Quiz 15: Distributing Products
Business
Q 1Q 1
Organizations that assist in moving goods and services from producers to business and consumer users are called supply-side transition specialists.
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True False
False
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True False
True
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True False
False
Q 4Q 4
A channel of distribution consists of the marketing intermediaries who join together to transport and store goods in their path from producers to consumers.
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True False
Q 5Q 5
Brokers are marketing intermediaries that do not take title to the goods they help distribute.
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True False
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True False
Q 7Q 7
Some manufacturers sell directly to consumers or businesses rather than relying on marketing intermediaries.
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True False
Q 8Q 8
Agents are marketing intermediaries who take title to the goods they distribute and provide credit to customers who need it.
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True False
Q 9Q 9
Manufacturers are usually able to perform marketing functions, such as transporting, advertising, and storing, faster and more cheaply than marketing intermediaries.
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True False
Q 10Q 10
One way marketing intermediaries improve marketing efficiency is by reducing the number of exchange relationships necessary to move goods through the channel of distribution.
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True False
Q 11Q 11
Some economists would say that intermediaries add costs to the channel of distribution and need to be eliminated.
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True False
Q 12Q 12
Marketers claim that intermediaries add value to the channel of distribution that outweighs the cost.
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True False
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True False
Q 14Q 14
The activities performed by most marketing intermediaries are not essential to the marketing process.
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True False
Q 15Q 15
The best way to reduce the cost of goods is to eliminate marketing intermediaries from the distribution channel.
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True False
Q 16Q 16
Marketing intermediaries have survived because they have been able to perform marketing functions more efficiently and effectively than a manufacturer or consumer could perform these functions.
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True False
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True False
Q 18Q 18
Most marketing intermediaries have survived in the past because consumers were unaware of how much these companies add to the cost of distributing goods.
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True False
Q 19Q 19
An effective channel of distribution does more than simply ensure that goods are transported efficiently from producer to buyer.
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True False
Q 20Q 20
Marketing intermediaries must charge a price for the functions they perform. Thus, a surefire way to reduce distribution costs is to eliminate marketing intermediaries from the channel of distribution.
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True False
Q 21Q 21
According to the Seeking Sustainability box, IKEA found that even though paper pallets can only be used once, they can help reduce shipping costs and are easier to recycle.
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True False
Q 22Q 22
Jessica Talmadge is a real estate agent who brings together the buyers and sellers of houses and commercial property. Jessica helps the parties negotiate the terms and conditions of real estate sales, but she does not take title to the property, provide credit, or assume any risks associated with the exchanges she helps negotiate. Because Jessica provides only limited services, she is not a true marketing intermediary.
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True False
Q 23Q 23
Sav-U-More Grocery Store sells a wide range of foods and household supplies to households in Miller's Creek, a suburb of a large city. The store advertises that its prices are much lower than the prices charged by larger supermarket chains in the area. This low-price approach means that Sav-U-More is a classic example of a merchant wholesaler.
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True False
Q 24Q 24
Although HelpUSell brings together buyers and sellers and helps negotiate exchanges, it does not actually take title to any of the goods being traded. HelpUSell would be classified as an agent or broker.
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True False
Q 25Q 25
Currently, Halperin Electrical sells directly to thousands of industrial customers. Halperin could reduce the number of exchange relationships by including wholesalers in its channel of distribution.
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True False
Q 26Q 26
Hartselle Home Products, Inc., manufactures a variety of inexpensive household gadgets. The company has decided to cut costs by eliminating all of the marketing intermediaries who help distribute its products. Hartselle will be able to reduce its total marketing costs by eliminating the marketing functions these intermediaries perform.
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True False
Q 27Q 27
To marketers, the term utility refers to the value added to goods or services by organizations when they make the product more useful or accessible to consumers.
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True False
Q 28Q 28
Marketers provide a total of four types of utility: primary, secondary, marginal, and total.
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True False
Q 29Q 29
Producers normally provide form utility, but retailers sometimes also provide this type of utility.
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True False
Q 30Q 30
Marketing intermediaries concentrate on providing mainly form, time and place utility, while producers focus on the provision of possession, information, and service utility.
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True False
Q 31Q 31
Delivery, installation, and follow-up services are the most common ways that marketing intermediaries provide information utility.
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True False
Q 32Q 32
One way that marketers can provide utility is by making sure the good is available at a location that is convenient for consumers.
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True False
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True False
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True False
Q 35Q 35
A key way for traditional retailers to compete with direct marketing is by providing outstanding service utility.
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True False
Q 36Q 36
Marketers normally provide form, time, place, information and service utility, but they are seldom involved in providing possession utility.
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True False
Q 37Q 37
Providing buyers with credit terms such as "90 days same as cash" is a way marketing intermediaries can provide time utility to customers.
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True False
Q 38Q 38
In today's competitive market environment, traditional retailers will need to put more emphasis on providing form and place utility, and less emphasis on service utility.
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True False
Q 39Q 39
Once the final customer has taken title to a good, marketing intermediaries no longer are involved in providing utility to the customer.
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True False
Q 40Q 40
Jack Deck is a computer salesperson for a major retail electronics chain. When he advises customers to help them select a computer that will meet their needs, Jack is providing information utility.
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True False
Q 41Q 41
Frank Crimmins was driving on Interstate 85 in eastern Alabama when he noticed he was running low on gas. Frank was relieved when he found a gas station open at the next exit just 2 miles ahead. This is an example of the value place utility provides to a consumer.
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True False
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True False
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True False
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True False
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True False
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True False
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True False
Q 48Q 48
The two main types of merchant wholesalers are storage wholesalers and distribution wholesalers.
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True False
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True False
Q 50Q 50
Cash-and-carry wholesalers and drop shippers are both classified as limited-function wholesalers.
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True False
Q 51Q 51
Rack jobbers furnish racks or shelves full of merchandise to retailers and keep title to these goods until they are sold.
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True False
Q 52Q 52
Rack jobbers sell goods on consignment, splitting the profits from their sales with a retailer.
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True False
Q 53Q 53
Although drop shippers own merchandise they have shipped to buyers, they do not actually handle, stock, or deliver this merchandise themselves.
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True False
Q 54Q 54
Drop shippers are wholesalers that stock heavy or bulky items and transport them to retail stores.
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True False
Q 55Q 55
Drop shippers are limited function wholesalers that typically put together many small shipments to form a single larger shipment.
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True False
Q 56Q 56
Cash-and-carry wholesalers are limited-function wholesalers that serve mostly smaller retailers with a limited assortment of products.
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True False
Q 57Q 57
The main difference between agents and brokers is that agents perform a wide array of marketing functions while brokers only negotiate exchanges between buyers and sellers.
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True False
Q 58Q 58
As long as they do not represent competing products, manufacturer's agents can represent more than one manufacturer in a given sales territory.
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True False
Q 59Q 59
A key distinction between agents and brokers is that agents tend to maintain long-term relationships with the people they represent whereas brokers are hired on a temporary basis.
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True False
Q 60Q 60
A sales agent is an agent who represents the interests of the consumer in a particular territory when negotiating terms of purchases made directly from a producer.
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True False
Q 61Q 61
A full-service wholesaler will provide suppliers with market information they can't afford or can't obtain themselves.
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True False
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True False
Q 63Q 63
A broker can expect to earn a fixed amount of profit for her efforts regardless of the dollar value of the contract she negotiated.
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True False
Q 64Q 64
Larry and Dale Ingram solicit orders for lumber from area wholesalers and retailers specializing in building supplies and arrange to have the orders shipped directly from nearby logging companies. Larry and Dale operate as drop shippers.
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True False
Q 65Q 65
Henry Hart supplies shelves of inexpensive plastic toys to grocery stores, supermarkets, and drug stores. He keeps title to the goods until they are sold and then splits the profits with the retailer. Henry works as a drop shipper.
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True False
Q 66Q 66
Barbara Dixon operates a small business out of her home. She makes a trip to a local Riteprice Office Supply about once a month to buy computer and office supplies for her business. The prices at the Riteprice are very low, but it does not offer credit or delivery services. Riteprice is a cash-and-carry wholesaler.
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True False
Q 67Q 67
Merrill helps growers of fresh fruits and vegetables negotiate sales to food processing companies. However, once he has helped negotiate the transaction, he does not maintain a long-term relationship with the growers. Merrill is an example of a sales agent in this market.
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True False
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True False
Q 69Q 69
Discount stores, department stores, supermarkets, and specialty stores are all among the major types of retail stores.
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True False
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True False
Q 71Q 71
Warehouse clubs compete with enhanced service to customers and seldom try to compete on price.
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True False
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True False
Q 73Q 73
A category killer is an extremely successful product that kills the sales of other products in its category in a retail store.
