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Indicate whether the statement is true or false.
1. In exclusive distribution, producers and retailers cooperate closely in decisions concerning advertising and
promotion, inventory carried by the retailers, and prices.
a. True
b. False
2. Railroads control the largest share of the freight business in the United States as measured by ton-miles.
a. True
b. False
3. An agent, who connects small companies with the consumers, always takes possession of the goods as well as
the title.
a. True
b. False
4. Selective distribution helps marketers reduce total marketing costs while establishing strong working
relationships within the channel.
a. True
b. False
5. High sales volume spreads selling costs over a large number of items, generating adequate returns from direct
sales.
a. True
b. False
6. The strategy of selective distribution involves distributing a product through a limited number of retailers.
a. True
b. False
7. NikSnak, a popular potato wafers brand, is most likely to use an exclusive distribution strategy.
a. True
b. False
8. Large facilities offer economies of scale in facilities and materials handling systems; per-unit costs for these
systems decrease as volume increases.
a. True
b. False
9. Pipelines can accommodate shipments of a large number of products.
a. True
b. False
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10. The supply chain begins with the movement of finished products through the marketing channel to
customers.
a. True
b. False
11. When a producer grants exclusive rights to a wholesaler or retailer to sell its products in a specific
geographic region it practices intensive distribution.
a. True
b. False
12. An enterprise resource planning (ERP) system is a software system that consolidates data from among a
firm’s various business units.
a. True
b. False
13. A distribution warehouse holds goods for moderate to long periods in an attempt to balance supply and
demand for producers and purchasers.
a. True
b. False
14. Relatively standardized items that are also nonperishable and products with low unit costs pass through
comparatively long channels of distribution.
a. True
b. False
15. Activities specifically related to the physical movement and management of raw materials or products are called
logistics.
a. True
b. False
16. A marketing intermediary is an organization that operates between producers and consumers or business
users.
a. True
b. False
17. An example of vertical conflict within the clothing industry would be when a firm such as Jones, New York
decides to sell its line of women’s blazers directly to consumers via their website, as opposed to distributing
them via its usual wholesale channels.
a. True
b. False
18. A meat packing unit’s downstream management would oversee storage and warehousing of meat as well as
the transportation of the meat to its plant where it is processed and packed.
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b. False
19. The complete sequence of suppliers and activities that contribute to the creation and delivery of goods and
services is known as the supply chain.
a. True
b. False
20. Shippers that transport goods via water carriers incur very low costs compared with the rates for other
transportation modes.
a. True
b. False
21. Rising prices for raw materials, the increasing availability of recycling facilities, and a move toward increased
environmental sustainability have all diminished the importance of reverse channels.
a. True
b. False
22. Exclusive distribution allows greater market coverage than any other distribution strategy.
a. True
b. False
23. Horizontal conflict results from disagreements among channel members at the same level.
a. True
b. False
24. Simple Foods, a breakfast cereal brand, has two wholesalers supplying to almost 100 retailers in California.
Conflicts arising between the retailers and wholesalers within California will be referred to as horizontal
conflicts.
a. True
b. False
25. A storage warehouse assembles and redistributes goods, keeping them moving as much as possible.
a. True
b. False
26. Marketers usually adopt a dual distribution strategy either to maximize their firm’s coverage in the
marketplace or to increase the cost effectiveness of the firm’s marketing effort.
a. True
b. False
27. Direct selling is an important option for goods requiring extensive demonstrations in persuading customers
to buy.
a. True
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b. False
28. The simplest and shortest marketing channel is a direct channel.
a. True
b. False
29. A wholesaler is an intermediary that takes title to the goods it handles and then distributes these goods to
retailers, other distributors, or sometimes end consumers.
a. True
b. False
30. When a producer decides to advertise products on its website and sell them online, while continuing to
distribute products to its current retailer customer base, the decision is likely to result in horizontal channel
conflict.
