Final exam adms2200 sample questions

Chapter 9—Product and Service Strategies MULTIPLE CHOICE 1. According to marketing decision makers, why do people buy products? ANS: B PTS: 1 DIF: 1 REF: 266 OBJ: 9-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 2. Using the broad application of the word product , how can a television set best be described? ANS: B PTS: 1 DIF: 2 REF: 266 OBJ: 9-1 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 3. Which of the following best describes a product? ANS: D PTS: 1 DIF: 1 REF: 266 OBJ: 9-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 4. Which of the following comes closest to providing a pure good? a. to acquire items that are distinctively different than the competitive offerings b. to satisfy their wants and needs c. to save time by selecting items that are easy to find on the shelves d. to satisfy price and value requirements a. as an obsolete technology in comparison with the Internet b. as a means of providing entertainment c. as a lucrative item for appliance stores d. as a machine used to receive broadcast signals a. the physical characteristics of an item that one can buy for personal, professional, or organizational use b. the costs and benefits that the seller promotes in various marketing messages c. assurances, reliability, and tangibles all at once d. a bundle of physical, service, and symbolic attributes designed to satisfy a customer’s wants and needs a. a company that manufactures and installs elevators b. a cleaning service Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: A PTS: 1 DIF: 1 REF: 266 OBJ: 9-1 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 5. What distinguishes a service from a good? ANS: C PTS: 1 DIF: 1 REF: 267 OBJ: 9-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 6. The moderately priced Days Inn and the upscale Four Seasons Hotel both provide sleeping accommodations, but their respective guests have considerably different expectations of service. Why do their expectations differ? ANS: B PTS: 1 DIF: 1 REF: 267 OBJ: 9-1 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 7. Approximately what percentage of the Canadian economy is made up of the service sector? ANS: C PTS: 1 DIF: 1 REF: 268 OBJ: 9-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 8. Which of the following companies is a pure service firm? c. a data storage company d. an advertising agency a. Services are intangible. b. Services are inseparable from service providers. c. Services are easy to standardize. d. Services are perishable. a. Companies cannot standardize services. b. Service quality shows wide variations. c. Services are inseparable from their providers. d. Services have a high perishable rate. a. 25 percent b. 50 percent c. 70 percent d. 90 percent Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: D PTS: 1 DIF: 2 REF: 268 OBJ: 9-1 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 9. Which of the following industries does NOT belong to the service sector? ANS: B PTS: 1 DIF: 1 REF: 268 OBJ: 9-1 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 10. How would you generally classify consumer goods such as milk, bread, and soft drinks? ANS: A PTS: 1 DIF: 2 REF: 270 OBJ: 9-2 BLM: Remember NOT: AACSB Reflective Thinking | TB&E Model Product 11. What type of product is marketed to consumers who may NOT yet recognize a need for them? ANS: D PTS: 1 DIF: 2 REF: 269 a. Walmart b. Microsoft c. Starbucks d. Royal Bank of Canada a. investment banking b. agriculture c. retailing d. health care a. as convenience products b. as utilitarian products c. as shopping products d. as specialty products a. specialty b. consumer c. convenience d. unsought Downloaded by vicky Singh (jasleensaggi11@gmail.com) OBJ: 9-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 12. Which of the following products are, for MOST consumers, unsought? ANS: C PTS: 1 DIF: 2 REF: 269 OBJ: 9-2 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 13. How might you categorize convenience products that customers constantly replenish in order to maintain a ready inventory? ANS: A PTS: 1 DIF: 1 REF: 270 OBJ: 9-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 14. Which of the following products would generally be classified as a staple? ANS: C PTS: 1 DIF: 1 REF: 270 OBJ: 9-2 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 15. Why do grocery stores usually display items such as candy, gum, and magazines near the checkout counter? a. designer clothes b. magazines c. long-term insurance d. furniture a. staples b. impulse items c. emergency items d. specialty items a. plumbing repair kit b. personal computer c. gasoline d. magazine a. because they are purchased on impulse b. because they are easier to replenish c. because they are subject to shoplifting Downloaded by vicky Singh (jasleensaggi11@gmail.com)

ANS: A PTS: 1 DIF: 1 REF: 270 OBJ: 9-2 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 16. What does a consumer expect when purchasing convenience products? ANS: B PTS: 1 DIF: 1 REF: 270 OBJ: 9-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 17. Which of the following products typically has the longest distribution channel? ANS: A PTS: 1 DIF: 2 REF: 272 OBJ: 9-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 18. Which of the following products relies LEAST on personal selling? ANS: D PTS: 1 DIF: 2 REF: 272 OBJ: 9-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 19. Which of the following are consumer shopping products? d. because they are purchased infrequently a. that they can purchase them without having full knowledge about what is sought b. that they can purchase them immediately and with minimal effort c. that they should purchase them after visiting numerous stores and comparing prices d. that they may have to travel any distance to get what is wanted a. convenience products b. staples c. specialty products d. shopping products a. specialty products b. shopping products c. unsought products d. convenience products a. Coca-Cola and Gatorade b. bread, milk, and gasoline Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: C PTS: 1 DIF: 2 REF: 270 OBJ: 9-2 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 20. Which of the following would MOST likely have the greatest influence on a decision to buy a heterogeneous shopping product? ANS: A PTS: 1 DIF: 3 REF: 270 OBJ: 9-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Product c. clothing, furniture, and appliances d. Rolex watches and BMW automobiles a. the product’s style b. the store’s name and reputation c. the store’s location d. the price and perceived value of the product Downloaded by vicky Singh (jasleensaggi11@gmail.com) 21. While in Best Buy, a customer takes a great deal of time comparing the quality, features, and prices of a number of refrigerators. What type of products is this customer examining? ANS: B PTS: 1 DIF: 2 REF: 270 OBJ: 9-2 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 22. What type of product are consumers primarily interested in when they are well aware of the brands they prefer and are willing to make a special effort to obtain