Exam 15: Distributing Products

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

The two basic types of merchant wholesalers are: A) full-service wholesalers and limited-function wholesalers. B) functional wholesalers and distributive wholesalers. C) independent wholesalers and subsidiary wholesalers. D) capital wholesalers and full-value wholesalers.

Brokers are marketing intermediaries that do not take title to the goods they help distribute.

A key way for traditional retailers to compete with direct marketing is by providing outstanding service utility.

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

The use of multiple modes of transportation to complete a single long-distance movement of freight is known as multi-carrier shipping.

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

__________ warehouses are used to hold products for a relatively long time.

Direct mail, telemarketing, and catalog sales are all common examples of:

Discount stores, supermarkets, and department stores are all common types of:

Comstock Coal Distributors does not mine coal itself. In fact, the firm does not even store or handle coal. Instead, Comstock solicits orders for low sulfur coal from other firms, then purchases the required amount from suppliers and directs them to ship the coal to its customers. Comstock is a:

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

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

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.

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

__________ warehouses are used to gather and redistribute products.

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

Patrick Bolger is convinced that his product idea has tremendous potential. He has decided to produce the product himself, but plans to use other firms who specialize in storing and transporting to help him move the product along its path to the final consumer. These specialists Patrick uses will be part of his:

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.

A __________ offers a huge selection of one type of product (such as books, toys, or sporting goods) to dominate that category of goods.