Chapter-1: Introduction to Sales Management
Self Assessment Questions
1. Personal selling consists of the two-way flow of transmission involving a customer
and vendor, frequently in a face-to-face experience, made to affect a person’s or maybe
group’s purchase choice.
a. True
b. False
2. Sales people coordinate company interests with ……….. to satisfy both parties within
the exchange procedure.
a. customer requirements
b. consumer requirements
c. client requirements
d. None of these
3. Just-in-time is an approach that produces or delivers a product or service just at the
time the:
a. Supplier wants it
b. Distributor wants it
c. Customer wants it
d. Seller wants it
4. Collaborative planning, forecasting, and replenishment (CPFR) is a concept that
encourages and facilitates collaborative processes between:
a. Members of a value chain
b. Members of a supply chain
c. Members of a distribution chain
d. None of the above
5. Which term describes a concept that encourages and facilitates collaborative
processes between members of a supply chain?
a. Collaborative planning, focusing, and reordering (CPFR)
b. Collaborative planning, forecasting, and replenishment (CPFR)
c. Collaborative planning, forecasting, and reordering (CPFR)
d. Collaborative planning, focusing, and replenishment (CPFR)
6. Prospecting is the process by which salespeople search for new customers and
probable customers.
a. True
b. False
7. Which system below is used to maximize the amount of revenue that an airline
generates on each flight?
a. Collaborative filtering system
b. Yield management system
c. Disintermediation system
d. CPFR system
8. Which of the following tracks inventory and information among business processes
and across companies?
a. supply chain management
b. power supply
c. customer relationship management
d. integrated supply management
9. What does an application service provider do?
a. provides software over the intranet
b. provides hardware over the internet
c. provides computer equipment
d. none of the above
10. Which of the following systems can be used to gain insights into the needs, wants,
and behaviors of customers?
a. sales force automation systems
b. customer relationship management systems
c. transaction processing systems
d. collaborative systems
11. Which of the following systems can perform sales lead tracking, contact
management, and market analysis?
a. sales force automation systems
b. customer relationship management systems
c. transaction processing systems
d. collaborative systems
12. Selling does not always require a salesperson use methods designed to encourage
customers to make a purchase.
a. True
b. False
13. Which of the following are reasons that customer relationship management systems
may fail?
a. company's goals are too broad
b. strategies are too generic
c. implementations are often too software-centric
d. all of these
14. Which systems are typically used to support customers or sales?
a. back office systems
b. front office systems
c. side office systems
d. information sales systems
15. Which systems are typically used to fulfill and support customer orders?
a. back office systems
b. front office systems
c. side office systems
d. information sales systems
16. Business intelligence includes knowledge about all but which of the following?
a. customers
b. competitors
c. business partners
d. all of these
17. The pre-approach step includes all post prospecting behavior prior to the actual visit
with a prospect or customer.
a. True
b. False
18. Selling is not done by the sales power either directly to customers, such as in case of
industrial salesmen or to retailers, as in case of salesmen simply supplying shopkeepers
and inducing them to stock the goods.
a. True
b. False
19. The presentation is the main body of the sales call and should occur after the
salesperson has predetermined the needs of the customer.
a. True
b. False
20. Personal selling consists of the of transmission involving a customer and vendor,
frequently in a face-to-face experience, made to affect a person’s or maybe group’s
purchase choice.
a. one-way flow
b. two-way flow
c. three-way flow
d. None of these
Answers for Self Assessment Questions
1. (a) 2.(c) 3.(c) 4.(b) 5.(b)
6. (a) 7.(b) 8.(a) 9.(a) 10.(b)
11. (a) 12.(a) 13.(d) 14.(b) 15.(a)
16. (d) 17. (a) 18. (b) 19. (a) 20. (b)
Chapter-2: Sales Organization Structure
Self Assessment Questions
1. Winning sales strategies teaches participants to get to the decision maker, deal with
competition, understand buyer psychology, and identify new business within existing
customer accounts.
