Principles of Marketing, 17e (Kotler/Armstrong)

Chapter 12 Marketing Channels: Delivering Customer Value

1) Producing a product or service and making it available to buyers requires building

relationships not only with customers but also with key suppliers and resellers in the company's
________.
A) upstream partnerships
B) marketing channels
C) inventory providers
D) supply chain
E) downstream partnerships

2) The sets of firms that supply companies with the raw materials, components, parts,
information, finances, and expertise needed to create products or services are known as
________.
A) retailers
B) upstream partners
C) distributors
D) downstream partners
E) distribution channels

3) Which of the following terms refers to the wholesalers and retailers that form a vital link
between the firm and its customers?
A) factory-supply networks
B) downstream partners
C) resource banks
D) upstream partners
E) supply channels

4) The term supply chain is considered limited because it ________.

A) ignores the make-and-sell aspect of the market
B) suggests that planning begins with raw materials and factory capacity
C) takes a step-by-step, linear view of purchase-production-consumption activities
D) takes a sense-and-respond view of the market
E) suggests that planning starts with identifying the needs of target customers

5) The term demand chain is considered limited because it ________.

A) advocates a make-and-sell view of the market that relies on a responsive supply network
B) suggests that planning starts with raw materials, productive inputs, and factory capacity
C) takes a step-by-step, linear view of purchase-production-consumption activities
D) ignores the evolution of the global marketplace
E) overlooks the needs of target customers

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6) A view of the market that specifies that planning starts by identifying the needs of target
customers, to which the company responds by organizing a chain of resources and activities
with the goal of creating customer value is a(n) ________ view.
A) make-and-sell
B) identify-and-target
C) purchase-produce-and-consume
D) market-and-profit
E) sense-and-respond

7) A ________ is made up of the company, suppliers, distributors, and customers who partner
to improve the performance of the entire system.
A) value delivery network
B) horizontal channel
C) consumer base
D) product delivery network
E) product line

8) ________ play an important role in matching supply and demand by providing consumers
with a broad assortment of products in small quantities.
A) Virtual banks
B) Intermediaries
C) Price consultants
D) Uniform-delivery networks
E) Upstream partners

9) Which of the following questions is NOT of major concern regarding marketing channels?
A) What role do physical distribution and supply chain management plan in attracting and
satisfying customers?
B) What impact do marketing channels have on the profitability of the firm and its
partners?
C) How do channel firms interact and organize to do the work of the channel?
D) What problems do companies face in designing and managing their channels?
E) What is the nature of marketing channels, and why are they important?

10) A ________ is a set of interdependent organizations that help make a product or service
available for use or consumption by the consumer or business user.
A) product line
B) product delivery network
C) marketing channel
D) consumer base
E) resource bank

11) Which of the following is most likely true of marketing channel decisions?
A) They often involve long-term commitments to other firms.
B) They have minimal influence on the prices of products offered to customers.
C) They increase the amount of time a company spends connecting with customers.
D) They increase the amount of effort a company puts in to distribute goods.
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E) They are easily altered, replaced, or discarded.

12) Distribution channel decisions frequently require long-term commitments between firms. A
primary reason is that ________.
A) advertising is not easy to change
B) old products are difficult to discard and new products are difficult to introduce
C) when they set up distribution through franchisees, independent dealers, or large
retailers, they cannot readily replace these channels with company-owned stores or
Internet sites if conditions change
D) changing the manufacturing requirements is expensive and takes significant time
E) management does not want to be constantly changing the method of selling and distributing
its products

13) ________ play an important role in efficiently making products available to target markets
in the needed varieties and quantities.
A) Virtual banks
B) Intermediaries
C) Price consultants
D) Uniform-delivery networks
E) Upstream partners

14) From the economic system's point of view, the role of ________ is to transform the
assortments of products made by producers into the assortments wanted by consumers.
A) upstream partners
B) marketing intermediaries
C) third-party logistics
D) price consultants
E) factory supervisors

