Basic Marketing A Strategic Marketing Planning Approach 19th Edition By Perreault – Test Bank

Chapter 11 Distribution Customer Service and Logistics Answer Key
True / False Questions

1. Whenever Product includes a physical good, Place requires logistics decisions.

TRUE
Whenever Product includes a physical good, Place requires logistics decisions.

AACSB: Analytic
Blooms: Understand
Learning Objective: 11-01 Understand why logistics (physical distribution) is such an important part of Place and marketing strategy planning.
Level of Difficulty: 1 Easy
Topic: Physical Distribution Gets it to Customers

2. Logistics focuses on the handling of goods along a channel of distribution but not within individual firms.

FALSE
Logistics is the transporting, storing, and handling of goods both within individual firms and along a channel of distribution.

AACSB: Analytic
Blooms: Understand
Learning Objective: 11-01 Understand why logistics (physical distribution) is such an important part of Place and marketing strategy planning.
Level of Difficulty: 2 Medium
Topic: Physical Distribution Gets it to Customers

3. For many physical goods, firms spend half or more of their total marketing dollars on physical distribution activities.

TRUE
For some products, a company may spend half or more of its total marketing dollars on physical distribution activities.

AACSB: Reflective Thinking
Blooms: Remember
Learning Objective: 11-01 Understand why logistics (physical distribution) is such an important part of Place and marketing strategy planning.
Level of Difficulty: 1 Easy
Topic: Physical Distribution Gets it to Customers

4. A firm may spend 50 percent or more of its total marketing dollars on PD activities.

TRUE
For some products, a company may spend half or more of its total marketing dollars on physical distribution activities.

AACSB: Reflective Thinking
Blooms: Remember
Learning Objective: 11-01 Understand why logistics (physical distribution) is such an important part of Place and marketing strategy planning.
Level of Difficulty: 1 Easy
Topic: Physical Distribution Gets it to Customers

5. Logistics costs vary little between developed economies like the U.S. and developing economies like Africa.

FALSE
Developed economies in the United States spend about 9 to 15 percent of GDP on logistics related costs, while in the developing economies of Africa costs are 30 percent or more.

AACSB: Reflective Thinking
Blooms: Remember
Learning Objective: 11-01 Understand why logistics (physical distribution) is such an important part of Place and marketing strategy planning.
Level of Difficulty: 1 Easy
Topic: Physical Distribution Gets it to Customers

6. Physical distribution is the part of marketing that is visible to most customers.

FALSE
PD is a part of marketing that is invisible to most consumers.

AACSB: Analytic
Blooms: Understand
Learning Objective: 11-02 Understand why the physical distribution customer service level is a key marketing strategy variable.
Level of Difficulty: 2 Medium
Topic: Physical Distribution Customer Service

7. In countries where physical distribution systems are inefficient, consumers face shortages of the products they need.

TRUE
In countries where physical distribution systems are inefficient, consumers face shortages of the products they need.

AACSB: Analytic
Blooms: Understand
Learning Objective: 11-02 Understand why the physical distribution customer service level is a key marketing strategy variable.
Level of Difficulty: 1 Easy
Topic: Physical Distribution Customer Service

8. A marketing manager should never increase the total cost of distribution—even if this would result in a better customer service level for his target market.

FALSE
Most customers would prefer very good service at a very low price. But that combination is hard to provide because it usually costs more to provide higher levels of service.

AACSB: Analytic
Blooms: Remember
Learning Objective: 11-02 Understand why the physical distribution customer service level is a key marketing strategy variable.
Level of Difficulty: 1 Easy
Topic: Physical Distribution Customer Service

9. Most physical distribution decisions involve trade-offs between costs, the customer service level, and sales.

TRUE
Most physical distribution decisions involve trade-offs between costs, the customer service level, and sales.

AACSB: Analytic
Blooms: Understand
Learning Objective: 11-02 Understand why the physical distribution customer service level is a key marketing strategy variable.
Level of Difficulty: 1 Easy
Topic: Physical Distribution Customer Service

10. Information technology involves a trade-off because it cannot improve service levels and cut costs at the same time.

FALSE
Information technology can sometimes improve service levels and cut costs at the same time.

AACSB: Analytic
Blooms: Understand
Learning Objective: 11-02 Understand why the physical distribution customer service level is a key marketing strategy variable.
Level of Difficulty: 2 Medium
Topic: Physical Distribution Customer Service