Question One: Choose The Correct Answer

Download as pdf or txt
Download as pdf or txt
You are on page 1of 5

Question One: Choose the Correct Answer:

1) CDW has most likely distinguished itself in the computer market by ________.
A) offering the lowest prices at all times
B) focusing on new product features
C) providing a variety of service outputs
D) using standardized global marketing
E) serving as a wholesaler to businesses

2) CDW offers customers all of the following service outputs EXCEPT ________.
A) fast delivery
B) product advice
C) personal sales assistance
D) brand variety and assortment
E) hardware component bulk breaking

3) Bulk breaking refers to an end-user’s ability to ________.


A) purchase a small number of units
B) buy directly from a wholesaler
C) receive expedited shipping
D) negotiate for lower prices
E) compare similar products

4) What is the most likely result of bulk breaking?


A) consumers purchasing large lots at high costs
B) end-users minimizing search time and costs
C) wholesalers maintaining steady stock levels
D) end-users carrying less unnecessary inventory
E) service providers offering more flexibility

5) A multi-channel strategy means:


A) A firm uses multiple promotional strategies to reach customers.
B) A firm advertises its products or services on many television stations.
C) Numerous intra-organizational activities are used to provide products and services to customers.
D) A product has many features that are desired by customers.
E) A company reaches its customers through more than one channel.

6) Ten manufacturers of wallpaper all sell through one wholesaler to five retailers. The number of contacts
needed for all of the manufacturers to contact all of the retailers is:
A) 2
B) 16.
C) 6.
D) 50.
E) 15.

7) Maria purchases a twelve-pack of paper towels instead of a package of four rolls because of the lower
per-unit price. Maria is most likely benefitting from the service output of________.
A) information sharing
B) spatial convenience
C) customer service
D) delivery time
E) bulk breaking
8) Which service output increases consumer satisfaction by lowering transportation requirements and search
costs?
A) information sharing
B) spatial convenience
C) customer service
D) delivery time
E) bulk breaking

9) The demand side factors which affect the development of channels includes;
A) Facilitation of search by Intermediaries sorting function activities
B) Reduction in number of contacts
C) Routinization of transactions
D) Physical possession
E) Waiting and delivery time

10) The role of distribution channels in marketing strategy is


A) Important mainly in the automobile business.
B) To offset problems in product strategy.
C) To provide the means by which the firm moves the goods and services it produces to ultimate users
D) An extremely important tactical issue.
E) The flow of goods and services through the economy.

11) Which term refers to generically different classes of goods that constitute the breadth of product lines?
A) variety
B) depth
C) assortment
D) complexity
E) intensity

12) Amazon.com offers free shipping for consumers who spend more than $25, but free shipping typically
takes 7-10 days. Consumers who are willing to pay additional shipping charges receive products more
quickly. Amazon’s shipping speed options are a function of which service output?
A) information sharing
B) spatial convenience
C) customer service
D) waiting time
E) bulk breaking

13) Which term refers to generically different classes of goods that constitute the breadth of product lines?
A) variety
B) depth
C) assortment
D) complexity
E) intensity

14) Which service output is known as solutions retailing by some manufacturers and retailers?
A) information sharing
B) spatial convenience
C) customer service
D) delivery time
E) bulk breaking
15) On Saturday, Dana, who wants to replace the floor in her living room, attended a do-it-yourself class at
Home Depot about tile installation. Which service output demand is Home Depot most likely trying to
satisfy?
A) waiting time
B) bulk breaking
C) spatial convenience
D) customer service
E) information sharing

16) Which of the following is NOT considered a service output?


