Deck 13: Distributing and Promoting Products

Question 1

Which of the following takes place when a manufacturer grants the right to sell a product to a very limited number of retailers or wholesalers?

A) Intensive distribution
B) Direct channel distribution
C) Sales agent distribution
D) Exclusive distribution
E) Selective distribution

Answer 1

D

Question 2

The distribution mix is the combination of channels that a firm selects to get a product to end users.

Answer 2

True

Question 3

Which of the following is an advantage to nondirect distribution?

A) They reduce the cost of items by making bulk purchases.
B) They do not charge commissions or markups.
C) They provide added value to the producers by preordering services.
D) They work with related product lines of very few producers.
E) They provide added value by saving buyers time.

Answer 3

E

Question 4

Convenience stores utilize which kind of distribution?

A) Direct distribution
B) Retail distribution
C) Wholesale distribution
D) Distribution by agents
E) Distribution by brokers

Question 5

Agents and brokers buy products from manufacturers and then sell them to other businesses.

Question 6

When getting a good or service to market,who is most powerful in determining the roles and rewards of others in the system?

A) Channel captain
B) Exclusive distributer
C) Selective distributer
D) Merchant wholesaler
E) Sales agent

Question 7

In what type of distribution process does the product move from producer to consumer without the use of intermediaries?

A) Wholesale
B) Direct channel
C) Agency
D) Brokerage
E) Retail

Question 8

Which of the following helps producers distribute goods from sellers to customers?

A) Intermediaries
B) Sales agents
C) Direct wholesalers
D) Retailers
E) Brokers

Question 9

One drawback of nondirect distribution is higher prices.

Question 10

Which of the following intermediaries matches numerous sellers and buyers as needed,often without knowing in advance who they will be?

A) Producer representative
B) Retailer
C) Syndicated seller
D) Sales agent
E) Broker

Question 11

Which type of market distribution strategy places low cost goods at as many distribution points as possible?

A) Selective
B) Conflicted
C) Exclusive
D) Intensive
E) Channel captains

Question 12

When would a manufacturer use an exclusive distribution strategy to market a product?

A) When there is a need to create promotional advantage
B) When the manufacturer has a low-cost product that is new for the market
C) To build a strong relationship between the manufacturer and the wholesaler
D) When the manufacturer wants to break into a new geographic location
E) When the item is a high-cost or prestige product

Question 13

Which of the following acts as an intermediary by selling products to other businesses,who then sells them to the final consumer?

A) Brokers
B) Agents
C) Wholesalers
D) Intermediaries
E) Retailers

Question 14

If a producer wants a product to have promotional advantage and increased attention in the sales effort,what distribution process should they pursue?

A) Selective
B) Conflicted
C) Exclusive
D) Intensive
E) Channel captains

Question 15

Which of the following refers to the combination of channels that a firm selects to get a product to end users?

A) Distribution mix
B) Transportation strategy
C) Merchandising system
D) Marketing plan
E) Retail system

Question 16

Choosing a distribution network is a strategic decision in that the decision determines the amount and cost of what?

A) Channel conflict
B) Market coverage
C) Online retailing
D) Retail coverage
E) Channel leadership

Question 17

Most business products are distributed through direct channels.

Question 18

Which distribution channel is used by companies that distribute their goods through their own system of outlets?

A) Direct distribution
B) Retail distribution
C) Wholesale distribution
D) Distribution by agents
E) Distribution by brokers

Question 19

Which component of the distribution mix do agents and brokers represent in exchange for receiving commissions?

A) Producers
B) Consumers
C) Retailers
D) Industrial users
E) Other intermediaries

Question 20

What is the potential result when one member of a channel receives preferential treatment?

A) Channel reward
B) Channel conflict
C) Channel leadership
D) Channel captain
E) Channel alienation

Question 21

In the distribution process,the channel captain can be an influential wholesaler or large retailer.

Question 22

Explain the primary difference between a retailer and a wholesaler.

Question 23

What is the advantage of using agents and brokers when a firm does not have its own sales force?

A) Agents and brokers have extensive knowledge of the needs of consumers.
B) Agents and brokers gather and sort information for online consumers.
C) Agents and brokers can act as e-intermediaries for internet sales.
D) Agents and brokers have extensive knowledge of the markets and merchandise.
E) Agents and brokers encourage syndicated selling.

Question 24

Which of the following gives examples of bargain retailers?

A) Bakery outlet, athletic shoe store
B) Local bakery, discount shoe chain
C) Bakery thrift shop, athletic shoe store
D) Bakery thrift shop, shoe factory outlet
E) Local bakery, shoe factory outlet

Question 25

What type of firm helps online consumers gather and sort information about products and helps in the sale of the products by presenting the information in an easy to understand format?

