1. Regarding alternative transporting modes:

  A. trucks are good for speed, frequency, dependability, and number of locations served.

  B. pipelines are slower and less dependable than water transport, but also less expensive and able to serve more locations.

  C. airways are faster, cheaper, and more dependable than railways.

  D. waterways are slow, costly, and unable to handle a variety of shipments.

2. Regarding automatic vending, which of the following statements is TRUE?

  A. It is important for soft drinks, candy bars, and snack foods.

  B. Costs are relatively high because the machines are expensive to stock and repair.

  C. Although its growth has been spectacular, automatic vending still accounts for a low percentage of total U.S. retail sales.

  D. A major advantage is customer convenience.

  E. All of these statements about automatic vending are TRUE.

3. Regarding product classes,

  A. Business product classes are based on how buyers think about products and how the products will be used.

  B. Consumer product classes are based on how consumers think about and shop for products.

  C. The same product may be a consumer product and a business product.

  D. Products are classified by what type of customer will use them.

  E. All of these statements about product classes are true.

4. Regarding product life cycles, it is correct that

  A. different marketing strategies may be needed at different stages of the product life cycle.

  B. a product that doesn't get beyond the introduction stage is still likely to be very profitable.

  C. industry profits are increasing well after sales start to decline.

  D. once a market goes into sales decline, oligopoly conditions set in.

  E. All of these alternatives are correct.

5. Regarding supermarkets, which of the following statements is TRUE?

  A. Most supermarkets carry about 10,000 items or less.

  B. Supermarket net profits after taxes usually are about 1-2 percent of sales-or less.

  C. The "best" shelf-space in most supermarkets is allocated according to which products are cheapest.

  D. The first supermarkets were introduced based on the premise that consumers would pay more for better service.

  E. All of these statements about supermarkets are TRUE.