a. True
b. False
31. Service firms market primarily through long distribution channels.
a. True
b. False
32. Dual distribution is the movement of products through more than one channel to reach the firm’s target
market.
a. True
b. False
33. In piggyback operations, highway trailers and containers ride on railroad flatcars, thus combining the long-
haul capacity of the train with the door-to-door flexibility of the truck.
a. True
b. False
34. Product recalls and repairs are handled through reverse channels.
a. True
b. False
35. Unitizing combines as many packages as possible into each load that moves within or outside a facility.
a. True
b. False
36. Water carriers continue to control the largest share of the freight business as measured by ton-miles.
a. True
b. False
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37. The first thing to do in selecting a marketing channel is to determine which type of channel will best meet
both the seller’s objectives and the distribution needs of customers.
a. True
b. False
38. Lands’ End products are sold through catalogs, the Internet, and Sears retail stores. The Lands’ End brand
practices dual distribution.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
39. Which of the following factors is most likely to be associated with a short marketing channel?
a. The products require little or no technical knowledge and servicing.
b. Manufacturer lacks adequate resources to perform channel functions.
c. The products are perishable.
d. Manufacturer serves a geographically dispersed potential trade area.
40. Which of the following best represents a set of activities that move products within factories, warehouses,
and transportation terminals?
a. Materials handling system
b. Order processing system
c. Vendor-managed inventory system
d. Package tracking system
41. Technology is being utilized by retail operations to reduce the amount of time to track inventory and record
shipments. Companies such as Target and Walmart now require suppliers to attach a tiny chip with
identification information to pallets and cases of products. This technology is called:
a. RFID.
b. ERP.
c. 3PL.
d. PCHIP.
42. Champagne lovers are familiar with the highly respected, expensive Veuve Clicquot brand, but as the
product’s marketing manager, you’d like your champagne to be better known among wine drinkers. Which level
of distribution intensity makes the most sense for Veuve Clicquot at this time?
a. Digital distribution, where the product is only available through the company’s exclusive website
b. Intensive distribution, where the product is available for sale at all restaurants, bars, liquor stores,
grocery stores, and discount retailers
c. Selective distribution, where the product is available at better restaurants, grocery stores, and liquor stores
d. Exclusive distribution, where the product is available at only high-end liquor stores and restaurants
43. Which of the following is true of pipelines as a transportation alternative?
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a. They provide the most efficient way for moving bulky commodities over long distances.
b. They control the largest share of the freight business as measured by ton-miles.
c. They can accommodate shipments of only a small number of products.
d. They represent the fastest method of transportation of products especially crude oil.
44. Channels designed to return goods to their producers are called _____ channels.
a. reserve
b. direct
c. primary
d. reverse
45. Which of the following modes of transportation offers the most flexibility in handling?
a. Pipelines
b. Air freight
c. Water freight
d. Motor carriers
46. You’re the marketing director for a company that manufactures customized mining equipment used to
extract fairly rare precious metals like iridium, palladium, and rhodium from the earth. You have chosen to
create a fairly short distribution channel because:
a. a long channel would diminish your profit margins without offering any benefits.
b. there are so few customers for your product that you can manage your own sales efforts within the
company.
c. it is challenging to deliver the kind of highly specialized equipment you manufacture to remote
locations.
d. your customers are located all over the world.
47. Oh, no! The place where you’ve been holding your company’s novelty screen-printed t-shirts while waiting
to be shipped out to fill incoming orders is going out of business. As the production manager, it’s up to you to
find a new facility to use instead. Of the following, which seems like the best fit for your needs?
a. An automated warehouse where technology is used to monitor and redistribute a wide variety of goods
b. A break-bulk center where large shipments are broken down into smaller shipments for delivery to
customers
c. A distribution warehouse where goods are assembled and redistributed
d. A storage warehouse where goods can be stored for any length of time until needed by customers
48. Lush, a cosmetics company that makes handmade beauty products, gives its customers a free item when they
return used Lush containers. This offer is aimed at promoting recycling of the containers. The channel used by
the consumers to return used containers is referred to as a:
a. primary channel.
b. reverse channel.
c. rudimentary channel.
d. reserve channel.