them? ANS: D PTS: 1 DIF: 1 REF: 271 OBJ: 9-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 23. After researching and comparing several types of alarm clocks, Trisha decided on one that gives a choice of being wakened to music, bird calls, or ocean waves. In this case, what type of product would the alarm clock be classified as? ANS: A PTS: 1 DIF: 2 REF: 270 OBJ: 9-2 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 24. Ryan is looking for a professional watch that he buys, at most, once every few years. Since he doesn’t favour a particular brand, he spends a great deal of time comparing price and quality, as well as visiting the few retail outlets that sell high-end watches. What type of product is Ryan about to purchase? a. heterogeneous shopping products b. homogeneous shopping products c. homogeneous convenience products d. heterogeneous specialty products a. impulse b. convenience c. shopping d. specialty a. shopping b. impulse c. convenience d. specialty Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: D PTS: 1 DIF: 2 REF: 270 OBJ: 9-2 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product a. unsought b. specialty c. convenience d. shopping Downloaded by vicky Singh (jasleensaggi11@gmail.com)

ANS: C PTS: 1 DIF: 1 REF: 274 OBJ: 9-2 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 38. Why do raw materials resemble component parts and materials? ANS: B PTS: 1 DIF: 2 REF: 274 OBJ: 9-2 BLM: Higher Order NOT: AACSB |Reflective Thinking | TB&E Model Product 39. What are business products that are re-classified as raw materials called? ANS: C PTS: 1 DIF: 1 REF: 274 OBJ: 9-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Product b. accessory equipment c. component parts and materials d. supplies a. They are considered capital investments to be held for several years. b. They are part of the buyers’ final products. c. They are finished products before they enter into the production of other products. d. They are expended without finding their way into finished goods. a. price-sensitive items b. specialty products for the industrial market c. either farm products or natural products d. MRO items Downloaded by vicky Singh (jasleensaggi11@gmail.com) 40. Which of the following is NOT a raw material? ANS: D PTS: 1 DIF: 2 REF: 274 OBJ: 9-2 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 41. In the business market, what are computer paper, pencils, and office stationery examples of? ANS: C PTS: 1 DIF: 2 REF: 275 OBJ: 9-2 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 42. What is a company practising when it institutes a continuous effort to improve products and work processes? ANS: A PTS: 1 DIF: 1 REF: 276 OBJ: 9-2 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 43. Which of the following has a mandate of advancing the quality movement in Canada by providing advice on change management, organizing events to promote quality, and offering educational certification programs? a. coal b. copper c. iron ore d. steel a. maintenance items b. repair items c. operating supplies d. accessory equipment a. total quality management b. benchmarking c. ISO 9002 certification d. process improvement a. ISO 9002 b. Total Quality Management Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: C PTS: 1 DIF: 1 REF: 278 OBJ: 9-3 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 44. What is the first main activity involved in benchmarking? ANS: B PTS: 1 DIF: 1 REF: 278 OBJ: 9-3 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 45. Which of the following is NOT an activity for benchmarking? ANS: D PTS: 1 DIF: 2 REF: 278 OBJ: 9-3 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 46. Russell works for a cell phone provider. When dealing with customers he always conveys confidence that he can provide the exact assistance they need. Which service quality variable is Russell exhibiting? ANS: A PTS: 1 DIF: 2 REF: 279 OBJ: 9-3 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 47. What is a series of related products offered by one company called? c. the National Quality Institute d. Six Sigma a. identifying the world’s leading performers b. identifying internal processes to be improved c. identifying how the best goods are produced d. identifying critical market segments a. continuously repeating the process to search for and identify areas that need improvement b. comparing internal processes with similar processes of industry leaders c. identifying processes that need improvement d. producing more product output at a lower cost-per-unit a. assurance b. responsiveness c. empathy d. reliability Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: D PTS: 1 DIF: 1 REF: 280 OBJ: 9-4 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 48. Which of the following is a single product line? ANS: C PTS: 1 DIF: 2 REF: 280 OBJ: 9-4 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 49. What does the combination of product lines represent? ANS: A PTS: 1 DIF: 1 REF: 280 OBJ: 9-4 BLM: Remember NOT: AACSB Analytic | TB&E Model Product a. a product assortment b. a product mix c. a product formula d. a product line a. four-door sedans offered by various automakers b. 125-passenger jets manufactured by Airbus and Boeing c. Hershey Kisses in a variety of flavours d. different brands of toothpaste a. a company’s product mix b. a company’s product cluster c. a company’s product lifecycle d. a company’s product concept Downloaded by vicky Singh (jasleensaggi11@gmail.com)

50. If Honda were to acquire a bicycle manufacturer, what would it add to Honda’s product mix? ANS: B PTS: 1 DIF: 3 REF: 281 OBJ: 9-4 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 51. What is the number of product lines a firm offers referred to as? ANS: B PTS: 1 DIF: 1 REF: 281 OBJ: 9-4 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 52. What is adding individual offerings that appeal to different market segments known as? ANS: C PTS: 1 DIF: 1 REF: 282 OBJ: 9-4 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 53. Johnson & Johnson manufactures more than 90 brands in nearly 50 product categories. What is the total number of products the company manufactures called? a. depth b. width c. length d. cluster a. depth b. width c. clusters d. length a. product mix b. product line c. product line extension d. product line depth a. product line extension b. product cluster map c. product mix length d. product life cycle expectancy Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: C PTS: 1 DIF: 2 REF: 281 OBJ: 9-4 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 54. In what process do products pass through a series of stages from their initial appearance to their decline? ANS: D PTS: 1 DIF: 1 REF: 282 OBJ: 9-5 BLM: Remember NOT: AACSB Analytic | TB&E Model Product a. product life potential b. promotional cycle c. pricing cycle d. product life cycle Downloaded by vicky Singh (jasleensaggi11@gmail.com) 55. Potential customers are unaware of a product during its introductory stage; therefore, what does promotion in this stage concentrate on? ANS: A PTS: 1 DIF: 2 REF: 283 OBJ: 9-5 