Quiz

Question 1

1. The distribution channel can best be described as:
   a. The way that companies distribute their products
   b. The ‘path’ along which goods move from manufacturer to customer
   c. A method of improving sales across regions
   d. The ‘place’ where products are sold

Answer 1

b.The ‘path’ along which goods move from manufacturer to customer

Question 2

2. The downstream end of a supply chain is:
   a. supplier end
   b. customer end

Answer 2

b. customer end

Question 3

3. Which of the following is not a function of a distribution channel?
   a. Order processing and transmittal
   b. Transportation and delivery
   c. Payment collection and processing
   d. Keeping control over costs

Answer 3

d. Keeping control over costs

Question 4

4. In the ‘unionist perspective’:
   a. logistics is a part of SCM
   b. SCM is a part of logistics

Answer 4

a. logistics is a part of SCM

Question 5

5. In the ‘traditionalist’ perspective:
   a. logistics is a part of SCM
   b. SCM is a part of logistics

Answer 5

b. SCM is a part of logistics

Question 6

6. Intensive distribution refers to which of the following:
   a. Making goods available in towns and cities across the country
   b. Distribution only in selective areas
   c. Loading dealers so that they sell more
   d. Making goods available in every possible retail outlet in an area

Answer 6

d. Making goods available in every possible retail outlet in an area

Question 7

Small brands would most effectively follow which of the following strategy:

a. Intensive distribution
b. Extensive distribution
c. Push strategy
d. Pull strategy

Answer 7

c. Push strategy

Question 8

8. A low value, high volume shipment has:
   a. a high transport cost penalty
   b. a low transport cost penalty

Answer 8

a. a high transport cost penalty

Question 9

9. Which of the following can best be described as an economic function of marketing intermediaries?
   a. Breaking bulk and dispersion
   b. To convert consumer needs into demand
   c. To help consumers make choices

Answer 9

a. Breaking bulk and dispersion

Question 10

10. A supply chain is best understood as:
    a. a linear chain
    b. a multidimensional network

Answer 10

b. a multidimensional network

Question 11

11. Makers of televisions, cameras, consumer goods and major appliances normally use which of the following distribution channel forms?
    a. direct marketing channel
    b. indirect marketing channel
    c. horizontal channel
    d. synthetic channel

Answer 11

b. indirect marketing channel

Question 12

Which of the following is not a function of logistics management?

a. Physical distribution
b. Demand chain management
c. Running a retail store
d. Procurement and supply

Answer 12

c. Running a retail store

Question 13

13. Effective deregulation typically aims to achieve (at least n theory):
    a. cost reduction
    b. service improvement
    c. both

Answer 13

c. both

Question 14

14. Which term most accurately relates to the whole world:
    a. Global
    b. International

Answer 14

a. Global

Question 15

15. Using manufacturer’s representatives or sales branches is a characteristic of which of the following channel forms?
    a. Logistics management
    b. indirect marketing channels
    c. direct marketing channels
    d. Hybrid marketing channels

Answer 15

c. direct marketing channels

Question 16

B2B companies normally use which of the following channels?

a. Zero level channels
b. One level channels
c. Three level channels

Answer 16

a. Zero level channels

Question 17

17. A cash-and-carry model would be described as:
    a) Small shops offering goods to customers
    b) Small shops and bulk consumers picking up stocks from distributors
    c) Buying anything on cash
    d) None of these

Answer 17

b) Small shops and bulk consumers picking up stocks from distributors

Question 18

18. Luxury brands look for exclusive stores because they want to control:
    I. The image of the brand
    II. Availability of expert advice in store
    III. Display of other brands in the store
    a.I and II only
    b) I, II and III
    c) II and III only
    d) I and III only

Answer 18

a.I and II only

Question 19

19. In franchising, one party grants all of the following rights to another party, except:
    a) Right to marketing and to create brands
    b) Right to use the trademark or trade name
    c) Right to the business systems and processes of the franchiser
    d) Right to produce and market goods and services

Answer 19

a) Right to marketing and to create brands

Question 20

20. Conflicts may arise in the franchising model if:
    I. The company opens more franchises in the same city
    II. Profits of franchisees do not live up to expectations
    III. The franchisee is doing very well

a. Only I and II
b. I, II and III
c. Only I and III
d. Only II and III

Answer 20

a.Only I and II

Question 21

21. Distribution of perishable goods must satisfy the following criteria, except:
    a) Short delivery times
    b) Assessment of accurate demand
    c) Using hub and spoke models
    d) Back up at all levels in case of breakdowns

Answer 21

c) Using hub and spoke models

Question 22

Hub and spoke models are useful in the marketing of which of the following industries:

Airlines II. Hotels III. FMCG IV. White goods

a) I, II and III
b) I, II, III and IV
c) Only I and III
d) I, III and IV

Answer 22

d) I, III and IV