Course title :-Marketing channel and logistic management

Prepared by Mulugeta Yadessa

Part III: Multiple Choice Items

Instruction: Read the questions and choose the right answer from the given choices (alternatives) and
write the letter of your choice on the space provided at the separate answer sheet.

1. Which one of the following is not true about Logistics manager

A. Focus on meeting to customer requirements.
B. Perform planning, implementing and controlling
C. Try to create efficient, cost-effective flow and storage
D. Focus on only finished goods
E. All of the above
2. Logistical operations of an enterprise that focus on movement of finished products to consumers
A. Procurement
B. Market distribution
C. Manufacturing support
D. Purchasing
E. C and d
3. Which one of the following is not the reason for modifying the facility network
A. Change in product assortments,
B. Change in customers requirements
C. Change in suppliers requirements
D. Change in manufacturing requirements
E. None of the above
4. ______________ is components of logistics system that Provides place utility
A. Packaging
B. Facility structure,
C. Order management,
D. Transportation,
 E. Inventory
5. Which one of the following is true about Facilitators
A. They take title to goods
B. They neither take title to goods nor negotiate purchases or sales
C. They perform negotiation function
D. A and B
E. None of the above
6. Producer delegate some of the selling job to intermediaries for the following reasons except
A. Lack the financial resources to carry out direct marketing.
B. When Producers get greater return by increasing investment in their main business..
C. When Intermediaries normally achieve superior efficiency
D. All of the above
E. None of the above
7. All of the following activities found in a forward flow from the company to the customer except
A. Physical product ,
B. Finance
C. Product title,
D. Promotion
E. None of the above
8. Retailer exist in all of the following channel level in consumer market except
A. A three-level channel
B. A zero-level channel
C. A one-level channel
D. A two-level channel
E. None of the above
9. All are the same except
A. Door-to-door sales by manufacturer sales force
B. Indirect marketing channel
C. Zero level channel
D. Direct marketing channel
E. None of the above
10. All of the following channel members (intermediaries) exist both in consumer and industrial market
except
A. Agent
B. Producer
C. Retailer
D. Customer
E. None of the above
11. Intermediary that take title for the product, purchase inventory in huge bulk from the manufacturer
and then sell it forward to a retailer
A. Retailer –
B. Broker
C. Wholesaler
D. Agent
E. All of the above
12. Intermediaries do what the manufacture ask them because they are proud to be associated with The
manufacturer that is highly respected. This power of the manufacturer is
A. Legitimate power
B. Referent power
C. Expert power.
D. Coercive power..
E. None of the above .

13. Channel arrangement Modification becomes necessary when

A. The distribution channel is not working as planned,
B. Consumer buying patterns change,
C. The market expands,
D. New competition arises,
E. All of the above
 14. Intermiderie owned and operated by manufacturers but are physically separated from manufacturing
plants.
A. Manufacturers’ agents,
B. Manufacturers’ sales branches and offices
C. Commission merchants,
D. Brokers,
E. Selling agents,
15. Let’s assume that Glorious is the only distributor of Sony products is Ethiopia, this kind of
distribution strategy is called
A. Adaptive strategy
B. Intensive strategy
C. Exclusive strategy
D. Selective strategy
16. What makes the merchant wholesalers different from commission merchants?
A. Resell the product to industrial users
B. Physically handling products in relatively large quantities
C. Reselling the products in smaller quantities
D. Take title to the product
17. The kind of wholesalers which primarily engaged in buying, taking title to, storing and physically
handling products in relatively large quantities is
A. brokers,
B. Commission merchants
C. Merchant wholesalers
D. Manufacturer’s sales branches
18. Channel structures choice affected by

A. Market
B. Product
C. Company
D. Intermediary
E. All
19. Identify the right step of the paradigm of the channel design decision

A. Evaluating the variables affecting channel structure

B. Setting and coordinating distribution objectives
C. Selecting channel members
D. Specifying the distribution tasks
E. Choosing the best channel structure
F. Recognizing the need for a channel design decision
G. Developing possible alternative channel structures

A. DGEBAFC
B. FDBGEAC
C. FBDGAEC
D. FBGEDAC
20. Channel structure alternative selection method it would certainly be desirable if the channel manager
could take all possible channel structures, along with all the relevant variables, and “plug” these into
a set of equations, which would then yield the optimal channel structure.
A. Judgmental-heuristic approaches
B. Financial approach
C. Transaction cost analysis approach
D. Management science approaches
21. The rate applied to large quantity of products that move between two locations on a regular basis
which are special or specific rates published without regard to classification is:
 A. Common rate D. Rate administration
B. Exception rate E. None of the above
C. Commodity rate

