Question 1

Producers who use an exclusive distribution strategy for their products can expect retailers who carry the products to do which of the following?

Accepted Answer

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 
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

Question 2

___________ would probably be distributed using an intensive strategy.

Accepted Answer

A) iPods 
B) High-def television sets 
C) Men's suits 
D) Popular magazines 
A) iPods 
B) High-def television sets 
C) Men's suits 
D) Popular magazines

Question 3

Category killer stores tend to compete mainly on the basis of carrying a wide array of products,superior service,and low prices.

Accepted Answer

A) True 
 B)False

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

Some economists would say that intermediaries add costs to the channel of distribution and need to be eliminated.

Accepted Answer

A) True 
 B)False

Question 6

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.

Accepted Answer

A) True 
 B)False

Question 7

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 8

In multilevel marketing,salespeople have an incentive to:

Accepted Answer

A) recruit new salespeople,because they receive a commission on the sales made by the people they recruit. 
B) perform as many of the marketing functions as possible,because each function they perform adds to their commission. 
C) sell the product using both direct and indirect marketing methods in order to reach different types of customers. 
D) limit the number of salespeople in their franchise area so that they can maximize their own sales. 
A) recruit new salespeople,because they receive a commission on the sales made by the people they recruit. 
B) perform as many of the marketing functions as possible,because each function they perform adds to their commission. 
C) sell the product using both direct and indirect marketing methods in order to reach different types of customers. 
D) limit the number of salespeople in their franchise area so that they can maximize their own sales.

Question 9

The primary difference between retailers and wholesalers is that:

Accepted Answer

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. 
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.

Question 10

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):

Accepted Answer

A) administered chain. 
B) wholesaler-sponsored chain. 
C) corporate distribution system. 
D) horizontal distribution chain. 
A) administered chain. 
B) wholesaler-sponsored chain. 
C) corporate distribution system. 
D) horizontal distribution chain.

Question 11

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.

Accepted Answer

A) True 
 B)False

Question 12

Compared to rail transportation,one of the advantages of shipping by truck is that trucks:

Accepted Answer

A) are more energy efficient. 
B) can carry a greater volume. 
C) can reach more destinations. 
D) are less expensive. 
A) are more energy efficient. 
B) can carry a greater volume. 
C) can reach more destinations. 
D) are less expensive.

Question 13

Marketing intermediaries:

Accepted Answer

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. 
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.

Question 14

Although there have been some unethical firms involved in multilevel marketing,this form of retailing remains quite successful.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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.

Accepted Answer

A) True 
 B)False

Question 19

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.

Accepted Answer

A) True 
 B)False

Question 20

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:

Accepted Answer

A) marketing mix. 
B) franchise system. 
C) channel of distribution. 
D) marketing network. 
A) marketing mix. 
B) franchise system. 
C) channel of distribution. 
D) marketing network.

Exam 15: Distributing Products

Producers who use an exclusive distribution strategy for their products can expect retailers who carry the products to do which of the following?

___________ would probably be distributed using an intensive strategy.

Category killer stores tend to compete mainly on the basis of carrying a wide array of products,superior service,and low prices.

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.

Some economists would say that intermediaries add costs to the channel of distribution and need to be eliminated.

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.

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:

In multilevel marketing,salespeople have an incentive to:

The primary difference between retailers and wholesalers is that:

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.

Compared to rail transportation,one of the advantages of shipping by truck is that trucks:

Marketing intermediaries:

Although there have been some unethical firms involved in multilevel marketing,this form of retailing remains quite successful.

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:

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.

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

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.

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

Filters