Question 1

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 2

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 3

Franchise systems are one type of __________ distribution system.

Accepted Answer

A)  corporate 
B)  wholesale 
C)  contractual 
D)  administered 
A)  corporate 
B)  wholesale 
C)  contractual 
D)  administered

Question 4

Third-party logistics is the term used to describe the use of outside firms to help move goods from here to there.

Accepted Answer

A) True 
 B)False

Question 5

The highest-cost transportation method is:

Accepted Answer

A)  railroad. 
B)  truck. 
C)  ship. 
D)  air. 
A)  railroad. 
B)  truck. 
C)  ship. 
D)  air.

Question 6

Zintelle, Inc. is a large manufacturing firm. It has recently reached an agreement with an intermodal marketing company to significantly reduce the cost of shipping its finished goods to some major business customers. This agreement will help Zintelle reduce the costs associated with outbound logistics.

Accepted Answer

A) True 
 B)False

Question 7

Logistics involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Mark A. Teer believes he has found a surefire way to save money. He advises his friends, "Buy direct from the manufacturer. Any time intermediaries get involved, you'll pay a higher price. After all, every intermediary involved in the marketing process must charge enough to earn a profit." Mark's advice:

Accepted Answer

A)  is entirely correct. Intermediaries must charge a high enough price for the activities they perform to earn a profit, so using intermediaries must result in a higher price. 
B)  is impractical, because in most markets the distribution process is so complex that it is impossible to determine who the actual producer really is. 
C)  is not valid in many cases. Intermediaries do add costs to products, but they also create value by performing marketing functions efficiently. In many cases the value they create more than offsets the costs they add. 
D)  is never true. Markets that make use of intermediaries can always provide goods at lower cost than those that rely on direct distribution. 
A)  is entirely correct. Intermediaries must charge a high enough price for the activities they perform to earn a profit, so using intermediaries must result in a higher price. 
B)  is impractical, because in most markets the distribution process is so complex that it is impossible to determine who the actual producer really is. 
C)  is not valid in many cases. Intermediaries do add costs to products, but they also create value by performing marketing functions efficiently. In many cases the value they create more than offsets the costs they add. 
D)  is never true. Markets that make use of intermediaries can always provide goods at lower cost than those that rely on direct distribution.

Question 10

Inverted logistics is the term used for the activities involved in bringing products back to the producer due to defects or for recycling of materials.

Accepted Answer

A) True 
 B)False

Question 11

Marketing manager Connie Smythe is concerned that her firm is doing a poor job of managing the movement of finished products to the final consumer. If Connie is right, her firm should work to improve its:

Accepted Answer

A)  outbound logistics. 
B)  administered support system. 
C)  materials handling. 
D)  coordination of its freight forwarders. 
A)  outbound logistics. 
B)  administered support system. 
C)  materials handling. 
D)  coordination of its freight forwarders.

Question 12

Materials handling is that part of logistics that deals with moving goods within the warehouse, from the warehouse to the production floor, and to various work stations along the production process.

Accepted Answer

A) True 
 B)False

Question 13

The Knot is an online company that helps people with the complex task of planning a wedding. Multiple vendors are recommended for things like flowers, caterers, wedding gowns, and more. Through The Knot, a couple can establish a website that acts as a registry. Once the couple is married, the website directs them to another site having to do with beginning married life. What type of utility or utilities is this site providing to its users?

Accepted Answer

A)  Form only 
B)  Service only 
C)  Service and information 
D)  Form and service 
A)  Form only 
B)  Service only 
C)  Service and information 
D)  Form and service

Question 14

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 15

The use of pipelines should decline in the future because this mode is suitable only for shipping petroleum.

Accepted Answer

A) True 
 B)False

Question 16

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 17

Barbara Dixon operates a small business out of her home. She makes a trip to a local Riteprice Office Supply about once a month to buy computer and office supplies for her business. The prices at the Riteprice are very low, but it does not offer credit or delivery services. Riteprice is a cash-and-carry wholesaler.

Accepted Answer

A) True 
 B)False

Question 18

Identify and describe the four basic types of distribution systems that are used to link firms in a formal relationship.

Accepted Answer

The four basic types of systems used to

Question 19

In a(n) ____________ distribution system all of the organizations in the channel of distribution are owned by one firm.

Accepted Answer

A)  administered 
B)  contractual 
C)  supply-based 
D)  corporate 
A)  administered 
B)  contractual 
C)  supply-based 
D)  corporate

Question 20

The best way to reduce the cost of goods is to eliminate marketing intermediaries from the distribution channel.

Accepted Answer

A) True 
 B)False

Exam 15: Distributing Products

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

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:

Franchise systems are one type of __________ distribution system.

Third-party logistics is the term used to describe the use of outside firms to help move goods from here to there.

The highest-cost transportation method is:

Logistics involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption.

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

Inverted logistics is the term used for the activities involved in bringing products back to the producer due to defects or for recycling of materials.

Marketing manager Connie Smythe is concerned that her firm is doing a poor job of managing the movement of finished products to the final consumer. If Connie is right, her firm should work to improve its:

Materials handling is that part of logistics that deals with moving goods within the warehouse, from the warehouse to the production floor, and to various work stations along the production process.

In the terminology of multilevel marketing, downliners:

The use of pipelines should decline in the future because this mode is suitable only for shipping petroleum.

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.

Identify and describe the four basic types of distribution systems that are used to link firms in a formal relationship.

In a(n) ____________ distribution system all of the organizations in the channel of distribution are owned by one firm.

The best way to reduce the cost of goods is to eliminate marketing intermediaries from the distribution channel.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It 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

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Union and Employeemanagement Issues

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

Managing the Marketing Mix: Product, Price, Place and Promotion

Extension: Working Within the Legal Environment

Extension: Using Technology to Manage Information

Extension: Managing Risk

Extension: Managing Personal Finances

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