1. A marketing channel is:

• A) A pricing strategy
• B) A set of interdependent organizations that help make a product or service available for use by consumers or businesses
• C) An advertising medium
• D) A product development process
  Answer: B) A set of interdependent organizations that help make a product or service available for use by consumers or businesses

2. Channel intermediaries include:

• A) Producers and consumers
• B) Wholesalers, retailers, and agents
• C) Manufacturers only
• D) Employees and shareholders
  Answer: B) Wholesalers, retailers, and agents

3. A direct marketing channel is:

• A) A channel that includes no intermediaries
• B) A channel that includes wholesalers and retailers
• C) A digital marketing strategy
• D) A communication channel between consumers and marketers
  Answer: A) A channel that includes no intermediaries

4. Indirect marketing channels involve:

• A) Direct sales to consumers
• B) The use of intermediaries such as wholesalers and retailers
• C) Exclusive agreements with one retailer
• D) Selling only through e-commerce platforms
  Answer: B) The use of intermediaries such as wholesalers and retailers

5. A multichannel distribution system is:

• A) Selling through one channel only
• B) Using multiple channels to reach customer segments
• C) Direct sales only
• D) Limited to online channels
  Answer: B) Using multiple channels to reach customer segments

6. Omnichannel marketing is:

• A) Selling in brick-and-mortar stores only
• B) A strategy that provides a seamless shopping experience across multiple channels such as online, mobile, and in-store
• C) A single-channel focus
• D) Wholesaler-focused distribution
  Answer: B) A strategy that provides a seamless shopping experience across multiple channels such as online, mobile, and in-store

7. Channel conflict refers to:

• A) Cooperation between different channel members
• B) Disagreement among channel members over roles, activities, or rewards
• C) A legal issue between companies
• D) A pricing issue between retailers
  Answer: B) Disagreement among channel members over roles, activities, or rewards

8. Horizontal conflict in a channel occurs when:

• A) Conflict arises between channel members at different levels
• B) Conflict occurs between firms at the same level, such as between retailers
• C) Disagreements arise between a manufacturer and wholesaler
• D) Conflict is resolved with a pricing strategy
  Answer: B) Conflict occurs between firms at the same level, such as between retailers

9. A vertical marketing system (VMS) consists of:

• A) Independent firms operating separately
• B) Channel members (producer, wholesaler, retailer) acting as a unified system
• C) Companies focusing only on online sales
• D) A direct-to-consumer strategy
  Answer: B) Channel members (producer, wholesaler, retailer) acting as a unified system

10. Corporate VMS refers to:

• A) Separate ownership of channel members
• B) One company owning all parts of the distribution channel
• C) A contractual agreement between channel members
• D) A pricing strategy used in retail
  Answer: B) One company owning all parts of the distribution channel

11. A contractual VMS involves:

• A) A lack of formal agreements between channel members
• B) Independent firms at different levels of production and distribution joining together through contracts
• C) A single company owning the distribution system
• D) Companies focusing only on direct marketing
  Answer: B) Independent firms at different levels of production and distribution joining together through contracts

12. Franchising is an example of:

• A) Corporate vertical marketing
• B) Contractual vertical marketing
• C) A horizontal marketing system
• D) A direct marketing channel
  Answer: B) Contractual vertical marketing

13. Administered VMS occurs when:

• A) There is ownership of the entire channel by one firm
• B) One dominant channel member has the power to coordinate the activities of other channel members
• C) No member has control over other members
• D) All channel members act independently
  Answer: B) One dominant channel member has the power to coordinate the activities of other channel members

14. Horizontal marketing system involves:

• A) A single company managing the entire distribution system
• B) Two or more companies at the same channel level joining to follow a new marketing opportunity
• C) Direct sales to customers
• D) Online sales only
  Answer: B) Two or more companies at the same channel level joining to follow a new marketing opportunity

15. Exclusive distribution is used when:

• A) A company wants its products available everywhere
• B) A company gives a limited number of dealers the exclusive right to distribute its products in their territories
• C) A company uses multiple wholesalers
• D) The product is sold directly to consumers
  Answer: B) A company gives a limited number of dealers the exclusive right to distribute its products in their territories

16. Intensive distribution refers to:

• A) Limited distribution through exclusive dealers
• B) Placing products in as many outlets as possible to achieve widespread market coverage
• C) Selling products only through online channels
• D) Limiting distribution to major cities
  Answer: B) Placing products in as many outlets as possible to achieve widespread market coverage