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True False
Q 74Q 74
Specialty stores use a wide variety of products in one product category as their key competitive tool.
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True False
Q 75Q 75
Category killer stores tend to compete mainly on the basis of carrying a wide array of products, superior service, and low prices.
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True False
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True False
Q 77Q 77
Discount stores and department stores sell different brands of products that are usually priced about the same.
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True False
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True False
Q 79Q 79
Candy, gum, cigarettes, and popular magazines are usually distributed using a selective distribution strategy.
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True False
Q 80Q 80
A distribution strategy that puts the product into as many retail outlets as possible is known as an intensive distributive strategy.
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True False
Q 81Q 81
Producers of shopping goods such as furniture, appliances, and clothing usually rely on an exclusive distribution strategy.
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True False
Q 82Q 82
An advantage of a selective distribution strategy is that consumers are able to find a popular product at a wide variety of retailers.
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True False
Q 83Q 83
Retailers that participate in an exclusive distribution strategy will have a strong incentive to carry a large inventory of the good and provide exceptional service to customers.
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True False
Q 84Q 84
In order to succeed in today's tough economic times all retailers must compete with low prices.
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True False
Q 85Q 85
The main difference between selective distribution and exclusive distribution is the number and type of market segments the firm chooses. In a selective strategy, a variety of profitable niche markets are selected, while in an exclusive strategy one specific market segment is targeted, and all others are excluded.
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True False
Q 86Q 86
According to the Adapting to Change box, the over 3 million food trucks in operation in the U.S. need to make sure they're up on the latest social media craze so they can reach customers.
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True False
Q 87Q 87
Words 4 Hire is a nationwide chain of stores that offers such a huge selection of paperback and hardback books at such competitive prices that small local bookstores have a hard time competing with them. Words 4 Hire is best classified as a discount store.
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True False
Q 88Q 88
Saul-Mart is the name of a new chain of discount stores. A major part of Saul-Mart's competitive strategy is likely to be based on keeping its prices lower than those of other types of retailers.
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True False
Q 89Q 89
Soundworthy Stereo is a producer of high-quality speakers. The company sells its products through a few preferred retailers in any geographic area. Soundworthy uses a selective distribution strategy.
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True False
Q 90Q 90
The Newsville City Press is a daily newspaper serving a city with a population of just over 200,000. The publishers have placed vending machines for their paper throughout Newsville and its suburbs. They also sell their papers at most of the supermarkets, convenience stores, bookstores, and drug stores in the area. The Newsville City Press uses an intensive distribution strategy.
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True False
Q 91Q 91
The owners of the TriCities Mall recently renovated the mall's interior. Much of the interior of the mall was made to look like scenes from famous movies. The mall also hired employees to dress like characters from these movies. There are many types of shops in the mall, including six different jewelers; however, only one jeweler carries the very expensive Romex brand of watch that appeals to customers who are looking for status in their jewelry. Romex is practicing exclusive distribution by placing its brand in only one store in a given area.
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True False
Q 92Q 92
Firms that rely on electronic retailing are almost guaranteed success because they give companies easy access to literally millions of consumers all over the world.
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True False
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True False
Q 94Q 94
Some websites are trying to improve their service by providing assistance from a real person.
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True False
Q 95Q 95
A large number of traditional retailers have developed online sites in recent years, giving customers a choice of shopping techniques.
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True False
Q 96Q 96
Traditional retailers that have begun using the Internet to supplement their physical stores are finding that the Internet not only provides a new way to sell goods, it also requires a new system to distribute goods.
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True False
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True False
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True False
Q 99Q 99
Vending machines are used primarily to sell goods where consumers have little interest in convenience.
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True False
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True False
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True False
Q 102Q 102
Direct selling is a distribution strategy that makes extensive use of the Internet and telephone.
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True False
Q 103Q 103
Because so many people work outside the home and aren't at home during the day, companies that use direct selling are sponsoring parties at workplaces to sell their products.
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True False
Q 104Q 104
In multilevel marketing, salespeople not only sell the product, they also recruit other people to sell the product.
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True False
Q 105Q 105
In multilevel marketing upliners recruit downliners and receive a commission on the sales their downliners make.
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True False
Q 106Q 106
The major disadvantage of multilevel marketing is that the high entry cost for most sellers means that only relatively wealthy individuals can use this approach.
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True False
Q 107Q 107
Although there have been some unethical firms involved in multilevel marketing, this form of retailing remains quite successful.
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True False
Q 108Q 108
Direct marketing involves having a salesperson visit the customer's home or place of business.
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True False
Q 109Q 109
A major advantage of direct marketing is that it is a very convenient way for consumers to shop.
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True False
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True False
Q 111Q 111
In the battle between electronic retailers and traditional "bricks and mortar" retailers, the electronic retailers seem to have all of the advantages needed to emerge as the clear winners.
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True False
Q 112Q 112
Many firms that want to use an intensive distribution strategy would find vending machines an attractive method of selling their goods.
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True False
Q 113Q 113
Direct selling has all but disappeared as a major form of nonstore retailing because the trend toward two-income households means fewer opportunities for selling in the home.
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True False
Q 114Q 114
In multilevel marketing, salespeople have little incentive to recruit new salespeople, because the new salespeople may compete against them and reduce their income.
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True False
Q 115Q 115
An important reason for the popularity of direct marketing is that many people enjoy developing a personal relationship with a salesperson that comes directly to their home or place or work.
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True False
Q 116Q 116
Fancy Feet sells high-quality socks and stockings by sending catalogs to customers and offering them a toll-free telephone number so that they can call in their orders 24 hours a day any day of the year. Fancy Feet uses telemarketing.
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True False
Q 117Q 117
Chris Cole is a salesperson for Green Scene Lawn Care products. Chris's job requires him to sell Green Scene products, but he is also expected to recruit more salespeople for the company. He will earn a commission on all of the sales earned by the salespeople he recruits. Green Scene is using a retail distribution strategy known as multilevel marketing.
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True False
Q 118Q 118
Traditional retailers can stay competitive with online retailers by being part of a unified system of distribution.
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True False
Q 119Q 119
There are four specific types of channel systems available to companies that tie firms together in a unified way.
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True False
Q 120Q 120
In a corporate distribution system one firm owns all of the organizations in the distribution.
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True False
Q 121Q 121
Corporate distribution systems consist of several independently owned intermediaries, all of them organized as multinational corporations.
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True False
Q 122Q 122
A problem with the corporate distribution system is that the manufacturer has very little control over the operations of the retailers and other marketing intermediaries in the system.
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True False
Q 123Q 123
Franchise systems, wholesaler-sponsored chains, and retail cooperatives are all forms of contractual distribution systems.
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True False
Q 124Q 124
One advantage of a franchise system of distribution is that it results in a consistent level of quality and service.
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True False
Q 125Q 125
In retail cooperatives, the members of the distribution system are bound to cooperate by a contractual agreement.
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True False
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True False
Q 127Q 127
In an administered distribution system, retail stores manage all of the marketing functions at the retail level.
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True False
Q 128Q 128
The entire collection of organizations that move goods and services from the source of raw materials to the final consumer is referred to as the supply chain.
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True False
Q 129Q 129
Because supply chains are so complex, firms have found it difficult to outsource supply chain management.
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True False
Q 130Q 130
The process of managing the movement of raw materials, parts, work in progress, finished goods, and related information through all of the organizations involved in the supply chain in a timely manner is called multi-modal management.
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True False
Q 131Q 131
Supply chain management manages the movement of relevant information as well as the movement of parts and finished goods through all organizations involved in the supply chain.
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True False
Q 132Q 132
Supply chain management not only deals with the movement of materials, parts, and finished goods, it also manages the return of goods and recycling of materials when appropriate.
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True False
Q 133Q 133
For a supply chain to be efficient, all of the activities must be performed by organizations that are owned by the manufacturer.
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True False
Q 134Q 134
In the Reaching Beyond Our Borders box, we learned that natural disasters and other potential problems can wreak economic havoc on a supply chain.
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True False
Q 135Q 135
Imaginex Toys, Inc., produces toys designed to stimulate the imaginations of young children. In order to control all of the marketing operations, Imaginex owns all of the organizations in the channel of distribution for its toys, including a chain of Imaginex retail stores. The approach taken by Imaginex is known as an administered distribution system.
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True False
Q 136Q 136
Even though all of the hardware stores that operate under the name of Hardie's Hardware are independently owned and managed, they have signed an agreement to participate in chain promotions, and cooperate as a unified system of stores. The Hardie's Hardware stores are using a distribution system known as a wholesaler-sponsored chain.
