120) 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
121) 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
122) Marketing channel management calls for selecting, managing, and motivating individual
channel members and evaluating their performance over time.
123) As a part of intensive distribution, dealers are expected to refrain from selling the products
of the producers’ competitors.
124) When a producer uses exclusive dealing and the use of exclusive territorial agreements to
keep a dealer from selling outside its territory, it is completely legal.
125) What factors should a firm consider when selecting intermediaries?
126) When would an exclusive dealing contract be legally problematic?
127) Explain how companies select, motivate, and evaluate intermediaries or channel members.
128) Evaluate how public policy affects distribution decisions.
129) Smart Shoppers, an online store that 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
130) ________ 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
131) Marketing logistics includes all of the following EXCEPT ________.
A) reverse logistics
B) inbound logistics
C) outbound logistics
D) customer-centered logistics
E) producer-centered logistics
132) ________ 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
133) ________ logistics involves moving products from the factory to resellers and ultimately
to customers.
A) Customer-centered
B) Reverse
C) Upstream
D) Outbound
E) Inbound
134) ________ logistics refers to moving products and materials from the suppliers to the
factory.
A) Outbound
B) Diverse
C) Inbound
D) Reverse
E) Customer-centered
135) 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
136) ________ 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) Price
C) Supply chain
D) Product cycle
E) Customer
137) Which of the following is NOT a major logistics function?
A) inventory management
B) product designing
C) warehousing
D) transportation
E) packaging
138) Logistics has grown in importance for all of the following reasons EXCEPT that
________.
A) companies that become channel members want to continue to grow and expand.
B) companies can gain a powerful competitive advantage by using improved logistics to give
customers better service or lower prices.
C) improved logistics can yield tremendous cost savings to both a company and its customers.
D) more than almost any other marketing function, logistics affects the environment and a
firm’s environmental sustainability efforts.
E) the explosion in product variety has created a need for improved logistics management.
139) Major logistics functions are logistics information management, inventory management,
transportation, and ________.
A) advertising
B) product design
C) financial projections
D) warehousing
E) customer sales
140) ________ 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
141) ________ 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
142) 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.
143) 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.
144) 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.
145) ________ are a specialized means of shipping petroleum, natural gas, and chemicals from
sources to markets.
A) Air tunnels
B) Rail flatcars
C) Steam ships
D) Pipelines
E) Airlines
146) 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.
147) 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
148) 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
149) 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
150) 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
151) 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)
152) ________ 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) Group logistics
Refer to the scenario below to answer the following question(s).
Giant Beanstalks is a company based in Maryland that 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.
153) 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
154) 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) air tunnels
Refer to the scenario below to answer the following question(s).
Kimberly’s Crown sells and designs jewelry. Despite the jewelry’s popularity, products are
available only through a few shopping stores across the country.
155) What distribution strategy does Kimberly’s Crown use?
A) exclusive
B) intensive
C) selective
D) inclusive
E) extensive
156) When one of the stores complains that the jewelry they’re being given is inferior to the
jewelry Kimberly sells to other stores, Kimberly experiences ________ conflict.
A) horizontal
B) multitiered
C) vertical
D) intensive
E) subjective
157) Kimberly decides to alter its distribution strategy so that its jewelry is accessible to the
public only through one distributor. The strategy they’re considering is known as ________
distribution.
A) elusive
B) extensive
C) exclusive
D) selective
E) elective
158) What mode of transport should Kimberly use to ship its goods over long distances as
quickly as possible?
A) flatcars
B) water transport
C) air transport
D) trucks
E) railroads
159) Marketing logistics 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.
160) Reverse logistics refers to the moving of products and materials from suppliers to the
factory.
161) Environmental sustainability is an important factor in supplier selection and performance
evaluation, as designing sustainable supply chains has become the right thing to do.
162) In contrast to distribution centers, storage warehouses are designed to move goods rather
than just house them.
163) Air carriers transport digital products from producer to customer via satellite, cable, phone
wire, or wireless signal.
164) Intermodal transportation refers to the combination of two or more modes of
transportation.
165) Electronic data interchange is the digital exchange of data between organizations, which
primarily is transmitted via the Internet.
166) How can a company benefit through a just–in-time logistics system?
167) What does the concept of integrated logistics management advocate?
168) Why are companies increasingly turning to third-party logistics providers (3PLs)?