Question 1

Small businesses should view distribution costs as
A) prohibitive.
B) sunk costs.
C) an investment.
D) Two of the above are true.

Accepted Answer

Distribution costs should be viewed as an investment in getting the product or service to the customers. While they can be significant, they are necessary for the business to grow and succeed. By investing in distribution channels, small businesses can reach new markets and increase their customer base. Viewing distribution costs as a sunk cost, meaning costs that have already been incurred and cannot be recovered, would not be accurate as distribution costs are ongoing expenses. Prohibitive implies that distribution costs are too expensive to undertake, which is not necessarily true if they are viewed as an investment.

Question 2

Both the physical movement of products and the establishment of intermediary relationships to guide and support the movement of the products are included in
A) channels.
B) distribution.
C) intermediaries.
D) logistics.

Accepted Answer

The answer of Both the physical movement of products and...

Question 3

Since Love Languages has decided to sell its tutoring service on CDs through an online site as well as the traditional format of personal tutors, they are relying on
A) a direct channel of distribution.
B) an indirect channel of distribution.
C) a dual distribution channel.
D) a multiple-outlet distribution channel.

Accepted Answer

Love Languages is using both a direct (online) and indirect (personal tutors) distribution channel, making it a dual distribution strategy.

Question 4

The distinctive operating image of a product, including features such as size, shape, color or color combinations, texture, graphics, or even particular sales techniques, can be protected
A) by copyright.
B) by patent.
C) as trade dress.
D) as a registered concept.

Accepted Answer

The distinctive operating image of a product can be protected as trade dress. Trade dress includes the visual appearance of the product, such as its shape, size, color, texture, packaging, and labeling. It serves as an identifier to consumers and can be protected under trademark law. Copyright only protects original works of authorship, such as books or music. Patent protects an invention or discovery. There is no such thing as a registered concept.

Question 5

Bagels Bagels Bagels, a small breakfast bagel bakery, has expanded into sandwiches for lunch using bagels.  They are now employing a _____ product strategy.
A) one product/one market
B) one product/multiple markets
C) modified product/one market
D) modified product/multiple markets

Accepted Answer

The answer of Bagels Bagels Bagels, a small breakfast bagel...

Question 6

Buzz-Buzz Express is a small firm that sells honey bees domestically. Once purchased, the bees are flown using FedEx. Buzz-Buzz Express uses a
A) common carrier.
B) public carrier.
C) private carrier.
D) contract carrier.

Accepted Answer

The answer of Buzz-Buzz Express is a small firm that...

Question 7

Intermediaries exist because
A) they provide more efficient means of distrubtion than the product producer.
B) they are able to reach geographic areas with much less expense.
C) they have lower risk levels since they don't have ownership of the goods.
D) they specialize in products for specific customer needs.

Accepted Answer

Intermediaries exist because they can provide more efficient means of distribution than the product producer. This is because intermediaries specialize in distribution and have established networks and relationships with retailers and consumers, allowing for a more streamlined distribution process.

Question 8

How can a successfully growing firm fall into a growth trap?

Accepted Answer

The answer of How can a successfully growing firm fall...

Question 9

Will, Max and Isaac are brothers and owners of Wood Toys of Yesterday, a company specializing in handmade wood toys typical of the late 1800's.    The business had been a part-time enterprise when a national magazine did an October cover story on the company and sales rose by 200% over their normal holiday increase. Make suggestions to them for the company to survive this rapid increase in growth especially considering the nature of their business and the timing of the increase.

Accepted Answer

The answer of Will, Max and Isaac are brothers and...

Question 10

Franklin sells his product in a bricks-and-mortar store and online.  Franklin is using:
A) channel integration.
B) dual distribution.
C) intermediary replication.
D) multiple distribution.

Accepted Answer

Dual distribution refers to the strategy of selling products through two or more channels, such as both in a physical store and online. This is what Franklin is doing, so the best choice is B. Channel integration refers to the coordination of various distribution channels to create a seamless customer experience, which may or may not be applicable in this case. Intermediary replication and multiple distribution are not commonly used terms in marketing, and do not apply in this situation.

Question 11

Euginie has written a poem that she plans to print inside the greeting cards she will publish. Her work is automatically protected but Euginie should include on the back of her greeting cards
A) the symbol ©.
B) the date the work was published.
C) the name of the copyright owner's company.
D) a listing of all other copyrights held by the owner.

Accepted Answer

Including the symbol © on the back of her greeting cards will inform others that Euginie claims copyright ownership of her work.

Question 12

The three considerations in building a channel of distribution are
A) cost, coverage, and control.
B) cost, coverage, and compatibility.
C) coverage, control, and compatibility.
D) cost, control, and compatibility.