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True False
Q 137Q 137
Hi! Notes Card Shops has been approached by Novel Teas, a producer of herbal teas and exotic spices. Novel Teas wants to sell its products in the Hi! Notes stores under an administered distribution system. If Hi! Notes accepts Novel Teas proposal, it will perform many marketing services for the tea maker in exchange for a flat fee.
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True False
Q 138Q 138
Lazee Ladd Furniture obtains materials from several suppliers and uses these materials to produce its goods. It relies on several marketing intermediaries to help it distribute the furniture. Together, Lazee Ladd, its suppliers, and the marketing intermediaries are all part of a supply chain.
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True False
Q 139Q 139
Denise Shipman works in the marketing department of a major manufacturing firm. She spends a great deal of time trying to coordinate the movement of materials, parts, finished goods, and information through all of the organizations involved in the distribution process. These activities suggest that Denise's job responsibilities focus on supply chain management.
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True False
Q 140Q 140
Logistics involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption.
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True False
Q 141Q 141
With the current emphasis on product development, pricing, branding, and promotion, the physical distribution of materials and goods is no longer a major concern of marketing.
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True False
Q 142Q 142
Materials handling is that part of logistics that deals with moving goods within the warehouse, from the warehouse to the production floor, and to various work stations along the production process.
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True False
Q 143Q 143
Inbound logistics is concerned with the flow of finished products from the manufacturer to the final consumer.
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True False
Q 144Q 144
Inverted logistics is the term used for the activities involved in bringing products back to the producer due to defects or for recycling of materials.
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True False
Q 145Q 145
Third-party logistics is the term used to describe the use of outside firms to help move goods from here to there.
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True False
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True False
Q 147Q 147
The basic transportation service criteria are speed, cost, dependability, flexibility, frequency, and reach.
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True False
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True False
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True False
Q 150Q 150
Water transportation has declined to the point where it now accounts for a very small part of transporting goods.
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True False
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True False
Q 152Q 152
A value of shipping by truck is that trucks can deliver small shipments to remote locations.
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True False
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True False
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True False
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True False
Q 156Q 156
Although air transport currently accounts for only a small percentage of all shipments, it has become a critical mode in many industries.
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True False
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True False
Q 158Q 158
The use of multiple modes of transportation to complete a single long-distance movement of freight is known as multi-carrier shipping.
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True False
Q 159Q 159
Services that specialize in intermodal shipping are known as intermodal marketing companies.
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True False
Q 160Q 160
A freight forwarder breaks one large shipment into multiple small shipments so that it can be transported by trucks or aircraft with limited cargo capacities.
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True False
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True False
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True False
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True False
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True False
Q 165Q 165
Suppliers to large retailers like Target and Walmart may soon be required to use RFID tags when shipping products to these companies.
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True False
Q 166Q 166
An increase in energy prices would encourage shippers to rely more on rail transportation.
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True False
Q 167Q 167
Freight forwarders are particularly useful to large firms who must ship very large quantities on short notice.
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True False
Q 168Q 168
The use of pipelines should decline in the future because this mode is suitable only for shipping petroleum.
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True False
Q 169Q 169
The main difference between storage warehouses and distribution warehouses is that storage warehouses are relatively small, specialized facilities used to store one particular type of good for short periods while distribution warehouses are large facilities used to store a wide variety of goods for longer periods of time.
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True False
Q 170Q 170
Because some of its key suppliers have been late with their shipments of materials and parts, Marnex Enterprises has had to shut down its manufacturing plant for several hours twice in the past week. These difficulties indicate that Marnex has done a poor job in managing its inbound logistics.
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True False
Q 171Q 171
Clay Gates is a distribution specialist who has been looking at ways to improve the flow of parts and materials from his company's warehouses to the production line, and the movement of work in process throughout the company's factories. These efforts suggest that Clay's primary interest is in improving his company's inbound logistics.
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True False
Q 172Q 172
Corinne is a marketing manager who specializes in logistical problems. In her position, Corrine is likely to focus mainly on managing the flow of goods, and leave issues about how to manage the flow of information to managers in other areas of marketing.
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True False
Q 173Q 173
Zintelle, Inc. is a large manufacturing firm. It has recently reached an agreement with an intermodal marketing company to significantly reduce the cost of shipping its finished goods to some major business customers. This agreement will help Zintelle reduce the costs associated with outbound logistics.
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True False
Q 174Q 174
Small-Timers, Inc., is a small manufacturer of charm bracelets that include watches as well as keepsake items and trinkets. The company seldom has shipments large enough to be transported cost-efficiently by filling an entire truck or railcar. Small-timers could benefit by relying on a freight forwarder to help it distribute its goods.
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True False
Q 175Q 175
Childress Manufacturing wants to ship a large quantity of its goods across the country. They have contacted Grunwell Shipping, Inc., to find out what the shipment would cost. Grunwell has shown Childress how a combination of barges, trains, and trucks could be used to complete the shipment at low cost. Grunwell's strategy is an example of intermodal shipping.
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True False
Q 176Q 176
Qwikship is a new delivery company that wants to compete against FedEx and UPS in the United States, Canada, and Mexico. One of the keys to Qwikship's success will be the ability to establish large storage warehouses at a few key locations throughout North America.
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True False
Q 177Q 177
Those organizations that assist in the movement of goods and services from producer to industrial and consumer users are known as:
A) directed marketers.
B) distributive specialists.
C) marketing intermediaries.
D) supplementary marketers.
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Multiple Choice
Q 178Q 178
A(n) ____________ consists of the marketing intermediaries that transport and store goods as they move through their path from producer to final user.
A) channel of distribution
B) marketing network
C) input-output matrix
D) mode of distribution
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Multiple Choice
Q 179Q 179
A _________ is a marketing intermediary that sells products to other organizations.
A) wholesaler
B) retailer
C) disintermediary
D) jobber
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Multiple Choice
Q 180Q 180
A __________ is a marketing intermediary that sells to ultimate consumers.
A) channel captain
B) wholesaler
C) secondary marketer
D) retailer
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Multiple Choice
Q 181Q 181
A (n) _________ is one type of marketing intermediary that brings together buyers and sellers and assists in negotiating an exchange, but does not take title to the goods.
A) agent
B) retailer
C) drop shipper
D) merchant wholesaler
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Multiple Choice
Q 182Q 182
Marketing intermediaries:
A) are unlikely to survive in a competitive global economy.
B) have survived because they can often perform marketing functions faster and at lower cost than producers.
C) create value, but this value is seldom great enough to justify the added cost they charge for their services.
D) tend to increase the number of exchange relationships producers and consumers must deal with in order to buy and sell goods.
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Multiple Choice
Q 183Q 183
Marketing intermediaries:
A) add value that exceeds the cost of their services.
B) add cost that exceeds the value they provide.
C) increase the number of exchange relationships in the channel.
D) complicate the distribution process.
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Multiple Choice
Q 184Q 184
About __________ of the costs of things we buy are marketing costs that go to pay for distribution costs of intermediaries.
A) 25 percent
B) 30 percent
C) 75 percent
D) 90 percent
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Multiple Choice
Q 185Q 185
In the distribution process, the largest percentage of the retail price goes to:
A) profits.
B) warehouse costs.
C) labor.
D) transportation.
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Multiple Choice
Q 186Q 186
Which of the following statements about channels of distribution is most accurate?
A) Channels of distribution always begin with a manufacturer and end with consumers, and always have one or more marketing intermediaries in between.
B) Channels of distribution always include retailers, but they may or may not also include wholesalers.
C) The fewer the marketing intermediaries in a channel of distribution, the more efficient the channel is likely to be.
D) Some channels of distribution include marketing intermediaries, while in others a manufacturer sells directly to the final consumer.
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Multiple Choice
Q 187Q 187
The primary difference between retailers and wholesalers is that:
A) retailers sell consumer goods, while wholesalers sell industrial goods.
B) retailers operate in local areas, while wholesalers operate over a wide geographic area.
C) retailers sell to final consumers, while wholesalers sell to other organizations, such as retailers or manufacturers.
D) retailers have sales of less than $100 million, while wholesalers have sales of $100 million or more.
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Multiple Choice
Q 188Q 188
Which of the following statements about marketing intermediaries is true?
A) All channels of distribution must contain at least one marketing intermediary.
B) Marketing intermediaries and their functions can be eliminated.
C) Marketing intermediaries survive because they can perform marketing functions faster and more cheaply than producers and consumers.
D) The costs added to products by marketing intermediaries usually exceed the value they add to products.
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Multiple Choice
Q 189Q 189
Nina Corby owns a card shop in a small shopping center where she sells cards produced by a national company. Nina sells to final customers, so she is a:
A) merchant wholesaler.
B) retailer.
C) rack jobber.
D) channel captain.