15) A ________ is a layer of intermediaries that performs some work in bringing the product
and its ownership closer to the final buyer.
A) product platform
B) channel level
C) resource bank
D) contact center
E) customer franchise

16) In a(n) ________ channel, the same member both produces and distributes a product or
service to consumers.
A) tiered
B) direct
C) platform
D) vertical
E) exclusive

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17) Which of the following companies uses a direct marketing channel?
A) Fishhooks, a factory that manufactures fishing equipment that it ships to hobby stores
worldwide
B) Germfight, a factory that manufactures dental products that it distributes only to select
department stores
C) Apple Blossoms, a company that sells its cosmetics exclusively through Ray's Retail Store
D) Holly Wreaths, a store that sells Christmas ornaments to customers via its online click-
to-order catalogs
E) Showdown, a clothing store that stocks merchandise from different international brands

18) At its most basic form, a marketing channel consists of the producer and the ________.
A) retailer
B) sales agent
C) competitor
D) processor
E) consumer

19) A marketing channel that consists of one or more intermediaries is known as a(n) ________
marketing channel.
A) cyclic
B) upstream
C) looped
D) direct
E) indirect

20) Plasticine Palace supplies its products exclusively to Arts & Crafts, a chain of stationery
stores across the country. The chain then makes the plasticine available to end consumers. This
is an example of ________.
A) a direct marketing channel
B) intensive distribution
C) an indirect marketing channel
D) disintermediation
E) extensive distribution

21) Which of the following is an example of an indirect marketing channel?

A) June Bride, which sells bridal gowns via its click-to-order online catalogs
B) Farmer Brown, who delivers fresh milk from his dairy to customers every morning
C) Wine & Dine, which sells its picnic baskets to select novelty stores across the country
D) Lifebelt Insurance, which sells life insurance through its door-to-door salespeople
E) Rhonda's Rental, which rents cars to people for the day

22) Which of the following is a type of flow that connects all institutions in a marketing channel?
A) payment flow
B) ownership flow
C) physical flow
D) promotion flow
E) information flow
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23) The greater the number of channel levels in a marketing channel, the ________.
A) less distance between producer and end-consumer
B) greater the channel complexity
C) less time it takes for products to reach end-consumers
D) greater the control producers have over the distribution of their products
E) greater the control producers have over the demand of their products

24) Which of the following is a conventional consumer marketing channel?

A) producer to business distributor to end consumer
B) producer to wholesaler to retailer to end consumer
C) producer to end consumer to business customer
D) producer to retailer
E) producer to business distributor to business customer

25) Which of the following is an indirect business marketing channel?

A) producer to retailer to business distributor
B) producer to wholesaler to retailer to end consumer
C) producer to end-consumer to business distributor
D) producer to retailer
E) producer to business distributor to business customer

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.

26) Which of the following is Giant Beanstalks' upstream partner?

A) the management of Greenleaf
B) the farmers of Riverdale
C) the trucks that carry Giant Beanstalks' products to Greenleaf
D) the end-consumers who buy the canned vegetables from Greenleaf
E) the logistics division of Giant Beanstalk

39) ________ are complex behavioral systems in which people and companies interact to
accomplish individual, company, and channel goals.
A) Customer relationship management systems
B) Distribution channels
C) Partner relationship systems
D) Consumer bases
E) Buying centers

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40) Which of the following does NOT apply to channel systems?
A) Some channel systems consist of only informal interactions among loosely organized firms.
B) Channel systems do not stand still; they evolve.
C) Some channel systems are formal interactions guided by strong organizational structures.
D) Intermediaries play interchangeable roles in the system.
E) Different types of intermediaries develop and emerge.

41) Which of the following is true of channel members?

A) They act independent of each other.
B) They play specialized roles in the channel.
C) They are not accountable to other channel members.
D) They play generalized and interchangeable roles in the distribution process.
E) Their competence and cooperation don't affect the company's image or profits.

