Prelim Exam: Marketing Management Exam Questions!

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  • 1/30 Questions

    Fast but expensive form of shipment.

    • Water Vessels
    • Airplane
    • Railroad
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About This Quiz

The 'Prelim Exam: Marketing Management Exam Questions!' assesses knowledge on the distribution and transportation within marketing management. It focuses on understanding the flow of goods from producers to consumers, aiming to optimize cost and efficiency.

Prelim Exam: Marketing Management Exam Questions! - Quiz

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  • 2. 

    ______ is a marketing function that involves the storage or holding of goods between the time of production and final use.

    • Warehousing

    • Distribution

    • Retailing

    Correct Answer
    A. Warehousing
    Explanation
    Warehousing is a marketing function that involves the storage or holding of goods between the time of production and final use. This means that warehousing plays a crucial role in the supply chain process by providing a place to store and manage inventory until it is needed by customers. By effectively managing the storage and distribution of goods, warehousing helps to ensure that products are available when and where they are needed, thus facilitating the smooth flow of goods from production to consumption.

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  • 3. 

    _________ is the actual transfer or movement of goods and people from one place to another.

    • Management

    • Transportation

    • Distribution

    Correct Answer
    A. Transportation
    Explanation
    Transportation refers to the physical movement of goods and people from one location to another. It involves the use of various modes of transport such as road, rail, air, and sea to transfer goods and individuals. Transportation is an essential component of logistics and supply chain management as it ensures that products reach their intended destinations in a timely and efficient manner. It plays a crucial role in facilitating trade, economic growth, and social connectivity by enabling the movement of goods and people across different regions and countries.

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  • 4. 

    The type of loading characteristics determines the cost of the delivery.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The loading characteristics refer to the specific requirements and conditions for loading and unloading goods during delivery. These characteristics can include factors such as the size, weight, fragility, and special handling needs of the items being transported. Depending on the loading characteristics, additional equipment, manpower, or specialized services may be required, which can increase the cost of the delivery. Therefore, the statement that the type of loading characteristics determines the cost of the delivery is true.

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  • 5. 

    ___________ is concerned with activities involved in trasferring of goods from producers to final consumers and users.

    • Distribution

    • Production

    • Management

    Correct Answer
    A. Distribution
    Explanation
    Distribution is the correct answer because it refers to the process of transferring goods from producers to final consumers and users. This includes activities such as transportation, warehousing, and retailing. Distribution ensures that products are delivered to the right place, at the right time, and in the right quantity, making it an essential aspect of the supply chain.

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  • 6. 

    Warehouses with advance handling system and is controlled by a computer is referred to as _____.

    • Private warehouses

    • Automated warehouses

    • Traditional warehouses

    Correct Answer
    A. Automated warehouses
    Explanation
    Automated warehouses are referred to as warehouses with advance handling systems that are controlled by a computer. This means that the operations and processes within the warehouse, such as inventory management, order picking, and transportation, are automated and controlled by computer systems. This automation allows for increased efficiency, accuracy, and productivity in warehouse operations.

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  • 7. 

    The farther the location of the recipient of the goods, the higher the cost of the delivery.

    • Distance

    • Loading characteristics

    • Risk of Loss or Damage

    Correct Answer
    A. Distance
    Explanation
    The cost of delivery increases as the distance between the sender and the recipient of the goods increases. This is because transportation costs, such as fuel and labor, tend to be higher for longer distances. Additionally, longer distances may require multiple modes of transportation or additional handling, which can further increase the delivery cost. Therefore, the farther the location of the recipient, the higher the cost of the delivery.

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  • 8. 

    Which of the following is the main goal of Distribution?

    • Maximize the user human resources to distribute the products.

    • Minimize the transportation cost by using the same transportation in different products.

    • Get the right goods to the right place at the right time at at least possible cost.

    Correct Answer
    A. Get the right goods to the right place at the right time at at least possible cost.
    Explanation
    The main goal of distribution is to ensure that the right goods are delivered to the right place at the right time and at the lowest possible cost. This involves efficient management of logistics and transportation to minimize expenses while meeting customer demands. Maximizing the use of human resources and minimizing transportation costs are important factors in achieving this goal, but the ultimate objective is to deliver the goods efficiently and cost-effectively.

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  • 9. 

    Most personal income is spent at retail.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement suggests that a significant portion of personal income is used for retail purchases. This is likely because individuals need to buy goods and services for their daily needs and wants. Retail stores offer a wide range of products, making them a common destination for consumers to spend their income. Additionally, retail therapy and the desire for new or trendy items may also contribute to the high spending at retail establishments. Therefore, it is reasonable to conclude that the statement is true.