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Multiple Choice
Q 190Q 190
Patrick Bolger is convinced that his product idea has tremendous potential. He has decided to produce the product himself, but plans to use other firms who specialize in storing and transporting to help him move the product along its path to the final consumer. These specialists Patrick uses will be part of his:
A) wheel of retailing.
B) market network.
C) channel of distribution.
D) franchise system.
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Multiple Choice
Q 191Q 191
Suppose that eight bakeries each tried to sell their products directly to seven supermarkets. The total number of exchange relationships that would be established is:
A) 14.
B) 25.
C) 56.
D) 72.
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Multiple Choice
Q 192Q 192
Mark
A) Teer believes he has found a surefire way to save money. He advises his friends, "Buy direct from the manufacturer. Any time intermediaries get involved, you'll pay a higher price. After all, every intermediary involved in the marketing process must charge enough to earn a profit." Mark's advice:
A) is entirely correct. Intermediaries must charge a high enough price for the activities they perform to earn a profit, so using intermediaries must result in a higher price.
B) is impractical, because in most markets the distribution process is so complex that it is impossible to determine who the actual producer really is.
C) is not valid in many cases. Intermediaries do add costs to products, but they also create value by performing marketing functions efficiently. In many cases the value they create more than offsets the costs they add.
D) is never true. Markets that make use of intermediaries can always provide goods at lower cost than those that rely on direct distribution.
Free
Multiple Choice
Q 193Q 193
Robbie Veath brings together buyers and sellers of used heavy construction equipment, and helps them negotiate the terms of the sale. However, Robbie never actually takes title to any of the equipment himself, nor does he provide any financing for the buyer. Robbie is acting as a:
A) channel captain.
B) broker.
C) wholesaler.
D) logistics specialist.
Free
Multiple Choice
Q 194Q 194
Sharp Focus Cameras is facing intense competitive pressure. Top marketing managers are looking for ways to cut costs. They are considering a plan to cut distribution costs by eliminating marketing intermediaries from the channel of distribution. If Sharp Focus carries out this plan, it is likely to find that:
A) most of the marketing functions performed by marketing intermediaries are helpful, but they aren't really necessary.
B) as the producer of the products, it will be able to perform the same functions more efficiently.
C) it will be unable to perform the functions as efficiently as they were performed by the marketing intermediaries.
D) telemarketing will become the only viable means of distributing its products.
Free
Multiple Choice
Q 195Q 195
__________ is the value or want-satisfying ability that is added to products by organizations that make the product more useful or accessible to consumers.
A) Utility
B) Applicability
C) Functionality
D) User friendliness
Free
Multiple Choice
Q 196Q 196
__________ utility is usually provided by producers rather than marketers.
A) Possession
B) Time
C) Place
D) Form
Free
Multiple Choice
Q 197Q 197
The types of utility commonly provided by marketing intermediaries include:
A) product, price, place, and promotion.
B) time, place, possession, information, and service.
C) retailing, wholesaling, brokering, and financing.
D) cost, value, flexibility, use, and resale.
Free
Multiple Choice
Q 198Q 198
When marketing intermediaries perform the steps necessary to transfer ownership from one party to another, they are providing _________ utility.
A) marginal
B) title
C) possession
D) registration
Free
Multiple Choice
Q 199Q 199
Placing ads in newspapers and having knowledgeable salespeople to answer customers' questions are ways marketing intermediaries can provide:
A) form utility.
B) possession utility.
C) time utility.
D) information utility.
Free
Multiple Choice
Q 200Q 200
One way a store selling high-def televisions might add ________ utility is to provide convenient delivery and setup to customers.
A) possession
B) distributive
C) conditional
D) time
Free
Multiple Choice
Q 201Q 201
Marketing intermediaries add ________ utility to products by having them available when consumers want them.
A) time
B) allocative
C) response
D) form
Free
Multiple Choice
Q 202Q 202
_________ utility adds value to goods by having them available where people want them.
A) Spatial
B) Location specific
C) Place
D) Geographic
Free
Multiple Choice
Q 203Q 203
Retailers who have stores at convenient locations are trying to add value by:
A) using a horizontal distribution strategy.
B) using a broad resource allocation strategy.
C) providing place utility.
D) achieving market concentration.
Free
Multiple Choice
Q 204Q 204
One way traditional retailers have maintained customers in the face of increasing competition from online sellers and other direct markers is to place more emphasis on providing _________ utility.
A) psychographic
B) place
C) service
D) form
Free
Multiple Choice
Q 205Q 205
Marketing intermediaries can provide _________ utility by offering customers affordable credit, free delivery, and product guarantees.
A) possession
B) information
C) form
D) promotion
Free
Multiple Choice
Q 206Q 206
Stores that remain open 24 hours a day, seven days a week are providing _________ utility to their customers.
A) possession
B) time
C) service
D) schedule
Free
Multiple Choice
Q 207Q 207
The Knot is an online company that helps people with the complex task of planning a wedding. Multiple vendors are recommended for things like flowers, caterers, wedding gowns, and more. Through The Knot, a couple can establish a website that acts as a registry. Once the couple is married, the website directs them to another site having to do with beginning married life. What type of utility or utilities is this site providing to its users?
A) Form only
B) Service only
C) Service and information
D) Form and service
Free
Multiple Choice
Q 208Q 208
E-Gadgets is a chain of electronics stores that specializes in devices and gadgets incorporating cutting-edge technologies. The company has more than 170 stores located in large cities throughout the Southeast and Midwest. E-Gadgets has chosen the locations of its stores so that most customers living in upper middle class and wealthy neighborhoods can get to an E-Gadgets store in less than 15 minutes. E-Gadgets is providing its customers with:
A) scrambled merchandising.
B) allocative utility.
C) place utility.
D) saturation marketing.
Free
Multiple Choice
Q 209Q 209
Barbeau Heating and Cooling offers customers who buy air conditioners and furnaces free delivery and low installation charges. The company also offers a free follow-up inspection of the new equipment one month after it is installed. These services are ways that Barbeau provides its customers with __________ utility.
A) possession
B) time
C) marginal
D) situational
Free
Multiple Choice
Q 210Q 210
Which of the following statements about service utility is most accurate? Service utility is:
A) becoming less important to retailers in this age of self-service marketing.
B) the one type of utility that online firms provide more efficiently than traditional retailers.
C) more likely to be provided by wholesalers than by retailers.
D) becoming crucial to traditional retailers as they try to prevent their customers from defecting to firms using direct marketing.
Free
Multiple Choice
Q 211Q 211
At Stockman's Butcher Shop the butchers will hand cut steaks to the thickness their customers specify and trim off the excess fat. This extra service provides ________ utility.
A) possession
B) form
C) secondary
D) alterational
Free
Multiple Choice
Q 212Q 212
____________ wholesalers are independently owned and take title to the goods they handle.
A) Full service broker
B) Merchant
C) Agent
D) Primary
Free
Multiple Choice
Q 213Q 213
The two basic types of merchant wholesalers are:
A. full-service wholesalers and limited-function wholesalers.
B. functional wholesalers and distributive wholesalers.
C. independent wholesalers and subsidiary wholesalers.
D. capital wholesalers and full-value wholesalers.
Free
Essay
Q 214Q 214
___________ are merchant wholesalers who perform all of the distribution functions.
A) Retailers
B) Intensive contact wholesalers
C) Total-capacity wholesalers
D) Full-service wholesalers
Free
Multiple Choice
Q 215Q 215
Marketing intermediaries that solicit orders from retailers or other wholesalers and have the products delivered directly from the producer to the buyer are known as:
A) drop shippers.
B) truck jobbers.
C) channel captains.
D) merchandise agents.
Free
Multiple Choice
Q 216Q 216
___________ are limited-function wholesalers who furnish shelves full of merchandise to retailers who sell these items on consignment.
A) Cash-and-carry wholesalers
B) Rack jobbers
C) Merchandise forwarders
D) Consignment agents
Free
Multiple Choice
Q 217Q 217
Limited-function wholesalers that mainly serve small businesses by selling them a limited assortment of goods are known as:
A) backdoor wholesalers.
B) consolidated wholesalers.
C) cash-and-carry wholesalers.
D) agency wholesalers.
Free
Multiple Choice
Q 218Q 218
Unlike merchant wholesalers, ___________ never actually own the goods they help to distribute.
A) rack jobbers
B) retailers
C) cash-and-carry wholesalers
D) agents and brokers
Free
Multiple Choice
Q 219Q 219
__________ may represent several producers in a specific territory, as long as they do not represent competing products.
A) Consignment brokers
B) Sales contractors
C) Manufacturer's agents
D) Freight forwarders
Free
Multiple Choice
Q 220Q 220
The main way __________ differ from agents is that they do not develop long-term relationships with the buyers or sellers they assist.
