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Basic Marketing: A Global Managerial Approach, 10/e

Stanley J. Shapiro
Kenneth B. Wong, Queens School of Business
William D. Perreault, University of North Carolina
E. Jerome McCarthy, Michigan State University

Physical Distribution

Quiz Questions


1	Logistics is another common name for physical distribution.
		A)	True
		B)	False


2	For many physical goods, firms spend half or more of their total marketing dollars on physical distribution activities.
		A)	True
		B)	False


3	Trucking rates are roughly one half of railroad rates.
		A)	True
		B)	False


4	Every firm should try to use the just-in-time approach to physical distribution.
		A)	True
		B)	False


5	Trying to reduce the cost of individual functional activities may actually increase total distribution costs.
		A)	True
		B)	False


6	Transportation is facing increased regulation in Canada and around the world.
		A)	True
		B)	False


7	When planning physical distribution, the marketing manager should:
		A)	maximize the speed of delivery.
		B)	make use of a distribution centre.
		C)	minimize the cost of transportation.
		D)	set the customer service level so that every customer can get the product exactly when he or she wants it.
		E)	minimize the cost of distribution for a given customer service level.


8	Good marketing strategy planners know that:
		A)	the cost of shipping some "high-value" products to users is less than 5 percent of their selling prices.
		B)	transporting costs may limit a marketing manager's possible target markets.
		C)	transporting is vital for mass distribution and modern urban life.
		D)	the transporting costs for some bulky or low-value products may be greater than their manufacturing costs.
		E)	all of the above are true.


9	Railroads decided to offer pool car services because:
		A)	they wanted to attract more small shippers.
		B)	they wanted to encourage large shippers to put several carloads on the same train.
		C)	there was little competition from trucking firms.
		D)	they felt customers should pay only for services they actually used, even if other services were available.
		E)	many shippers wanted to be able to redirect carloads to new destinations.


10	Due to a fire at one of its plants, General Motors no longer needed the seatbelts it had ordered from Magna. Although the seatbelts had already been shipped by rail, Magna was able to arrange for the railroad to deliver them to another customer in another city. Magna probably took advantage of:
		A)	pool car service.
		B)	diversion in transit.
		C)	drop-shipping.
		D)	piggyback service.
		E)	containerization.


11	A marketing manager who wants to ship small quantities (700 kg) of relatively high-value products short distances at an economical cost should use:
		A)	trucks.
		B)	air freight.
		C)	railroads.
		D)	inland waterways.
		E)	pipelines.


12	Trucks:
		A)	compete aggressively with railroads for high-value shipments.
		B)	offer diversion in transit services to compete with trains for agricultural shipments.
		C)	are very slow compared to ships, and this makes it hard to compete effectively.
		D)	are the most expensive of any of the modes.
		E)	All of the above are true.


13	Considering weight, which one of the following transporting modes usually has the lowest cost?
		A)	railroads
		B)	pipelines
		C)	trucks
		D)	waterways
		E)	airways


14	Containerization:
		A)	is commonly used for international shipments from Japan.
		B)	is widely used by railroads, but has not caught on with the other modes.
		C)	has increased competition between railroads and water shippers since both offer this service.
		D)	makes it easier to load and unload products, but it increases the risk of damage.
		E)	None of the above is true.


15	The railroad service that picks up truck trailers at a producer's location, loads them onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's door is:
		A)	pool car service.
		B)	fast freight.
		C)	piggyback service.
		D)	pool car service.
		E)	diversion in transit.


16	Freight forwarders can charge shippers lower rates than the basic carriers because they:
		A)	only handle large shipments.
		B)	combine the small shipments of many shippers into more economical shipping quantities.
		C)	will only deliver to selected locations.
		D)	reserve the right to decide on the destination to which products will be shipped.
		E)	both b and c.


17	Which of the regrouping activities is the main work of a freight forwarder?
		A)	sorting
		B)	accumulating
		C)	bulk-breaking
		D)	assorting
		E)	none of the above


18	A marketing manager might greatly improve his marketing mix by:
		A)	sharing the storage function (and costs) with intermediaries.
		B)	shifting the storing job to a specialized storage facility.
		C)	encouraging final consumers to store some products for future consumption.
		D)	adjusting the time products will be held by channel members.
		E)	all of the above.


19	There are big shifts in demand for the snowblowers produced by Neige Company. Its need for storage facilities also varies. Neige Co. should think about using:
		A)	diversion in transit.
		B)	piggyback service.
		C)	public warehousing facilities.
		D)	distribution centres.
		E)	containerization.


20	Which of the following statements about inventory and storage is TRUE?
		A)	Achieving customer service goals makes a large inventory almost inevitable.
		B)	Minimizing storage costs will lead to lower total distribution costs.
		C)	Decisions about inventory levels are usually not of concern to marketing managers—since inventory levels are best determined based on the amount of the product produced.
		D)	a distribution centre is used to avoid unnecessary storing costs.
		E)	only government agencies can store products in public warehouses.


21	The collaboration between supermarkets and their suppliers to create efficient, paperless links between them is called:
		A)	pool service.
		B)	co-operative buying.
		C)	category killers.
		D)	efficient customer response.
		E)	global product mandates.

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