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  • 10. 

    _______ is the management of the physical flow of products ad the establishment of the efficient flow system.

    • Retailing

    • Wholesaling

    • Physical Distribution

    • Distributive Constitution

    Correct Answer
    A. Physical Distribution
    Explanation
    Physical distribution refers to the management of the physical flow of products and the establishment of an efficient flow system. This involves activities such as transportation, warehousing, inventory management, and order processing. By effectively managing these processes, companies can ensure that products are delivered to customers in a timely and cost-effective manner. Physical distribution plays a crucial role in supply chain management and is essential for businesses to meet customer demands and maintain a competitive advantage in the market.

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  • 11. 

    _______ includes the sale and all activities directly related to the sale of products or services to those who are buying for business use.

    • Retailing

    • Wholesaling

    • Distribution

    Correct Answer
    A. Wholesaling
    Explanation
    Wholesaling includes the sale and all activities directly related to the sale of products or services to those who are buying for business use. This involves selling goods in large quantities to retailers, other businesses, or institutional buyers, rather than directly to individual consumers. Wholesalers typically purchase goods from manufacturers or other suppliers in bulk and then sell them to retailers or other businesses at a higher price, allowing for a profit margin. They play a crucial role in the supply chain by providing a link between producers and retailers, helping to efficiently distribute products to the market.

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  • 12. 

    This transportation's advantage is low cost but its greatest disadvantage is it is slow in delivering the goods.  It might take you days to reach the destination,

    • Water Vessels

    • Trucks

    • Railroad

    Correct Answer
    A. Water Vessels
    Explanation
    Water vessels, such as ships or boats, have the advantage of low cost in transportation. They can carry large quantities of goods at a relatively low cost compared to other modes of transportation. However, their greatest disadvantage is that they are slow in delivering the goods. Due to their dependence on waterways and potential delays in ports or canals, it might take days or even weeks to reach the destination.

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  • 13. 

    This is characterized by the ability to move shipments economically, at varying sizes, short distances and deliver shipments to any point of the country served roads and highways.

    • Railroad

    • Trucks

    • Water Vessels

    Correct Answer
    A. Trucks
    Explanation
    Trucks are the correct answer because they have the ability to move shipments economically, at varying sizes, short distances, and can deliver shipments to any point of the country served by roads and highways. Unlike railroads or water vessels, trucks offer flexibility and accessibility to deliver goods directly to their destination, making them a popular choice for transporting shipments within a country.

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  • 14. 

    Market esposure where a product is available in almost all outlets.

    • Intensive distribution

    • Selective distribution

    • Exclusive distribution

    Correct Answer
    A. Intensive distribution
    Explanation
    Intensive distribution refers to a strategy where a product is made available in almost all outlets. This means that the product is widely distributed and easily accessible to consumers. It involves placing the product in as many retail locations as possible, maximizing its market exposure. This strategy is commonly used for fast-moving consumer goods or products with high demand. By adopting intensive distribution, companies aim to reach a larger customer base and increase their market share.

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  • 15. 

    This is commonly used for shopping goods like ready to wear apparels, appliances or furniture.

    • Selective distribution

    • Intensive Distribution

    • Exclusive Distribution

    Correct Answer
    A. Selective distribution
    Explanation
    Selective distribution is the correct answer because it refers to a distribution strategy where a limited number of retailers are chosen to sell a product. This strategy is commonly used for shopping goods like ready to wear apparels, appliances, or furniture. By carefully selecting retailers, the company can ensure that their products are available in a sufficient number of outlets while maintaining some level of control over their distribution network. This approach is often preferred when the product requires special knowledge or customer service, and when the company wants to maintain a certain level of exclusivity or brand image.

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  • 16. 

    A market exposure where the product is sold by only one type of middleman in a given geographic area.

    • Selective distribution

    • Intensive Distribution

    • Exclusive Distribution

    Correct Answer
    A. Exclusive Distribution
    Explanation
    Exclusive distribution refers to a market exposure strategy where a product is sold by only one type of middleman in a specific geographic area. This means that the product is exclusively available through a single distributor or retailer, limiting its availability to other middlemen or channels. This strategy is often used for high-end or luxury products, where maintaining control over distribution and ensuring a premium brand image is important. By restricting distribution to a single middleman, the company can have better control over pricing, promotion, and customer experience.

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  • 17. 

    Is the final link between consumers and producers.