A) brokers
B) rack jobbers
C) wholesalers
D) sales discounters
Free
Multiple Choice
Q 221Q 221
Which of the following activities would a drop shipper be most likely to perform?
A) Provide delivery services from a wholesaler's warehouse to a retailer's store
B) Solicit orders from a retailer and arrange for the producer to make the deliveries
C) Manage a large stock of items in a single product category, and make large volume shipments to other intermediaries using rail or truck
D) Provide brokerage services by helping other wholesalers negotiate deals
Free
Multiple Choice
Q 222Q 222
Which of the following statements provides the most accurate distinction between an agent and a broker? Agents:
A) represent final buyers while brokers represent marketing intermediaries.
B) represent one manufacturer in a large sales area, while brokers represent several different manufacturers in a smaller area.
C) develop a long-term relationship with the people they represent, while brokers are usually hired on a temporary basis.
D) take title to the goods they help distribute, while brokers never assume ownership of the products they distribute.
Free
Multiple Choice
Q 223Q 223
Paper 'N More sells a variety of office supplies to small businesses and local offices. The fact that it sells only to other firms and not consumers indicates that Paper 'N More engages only in:
A) wholesale sales.
B) mass marketing.
C) pure retailing.
D) second-tier retailing.
Free
Multiple Choice
Q 224Q 224
Rita Sauer stocks several local supermarkets and discount stores with Lumi Cosmetics. She sets up displays of various cosmetic products carrying the Lumi brand name, and sells the goods on consignment, sharing any profits on the sales with the retailer. Rita is a:
A) cash-and-carry wholesaler.
B) truck jobber.
C) broker.
D) rack jobber.
Free
Multiple Choice
Q 225Q 225
Comstock Coal Distributors does not mine coal itself. In fact, the firm does not even store or handle coal. Instead, Comstock solicits orders for low sulfur coal from other firms, then purchases the required amount from suppliers and directs them to ship the coal to its customers. Comstock is a:
A) drop shipper.
B) resource delivery facilitator.
C) cash-and-carry wholesaler.
D) limited distribution broker.
Free
Multiple Choice
Q 226Q 226
Which of the following would be the best example of a broker?
A) Tri-State Lumber Supply does not actually store, handle, or deliver lumber, but rather solicits orders from retail hardware and home improvement stores, takes title to the lumber, then arranges for it to be shipped directly from sawmills to the retail stores.
B) Jill Moon helps buyers and sellers of used heavy construction equipment negotiate the terms and conditions of their transactions, but does not actually take title to any of the equipment, nor does she develop long-term relationships with the buyers or sellers.
C) Hal Hinton is not an employee of Hyloft Golf Clubs, but he does solicit sales for their products at golf and sporting goods stores in a fairly large sales territory.
D) Spence Coker is employed by a vacuum cleaner company, and goes door-to-door selling products produced by his company.
Free
Multiple Choice
Q 227Q 227
Discount stores, supermarkets, and department stores are all common types of:
A) multilevel marketers.
B) full-service wholesalers.
C) retail stores.
D) category killers.
Free
Multiple Choice
Q 228Q 228
A(n) __________ sells general merchandise directly from the manufacturer at a discount; items may be discontinued or have certain product flaws.
A) department store
B) discount store
C) outlet store
D) specialty store
Free
Multiple Choice
Q 229Q 229
Discount stores owe much of their success to a competitive strategy based on:
A) low prices.
B) extra service.
C) special credit arrangements.
D) a wide selection in a limited number of categories of goods.
Free
Multiple Choice
Q 230Q 230
Retailers such as jewelry stores, shoe stores, and bicycle shops are:
A) department stores.
B) discount stores.
C) warehouse clubs.
D) specialty stores.
Free
Multiple Choice
Q 231Q 231
A __________ offers a huge selection of one type of product (such as books, toys, or sporting goods) to dominate that category of goods.
A) department store
B) category killer store
C) saturation retailer
D) cash-and-carry retailer
Free
Multiple Choice
Q 232Q 232
A firm that wants to distribute its products as widely in a market as possible would use a(n) ___________ distribution strategy.
A) extensive
B) shotgun
C) universal
D) intensive
Free
Multiple Choice
Q 233Q 233
A(n) ___________ distribution strategy distributes a product through only a preferred group of retailers in a given area.
A) intensive
B) selective
C) exclusive
D) restrictive
Free
Multiple Choice
Q 234Q 234
A(n) ______________ distribution strategy uses only one retail outlet in a given geographic area.
A) selective
B) restrictive
C) exclusive
D) solitary
Free
Multiple Choice
Q 235Q 235
Producers of snack foods (such as candy bars or potato chips) are most likely to use a(n) _____________ distribution strategy for their products.
A) intensive
B) exclusive
C) selective
D) restrictive
Free
Multiple Choice
Q 236Q 236
___________ would probably be distributed using an intensive strategy.
A) iPads
B) High-def television sets
C) Men's suits
D) Popular magazines
Free
Multiple Choice
Q 237Q 237
Which of the following firms would be most likely to use a selective distribution strategy for its products?
A) Newspaper publisher
B) Maker of designer men's suits
C) Super luxury car manufacturer
D) Maker of snack foods such as potato chips and pretzels
Free
Multiple Choice
Q 238Q 238
Producers who use an exclusive distribution strategy for their products can expect retailers who carry the products to do which of the following?
A) Carry a large inventory of their products
B) Provide limited service and delivery for their products
C) Sell their products at substantially discounted prices
D) Pay attention to the multiple competing brands that they carry
Free
Multiple Choice
Q 239Q 239
Marcy and Liz developed a new jewelry design. They were fortunate to get the attention of a large online retailer who was willing to fund the production of the jewelry abroad, as long as the designers agreed to sell their design through its outlets for the first two years. The retailer was asking the designers to agree to __________________.
A) intensive distribution
B) exclusive distribution
C) multi-level distribution
D) selective distribution
Free
Multiple Choice
Q 240Q 240
Sportstors, Inc., operates a chain of very large stores that offer an incredible selection of sporting goods at very competitive prices. When Sportstors opens its first store in a geographic area, smaller sporting goods stores almost always experience a noticeable drop in sales. Sportstors stores can be classified as:
A) warehouse clubs.
B) department stores.
C) category killers.
D) full-service wholesalers.
Free
Multiple Choice
Q 241Q 241
Northern Lights Electronics just completed plans to distribute its new tablet. The product has several unique features that differentiate it from competitor products. The marketing team plans to begin a roll-out with ____________ to only one traditional retailer for the first two months. This strategy will give consumers the perception of the product's stand-out personality and increase demand. Marketing will proceed with _______________ for the next four months, where it plans to distribute to three other retailers, as well. For the last six months of the year, it will initiate distribution agreements with discount retailers and online retailers, and any other electronics store that wants to carry it. The marketing team is confident that the tablet will cycle through the first three stages of its product life cycle quickly. As the tablet reaches maturity during the second half of its first year in the market, it is good strategy to proceed with ______________, as described above.
A) mono-level distribution; secondary level distribution; tertiary level distribution
B) intensive distribution; selective distribution; exclusive distribution
C) tertiary level distribution; secondary level distribution; mono-level distribution
D) exclusive distribution; selective distribution; intensive distribution
Free
Multiple Choice
Q 242Q 242
Tammy Knowles is the publisher of "New Woman Magazine," which is a publication targeted to Gen Y women. Because it is a small, new publication, some of the larger bookstores, convenience stores and newsstands are not agreeing to distribute the magazine. Tammy is very concerned by this trend, because she believes that her publication, like most magazines, needs ____________ distribution in order to succeed.
A) selective
B) exclusive
C) intensive
D) exhaustive
Free
Multiple Choice
Q 243Q 243
Delacroix Shoes produces top-quality high-fashion shoes, designed for the person concerned about style. Delacroix gives only a few preferred retailers in a given market area the right to market its product. Delacroix Shoes uses:
A) intensive distribution.
B) selective distribution.
C) exclusive distribution.
D) limited function distribution.
Free
Multiple Choice
Q 244Q 244
Lazario Motor Car Company produces some of the most luxurious and expensive cars in the world. The company typically authorizes only a single dealership to sell its cars in certain major metropolitan areas. In less populous areas, Lazario authorizes a single dealer for an entire state or region. The manufacturer of Lazario automobiles is using a(n) ___________ distribution strategy for its product.
A) intensive
B) primary
C) extrinsic
D) exclusive
Free
Multiple Choice
Q 245Q 245
___________ means selling goods and services to ultimate consumers over the Internet.
A) Electronic retailing
B) B2B distribution
C) E-selling
D) Intercommerce
Free
Multiple Choice
Q 246Q 246
___________ is the sale of goods and services by telephone.
A) Cel-tailing
B) Teleselling
C) Telemarketing
D) Direct marketing
Free
Multiple Choice
Q 247Q 247
Vending machines are most often used to sell:
A) shopping goods.