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49. Your company’s leathergoods are very well received in the marketplace. But you still have not been able to
resolve the issue of packaging. These bags and briefcases have to be packaged substantially so your customer
receives a flawless product, but you have to come up with a solution that will allow the consumer to recycle all
that packaging in some way. You decide to solicit suggestions from the staff on how to either implement a
recycling program or devise some other packaging methodology that is environmentally friendly. What
marketing channel are you managing? Select the best answer from the choices below.
a. Reverse channel
b. Dual channel
c. Logistic channel
d. Distribution channel
e. Direct channel
50. Which of the following distribution strategies seeks to distribute a product through a single wholesaler or
retailer in a specific geographic region?
a. Exclusive distribution
b. Associative distribution
c. Selective distribution
d. Intensive distribution
51. Tim works for an ice-cream manufacturer. Tim’s department handles the supplies of dairy, nuts, and
sweeteners that go into the daily production. In addition, they make sure that the suppliers give them good
quality products at an optimal price as the freshness of these products ensures the quality of the company’s ice
cream. Tim is most likely involved with:
a. horizontal integration.
b. upstream management.
c. forward integration.
d. reverse management.
52. Which of the following offers the fastest mode of transportation?
a. Water freight
b. Pipelines
c. Air freight
d. Railroads
53. As the marketing director for a tablet computer manufacturer, you’re aware that some consumers still need a
lot of help and information before making a decision to buy a tablet, while others are familiar with tablet
computers and know exactly what they’re looking for in a product. With this objective in mind, which
distribution channel makes the most sense for marketing your products?
a. Dual distribution, involving direct online sales and intermediary sales through electronics retailers
b. A marketing intermediary, specifically electronics retailers
c. A direct channel, specifically a company-run e-commerce website
d. A reverse channel involving recycling capabilities
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54. You’re responsible for keeping track of inventory for a huge, national chain of bookstores, which is
challenging since thousands of products are constantly being delivered, stocked, sold, and transferred through
your stores. So, if you could employ any supply chain management system to make your job easier, which of
the following would you choose?
a. RFID, a tool that requires placing a tiny tracking chip on all materials
b. ERP, an integrated software that consolidates data from all of your stores
c. Logistical cost control, a method of evaluating how to add value for your customers through logistical
changes
d. Value chain management, a means of managing the complete sequence of suppliers and activities that
contribute to the delivery of goods
55. A direct channel is the simplest and shortest marketing channel, but most channels involve at least one
intermediary. Which statement below describes a marketing intermediary?
a. Intermediaries develop networks of independent representatives who sell directly to consumers.
b. Wholesalers and retailers are both marketing intermediaries.
c. Marketing intermediaries do not take title to the goods they handle.
d. Service firms market primarily through long intermediary channels.
e. Marketing through an intermediary is usually inefficient, expensive, and time-consuming.
56. You’re finding your new job as the marketing manager for highly specialized medical equipment to be very
challenging. Relatively few medical practices and hospitals across the country need your product, and it’s tough
to determine who the decision makers are. Which type of distribution channel will work best for your
objectives, and why?
a. Due to the wide geographic range of your potential customers, you will need to set up a long distribution
channel with many intermediaries who can facilitate the exchange process.
b. Because you are selling in the B2B environment with relatively few business purchasers, a short
distribution channel works best for your needs.
c. Since you are selling physical products that need to be warehoused and delivered, you will need a long
distribution channel with multiple logistics intermediaries.
d. Because of the challenges involved in identifying potential customers, you will need to engage the
services of several sales and marketing intermediaries who can assist you.