    • Wholesaling

    • Retailing

    • Distributor

    Correct Answer
    A. Retailing
    Explanation
    Retailing is the correct answer because it refers to the process of selling goods or services directly to the end consumer. It involves activities such as displaying, promoting, and selling products in physical or online stores. Retailers act as the final link between producers or wholesalers and consumers, as they purchase products from wholesalers or distributors and make them available to the general public. Therefore, retailing plays a crucial role in connecting consumers with producers by providing a platform for the sale of goods and services.

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  • 18. 

    Which of the following are are the two classifications of Distribution?

    • Physical Distribution

    • Distributive Constitution

    • Wholesaling

    • Retailing

    Correct Answer(s)
    A. Physical Distribution
    A. Distributive Constitution
    Explanation
    Physical Distribution and Distributive Constitution are the two classifications of Distribution. Physical Distribution refers to the activities involved in the movement and storage of goods from the manufacturer to the consumer. It includes transportation, warehousing, inventory management, and order processing. Distributive Constitution, on the other hand, refers to the legal and regulatory framework that governs the distribution of goods and services. It includes laws related to contracts, competition, consumer protection, and intellectual property rights. Both classifications play a crucial role in ensuring the efficient and effective distribution of goods in the market.

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  • 19. 

    Commonly found in highways from Metro Manila to the provinces.

    • Roadside Stand

    • Retail Public Market

    • Huckstering

    Correct Answer
    A. Roadside Stand
    Explanation
    Roadside stands are commonly found in highways from Metro Manila to the provinces. These stands are small businesses set up along the road where vendors sell various goods such as fruits, vegetables, snacks, and drinks. They provide convenience to travelers who can easily stop by and purchase items without having to go to a traditional market. Roadside stands are a common sight along highways, making them the correct answer in this context.

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  • 20. 

    Merchant middlemen are those who assist in the transfer of title.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement is false because merchant middlemen do not assist in the transfer of title. They act as intermediaries between buyers and sellers, facilitating the exchange of goods or services. However, the transfer of title is typically handled by legal mechanisms such as contracts or deeds.

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  • 21. 

    Which of the following are the major items to consider in computing warehousing cost?

    • Capital invested in products

    • Taxes

    • Insurance

    • Tips for government agencies

    Correct Answer(s)
    A. Capital invested in products
    A. Taxes
    A. Insurance
    Explanation
    The major items to consider in computing warehousing cost are capital invested in products, taxes, and insurance. Capital invested in products refers to the amount of money tied up in inventory, which includes the cost of purchasing and storing products. Taxes are another significant factor as they can vary based on the location of the warehouse and the value of the goods stored. Insurance is crucial to protect against potential losses or damages to the inventory. Tips for government agencies are not directly related to warehousing costs, so they are not considered major items in this context.

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  • 22. 

    Which of the following are factors determining transportation rates?

    • Distance

    • Type of equipment required

    • Services required

    • Loading characteristics

    • Type of company

    Correct Answer(s)
    A. Distance
    A. Type of equipment required
    A. Services required
    A. Loading characteristics
    Explanation
    The factors determining transportation rates include distance, type of equipment required, services required, and loading characteristics. Distance plays a significant role as longer distances usually result in higher transportation costs. The type of equipment required also affects rates, as specialized equipment may be more expensive to transport. Additionally, the services required, such as expedited shipping or additional handling, can impact the rates. Lastly, the loading characteristics, such as the weight and size of the cargo, can influence the transportation costs. The type of company is not mentioned as a factor in determining transportation rates.

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  • 23. 

    Peddlers in public markets, bus terminals or those who go house to house

    • Direct Selling

    • Huckstering

    • Direct Orders

    Correct Answer
    A. Huckstering
    Explanation
    Huckstering refers to the act of selling goods or services in a persuasive or aggressive manner, often by peddlers who go door to door or operate in public markets and bus terminals. This term specifically implies a more informal and sometimes pushy approach to selling, as opposed to direct selling or direct orders which may involve a more structured and professional sales process.

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  • 24. 

    What are the reasons why storage is necessary?

    • Some goods are produced seasonally

    • Some goods are consumed regularly

    • For possible protection

    • For storage of large quantities

    • For accreditation of Government Agencies

    • Products require special storage

    Correct Answer(s)
    A. Some goods are produced seasonally
    A. Some goods are consumed regularly
    A. For possible protection
    A. For storage of large quantities
    A. Products require special storage
    Explanation
    Storage is necessary for various reasons. Firstly, some goods are produced seasonally, meaning they are only available during certain times of the year. Therefore, they need to be stored to ensure a continuous supply throughout the year. Additionally, some goods are consumed regularly, and storage is necessary to maintain a consistent availability for consumers. Furthermore, storage is needed for possible protection, as it helps safeguard goods from theft, damage, or spoilage. Moreover, storage is necessary for large quantities of goods that cannot be immediately used or sold. Lastly, certain products require special storage conditions, such as temperature control or specific handling, making storage essential for their preservation.

