Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Cash-and-carry wholesalers are limited-function wholesalers that serve mostly smaller retailers with a limited assortment of products.

Accepted Answer

A) True 
 B)False

Question 3

___________ are limited-function wholesalers who furnish shelves full of merchandise to retailers who sell these items on consignment.

Accepted Answer

A) Cash-and-carry wholesalers 
B) Rack jobbers 
C) Merchandise forwarders 
D) Consignment agents 
A) Cash-and-carry wholesalers 
B) Rack jobbers 
C) Merchandise forwarders 
D) Consignment agents

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

The air freight industry is starting to focus on global distribution.

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."
-The need for Lite Bite to recall its almond chocolate bars suggests that it had to be very concerned with:

Accepted Answer

A) outbound logistics. 
B) reverse logistics. 
C) administered distribution. 
D) drop shipping. 
A) outbound logistics. 
B) reverse logistics. 
C) administered distribution. 
D) drop shipping.

Question 8

Rack jobbers furnish racks or shelves full of merchandise to retailers and keep title to these goods until they are sold.

Accepted Answer

A) True 
 B)False

Question 9

In the terminology of multilevel marketing,which of the following statements about the relationship between upliners and downliners is most accurate? In multilevel marketing,

Accepted Answer

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.In multilevel marketing the salespeople work as independent contractors.They earn commissions not only on their own sales,but also on sales of other salespeople they recruit.In the terminology of multilevel marketing,the salespeople who do the recruiting are called upliners,and the people they recruit are called downliners.These downliners can become upliners themselves by recruiting yet more salespeople. 
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.In multilevel marketing the salespeople work as independent contractors.They earn commissions not only on their own sales,but also on sales of other salespeople they recruit.In the terminology of multilevel marketing,the salespeople who do the recruiting are called upliners,and the people they recruit are called downliners.These downliners can become upliners themselves by recruiting yet more salespeople.

Question 10

Water transportation has benefits and drawbacks;for example it is inexpensive but slow.

Accepted Answer

A) True 
 B)False

Question 11

Water transportation has declined to the point where it now accounts for a very small part of transporting goods.

Accepted Answer

A) True 
 B)False

Question 12

A _________ is a marketing intermediary that sells products to other organizations.

Accepted Answer

A) wholesaler 
B) retailer 
C) disintermediary 
D) jobber 
A) wholesaler 
B) retailer 
C) disintermediary 
D) jobber

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

What is logistics? Describe the types of issues you might deal with if you specialized in logistics.

Accepted Answer

Logistics involves planning,implementing

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

A firm that wants to distribute its products as widely in a market as possible would use a(n)___________ distribution strategy.

Accepted Answer

A) extensive 
B) shotgun 
C) universal 
D) intensive 
A) extensive 
B) shotgun 
C) universal 
D) intensive

Question 17

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 18

Discount stores,department stores,supermarkets,and specialty stores are all among the major types of retail stores.

Accepted Answer

A) True 
 B)False

Question 19

Agents are marketing intermediaries who take title to the goods they distribute and provide credit to customers who need it.

Accepted Answer

A) True 
 B)False

Question 20

__________ 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.

Accepted Answer

A) Distribution planning 
B) Multilevel marketing 
C) Supply chain management 
D) Distributional strategy 
A) Distribution planning 
B) Multilevel marketing 
C) Supply chain management 
D) Distributional strategy

Exam 15: Distributing Products

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

Cash-and-carry wholesalers are limited-function wholesalers that serve mostly smaller retailers with a limited assortment of products.

___________ are limited-function wholesalers who furnish shelves full of merchandise to retailers who sell these items on consignment.

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

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.

The air freight industry is starting to focus on global distribution.

Rack jobbers furnish racks or shelves full of merchandise to retailers and keep title to these goods until they are sold.

In the terminology of multilevel marketing,which of the following statements about the relationship between upliners and downliners is most accurate? In multilevel marketing,

Water transportation has benefits and drawbacks;for example it is inexpensive but slow.

Water transportation has declined to the point where it now accounts for a very small part of transporting goods.

A _________ is a marketing intermediary that sells products to other organizations.

What is logistics? Describe the types of issues you might deal with if you specialized in logistics.

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.

A firm that wants to distribute its products as widely in a market as possible would use a(n)___________ distribution strategy.

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.

Discount stores,department stores,supermarkets,and specialty stores are all among the major types of retail stores.

Agents are marketing intermediaries who take title to the goods they distribute and provide credit to customers who need it.

__________ 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.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding How Economics 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

Adapting Organizations to Todays Markets

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employee-Management Issues and Relationships

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

Bonus A: Using Technology to Manage Information

Bonus B: Managing Risk

Bonus C: Managing Your Personal Finances

Appendix: Working Within the Legal Environment

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