17. Selective distribution involves:

• A) Selling only through one exclusive retailer
• B) Using fewer intermediaries than intensive distribution but more than exclusive distribution
• C) Offering a product only through e-commerce channels
• D) Direct-to-consumer sales
  Answer: B) Using fewer intermediaries than intensive distribution but more than exclusive distribution

18. Multichannel conflict arises when:

• A) A company uses a single marketing channel
• B) A company uses multiple marketing channels and creates competition among its own distribution outlets
• C) Only one retailer is used in the distribution process
• D) Online and offline channels work together seamlessly
  Answer: B) A company uses multiple marketing channels and creates competition among its own distribution outlets

19. A pull strategy focuses on:

• A) Pushing products to retailers to promote
• B) Creating customer demand so consumers actively seek out the product
• C) Reducing product quality
• D) Using fewer distribution outlets
  Answer: B) Creating customer demand so consumers actively seek out the product

20. A push strategy involves:

• A) Encouraging consumers to request products from retailers
• B) Promoting products to intermediaries (wholesalers and retailers) who then push the product to the end consumer
• C) Selling products only through direct channels
• D) Limiting marketing efforts
  Answer: B) Promoting products to intermediaries (wholesalers and retailers) who then push the product to the end consumer

21. Channel design refers to:

• A) Determining the pricing strategy
• B) Structuring a company’s marketing channels to best meet customer needs
• C) Developing new products
• D) Creating marketing messages
  Answer: B) Structuring a company’s marketing channels to best meet customer needs

22. Gray marketing involves:

• A) Authorized distribution of products
• B) The unauthorized buying and selling of products outside the official distribution channels
• C) Selling counterfeit goods
• D) Direct-to-consumer marketing
  Answer: B) The unauthorized buying and selling of products outside the official distribution channels

23. Channel management focuses on:

• A) Developing advertising campaigns
• B) Selecting, managing, and motivating intermediaries to ensure effective product distribution
• C) Pricing products for different markets
• D) Setting production schedules
  Answer: B) Selecting, managing, and motivating intermediaries to ensure effective product distribution

24. Reverse logistics deals with:

• A) Forward distribution of products to customers
• B) Managing the flow of returned products, recycling, or disposal
• C) Setting product prices
• D) Offering discounts to retailers
  Answer: B) Managing the flow of returned products, recycling, or disposal

25. E-commerce has transformed distribution by:

• A) Increasing the reliance on wholesalers
• B) Reducing the need for physical stores and enabling direct-to-consumer sales
• C) Limiting the number of distribution channels
• D) Reducing global market opportunities
  Answer: B) Reducing the need for physical stores and enabling direct-to-consumer sales

Managing Retailing, Wholesaling, and Logistics

26. Retailing refers to:

• A) Selling products only to businesses
• B) The activities involved in selling goods or services directly to consumers for their personal use
• C) The activities involved in manufacturing products
• D) Distribution of products to wholesalers
  Answer: B) The activities involved in selling goods or services directly to consumers for their personal use

27. Wholesaling refers to:

• A) Selling directly to end consumers
• B) Activities involved in selling goods to retailers or businesses that buy for resale or business use
• C) Manufacturing products in bulk
• D) Distribution of products to retail stores only
  Answer: B) Activities involved in selling goods to retailers or businesses that buy for resale or business use

28. Logistics is concerned with:

• A) Pricing products
• B) Managing the efficient flow of goods, services, and information between the point of origin and the point of consumption
• C) Setting up retail stores
• D) Developing marketing campaigns
  Answer: B) Managing the efficient flow of goods, services, and information between the point of origin and the point of consumption

29. Retailers typically add value to products by:

• A) Producing goods
• B) Providing convenient locations, product variety, and customer service
• C) Reducing the number of intermediaries
• D) Increasing the size of distribution centers
  Answer: B) Providing convenient locations, product variety, and customer service

30. Category killer retailers are:

• A) Stores that specialize in one category and offer a vast selection, dominating that category
• B) Small local stores that offer only a limited range of products
• C) Online-only retailers
• D) Wholesalers that specialize in luxury goods
  Answer: A) Stores that specialize in one category and offer a vast selection, dominating that category