a. True
b. False
2. The more complex a deal becomes, the more likely the deal will create systemic
implications that go beyond a particular business unit, and often even beyond the sales
organization.
a. Sales Compensation
b. Internal Processes
c. Organizational Structure
d. None of these
3. Forecasts
a. become more accurate with longer time horizons
b. are rarely perfect
c. are more accurate for individual items than for groups of items
d. all of these
4. One purpose of short-range forecasts is to determine
a. production planning
b. inventory budgets
c. facility location
d. job assignments
5. Forecasts are usually classified by time horizon into three categories
a. short-range, medium-range, and long-range
b. finance/accounting, marketing, and operations
c. strategic, tactical, and operational
d. exponential smoothing, regression, and time series
6. The value of a customer intention survey increases when there are a relatively small
number of customers, the cost of reaching them is small, and they have clear intentions.
a. True
b. False
7. A forecast with a time horizon of about 3 months to 3 years is typically called a
a. long-range forecast
b. medium-range forecast
c. short-range forecast
d. weather forecast
8. Forecasts used for new product planning, capital expenditures, facility location or
expansion, and R&D typically utilize a
a. short-range time horizon
b. medium-range time horizon
c. long-range time horizon
d. all of these
9. The three major types of forecasts used by business organizations are
a. strategic, tactical, and operational
b. economic, technological, and demand
c. exponential smoothing, Delphi, and regression
d. causal, time-series, and seasonal
10. The two general approaches to forecasting are
a. qualitative and quantitative
b. mathematical and statistical
c. judgmental and qualitative
d. historical and associative
11. Which of the following uses three types of participants: decision makers, staff
personnel, and respondents?
a. sales force composites
b. the Delphi method
c. consumer surveys
d. time series analysis
12. An industry trade association will often collect and publish (sometime only to
members) total industry sales, although rarely listing individual company sales
separately.
a. True
b. False
13. Which of the following is not a type of qualitative forecasting?
a. executive opinions
b. sales force composites
c. consumer surveys
d. moving average
14. The forecasting model that pools the opinions of a group of experts or managers is
known as the
a. sales force composition model
b. multiple regression
c. jury of executive opinion model
d. consumer market survey model
15. Which of the following techniques uses variables such as price and promotional
expenditures, which are related to product demand, to predict demand?
a. associative models
b. exponential smoothing
c. weighted moving average
d. simple moving average
16. Which of the following statements about time-series forecasting is true?
a. It is based on the assumption that future demand will be the same as past
demand.
b. It makes extensive use of the data collected in the qualitative approach.
c. The analysis of past demand helps predict future demand.
d. Because it accounts for trends, cycles, and seasonal patterns, it is more powerful
than causal forecasting.
17. Time-series data may exhibit which of the following behaviors?
a. trend
b. seasonality
c. cycles
d. All of these
18. Sellers in the program will get proven tools for analyzing competitive account
positions and field tested frameworks for handling difficult competitive situations.
a. True
b. False
19. A commission only system often produces the “bulldozer” type of salesperson, who
is reluctant to perform his non selling duties.
a. True
b. False
20. The field sales staff, regional managers and general sales manager may meet
annually to set these targets, which are normally the minimum acceptable sales
volumes.
a. True
b. False
Answers for Self Assessment Questions
1. (a) 2.(b) 3.(b) 4.(d) 5.(a)
6. (a) 7.(b) 8.(c) 9.(b) 10.(a)
11. (b) 12.(a) 13.(d) 14.(c) 15.(a)
16. (c) 17. (d) 18. (a) 19. (a) 20. (a)
Chapter-3: Sales Territory Design
Self Assessment Questions
1. Evaluation of salespersons is one of the key activities of sales management in the
process of leading the employees.
a. True
b. False
2. Quantitative criteria are numeric and they relate to number of new customer
obtained, sales volume, and average sales calls per day, gross profit by product/
customer, sales orders.