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 56. What type of problem is common for companies during the introductory stages of a product life cycle? ANS: B PTS: 1 DIF: 2 REF: 283 OBJ: 9-5 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 57. During what stage of the product life cycle should a firm’s marketing strategy emphasize stimulating initial demand? ANS: A PTS: 1 DIF: 1 REF: 283 OBJ: 9-5 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 58. At what stage of the product life cycle does a firm start to realize substantial profits from its investments? a. explaining the product features, uses, and benefits b. reducing the size of the available market through selective advertising c. test-marketing d. communicating new uses for the product a. Competitors rush into the market with offerings similar to those of the innovator. b. Technical problems are common as companies fine-tune product design. c. Heavy promotional outlays emphasize differences that exist between products. d. Profits for the product category decline, sometimes actually becoming negative. a. introduction b. stabilization c. growth d. maturity a. decline stage b. introductory stage c. growth stage d. maturity stage Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: C PTS: 1 DIF: 2 REF: 284 OBJ: 9-5 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 59. What is a characteristic of the growth stage of the product life cycle? ANS: B PTS: 1 DIF: 2 REF: 284 OBJ: 9-5 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 60. Widgets were introduced a few years ago. The number of companies making widgets has increased recently, drawn by high profits. At the same time, differentiated products for different market segments have begun to emerge. What stage of the product life cycle do widgets appear to be in? ANS: A PTS: 1 DIF: 2 REF: 284 OBJ: 9-5 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 61. During what stage of the product life cycle does competition between brands intensify? ANS: D PTS: 1 DIF: 2 REF: 284-285 OBJ: 9-5 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 62. During what stage of the product life cycle does product differentiation and heavy advertising MOST often occur? a. low prices are established b. effective competitors improve and modify their products c. early buyers of the product make their initial purchases d. buyers are hesitant to make repurchases a. growth b. introductory c. maturity d. decline a. diminishing demand period b. introductory stage c. growth stage d. maturity stage a. maturity Downloaded by vicky Singh (jasleensaggi11@gmail.com)

ANS: A PTS: 1 DIF: 1 REF: 297 OBJ: 10-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 2. Jim stops at the local convenience store on his way home to buy laundry detergent. He goes in thinking he’ll purchase his usual brand, but ends up buying another because it is on sale. What stage of brand loyalty is Jim at? ANS: C PTS: 1 DIF: 2 REF: 297 OBJ: 10-1 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 3. What has a product that has achieved the status of brand insistence also achieved? ANS: B PTS: 1 DIF: 1 REF: 297 OBJ: 10-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 4. Laura wants a particular brand of golf ball, but her local pro shop is sold out. Instead, she buys a substitute. How can Laura’s behaviour be described? a. brand recognition b. brand preference c. brand insistence d. brand equity a. brand insistence b. brand awareness c. brand preference d. brand recognition a. price competitiveness to keep its status b. a monopoly position with its consumers c. a distinctive “identity character” d. movement from the unknown to the known category a. as brand awareness b. as brand insistence c. as brand preference d. as brand recognition Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: C PTS: 1 DIF: 2 REF: 297 OBJ: 10-1 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product Downloaded by vicky Singh (jasleensaggi11@gmail.com) 5. When does brand recognition occur as a stage of brand loyalty? ANS: A PTS: 1 DIF: 1 REF: 297 OBJ: 10-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 6. What level of brand loyalty are luxury items often representative of? ANS: B PTS: 1 DIF: 1 REF: 297 OBJ: 10-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 7. How are generic products characterized? ANS: B PTS: 1 DIF: 2 REF: 297-298 OBJ: 10-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 8. What is the primary factor that attracts a consumer to a generic product? ANS: C PTS: 1 DIF: 2 REF: 298 OBJ: 10-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Product a. when the product becomes familiar to the consumer b. when the product is inexpensive c. when the consumer sees or recognizes the product and chooses it over its competition d. when the product is first introduced or test-marketed a. brand comprehension b. brand insistence c. brand recognition d. brand preference a. by having a brand name owned by a manufacturer or other producer b. by plain labels, little or no advertising, and no brand names c. by being national brands sold exclusively by a single retail chain d. by possessing a brand name owned by a wholesaler or retailer a. package design b. family branding c. low price d. ease of distribution Downloaded by vicky Singh (jasleensaggi11@gmail.com) 9. The Kirkland brand is owned by Costco, and the products can be purchased only at Costco stores. Costco contracts with manufacturers to produce and package products under the Kirkland name. What is this arrangement called? ANS: D PTS: 1 DIF: 2 REF: 298 OBJ: 10-1 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product a. family branding b. individual branding c. generic branding d. private labelling Downloaded by vicky Singh (jasleensaggi11@gmail.com)

10. The Debbie Travis line of paints and home décor products is available only through Canadian Tire stores. What is this type of product distribution strategy? ANS: C PTS: 1 DIF: 2 REF: 299 OBJ: 10-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 11. What type of brand is Colgate toothpaste an example of? ANS: B PTS: 1 DIF: 2 REF: 299 OBJ: 10-1 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 12. Lipton markets tea, herbal tea, and iced tea under the Lipton name. What is this strategy? ANS: A PTS: 1 DIF: 2 REF: 299 OBJ: 10-1 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 13. Dawn, Joy, and Ivory are dish liquid brands manufactured by Proctor & Gamble. What is the branding strategy for these products? a. declining life cycle branding b. unique branding c. captive branding d. exclusive branding a. a family brand b. an individual brand c. a generic brand d. a private brand a. family branding b. extension branding c. individual product branding d. private label branding a. private branding b. family branding c. generic branding d. individual branding Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: D PTS: 1 DIF: 2 REF: 299 OBJ: 10-1 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 14. What type of brand should a company strongly consider when it wishes to emphasize a market segmentation strategy for its