Question 1

Supply Chain Management (SCM) starts before physical distribution. It involves procuring the right inputs, ________ them efficiently into finished products, and then distributing them to the right customers.

Accepted Answer

Converting inputs efficiently into finished products is a core part of Supply Chain Management, as it encompasses the transformation process from raw materials to finished goods.

Question 2

Some experts believe that achieving 50 percent of the market is the natural limit for private label brands because consumers prefer certain national brands and

Accepted Answer

The answer of Some experts believe that achieving 50 percent...

Question 3

Retailers charge for special display spaces and in-store advertising space. Retailers typically give more ________ display space to their own brands and make sure that their private label products are well stocked.

Accepted Answer

The word "prominent" means conspicuous or easily noticeable. It fits the context of retailers giving more display space and stocking their private label products well.

Question 4

You are interviewing for a job after graduation with a wholesaler. In your preparation for the interview, you discover that the wholesaler carries over 10 000 stock keeping units, maintains a sales force, makes store door deliveries, and provides management and research assistance to retailers. You are interviewing with a ________ wholesaler.

Accepted Answer

The wholesaler carries over 10 000 stock keeping units and also provides services such as a sales force, store door deliveries, and management and research assistance to retailers. This indicates that it is a full-service wholesaler.

Question 5

In which of the following functions that wholesalers perform do sales forces help manufacturers reach small business customers at a relatively low cost?

Accepted Answer

Selling and promoting is the function that wholesalers perform where sales forces help manufacturers reach small business customers at a relatively low cost. This is because wholesalers have already established relationships with these small businesses and can efficiently reach them through their sales force. Bulk breaking refers to breaking down large quantities of products into smaller lots for resale, market research involves collecting and analyzing data about the market and consumers, financing involves providing credit or loans, and buying and assortment building involves selecting products to offer for sale. None of these functions specifically involve using a sales force to reach small business customers at a low cost.

Question 6

Wholesalers-distributors have faced mounting pressure in recent years. They have had to develop appropriate strategic responses. One major drive has been to increase ________ productivity by managing their inventories and receivables better.

Accepted Answer

The sentence mentions managing inventories and receivables better, which are both assets for wholesalers-distributors. Therefore, the best choice is B.

Question 7

Products that use lower-quality ingredients, lower-cost labeling and packaging, and minimal advertising are called

Accepted Answer

Generics are products that typically use lower-quality ingredients, lower-cost labeling and packaging, and minimal advertising to keep prices low. They are often sold without a brand name or with a brand name that indicates they are a generic version.

Question 8

Integrated logistics systems (ILS), involves materials management, ________, and physical distribution, abetted by information technology.

Accepted Answer

Integrated logistics systems (ILS) involve materials management, which includes the handling and movement of physical goods, hence material flow systems are the best choice.

Question 9

As a sales representative for a major food manufacturer your largest customer has asked you to provide him with a product that meets the following definition: it must not contain any brand name, be plainly packaged, use less expensive ingredients, can use lower-quality raw products in its makeup, and does not allocate any funds for advertising and promotion. What type of product is your buyer describing that he wants from you?

Accepted Answer

The buyer is describing a generic product, which is characterized by no brand name, plain packaging, use of less expensive ingredients, potential use of lower-quality raw products, and no funds allocated for advertising and promotion.

Question 10

A storeless retailer serving a specific clientele who are entitled to buy from a list of retailers that have agreed to give discounts in return for membership represents which kind of nonstore retailing?

Accepted Answer

This scenario describes the concept of buying service nonstore retailing, where a retailer or buying service helps a specific group of customers (in this case, members) to obtain discounts from a pre-selected list of retailers.

Question 11

The company that you work for has outlined the following to its customers: On-time deliveries will be set at 95 percent; ordering and billing accuracy will be at a minimum of 98 percent; and four warehouses will be established to serve western provinces. These policies are examples of

Accepted Answer

These policies are examples of market logistics, as they directly relate to the distribution and delivery of products to meet customer demands efficiently.

Question 12

________ involves planning the infrastructure to meet demand, then implementing and controlling the physical flows of materials and final goods from points of origin to points of use, to meet customer requirements at a profit.

Accepted Answer

Market logistics involves planning, implementing, and controlling the physical flows of materials and final goods from points of origin to points of use to meet customer requirements at a profit.

Question 13

Distributors differ from retailers in a number of ways. First, distributors pay less attention to promotion, atmosphere, and location than retailers do. Second, distributor transactions are usually ________ than retail transactions. Third, the government treats distributors differently in terms of legal regulations.

Accepted Answer

Distributors typically handle larger transactions than retailers, selling products in bulk to retailers rather than individual customers.

Answer: E 
 Legal regulations for distributors can be more complicated than those for retailers, as they often deal with handling and transportation of large quantities of goods.

Question 14

Which of the following types of limited-service wholesalers serve bulk industries such as coal, lumber, and heavy equipment?

Accepted Answer

Drop shippers serve bulk industries such as coal, lumber, and heavy equipment by taking orders and having the goods shipped directly from the producer to the buyer, without handling the goods themselves.

Question 15

Electronic shopping is a type of ________.

Accepted Answer

Electronic shopping is a form of direct marketing as it involves selling goods or services directly to consumers through various electronic channels such as the internet, mobile devices, television, or mail. It eliminates the need for intermediaries such as wholesalers or retailers.

Question 16

Besides the growing power of store brands, other factors weakening national brands include the fact that

Accepted Answer

The article states that "consumers are more price sensitive" which means they are more likely to choose a cheaper store brand over a national brand.

Question 17

To maintain their power, leading brand marketers should invest in heavy and continuous ________ to bring out new brands, line extensions, features, and quality improvements.

Accepted Answer

Heavy and continuous investment in Research and Development (R&D) is essential for leading brand marketers to maintain their power by bringing out new brands, line extensions, features, and quality improvements. R&D helps a company stay ahead of its competitors and adapt to changing market trends and consumer preferences.

Question 18

Which of the functions that wholesalers perform involves taking title and bearing the cost of theft, damage, spoilage, and obsolescence?

Accepted Answer

Risk bearing is the function that involves taking title and bearing the cost of theft, damage, spoilage, and obsolescence. Wholesalers assume the risks of holding inventory in order to provide a valuable service to their customers.

Question 19

In order to better compete, Arrow Electronics, a global provider of products, services, and solutions to the electronic-component and computer-product industries has sought to strengthen its relationships with manufacturers. Which of the four ways cited in the text has Arrow embraced?

Accepted Answer

The answer of In order to better compete, Arrow Electronics,...

Question 20

A "brand" developed by a retailer and/or wholesaler that is only available in selected retail outlets is called a ________ brand.

Accepted Answer

Private label brands are developed by retailers and/or wholesalers and are only available in selected retail outlets. National brands are available in many retail outlets and are not exclusive to a specific seller. Household brands are well-known and often household names. Premium brands usually have a higher price point and are associated with luxury or high quality. Selective brands are not a commonly used term in the branding industry.

Quiz 16: Managing Retailing, Wholesaling, and Logistics