42) Conflict that occurs among firms at the same level of the marketing channel is known as
________ conflict.
A) multitiered
B) horizontal
C) vertical
D) prolonged
E) financial

43) Conflict that occurs between different levels of the same marketing channel is known as
________ conflict.
A) horizontal
B) vertical
C) multitiered
D) equilateral
E) communal

44) Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt
because Imperial Hotel-Dallas was overcharging guests and providing poor service. The
Imperial Hotel was experiencing ________ conflict.
A) equilateral
B) vertical
C) multitiered
D) communal
E) horizontal

45) The management of two Panizza restaurants has an ongoing disagreement over the discount
rate given to students from the local high school. This is an example of ________ conflict.
A) intensive
B) selective
C) exclusive
D) horizontal
E) vertical

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46) When KFC came into conflict with its franchisees over the brand's Unthink KFC
repositioning, which emphasized grilled chicken over its traditional Kentucky fried chicken,
KFC experienced ________ conflict.
A) equilateral
B) horizontal
C) multitiered
D) communal
E) vertical

47) Conflict in the channel can be healthy because ________.

A) it can disrupt channel effectiveness
B) normal give-and-take simply is normal
C) the channel could become passive and non-innovative
D) it can cause harm to channel relationships
E) the respective rights of the channel partners take priority

48) A(n) ________ consists of one or more independent producers, wholesalers, and retailers,
each seeking to maximize its own profits, sometimes even at the expense of the system as a
whole.
A) multitiered supply chain
B) conventional distribution channel
C) intrinsic market matrix
D) resource bank
E) product platform

49) Which of the following is true of conventional distribution channels?

A) Channel members have complete control over each other.
B) Channel members seek to maximize their own profits.
C) Channel conflict is governed by formal mechanisms.
D) Channel members are assigned roles according to a clearly defined framework.
E) Channel members work exclusively for the good of the organization.

50) A(n) ________ marketing system consists of producers, wholesalers, and retailers acting as
a unified system.
A) horizontal
B) communal
C) multitiered
D) vertical
E) equilateral

51) Which of the following is true of vertical marketing systems?

A) Producers, wholesalers, and retailers act as a unified system.
B) Channel members have no control over each other.
C) Channel conflict is governed by informal mechanisms.
D) The system is dominated by the consumer.
E) Channel members work independently with no cooperation from other members.

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52) Which of the following is a major type of vertical marketing system?
A) corporate
B) conventional
C) multilevel
D) intrinsic
E) extrinsic

53) A ________ VMS integrates successive stages of production and distribution under single
ownership.
A) contractual
B) contingency
C) corporate
D) conventional
E) communal

54) A ________ VMS consists of independent firms at different levels of production and
distribution who join together through formal agreements to obtain more economies or sales
impact than each could achieve alone.
A) corporate
B) contingency
C) contractual
D) communal
E) conventional

55) The ________ organization is the most common type of contractual relationship.
A) franchise
B) horizontal
C) conventional
D) multi-national
E) entrepreneurial

56) Ford and its network of independent franchised dealers is an example of a ________.
A) manufacturer-sponsored retailer franchise system
B) manufacturer-sponsored wholesaler franchise system
C) service-firm-sponsored retailer franchise system
D) service-firm-sponsored equity strategic alliance
E) manufacturer-and-service-sponsored joint venture

57) Fire Up makes fireproof clothing material and it licenses select stores around the world to
use its material to make finished products with the Fire Up logo. Which of the following types
of franchising is evident here?
A) manufacturer-sponsored retailer franchise system
B) manufacturer-sponsored wholesaler franchise system
C) service-firm-sponsored retailer franchise system
D) service-firm-sponsored equity strategic alliance
E) manufacturer-and-service-sponsored joint venture

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58) In a(n) ________, leadership is assumed not through common ownership or contractual ties
but through the size and power of one or a few dominant channel members.
A) horizontal marketing system
B) administered VMS
C) corporate VMS
D) contractual VMS
E) conventional VMS