57. You handle transportation issues for a chain of department stores selling clothing, furniture, and home lighting
fixtures. The primary mode of transport you rely on is:
a. Railroads
b. Motor carriers
c. Water carriers
d. Air freight
e. Common carriers
58. Sales of Kathleen’s baked goods have begun to increase dramatically. She is selling online, but many
customers in her core region are asking about local outlets where they can make immediate purchases. Kathleen
has no desire to open and operate a retail outlet herself, but she also does not want her product sold beside a
generic cookie in a supermarket. What type of distribution will Kathleen investigate for her premium baked
goods?
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a. Intensive distribution
b. Extensive distribution
c. Direct distribution
d. Selective distribution
e. Exclusive distribution
59. As the marketing director for Adobe, a company that makes software for design and business professionals,
it’s your job to get your company’s software into the hands of millions of customers the world over. Which type
of distribution channel will work best for your objectives, and why?
a. Because your objective is to sell to millions of customers, you will need to engage the services of one or
two intermediaries who can facilitate the exchange process.
b. Although you are selling to millions of customers, you are selling directly to individuals in the B2B
environment so a short distribution channel, facilitated by online sales and delivery, works best for your needs.
c. Since your product is software, which is not a physical product that needs to be warehoused or
delivered, you do not need to employ a logistics intermediary and therefore do not need a distribution channel.
d. Because your objective is to sell to millions of customers, you will need to engage the services of
numerous sales and marketing intermediaries who can assist you in reaching that kind of sales volume.
60. You’re the CEO of a national chain of carpet, flooring, and tile stores. Your company sources hundreds of
finished products from a wide array of suppliers, sells them through your stores, and then contracts with
independent installers to deliver and install the products in homes and businesses all across the country. Lately
you’ve been wondering if you could improve your company’s financial performance by examining all aspects of
this system. Which of the following do you think would be the most useful tool for this purpose?
a. CRM, a software system that allows you to better track your interactions with your customers
b. ERP, an integrated software that consolidates data from all of your stores
c. Logistical cost control, a method of evaluating how to add value for your customers through logistical
changes
d. RFID, a tool that requires placing a tiny tracking chip on all inventoried items
61. You’re the production manager for a company that manufactures clothing, and you oversee activities in a
wide range of departments from cutting and stitching to warehousing and shipping. Maintaining a steady flow
of goods through production is essential, so if you could employ any supply chain management system to make
your job easier, which of the following would you choose?
a. RFID, a tool that requires placing a tiny tracking chip on all materials
b. ERP, an integrated software that consolidates sequencing and scheduling data from all units
c. Logistical cost control, a method of evaluating how to add value for your customers through logistical
changes
d. Value chain management, a means of managing the complete sequence of suppliers and activities that
contribute to the creation and delivery of goods
62. For more than a century, the Chanel brand has been synonymous with high fashion and exceptional quality.
Women everywhere love your apparel, accessories, cosmetics, and fragrances. From your point of view, which
factors have the greatest impact on the distribution channel strategy you’ve chosen?
a. Organizational factors, namely the volume of sales and brand recognition enjoyed by your organization,
mean that Chanel can employ a dual distribution approach, selling directly and through intermediaries.
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b. Market factors, especially the high demand for your company’s products, enable Chanel to bypass
intermediaries and sell directly to consumers.
c. Product factors, especially the diverse range of Chanel products, require your company to employ a long
distribution channel involving multiple intermediaries.
d. Competitive factors, such as Chanel’s ability to match any other fashion, accessory, and cosmetics
brand, allow your organization to demand exclusivity agreements with its wholesaler.
63. In your new job, you will be responsible for upstream management of the firm’s supply chain. This means you will be
managing all of the following except:
a. outbound logistics
b. inbound logistics
c. raw materials
d. warehouse facilities
e. storage facilities
64. The holiday season is coming up soon, and as usual you’re thinking about delivering the Christmas trees
grown on your family’s tree farm to locations throughout the region. Ultimately, you want to make your
beautiful trees available to happy consumers. As the marketing manager for the farm, you’ve set up a
distribution channel involving several intermediaries for a variety of reasons except:
a. it‘s too expensive to own your own fleet of delivery trucks that are only used about eight weeks of the
year.
b. intermediaries make it easier for you to do business with a broader range of retail outlets, such as
grocery stores and independent sellers, each with their own purchasing system.
c. intermediaries allow you to develop and maintain more personal relationships with your customers.
d. intermediaries offer advantages that allow you to sell more and maximize profits, despite the money you
invest in using them.
