Question 1
Which of the following statements about channel systems is TRUE?
a.Traditional channel systems are more efficient because of their greater freedom.
b.Vertical integration works best when discrepancies of quantity are large.
c.Most corporate channel systems use multichannel distribution.
d.Some administered channel systems obtain the advantages of vertically integrated systems while still retaining flexibility.
e.All of the above are true.
Question 2
A computer manufacturer runs training programs for its "cooperating" retailers' salespeople, as well as providing newspaper advertising layouts, point-of-purchase materials, and sales manuals. This is an example of:
a.an administered channel system.
b.a contractual channel system.
c.a traditional channel system
d.a vertically integrated corporate channel system.
e.a franchising system.
Question 3
The regrouping activity which involves collecting products from many small producers so that the products can be handled more economically further along in the channel is called _____________.
a.sorting
b.wholesaling
c.accumulating
d.assorting
e.bulk-breaking
Question 4
Which of the following is NOT a type of limited-function wholesaler?
a.specialty wholesalers
b.catalog wholesalers
c.truck wholesalers
d.drop-shippers
e.cash-and-carry wholesalers
Question 5
Which of the following statements about inventory and storage is TRUE?
a.A distribution center is used to avoid unnecessary storing costs.
b.Only government agencies can store products in public warehouses.
c.Decisions about inventory levels are usually not of concern to marketing managers--since inventory levels are best determined based on the amount of the product produced.
d.Achieving customer service goals makes a large inventory almost inevitable.
e.Minimizing storage costs will lead to lower total distribution costs.
Question 6
The railroad service which picks up truck trailers at a producer's location, loads them onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's door is _____________.
a.truck service
b.fast freight
c.diversion in transit
d.piggyback service
e.pool car service
Question 7
Which of these businesses best fits the definition of a limited-line store?
a.Johnson's Health and Beauty Supplies
b.Valu Grocer
c.Cuzco's
d.Walden's Leather
Question 8
Union Power Tool Co. does not own its own transport facilities, but it regularly ships small orders to the wholesalers that handle its products. Tools that are going across the country are usually shipped by rail. Regional shipments usually go by truck. It probably makes sense for Union to use _______________.
a.just-in-time delivery
b.containerization
c.piggyback service
d.a freight forwarder
e.none of the above.
Question 9
Which of these businesses would be classified as a specialty shop?
a.Walden's Leather
b.Cuzco's
c.Publisher's Helper
d.Valu Grocer
Question 10
One of United's biggest customers has placed a very large, heavy order. Its warehouse is in a location served by all transport modes, and the customer has directed United to ship the order by the mode with the lowest transport costs. In this situation, United will probably ship the tools by ______________.
a.airfreight
b.trucks
c.waterways
d.railroads