a. True
b. False
3. The phase in the selling process in which the salesperson gathers as much
information about the prospective client before the sales call is called:
a. prospecting
b. the approach
c. pre-approach
d. none of these
4. Companies can use databases for which of the following purposes?
a. Identification of prospects.
b. Deepen customer loyalty.
c. Use to make attractive offers to inspire purchasing.
d. All of these
5. Which of the following is not a major form of direct marketing?
a. Online shopping.
b. Direct mail marketing..
c. Personal selling.
d. None of these
6. Which of the following best describes cold calling?
a. Viral advertising.
b. Public relations activity.
c. Advertising.
d. Sales people contacting potential customers.
7. What do the term sales quotas refer to?
a. Sales objectives.
b. Time to make a sale.
c. Sales methods.
d. Number of sales personnel.
8. looking for new customers is called:
a. soliciting
b. presenting
c. prospecting
d. trawling
8. Salespeople whose main task is to inform influencers are called:
a. missionaries
b. order takers
c. order makers
d. order creators
9. To determine which customer accounts to call on, companies need to evaluate
a. geographic closeness to other accounts
b. territory allocation
c. commission schedules
d. reference checks
10. To maximize the performance of their field sales forces, companies
a. review expense accounts
b. retrain in sales techniques
c. develop a strong marketing plan
d. develop a strong advertising plan
11. Marketing management in consultation with sales management determines person
selling’s exact role in the promotional program.
a. True
b. False
12. What aspect of an employment application should be scrutinized by the sales
manager?
a. Physical impairments
b. Ethnic background
c. Personal characteristics
d. None of the above
13. Which of the following is an advantage of using a commission form of sales
compensation?
a. The salesperson will be highly motivated.
b. Marketing information will be regularly collected by the salesperson.
c. The account will be serviced on a regular basis.
d. All of the above
14. All of the following are appropriate means for selecting salespeople EXCEPT
a. interviews
b. aptitude test scores
c. political connections
d. previous experience
15. Recruitment and selection refers to the chain and sequence of activities pertaining to
recruitment and selection of employable candidates and job seekers for an organization.
a. True
b. False
16. Which of the following topics is NOT usually part of a sales training course?
a. Sales technique
b. Customer buying habits
c. Company financial information
d. Accounting techniques
17. Recruitment refers to the process of searching and appointing prospective
candidates in an organization.
a. True
b. False
18. Pre Interview screening eliminates unqualified applicants and helps save time.
a. True
b. False
19. The application of candidate whose screening is successful is found to be eligible for
the ………………. which covers the personal as well professional details of the
prospective candidate.
a. Final Interview
b. preliminary interview
c. Pre Interview Screening
d. None of these
20. As price is an important variable affecting sales, all price changes need to be
coordinated with sales policies as well as with related areas like distribution.
a. True
b. False
Answers for Self Assessment Questions
1. (a) 2.(a) 3.(c) 4.(d) 5.(d)
6. (d) 7.(a) 8.(a) 9.(a) 10.(b)
11. (a) 12.(c) 13.(a) 14.(c) 15.(a)
16. (d) 17. (a) 18. (a) 19. (b) 20. (a)
Chapter-4: Sales Personnel Motivation
Self Assessment Questions
1. Advertising may be defined as the presentation of a proposition usually in print to
the people in such a way that they may be induced to act upon it.
a. True
b. False
2. Compensation plans are ultimately the way in which you get paid in a network
marketing business and therefore it is important that you understand how they work.
a. True
b. False
3. The opportunity for management to control advertising is:
a. moderate
b. unknown
c. strong
d. weak
4. The role of advertising is to:
a. differentiate products
b. drive cognitive thoughts
c. engage audiences
d. help consumers make product purchase decisions
5. The sponsor is the person responsible for introducing and signing you up with their
network marketing company.
a. True
b. False
6. ……………… the workload in maintaining customer information, various contact
management software’s are available in the market.
