Question 1

An advantage of a selective distribution strategy is that consumers are able to find a popular product at a wide variety of retailers.

Accepted Answer

A) True 
 B)False

Question 2

Chris Cole is a salesperson for Green Scene Lawn Care products.Chris' job requires him to sell Green Scene products,but he is also expected to recruit more salespeople for the company.He will earn a commission on all of the sales earned by the salespeople he recruits.Green Scene is using a retail distribution strategy known as multilevel marketing.

Accepted Answer

A) True 
 B)False

Question 3

Any marketing method that directly links manufacturers or intermediaries with the ultimate consumer could be classified as:

Accepted Answer

A) direct selling. 
B) online marketing. 
C) direct marketing. 
D) kiosk-based. 
A) direct selling. 
B) online marketing. 
C) direct marketing. 
D) kiosk-based.

Question 4

Which of the following activities is most likely to be performed by someone responsible for supply chain management?

Accepted Answer

A) Developing an effective advertising campaign for a particular line of products 
B) Establishing a budget for the firm's next fiscal year 
C) Finding ways to handle the return of goods and recycled materials 
D) Holding focus groups to learn what consumers want in new products 
A) Developing an effective advertising campaign for a particular line of products 
B) Establishing a budget for the firm's next fiscal year 
C) Finding ways to handle the return of goods and recycled materials 
D) Holding focus groups to learn what consumers want in new products

Question 5

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 6

Stores that remain open 24 hours a day,seven days a week are providing _________ utility to their customers.

Accepted Answer

A) possession 
B) time 
C) service 
D) schedule 
A) possession 
B) time 
C) service 
D) schedule

Question 7

Frank Crimmins was driving on Interstate 85 in eastern Alabama when he noticed he was running low on fuel.Frank was relieved when he found a gas station open at the next exit just 2 miles ahead.This is an example of the value place utility provides to a consumer.

Accepted Answer

A) True 
 B)False

Question 8

Marketers claim that intermediaries add value to the channel of distribution that outweighs the cost.

Accepted Answer

A) True 
 B)False

Question 9

A(n)_________ is one type of marketing intermediary that brings together buyers and sellers and assists in negotiating an exchange,but does not take title to the goods.

Accepted Answer

A) agent 
B) retailer 
C) drop shipper 
D) merchant wholesaler 
A) agent 
B) retailer 
C) drop shipper 
D) merchant wholesaler

Question 10

Which of the following statements about channels of distribution is most accurate?

Accepted Answer

A) Channels of distribution always begin with a manufacturer and end with consumers,and always have one or more marketing intermediaries in between. 
B) Channels of distribution always include retailers,but they may or may not also include wholesalers. 
C) The fewer the marketing intermediaries in a channel of distribution,the more efficient the channel is likely to be. 
D) Some channels of distribution include marketing intermediaries,while in others a manufacturer sells directly to the final consumer. 
A) Channels of distribution always begin with a manufacturer and end with consumers,and always have one or more marketing intermediaries in between. 
B) Channels of distribution always include retailers,but they may or may not also include wholesalers. 
C) The fewer the marketing intermediaries in a channel of distribution,the more efficient the channel is likely to be. 
D) Some channels of distribution include marketing intermediaries,while in others a manufacturer sells directly to the final consumer.

Question 11

Many firms that want to use an intensive distribution strategy would find vending machines an attractive method of selling their goods.

Accepted Answer

A) True 
 B)False

Question 12

Suppliers to large retailers like Target and Wal-Mart may soon be required to use RFID tags when shipping products to these companies.

Accepted Answer

A) True 
 B)False

Question 13

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 14

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 15

E-Gadgets is a chain of electronics stores that specializes in devices and gadgets incorporating cutting-edge technologies.The company has more than 170 stores located in large cities throughout the Southeast and Midwest.E-Gadgets has chosen the locations of its stores so that most customers living in upper middle class and wealthy neighborhoods can get to an E-Gadgets store in less than 15 minutes.E-Gadgets is providing its customers with:

Accepted Answer

A) scrambled merchandising. 
B) allocative utility. 
C) place utility. 
D) saturation marketing. 
A) scrambled merchandising. 
B) allocative utility. 
C) place utility. 
D) saturation marketing.

Question 16

__________ is the term used to describe the use of outside firms to help move their goods through the supply chain.

Accepted Answer

A) Third party logistics 
B) Multilevel distribution 
C) External logistics 
D) Mediated distribution 
A) Third party logistics 
B) Multilevel distribution 
C) External logistics 
D) Mediated distribution

Question 17

___________ are merchant wholesalers who perform all of the distribution functions.

Accepted Answer

A) Retailers 
B) Intensive contact wholesalers 
C) Total-capacity wholesalers 
D) Full-service wholesalers 
A) Retailers 
B) Intensive contact wholesalers 
C) Total-capacity wholesalers 
D) Full-service wholesalers

Question 18

One drawback of kiosks is that their high overhead costs result in low profit margins.

Accepted Answer

A) True 
 B)False

Question 19

Those organizations that assist in the movement of goods and services from producer to industrial and consumer users are known as:

Accepted Answer

A) directed marketers. 
B) distributive specialists. 
C) marketing intermediaries. 
D) supplementary marketers. 
A) directed marketers. 
B) distributive specialists. 
C) marketing intermediaries. 
D) supplementary marketers.

Question 20

Specialty stores use a wide variety of products in one product category as their key competitive tool.

Accepted Answer

A) True 
 B)False

Exam 15: Distributing Products

An advantage of a selective distribution strategy is that consumers are able to find a popular product at a wide variety of retailers.

Any marketing method that directly links manufacturers or intermediaries with the ultimate consumer could be classified as:

Which of the following activities is most likely to be performed by someone responsible for supply chain management?

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

Stores that remain open 24 hours a day,seven days a week are providing _________ utility to their customers.

Frank Crimmins was driving on Interstate 85 in eastern Alabama when he noticed he was running low on fuel.Frank was relieved when he found a gas station open at the next exit just 2 miles ahead.This is an example of the value place utility provides to a consumer.

Marketers claim that intermediaries add value to the channel of distribution that outweighs the cost.

A(n)_________ is one type of marketing intermediary that brings together buyers and sellers and assists in negotiating an exchange,but does not take title to the goods.

Which of the following statements about channels of distribution is most accurate?

Many firms that want to use an intensive distribution strategy would find vending machines an attractive method of selling their goods.

Suppliers to large retailers like Target and Wal-Mart may soon be required to use RFID tags when shipping products to these companies.

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

__________ is the term used to describe the use of outside firms to help move their goods through the supply chain.

___________ are merchant wholesalers who perform all of the distribution functions.

One drawback of kiosks is that their high overhead costs result in low profit margins.

Those organizations that assist in the movement of goods and services from producer to industrial and consumer users are known as:

Specialty stores use a wide variety of products in one product category as their key competitive tool.

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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