65. On your first day as the new operations manager for a major toy manufacturer, you take a look at how raw
materials are handled. The manufacturing plant keeps close to 500,000 types of tiny parts on hand, ready for
assembly. To ensure that workers are able to easily locate, inventory, and retrieve these parts, as well as finished
goods, you’ve decided the company needs ______ to keep production at its peak.
a. a cold-storage warehouse
b. a distribution warehouse
c. an automated warehouse
d. a storage warehouse
66. When the same branded product is carried in competing retail pharmacies, discount houses, department
stores, and convenience stores, the marketing channel conflict that can result is referred to as:
a. cross-channel conflict.
b. vertical conflict.
c. exclusive conflict.
d. horizontal conflict.
67. Which of the following is a marketing intermediary who may or may not take possession of the goods but
never takes title?
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a. Sales agent
b. Wholesaler
c. Retailer
d. Industrial distributor
68. As the marketing director for NailPop Nail Polish, you’ve been instrumental in the company’s success thus
far. And the future looks even brighter because the company’s product developers have come up with a new
color-changing nail polish, and you know it’s going to be huge! You want to make sure this product is available
to professional nail salons as well as individual consumers. Which type of distribution channel will work best
for your objectives, and why?
a. Because nail polish is an intangible product, a short distribution channel will work best for you.
b. Effectively marketing a product that’s sold in both the B2B and B2C markets is complicated, so it is
likely that you will need a number of different intermediaries in a long distribution channel.
c. Because you are very clear on who you are moving your product to, you can use a short distribution
channel without any intermediaries.
d. Whenever you introduce a new product into the market, you always need to set up a long distribution
channel until consumers are more familiar with the product.
69. You’ve just landed a new job as the chief marketing officer for John Deere, manufacturer of agricultural,
construction, and gardening equipment. You want to make sure you’re using the best distribution channel
strategy for reaching both B2B and B2C sales. In evaluating your company’s needs, what do you decide is the
best approach?
a. Market factors, especially the fact that you’re marketing to two very different groups, suggest that dual
distribution is the best strategy.
b. Organizational factors, particularly the fact that John Deere is one of the premier equipment
manufacturers with vast resources, enable you to market all of your products directly to your customers.
c. Product factors, especially the fact that you’re marketing to two very different groups, suggest that
distributing through intermediaries is the best means of reaching both types of customers.
d. Product factors, especially the large size of all of your products, suggest that distributing through
intermediaries is the best means of marketing your goods.
70. Sysco Foods provides thousands of food service products to restaurants, hotels, hospitals, and schools.
Sysco purchases their products from manufacturers such as Hormel and then markets them to their business
customers. Sysco Foods is known as a(n):
a. wholesaler.
b. retailer.
c. producer.
d. logistics specialist.
71. Which of the following distribution strategies seeks to distribute a product through all available retailers in a
trade area?
a. Exclusive distribution
b. Associative distribution
c. Selective distribution
d. Intensive distribution
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72. Smartwatches seem mainstream to you since you’ve been marketing them for three years now, but you’re
aware that some consumers still need a lot of help and information before making a decision whether to buy a
smartwatch and, if so, which model to buy. With this in mind, you can see that ____ makes the most sense for
promoting your company’s smartwatches.
a. a marketing intermediary, specifically one that wholesales to retailers, such as electronics and
department stores
b. a reverse channel involving recycling capabilities
c. a direct channel, specifically a company-run e-commerce website
d. dual distribution, involving direct online sales and intermediary sales through retailers, including
electronics and department stores
73. More and more consumers are falling in love with your company’s ice cream bars, and this coming summer
should be your best season yet! These tasty treats will be sold in grocery stores, convenience stores, and even
several major theme parks across the country. As the marketing manager for the product, you’ve set up a fairly
long distribution channel mainly because:
a. it’s the only way your business is going to grow.
b. you’d prefer to outsource the sales function so you don’t have to deal with that aspect of the business.
c. it makes the most sense for your B2B sales environment that caters to a few key purchasers.
d. it’s too expensive to own your own fleet of refrigerated warehouses and delivery trucks.