products? ANS: D PTS: 1 DIF: 2 REF: 299 OBJ: 10-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 15. A firm elects to use family branding. What should the products be? ANS: A PTS: 1 DIF: 1 REF: 299 OBJ: 10-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 16. What is the added value called that a certain brand name gives to a product in the marketplace? ANS: D PTS: 1 DIF: 1 REF: 300 OBJ: 10-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 17. How might a company be able to market a product successfully at a higher price? a. family branding b. captive branding c. generic branding d. individual branding a. similar in quality, or the firm risks harming its overall product image b. sufficiently different so as not to compete directly with each other c. sold in different geographic markets so customers do not realize the relationship d. sold only to a single, large retail chain to protect the manufacturer’s reputation a. brand knowledge b. brand esteem c. brand recognition d. brand equity a. by its patented trademark b. by its brand mark Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: C PTS: 1 DIF: 2 REF: 300 OBJ: 10-2 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 18. How does Young & Rubicam’s Brand Asset Valuator model identify the dimension of brand personality called “relevance”? ANS: B PTS: 1 DIF: 3 REF: 301 OBJ: 10-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 19. Which of the following best describes global brand equity? ANS: A PTS: 1 DIF: 3 REF: 300 OBJ: 10-2 BLM: Remember NOT: AACSB Analytic | TB&E Model International Perspective 20. Which of the following is NOT an aspect or dimension of Young & Rubicam’s Brand Asset Valuator model? ANS: D PTS: 1 DIF: 2 REF: 301 c. by its brand equity d. by its trade name a. as the extent of consumer awareness of a brand and the understanding of what kind of product it stands for b. as the real and perceived appropriateness of a brand to a big consumer segment c. as the way in which brand equity is assigned to the brand by evaluating institutions d. as a brand’s ability to stand apart from competitors a. It is a global brand that sells at least 20 percent of the products outside the home country. b. It is difficult to evaluate as not every foreign company tracks market share. c. It includes two components, traditional sales and Internet sales. d. It is of interest only when companies are involved in mergers, partnerships, or strategic alliances. a. differentiation b. relevance c. esteem d. price Downloaded by vicky Singh (jasleensaggi11@gmail.com) OBJ: 10-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 21. In Young & Rubicam’s Brand Asset Valuator model, what is the measure of the real and perceived appropriateness of a brand to a large consumer segment called? ANS: B PTS: 1 DIF: 2 REF: 301 OBJ: 10-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 22. In Young & Rubicam’s Brand Asset Valuator model, what is the extent of consumer awareness of a brand and the understanding of what the good or service represents called? ANS: A PTS: 1 DIF: 2 REF: 301 OBJ: 10-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 23. What are category managers responsible for? ANS: B PTS: 1 DIF: 2 REF: 301 OBJ: 10-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 24. Which of the following is NOT a responsibility of a category manager? a. brand equity b. relevance c. esteem d. price a. knowledge b. esteem c. recognition d. equity a. research and development of the growing category b. the profitability of their product groups c. distribution channels rather than brands d. mass-market advertising and not in-store merchandising a. setting performance standards and measuring actual results against the standard b. finding growth opportunities c. staffing the national sales teams d. determining the marketing mix of the product assortment within the category Downloaded by vicky Singh (jasleensaggi11@gmail.com)

ANS: D PTS: 1 DIF: 2 REF: 304 OBJ: 10-3 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 34. What does trade dress refer to? ANS: A PTS: 1 DIF: 1 REF: 304 OBJ: 10-3 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 35. What is the leaping jaguar hood ornament featured on cars of the same name an example of? ANS: B PTS: 1 DIF: 2 REF: 304 OBJ: 10-3 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 36. What was the original purpose of packaging? ANS: C PTS: 1 DIF: 1 REF: 305 OBJ: 10-3 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 37. Which of the following is NOT a main role of packaging in today’s marketplace? c. monitoring for trademark infringement d. registration for trademarks a. visual cues used in branding that create an overall look for a product b. a promotional philosophy of targeting all sales efforts to the trade c. the general size of the packaging used by a product, regardless of how plain d. uniforms worn by company employees while doing their jobs a. the company’s private brand b. the company’s trade dress c. the company’s brand identity d. the company’s individual mark a. controlling costs b. identifying products and communicating usage c. protecting products from physical damage d. complying with government regulations Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: B PTS: 1 DIF: 2 REF: 305 OBJ: 10-3 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 38. The makers of Sucrets throat lozenges recently changed from a traditional “little metal box” packaging to a plastic bubble-pack that is the same physical size as the tin box. What is a potential danger of this decision? ANS: D PTS: 1 DIF: 3 REF: 306 OBJ: 10-3 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 39. Which of the following is NOT accomplished by packaging created for the purpose of marketing assistance? ANS: D PTS: 1 DIF: 1 REF: 306 OBJ: 10-3 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 40. What is Bic’s application of its name to disposable razors and utility lighters an example of? a. assisting in marketing the product b. promoting recycling to consumers c. protecting the product from physical damage, spoilage, and theft d. being cost-effective a. It will raise the cost of the product. b. There are occasional shortages of this packaging material. c. The product may not be adequately protected. d. Consumers may prefer the old reusable package. a. enhancing shelf visibility b. offering convenience for the consumer c. changing consumer behaviour d. locating new markets for existing products a. brand extension b. line extension c. brand licensing d. brand preference Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: A PTS: 1 DIF: 2 REF: 307 OBJ: 10-3 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 41. An apparel manufacturer decides to create a line of T-shirts depicting the most popular soft drinks on the market. The images would include Coke, Pepsi, Sprite, Mountain Dew, and Dr. Pepper. What would this venture involve? ANS: C PTS: 1 DIF: 2 REF: 307 OBJ: 10-3 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 42. More than 90 percent of cereal is consumed at breakfast, but ads for Kellogg’s Cracklin’ Oat Bran say it tastes like oatmeal cookies and makes “a great snack anytime.” What strategy is Kellogg’s implementing with this product? ANS: A PTS: 1 DIF: 2 REF: 308 OBJ: 10-4 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 43. Why can product positioning be important to a new product development strategy? ANS: C PTS: 1 DIF: 3 REF: 308 OBJ: 10-4 BLM: Remember NOT: AACSB Analytic | TB&E Model Product a. line extension b. brand extension c. brand licensing d. brand marking a. market penetration b. market development c. product development d. product diversification a. because its results are shown by strong brand recognition, but not by brand insistence b. because it is never used with family brands, only individual brands c. because it reflects consumers’ perceptions of the product’s advantages and disadvantages d. because the product is at eye level on the shelf, which allows an advantageous position Downloaded by vicky Singh (jasleensaggi11@gmail.com) Downloaded by vicky Singh (jasleensaggi11@gmail.com)