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  • 25. 

    This method of transportation's advantage is its ability to handle bulky products at a low cost over a long distance.

    • Railroad

    • Trucks

    • Water Vessels

    Correct Answer
    A. Railroad
    Explanation
    Railroad transportation has the advantage of being able to handle bulky products at a low cost over a long distance. Railways are designed to accommodate large and heavy loads, making them ideal for transporting goods that are too big or heavy for other modes of transportation. Additionally, rail transport is known for its efficiency and cost-effectiveness, making it a preferred choice for long-distance shipping.

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  • 26. 

    What is the importance of Insurance as a major item in computing warehousing cost?

    • It add cost to the products stored

    • It add security to the product

    • It markets the product

    • It adds safety to the product

    Correct Answer(s)
    A. It add cost to the products stored
    A. It add security to the product
    A. It adds safety to the product
    Explanation
    Insurance is an important item in computing warehousing cost because it adds cost to the products stored. This is because insurance premiums need to be paid to protect the products from potential risks and damages. Additionally, insurance adds security to the product by providing coverage in case of theft, fire, or other unforeseen events. It also adds safety to the product by ensuring that any losses or damages will be compensated, reducing the financial risk for the warehouse owner.

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  • 27. 

    What are the examples of non-store retailing?

    • Direct Selling

    • Telephone Ordering

    • Mail to order

    • Movable store

    Correct Answer(s)
    A. Direct Selling
    A. Telephone Ordering
    A. Mail to order
    Explanation
    The examples provided, which include direct selling, telephone ordering, and mail to order, are all forms of non-store retailing. Direct selling refers to the selling of products directly to consumers in a non-retail environment, such as through door-to-door sales or home parties. Telephone ordering involves customers placing orders for products over the phone, without physically visiting a store. Mail to order involves customers ordering products through mail or catalogs, without visiting a physical store. These examples demonstrate ways in which retail transactions can occur without the need for a traditional brick-and-mortar store.

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  • 28. 

    What are the reasons why marketers use middlemen?

    • They help increase sales volume

    • They give good market coverage.

    • They manage the company well.

    • They are the critics of the company.

    • They keep costs down at a minimum.

    Correct Answer(s)
    A. They help increase sales volume
    A. They give good market coverage.
    A. They keep costs down at a minimum.
    Explanation
    Marketers use middlemen for several reasons. Firstly, middlemen help increase sales volume by reaching a larger customer base and distributing products efficiently. Secondly, they provide good market coverage by establishing a strong presence in different geographic areas and target markets. Lastly, middlemen help keep costs down at a minimum by handling tasks such as warehousing, transportation, and inventory management, allowing the company to focus on core competencies.

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  • 29. 

    What type of retailer is SM?

    • Large Scale Retailer

    • General Merchandise

    • Fall Service Retail

    • Supermarket Retail

    Correct Answer(s)
    A. Large Scale Retailer
    A. General Merchandise
    A. Fall Service Retail
    A. Supermarket Retail
    Explanation
    SM is a large scale retailer because it offers a wide range of products and services to customers. It is also a general merchandise retailer as it sells various types of products, not specializing in one specific category. Additionally, SM is a full-service retailer, providing a comprehensive range of services to customers. Lastly, it can be classified as a supermarket retailer because it offers groceries and other household items.

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  • 30. 

    Which of the following is true about Transportation.

    • It is the actual transfer of goods and people from one place to another.

    • It moves goods to places or locations where consumers will buy or use the goods.

    • Absence of distribution will not complete transfer of goods to the point of destination.

    • It help promote the company by going different places.

    Correct Answer(s)
    A. It is the actual transfer of goods and people from one place to another.
    A. It moves goods to places or locations where consumers will buy or use the goods.
    A. Absence of distribution will not complete transfer of goods to the point of destination.
    A. It help promote the company by going different places.
    Explanation
    Transportation is the process of physically moving goods and people from one place to another. It plays a crucial role in moving goods to places where consumers can purchase or use them. Without proper distribution, the transfer of goods to the intended destination cannot be completed. Additionally, transportation also helps in promoting a company by allowing it to reach different places and expand its market presence.

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Quiz Review Timeline (Updated): Oct 12, 2023 +

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  • Current Version
  • Oct 12, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Jul 22, 2013
    Quiz Created by
    Anthzila
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