31. Convenience stores are characterized by:

• A) Offering a wide range of products at low prices
• B) Selling limited products in convenient locations, often at higher prices
• C) Specializing in bulk sales
• D) Focusing solely on e-commerce
  Answer: B) Selling limited products in convenient locations, often at higher prices

32. Supermarkets are primarily focused on:

• A) Offering only luxury goods
• B) Selling a wide range of food and household products
• C) Providing bulk sales to wholesalers
• D) Offering only online sales
  Answer: B) Selling a wide range of food and household products

33. Department stores are characterized by:

• A) Offering a single category of products
• B) Offering a wide range of product categories in separate departments within the same store
• C) Specializing in online sales
• D) Being small, local retailers
  Answer: B) Offering a wide range of product categories in separate departments within the same store

34. Discount stores aim to:

• A) Offer premium, high-end products at full price
• B) Sell products at lower prices, often by reducing costs and focusing on volume sales
• C) Limit the number of products available
• D) Sell only online
  Answer: B) Sell products at lower prices, often by reducing costs and focusing on volume sales

35. Off-price retailers specialize in:

• A) Selling high-end, premium goods at full price
• B) Selling brand-name merchandise at reduced prices due to excess inventory, discontinued items, or irregulars
• C) Offering only luxury services
• D) Direct-to-consumer sales
  Answer: B) Selling brand-name merchandise at reduced prices due to excess inventory, discontinued items, or irregulars

36. Specialty stores focus on:

• A) Offering a broad range of products in multiple categories
• B) Offering a deep assortment of products in a specific category
• C) Selling products at low prices
• D) Providing only online services
  Answer: B) Offering a deep assortment of products in a specific category

37. Franchising is:

• A) A type of retail strategy where a parent company allows an independent operator to use its business model and brand for a fee
• B) A direct sales approach
• C) Wholesaling to large retailers only
• D) Limited to online sales
  Answer: A) A type of retail strategy where a parent company allows an independent operator to use its business model and brand for a fee

38. E-commerce has transformed retailing by:

• A) Limiting the number of products available
• B) Enabling direct-to-consumer sales online without the need for physical stores
• C) Reducing global market opportunities
• D) Focusing only on local markets
  Answer: B) Enabling direct-to-consumer sales online without the need for physical stores

39. Wholesalers serve the function of:

• A) Selling directly to consumers
• B) Selling goods and services to retailers, industrial users, or other wholesalers
• C) Manufacturing products
• D) Creating marketing campaigns
  Answer: B) Selling goods and services to retailers, industrial users, or other wholesalers

40. Merchant wholesalers are:

• A) Companies that do not take ownership of goods
• B) Firms that buy goods from manufacturers, take ownership, and then resell them
• C) Retailers that sell directly to consumers
• D) E-commerce platforms
  Answer: B) Firms that buy goods from manufacturers, take ownership, and then resell them

41. Agents and brokers differ from wholesalers in that:

• A) They take title to the goods they sell
• B) They facilitate sales between buyers and sellers but do not take ownership of the goods
• C) They specialize in manufacturing products
• D) They sell goods directly to consumers
  Answer: B) They facilitate sales between buyers and sellers but do not take ownership of the goods

42. Logistics includes activities such as:

• A) Only setting product prices
• B) Warehousing, transportation, inventory management, and order processing
• C) Marketing and promotion
• D) Product development
  Answer: B) Warehousing, transportation, inventory management, and order processing

43. Just-in-time (JIT) inventory systems are designed to:

• A) Keep large amounts of inventory in warehouses
• B) Minimize inventory levels by receiving goods only as they are needed in the production process
• C) Increase product prices
• D) Reduce product availability
  Answer: B) Minimize inventory levels by receiving goods only as they are needed in the production process

44. Supply chain management focuses on:

• A) Product pricing strategies
• B) Coordinating and integrating all activities involved in sourcing, procurement, production, and logistics
• C) Developing new product lines
• D) Creating marketing messages
  Answer: B) Coordinating and integrating all activities involved in sourcing, procurement, production, and logistics

45. Reverse logistics involves:

• A) Forward distribution of products
• B) The process of returning products from consumers back to manufacturers or intermediaries for recycling, repair, or disposal
• C) Developing new product lines
• D) Online-only sales
  Answer: B) The process of returning products from consumers back to manufacturers or intermediaries for recycling, repair, or disposal