A) Shopping agents
B) Drop shippers
C) Business-to-business brokers
D) Syndicated sellers
E) E-agents

Question 26

Which of the following denotes small retail stores carrying only one product line or category of related products?

A) Department stores
B) Bargain retailers
C) Supermarkets
D) Convenience stores
E) Specialty stores

Question 27

Explain the primary difference between a wholesaler and a sales agent.

Question 28

Shopping agents (e-agents)help people shop from factory outlet stores.

Question 29

Which of the following bargain retailers generate large sales volume by offering a wide variety of new products at substantial price reductions?

A) Discount houses
B) Catalog showrooms
C) Second-hand stores
D) Factory outlets
E) Direct-response bargain marketing

Question 30

What is the term for the wholesaler who sells directly to retail stores and provides services such as pricing and shelf displays?

A) Full-service merchant wholesalers
B) Drop shippers
C) Limited-function merchant wholesalers
D) Rack jobbers
E) Merchant wholesalers

Question 31

Which of the following occurs when one website gives a commission to another for referring customers?

A) Business to business brokerage
B) E-intermediary selling
C) Drop shipping
D) Limited merchant wholesaling
E) Syndicated selling

Question 32

Describe the services provided by e-intermediaries.

Question 33

Drop shippers carry inventory for retailers.

Question 34

Describe the services provided by merchant wholesalers.

Question 35

What type of intermediary act as a storage firm allowing small operations to pick up the goods desired?

A) Full-service merchant wholesalers
B) Drop shippers
C) Limited-function merchant wholesalers
D) Rack jobbers
E) Merchant wholesalers

Question 36

Which of the following represents a popular form of direct-response retailing?

A) E-retailing
B) Specialty store retailing
C) Catalog showroom retailing
D) Mail-order retailing
E) Brokered retailing

Question 37

What type of intermediary buys the product from the manufacturer then resells it to other businesses?

A) Drop shippers
B) Merchant wholesalers
C) Agents
D) E-intermediaries
E) Brokers

Question 38

E-intermediaries include syndicated sellers and shopping agents.

Question 39

Intermediaries can expedite the delivery of products,but otherwise add no additional value to a distributional system.

Question 40

Shopping agents allow consumers to purchase products directly from their site.

Question 41

Once an online catalog is in place,there are high costs in maintaining and accessing it.

Question 42

Explain direct-response retailing.

Question 43

Discount houses,catalog showrooms,and factory outlets are examples of product-line retailers.

Question 44

Home Shopping Club and QVC are examples of which of the following retail sales outlet?

A) Direct selling
B) Video retailing
C) Electronic shopping
D) Virtual selling
E) Telemarketing

Question 45

Which of the following represents the use of online displays of products,allowing customers instant access to information and purchasing options?

A) Cybermalls
B) Virtual storefronts
C) E-catalogs
D) Video retailing
E) Electronic storefronts

Question 46

What type of retailing is mail order or catalog marketing considered to be?

A) Warehousing
B) Telemarketing
C) Nonstore
D) Direct selling
E) Online

Question 47

What are the three major classifications of retail outlets in the United States?

A) Large-sized outlets, medium-sized specialty shops, small-sized convenience stores
B) Product-based retailers, bargain-based retailers, convenience-based retailers
C) Quality-based retailers, quantity-based retailers, specialty-based retailers
D) Producer-owned retailers, franchised retailers, independently owned retailers
E) Brick-and-mortar retailers, e-retailers, hybrid retailers

Question 48

What is the advantage of shopping at a wholesale club?

A) There is a large discount on a wide range of merchandise.
B) Customers can view samples and place orders.
C) There are a wide variety of products at competitive prices.
D) The manufacturer owns the store and prices are discounted.
E) Merchandise is sold directly from the factory to the consumer.

Question 49

In which of the following bargain retailers do the customers view display samples,place orders,and wait briefly while clerks retrieve orders from attached warehouses?

A) Off-price store
B) Catalog showroom
C) Factory outlet
D) Wholesale club
E) Discount house

Question 50

Effective,knowledgeable sales personnel can often be found in the sales force of specialty stores.

Question 51

Why would one expect a product sold at a specialty store to cost more than the same product at a department store?

Question 52

Which of the following is a form of direct-response retailing?

A) Online
B) Mail order
C) Promotion
D) Department stores
E) Wholesale clubs

Question 53

In which type of store would you MOST likely find specialized departments based on types of products?

A) A supermarket
B) A discount house
C) A department store
D) A convenience store
E) A specialty store

Question 54

Which of the following BEST describes department stores?

A) A department store is a large product-line retailer organized into smaller, convenience-focused components.
B) A department store is a large product-line retailer organized into smaller, bargain-focused components.
C) A department store is a large product-line retailer organized into smaller, producer-focused components.
D) A department store is a large product-line retailer organized into smaller, product-focused components.
E) A department store is a large product-line retailer organized into smaller specialty stores.