a. To decrease
b. To increase
c. Both a and b
d. None of these
7. SFA deals with data of the customer during sale interaction where as CRM deals with
automating all the customer related data related to the
a. Sales marketing
b. customer care
c. human resource departments
d. All of these
8. The 'salience' framework suggests effective advertisements are ………….
a. idiosyncratic
b. obvious
c. predictable
d. conventional
9. According to the wealth effect, an increase in the price level ……… real wealth and
……….. consumption expenditure.
a. increases; increases
b. increases; decreases
c. decreases; increases
d. decreases; decreases
10. Economic growth will occur and the price level will be constant when the increase in
aggregate demand
a. exactly equals the increase in long-run aggregate supply.
b. is more than the increase in long-run aggregate supply.
c. is less than the increase in long-run aggregate supply.
d. is accompanied by a decrease in short-run aggregate supply.
11. Sugar CRM applications helps the sales manager in handling various functions such
as contact management, forecasting the revenues, managing accounts etc.
a. True
b. False
12. Which of the following would lead to a downward shift in the nation’s production
function?
a. Workers have more physical capital to work with
b. Workers have engaged on in on-the-job training
c. Workers have less human capital than before
d. The size of the labor force has decreased
13. Because the marginal product of labor decreases as the quantity of labor employed
increases, the quantity of labor a firm demands
a. rises as the real wage rate falls.
b. rises as the money wage rate rises.
c. can either rise or fall as the real wage rate changes depending on what is
happening to the money wage rate.
d. none of the above because the marginal product of labor is independent of
the quantity of labor demanded
14. Level refers to the position of a distributor in a down-line relative to an up-line
distributor.
a. True
b. False
15. The strong theory of advertising takes the view that ………….
a. consumers are passive and can be manipulated
b. consumers are active and make up their own minds
c. consumers are indifferent to advertising
d. None of these
16. ATR stands for ………………
a. Attention, thought and reassurance
b. Awareness, trial and reinforcement
c. Accept, test and repeat
d. Advertisers, trust and research
17. Cross-line refers to the relationship between two or more distributors who work for
the same company, but whose efforts do not influence one another’s commissions as
they are not part of each other’s organization.
a. True
b. False
18. The weak theory of advertising takes the view that ……………
a. consumers can never make up their minds
b. consumers are indifferent to advertising
c. consumers are active problem solvers
d. None of these
19. Regardless of what kind of industry work in, the main goal of that industry is to sell
a product or service.
a. True
b. False
20. The CRM aims at putting the customer at the centre of the business process.
a. True
b. False
Answers for Self Assessment Questions
1. (a) 2.(a) 3.(c) 4.(c) 5.(a)
6. (a) 7.(d) 8.(a) 9.(d) 10.(a)
11. (a) 12.(c) 13.(a) 14.(a) 15.(a)
16. (b) 17. (a) 18. (c) 19. (a) 20. (a)
Chapter-5: Marketing Channels
Self Assessment Questions
1. A market channel or channel of distribution is therefore defined as a path traced in
the direct or indirect transfer of title of a product as it moves from a producer to an
ultimate consumer or industrial user.
a. True
b. False
2. There are several predominant forms of retail ownership to be found. Which of the
following are examples of these?
a. Independents; wholesalers; corporate chains.
b. Independents; corporate chains; contractual systems.
c. Corporate chains; specialists; contractual systems.
d. Independents; wholesalers; contractual systems.
3. There are many reasons why a department store allows another established high
street retailer to have space on its premises. Which of the following are examples of the
general reasons for cohabitation?
a. Saves time for the customer; encourages cross trading; shortage of space;
lack of suitable sites; corporate rationalization.
b. Encourages cross trading; shortage of space; lack of suitable sites.
c. Encourages cross trading; shortage of space; corporate rationalisation.
d. Saves time for the customer; encourages cross trading; shortage of space;
lack of suitable sites.