74. Direct selling is a marketing channel that moves goods directly from producer to the:
a. retail storage warehouse.
b. channel captain.
c. marketing intermediary.
d. ultimate consumer or business purchaser.
75. Conflicts resulting from disagreements among channel members at the same level, such as two or more
wholesalers or two or more retailers, or among marketing intermediaries of the same type are called _____
conflicts.
a. exclusive
b. vertical
c. horizontal
d. cross-channel
76. Alva, a fashion house specializing in designer bags, sells its products only through a limited number of
boutiques worldwide. This is an example of:
a. intensive distribution.
b. associative distribution.
c. selective distribution.
d. discriminative distribution.
77. AAA Insurance Company specializes in property and casualty insurance for individuals such as automobile
and home insurance. The company has their own branch offices across the United States with representatives
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who only market AAA insurance policies. In addition, consumers can get quotes and purchase via the AAA
web portal. AAA Insurance also works with independent insurance agents as a way to maximize their coverage
in the marketplace. AAA insurance is utilizing ______.
a. dual distribution
b. reverse channels
c. captive channel system
d. direct channel
78. You’re the production manager for Logan Home Builders, and you’ve just come from a disturbing meeting
with the executive team. The company’s president informed everyone that expenses are skyrocketing and profits
are shrinking because there’s a limit to how much the company can charge for new homes. You’d like to help
solve the problem. Which supply chain management system might you employ to help Logan restore
profitability?
a. RFID, a tool that requires placing a tiny tracking chip on all materials
b. ERP, an integrated software that consolidates sequencing and scheduling data from all units
c. Logistical cost control, a method of evaluating how to reduce costs and add value for your customers
through logistical changes
d. Supply chain management, a means of managing the complete sequence of suppliers and activities that
contribute to the creation and delivery of goods
79. Organically grown orchard fruits, such as apples, plums, and pears, are the core of your business. You want
to make it easy for consumers in your part of the country to obtain your company’s products when they’re fresh
and delicious. With this objective in mind, which distribution channel would work best for your produce?
a. Dual distribution, involving direct online sales and intermediary sales through a distributor
b. A marketing intermediary, specifically a produce distributor
c. A direct channel, specifically a company-run e-commerce website
d. A direct channel, specifically open-air markets across the tri-state region
80. Your first exposure to channel conflict came when you decided to offer your handmade soap through your own
website in addition to the skin care boutiques that carry it. The retailers lost no time complaining to your sales
representatives. You were involved in ________conflict.
a. Vertical
b. Horizontal
c. Gray market
d. Legal
e. Positioning
81. Water is an essential element for human survival. That’s one reason why the makers of Smartwater want to
make their product available to as many people as possible. Which level of distribution intensity makes the most
sense for Smartwater?
a. Intensive distribution, where the product is available for sale in as many retail outlets as possible,
including grocery stores, convenience stores, drugstores, mini-marts, and vending machines
b. Selective distribution, where the product is available in only a limited number of retailers to help protect
the company’s brand image, such as select grocery stores and convenience stores
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c. Exclusive distribution, where the product is available at only a very limited number of retailers to
promote the image of exclusivity and prestige, such as one grocery store like Kroger
d. Digital distribution, where the product is only available through online retailers, such as Amazon.com
82. Which of the following modes of transportation controls the largest share of the freight business as measured
by ton-miles?
