5 Written Questions

1. assuming business risks in the ownership of inventory that can become obsolete or deteriorate
2. arrangement whereby a firm reaches buyers by using two or more different types of channels for the same basic product
3. - a firm selects a few retail outlets in a specific geographical area to carry its products
   - most common form of distribution density, usually associated with shopping goods or services
4. any intermediary with legal authority to act on behalf of the manufacturer
5. providing information to customers and suppliers, including competitive conditions and trends

5 Matching Questions

1. Customer Service
2. Sorting
3. Purpose of Intermediaries
4. Logistics
5. Strategic Channel Alliance

1. a intermediaries make possible the flow of products from producers to ultimate consumers by performing three basic functions
2. b ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience
3. c - where one firm's marketing channel is used to sell another firm's products
   - popular in global marketing, where the creation of marketing channel relationships is expensive and time consuming
4. d purchasing in large quantities and breaking into smaller amounts desired by customers
5. e - activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost
   - deals with decisions needed to move a product from the source of raw materials to consumption (the flow of the product)

5 Multiple Choice Questions

1. extending credit to customers
   1. Financing
   2. Franchising
   3. Selling
   4. Grading
2. individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
   1. Indirect Channel
   2. Direct Channel
   3. Sorting
   4. Marketing Channel
3. inspecting, testing, or judging products, and assigning them quality grades
   1. Grading
   2. Buying
   3. Storing
   4. Sorting
4. assembling and protecting products at a convenient location to offer better customer service
   1. Assorting
   2. Selling
   3. Sorting
   4. Storing
5. 1. Buying
   2. Selling
   3. Risk Taking
   1. Transactional Function Activities
   2. Logistical Function Activities
   3. Facilitating Function Activities
   4. Vertical Conflict

5 True/False Questions

1. Direct Channel → intermediaries are inserted between the producer and consumers and perform numerous channel functions

   True        False

2. Examples of Exclusive Distribution → candy, newspapers, ATMs, and soft drinks

   True        False

3. Selling → assembling and protecting products at a convenient location to offer better customer service

   True        False

4. Intensive Distribution → - only one retail outlet in a specific geographical area carries the firm's products
   - typically chosen for specialty products or services

   True        False

5. Total Logistics Cost → - activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost
   - deals with decisions needed to move a product from the source of raw materials to consumption (the flow of the product)

   True        False