4. A marketing channel can be defined as which of the following?
a. The marketing link between a wholesaler and a retailer.
b. The distribution of products to Europe from Africa.
c. The flow of materials from one point to another.
d. The structure linking a group of individuals or organizations.
4. Various functions are performed by the various types of intermediaries in return for
their margins. Which of the following are examples of these functions?
a. Breaking bulk.
b. Product changes.
c. Storing products.
d. All of these
5. Consumers determine channel structure by purchasing combinations of service
outputs.
a. True
b. False
6. Distributors and dealers are intermediaries who do not generally do which of the
following?
a. Give credit
b. Give after sales service
c. Develop new products
d. Add value
7. Which of the following is known as a short-channel?
a. Producer-retailer-consumer.
b. Consumer-retailer-wholesaler.
c. Producer-wholesaler-retailer-consumer.
d. Direct to the consumer.
8. In marketing jargon and according to the elements of the marketing mix, distribution
is often referred to as ……………, to cover the decisions and strategies that enable the
product to flow to the consumer, whether from the market direct to the home, via a
wholesaler or from a retail outlet.
a. place
b. positioning
c. process
d. promotions
9. Retailers have to ensure a close match between their capabilities and the merchandise
offered. They must have a clear understanding of which of the following?
a. Store location; customer service; intermediaries.
b. Store location; customer service; merchandise selection; image.
c. Store location; customer service.
d. Store location; customer service; intermediaries; merchandise selection;
image.
10. The linking of members of distribution channels through formal agreements rather
than ownership is known as a contractual system. Which of the following is an example
of a contractual system?
a. Family business.
b. Grocers.
c. Newsagents.
d. Franchises.
11. The range and quality of services offered varies considerably from retailer to retailer.
Which of the following are examples of the three types of service level?
a. Protracted service; limited service; self service.
b. Extended service; limited service; self service.
c. Reduced service; full service; extended service.
d. Full service; limited service; self service.
12. There are always problems for retailers related to depth of range or breadth of
range. A traditional retail store has to restrict its choice because of which of the
following?
a. Limited supervisory staff.
b. Pressures of time and money.
c. Limited customers who visit the store.
d. Pressures of space and display requirements.
13. Distribution channels are the methods that companies use to enter the consumer
market with their product.
a. True
b. False
14. Without the back-up of a customer orientation, which of the following would be
resolved to suit the supplier's, not the customer's, abilities and preferences?
a. Issues of supply.
b. Quality.
c. Timing.
d. All of these
15. Which of the following is a long channel?
a. Producer-retailer-consumer.
b. Direct to the consumer.
c. Producer-wholesaler-retailer-consumer.
d. Wholesaler-retailer-consumer.
16. The structure of a distribution channel is determined by the marketing functions
that specific organizations perform.
a. True
b. False
17. Manufacturer-user. This direct channel is most appropriate where the goods being
sold have which of the following characteristics?
a. High unit cost.
b. Low technical content.
c. Geographically dispersed buyers.
d. Low unit cost.
18. The role of the intermediary is to do which of the following?
a. Limit liability.
b. Reduce breakage.
c. Increase order size and reduce expenses.
d. Increase efficiency and reduce costs.
19: Channel structure may be viewed as a function of product life cycle, logistics
systems, effective communication networks, product characteristics, or firm.
a. True
b. False
20. Intermediaries, however, provide several benefits to both manufacturers and
consumers:
a. improved efficiency
b. a better assortment of products
c. reutilization of transactions
d. All of these
Answers for Self Assessment Questions
1. (a) 2.(b) 3.(a) 4.(d) 5.(a)
6. (c) 7.(a) 8.(a) 9.(b) 10.(d)
11. (d) 12.(d) 13.(a) 14.(d) 15.(c)
16. (a) 17. (a) 18. (d) 19. (a) 20. (d)
Chapter-6: Consumer and Industrial Products
Self Assessment Questions
1. Under this arrangement a legal document obligates members to agree on how a
product is distributed.