a. Railroads
b. Water carriers
c. Motor carriers
d. Pipelines
83. Which of the following modes of transportation is the costliest?
a. Railroads
b. Air freight
c. Water freight
d. Pipelines
84. You’re proud to be a marketer for Nike, one of the leading sporting goods and apparel manufacturers in the
world. Your company’s products are used by professional and amateur athletes alike. How would you explain
your company’s distribution channel strategy?
a. Market factors, especially the high demand for your company’s products, enable Nike to bypass
intermediaries and sell directly to consumers.
b. Organizational factors, namely the volume of sales and brand recognition enjoyed by your organization,
mean that Nike can employ a dual distribution approach: Nike products can be sold directly to consumers
through bricks-and-mortar stores and the company’s own website, as well as through intermediaries selling in
real and online environments.
c. Product factors, especially the fact that Nike products are non-perishable, allow Nike to employ a long
distribution channel involving multiple intermediaries.
d. Competitive factors, such as Nike’s ability to go head-to-head with other sporting goods and apparel
manufacturers, enable your company to demand exclusivity agreements with its wholesaler.
85. You’re the production manager for Blue Ribbon Bakery, and you’re responsible for managing the inventory
of all of the flour, eggs, milk, butter, and other raw materials that go into the company’s baked goods. Storing all
of these raw materials, some of which require refrigeration, can get expensive so you don’t like to go overboard
on ordering them, but on the other hand you have to make sure the bakery workers have what they need. Which
of the following methods of inventory control do you think will work best at Blue Ribbon?
a. Stock two days’ worth of raw materials, and only re-order when the current inventory has been used up
b. Stock only as much raw material as you expect to use in the next three working days to ensure workers
have just what they need, and closely monitor the flow of incoming materials to ensure you always have three
days’ worth
c. Stock as much raw material as you expect to use in the next two weeks to ensure workers have what
they need plus a little more
d. Stock as much raw material as possible to ensure that workers always have more than enough to work
with
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86. Which of the following modes of transportation is typically associated with high frequency of shipment?
a. Pipelines
b. Railroads
c. Water freight
d. Air freight
87. Which of the following is NOT a common function of an intermediary in a distribution channel?
a. Cutting the costs of buying and selling to multiple customers
b. Increasing return on investment and profit margins
c. Providing cost-effective sales and marketing services
d. Reducing the costs of storing and delivering goods
88. Which of the following components in the supply chain of a manufacturing company are most concerned
with safety?
a. Warehousing and storage, production
b. Production, inbound logistics, finished product storage
c. Warehousing and storage, production, finished product storage
d. Inbound and outbound logistics, production
89. As the production manager for Toyota’s Georgetown, Kentucky, manufacturing plant, you’re responsible for
managing the inventory of all of the parts and components that go into every vehicle made there. It’s a tough
balancing act because you have to make sure your workers have what they need but you also have to minimize
the costs associated with storing all of these unassembled components. Which of the following methods of
inventory control do you think will work best for your needs?
a. Keep as many components on hand as possible to ensure that workers always have an extensive
selection of materials to work with
b. Keep as many components on hand as you expect to use in the next month to ensure workers have what
they need plus a little extra
c. Keep as many components on hand as you expect to use in the immediate future to ensure workers have
just as much as they need, and closely monitor the flow of incoming materials to replace what’s used before you
run out of anything
d. Keep as few components on hand as possible, and only re-order components when the current inventory
has been used
90. You’d like to own your own business, and you love to work with your hands, preferably outdoors. That’s
why a lawn and garden maintenance business is the perfect match for your abilities and interests, and you’re
ready to start! Which type of distribution channel will work best for launching your new service business, and
why?
a. Due to the concentrated geographic location of your potential customers, you will only need one
intermediary in your distribution channel who can facilitate the exchange process.
b. You’d like to establish and maintain personal relationships with your clients, so you should set up a short
distribution channel without intermediaries.
c. Because of the challenges involved in identifying customers who actually need your lawn care services,
you will need to engage the services of several sales and marketing intermediaries who can assist you.