59) ________ VMS is a vertical marketing system that coordinates successive stages of
production and distribution through the size and power of one of the parties.
A) Contingent
B) Aligned
C) Corporate
D) Contractual
E) Administered

60) In a(n) ________, two or more companies at one level join together to follow a new
marketing opportunity.
A) administered vertical marketing system
B) horizontal marketing system
C) corporate vertical marketing system
D) hybrid distribution system
E) conventional marketing system

61) Which of the following is most likely a manufacturer-sponsored retailer franchise system?
A) international fast food chains like McDonald's and Pizza Hut
B) Starbucks outlets operating within Target stores
C) Toyota and its network of independent franchised dealers
D) licensed bottlers that bottle and sell soft drinks to retailers
E) hotel chains like the Ritz Carlton and Shangri-La

62) When McDonald's offers its products inside of a Walmart store, it is using a(n) ________.
A) conventional marketing system
B) corporate VMS
C) contractual VMS
D) administered VMS
E) horizontal marketing system

63) A(n) ________ system involves a single firm setting up two or more marketing channels to
reach one or more customer segments.
A) conventional distribution
B) corporate vertical marketing
C) horizontal marketing
D) administered vertical marketing
E) multichannel distribution

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64) Atlas Imports and Exports sells products directly to consumers via the Atlas Web site, and
through local retailers as well. Which of the following is evident here?
A) corporate vertical marketing system
B) horizontal marketing system
C) multichannel distribution system
D) administered vertical marketing system
E) conventional distribution channel

65) Movie Giants offers DVD rentals through its Web site. It also offers DVD rentals via Star
City stores. This is an example of a(n)________ distribution system.
A) conventional
B) inclusive
C) intensive
D) extensive
E) multichannel

66) Which of the following is an advantage of adding new channels in a multichannel

distribution system?
A) limiting market complexity
B) reducing control over the system
C) expanding sales and market coverage
D) decreasing marketing needs and costs
E) minimizing mass customization of products

67) Which of the following is a disadvantage of adding new channels in a multichannel

distribution system?
A) decreasing complexity of markets
B) decreasing control over the system
C) reducing opportunities for franchising
D) lowering sales and market coverage
E) minimizing publicity needs

68) ________ occurs when product or service producers cut out intermediaries and go directly
to final buyers or when radically new types of channel intermediaries displace traditional ones.
A) Extensive distribution
B) Multichannelization
C) Disintermediation
D) Inclusive distribution
E) Cross merchandising

69) The Bookworm began delivering books directly to customers through mail instead of
selling through brick-and-mortar companies. This is an example of ________.
A) indirect marketing
B) disintermediation
C) franchising
D) exclusive distribution
E) intensive distribution
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70) Which of the following is true of changes in the organization of distribution channels?
A) Developing new channels seldom causes conflict with a company's established channels.
B) To remain competitive, product and service producers must use fewer marketing channels.
C) The growth of the Internet threatens many brick-and-mortar companies with
disintermediation.
D) Companies have fewer channel options today than they did in the past due to economic
problems.
E) Advances in technology have decreased the number of channels available to entrepreneurial
firms.

88) Which of the following should be a manufacturer's first step when designing an effective
marketing channel?
A) set channel objectives
B) analyze consumer needs
C) identify channel alternatives
D) evaluate channel alternatives
E) establish strategic alliances

89) Which of the following is NOT a step in designing an effective marketing channel?
A) evaluating the channel alternatives
B) identifying major channel alternatives
C) analyzing consumer needs
D) determining pricing policy for channel members
E) setting channel objectives

90) In designing the marketing channel, a company must balance customer needs and wants
with ________.
A) the need to make a profit
B) the requirement to find channel members to fill all the steps
C) the firm's position in the customers' minds
D) the desire to be "the best" in all service areas
E) the firm's resources and skills to provide all the desired services

91) The company's channel objectives are influenced by all of the following EXCEPT
________.
A) the company's marketing intermediaries
B) the company's competitors
C) the age of the company
D) the nature of the company
E) the company's products