Question 55

As a product-line retailer,what services do supermarkets emphasize?

A) Specialized departments for different products
B) Wide variety of services, credit, and delivery options
C) Low prices, self-service, and wide selection
D) Full product line within a narrow product field
E) Knowledgeable sales people and product specialist

Question 56

Which of the following describes the function of search engines that act as collections of business websites representing diverse products?

A) Internet service providers
B) Electronic storefronts
C) Cybermalls
D) E-catalogs
E) Interactive retailing

Question 57

Which of the following is an advantage for a retailer who is using e-catalogs?

A) Inventory in the store does not have to match the catalog.
B) The cost to maintain and access the catalog is minimal.
C) Specialty products reach a better defined target market.
D) Several virtual storefronts can be represented in the catalog.
E) The e-catalog is not dependent on search engines such as Yahoo! or Google.

Question 58

Which of the following allows firms to contact customers directly to inform them about products that can be purchased immediately?

A) Direct-response retailing
B) Catalog showrooms
C) Wholesale clubs
D) Product-line retailers
E) Bargain retailers

Question 59

What type of retailer requires customers to pay an annual membership fee?

A) Catalog showrooms
B) Wholesale clubs
C) Factory outlets
D) Discount houses
E) Direct-response firms

Question 60

Among the bargain retail operations,convenience stores,in general,provide the most substantial price reductions to the products.

Question 61

Within which of the following storage facilities would one expect to see the widest variety of products stored?

A) Private warehouse
B) Public warehouse
C) Food storage facility
D) Department store stockroom
E) Specialty store stockroom

Question 62

Which of the following is the fastest and most expensive transportation mode?

A) Railroads
B) Airplanes
C) Pipelines
D) Water carriers
E) Trucks

Question 63

Which of the following is MOST directly related to differences in transportation cost from mode to mode?

A) Packing necessary for the product
B) Fuel efficiency of the carrier
C) Regularity of use of a given carrier
D) Discount agreements with the carriers
E) Delivery speed

Question 64

Most products are well suited to distribution by high-speed digital transmission.

Question 65

Explain the difference between an electronic storefront and a cybermall.

Question 66

Why is water the least expensive mode of transportation?

Question 67

Which of the following terms refers specifically to the activities needed to move products efficiently from manufacturer to consumer?

A) Physical distribution
B) Promotion and positioning
C) Product distribution
D) Transportation modes
E) Product placement

Question 68

Which of the following is the slowest and the cheapest mode of transportation?

A) Railroads
B) Planes
C) Pipelines
D) Water carriers
E) Trucks

Question 69

Because railroads do not have limited delivery routes,they can economically transport high-volume,heavy,bulky items,such as cars,steel,and coal.

Question 70

Which of the following terms refers to finding the most effective techniques for communicating information about and selling a product?

A) Market share
B) Advertising
C) Promotion
D) Profit management
E) Customer relations

Question 71

Which of the following describes two of the primary objectives of promotion?

A) Positioning and communicating information
B) Positioning and developing new uses for products
C) Developing new uses for products and communicating information
D) Adding value to a product and eliminating competition
E) Controlling sales volume and eliminating competition

Question 72

Which of the following will a large firm utilize when it needs temporary storage space for a large amount of products in immediate demand?

A) Public warehouses
B) Store stockrooms
C) Relay warehouses
D) Private warehouses
E) Storage warehouses

Question 73

In addition to being one of the fastest modes of transportation for physical goods,what is the advantage of using air-freight?

A) It allows for the movement of large, bulky items.
B) The routes are fixed and routine.
C) There are lower inventory costs because items do not need storage.
D) It offers economical and reliable delivery for items such as liquids and gases.
E) It offers flexibility for any-distance distribution, is fast, and dependable.

Question 74

What limits the economic side of using railroads for transportation?

Question 75

What can be used to determine what products are sold and when they are sold,to be better able to forecast upcoming demand?

A) Upstream sourcing
B) Systems integration
C) Supply chains
D) Large inventories
E) Data mining

Question 76

Which mode of transportation is the fastest and least expensive,but can only be used by a limited number of industries?

A) Digital
B) Air-freight
C) Water
D) Rail
E) Pipelines

Question 77

Many firms have turned to distribution through supply chains as a cornerstone of business strategy.

Question 78

List one advantage of using trucks for transportation and one disadvantage.

Question 79

What type of warehouse is owned by a single retailer that deals in mass quantities?

A) Public warehouse
B) Relay warehouse
C) Retail stockroom
D) Private warehouse
E) Storage warehouse

Question 80

Discuss the differences in the three types of product-line retailers.