Question 1

When determining the number of channel members to use at each level, three strategies are availableintensive, exclusive, and ________ distribution.
A)multiple
B)selective
C)international
D)direct
E)extensive

Accepted Answer

Selective distribution is the best choice because it allows for greater control over the distribution process and ensures that the product is only sold through a limited number of trusted and qualified channel members. This approach is ideal for products with a premium positioning or those that require specialized knowledge and support. Intensive distribution can lead to oversaturation of the market, while exclusive distribution limits the number of outlets available for customers to purchase the product.

Question 2

Which of the following is NOT a function of a point-of-sale (POS) system?
A)collecting sales data
B)connecting directly into a store's inventory-control system
C)evaluating bids from potential suppliers
D)collecting data on returns and transfers to other stores
E)automatically sending orders to suppliers

Accepted Answer

Evaluating bids from potential suppliers is not a function of a point-of-sale system. POS systems are designed to primarily handle transactions at the point of sale, including collecting sales data, connecting to inventory control systems, tracking returns and transfers, and ordering items from suppliers.

Question 3

Through the use of ________, a company is able to know exactly where a product is located within the distribution channel.
A)ERP
B)RFID
C)PRM
D)VMS
E)JIT

Accepted Answer

RFID (Radio Frequency Identification) technology allows for the tracking and monitoring of products within the distribution channel, providing real-time information on their location and movement.

Question 4

Which of the following is the final stop in the distribution channel in which organizations sell goods and services to consumers for their personal use?
A)franchising
B)retailing
C)brokering
D)wholesaling

Accepted Answer

Retailing is the final stop in the distribution channel in which organizations sell goods and services to consumers for their personal use. Franchising, brokering, and wholesaling can all be part of the distribution process, but they do not involve selling directly to consumers for personal use.

Question 5

Physical distribution activities include all of the following EXCEPT which one?
A)order processing
B)warehousing
C)materials handling
D)transportation
E)order getting

Accepted Answer

Order getting refers to the process of identifying and attracting potential customers, which is not a physical distribution activity. The other options, including order processing, warehousing, materials handling, and transportation, all involve physical distribution activities.

Question 6

Burger King, Holiday Inn, Avis, and H&R Block tax service are all franchises, which means they are also members of a(n) ________ vertical marketing system (VMS).
A)administered
B)conventional
C)corporate
D)horizontal
E)contractual

Accepted Answer

Franchises are part of a contractual vertical marketing system, where the franchisee (individual owner) has to follow certain rules and regulations set by the franchisor (parent company) in exchange for the right to use the established brand, products, and services.

Question 7

Which type of distribution means limiting distribution of a product to a single outlet in a particular region?
A)exclusive
B)intensive
C)selective
D)independent
E)insourced

Accepted Answer

Exclusive distribution means that a company limits the distribution of their product to a single outlet in a particular region. This strategy is often used for premium or luxury products, where the company wants to maintain a high level of control over how the product is sold and marketed to consumers. It can help to build a strong brand image and increase perceived value.

Question 8

Which of the following is the process of designing, managing, and improving the movement of products through the supply chain?
A)logistics
B)warehousing
C)materials handling
D)inventory management
E)distribution strategy

Accepted Answer

Logistics involves the overall management and coordination of the movement of products from the point of origin to the point of consumption, including transportation, warehousing, and inventory management. Materials handling refers specifically to the physical movement of goods within a facility, while inventory management involves managing the levels and locations of inventory. Distribution strategy refers to the overall approach a company takes to delivering its products to customers.

Question 9

According to the ________ hypothesis, new retailing forms often begin as low-margin, low-price, low-status operations to challenge established retailers, then become successful, and eventually take the place of the established retailers they had challenged.
A)agent
B)broker
C)wheel-of-retailing
D)warehousing
E)retail life cycle

Accepted Answer

The correct answer is the "wheel-of-retailing" hypothesis, which describes a cycle where new retail formats start with low prices and margins, grow in popularity and status, and eventually replace the established retailers they initially challenged.

Question 10

Which of the following do manufacturers typically NOT use as a factor in deciding which mode of transportation to use for a product?
A)dependability
B)cost
C)accessibility
D)responsiveness
E)traceability

Accepted Answer

The answer of Which of the following do manufacturers typically...

Question 11

Which of the following is another name for the channel leader?
A)materials expert
B)distribution facilitator
C)franchiser
D)channel captain
E)logistics leader

Accepted Answer

The channel leader is also commonly known as the channel captain, as they are responsible for leading and coordinating the various members of the distribution channel. The other options are not accurate synonyms for the channel leader.

Question 12

To reduce inventory management costs, many companies use a system called ________, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation.
A)just in time (JIT)
B)supply chain management
C)value chain management
D)logistics management
E)enterprise resource planning (ERP)

Accepted Answer

Just in time (JIT) involves carrying small inventories and ordering new inventory only as needed, which can significantly reduce inventory management costs. Supply chain management, value chain management, logistics management, and enterprise resource planning (ERP) can all contribute to more efficient inventory management, but do not necessarily involve carrying small inventories as a key component.

Question 13

Which of the following is a logistics activity that involves developing and implementing a process to ensure the firm always has sufficient goods available to meet customers' demands--no more and no less?
A)materials handling
B)inventory control
C)supply chain supervision
D)order processing
E)distribution implementation

Accepted Answer

Inventory control involves managing the level of inventory to ensure that the firm always has enough goods to meet customer demand while minimizing excess inventory. This process involves developing and implementing systems to track inventory levels, forecasting demand, and ordering new inventory when needed.