46. Warehousing in logistics refers to:

• A) The transportation of goods to customers
• B) Storing goods in large quantities until they are needed for sale or distribution
• C) Setting prices for products
• D) The process of creating new products
  Answer: B) Storing goods in large quantities until they are needed for sale or distribution

47. Transportation in logistics management is critical because:

• A) It has no impact on delivery times
• B) It affects the speed and cost of delivering products to customers
• C) It reduces the need for warehousing
• D) It limits product availability
  Answer: B) It affects the speed and cost of delivering products to customers

48. Order processing is a logistics activity that focuses on:

• A) Marketing campaigns
• B) Receiving, processing, and fulfilling customer orders efficiently
• C) Developing new product lines
• D) Reducing inventory levels
  Answer: B) Receiving, processing, and fulfilling customer orders efficiently

49. Cross-docking in logistics is:

• A) Storing products for long periods of time
• B) A practice where goods are received and immediately shipped out without being stored
• C) The process of setting prices
• D) A method of reducing product variety
  Answer: B) A practice where goods are received and immediately shipped out without being stored

50. Third-party logistics providers (3PLs) offer:

• A) Only retail services
• B) Integrated logistics services, including warehousing, transportation, and order fulfillment, outsourced to an external company
• C) Direct-to-consumer sales
• D) E-commerce platforms
  Answer: B) Integrated logistics services, including warehousing, transportation, and order fulfillment, outsourced to an external company

51. Cross-functional logistics teams are used to:

• A) Manage a single department
• B) Coordinate between different company departments like sales, operations, and logistics to improve overall efficiency
• C) Focus solely on product development
• D) Reduce warehouse capacity
  Answer: B) Coordinate between different company departments like sales, operations, and logistics to improve overall efficiency

52. Inventory management aims to:

• A) Maximize the number of products stored
• B) Balance the costs of holding inventory with the benefits of having products available when needed
• C) Focus only on pricing strategies
• D) Reduce the number of product lines
  Answer: B) Balance the costs of holding inventory with the benefits of having products available when needed

53. Just-in-time (JIT) systems reduce costs by:

• A) Holding large amounts of inventory at all times
• B) Minimizing inventory by receiving goods only as they are needed
• C) Increasing storage facilities
• D) Reducing delivery times by half
  Answer: B) Minimizing inventory by receiving goods only as they are needed

54. Bulk-breaking refers to:

• A) The process of storing large quantities of goods
• B) Dividing larger quantities into smaller units for resale by retailers or wholesalers
• C) A marketing strategy used by retailers
• D) Reducing transportation costs
  Answer: B) Dividing larger quantities into smaller units for resale by retailers or wholesalers

55. Order processing systems focus on:

• A) Manufacturing products
• B) Efficiently receiving, entering, and filling customer orders
• C) Pricing strategies
• D) Reducing production capacity
  Answer: B) Efficiently receiving, entering, and filling customer orders

56. Channel management decisions involve:

• A) Setting product prices
• B) Selecting, motivating, and evaluating channel members
• C) Focusing on product design
• D) Increasing the number of channels used
  Answer: B) Selecting, motivating, and evaluating channel members

57. Wheel of retailing theory suggests that:

• A) New retailers start with low prices and fewer services and gradually add services and raise prices as they grow
• B) Retailers always reduce prices over time
• C) Retail stores focus only on luxury goods
• D) E-commerce will replace traditional retailing
  Answer: A) New retailers start with low prices and fewer services and gradually add services and raise prices as they grow

58. Omni-channel retailing provides:

• A) A single channel for customer interaction
• B) A seamless experience for customers across multiple channels, including online, in-store, and mobile
• C) Only brick-and-mortar sales
• D) Exclusive direct-to-consumer sales
  Answer: B) A seamless experience for customers across multiple channels, including online, in-store, and mobile

59. Vertical integration in retailing refers to:

• A) Only selling products through online channels
• B) A company owning multiple levels of its supply chain, such as manufacturing, wholesaling, and retailing
• C) A company focusing only on product design
• D) Retailers forming partnerships with other retailers
  Answer: B) A company owning multiple levels of its supply chain, such as manufacturing, wholesaling, and retailing