44. General Motors Automobiles acquired Hughes Aircraft Corporation, a firm that makes aircraft components and electronics. What product development strategy is this acquisition an example of? ANS: D PTS: 1 DIF: 3 REF: 309 OBJ: 10-4 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 45. What does the product development strategy of product positioning refer to? ANS: A PTS: 1 DIF: 2 REF: 308 OBJ: 10-4 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 46. What is locating new markets for existing products called? ANS: B PTS: 1 DIF: 2 REF: 308 OBJ: 10-4 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 47. Which of the following is an example of a market penetration strategy for new product development? a. market penetration b. market development c. product development d. product diversification a. consumers’ perceptions of a product’s attributes, uses, and quality, advantages and disadvantages b. the attempt to increase sales of some existing products in some existing markets c. a strategy that specifically concentrates on finding completely new markets for currently existing products d. the introduction of new products into identifiable or established markets a. market penetration b. market development c. product development d. product diversification a. Procter & Gamble sells its current traditional products in new overseas market segments. b. Ford Motor Company introduces an electric car. Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: D PTS: 1 DIF: 2 REF: 308 OBJ: 10-4 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product c. Black & Decker sells small home appliances. d. Morton Salt advertises a way to use salt and vinegar to make a homemade metal polish. Downloaded by vicky Singh (jasleensaggi11@gmail.com) 48. Welch’s uses commercials promoting the health benefits of grape juice to target seniors and get them to purchase a product they had seldom consumed in the past. What new product development strategy is this an example of? ANS: B PTS: 1 DIF: 2 REF: 308 OBJ: 10-4 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 49. What is the introduction of brand new products into readily identifiable or established markets referred to as? ANS: A PTS: 1 DIF: 1 REF: 308 OBJ: 10-4 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 50. In keeping with its corporate strategy of “building a global luxury accessories business,” Ralph Lauren introduced a new line of footwear. In business terms, how would the actions of Ralph Lauren be described? ANS: C PTS: 1 DIF: 2 REF: 308 OBJ: 10-4 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 51. What is product cannibalization? a. market penetration b. market development c. product development d. product diversification a. product development strategy b. product positioning strategy c. product diversification strategy d. product improvement strategy a. as market penetration b. as market development c. as product development d. as product diversification a. the expected outcome from the implementation of market penetration b. the erosion of a competitor’s market share Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: D PTS: 1 DIF: 1 REF: 309 OBJ: 10-4 BLM: Remember NOT: AACSB Analytic | TB&E Model Product c. the erosion of an equity brand due to the brand strategy of a competitor d. the erosion of sales due to other products in the same product line Downloaded by vicky Singh (jasleensaggi11@gmail.com)

62. What is a new product committee? ANS: D PTS: 1 DIF: 1 REF: 311 OBJ: 10-5 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 63. What are product managers also known as? ANS: C PTS: 1 DIF: 1 REF: 312 OBJ: 10-5 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 64. What is the approximate new-product failure rate? ANS: D PTS: 1 DIF: 2 REF: 312 OBJ: 10-6 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 65. What is the systematic approach to new product development called in which products are developed in an orderly series of steps from one department to the next? a. a task force of experts assigned to generate new product ideas b. a group of experts permanently assigned to generate, evaluate, and implement new product projects c. the employees, suppliers, and customers that are a part of the relationship marketing process d. the most common arrangement for activities related to developing a new product a. product directors b. trade-name managers c. brand managers d. product line directors a. 25 percent b. 37 percent c. 66 percent d. 80 percent a. phased development b. a parallel approach c. PERT (program evaluation and review technique) d. CPM (critical path method) Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: A PTS: 1 DIF: 1 REF: 313 OBJ: 10-6 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 66. What is the stage of new product development during which ideas with commercial potential are separated from those NOT meeting company objectives? ANS: C PTS: 1 DIF: 1 REF: 314 OBJ: 10-6 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 67. What type of marketing research project is undertaken during the business analysis stage of the new product development process and often uses focus groups and in-store polling to gather data? ANS: D PTS: 1 DIF: 2 REF: 314 OBJ: 10-6 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 68. What is the purpose of test-marketing? ANS: B PTS: 1 DIF: 1 REF: 314 OBJ: 10-6 BLM: Remember NOT: AACSB Analytic | TB&E Model Product 69. Which of the following items would seldom be test-marketed? a. idea generation b. business analysis c. screening d. evaluation a. telephone screening b. idea generation c. sample distribution d. concept testing a. to subject the product idea to additional study prior to its actual development b. to verify that the product will perform well in a real-life business environment c. to separate ideas with commercial potential from those that will not meet company objectives d. to evaluate the compatibility of the product with organizational resources a. potato chips b. postal system sorting equipment Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: B PTS: 1 DIF: 1 REF: 315 OBJ: 10-6 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 70. Which of the following is a crown corporation that oversees the standards system in Canada? ANS: C PTS: 1 DIF: 1 REF: 315 OBJ: 10-6 BLM: Remember c. cellular telephones d. breakfast cereals a. Federal Standards Council b. NAFTA Council c. Standards Council of Canada d. Council for Standards in Canada Downloaded by vicky Singh (jasleensaggi11@gmail.com) 71. Aspirin has been used for almost a century to treat pain, as well as to reduce inflammation and fever. Recent studies indicate that the regular use of low-dosage aspirin can reduce the incidence of heart attacks and strokes. Bayer Company is trying to capitalize on this new finding and increase sales to potential customers by which of the following strategies? ANS: B PTS: 1 DIF: 3 REF: 308 OBJ: 10-4 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product 72. A cereal company sent free samples of a new cereal to a researched list of potential customers. Which of the following BEST describes the stage in the consumer adoption process that was accelerated? ANS: C PTS: 1 DIF: 3 REF: 309 OBJ: 10-5 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Product Chapter 11—Marketing Channels and Supply Chain Management MULTIPLE CHOICE 1. What are the two critical components of a distribution strategy? ANS: A PTS: 1 DIF: 1 REF: 326 OBJ: 11-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 2. What is an organized system of marketing institutions and relationships a. Market Penetration b. Market Development c. Product Development d. Product Diversification a. Awareness b. Interest c. Evaluation d. Adoption a. marketing channels and logistics and supply chain management b. physical distribution and relationship marketing c. location and cost d. warehousing and transportation Downloaded by vicky Singh (jasleensaggi11@gmail.com)

called that promotes the physical flow and ownership of goods and services from producer to consumer or business user? ANS: D PTS: 1 DIF: 1 REF: 326 OBJ: 11-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 3. Why do marketing channels play a key role in marketing strategy? ANS: B PTS: 1 DIF: 2 REF: 326 OBJ: 11-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 4. In which of the following decision areas does physical distribution NOT extend beyond transportation? ANS: C PTS: 1 DIF: 2 REF: 326 OBJ: 11-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution a. an intermediary institution b. a marketing fulfillment organization c. retail marketing d. a marketing channel a. because they provide criteria for promotional expenditures b. because they provide the means by which products move from producer to ultimate user c. because they allow more participants to contribute to the economy d. because they extend the amount of time it takes between the between producer and consumer a. inventory control b. material handling c. risk analysis d. protective packaging Downloaded by vicky Singh (jasleensaggi11@gmail.com) 5. Who are marketing intermediaries? ANS: A PTS: 1 DIF: 1 REF: 327 OBJ: 11-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 6. Which marketplace generally has the longest distribution channels? ANS: B PTS: 1 DIF: 2 REF: 328 OBJ: 11-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 7. How does direct selling as a marketing channel carry goods? ANS: D PTS: 1 DIF: 1 REF: 328 OBJ: 11-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 8. When is direct selling MOST common? ANS: A PTS: 1 DIF: 2 REF: 329 OBJ: 11-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution a. middlemen that operate between producers and consumers or business users b. management consulting firms that advise producers on distribution strategy c. “personal shoppers” who are paid to purchase products for busy customers and businesses d. financial institutions that arrange financing terms for business purchases a. business-to-business b. consumer c. not-for-profit d. service firms a. directly from producer to retail storage warehouse b. directly from producer to channel captain c. directly from producer to intermediary that will take title and possession d. directly from producer to ultimate consumer or business purchaser a. during raw material purchases in the B2B marketplace b. during purchases between retailers and consumers c. during product purchases that do not require installation d. during product purchases that require little demonstration Downloaded by vicky Singh (jasleensaggi11@gmail.com) 9. Which of the following is an example of direct selling to the consumer market? ANS: D PTS: 1 DIF: 2 REF: 329 OBJ: 11-1 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Distribution a. a purchase of hair-care products from a beauty salon b. a car purchase from a Honda dealer c. a SONY television purchase at Best Buy d. a party plan selling jewellery Downloaded by vicky Singh (jasleensaggi11@gmail.com) 10. What results from business customers being more geographically concentrated and fewer in number than individual consumers? ANS: A PTS: 1 DIF: 2 REF: 332 OBJ: 11-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 11. How does the traditional marketing channel proceed? ANS: B PTS: 1 DIF: 2 REF: 330 OBJ: 11-1 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 12. Cynthia, a marketing director for a chemical company, is looking for an independent intermediary that will take title to the goods. Who is Cynthia looking for? ANS: B PTS: 1 DIF: 2 REF: 330 OBJ: 11-1 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Distribution 13. What is the term industrial distributor essentially synonymous with? ANS: C PTS: 1 DIF: 1 REF: 330 a. shorter business channels compared to consumer goods channels b. moving products effectively through wholesale and retail markets simultaneously c. reduction in price from producer to user d. more middlemen and unique channel structures than consumer channels a. from producer to business user b. from producer to wholesaler to retailer to consumer c. from producer to agent to business user d. from producer to agent to wholesaler to retailer to customer a. an extended channel member b. an industrial distributor c. a direct seller d. a reverse channel seller a. franchiser b. middle user c. wholesaler d. retailer Downloaded by vicky Singh (jasleensaggi11@gmail.com)