B) convenience goods.
C) specialty goods.
D) inferior goods.
Free
Multiple Choice
Q 248Q 248
Mall owners like to have __________ located along the walkways of their malls, because they create a marketplace type of atmosphere.
A) cartels
B) storettes
C) kiosks
D) minimarts
Free
Multiple Choice
Q 249Q 249
Companies who send salespeople to customers' homes or places of work are making use of __________ selling.
A) direct
B) point of contact
C) downline
D) nonretail
Free
Multiple Choice
Q 250Q 250
In _____________, salespeople are independent contractors who not only sell the product, but also recruit additional salespeople.
A) telemarketing
B) two-stage marketing
C) hierarchical marketing
D) multilevel marketing
Free
Multiple Choice
Q 251Q 251
In multilevel marketing, independent contractors who sell a product can increase their own incomes by recruiting _________ to also sell the product.
A) commissionaires
B) front-men
C) merchant wholesalers
D) downliners
Free
Multiple Choice
Q 252Q 252
In the terminology of multilevel marketing, downliners:
A) are the intermediaries who are responsible for handling the shipping of goods down the channel of distribution from the producer to the retailer.
B) are salespeople who have been recruited by other salespeople known as upliners to market the product.
C) sell through a telemarketing arrangement, while upliners use direct selling.
D) are experienced salespeople who are allowed to sell in more than one franchise area by the distributor.
Free
Multiple Choice
Q 253Q 253
Direct mail, telemarketing, and catalog sales are all common examples of:
A) direct marketing.
B) downline selling.
C) multilevel marketing.
D) direct selling.
Free
Multiple Choice
Q 254Q 254
Any marketing method that directly links manufacturers or intermediaries with the ultimate consumer could be classified as:
A) direct selling.
B) online marketing.
C) direct marketing.
D) kiosk-based.
Free
Multiple Choice
Q 255Q 255
The characteristic that all forms of direct marketing have in common is that they:
A) are carried out by agents or brokers.
B) involve face-to-face or teleconferencing sessions with the customer.
C) include some type of activity that directly links manufacturers to the ultimate consumer.
D) make use of exclusive distribution systems with a network of traditional "bricks and mortar" stores.
Free
Multiple Choice
Q 256Q 256
In the terminology of multilevel marketing, which of the following statements about the relationship between upliners and downliners is most accurate? In multilevel marketing,
A) upliners are intermediaries who deal directly with final customers, while downliners are intermediaries who coordinate the transportation and storage services the upliners need to move the goods they sell through the channel of distribution.
B) upliners are salespeople who act as independent contractors, earning commissions on their own sales and also on the sales of downliners, who are additional salespeople that they recruit.
C) upliners sell through electronic retailing arrangements, while downliners use more traditional methods of retail selling.
D) upliners use intensive distribution strategies to sell a good, while downliners use either a selective or exclusive distribution strategy to sell the same type of good.
Free
Multiple Choice
Q 257Q 257
Which of the following statements identifies a key advantage of direct marketing? Direct marketing:
A) enables salespeople to close a non-refundable sale in the customer's home or place of work.
B) allows firms to expand their markets by selling to both ultimate consumers and other marketing intermediaries.
C) is popular with consumers because it is so convenient to shop from home or work.
D) creates a strong incentive for salespeople to recruit additional salespeople in order to gain the greatest possible market coverage.
Free
Multiple Choice
Q 258Q 258
Which of the following assessments of electronic retailing is most accurate?
A) Electronic retailing has two major advantages over traditional businesses: simplicity and very low start-up costs.
B) One of the reasons electronic retailing firms have been so successful has been their ability to deal with customer complaints and provide personalized services more efficiently than traditional firms.
C) Traditional retailers seldom find much success when they attempt to incorporate online selling into their businesses.
D) The line between electronic retailing and traditional retailing is blurring as traditional retailers go online.
Free
Multiple Choice
Q 259Q 259
Which of the following statements about kiosks and carts is the most accurate?
A) Kiosks and carts are popular with mall owners because their sales are exempt from sales taxes.
B) Mall owners often want kiosks and carts to be located along their walkways because they create a marketplace atmosphere.
C) Kiosks and carts have struggled in recent years because of their high overhead costs.
D) Most mall owners would like to eliminate kiosks and carts from their walkways, but are barred by law from doing so.
Free
Multiple Choice
Q 260Q 260
Sports Coasters sells good-quality athletic wear by sending its customers a catalog nine times a year. The company has no retail stores, but offers a toll-free order number that operates 24 hours a day, 365 days a year. Sports Coasters sells using a technique known as:
A) tel-tailing.
B) indirect marketing.
C) telemarketing.
D) multilevel marketing.
Free
Multiple Choice
Q 261Q 261
Which of the following is an example of a consumer making a purchase through a direct marketing arrangement?
A) Purchasing a box of cereal at a local grocery store with a coupon on the box
B) Purchasing software at a big-box retailer's special tech department
C) Purchasing a set of towels featured in a department store's lower level
D) Purchasing a book on the history of the U.S. by sending in an order form attached to a pamphlet sent to the customer by the publisher
Free
Multiple Choice
Q 262Q 262
In a(n) ____________ distribution system all of the organizations in the channel of distribution are owned by one firm.
A) administered
B) contractual
C) supply-based
D) corporate
Free
Multiple Choice
Q 263Q 263
In a(n) __________ distribution system the producer manages all of the marketing functions at the retail level.
A) administered
B) contractual
C) conglomerate
D) master limited
Free
Multiple Choice
Q 264Q 264
Franchise systems are one type of __________ distribution system.
A) corporate
B) wholesale
C) contractual
D) administered
Free
Multiple Choice
Q 265Q 265
McDonald's, KFC, Baskin-Robbins, and AAMCO all make use of the __________ form of contractual distribution system.
A) wholesale-sponsored chain
B) franchise
C) retail cooperative
D) horizontally administered
Free
Multiple Choice
Q 266Q 266
In a(n) ___________, independently owned and managed stores sign an agreement to use the same name, participate in chain promotions, and cooperate as a unified system.
A) administered distribution system
B) corporate distribution system
C) wholesaler-sponsored chain
D) cash-and-carry chain
Free
Multiple Choice
Q 267Q 267
Taken together, all of the organizations that move goods from the sources of raw materials to ultimate consumers are known as a:
A) multifunction network.
B) supply chain.
C) critical distribution path.
D) marketing priority network.
Free
Multiple Choice
Q 268Q 268
__________ manages the movement of raw materials, parts, work in progress, finished goods and related information throughout the supply chain, as well as managing the return of goods when necessary and the recycling of goods when appropriate.
A) Distribution planning
B) Multilevel marketing
C) Supply chain management
D) Distributional strategy
Free
Multiple Choice
Q 269Q 269
A common trait of corporate distribution systems, administered distribution systems, contractual distribution systems and supply chains is that they all:
A) are arrangements which seek to distribute goods more efficiently by eliminating most functions performed by marketing intermediaries.
B) seek to consolidate and control the distribution system by having one firm own all of the distribution functions.
C) attempt to improve the efficiency of distribution systems by linking the firms together in a formal relationship.
D) have been replaced by more efficient distribution systems relying heavily on online linkages.
Free
Multiple Choice
Q 270Q 270
One thing that franchise systems, wholesaler-sponsored chains and retail cooperatives have in common is that they are all:
A) distribution systems in which producers also act as intermediaries in the distribution process.
B) dependent on multilevel marketing strategies.
C) forms of distribution systems in which a single firm owns all of the organizations involved in distributing the product.
D) forms of contractual distribution systems.
Free
Multiple Choice
Q 271Q 271
In administered distribution systems, retailers:
A) are reluctant to cooperate because they must perform many marketing functions for an uncertain payment.
B) receive a great deal of marketing help from producers.
C) are really subsidiaries of a manufacturer.
D) sign a contract agreeing to cooperate with wholesalers in the channel of distribution.
Free
Multiple Choice
Q 272Q 272
Which of the following statements about wholesaler-sponsored chains is most accurate? In a wholesaler-sponsored chain all stores:
A) are independently owned, but cooperate as a unified system of stores.
B) act independently except for an agreement to share the costs associated with distribution.
C) are owned by a single wholesaler, but operate under separate management.
D) share profits and losses according to a contractual arrangement.
Free
Multiple Choice
Q 273Q 273
Which of the following activities is most likely to be performed by someone responsible for supply chain management?
