Question 1

By transforming flour, sugar, and chocolate chips into cookies, Nabisco is adding value by providing _____ utility.

Accepted Answer

Nabisco is adding form utility as it is transforming raw materials (flour, sugar, and chocolate chips) into a finished product (cookies) that has value to the consumer. Time utility refers to adding value by making the product available at the right time, place utility refers to adding value by making the product available at the right place, and service utility refers to adding value by providing additional customer service or support.

Question 2

Which of the following explains how Best Buy adds value by acting as a distributor for electronics, when people can go to online stores such as Tiger Direct.org or Newegg.com and cut out the middleman?

Accepted Answer

Best Buy adds value by providing service utility as its employees help customers to choose the model best suited for them. While online stores such as Tiger Direct.org or Newegg.com may offer lower prices, they cannot provide the personalized service and expertise that Best Buy's employees can offer in-store. This service utility adds value for customers who may need guidance and advice when selecting electronics.

Question 3

_____ satisfies customer needs by providing the right products in the right location.

Accepted Answer

Place utility is the concept of providing a product or service at a convenient location for customers, which satisfies their needs. Therefore, the right products in the right location satisfy customer needs and create place utility.

Question 4

_____ connect buyers and sellers and facilitate transactions in exchange for commissions but do not take legal ownership of the goods they distribute.

Accepted Answer

Agents connect buyers and sellers and facilitate transactions in exchange for commissions but do not take legal ownership of the goods they distribute.

Question 5

The Creamy Cow is a brand of gourmet ice cream. The company uses _____ to sell its products by using different venues, including grocery stores, online stores, and mail order.

Accepted Answer

Multichannel retailing refers to using various channels or venues to sell products, which is what The Creamy Cow does by selling its ice cream in grocery stores, online stores, and through mail order. Multilevel distribution refers to using intermediaries such as wholesalers and retailers to distribute products, which is not explicitly stated in the scenario. Shotgun marketing and broadcast retailing are not relevant to the scenario.

Question 6

Freshbake delivers fresh cakes, breads, pies, and muffins to several small grocery stores in Central Alabama. In addition to delivering the baked goods, Freshbake's employees help the small store owners keep track of what they need to order, and they even remove outdated baked goods from the shelves. Freshbake is an example of a:

Accepted Answer

Freshbake is an example of a truck jobber because they deliver their goods directly to small grocery stores and provide additional services such as inventory management and removal of outdated products.

Question 7

_____ dominate the market by offering a huge variety of one type of product.

Accepted Answer

Category killers dominate the market by offering a huge variety of one type of product. This can include stores that specialize in a particular category such as electronics, home decor, or sporting goods. They offer a wide selection of products within that category, which can make it difficult for smaller competitors to compete. Penetration pricing specialists and skimming pricing analysts relate to pricing strategies, and division specialists do not necessarily offer a huge variety of one type of product.

Question 8

The main distinction among members of a channel of distribution is whether they are:

Accepted Answer

The main distinction among members of a channel of distribution is whether they are wholesalers or retailers. Wholesalers buy products in bulk from producers and sell them to retailers or other businesses. Retailers, on the other hand, buy products from wholesalers or directly from producers and sell them to end-consumers. While agents and brokers also play roles in distribution channels, they typically work on behalf of producers or buyers and do not actually take possession of the products being distributed. Similarly, the terms "producers" and "sellers" are often used interchangeably and do not necessarily imply any specific role within a channel of distribution. Finally, while shippers and warehousers are important components of supply chain management, they are not as directly involved in the distribution of goods to end-consumers as wholesalers and retailers.

Question 9

Jake is a graphic designer who is looking for a new computer. He decides to customize his computer, but finds that a particular type of monitor that he wants is not available on any of the online stores. A shopkeeper notes Jake's requirement and obtains the monitor for him. This is an example of _____ utility.

Accepted Answer

Service utility is provided when a business offers a service that adds value to a product, such as obtaining a specific item for a customer that is not readily available.

Question 10

A(n) _____ takes legal possession of the goods to be distributed.

Accepted Answer

A merchant wholesaler takes legal possession of the goods to be distributed, whereas brokers and agents do not take legal possession and store retailers sell goods directly to consumers.

Question 11

_____ are marketing intermediaries that sell directly to final consumers.

Accepted Answer

Retailers are marketing intermediaries that sell directly to final consumers. Wholesalers sell to businesses, not consumers. Brokers and agents facilitate transactions between buyers and sellers but do not sell directly to consumers.

Question 12

Alpine Shop is a store that specializes in selling equipment for camping and other outdoor activities. The store has many employees who love to camp, hike, hunt, and fish. These employees often go out of their way to provid honest and helpful advice to customers about the pros and cons of the products they sell. The efforts of these employees create _____ utility.

Accepted Answer

The employees at Alpine Shop are providing customers with honest and helpful advice about the products they sell. This information helps customers make informed decisions about which products to purchase, creating information utility.

Question 13

Merchant wholesalers can develop their own marketing strategies, including pricing strategies, because they:

Accepted Answer

Merchant wholesalers take legal title to the goods they distribute, which means they have the freedom to set their own prices and develop their own marketing strategies. This allows them to differentiate themselves from other wholesalers and attract customers based on factors such as price, quality, and service.

Question 14

Credit Stock Inc. provides check cashing services and short­term loans to customers. The company provides _____ utility making it easier for customers to possess goods and services.

Accepted Answer

Credit Stock Inc. provides ownership utility by facilitating the transfer of money, making it easier for customers to possess goods and services.

Question 15

_____ utility adds value by making it easier for customers to actually possess the goods and services that they purchase.

