Question 1

The costs added by marketing intermediaries usually outweigh the value they create.

Accepted Answer

A) True 
 B)False

Question 2

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.

Accepted Answer

A) corporate distribution 
B) franchise 
C) retail cooperative distribution 
D) administered distribution 
A) corporate distribution 
B) franchise 
C) retail cooperative distribution 
D) administered distribution

Question 3

Which of the following is an example of a consumer making a purchase through a direct marketing arrangement?

Accepted Answer

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 United States by sending in an order form attached to a pamphlet sent to the customer by the publisher 
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 United States by sending in an order form attached to a pamphlet sent to the customer by the publisher

Question 4

Hartselle Home Products, Inc., manufacturers 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.

Accepted Answer

A) True 
 B)False

Question 5

Department stores offer a wide variety of products that are sold in separate departments.

Accepted Answer

A) True 
 B)False

Question 6

Vending machines are most often used to sell:

Accepted Answer

A) shopping goods. 
B) convenience goods. 
C) specialty goods. 
D) inferior goods. 
A) shopping goods. 
B) convenience goods. 
C) specialty goods. 
D) inferior goods.

Question 7

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.

Accepted Answer

A) True 
 B)False

Question 8

There are four specific types of channel systems available to companies that tie firms together in a unified way.

Accepted Answer

A) True 
 B)False

Question 9

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.

Accepted Answer

A) True 
 B)False

Question 10

Discount stores and department stores sell different brands of products that are usually priced about the same.

Accepted Answer

A) True 
 B)False

Question 11

Retail organizations employ more than 11 million people in the U.S.

Accepted Answer

A) True 
 B)False

Question 12

warehouses are used to gather and redistribute products.

Accepted Answer

A) Storage 
B) Distribution 
C) Wholesale 
D) Merchandising 
A) Storage 
B) Distribution 
C) Wholesale 
D) Merchandising

Question 13

A(n) consists of the marketing intermediaries that transport and store goods as they move through their path from producer to final user.

Accepted Answer

A) channel of distribution 
B) marketing network 
C) input-output matrix 
D) mode of distribution 
A) channel of distribution 
B) marketing network 
C) input-output matrix 
D) mode of distribution

Question 14

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.

Accepted Answer

A) True 
 B)False

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

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.

Accepted Answer

A) administered distribution system 
B) corporate distribution system 
C) wholesaler-sponsored chain 
D) cash-and-carry chain 
A) administered distribution system 
B) corporate distribution system 
C) wholesaler-sponsored chain 
D) cash-and-carry chain

Question 17

Most marketing intermediaries have survived in the past because consumers were unaware of how much these companies add to the cost of distributing goods.

Accepted Answer

A) True 
 B)False

Question 18

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:

Accepted Answer

A)  14. 
B)  25. 
C)  56. 
D) 72. 
A)  14. 
B)  25. 
C)  56. 
D) 72.

Question 19

Rack jobbers sell goods on consignment, splitting the profits from their sales with a retailer.

Accepted Answer

A) True 
 B)False

Question 20

A(n) distribution strategy uses only one retail outlet in a given geographic area.

Accepted Answer

A) selective 
B) restrictive 
C) exclusive 
D) solitary 
A) selective 
B) restrictive 
C) exclusive 
D) solitary

The costs added by marketing intermediaries usually outweigh the value they create.

Which of the following is an example of a consumer making a purchase through a direct marketing arrangement?

Department stores offer a wide variety of products that are sold in separate departments.

Vending machines are most often used to sell:

There are four specific types of channel systems available to companies that tie firms together in a unified way.

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.

Discount stores and department stores sell different brands of products that are usually priced about the same.

Retail organizations employ more than 11 million people in the U.S.

warehouses are used to gather and redistribute products.

A(n) consists of the marketing intermediaries that transport and store goods as they move through their path from producer to final user.

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.

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.

Most marketing intermediaries have survived in the past because consumers were unaware of how much these companies add to the cost of distributing goods.

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:

Rack jobbers sell goods on consignment, splitting the profits from their sales with a retailer.

A(n) distribution strategy uses only one retail outlet in a given geographic area.

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

The costs added by marketing intermediaries usually outweigh the value they create.

Which of the following is an example of a consumer making a purchase through a direct marketing arrangement?

Department stores offer a wide variety of products that are sold in separate departments.

Vending machines are most often used to sell:

There are four specific types of channel systems available to companies that tie firms together in a unified way.

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.

Discount stores and department stores sell different brands of products that are usually priced about the same.

Retail organizations employ more than 11 million people in the U.S.

warehouses are used to gather and redistribute products.

A(n) consists of the marketing intermediaries that transport and store goods as they move through their path from producer to final user.

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.

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.

Most marketing intermediaries have survived in the past because consumers were unaware of how much these companies add to the cost of distributing goods.

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:

Rack jobbers sell goods on consignment, splitting the profits from their sales with a retailer.

A(n) distribution strategy uses only one retail outlet in a given geographic area.

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