A) Developing an effective advertising campaign for a particular line of products
B) Establishing a budget for the firm's next fiscal year
C) Finding ways to handle the return of goods and recycled materials
D) Holding focus groups to learn what consumers want in new products
Free
Multiple Choice
Q 274Q 274
Sherwin Williams owns its manufacturing sites as well as over 3,000 retail stores in North America. Sherwin Williams exemplifies a ___________________.
A) selective distribution system
B) contractual distribution system
C) administered distribution system
D) corporate distribution system
Free
Multiple Choice
Q 275Q 275
TasteBest Spice Company was unable to get retailers to agree to a contractual arrangement to cooperate in the distribution process, so it took over all of the marketing functions for its products at grocery stores. The grocers like this arrangement because TasteBest provides outstanding marketing support for its products. TasteBest is using a(n) _________ system to distribute its products.
A) corporate distribution
B) franchise
C) retail cooperative distribution
D) administered distribution
Free
Multiple Choice
Q 276Q 276
Millie Woods owns and operates a World of Food grocery store. Although her store is independently owned and operated, she has signed an agreement with over seventy stores in the Midwest to use a common name, participate in chain promotions, and cooperate with other stores in the chain. Millie's store is part of a(n):
A) administered chain.
B) wholesaler-sponsored chain.
C) corporate distribution system.
D) horizontal distribution chain.
Free
Multiple Choice
Q 277Q 277
Tony works at an auto assembly plant for a U.S. auto manufacturer. He manages a group of employees who measure the quality of parts that arrive on rail cars from Mexico and other countries. As a receiver of auto parts from other suppliers, Tony works in __________________.
A) third-party logistics.
B) supply chain management.
C) a corporate distribution system.
D) direct mail operations.
Free
Multiple Choice
Q 278Q 278
Rodney Halpern works in the marketing department of a major manufacturing firm. Much of his job involves managing the movement of materials, parts, and information from suppliers to his firm. He tries to coordinate these flows with his firm's factory processes and assists with the efficient movement of finished goods to final consumers. These activities suggest that Rodney's job responsibilities focus on:
A) merchant wholesaling.
B) multilevel marketing.
C) utility processing.
D) supply chain management.
Free
Multiple Choice
Q 279Q 279
_________ involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.
A) Export management
B) Multi-level marketing
C) Logistics
D) Shipping control management
Free
Multiple Choice
Q 280Q 280
__________ brings raw materials, packaging, other goods and services, and information from suppliers to producers.
A) Freight forwarding
B) Inbound logistics
C) Materials handling
D) Supply side logistics
Free
Multiple Choice
Q 281Q 281
__________ deals with moving finished products and information to business buyers and ultimate consumers.
A) Inbound logistics
B) Outbound logistics
C) Final stage logistics
D) Wholesale distribution
Free
Multiple Choice
Q 282Q 282
When firms manage the return of goods from consumers either because they are defective or for recycling purposes, they are involved in:
A) materials handling.
B) inbound logistics.
C) factory processes.
D) reverse logistics.
Free
Multiple Choice
Q 283Q 283
__________ is the term used to describe the use of outside firms to help move their goods through the supply chain.
A) Third-party logistics
B) Multilevel distribution
C) External logistics
D) Mediated distribution
Free
Multiple Choice
Q 284Q 284
Currently, in the United States the greatest volume of goods and services is shipped by:
A) trucks and vans.
B) pipelines.
C) rail.
D) water.
Free
Multiple Choice
Q 285Q 285
____________ put many small shipments together to create a single large shipment that can be transported more cost-efficiently to the final destination.
A) Containerized shippers
B) Freight consolidators
C) Mixed merchandisers
D) Freight forwarders
Free
Multiple Choice
Q 286Q 286
Pipelines are used primarily to transport:
A) coal slurry.
B) hazardous wastes.
C) ammonia and acids.
D) water, petroleum and petroleum products.
Free
Multiple Choice
Q 287Q 287
_____________ shipping uses several different modes of transportation to complete a single long-distance movement of freight.
A) Intermodal
B) Multilevel
C) Flexmode
D) LAST (land-air-sea transport)
Free
Multiple Choice
Free
Multiple Choice
Q 289Q 289
The two basic types of warehouses are:
A) public and private.
B) railside and portside.
C) storage and distribution.
D) seasonal and long-term.
Free
Multiple Choice
Q 290Q 290
__________ warehouses are used to gather and redistribute products.
A) Storage
B) Distribution
C) Wholesale
D) Merchandising
Free
Multiple Choice
Q 291Q 291
__________ warehouses are used to hold products for a relatively long time.
A) Storage
B) Public
C) Seasonal
D) Distribution
Free
Multiple Choice
Q 292Q 292
Logistics is concerned:
A) with flows of materials, finished products, and information.
B) only with the flow of information, not the flow of materials and products.
C) with the flow of materials to the manufacturer and with the flow of finished products to the consumer, but not with the flow of information.
D) only with the flow of finished goods from the producer to the final consumer.
Free
Multiple Choice
Q 293Q 293
The part of logistics that is most concerned with the flow of goods as well as work in process within the manufacturing firm is:
A) inbound logistics.
B) materials handling.
C) reverse logistics.
D) outbound logistics.
Free
Multiple Choice
Q 294Q 294
Compared to rail transportation, one of the advantages of shipping by truck is that trucks:
A) are more energy efficient.
B) can carry a greater volume.
C) can reach more destinations.
D) are less expensive.
Free
Multiple Choice
Q 295Q 295
Compared to railroads and trucks, the biggest advantage offered by air transport is that it is:
A) faster.
B) more dependable.
C) lower in cost.
D) able to reach more destinations.
Free
Multiple Choice
Q 296Q 296
Items such as snow skis, lawnmowers, and other highly seasonal items are often held in ___________ warehouses during the months they are not in demand.
A) seasonal
B) distribution
C) set aside
D) storage
Free
Multiple Choice
Q 297Q 297
Businesses are using ______________ and other ways to track goods and control the flow of goods from point of origin to point of consumption. "Tracking" is an important part of the process of managing the flow of goods, an activity that marketers call _____________.
A) TTI (tag team identification); materials handling
B) RFID (radio frequency identification); intermediation
C) RFID (radio frequency identification); logistics
D) Reverse logistics; materials handling
Free
Multiple Choice
Q 298Q 298
Which of the following activities would be most closely associated with inbound logistics?
A) Arranging equipment on the factory floor so that materials move smoothly and efficiently from one work station to the next
B) Evaluating various shipping methods to find the most efficient way to transport goods to the final customer
C) Establishing a program to encourage customers to return used products to the manufacturer so materials can be recycled
D) Working with suppliers to establish a more frequent delivery system that will enable the manufacturing firm to hold smaller inventories of parts and materials
Free
Multiple Choice
Q 299Q 299
Mardelay Industries has discovered a defect in one of its products that may result in injury to users. The company believes it must quickly develop and implement a recall program. It is likely that Mardelay soon will be placing a great deal of emphasis on:
A) inbound logistics.
B) materials handling.
C) reverse logistics.
D) third-party logistics.
Free
Multiple Choice
Q 300Q 300
Marketing manager Connie Smythe is concerned that her firm is doing a poor job of managing the movement of finished products to the final consumer. If Connie is right, her firm should work to improve its:
A) outbound logistics.
B) administered support system.
C) materials handling.
D) coordination of its freight forwarders.
Free
Multiple Choice
Q 301Q 301
Jen Carter is trying to find ways to improve her firm's movement of materials and goods from its warehouse to the factory floor. Jen is looking into ways of making her firm's __________ more efficient.
A) internal logistics
B) outbound logistics
C) materials handling
D) factory processes
Free
Multiple Choice
Q 302Q 302
Marcia Baker ships orchids and other perishable flowers from her greenhouses near San Francisco to florists thousands of miles away in cities such as New York, Boston, and Philadelphia. Since the flowers must reach the florists as quickly as possible, the best mode of transportation for Marcia to use would be:
A) railroads.
B) trucks.
C) air.
D) ships.
Free
Multiple Choice
Q 303Q 303
Which type of wholesale organization would be most useful to a small manufacturer that has shipments that are too small to fill a truck or railcar?
A) Rack jobbers
B) Cash-and-carry wholesalers
C) Piggy-backers
D) Freight forwarders
Free
Multiple Choice
Q 304Q 304
Kidder Manufacturing wants to ship a large quantity of its goods across the country. They have contacted Wayback Shipping, Inc., to find out what the shipment would cost. Wayback has shown Kidder how it can arrange to use a combination of barges, trains, and trucks to complete the shipment at a low cost. Wayback's strategy is an example of:
A) online shipping.
B) intermodal shipping.
C) supply chain shipping.
D) multilevel distribution.
Free
Multiple Choice
Q 305Q 305
Explain why you agree or disagree with the following statement:
"Marketing intermediaries must charge a high enough price for the functions they perform to earn a profit. Therefore, the cost of distributing goods can almost always be reduced by eliminating marketing intermediaries from the channel of distribution."
