Question 1

In retail cooperatives, the members of the distribution system are bound to cooperate by a contractual agreement.

Accepted Answer

A) True 
 B)False

Question 2

One thing that franchise systems, wholesaler-sponsored chains, and retail cooperatives have in common is that they are all

Accepted Answer

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. 
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.

Question 3

________ warehouses are used to hold products for a relatively long time.

Accepted Answer

A)  Storage 
B)  Public 
C)  Seasonal 
D)  Distribution 
A)  Storage 
B)  Public 
C)  Seasonal 
D)  Distribution

Question 4

Direct marketing involves having a salesperson visit the customer's home or place of business.

Accepted Answer

A) True 
 B)False

Question 5

The two basic types of merchant wholesalers are

Accepted Answer

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. 
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.

Question 6

The basic transportation service criteria are speed, cost, dependability, flexibility, frequency, and reach.

Accepted Answer

A) True 
 B)False

Question 7

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)

Accepted Answer

A)  intensive distribution strategy. 
B)  multilevel marketing strategy. 
C)  intermodal distribution network. 
D)  selective distribution strategy. 
A)  intensive distribution strategy. 
B)  multilevel marketing strategy. 
C)  intermodal distribution network. 
D)  selective distribution strategy.

Question 8

Marketing intermediaries concentrate on providing mainly form, time, and place utility, while producers focus on the provision of possession, information, and service utility.

Accepted Answer

A) True 
 B)False

Question 9

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.

Accepted Answer

A) True 
 B)False

Question 10

Morgner 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 Morgner provides its customers with ________ utility.

Accepted Answer

A)  possession 
B)  time 
C)  marginal 
D)  situational 
A)  possession 
B)  time 
C)  marginal 
D)  situational

Question 11

McDonald's, Planet Fitness, Baskin-Robbins, and Dunkin Donuts all make use of the ________ form of contractual distribution system.

Accepted Answer

A)  wholesale-sponsored chain 
B)  franchise 
C)  retail cooperative 
D)  horizontally administered 
A)  wholesale-sponsored chain 
B)  franchise 
C)  retail cooperative 
D)  horizontally administered

Question 12

In the distribution process, the largest percentage of the retail price goes to

Accepted Answer

A)  profits. 
B)  warehouse costs. 
C)  labor. 
D)  transportation. 
A)  profits. 
B)  warehouse costs. 
C)  labor. 
D)  transportation.

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

An advantage of a selective distribution strategy is that consumers are able to find a popular product at a wide variety of retailers.

Accepted Answer

A) True 
 B)False

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following activities would be most closely associated with inbound logistics?

Accepted Answer

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 
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

Question 17

Annie, a marketing manager, is worried her firm is doing a poor job of managing the movement of finished products to the final consumer. If she is right, the company should work to improve its

Accepted Answer

A)  outbound logistics. 
B)  administered support system. 
C)  materials handling. 
D)  coordination of its freight forwarders. 
A)  outbound logistics. 
B)  administered support system. 
C)  materials handling. 
D)  coordination of its freight forwarders.

Question 18

Brokers are marketing intermediaries that take title to the goods they help distribute.

Accepted Answer

A) True 
 B)False

Question 19

Taken together, all of the organizations that move goods from the sources of raw materials to ultimate consumers are known as a

Accepted Answer

A)  multifunction network. 
B)  supply chain. 
C)  critical distribution path. 
D)  marketing priority network. 
A)  multifunction network. 
B)  supply chain. 
C)  critical distribution path. 
D)  marketing priority network.

Question 20

________ is the term used to describe the use of outside firms to help move their goods through the supply chain.

Accepted Answer

A)  Third-party logistics 
B)  Multilevel distribution 
C)  External logistics 
D)  Mediated distribution 
A)  Third-party logistics 
B)  Multilevel distribution 
C)  External logistics 
D)  Mediated distribution

Exam 15: Distributing Products

In retail cooperatives, the members of the distribution system are bound to cooperate by a contractual agreement.

One thing that franchise systems, wholesaler-sponsored chains, and retail cooperatives have in common is that they are all

________ warehouses are used to hold products for a relatively long time.

Direct marketing involves having a salesperson visit the customer's home or place of business.

The two basic types of merchant wholesalers are

The basic transportation service criteria are speed, cost, dependability, flexibility, frequency, and reach.

Marketing intermediaries concentrate on providing mainly form, time, and place utility, while producers focus on the provision of possession, information, and service utility.

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.

McDonald's, Planet Fitness, Baskin-Robbins, and Dunkin Donuts all make use of the ________ form of contractual distribution system.

In the distribution process, the largest percentage of the retail price goes to

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.

An advantage of a selective distribution strategy is that consumers are able to find a popular product at a wide variety of retailers.

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.

Which of the following activities would be most closely associated with inbound logistics?

Annie, a marketing manager, is worried her firm is doing a poor job of managing the movement of finished products to the final consumer. If she is right, the company should work to improve its

Brokers are marketing intermediaries that take title to the goods they help distribute.

Taken together, all of the organizations that move goods from the sources of raw materials to ultimate consumers are known as a

________ is the term used to describe the use of outside firms to help move their goods through the supply chain.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Working Within the Legal Environment

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

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