A) Inventory
B) Marketing channel
C) Brand image
D) Customer experience
E) Brand content
65) To help recruit, train, organize, manage, motivate, and evaluate relationships with channel
partners, companies are now installing integrated high-tech ________ systems.
A) advertiser funded programming (AFP)
B) customer segmentation network (CSN)
C) brand content management (BCM)
D) partnership relationship management (PRM)
E) closed loop marketing (CLM)
66) When the seller allows only certain outlets to carry its products, this strategy is called
________.
A) exclusive distribution
B) subjective dealing
C) selective distribution
D) exclusive pricing
E) disintermediation
67) When a seller requires its dealers to abstain from handling competitors’ products, it is called
________.
A) subjective distribution
B) exclusive dealing
C) selective distribution
D) exclusive pricing
E) disintermediation
68) A strategy of exclusive dealing is most likely considered legal if ________.
A) the industry is newly developed
B) both parties have large territories
C) competition is not substantially lessened
D) the dealer agrees to promote the competitor’s products
E) the dealer receives a steady source of supply and support
69) Which of the following involves the producer agreeing not to sell to other dealers in a given
area, or the buyer agreeing to sell only in its own region?
A) closed loop marketing
B) uniform-delivery pricing
C) exclusive territorial agreement
D) cross merchandising
E) nationalized marketing
70) Producers of strong brands sometimes sell to dealers only on the condition that dealers take
some or all of the rest of a product line. This practice is known as ________.
A) product line franchising
B) selective dealing
C) cross merchandising
D) full-line forcing
E) disintermediation
71) Smart Shoppers, an online store which delivers its products to homes in and around
California, recently switched its entire fleet to biodiesel trucks that run on used cooking oil rather
than gas. Smart Shoppers has most likely developed a(n) ________.
A) vertical marketing channel
B) green supply chain
C) multitiered marketing channel
D) intermodal transportation system
E) hybrid distribution system
72) ________ involves planning, implementing, and controlling the physical flow of goods,
services, and related information from points of origin to points of consumption to meet
customer requirements at a profit.
A) Advertising
B) Product positioning
C) Mass customization
D) Marketing logistics
E) Branding
73) ________ logistics starts with the marketplace and works backward to the factory or even to
sources of supply.
A) Outbound
B) Customer-centered
C) Upstream
D) Reverse
E) Inbound
74) ________ logistics involves moving products from the factory to resellers and ultimately to
customers.
A) Customer-centered
B) Outbound
C) Upstream
D) Reverse
E) Inbound
75) ________ logistics refers to moving products and materials from the suppliers to the factory.
A) Outbound
B) Diverse
C) Inbound
D) Reverse
E) Customer-centered
76) Reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products
returned by consumers or resellers is known as ________.
A) cross merchandising
B) reverse logistics
C) disintermediation
D) diverse logistics
E) inbound logistics
77) ________ management refers to the management of upstream and downstream value-added
flows of materials, final goods, and related information among suppliers, the company, resellers,
and final consumers.
A) Cross
B) Supply chain
C) Price
D) Product cycle
E) Customer
78) Which of the following is NOT a major logistics function?
A) inventory management
B) product designing
C) warehousing
D) transportation
E) packaging
79) ________ are large and highly automated warehouses designed to receive goods from
various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as
quickly as possible.
A) Loading docks
B) Open warehouses
C) Distribution centers
D) Shipping platforms
E) Product platforms
80) ________ or “smart tag” technology helps companies locate a product’s exact position within
its supply chain.
A) RFID
B) PRM
C) VMS
D) BCODE
E) 3PL
81) Which of the following is true of using trucks as a transportation mode?
A) Transportation via trucks is costlier than by rail or air.
B) Trucks are a specialized means of shipping petroleum, natural gas, and chemicals from
sources to markets.
C) Trucks provide in-transit services such as the diversion of shipped goods to other destinations
en route.
D) Trucks are highly flexible in their routing and time schedules.
E) Trucks are the slowest mode of transportation and most affected by the weather.
82) Which of the following is true of transporting goods via railroads?
A) Railroads are ideal for the transportation of digital technology.
B) Railroads are a specialized means of shipping petroleum, natural gas, and chemicals from
sources to markets.
C) Railroads are a cost-effective way to ship large amounts of bulk products over long distances.