60. Logistics networks are designed to:

• A) Maximize the number of intermediaries in the supply chain
• B) Optimize the flow of goods and information from the point of origin to the point of consumption
• C) Reduce customer interaction
• D) Increase product returns
  Answer: B) Optimize the flow of goods and information from the point of origin to the point of consumption

61. Transportation modes in logistics include:

• A) Only air and rail transport
• B) Various methods like truck, rail, air, water, and pipeline depending on cost, speed, and product type
• C) A single mode of transport for all goods
• D) Only international shipping methods
  Answer: B) Various methods like truck, rail, air, water, and pipeline depending on cost, speed, and product type

62. Order lead time in logistics refers to:

• A) The time taken to produce goods
• B) The time between placing an order and receiving the product
• C) The delivery time to retailers
• D) The time required to sell the product
  Answer: B) The time between placing an order and receiving the product

63. Break-bulk warehouses are designed to:

• A) Store large quantities of inventory for long periods
• B) Receive large shipments and break them into smaller quantities for distribution to retailers
• C) Manufacture products in bulk
• D) Focus only on direct-to-consumer sales
  Answer: B) Receive large shipments and break them into smaller quantities for distribution to retailers

64. Inventory turnover is:

• A) The rate at which a company sells and replaces its stock of goods over a specific period
• B) The number of new products introduced annually
• C) The total amount of inventory a company holds at any time
• D) A company’s total sales revenue
  Answer: A) The rate at which a company sells and replaces its stock of goods over a specific period

65. Supply chain refers to:

• A) The process of creating marketing campaigns
• B) The entire network of entities, from raw material suppliers to end consumers, involved in producing and delivering a product
• C) A pricing strategy used by retailers
• D) Direct sales to customers
  Answer: B) The entire network of entities, from raw material suppliers to end consumers, involved in producing and delivering a product

66. Retail positioning focuses on:

• A) Offering a wide range of products at low prices
• B) Differentiating a retailer from competitors by emphasizing certain features like price, service, or selection
• C) Reducing marketing efforts
• D) Reducing customer service options
  Answer: B) Differentiating a retailer from competitors by emphasizing certain features like price, service, or selection

67. Full-service retailers are characterized by:

• A) Offering limited customer support
• B) Providing extensive customer service, including personal shopping assistance, gift wrapping, and other value-added services
• C) Focusing only on price discounts
• D) Operating exclusively online
  Answer: B) Providing extensive customer service, including personal shopping assistance, gift wrapping, and other value-added services

68. Self-service retailers rely on:

• A) Customers serving themselves with minimal assistance from sales personnel
• B) Offering only premium services to customers
• C) Limiting the number of products available for purchase
• D) Providing high-touch, personal service
  Answer: A) Customers serving themselves with minimal assistance from sales personnel

69. Retail atmospherics refers to:

• A) The total revenue generated by a store
• B) The store’s physical layout, lighting, music, and decor, which are designed to create a specific mood or shopping experience
• C) Reducing the size of a store
• D) The supply chain management process
  Answer: B) The store’s physical layout, lighting, music, and decor, which are designed to create a specific mood or shopping experience

70. Logistics efficiency is measured by:

• A) Product pricing
• B) The speed, accuracy, and cost-effectiveness of moving products through the supply chain
• C) The number of distribution centers used
• D) Reducing the variety of products offered
  Answer: B) The speed, accuracy, and cost-effectiveness of moving products through the supply chain

71. Inventory carrying costs include:

• A) Marketing expenses
• B) The costs associated with storing and managing inventory, such as warehousing, insurance, and obsolescence
• C) The cost of producing new goods
• D) Retail pricing strategies
  Answer: B) The costs associated with storing and managing inventory, such as warehousing, insurance, and obsolescence

72. Multichannel retailers offer:

• A) Products only through physical stores
• B) Products through multiple channels such as brick-and-mortar stores, online platforms, and catalogs
• C) Only online sales
• D) Limited product categories for customers
  Answer: B) Products through multiple channels such as brick-and-mortar stores, online platforms, and catalogs

73. Omnichannel integration in retail involves:

• A) Limiting sales to physical locations
• B) Providing a seamless shopping experience across multiple channels, such as in-store, online, and mobile
• C) Reducing the variety of products offered
• D) Focusing solely on e-commerce sales
  Answer: B) Providing a seamless shopping experience across multiple channels, such as in-store, online, and mobile