92) Which of the following is an environmental factor that affects channel objectives and
design?
A) economic conditions
B) factory staffing
C) organizational objectives
D) interpersonal influences
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E) individual motives

93) ________ distribution is a strategy in which producers of convenience products and

common raw materials stock their products in as many outlets as possible.
A) Direct
B) Intensive
C) Inclusive
D) Exclusive
E) Selective

94) For which of the following products would the intensive distribution strategy most likely be
used?
A) high-end cameras
B) luxury cars
C) lawn mowers
D) soft drinks
E) furniture

95) Whitelight sells its toothpastes in many convenience stores across the country. This is an
example of ________ distribution.
A) exclusive
B) selective
C) hybrid
D) intensive
E) normal

96) With which of the following strategies would a company give only a limited number of
dealers the right to distribute its products in their territories?
A) exclusive distribution
B) extensive distribution
C) moderate distribution
D) primary distribution
E) intensive distribution

97) For which product would a company use an exclusive distribution strategy?
A) luxury cars
B) newspapers
C) chewing gum
D) dairy products
E) soft drinks

98) Ocean Spray sells its air fresheners only through Ray's Drugs. This is an example of
________ distribution.
A) exclusive
B) selective
C) intensive
D) indirect
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E) corporate

99) ________ distribution involves the use of more than one but fewer than all of the
intermediaries who are willing to carry a company's products.
A) Exclusive
B) Selective
C) Intensive
D) Indirect
E) Corporate

100) Craftsman Furniture Company offers its bedroom and living room furniture through
independent and smaller chain furniture stores, not through every store that sells furniture. It
uses ________ distribution.
A) intensive
B) direct
C) corporate
D) selective
E) exclusive

101) Which of the following is true of the exclusive distribution strategy?

A) It makes products available to everybody, everywhere.
B) It is used primarily for convenience items.
C) It helps promote a brand's luxury image.
D) It gives producers no control over their products.
E) It enlists all of the intermediaries willing to carry a company's products.

102) When the seller allows only certain outlets to carry its products, this strategy is called
________.
A) exclusive distribution
B) subjective dealing
C) selective distribution
D) exclusive pricing
E) disintermediation

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.

103) What distribution strategy does Giant Beanstalks use?

A) inclusive distribution
B) exclusive distribution
C) selective distribution
D) intensive distribution
E) extensive distribution
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104) Which of the following is NOT a criterion a company will use to evaluate the major
channel alternatives?
A) adaptability
B) control
C) commitment
D) sales and costs
E) likability

105) Why do firms have difficulty accessing potential market areas in developing countries,
such as China and India?
A) inadequate distribution systems
B) anti-globalization efforts
C) highly centralized rural markets
D) limited manpower
E) high operating costs

115) ________ management calls for selecting, managing, and motivating individual channel
members and evaluating their performance over time.
A) Inventory
B) Marketing channel
C) Brand image
D) Customer experience
E) Brand content

116) To help recruit, train, organize, manage, motivate, and evaluate relationships with channel
partners, companies are now installing integrated high-tech ________ systems.
A) advertiser funded programming
B) customer segmentation network
C) brand content management
D) partnership relationship management
E) closed loop marketing

117) Producers motivate channel members using all of the following EXCEPT ________.
A) using strict rules to force compliance with contract terms
B) partner relationship management
C) working to sell through the intermediaries
D) persuading the intermediaries that they are first-line customers
E) convincing channel members that each will enjoy greater success working together with a
common goal

118) When a seller requires its dealers to abstain from handling competitors' products, it is
called ________.
A) subjective distribution
B) exclusive dealing
C) selective distribution
D) exclusive pricing
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E) disintermediation

119) A strategy of exclusive dealing is most likely considered legal if ________.

A) the industry is newly developed
B) both parties have large territories
C) competition is not substantially lessened
D) the dealer agrees to promote the competitor's products
E) the dealer receives a steady source of supply and support

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

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

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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

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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

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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.

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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
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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

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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

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