a. Wholesaler-sponsored
b. Contractual
c. Retailer-sponsored
d. None of these
2. …………….. that make up the consumer industry can also be divided into consumer
staples and consumer discretionary (or cyclical) goods and services.
a. Products
b. services
c. Both a and b
d. None of these
3. Which of the following information forms available to the marketing manager can
usually be accessed more quickly and cheaply than other information sources?
a. Marketing intelligence
b. Marketing research
c. Customer profiles
d. Internal databases
4. A product is actually a bundle of attributes, all of which are important implications
for channel design.
a. Unit Value
b. Product Attributes
c. Technical Complexity
d. None of these
5. All of the following are considered to be drawbacks of local marketing EXCEPT:
a. it can drive up manufacturing and marketing costs by reducing economies of
scale.
b. it can create logistical problems when the company tries to meet varied
requirements.
c. it can attract unwanted competition.
d. it can dilute the brand's overall image.
6. Cognitive dissonance occurs in which stage of the buyer decision process model?
a. Need recognition
b. Information search
c. Evaluation of alternatives
d. Post purchase behavior
7. That the company that overlooks new and better ways to do things will eventually
lose customers to another company that has found a better way of serving customer
needs is a major tenet of:
a. innovative marketing
b. consumer-oriented marketing
c. value marketing
d. sense-of-mission marketing
8. The biggest or greatest amount of involvement in a foreign market comes through
which of the following?
a. Exporting
b. Joint venturing
c. Licensing
d. Direct investment
9. Destructive channel conflict can have serious consequences on channel efficiency,
channel effectiveness and channel partners’ and principals’ profits.
a. True
b. False
10. A ……………… is a good offered either free or at low cost as an incentive to buy a
product.
a. patronage reward
b. spiff
c. price pack
d. premium
11. Setting call objectives is done during which of the following stages of the selling
process?
a. Prospecting
b. Preapproach
c. Approach
d. Handling objections
12. The selection of distribution is affected by many of factors, which play significant
role while choosing the …………...
a. channel for distribution
b. channel for counting
c. channel for communication
d. None of these
13. If selling directly from the manufacturer to the consumers was not always the most
efficient methodology for doing business, the need for channels of distribution would
be obviated.
a. True
b. False
14. Ordering and payment are channel flows that go in ……… from the consumer to the
manufacturer.
a. one direction
b. two direction
c. three direction
d. None of these
15. Product standardization is frequently related to technical complexity with highly
nonstandard products generally requiring greater technical knowledge or skills in the
distribution channel.
a. True
b. False
16. Physical possession, ownership, and promotion flow in one direction through the
channels of distribution from the manufacturer to the consumer.
a. True
b. False
17. Channel level conflicts may be
a. Vertical-level
b. Horizontal-level
c. multi-level
d. All of these
18. The nature of the product often dictates the distribution options available especially
if the product requires special handling.
a. Product Issues
b. Promotion Issues
c. Both a and b
d. None of these
19. The most important decision with regard to reaching the target market is to
determine the level of distribution coverage needed to effectively meet customer’s
needs.
a. True
b. False
20. Selling Agent-market either all specified line or manufacturers entire output.
Perform every wholesaling activity except taking title of the product.
a. True
b. False
Answers for Self Assessment Questions
1. (b) 2.(c) 3.(d) 4.(b) 5.(c)
6. (d) 7.(a) 8.(d) 9.(a) 10.(d)
11. (b) 12.(a) 13.(b) 14.(a) 15.(a)
16. (a) 17. (d) 18. (c) 19. (a) 20. (a)
Chapter-7: Distribution System and Logistics
Self Assessment Questions
1. Physical distribution (PD) is much better understood in the context of the marketing
of tangible fast-moving consumer goods.
a. True
b. False
2. Logistics is the management of the flow of goods between ……………… in order to
meet the requirements of customers or corporations.