A) product price
B) bulk breaking
C) product variety
D) delivery time
E) information sharing

17) What is the first step to take when segmenting end-users by service outputs?
A) dividing end-users into groups based on demographic factors
B) analyzing the buying habits of potential end-users of a product
C) identifying similar characteristics among the product’s end-users
D) listing service outputs that are potentially demanded by the product’s end-users
E) providing relevant information on service outputs to potential end-users of the product

18) Which factor is LEAST relevant when determining the best segments to target?
A) segment size
B) sales potential
C) length of channel
D) cost to serve the segment
E) Intensity of competition

19) Which service output involves educating end-users about product attributes and usage capabilities?
A) Information sharing
B) Customer service
C) Bulk breaking
D) Waiting time
E) Product variety

20) Which of the following is not a customer service elements that influenced by network structure:
A) Response time
B) Product variety
C) Product availability
D) Customer experience
E) Physical possession

21) Successful supply chain manager will;


A) Reduce response time to satisfy customer demand.
B) Increase the inventory level for higher responsiveness.
C) Matching customer service level with distribution channels cost
D) Deliver the product to the customer location
E) Increase the product variety, tracking and return-ability.
Question Two: State Whether the Following Statements are True or False, and correct the
false statements.
1. A marketing channel is a set of independent organization involved in the process of making a product -
available for use and consumption. False, interdependent
2. Distribution directly affects cost and the customer experience and therefore drives profitability. True
3. Channel implementation is crucial to help the channel manager create effectiveness and efficiency. True
4. The goal of the channel manager is to achieve channel coordination, rather than their own independent
goals. True
5. Spatial convenience is the service output which increases consumer satisfaction by lowering
transportation requirements. True
6. In consignment selling, product is physically held by the retailer, but it is not owned by the manufacturer.
False, owned
7. Excellent customer service can lead directly to greater sales and profit. True
8. Assortment is the depth of product brands. True
9. Segmenting the market by service output demands is a useful tool for channel design. True
10. Distribution channel's productive part which add value to the product is the service outputs. True
11. The ultimate purpose of service output demand analysis is to assess segment attractiveness. True
12. In channel flows when a channel member is removed, its functions should not be shifted to some other
channel member to preserve service output provision in the channel. False, should be shifted
13. Distribution channel contributes to the production of valued service outputs and it carries an associated
cost. True
14. To decrease inventory costs, firms try to consolidate and limit the number of facilities in their supply
chain network. True
15. Firms that target customers who can tolerate a long response time require a lot of locations. False, fewer
locations
16. Most consumers prefer distribution channels with fewer service outputs because price and product
features are their only concern when making purchases. False, higher service outputs
17. The channel member which takes title to goods, it bears the cost of carrying the inventory. True
18. If the number of facilities increase to the extent that resulted in loss of economies of scale in inbound
transportation, thus the total cost of transportation increases. True
19. The biggest advantages of drop-shipping is the ability to centralize inventories at the manufacturer.
False, Lower transportation cost and improved customer experience
20. Distribution channel plays a significance role in low population countries.

Question Three: (Essay questions)


1) Briefly describe the six categories of service outputs, give examples.
➢ Bulk breaking: customers’ ability to buy their desired number of units of a product or service
even though they may be originally produced in large, batch-production lot sizes
➢ Convenience: near stores
➢ Waiting time: quick delivery
➢ Variety and assortment: wider the breadth of variety and/ or the greater the depth of product
assortment available to the customer
➢ Customer service: easing the shopping and purchase process for customers
➢ Information provision: knowledge about product

2) Explain the intermediaries function activities


➢ Sorting: breaking down heterogeneous supply into separate homogeneous stock
➢ Accumulation: accumulate similar stocks from different suppliers into larger homogeneous
supply
➢ Allocation; break down homogeneous supply into smaller lots
➢ Assorting; building up an assortment of product for resale in association of each other
3) Discuss the factors which are Influencing Distribution Network Design
➢ Elements of customer service influenced by network structure:
◦ Response time
◦ Product variety
◦ Product availability
◦ Customer experience
◦ Order visibility
◦ Returnability

➢ Supply chain driver costs affected by network structure:


◦ Inventories
◦ Transportation
◦ Facilities and handling
◦ Information

You might also like