Free
Essay
Q 306Q 306
What is utility? What are the major types of utility? Give an example of how marketing intermediaries can provide each type of utility.
Free
Essay
Q 307Q 307
What is a wholesaler? Describe the difference between merchant wholesalers and agents and brokers. Identify three types of limited-function wholesalers.
Free
Essay
Q 308Q 308
Retail distribution strategies can take three different forms. Identify the three forms and give examples of products that would be marketed using each strategy.
Free
Essay
Q 309Q 309
Identify and describe the four basic types of distribution systems that are used to link firms in a formal relationship.
Free
Essay
Q 310Q 310
What is logistics? Describe the types of issues you might deal with if you specialized in logistics.
Free
Essay
Q 311Q 311
Mini-Case
"We've got a number of important issues to discuss today," began Dee Stribyute as she opened the weekly marketing manager's meeting for Lite Bite Foods. Lite Bite is a producer of low fat, low calorie snack foods. The other managers attending the meeting were her two top assistants, Mark Etter and Rhea Taylor.
"First, sales were hurt last year when we had to recall our almond chocolate bars because of concerns about contaminated ingredients. We've got our work cut out for us to recover from that setback. Many stores quit carrying our products, and even the ones that continued to do so put less emphasis on displaying and promoting them. We've got to get our products into as many stores as possible. Consumers shouldn't have to go all over town trying to find our snacks. We also need to make sure that our products are displayed and promoted in a way that attracts attention." Dee looked at her assistants, and saw that they seemed ready to make some proposals. However, she decided to get another important issue out on the table before stopping to discuss solutions, so she continued with her comments. "The other big concern is the cost of moving our goods. Distribution costs are a major part of the overall cost of selling our goods. What can we do to make the flow of products from our kitchens to our ultimate consumers more efficient?" Having laid out her concerns, Dee sat down at the head of the table, saying to her assistants, "O.K. guys, I'm ready for suggestions."
-The need for Lite Bite to recall its almond chocolate bars suggests that it had to be very concerned with:
A) outbound logistics.
B) reverse logistics.
C) administered distribution.
D) drop shipping.
Free
Multiple Choice
Q 312Q 312
Mini-Case
"We've got a number of important issues to discuss today," began Dee Stribyute as she opened the weekly marketing manager's meeting for Lite Bite Foods. Lite Bite is a producer of low fat, low calorie snack foods. The other managers attending the meeting were her two top assistants, Mark Etter and Rhea Taylor.
"First, sales were hurt last year when we had to recall our almond chocolate bars because of concerns about contaminated ingredients. We've got our work cut out for us to recover from that setback. Many stores quit carrying our products, and even the ones that continued to do so put less emphasis on displaying and promoting them. We've got to get our products into as many stores as possible. Consumers shouldn't have to go all over town trying to find our snacks. We also need to make sure that our products are displayed and promoted in a way that attracts attention." Dee looked at her assistants, and saw that they seemed ready to make some proposals. However, she decided to get another important issue out on the table before stopping to discuss solutions, so she continued with her comments. "The other big concern is the cost of moving our goods. Distribution costs are a major part of the overall cost of selling our goods. What can we do to make the flow of products from our kitchens to our ultimate consumers more efficient?" Having laid out her concerns, Dee sat down at the head of the table, saying to her assistants, "O.K. guys, I'm ready for suggestions."
-Dee's comments about the need to get Lite Bite products into additional retail outlets suggests the company wants to use a(n):
A) intensive distribution strategy.
B) multilevel marketing strategy.
C) intermodal distribution network.
D) selective distribution strategy.
Free
Multiple Choice
Q 313Q 313
Mini-Case
"We've got a number of important issues to discuss today," began Dee Stribyute as she opened the weekly marketing manager's meeting for Lite Bite Foods. Lite Bite is a producer of low fat, low calorie snack foods. The other managers attending the meeting were her two top assistants, Mark Etter and Rhea Taylor.
"First, sales were hurt last year when we had to recall our almond chocolate bars because of concerns about contaminated ingredients. We've got our work cut out for us to recover from that setback. Many stores quit carrying our products, and even the ones that continued to do so put less emphasis on displaying and promoting them. We've got to get our products into as many stores as possible. Consumers shouldn't have to go all over town trying to find our snacks. We also need to make sure that our products are displayed and promoted in a way that attracts attention." Dee looked at her assistants, and saw that they seemed ready to make some proposals. However, she decided to get another important issue out on the table before stopping to discuss solutions, so she continued with her comments. "The other big concern is the cost of moving our goods. Distribution costs are a major part of the overall cost of selling our goods. What can we do to make the flow of products from our kitchens to our ultimate consumers more efficient?" Having laid out her concerns, Dee sat down at the head of the table, saying to her assistants, "O.K. guys, I'm ready for suggestions."
-Dee's suggestion that the company needed more control over the way its products were displayed, priced, and promoted prompted a lot of discussion. Mark suggested that the company should manage these marketing functions for its products at the retail outlets. Mark appears to be suggesting that Lite Bite use a(n):
A) corporate distribution system.
B) franchise arrangement.
C) manufacturer-sponsored marketing chain.
D) administered distribution system.
Free
Multiple Choice
Q 314Q 314
Mini-Case
"We've got a number of important issues to discuss today," began Dee Stribyute as she opened the weekly marketing manager's meeting for Lite Bite Foods. Lite Bite is a producer of low fat, low calorie snack foods. The other managers attending the meeting were her two top assistants, Mark Etter and Rhea Taylor.
"First, sales were hurt last year when we had to recall our almond chocolate bars because of concerns about contaminated ingredients. We've got our work cut out for us to recover from that setback. Many stores quit carrying our products, and even the ones that continued to do so put less emphasis on displaying and promoting them. We've got to get our products into as many stores as possible. Consumers shouldn't have to go all over town trying to find our snacks. We also need to make sure that our products are displayed and promoted in a way that attracts attention." Dee looked at her assistants, and saw that they seemed ready to make some proposals. However, she decided to get another important issue out on the table before stopping to discuss solutions, so she continued with her comments. "The other big concern is the cost of moving our goods. Distribution costs are a major part of the overall cost of selling our goods. What can we do to make the flow of products from our kitchens to our ultimate consumers more efficient?" Having laid out her concerns, Dee sat down at the head of the table, saying to her assistants, "O.K. guys, I'm ready for suggestions."
-Currently, Lite Bite uses a lot of intermediaries to help distribute its products. Collectively, the organizations that participate in getting finished goods from Lite Bite to the ultimate consumers of its products are all part of the:
A) marketing mix.
B) franchise system.
C) channel of distribution.
D) marketing network.
Free
Multiple Choice
Q 315Q 315
Mini-Case
"We've got a number of important issues to discuss today," began Dee Stribyute as she opened the weekly marketing manager's meeting for Lite Bite Foods. Lite Bite is a producer of low fat, low calorie snack foods. The other managers attending the meeting were her two top assistants, Mark Etter and Rhea Taylor.
"First, sales were hurt last year when we had to recall our almond chocolate bars because of concerns about contaminated ingredients. We've got our work cut out for us to recover from that setback. Many stores quit carrying our products, and even the ones that continued to do so put less emphasis on displaying and promoting them. We've got to get our products into as many stores as possible. Consumers shouldn't have to go all over town trying to find our snacks. We also need to make sure that our products are displayed and promoted in a way that attracts attention." Dee looked at her assistants, and saw that they seemed ready to make some proposals. However, she decided to get another important issue out on the table before stopping to discuss solutions, so she continued with her comments. "The other big concern is the cost of moving our goods. Distribution costs are a major part of the overall cost of selling our goods. What can we do to make the flow of products from our kitchens to our ultimate consumers more efficient?" Having laid out her concerns, Dee sat down at the head of the table, saying to her assistants, "O.K. guys, I'm ready for suggestions."
-After listening to all of the challenges and issues, Rhea said she wanted to propose a more sweeping change. "Mark has already suggested doing some of the retailer's job for them. I say go even further-let's just do away with all of the intermediaries. We can perform all of their functions ourselves," she said. She went on to explain that, "Since we won't have to deal with intermediaries, my suggestion is bound to simplify the distribution process and cut costs dramatically." Rhea's suggestion:
A) is truly radical because it calls for the elimination of the entire supply chain.
B) is an example of an administered and contractual distribution system.
C) should be viewed with some skepticism, because it ignores the fact that intermediaries usually create enough value to justify their inclusion in the distribution process.
D) is not really very radical, since most manufacturing firms in recent years have used this approach to bring about dramatic reductions in their costs of distribution.
Free
Multiple Choice