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Devlin Applied Design,a Canadian company,developed a system for BASF to allow North American body shops to purchase materials such as paint and sandpaper directly via the web.Since body shop professionals are typically not web savvy,Devlin designed a simple,user friendly,visual interface that allows users intuitively to order products via computer.The system that was designed is most likely a(n) :


A) extranet
B) Internet-free system
C) e-commerce developed interface (EDI)
D) customized search engine

E) None of the above
F) B) and C)

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Kenny works at a warehouse in Edmonton where his job is to organize the flow of mineral ore into the processing warehouse and then ensure the finished product,granite countertops are delivered out to resellers.Kenny is most likely in which department?


A) physical distribution management
B) logistics management
C) customer service
D) production management

E) A) and B)
F) A) and D)

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Which type of contractual vertical marketing system involves small,independent retailers forming an organization that operates a wholesale facility cooperatively?


A) service-sponsored retail system
B) retailer-sponsored cooperative
C) administered cooperative system
D) manufacturer-sponsored cooperative

E) B) and D)
F) A) and B)

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Which of the following is a type of merchant wholesaler?


A) cash-and-carry wholesaler
B) rack jobbers
C) truck jobbers
D) specialty merchandise wholesaler

E) A) and B)
F) A) and C)

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Optimum Inc.works with manufacturers,suppliers,and distributors to manage their shipping and logistic needs.Optimum Inc.would likely be considered a(n) :


A) Freight jobber
B) Freight forwarder
C) Rack jobber
D) Third-party logistics provider

E) B) and C)
F) All of the above

Correct Answer

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You probably own several pairs of blue jeans.Further,it is likely that you purchased those jeans at retail stores located in a shopping mall.It is quite unlikely you bought the jeans directly from the manufacturer.In fact,most goods are brought to you via a(n) ____,which consists of several organizations involved in the process of marketing products or services and making them available for our use as consumers.


A) organizational chain of command
B) organizational hierarchy
C) marketing channel
D) marketing hierarchy

E) B) and C)
F) A) and D)

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Which of the following statements describes how a supply chain differs from a marketing channel?


A) A communication is more important in the marketing channel than in the supply chain.
B) The marketing channel places more emphasis on cost effectiveness than the supply chain.
C) A supply chain includes suppliers that provide raw material inputs to a manufacturer.
D) A marketing channel includes suppliers that provide raw material inputs to a manufacturer.

E) C) and D)
F) B) and D)

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Activities that focus on getting the right amount of the right product to the right place at the right time at the lowest possible cost are called:


A) strategic distribution.
B) movement and storage.
C) logistics.
D) direct selling.

E) A) and D)
F) B) and D)

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Which of the following statements about railroads is NOT true?


A) Railroads carry bulky items over fairly long distances.
B) Railroads still dominate the other five modes of transportation in terms of ton-miles carried.
C) Railroad routes are more extensive than water carriers or pipelines.
D) Railroads always exhibit complete pickup and delivery.

E) None of the above
F) A) and C)

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The most common form of distribution intensity is:


A) intensive distribution
B) extensive distribution
C) selective distribution
D) exclusive distribution

E) A) and D)
F) A) and C)

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Direct Energy selling utilities contracts,door to door is an example of which type of marketing channel?


A) direct channel
B) indirect channel
C) strategic channel alliances
D) marketing channel

E) C) and D)
F) None of the above

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Pharmaceutical companies sell to hospitals and clinics directly.They market their products to large retail chains that distribute the medicines to their stores across the nation.They also sell to drug wholesalers that sell to the remaining independent drugstores in Canada.What method of distribution is used by pharmaceutical companies?


A) multichannel distribution
B) vertical distribution
C) horizontal distribution
D) direct distribution

E) None of the above
F) B) and D)

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The Montana Coal Company needs to move its coal to intermediaries on the East coast who in turn will sell it to end users.The best means of transportation for the company to employ under normal conditions is:


A) air carriers.
B) motor carriers.
C) water carriers.
D) railroads.

E) B) and C)
F) C) and D)

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Identify and describe the functions of agents and brokers.

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A small electronics company manufactures a line of low to moderate quality stereo components that are distributed through wholesalers to mass market retailers such as Walmart.The electronics company has begun production of a small line of high quality,professional studio model components.How should the small electronics company distribute its new products?


A) use its established channel
B) distribute indirectly to mass market retailers
C) distribute through agents who sell to specialty electronics stores who will feature the new line
D) sell indirectly to specialty electronics stores who will feature the new line

E) B) and C)
F) All of the above

Correct Answer

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When a producer owns an intermediary at the next level down in the marketing channel,it is called:


A) forward integration.
B) backward integration.
C) vertical channel.
D) horizontal channel.

E) B) and C)
F) All of the above

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Hallmark sells its Hallmark greeting cards through Hallmark stores and select department stores,and its Ambassador brand of cards through discount and drugstore chains,thus reaching different customers with different brands.Hallmark is using:


A) strategic channel alliance.
B) multi-product distribution.
C) multichannel distribution.
D) multi-intermediary distribution.

E) All of the above
F) A) and D)

Correct Answer

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Dell is concerned that Future Shop is not doing a very good job in selling their products.This type of conflict between a manufacturer and wholesaler is referred to as:


A) Corporate
B) Horizontal
C) Vertical
D) Administered

E) A) and B)
F) A) and C)

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John manages all of the activities from raw materials to finished product at Optimum Steel Company.John is most likely focused on:


A) just-in-time inventory system
B) electronic data interchange (EDI)
C) strategic information alliance
D) supply chain

E) None of the above
F) A) and D)

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All of the following are examples of contractual vertical marketing systems,except:


A) wholesaler-sponsored voluntary chains
B) retailer-sponsored cooperatives
C) franchising program
D) distribution-sponsored voluntary chains

E) A) and C)
F) All of the above

Correct Answer

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