Question 14

Marketing logistics involves which of the following types of distribution flows?
A)outbound and inbound only
B)outbound, inbound, and reverse
C)outbound and reverse only
D)inbound and reverse only
E)outbound only

Accepted Answer

Marketing logistics involves outbound flow (from the manufacturer/supplier to the customer), inbound flow (from the suppliers to the manufacturer), and reverse flow (from the customer back to the manufacturer/supplier for returns, repairs, or recycling). Hence, option B is the best answer, which includes all three types of distribution flows.

Question 15

In the ________ stage of the retail life cycle, the retailer often is an aggressive entrepreneur who takes a unique approach to doing business by creating a differential advantage, such as competing on the basis of low price, offering a distinctive assortment, or using a different way to distribute products.
A)expansion
B)introduction
C)extension
D)maturity
E)growth

Accepted Answer

The introduction stage of the retail life cycle is characterized by the entry of new retailers who are often aggressive entrepreneurs trying to establish a unique approach to doing business. They may differentiate themselves by offering lower prices, a distinctive assortment, or a unique distribution method. This stage is also marked by high financial investment and risk.

Question 16

The difference between distribution centers and storage warehouses is that distribution centers are designed to ________.
A)have greater capacity
B)store goods for longer periods
C)perform other functions, such as breaking bulk
D)primarily be owned by the manufacturer
E)be automated

Accepted Answer

Distribution centers are not just designed for storage, but also for performing other functions such as breaking bulk, cross-docking, and value-added services. Storage warehouses, on the other hand, are primarily designed for storing goods for longer periods, without necessarily performing any additional functions.

Question 17

In a ________, two or more companies at the same channel level join together to develop a new marketing opportunity.
A)franchise
B)corporate VMS
C)horizontal marketing system
D)multiple distribution system
E)conventional marketing system

Accepted Answer

In a horizontal marketing system, companies at the same channel level collaborate to create a new marketing opportunity. This can include companies within the same industry or even competitors, working together to reach a common goal.

Question 18

The ________ is a way to categorize retail operations by the conditions they face at different points in their existence.
A)product life cycle
B)retail life cycle
C)pyramid scheme
D)merchandise mix
E)retail placement theory

Accepted Answer

The retail life cycle is a way to categorize retail operations by the conditions they face at different points in their existence, including the introductory phase, growth phase, maturity phase, and decline phase. This model can help retailers understand the challenges and opportunities they may face as they navigate through different stages of their business.

Question 19

Shoplifting, sweethearting, and retail borrowing are all problems that contribute to ________.
A)off-price retailing
B)shrinkage
C)pyramid schemes
D)understored trade areas
E)pop-up retailing

Accepted Answer

Shrinkage refers to the loss of inventory due to various reasons including theft by customers (shoplifting), theft by employees (sweethearting), or borrowing by employees (retail borrowing). This loss of inventory can lead to financial losses for retailers and contributes to the problem of shrinkage. The other options are not related to the given problems.

Question 20

When two or more separately owned retail firms combine, a(n) ________ has occurred.
A)downturn
B)merger
C)expansion
D)shrinkage
E)niche strategy

Accepted Answer

A merger is a type of combination that occurs when two or more separately owned retail firms combine. This is different from an expansion, which involves a single firm increasing its own operations, and a niche strategy, which involves targeting a specific market segment rather than combining with another firm. Downturn and shrinkage both refer to negative trends for a business, and are not related to combining with other firms.

Quiz 12: Deliver the Value Through Supply Chain Management, Channels of Distribution, and Logistics

When determining the number of channel members to use at each level, three strategies are availableintensive, exclusive, and ________ distribution.

Which of the following is NOT a function of a point-of-sale (POS) system?

Through the use of ________, a company is able to know exactly where a product is located within the distribution channel.

Which of the following is the final stop in the distribution channel in which organizations sell goods and services to consumers for their personal use?

Physical distribution activities include all of the following EXCEPT which one?

Burger King, Holiday Inn, Avis, and H&R Block tax service are all franchises, which means they are also members of a(n) ________ vertical marketing system (VMS) .

Which type of distribution means limiting distribution of a product to a single outlet in a particular region?

Which of the following is the process of designing, managing, and improving the movement of products through the supply chain?

According to the ________ hypothesis, new retailing forms often begin as low-margin, low-price, low-status operations to challenge established retailers, then become successful, and eventually take the place of the established retailers they had challenged.

Which of the following do manufacturers typically NOT use as a factor in deciding which mode of transportation to use for a product?

Which of the following is another name for the channel leader?

To reduce inventory management costs, many companies use a system called ________, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation.

Which of the following is a logistics activity that involves developing and implementing a process to ensure the firm always has sufficient goods available to meet customers' demands--no more and no less?

Marketing logistics involves which of the following types of distribution flows?

The difference between distribution centers and storage warehouses is that distribution centers are designed to ________.

In a ________, two or more companies at the same channel level join together to develop a new marketing opportunity.

The ________ is a way to categorize retail operations by the conditions they face at different points in their existence.

Shoplifting, sweethearting, and retail borrowing are all problems that contribute to ________.

When two or more separately owned retail firms combine, a(n) ________ has occurred.