Question 1

In the Reaching Beyond Our Borders box in the chapter, soft drink producers like Coca-Cola have found that:

Accepted Answer

A) their strength in global markets clearly relates to the distribution structure established in the United States. 
B) distributing goods in global markets the same way as in the U.S. is foolish and unproductive. 
C) payoffs to global intermediaries is critical to succeed in most developing markets. 
D) small retailers have little chance to succeed in global markets due to the strength of large retail firms. 
A) their strength in global markets clearly relates to the distribution structure established in the United States. 
B) distributing goods in global markets the same way as in the U.S. is foolish and unproductive. 
C) payoffs to global intermediaries is critical to succeed in most developing markets. 
D) small retailers have little chance to succeed in global markets due to the strength of large retail firms.

Question 2

Although air transport currently accounts for only a small percentage of all shipments, it has become a critical mode in many industries.

Accepted Answer

A) True 
 B)False

Question 3

In the Reaching Beyond Our Borders box in the chapter, Coca-Cola found out that more than 80 percent of the developing world's customers buy products from very small entrepreneurs rather than larger stores.

Accepted Answer

A) True 
 B)False

Question 4

A common trait of corporate distribution systems, administered distribution systems, contractual distribution systems and supply chains is that they all:

Accepted Answer

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D) have been replaced by more efficient distribution systems relying heavily on online linkages. 
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D) have been replaced by more efficient distribution systems relying heavily on online linkages.

Question 5

Limited-function wholesalers are a type of merchant wholesaler.

Accepted Answer

A) True 
 B)False

Question 6

As long as they do not represent competing products, manufacturer's agents can represent more than one manufacturer in a given sales territory.

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 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):

Accepted Answer

A) corporate distribution system. 
B) franchise arrangement. 
C) manufacturer-sponsored marketing chain. 
D) administered distribution system. 
A) corporate distribution system. 
B) franchise arrangement. 
C) manufacturer-sponsored marketing chain. 
D) administered distribution system.

Question 8

Which of the following statements provides the most accurate distinction between an agent and a broker? Agents:

Accepted Answer

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. 
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.

Question 9

One way that marketers can provide utility is by making sure the good is available at a location that is convenient for consumers.

Accepted Answer

A) True 
 B)False

Question 10

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:

Accepted Answer

A) drop shipper. 
B) resource delivery facilitator. 
C) cash-and-carry wholesaler. 
D) limited distribution broker. 
A) drop shipper. 
B) resource delivery facilitator. 
C) cash-and-carry wholesaler. 
D) limited distribution broker.

Question 11

When marketing intermediaries perform the steps necessary to transfer ownership from one party to another, they are providing utility.

Accepted Answer

A) marginal 
B) title 
C) possession 
D) registration 
A) marginal 
B) title 
C) possession 
D) registration

Question 12

(Melanie is a broker who has just helped negotiate a major deal. As a broker Melanie can expect to earn a fixed amount of profit for her efforts regardless of the dollar value of the contract she negotiated.

Accepted Answer

A) True 
 B)False

Question 13

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:

Accepted Answer

A) wholesale sales. 
B) mass marketing. 
C) pure retailing. 
D) second-tier retailing. 
A) wholesale sales. 
B) mass marketing. 
C) pure retailing. 
D) second-tier retailing.

Question 14

Soundworthy Stereo is a producer of high quality speakers and stereo components. The company sells its products through a few preferred retailers in any geographic area. Soundworthy uses a selective distribution strategy.

Accepted Answer

A) True 
 B)False

Question 15

According to the Thinking Green box in the chapter, buying products from local producers is the real key to reducing carbon footprints.

Accepted Answer

A) True 
 B)False

In the Reaching Beyond Our Borders box in the chapter, soft drink producers like Coca-Cola have found that:

Although air transport currently accounts for only a small percentage of all shipments, it has become a critical mode in many industries.

In the Reaching Beyond Our Borders box in the chapter, Coca-Cola found out that more than 80 percent of the developing world's customers buy products from very small entrepreneurs rather than larger stores.

A common trait of corporate distribution systems, administered distribution systems, contractual distribution systems and supply chains is that they all:

Limited-function wholesalers are a type of merchant wholesaler.

As long as they do not represent competing products, manufacturer's agents can represent more than one manufacturer in a given sales territory.

Which of the following statements provides the most accurate distinction between an agent and a broker? Agents:

One way that marketers can provide utility is by making sure the good is available at a location that is convenient for consumers.

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:

When marketing intermediaries perform the steps necessary to transfer ownership from one party to another, they are providing utility.

(Melanie is a broker who has just helped negotiate a major deal. As a broker Melanie can expect to earn a fixed amount of profit for her efforts regardless of the dollar value of the contract she negotiated.

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:

Soundworthy Stereo is a producer of high quality speakers and stereo components. The company sells its products through a few preferred retailers in any geographic area. Soundworthy uses a selective distribution strategy.

According to the Thinking Green box in the chapter, buying products from local producers is the real key to reducing carbon footprints.

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 Union and 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

Filters

Exam 15: Distributing Products

In the Reaching Beyond Our Borders box in the chapter, soft drink producers like Coca-Cola have found that:

Although air transport currently accounts for only a small percentage of all shipments, it has become a critical mode in many industries.

In the Reaching Beyond Our Borders box in the chapter, Coca-Cola found out that more than 80 percent of the developing world's customers buy products from very small entrepreneurs rather than larger stores.

A common trait of corporate distribution systems, administered distribution systems, contractual distribution systems and supply chains is that they all:

Limited-function wholesalers are a type of merchant wholesaler.

As long as they do not represent competing products, manufacturer's agents can represent more than one manufacturer in a given sales territory.

Which of the following statements provides the most accurate distinction between an agent and a broker? Agents:

One way that marketers can provide utility is by making sure the good is available at a location that is convenient for consumers.

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:

When marketing intermediaries perform the steps necessary to transfer ownership from one party to another, they are providing utility.

(Melanie is a broker who has just helped negotiate a major deal. As a broker Melanie can expect to earn a fixed amount of profit for her efforts regardless of the dollar value of the contract she negotiated.

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:

Soundworthy Stereo is a producer of high quality speakers and stereo components. The company sells its products through a few preferred retailers in any geographic area. Soundworthy uses a selective distribution strategy.

According to the Thinking Green box in the chapter, buying products from local producers is the real key to reducing carbon footprints.

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 Union and 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

Filters