ANS: A PTS: 1 DIF: 1 REF: 334 OBJ: 11-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 26. What occurs when a selective distribution strategy is chosen by a firm? ANS: C PTS: 1 DIF: 2 REF: 334 OBJ: 11-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 27. While exclusive distribution is legal for companies first entering a market, what does such an agreement violate if used by firms with a sizable market share seeking to bar competitors from the market? ANS: C PTS: 1 DIF: 1 REF: 335 OBJ: 11-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 28. Lakeview Industries contracts with Marine Motor Distributors to carry its newly patented outboard engine. In exchange for exclusive dealership rights, Marine Motor has agreed to carry the full line of nautical clothing accessories offered by Lakeview. What can this agreement best be described as? ANS: B PTS: 1 DIF: 2 REF: 335 OBJ: 11-2 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Distribution a. The firm seeks to distribute its products through all available channels in its trade areas. b. A single wholesaler or retailer in an area is granted exclusive rights to sell its line. c. Only a limited number of retailers in a market area can handle its line. d. The number of product outlets available to the consumer is unlimited. a. a distributor contract b. a tying agreement c. the Competition Act d. a vertical territory restriction a. a distributor contract b. a tying agreement c. a channel selection d. an exclusive dealing agreement Downloaded by vicky Singh (jasleensaggi11@gmail.com) 29. When can an intermediary be eliminated from a marketing channel? ANS: A PTS: 1 DIF: 2 REF: 336 OBJ: 11-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 30. What must a wholesaler do to grow profitably in a competitive environment? ANS: D PTS: 1 DIF: 2 REF: 336 OBJ: 11-2 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 31. Who is the dominant and controlling member of a marketing channel? ANS: C PTS: 1 DIF: 1 REF: 336 OBJ: 11-3 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 32. Who is primarily responsible for achieving cooperation that resolves conflict among marketing channel members? a. when another intermediary or a new system replaces it b. when the elimination is demanded by a retailer c. when there is mutual consent between manufacturer and wholesaler d. when the consumer prefers to buy wholesale a. cut costs in every possible area b. make as many tying agreements as possible c. move into exclusive distribution of a majority of product lines that are to be carried d. provide better service at a lower cost than manufacturers or retailers can do themselves a. the vertical lead b. the producer c. the channel captain d. the wholesaler that sells to the retailer a. the manufacturer b. the channel captain c. the channel power broker d. the wholesaler Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: B PTS: 1 DIF: 2 REF: 336-337 OBJ: 11-3 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 33. What type of channel conflict is between two or more wholesalers or two or more retailers? ANS: C PTS: 1 DIF: 2 REF: 337 OBJ: 11-3 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution a. competitive b. vertical c. horizontal d. cross-channel Downloaded by vicky Singh (jasleensaggi11@gmail.com) 34. What type of marketing channel conflict can result when identically branded products are carried in competing retail pharmacies, discount houses, department stores, convenience stores, and mail-order houses? ANS: D PTS: 1 DIF: 2 REF: 337 OBJ: 11-3 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Distribution 35. What would occur between KitchenAid and retailers if KitchenAid established an electronic storefront where customers could purchase mixers and accessories from the company’s website? ANS: A PTS: 1 DIF: 3 REF: 337 OBJ: 11-3 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Distribution 36. What are goods called when they are manufactured abroad under license from a Canadian manufacturer, and then sold in the Canadian market in competition with Canadian-produced goods from the Canadian manufacturer? ANS: C PTS: 1 DIF: 1 REF: 337 OBJ: 11-3 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 37. What is a planned marketing channel system called that is designed to improve distribution efficiency and cost-effectiveness through functional integration? a. coercive b. vertical c. competitive d. horizontal a. vertical channel conflicts b. horizontal channel conflicts c. exclusive dealing agreements d. tying agreements a. black market goods b. inferior goods c. grey goods d. horizontal goods a. an intensive marketing system Downloaded by vicky Singh (jasleensaggi11@gmail.com)

ANS: D PTS: 1 DIF: 2 REF: 338 OBJ: 11-4 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution b. a horizontal marketing system c. an exclusive marketing system d. a vertical marketing system Downloaded by vicky Singh (jasleensaggi11@gmail.com) 38. Sherwin-Williams Paint Company sells the paint it manufactures through its company-owned retail paint stores. What type of marketing system is the company’s marketing channel? ANS: A PTS: 1 DIF: 2 REF: 338 OBJ: 11-4 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Distribution 39. What is a major difference between an administered vertical marketing system and a contractual system? ANS: B PTS: 1 DIF: 3 REF: 338 OBJ: 11-4 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 40. What is the difference between a retail cooperative and a wholesale- sponsored voluntary chain? ANS: C PTS: 1 DIF: 3 REF: 338-339 OBJ: 11-4 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 41. What is the sequence of suppliers and activities that contributes to creating and delivering merchandise called? a. corporate b. horizontal c. administered d. contractual a. Administered marketing systems are larger than contractual systems. b. Administered systems depend on channel captains, whereas contractual systems depend on formal agreements. c. Administered systems usually have common names and similar inventories, whereas contractual systems may include non-competing members. d. Contractual systems depend on effective working relationships built up over the years, whereas administered systems depend upon finite control. a. The wholesaler buys ownership shares of the retail operations. b. The cooperative has private label brands. c. The retailers purchase ownership shares of the cooperative. d. The wholesaler-sponsored voluntary chain has contractual agreements. a. a supply chain Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: A PTS: 1 DIF: 1 REF: 340 OBJ: 11-5 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution b. a distribution contract c. a logistics channel d. a retail cooperative Downloaded by vicky Singh (jasleensaggi11@gmail.com) 42. What does the supply chain begin with? ANS: D PTS: 1 DIF: 2 REF: 340 OBJ: 11-5 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 43. What is managing warehouse and storage facilities a part of? ANS: D PTS: 1 DIF: 2 REF: 341 OBJ: 11-5 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 44. What is an improved or supplemental service called that is added to the supply chain to provide enhanced benefits, but is NOT expected by the customer? ANS: A PTS: 1 DIF: 1 REF: 341 OBJ: 11-5 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 45. What is technology that uses a tiny chip with identification information that can be read by a scanner from a distance called? ANS: A PTS: 1 DIF: 2 REF: 341 OBJ: 11-5 BLM: Remember NOT: AACSB Technology | TB&E Model a. the finished good rolling off the end of the production line b. firms seeking new markets for their products c. the product being loaded aboard the rail car for shipment d. the raw material inputs for the manufacturing process of a product a. downstream supply chain management b. backward integration c. forward integration d. upstream supply chain management a. value-added service b. demarketing c. cost-plus products d. optimization a. Radio frequency identification b. Universal Product Code c. enterprise resource technology d. logistics technology Downloaded by vicky Singh (jasleensaggi11@gmail.com)

