Question 1. Most shippers have track and trace systems to track their product loads in the supply chain. Having the capacity to track products helps shippers anticipate events that could disrupt the supply chain. Which of the following could disrupt the supply chain?
customers changing their minds
hurricane over the Atlantic Ocean
shipping mistakes as a result of improper information inputted into the system
employees taking sick days
Question 2. The definition of demand planning is _______.
process for estimating how much product customers will buy.
process of determining how demanding customers will be when they receive their order.
process of anticipating demand prior to production.
process of demanding channel members to provide value added if they want to be included in the supply chain.
Question 3. Which of the following best describe the concepts that influence the price of a product or service?
demand, competition, cost, and government
cost, communication, convenience, and competition
design, delivery, development, and demand
design, development, materials, and taxation
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Question 4. Walmart is a multi-billion dollar retail company that is a buyer from several consumer goods manufacturers. Many of their suppliers have moved to Bentonville, Arkansas, the Walmart headquarters. Why do you think suppliers have moved so close to Walmart headquarters?
to be around many of the suppliers to Walmart who tend to cluster in the same geographic area for convenience
to be able to walk over purchase orders and not waste time with the mail service or an untrustworthy electronic ordering system.
to ensure they can get to headquarters quicker than competitors
to be able to meet with the president of the company as often as possible
Question 5. A local dermatologist has developed a new line of body scrub products for sensitive skin. She is unsure if she should sell her products through dermatologists' offices or through retail chains such as Sephora. Which explanation best describes why the marketing channel decision is as important as pricing and product features?
because one channel may want a greater percentage of the sale than the other channel
because place communicates to the customer something about the product's value proposition, which includes the benefits and price
because it might be easier for her to make a distribution deal with Sephora, a national chain, as opposed to calling on individual doctor officers that may take too much time and money.
because the skin scrub is like so many other products in that product category that selling through dermatologists offices would give it the aura of being an exclusive product.
Question 6. Peeps has been manufacturing candy since 1923. Recently they opened a retail store in the Mall of America and two additional locations. Since Peeps is intensively distributed in most other retail stores carrying candy, especially around Easter time, why would Peeps decide to add a new retail store channel?
because Peeps can't always count on the other stores to carry their product.
because the Peeps president wants to experiment with a direct channel of distribution
because Peeps wants to eliminate those other intensive channels of distribution and reposition themselves as an exclusive product
because Peeps believes the retail stores will enhance their brand name recognition and sell more Peeps everywhere the candy is sold as a result
Question 7. Breakeven point refers to ______.
the point at which revenue equals units sold.
the point at which the firm can finally make a profit.
the point at which consumers have had enough of a product.
the point at which total costs equal total revenue.
Question 8. The most efficient and effective manner in which to place a product into the hands of the customer is one way to define ________.
intermediaries.
logistics.
value chain.
members.
Question 9. The shortest marketing channel consists of two parties, the producer and the consumer. This statement best describes which of the following concepts?
mono-channel marketing
indirect channel
direct channel
traditional channel
Question 10. Which of the following intermediaries buys large quantities of a product and breaks it down into smaller units more convenient for the customer to buy at retail?
agent/broker
distributors
wholesalers
manufacturer
Question 11. _____ involves trying to sell a product in as many outlets as possible.
Exclusive distribution
Wholesale distribution
Selective distribution
Intensive distribution
Question 12. ______ involves selling products through one or very few outlets.
Intensive distribution
Selective distribution
Exclusive distribution
Wholesale distribution
Question 13. Which of the following is NOT a pricing objectives?
maximizing sales
maximizing profits
minimizing costs
earning a targeted return on investment
Question 14. Demand for a product is said to be inelastic when ______.
the price goes up, consumers look for bargains.
an increase in price will cause demand to go up or stay the same.
the price goes up the demand goes down.
the price goes down, the product will end up in an outlet store
Question 15. Which unethical practice refers to competitors getting together and agreeing to charge the same price?
bait and switch
price fixing
predatory pricing
skimming