22. Which of the following is true about logistics?

A. Logistics is the positioning of resource at the right time, in the right place, at the right
cost, at the right quality.
B. Logistics is the art and science of managing and controlling the flow of goods, energy,
information and other resources.
C. Logistics is the management of all activities which facilitate movement and the
coordination of supply and demand
D. All true statements

23. While traffic managers administer many different activities, they are fundamentally responsible for:
A. Operations management C. Rate negotiation
B. Freight control & logistical integration D. All
24. Which variable consists degree of standardization?
A. Market variables D. Intermediary variables
B. Product variables E. None of the above
C. Company variables
25. They are also independent middlemen who do not, for all or most of their business, take title to the
goods in which they deal, but who are actively involved in negotiator functions of buying and selling:
A. Merchant wholesalers
B. Manufacturers’ sales branches and offices
C. Agents, brokers, and commission merchants
D. None
26. It is among causes of channel conflict which, refers to the way an individual selects and interprets
environmental stimuli :
A. Role incongruities C. Perceptual differences
B. Resource scarcities D. Expectation differences
27. In evaluating the variables affecting channel structure, market variables include:
A. Market Geography C. Perishability
 B. Market Behavior D. A & B
28. It is a type of channel conflict exists when the manufacturer has established two or more channels
that sell to the same market:
A. Vertical channel conflict C. Multichannel channel conflict
B. Horizontal channel conflict D. None

29. Let’s assume that Glorious is the only distributor of Sony products in Ethiopia. This kind of
distribution strategy is

A. Intensive strategy D. Adaptive strategy

B. Exclusive strategy E. None of the above
C. Selective strategy F. ALL except D

30. A one-level channel in consumer market contains all of the following except?

A. Producer C. Wholesaler
B. Consumer D. Retailer

31. It is a means of resolving conflict in channel members, which is an effort by one organization to win
the support of the leaders of another organization by including them in advisory councils, boards of
directors, and the like:
A. Co-optation C. Arbitration
B. Joint membership D. Mediation
32. The manufacturer is so highly respected that intermediaries are proud to be associated with it:
A. Referent power B. Expert power C. Legitimate power D. Reward power
33. Firms engaged primarily in buying, taking title to, usually storing, and physically handling products
in relatively large quantities and then reselling the products in smaller quantities to retailers:
A. Merchant wholesalers C. Agents, brokers, and commission merchants
B. Manufacturers’ sales branches D. None
34. Costs not directly influenced by shipment volume which are serviced even when a company is not
operating, such as during a holiday or a strike is/are
A. Fixed costs C. Joint costs
B. Variable costs D. All of the above
E. None of the above
 35. A shipper perceives transporting Br 1000 of electronics equipment as more critical or
valuable than 1000 Br of coal since electronics are worth substantially more than the
coal. This kind of pricing system is
A. Cost of service D. Value of service
B. Combination pricing E. Net rate pricing
C. None of the above
36. Which one of the following is true about Facilitators ?
F. They take title to goods
G. They neither take title to goods nor negotiate purchases or sales
H. They perform negotiation function
I. A and B
J. None of the above
37. Intermediaries owned and operated by manufacturers but are physically separated from
manufacturing plants.
F. Manufacturers’ agents, D. Manufacturers’ sales branches and
offices
G. Commission merchants, E. Brokers,
H. Selling agents,
38. All of the following activities found in a forward flow from the company to the customer
except
F. Physical product , D. Finance
G. Product title, E. Promotion
H. None of the above
39. It is the management of all activities which facilitate movement and the coordination of
supply and demand in the creation of time and place utility.:
A. Marketing C. Finance
B. Purchasing D. Logistics
40. It is part of logistical operations of an enterprise which concerned with physical
movement of finished products to consumers:
A. Market distribution C. Manufacturing support
B. Purchasing D. None
41. It is a Transportation Economics driver, which refers to how product case dimensions fit
into transportation equipment:
A. Stowability B. Density B. Volume D. Distance

42. It permits a shipment to be stopped at an intermediate point between initial origin and
destination for unloading, storage, and/or processing:
A. Transit services B. Combination rates C. Proportional rates D. Freight
43. It is the practice of combining multiple smaller shipments from different suppliers into
one larger shipment to maximize efficiency and reduce transportation costs:
A. Carrier Administration C. Load planning
B. Freight consolidation D. None
44. Which of the following statement is a correct statement regarding channel conflict?
A. Conflict is an inherent behavioral dimension in the marketing channel
B. Channel managers Appraise the possible effects of conflicts
C. Conflict couldn’t affect channel efficiency
D. A & B
E. None
45. They are independent businesses that assist producers and manufacturers (and final users)
in the performance of negotiator functions and other distribution tasks:
A. Intermediaries (middlemen) C. Consumers
B. Purchasers D. Fabricators