ANS: C PTS: 1 DIF: 1 REF: 344 OBJ: 11-6 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution Downloaded by vicky Singh (jasleensaggi11@gmail.com) 55. Pennzoil products are shipped to the Canadian Tire warehouse regularly. Assuming Pennzoil ships three truckloads biweekly, it is in a position to negotiate rates with a trucking company. What is the discounted rate called? ANS: D PTS: 1 DIF: 2 REF: 345 OBJ: 11-6 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Distribution 56. Which of the following is a characteristic of common carriers moving freight? ANS: D PTS: 1 DIF: 1 REF: 345 OBJ: 11-6 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 57. A home-furnishings distributor needs to ship products to another warehouse 500 kilometres away. The company vans are needed for local deliveries, so the warehouse must call an outside carrier to ship the products. What type of freight carrier will the company MOST likely call? ANS: B PTS: 1 DIF: 2 REF: 345 OBJ: 11-6 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Distribution 58. Which of the following is a characteristic of private carriers? a. insider rate b. customer rate c. class rate d. contract rate a. move if freight is non-hazardous b. move by limited-rate contract c. move for private contracts d. move by all modes of transport a. private carrier b. common carrier c. contract carrier d. intermodal freight company a. They are also called institutional carriers. b. They observe strict rate and service regulations. Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: D PTS: 1 DIF: 1 REF: 345 OBJ: 11-6 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 59. What type of carrier is the “backbone of the transportation industry”? ANS: B PTS: 1 DIF: 1 REF: 345 OBJ: 11-6 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 60. What is the MOST efficient form of transportation for coal, grains, nonmetallic minerals, and lumber products? ANS: C PTS: 1 DIF: 2 REF: 346 OBJ: 11-7 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Distribution 61. What form of transportation is in control of the largest share of the freight business as measured in tonne-kilometres? ANS: B PTS: 1 DIF: 2 REF: 346 OBJ: 11-7 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 62. What does the term tonne-kilometre refer to? c. They are regional carriers. d. They do not offer services for hire. a. private carrier b. common carrier c. institutional carrier d. bulk carrier a. air cargo b. motor freight c. railroads d. water carriers a. Air carriers b. Railroads c. Water carriers d. Motor carriers a. moving one cubic metre of freight one kilometre Downloaded by vicky Singh (jasleensaggi11@gmail.com) ANS: C PTS: 1 DIF: 2 REF: 346 OBJ: 11-7 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 63. What is the shipping activity of a 1000-tonne shipment that has moved 1000 kilometres? ANS: C PTS: 1 DIF: 2 REF: 346 OBJ: 11-7 BLM: Higher Order NOT: AACSB Reflective Thinking | TB&E Model Distribution 64. What percentage of all consumer goods is transported by the trucking industry? ANS: D PTS: 1 DIF: 2 REF: 346 OBJ: 11-7 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution b. moving one tonne longer than 100 kilometres c. moving one tonne of freight one kilometre d. moving a full load one kilometre a. 10 000 tonne-kilometres b. 100 000 tonne-kilometres c. 1 000 000 tonne-kilometres d. 2 000 000 tonne-kilometres a. 25 percent b. 50 percent c. 75 percent d. 90 percent Downloaded by vicky Singh (jasleensaggi11@gmail.com)

65. Why does the trucking industry receive higher revenues per tonne shipped? ANS: C PTS: 1 DIF: 2 REF: 346 OBJ: 11-7 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 66. What type of train runs back and forth between a single loading point and a single destination to deliver one commodity? ANS: D PTS: 1 DIF: 2 REF: 346 OBJ: 11-7 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 67. What type of train bypasses intermediate terminals to speed up schedules and may carry a variety of commodities? ANS: D PTS: 1 DIF: 2 REF: 346 OBJ: 11-7 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 68. What are bulky, low-unit-value commodities efficiently transported by? ANS: C PTS: 1 DIF: 2 REF: 346 a. The trucking industry charges more. b. Government regulation limits the fees that the railways can charge. c. Trucking concentrates on shipping manufactured products. d. Truck drivers haul smaller loads. a. a containerized train b. a piggyback train c. an intermodal train d. a unit train a. a containerized train b. a unit train c. an intermodal train d. a run-through train a. run-through trains b. double-stack container trains c. barge lines d. motor carriers Downloaded by vicky Singh (jasleensaggi11@gmail.com) OBJ: 11-7 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 69. What is the form of transportation that has the lowest transport cost per tonne? ANS: B PTS: 1 DIF: 1 REF: 347 OBJ: 11-7 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution a. railroad b. water freight c. air freight d. pipeline Downloaded by vicky Singh (jasleensaggi11@gmail.com) 70. Which of the following is the MOST accurate statement concerning pipelines? ANS: B PTS: 1 DIF: 1 REF: 348 OBJ: 11-7 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 71. Which of the following is an advantage of pipeline transport? ANS: C PTS: 1 DIF: 2 REF: 348 OBJ: 11-7 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 72. What is the MOST effective means of transporting products such as natural gas and crude oil? ANS: C PTS: 1 DIF: 1 REF: 348 OBJ: 11-7 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution 73. What is the air freight industry currently facing? ANS: A PTS: 1 DIF: 1 REF: 348 OBJ: 11-7 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution a. They are regulated by common carrier rates. b. They are ranked third in number of tonne-kilometres transported. c. They are a relatively fast means of shipping due to their 24-hour availability. d. They are dependable but a high-maintenance carrier. a. accommodation of only select products b. limited and specialized transport locations c. low maintenance d. careful and slow speed of transport a. by water carrier b. by piggyback c. by pipeline d. by bulk motor carrier a. overnight delivery service growth that has leveled off b. unprecedented growth in market share of freight hauling c. competition from foreign air carriers d. deregulation Downloaded by vicky Singh (jasleensaggi11@gmail.com) 74. What is the highest cost mode of transportation? ANS: B PTS: 1 DIF: 1 REF: 348 OBJ: 11-7 BLM: Remember NOT: AACSB Analytic | TB&E Model Distribution a. overnight common carrier b. air freight c. non-stop rail express d. high-pressure pipeline Downloaded by vicky Singh (jasleensaggi11@gmail.com)