Accepted Answer

Cost, coverage, and control are the three essential considerations when building a channel of distribution. Cost refers to the monetary expenses involved in establishing and maintaining the channel, coverage refers to the extent to which the distribution channel can reach the targeted market, and control refers to the level of influence a business has over the channel partners and the distribution process. By prioritizing these three considerations, businesses can create an efficient and effective distribution strategy that meets the needs of their customers and maximizes profits.

Question 13

When Gavin sells his product to a ____, the storage function is transferred to the intermediary.
A) agents
B) brokers
C) common carriers
D) wholesalers

Accepted Answer

Wholesalers are intermediaries who purchase products from manufacturers and sell them to retailers or other businesses. In this process, they take over the storage function and hold inventory until it is sold to the final customers. Agents, brokers, and common carriers also serve as intermediaries, but they do not necessarily handle the storage function.

Question 14

A product strategy that includes a new product that is quite different from existing products
A) can be more challenging to manage.
B) is often used by small businesses.
C) will likely determine the future direction of the firm.
D) is encouraged, as long as it represents no more than half of the firm's product offerings.

Accepted Answer

Introducing a new product that is quite different from existing ones can present various challenges such as developing a new supply chain, building a new customer base, and establishing brand recognition. This can make it more challenging to manage compared to introducing a product that is an extension of an existing product line.

Question 15

The intermediary relationship in which ownership is transferred is
A) agents.
B) brokers.
C) merchant middlemen.
D) supply chain managers.

Accepted Answer

The answer of The intermediary relationship in which ownership is...

Question 16

A copyright provides protection for the duration of the creator's life, plus
A) 25 years.
B) 70 years.
C) 75 years.
D) 100 years.

Accepted Answer

A copyright provides protection for the creator's life plus 70 years. This means that after the creator's death, their works are protected for an additional 70 years before they enter the public domain.

Question 17

Erica has registered protection for 14 years that covers a new process she has designed.  Erica owns a:
A) design patent.
B) plant patent.
C) utility patent.
D) Two of the above are correct.

Accepted Answer

The fact that Erica has registered protection for a process indicates that she owns a utility patent. Both design and plant patents cover different types of inventions, but a process would fall under the category of a utility patent. Therefore, option C is the best choice.

Question 18

Love Languages is introducing an improved version of its tutoring targeted to students who want more in-depth assistance using a CD format. The company has decided to continue to offer their original tutoring package and aim the new product at the original target market; therefore, they are employing a ____ product strategy.
A) multiple products/one market
B) multiple products/multiple markets
C) modified product/one market
D) modified product/multiple markets

Accepted Answer

Love Languages is modifying their original product to offer a new tutoring package in a CD format targeted to the same market. Therefore, they are using a modified product/one market strategy.

Question 19

The activities of physically moving a product is
A) channel management.
B) distribution.
C) logistics.
D) supply chain management.

Accepted Answer

The activities of physically moving a product is referred to as logistics.

Question 20

Cooking for Collin, a small manufacturer of holiday cakes, sells its product through independent retailers and mail-order marketing. Cooking for Collin is relying on
A) a direct channel of distribution.
B) an indirect channel of distribution.
C) a dual distribution channel.
D) a multiple-outlet distribution channel.

Accepted Answer

The answer of Cooking for Collin, a small manufacturer of...

Quiz 15: Product Development and Supply Chain Management

Small businesses should view distribution costs as

Both the physical movement of products and the establishment of intermediary relationships to guide and support the movement of the products are included in

Since Love Languages has decided to sell its tutoring service on CDs through an online site as well as the traditional format of personal tutors, they are relying on

The distinctive operating image of a product, including features such as size, shape, color or color combinations, texture, graphics, or even particular sales techniques, can be protected

Bagels Bagels Bagels, a small breakfast bagel bakery, has expanded into sandwiches for lunch using bagels. They are now employing a _____ product strategy.

Buzz-Buzz Express is a small firm that sells honey bees domestically. Once purchased, the bees are flown using FedEx. Buzz-Buzz Express uses a

Intermediaries exist because

How can a successfully growing firm fall into a growth trap?

Franklin sells his product in a bricks-and-mortar store and online. Franklin is using:

Euginie has written a poem that she plans to print inside the greeting cards she will publish. Her work is automatically protected but Euginie should include on the back of her greeting cards

The three considerations in building a channel of distribution are

When Gavin sells his product to a ____, the storage function is transferred to the intermediary.

A product strategy that includes a new product that is quite different from existing products

The intermediary relationship in which ownership is transferred is

A copyright provides protection for the duration of the creator's life, plus

Erica has registered protection for 14 years that covers a new process she has designed. Erica owns a:

The activities of physically moving a product is

Cooking for Collin, a small manufacturer of holiday cakes, sells its product through independent retailers and mail-order marketing. Cooking for Collin is relying on