D) Railroads are the most flexible mode of transportation in their routing and time schedules.
E) Railroads are the slowest mode of transportation and are the most affected by the weather.
83) Which of the following is true of shipping goods via water transportation?
A) Water transportation is an efficient way to ship perishable merchandise over long distances.
B) Water carriers are highly flexible in their routing and time schedules.
C) Water transportation provides in-transit services, such as the processing of goods en route.
D) Water transportation is ideal when time is short and speed is needed.
E) Water transportation is the slowest mode of transportation and the most affected by the
weather.
84) ________ are a specialized means of shipping petroleum, natural gas, and chemicals from
sources to markets.
A) Airtunnels
B) Rail flatcars
C) Steam ships
D) Pipelines
E) Airlines
85) Which of the following is true about using air carriers as a transportation mode when
shipping products?
A) Air carriers are the most cost-effective way to ship non-perishable goods over short distances.
B) Air carriers are the slowest and least reliable modes of transport.
C) Air carriers provide in-transit services such as the processing of goods en route.
D) Air carriers are ideal when time is short and speed is needed.
E) Air carriers are a specialized means of shipping chemicals from sources to markets.
86) In intermodal transportation, which of the following describes the use of both rail and trucks
for transportation?
A) fishyback
B) drawbar
C) trainship
D) piggyback
E) airtruck
87) In intermodal transportation, which of the following describes the use of both water and
trucks for transportation?
A) fishyback
B) drawbar
C) trainship
D) piggyback
E) airtruck
88) Which of the following is the most effective way for a company to ship bulky, non–
perishable products if its key requirement is low-price?
A) pipelines
B) air transport
C) trucks
D) water carriers
E) piggyback
89) Which of the following is the most effective way for a company to ship perishable goods
over long distances, if its key requirement is speed?
A) pipelines
B) water transport
C) trucks
D) air transport
E) trainships
90) Heart of Midnight sells blue orchids to major florists around the world. Their key
requirement is speed. Which of the following modes of transport will help them?
A) rail transport
B) air carriers
C) trucks
D) piggybacks
E) water transport
91) Using ________, retailers can share real-time data on sales and current inventory levels with
suppliers.
A) automated storage and retrieval systems (ASRS)
B) vendor-managed inventory (VMI) systems
C) transportation management systems (TMS)
D) warehouse management systems (WMS)
E) distribution center management systems (DCMS)
92) ________ management is the logistics concept that emphasizes teamwork—both inside the
company and among all the marketing channel organizations—to maximize the performance of
the entire distribution system.
A) Logistics inventory
B) Integrated logistics
C) Logistics information
D) Independent logistics
E) Intractile logistics
Refer to the scenario below to answer the following questions.
Giant Beanstalks is a company based in Maryland which processes and cans vegetables. It has
contracts with several large farms in Riverdale, 80 miles away from the factory, that agree to sell
their produce to Giant Beanstalks. The company’s products are available to the public only
through Greenleaf, a grocery chain with 38 stores in the country.
93) Which of the following is Giant Beanstalks’ upstream partner?
A) the management of Greenleaf
B) the farmers of Riverdale
C) the trucks which carry Giant Beanstalks’ products to Greenleaf
D) the end-consumers who buy the canned vegetables from Greenleaf
E) the logistics division of Giant Beanstalk
94) What distribution strategy does Giant Beanstalks use?
A) inclusive distribution
B) exclusive distribution
C) selective distribution
D) intensive distribution
E) extensive distribution
95) Roland is the logistics manager of Giant Beanstalks. Which of the following is NOT an area
of responsibility for him?
A) the transportation of the canned vegetables to Greenleaf
B) the storage of the unprocessed vegetables
C) the advertising of the final product
D) product inventory-management
E) the packaging of the final product
96) Which of the following modes of transport should Roland choose to transport the
unprocessed vegetables from Riverdale’s farms to the Giant Beanstalks’ factory quickly and with
minimum cost?
A) air carrier
B) pipeline
C) truck
D) oil tanks
E) airtunnels
Refer to the scenario below to answer the following questions.
Kimberly’s Crown sells and designs jewelry. Despite the jewelry’s popularity, products are
available only through a few shopping stores across the country.
97) What distribution strategy does Kimberly’s Crown use?
A) exclusive
B) intensive
C) selective
D) inclusive
E) extensive