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d. Because you are marketing your services in the B2B environment, a short distribution channel works
best for your new business.
91. Jesse would never have thought that his own trademarked children’s toys would be flooding a parallel
market and competing against him. Now he needs to contact his attorney to see what remedy he has in order to
mitigate his damages. What kind of marketing channel conflict is Jesse experiencing?
Select the best answer from the choices below.
a. horizontal conflict
b. dual conflict
c. marketing channel conflict
d. gray market conflict
e. vertical conflict
92. Which of the following is NOT typically moved through a short distribution channel?
a. Heavy-duty construction equipment
b. Manicures and pedicures
c. Pediatric healthcare
d. Imported women’s shoes
93. The number of intermediaries through which a manufacturer distributes its goods in a particular market is
referred to as _____.
a. distribution probability
b. distribution inertia
c. distribution intensity
d. distribution utility
94. The CEO of your company, Blue Ribbon Bakeries, has asked you to re-examine your distribution channel,
just to make sure you’re using the best possible methods. As the firm’s VP of marketing, your objective is to get
your firm’s breads, rolls, and other baked goods onto grocery store shelves throughout the South as quickly as
possible, while they’re still perfectly fresh. How do you justify your strategy to your boss?
a. Market factors, especially the fact that you’re marketing to end-users, suggest that you should employ
multiple distribution channels to maximize sales.
b. Organizational factors, particularly the modest size of your company, require you to employ a dual
distribution strategy.
c. Product factors, especially the need to quickly deliver your products to retailers across a large region,
require you to use a specialized grocery distributor.
d. Competitive factors, such as the number of common products you produce, indicate that distributing
through a wholesaler is the best means of marketing your goods.
95. Made in Switzerland, Patek Philippe watches retail for five and six figures and have developed a cult
following among timepiece connoisseurs. Which level of distribution intensity makes the most sense for Patek
Philippe?
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Class:
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a. Intensive distribution, where the product is available for sale in as many retail outlets as possible,
including all department stores and jewelry stores
b. Selective distribution, where the product is available in only a limited number of retailers to help protect
the company’s brand image, such as select department stores and jewelry stores
c. Exclusive distribution, where the product is available at only a very limited number of retailers to
promote the image of exclusivity and prestige, such as independent jewelry stores
d. Digital distribution, where the product is only available through online retailers, such as Amazon.com
96. _____ refers to the movement of products through more than one channel to reach the firm’s target market.
a. Direct channeling
b. Dual distribution
c. Selective channeling
d. Exclusive distribution
97. Several years ago, in order to help your spouse, who is a fine artist, you invented an inventory tracking
software for artists. Now you want to market this software to other artists, even though you recognize that the
demand for such a product will always be limited and that finding customers will be difficult. Which type of
distribution channel will work best for your objectives, and why?
a. When your product is software, you cannot use any intermediaries, thus you will have an extremely
short distribution channel.
b. Because of the challenges involved in identifying potential customers, you will be forced to engage the
services of several sales and marketing intermediaries who can assist you.
c. Due to the wide geographic range of your potential customers, you will need to set up a long distribution
channel with many intermediaries who can facilitate the exchange process.
d. Because you are selling in the B2B environment with relatively few business purchasers, a short
distribution channel works best for your needs.
98. Which of the following is NOT typically moved through a long distribution channel?
a. Video game consoles
b. Upholstery fabrics
c. Veterinary care
d. Imported leather goods
99. Which of the following types of services involves an intermodal coordination system between air carriers
and water carriers?
a. Birdyback service
b. Piggyback service
c. Fishyback service
d. Horseback service
100. Out of the icy waters of southern Alaska, you cultivate and catch salmon and other fish known to the
Pacific. You want consumers in western Canada and the Pacific Northwest to experience your company’s
products when they’re fresh and delicious. With this objective in mind, you feel that _____ would work best for
your fish.