74. Wholesaling functions include:

• A) Selling directly to consumers
• B) Bulk-breaking, storage, risk-bearing, and providing market information
• C) Retailing products in small quantities
• D) Offering direct-to-consumer discounts
  Answer: B) Bulk-breaking, storage, risk-bearing, and providing market information

75. Drop shippers are wholesalers that:

• A) Take possession of goods but do not physically handle or stock the products
• B) Maintain large inventories and handle goods
• C) Provide only online sales
• D) Handle retail store logistics only
  Answer: A) Take possession of goods but do not physically handle or stock the products

76. Rack jobbers are wholesalers who:

• A) Own and stock products at retailers’ locations and maintain inventory control
• B) Sell goods directly to consumers
• C) Focus solely on e-commerce
• D) Provide logistics services for manufacturers
  Answer: A) Own and stock products at retailers’ locations and maintain inventory control

77. Merchant wholesalers differ from agents because:

• A) Agents take title to goods
• B) Merchant wholesalers take title to goods, while agents facilitate sales without taking title
• C) Merchant wholesalers sell directly to consumers
• D) Agents own the goods they sell
  Answer: B) Merchant wholesalers take title to goods, while agents facilitate sales without taking title

78. Specialty wholesalers focus on:

• A) Selling a wide variety of goods
• B) Providing specific products, often in a narrow category, to a select group of retailers
• C) Offering high-end luxury products
• D) Selling only to online retailers
  Answer: B) Providing specific products, often in a narrow category, to a select group of retailers

79. Cash-and-carry wholesalers require:

• A) Payment terms of 30 days
• B) Immediate payment and customers to transport the goods themselves
• C) Delivery to retailers
• D) Payment on delivery only
  Answer: B) Immediate payment and customers to transport the goods themselves

80. Truck wholesalers perform the function of:

• A) Storing large inventories in warehouses
• B) Transporting goods directly to retailers and handling some selling activities on the spot
• C) Selling only to wholesalers
• D) Managing online sales only
  Answer: B) Transporting goods directly to retailers and handling some selling activities on the spot

81. Logistics partnerships between manufacturers and wholesalers aim to:

• A) Increase product costs
• B) Improve efficiency by coordinating supply chain activities, such as warehousing, inventory management, and transportation
• C) Focus solely on product design
• D) Reduce the need for multiple distribution channels
  Answer: B) Improve efficiency by coordinating supply chain activities, such as warehousing, inventory management, and transportation

82. Wholesaling intermediaries can be classified into:

• A) Manufacturers and consumers
• B) Merchant wholesalers, agents/brokers, and manufacturers’ sales branches
• C) Only online platforms
• D) Direct-to-consumer channels only
  Answer: B) Merchant wholesalers, agents/brokers, and manufacturers’ sales branches

83. Distribution intensity refers to:

• A) How much inventory is held by wholesalers
• B) The number of intermediaries used at each level of the distribution channel, such as intensive, selective, or exclusive distribution
• C) The speed of product delivery to consumers
• D) Reducing the number of product lines available
  Answer: B) The number of intermediaries used at each level of the distribution channel, such as intensive, selective, or exclusive distribution

84. Exclusive dealing agreements are used when:

• A) Wholesalers sell products from multiple brands
• B) Retailers agree to carry only the manufacturer’s products, often in exchange for special terms or exclusivity in their area
• C) Retailers sell competing brands
• D) E-commerce platforms are the primary sales channel
  Answer: B) Retailers agree to carry only the manufacturer’s products, often in exchange for special terms or exclusivity in their area

85. Channel power in distribution refers to:

• A) The ability of one channel member to influence other members’ actions within the distribution network
• B) The volume of products handled by wholesalers
• C) The price at which products are sold
• D) Only managing retail logistics
  Answer: A) The ability of one channel member to influence other members’ actions within the distribution network

86. Logistics information systems support:

• A) Pricing decisions
• B) Real-time data tracking, inventory management, and order processing for efficient supply chain management
• C) Advertising strategies
• D) Retail customer service
  Answer: B) Real-time data tracking, inventory management, and order processing for efficient supply chain management

87. Retailers’ success depends on:

• A) Offering the lowest possible prices
• B) Providing the right products, services, and experiences to attract target customers and build long-term relationships
• C) Selling products only online
• D) Reducing their product selection
  Answer: B) Providing the right products, services, and experiences to attract target customers and build long-term relationships