a. the point of origin
b. the point of destination
c. Both a and b
d. None of these
3. A company's channel decisions directly affect every …………………..
a. marketing decision
b. customer's choices
c. employee in the channel
d. channel member
4. From the economic system's point of view, the role of marketing intermediaries is to
transform the assortment of products made by producers into the assortment of
products wanted by …………...
a. distributors
b. manufacturers
c. consumers
d. marketers
5. Intermediaries play an important role in matching ……………….
a. supply and demand
b. manufacturer to product
c. information and promotion
d. dealer with customer
6. Which of the following is not a key function that intermediaries play in completing
transactions?
a. negotiation
b. negotiation
c. financing
d. promotion
7. In marketing terms, we say that the number of intermediary levels indicates the
………….. of a channel.
a. depth
b. length
c. complexity
d. width
8. An advantage of a channel of distribution over selling direct to consumers is that each
channel member plays a ……………… in the channel.
a. informational role
b. time-saving part
c. decisional role
d. specialized role
9. Historically, conventional channels have lacked the leadership to ………………...
a. assign channel member roles and attain efficiency
b. set standard pricing and packaging
c. set standard pricing and promotions
d. assign member roles and manage conflict
10. A channel consisting of one or more independent producers, wholesalers or retailers
that are seeking to maximize their own profits even at the expense of profits for the
channel as a whole is a ……………..
a. independent channel allocation
b. conventional distribution channel
c. vertical marketing system
d. vertical distribution structure
11. A corporate VMS has the advantage of controlling the entire distribution chain
under …………………….
a. little control
b. a few intermediaries
c. single ownership
d. mass distribution
12. A distinguishing feature of a contractual VMS is that coordination and conflict
management among the independent members of the channel are attained
through……………...
a. natural competitive forces
b. oral agreements
c. contractual agreements
d. working partnerships
13. Leadership in which type of marketing system is assumed not through common
ownership or contractual ties but through the size and power of one or a few dominant
channel members?
a. dual distribution system
b. corporate VMS
c. horizontal marketing system
d. administered VMS
14. Hybrid marketing systems are also called ………………..
a. contractual marketing systems
b. horizontal multichannel systems
c. administered franchises
d. multichannel distribution systems
15. The major disadvantage of a multichannel system is that it is harder to control and it
can generate ……………...
a. less net profit
b. inefficiency
c. declining employee morale
d. greater conflict
16. In many industries, traditional intermediaries are dropping by the wayside because
of changes in ……………… and the growth of ……………. marketing.
a. technology; direct and online
b. federal laws; business-to-business
c. state and local laws; target
d. channel design; retail
17. Companies should state their channel objectives in terms of targeted levels
of……………..
a. customer service
b. co-op advertising
c. efficiency and reduced conflict
d. fair prices
e. profitability
18. Which type of product might require a more direct marketing channel to avoid
delays and too much handling?
a. perishable products
b. products in their decline stage
c. high-priced products
d. products in their maturity stage
19. Sometimes a producer chooses only a few dealers in a territory to distribute its
products or services. Generally these dealers are given a right to ……………
distribution.
a. administered
b. intensive
c. corporate
d. exclusive
20. Relationship marketing focuses on getting customers and keeping them in the
longer term using a combination of marketing, quality and customer service.
a. True
b. False
Answers for Self Assessment Questions
1. (a) 2.(c) 3.(a) 4.(c) 5.(a)
6. (c) 7.(b) 8.(d) 9.(d) 10.(b)
11. (c) 12.(c) 13.(d) 14.(d) 15.(d)
16. (a) 17.(a) 18.(a) 19.(d) 20.(a)
Chapter-8: Supply Chain Management
Self Assessment Questions
1. An organization’s supply chain can be viewed from a system's perspective that starts
with the acquisition of resources which are then transformed into products or services.