Accepted Answer

Ownership utility adds value by making it easier for customers to actually possess the goods and services that they purchase. This includes providing legal ownership certificates or documentation, delivery options or storing options.

Question 16

Valcon Inc., an automobile distributor, established an independent operation that offered the service of warehousing vehicles as well as delivering them but subcontracted the financing to another existing company. Valcon take legal ownership of the vehicles they distribute. In this scenario, Valcon Inc. is operating as a _____.

Accepted Answer

Valcon Inc. is only offering limited services as they are only providing warehousing and delivery services. They have subcontracted financing to an existing company, which means that they are not providing a full-service experience. Therefore, Valcon Inc. is operating as a limited-service merchant wholesaler.

Question 17

_____ offer goods to customers who are too small to merit a sales call from the distributor's representative.

Accepted Answer

Cash and Carry wholesalers offer goods to smaller customers who do not justify the expense of a sales call from a distributor's representative.

Question 18

_____ provide warehousing, shipping, and promotional assistance to the retailers or business users who typically purchase their goods.

Accepted Answer

Full-service merchant wholesalers provide a variety of services to their customers, including warehousing, shipping, and promotional assistance. Drop shippers only handle the shipping of products, cash and carry wholesalers require customers to pick up the products themselves, and truck jobbers only deliver products to specific locations.

Question 19

One thing that a one­minute photo booth, a drive­through at a fast­food restaurant, and a vending machine all have in common is that they:

Accepted Answer

All three options add time utility to the products by providing quick and easy access to goods or services. The one­minute photo booth and the drive­through at a fast­food restaurant both offer convenience to customers by saving them time. Vending machines provide access to products 24/7, making them a convenient option for consumers who need items outside of regular business hours.

Question 20

Carter is the CEO of Bryne Gas Partners, a company that facilitates shipments of coal from the mines to the end user. The company takes legal title of the merchandise, but never physically processes it. Bryne Gas Partners is an example of a:

Accepted Answer

Bryne Gas Partners is a drop shipper because they take legal title of the merchandise but do not physically handle or process it, which is characteristic of drop shippers.

Quiz 13: Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

By transforming flour, sugar, and chocolate chips into cookies, Nabisco is adding value by providing _____ utility.

Which of the following explains how Best Buy adds value by acting as a distributor for electronics, when people can go to online stores such as Tiger Direct.org or Newegg.com and cut out the middleman?

_____ satisfies customer needs by providing the right products in the right location.

_____ connect buyers and sellers and facilitate transactions in exchange for commissions but do not take legal ownership of the goods they distribute.

The Creamy Cow is a brand of gourmet ice cream. The company uses _____ to sell its products by using different venues, including grocery stores, online stores, and mail order.

_____ dominate the market by offering a huge variety of one type of product.

The main distinction among members of a channel of distribution is whether they are:

A(n) _____ takes legal possession of the goods to be distributed.

_____ are marketing intermediaries that sell directly to final consumers.

Merchant wholesalers can develop their own marketing strategies, including pricing strategies, because they:

Credit Stock Inc. provides check cashing services and shortterm loans to customers. The company provides _____ utility making it easier for customers to possess goods and services.

_____ utility adds value by making it easier for customers to actually possess the goods and services that they purchase.

_____ offer goods to customers who are too small to merit a sales call from the distributor's representative.

_____ provide warehousing, shipping, and promotional assistance to the retailers or business users who typically purchase their goods.

One thing that a oneminute photo booth, a drivethrough at a fastfood restaurant, and a vending machine all have in common is that they:

Carter is the CEO of Bryne Gas Partners, a company that facilitates shipments of coal from the mines to the end user. The company takes legal title of the merchandise, but never physically processes it. Bryne Gas Partners is an example of a:

Quiz 13: Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

By transforming flour, sugar, and chocolate chips into cookies, Nabisco is adding value by providing _____ utility.

Which of the following explains how Best Buy adds value by acting as a distributor for electronics, when people can go to online stores such as Tiger Direct.org or Newegg.com and cut out the middleman?

_____ satisfies customer needs by providing the right products in the right location.

_____ connect buyers and sellers and facilitate transactions in exchange for commissions but do not take legal ownership of the goods they distribute.

The Creamy Cow is a brand of gourmet ice cream. The company uses _____ to sell its products by using different venues, including grocery stores, online stores, and mail order.

_____ dominate the market by offering a huge variety of one type of product.

The main distinction among members of a channel of distribution is whether they are:

A(n) _____ takes legal possession of the goods to be distributed.

_____ are marketing intermediaries that sell directly to final consumers.

Merchant wholesalers can develop their own marketing strategies, including pricing strategies, because they:

Credit Stock Inc. provides check cashing services and short­term loans to customers. The company provides _____ utility making it easier for customers to possess goods and services.

_____ utility adds value by making it easier for customers to actually possess the goods and services that they purchase.

_____ offer goods to customers who are too small to merit a sales call from the distributor's representative.

_____ provide warehousing, shipping, and promotional assistance to the retailers or business users who typically purchase their goods.

One thing that a one­minute photo booth, a drive­through at a fast­food restaurant, and a vending machine all have in common is that they:

Carter is the CEO of Bryne Gas Partners, a company that facilitates shipments of coal from the mines to the end user. The company takes legal title of the merchandise, but never physically processes it. Bryne Gas Partners is an example of a:

Credit Stock Inc. provides check cashing services and shortterm loans to customers. The company provides _____ utility making it easier for customers to possess goods and services.

One thing that a oneminute photo booth, a drivethrough at a fastfood restaurant, and a vending machine all have in common is that they: