Marketing 3023 - Marketing Fundamentals » Winter 2021 » Quiz 5

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Question #1
Most traditional channel systems don't have a channel captain.
A.   FALSE
B.   TRUE
Question #2
With the Internet, even very small specialized firms can draw customers from all over the world.
A.   FALSE
B.   TRUE
Question #3
When a firm utilizes multichannel distribution, a sales channel report—which lists unit or dollar volume sales for each channel—can help a marketing manager monitor the performance of each channel.
A.   FALSE
B.   TRUE
Question #4
Which of the following best illustrates discrepancy of quantity?
A.   Michelin made millions of tires last year, but most customers bought only one set.
B.   Michelin makes tires, but most consumers also want a large selection of car-care services.
C.   Four firms make over 90 percent of all the tires sold in the United States.
D.   There are over 310 million consumers in the United States, but only a small portion buy tires in any given year.
E.   Some stores sell large quantities of Michelin tires but only small quantities of tires made by other companies.
Question #5
The Internet gives large firms access to repeat customers, but it does little for small firms trying to develop an initial base of customers.
A.   TRUE
B.   FALSE
Question #6
A channel of distribution
A.   must include one or more intermediaries.
B.   is only needed when products are sold indirectly.
C.   None of the answers are correct.
D.   is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.
E.   is only needed when products must be stored.
Question #7
Which of the following is true about public warehouses?
A.   They are useful for manufacturers that must maintain stock in many locations, including foreign countries.
B.   They are used by firms who must regularly store large volumes of goods.
C.   They are designed to speed the flow of goods.
D.   They are very expensive.
E.   They are leased by companies for their own use.
Question #8
The total cost approach involves evaluating each possible PD system and identifying only the transportation costs associated with each alternative.
A.   FALSE
B.   TRUE
Question #9
The best way to ship computer parts from St. Louis, Missouri, to Columbus, Ohio, when the parts need to be at a factory in Columbus within three days, is to use
A.   a pipeline.
B.   air.
C.   water.
D.   rail.
E.   trucks.
Question #10
Transporting cost as a percentage of selling price is lowest for
A.   sand.
B.   chemicals.
C.   cabbage.
D.   factory machinery.
E.   pharmaceuticals.
Question #11
Which of the following correctly represents the order of activities most likely to be performed on goods arriving at a distribution center?
A.   sort into groups, put in long-term storage, retrieve from groups, load for shipping
B.   sort into groups, stack on pallets, load for shipping, retrieve from groups
C.   put in long-term storage, retrieve from groups, stack on pallets, load for shipping
D.   load for shipping, sort into groups, retrieve from groups, stack on pallets
E.   sort into groups, move to loading dock, move to the vehicle for distribution
Question #12
Retailers selling a new product that is in hot demand, like the latest movie release or a best-selling book, would be unlikely to incur higher costs for faster delivery (physical distribution).
A.   TRUE
B.   FALSE
Question #13
The total cost approach ignores inventory carrying costs and excludes the use of cost accounting and economics tools.
A.   FALSE
B.   TRUE
Question #14
A consumer who went to shop at a "supercenter" would probably expect not only to be able to buy food and health care products but also to leave dry cleaning or have shoes repaired.
A.   FALSE
B.   TRUE
Question #15
Debbie Wood sells food products to grocery wholesalers and large supermarket chains in Tallahassee. She sells for several manufacturers with noncompeting lines of food products—earning a 5 percent sales commission. She neither handles nor owns the products she sells. Debbie is a
A.   broker.
B.   truck wholesaler.
C.   manufacturers' agent.
D.   selling agent.
E.   rack jobber.
Question #16
Almost half of all retail sales are made by the largest stores—those with sales of over $5 million a year.
A.   TRUE
B.   FALSE
Question #17
Manufacturers' agents usually work for
A.   only one manufacturer.
B.   several manufacturers of noncompeting lines.
C.   manufacturers' sales branches.
D.   service wholesalers.
E.   selling agents.
Question #18
Agent wholesalers usually have higher operating expenses (as a percentage of sales) than merchant wholesalers.
A.   FALSE
B.   TRUE
Question #19
A full-service wholesaler in Santa Fe takes title to the products it stocks—a full line of home repair products for independent hardware stores. This wholesaler is a
A.   single-line wholesaler.
B.   rack jobber.
C.   selling agent.
D.   specialty wholesaler.
E.   broker.
Question #20
The "Fashion Place" carries a carefully selected and distinctive assortment of traditional women's business clothing and accessories for upper-class executives in Boston. It emphasizes customer service with its well-trained salesclerks. The store is probably a
A.   specialty shop.
B.   single-line store.
C.   small department store.
D.   convenience store.
E.   limited-line store.

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