Simply, put the sequence is represented:
a. Sourcing - input - process - outputs
b. Inputs - outputs - process
c. Process - inputs - outputs
d. Inputs - process - outputs
2. A supply chain encompasses all the activities, functions and facilities involved in
producing and delivering a product and/or service, from suppliers (and their suppliers)
to the customers.
a. True
b. False
3. What does the following definition refer to: an organization which uses
communications technology to allow it to operate without clearly define physical
boundaries between different functions?
a. E-organization
b. Virtual organization
c. Base-free organization
d. Cloud organization
4. The typical benefits of e-supply chain management gained by a B2B company are
quite comprehensive. Which of the following is false though?
a. Increased efficiency of individual processes
b. Improved data integration between elements of the supply chain
c. Increased costs through outsourcing
d. Reduced complexity of the supply chain
5. What does a company's information system need to deliver to different parties who
need to access the supply chain information of an organization, whether they be
employees, suppliers, and logistics service providers or customers?
a. Supply chain visibility
b. Radio-frequency identification of products
c. Password and user name reminders
d. None of these
6. As guidance to managing a global distribution, seven action points have been
suggested. Do these include ………………
a. Treat local distributors as short-term partners
b. Let distributors pick you
c. Do not waste money, time and energy initially
d. None of these
7. Which of these is an output to a single organization's transformation process?
a. Information
b. Intangible needs
c. Fulfilled needs
d. Materials
8. Which of these statements about the transformation process is best?
a. Inputs to operations usually come from only one place and take one form.
b. Operations activities are usually independent of other business activities
such as engineering and marketing.
c. The availability of inputs usually has little impact on the operations
function.
d. Operations are highly dependent on the quality of inputs.
9. Which of these is NOT a flow that moves up and down the supply chain?
a. Physical
b. Information
c. Monetary
d. Procedural
10. Which area of the SCOR model includes the activities that are necessary to handle
warranty repairs and exchanges or shipments in excess of what is needed at a retail
location?
a. Delivery
b. Source
c. Return
d. Planning
11. The use of information technology to automate business transactions is known as
…………
a. Management information systems
b. Computer integrated manufacturing
c. POS
d. E-commerce
12. Which of these operations and supply chain management career paths works closely
with manufacturing, marketing, and purchasing to create timely, cost-effective
import/export supply chains?
a. Analyst
b. Logistics and Material Planner
c. International logistics manager
d. Sourcing manager
13. Which of these is NOT a key element of the operations function?
a. People
b. Technology
c. Regulations
d. Systems
14. Which of these statements about the operations function is best?
a. A manufacturing company provides only tangible goods as outputs.
b. Inputs to the operations function can come from many different places.
c. The quality and availability of inputs to the operations function do not
matter if the operation is well-managed.
d. Operations are the most isolated of all business functions, rarely needing
to interface with marketing, finance, or engineering.
15. SCM is tantamount to coordinating all the operations of an organization with the
operations of the suppliers and customers.
a. True
b. False
16. The capacity planning function is closely linked with which two key inter
organizational supply chain participants?
a. Finance and Accounting
b. Suppliers and Customers
c. Marketing and Human Resources
d. Government and APICS
17. The logistics function interfaces with which two key inter functional supply chain
participants?
a. Human Resources and IT
b. Suppliers and Customers
c. Accounting and Engineering
d. Marketing and Engineering
18. Supply Chain Management is a reverse of prior practices where manufacturers
supplied product to customers.
a. True
b. False
19. A supply chain is a network of facilities and distribution options that performs the
functions of procurement of materials, transformation of these materials into
intermediate and finished products, and the distribution of these finished products to
customers.
a. True
b. False
20. supply chain with multiple sites, each site will often have its fairly autonomous
management team.
a. True
b. False
Answers for Self Assessment Questions
1. (c) 2.(a) 3.(a) 4.(c) 5.(a)
6. (c) 7.(b) 8.(d) 9.(d) 10.(b)
11. (c) 12.(c) 13.(d) 14.(d) 15.(a)
16. (a) 17. (a) 18. (c) 19. (a) 20. (b)