Question 1

A value of shipping by truck is that trucks can deliver small shipments to remote locations.

Accepted Answer

A) True 
 B)False

Question 2

Warehouse clubs compete with enhanced service to customers and seldom try to compete on price.

Accepted Answer

A) True 
 B)False

Question 3

____________ wholesalers are independently owned and take title to the goods they handle.

Accepted Answer

A) Full service broker 
B) Merchant 
C) Agent 
D) Primary 
A) Full service broker 
B) Merchant 
C) Agent 
D) Primary

Question 4

The activities performed by most marketing intermediaries are not essential to the marketing process.

Accepted Answer

A) True 
 B)False

Question 5

To marketers,the term utility refers to the value added to goods or services by organizations when they make the product more useful or accessible to consumers.

Accepted Answer

A) True 
 B)False

Question 6

Rita Sauer stocks several local supermarkets and discount stores with Luminaire Cosmetics.She sets up displays of various cosmetic products carrying the Luminaire brand name,and sells the goods on consignment,sharing any profits on the sales with the retailer.Rita is a:

Accepted Answer

A) cash-and-carry wholesaler. 
B) truck jobber. 
C) broker. 
D) rack jobber. 
A) cash-and-carry wholesaler. 
B) truck jobber. 
C) broker. 
D) rack jobber.

Question 7

Although Helpusell brings together buyers and sellers and helps negotiate exchanges,it does not actually take title to any of the goods being traded.Helpusell would be classified as an agent or broker.

Accepted Answer

A) True 
 B)False

Question 8

In multilevel marketing,salespeople have little incentive to recruit new salespeople,because the new salespeople may compete against them and reduce their income.

Accepted Answer

A) True 
 B)False

Question 9

Pipelines move liquid products very efficiently and can even move products like coal.

Accepted Answer

A) True 
 B)False

Question 10

In a corporate distribution system one firm owns all of the organizations in the distribution.

Accepted Answer

A) True 
 B)False

Question 11

Explain why you agree or disagree with the following statement:
"Marketing intermediaries must charge a high enough price for the functions they perform to earn a profit.Therefore,the cost of distributing goods can almost always be reduced by eliminating marketing intermediaries from the channel of distribution."

Accepted Answer

It is true that marketing intermediaries

Question 12

Marketing intermediaries:

Accepted Answer

A) are unlikely to survive in a competitive global economy. 
B) have survived because they can often perform marketing functions faster and at lower cost than producers. 
C) create value,but this value is seldom great enough to justify the added cost they charge for their services. 
D) tend to increase the number of exchange relationships producers and consumers must deal with in order to buy and sell goods. 
A) are unlikely to survive in a competitive global economy. 
B) have survived because they can often perform marketing functions faster and at lower cost than producers. 
C) create value,but this value is seldom great enough to justify the added cost they charge for their services. 
D) tend to increase the number of exchange relationships producers and consumers must deal with in order to buy and sell goods.

Question 13

Logistics is concerned:

Accepted Answer

A) with flows of materials,finished products,and information. 
B) only with the flow of information,not the flow of materials and products. 
C) with the flow of materials to the manufacturer and with the flow of finished products to the consumer,but not with the flow of information. 
D) only with the flow of finished goods from the producer to the final consumer. 
A) with flows of materials,finished products,and information. 
B) only with the flow of information,not the flow of materials and products. 
C) with the flow of materials to the manufacturer and with the flow of finished products to the consumer,but not with the flow of information. 
D) only with the flow of finished goods from the producer to the final consumer.

Question 14

Wholesalers may provide market information and business consulting services.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following activities would a drop shipper be most likely to perform?

Accepted Answer

A) Provide delivery services from a wholesaler's warehouse to a retailer's store 
B) Solicit orders from a retailer and arrange for the producer to make the deliveries 
C) Manage a large stock of items in a single product category,and make large volume shipments to other intermediaries using rail or truck 
D) Provide brokerage services by helping other wholesalers negotiate deals 
A) Provide delivery services from a wholesaler's warehouse to a retailer's store 
B) Solicit orders from a retailer and arrange for the producer to make the deliveries 
C) Manage a large stock of items in a single product category,and make large volume shipments to other intermediaries using rail or truck 
D) Provide brokerage services by helping other wholesalers negotiate deals

Question 16

The owners of the TriCities Mall recently renovated the mall's interior.Much of the interior of the Mall was made to look like scenes from famous movies.The mall also hired employees to dress like characters from these movies.There are many types of shops in the mall,including six different jewelers,however only one jeweler carries the very expensive Romex brand of watch that appeals to customers who are looking for status in their jewelry.Romex is practicing exclusive distribution by placing its brand in only one store in a given area.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Pipelines are used primarily to transport:

Accepted Answer

A) coal slurry. 
B) hazardous wastes. 
C) ammonia and acids. 
D) petroleum and petroleum products. 
A) coal slurry. 
B) hazardous wastes. 
C) ammonia and acids. 
D) petroleum and petroleum products.

Question 19

In the terminology of multilevel marketing,downliners:

Accepted Answer

A) are the intermediaries who are responsible for handling the shipping of goods down the channel of distribution from the producer to the retailer. 
B) are salespeople who have been recruited by other salespeople known as upliners to market the product. 
C) sell through a telemarketing arrangement,while upliners use direct selling. 
D) are experienced salespeople who are allowed to sell in more than one franchise area by the distributor. 
A) are the intermediaries who are responsible for handling the shipping of goods down the channel of distribution from the producer to the retailer. 
B) are salespeople who have been recruited by other salespeople known as upliners to market the product. 
C) sell through a telemarketing arrangement,while upliners use direct selling. 
D) are experienced salespeople who are allowed to sell in more than one franchise area by the distributor.

Question 20

Form utility has become the most important utility provided by retailers.

Accepted Answer

A) True 
 B)False

Exam 15: Distributing Products

A value of shipping by truck is that trucks can deliver small shipments to remote locations.

Warehouse clubs compete with enhanced service to customers and seldom try to compete on price.

____________ wholesalers are independently owned and take title to the goods they handle.

The activities performed by most marketing intermediaries are not essential to the marketing process.

To marketers,the term utility refers to the value added to goods or services by organizations when they make the product more useful or accessible to consumers.

Rita Sauer stocks several local supermarkets and discount stores with Luminaire Cosmetics.She sets up displays of various cosmetic products carrying the Luminaire brand name,and sells the goods on consignment,sharing any profits on the sales with the retailer.Rita is a:

Although Helpusell brings together buyers and sellers and helps negotiate exchanges,it does not actually take title to any of the goods being traded.Helpusell would be classified as an agent or broker.

In multilevel marketing,salespeople have little incentive to recruit new salespeople,because the new salespeople may compete against them and reduce their income.

Pipelines move liquid products very efficiently and can even move products like coal.

In a corporate distribution system one firm owns all of the organizations in the distribution.

Marketing intermediaries:

Logistics is concerned:

Wholesalers may provide market information and business consulting services.

Which of the following activities would a drop shipper be most likely to perform?

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

Pipelines are used primarily to transport:

In the terminology of multilevel marketing,downliners:

Form utility has become the most important utility provided by retailers.

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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