88. Multichannel distribution systems can create:

• A) Channel conflict between intermediaries
• B) Only more sales
• C) Fewer customer touchpoints
• D) Increased operating costs
  Answer: A) Channel conflict between intermediaries

89. Supply chain visibility refers to:

• A) The number of retailers in a channel
• B) The ability to track products, materials, and orders in real time throughout the supply chain
• C) Reducing the number of distribution points
• D) Online sales tracking only
  Answer: B) The ability to track products, materials, and orders in real time throughout the supply chain

90. Outsourcing logistics to a third-party logistics provider (3PL) helps companies:

• A) Reduce product availability
• B) Improve efficiency and focus on core business activities while the 3PL manages transportation, warehousing, and order fulfillment
• C) Reduce the number of intermediaries
• D) Increase product prices
  Answer: B) Improve efficiency and focus on core business activities while the 3PL manages transportation, warehousing, and order fulfillment

91. Vendor-managed inventory (VMI) is a system where:

• A) Retailers manage their own inventory
• B) The supplier takes responsibility for managing the inventory levels of the retailer and replenishing stock as needed
• C) Customers manage their orders directly
• D) E-commerce platforms track inventory
  Answer: B) The supplier takes responsibility for managing the inventory levels of the retailer and replenishing stock as needed

92. Lead time reduction is critical in logistics because:

• A) It increases product availability and reduces inventory holding costs
• B) It increases the amount of inventory needed
• C) It reduces the number of wholesalers
• D) It focuses only on customer service
  Answer: A) It increases product availability and reduces inventory holding costs

93. Efficient Consumer Response (ECR) is a strategy that aims to:

• A) Increase warehousing costs
• B) Improve supply chain efficiency by better synchronizing production, inventory, and deliveries with consumer demand
• C) Increase lead times for orders
• D) Reduce customer service touchpoints
  Answer: B) Improve supply chain efficiency by better synchronizing production, inventory, and deliveries with consumer demand

94. Warehouse management systems (WMS) provide:

• A) Marketing insights
• B) Software solutions to control the movement and storage of materials within a warehouse
• C) Price-setting strategies
• D) Sales performance tracking
  Answer: B) Software solutions to control the movement and storage of materials within a warehouse

95. Cross-docking in logistics helps:

• A) Increase warehousing costs
• B) Speed up the distribution process by receiving goods at a warehouse and immediately shipping them out without storage
• C) Increase the amount of stored inventory
• D) Decrease transportation efficiency
  Answer: B) Speed up the distribution process by receiving goods at a warehouse and immediately shipping them out without storage

96. Out-of-stock situations in retail lead to:

• A) Higher customer satisfaction
• B) Lost sales opportunities and decreased customer loyalty
• C) Increased product availability
• D) Increased sales promotions
  Answer: B) Lost sales opportunities and decreased customer loyalty

97. Freight forwarding services help companies by:

• A) Reducing the need for transportation
• B) Organizing and managing the international shipping of goods, including documentation, customs clearance, and transportation
• C) Selling directly to consumers
• D) Increasing warehousing capacity
  Answer: B) Organizing and managing the international shipping of goods, including documentation, customs clearance, and transportation

98. Third-party logistics (3PL) providers are important for businesses because:

• A) They reduce customer interaction
• B) They specialize in providing transportation, warehousing, and distribution services, allowing companies to outsource logistics management
• C) They focus only on e-commerce logistics
• D) They manufacture goods for retailers
  Answer: B) They specialize in providing transportation, warehousing, and distribution services, allowing companies to outsource logistics management

99. Cold chain logistics refers to:

• A) Transportation of high-value goods
• B) Managing the transportation and storage of temperature-sensitive products, such as food and pharmaceuticals, under controlled conditions
• C) Reducing lead time for online orders
• D) Providing direct sales to consumers
  Answer: B) Managing the transportation and storage of temperature-sensitive products, such as food and pharmaceuticals, under controlled conditions

100. Electronic data interchange (EDI) in logistics helps by:

• A) Replacing manual order processing
• B) Enabling the computer-to-computer exchange of business documents between supply chain partners for faster, more accurate transactions
• C) Reducing the need for wholesalers
• D) Increasing product returns
  Answer: B) Enabling the computer-to-computer exchange of business documents between supply chain partners for faster, more accurate transactions