Question 1

Marketers provide a total of four types of utility: primary, secondary, marginal, and total.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements about marketing intermediaries is true?

Accepted Answer

A)  All channels of distribution must contain at least one marketing intermediary. 
B)  Marketing intermediaries and their functions can be eliminated. 
C)  Marketing intermediaries survive because they can perform marketing functions faster and more cheaply than producers and consumers. 
D)  The costs added to products by marketing intermediaries usually exceed the value they add to products. 
A)  All channels of distribution must contain at least one marketing intermediary. 
B)  Marketing intermediaries and their functions can be eliminated. 
C)  Marketing intermediaries survive because they can perform marketing functions faster and more cheaply than producers and consumers. 
D)  The costs added to products by marketing intermediaries usually exceed the value they add to products.

Question 3

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 4

A broker can expect to earn a fixed amount of profit for her efforts regardless of the dollar value of the contract she negotiated.

Accepted Answer

A) True 
 B)False

Question 5

Delivery, installation, and follow-up services are the most common ways that marketing intermediaries provide information utility.

Accepted Answer

A) True 
 B)False

Question 6

The characteristic that all forms of direct marketing have in common is that they:

Accepted Answer

A)  are carried out by agents or brokers. 
B)  involve face-to-face or teleconferencing sessions with the customer. 
C)  include some type of activity that directly links manufacturers to the ultimate consumer. 
D)  make use of exclusive distribution systems with a network of traditional "bricks and mortar" stores. 
A)  are carried out by agents or brokers. 
B)  involve face-to-face or teleconferencing sessions with the customer. 
C)  include some type of activity that directly links manufacturers to the ultimate consumer. 
D)  make use of exclusive distribution systems with a network of traditional "bricks and mortar" stores.

Question 7

Companies who send salespeople to customers' homes or places of work are making use of __________ selling.

Accepted Answer

A)  direct 
B)  point of contact 
C)  downline 
D)  nonretail 
A)  direct 
B)  point of contact 
C)  downline 
D)  nonretail

Question 8

Department stores offer a wide variety of products that are sold in separate departments.

Accepted Answer

A) True 
 B)False

Question 9

A common trait of corporate distribution systems, administered distribution systems, contractual distribution systems and supply chains is that they all:

Accepted Answer

A)  are arrangements which seek to distribute goods more efficiently by eliminating most functions performed by marketing intermediaries. 
B)  seek to consolidate and control the distribution system by having one firm own all of the distribution functions. 
C)  attempt to improve the efficiency of distribution systems by linking the firms together in a formal relationship. 
D)  have been replaced by more efficient distribution systems relying heavily on online linkages. 
A)  are arrangements which seek to distribute goods more efficiently by eliminating most functions performed by marketing intermediaries. 
B)  seek to consolidate and control the distribution system by having one firm own all of the distribution functions. 
C)  attempt to improve the efficiency of distribution systems by linking the firms together in a formal relationship. 
D)  have been replaced by more efficient distribution systems relying heavily on online linkages.

Question 10

Agents are marketing intermediaries who take title to the goods they distribute and provide credit to customers who need it.

Accepted Answer

A) True 
 B)False

Question 11

Wholesalers are marketing intermediaries who sell goods or services to ultimate consumers.

Accepted Answer

A) True 
 B)False

Question 12

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 13

In retail cooperatives, the members of the distribution system are bound to cooperate by a contractual agreement.

Accepted Answer

A) True 
 B)False

Question 14

Merchant wholesalers do not take title to the goods they handle.

Accepted Answer

A) True 
 B)False

Question 15

Qwikship is a new delivery company that wants to compete against FedEx and UPS in the United States, Canada, and Mexico. One of the keys to Qwikship's success will be the ability to establish large storage warehouses at a few key locations throughout North America.

Accepted Answer

A) True 
 B)False

Question 16

___________ is the sale of goods and services by telephone.

Accepted Answer

A)  Cel-tailing 
B)  Teleselling 
C)  Telemarketing 
D)  Direct marketing 
A)  Cel-tailing 
B)  Teleselling 
C)  Telemarketing 
D)  Direct marketing

Question 17

Nina Corby owns a card shop in a small shopping center where she sells cards produced by a national company. Nina sells to final customers, so she is a:

Accepted Answer

A)  merchant wholesaler. 
B)  retailer. 
C)  rack jobber. 
D)  channel captain. 
A)  merchant wholesaler. 
B)  retailer. 
C)  rack jobber. 
D)  channel captain.

Question 18

Railroads are an energy-efficient mode of transporting many types of goods.

Accepted Answer

A) True 
 B)False

Question 19

Even though all of the hardware stores that operate under the name of Hardie's Hardware are independently owned and managed, they have signed an agreement to participate in chain promotions, and cooperate as a unified system of stores. The Hardie's Hardware stores are using a distribution system known as a wholesaler-sponsored chain.

Accepted Answer

A) True 
 B)False

Question 20

The costs added by marketing intermediaries usually outweigh the value they create.

Accepted Answer

A) True 
 B)False

Exam 15: Distributing Products

Marketers provide a total of four types of utility: primary, secondary, marginal, and total.

Which of the following statements about marketing intermediaries is true?

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

A broker can expect to earn a fixed amount of profit for her efforts regardless of the dollar value of the contract she negotiated.

Delivery, installation, and follow-up services are the most common ways that marketing intermediaries provide information utility.

The characteristic that all forms of direct marketing have in common is that they:

Companies who send salespeople to customers' homes or places of work are making use of __________ selling.

Department stores offer a wide variety of products that are sold in separate departments.

A common trait of corporate distribution systems, administered distribution systems, contractual distribution systems and supply chains is that they all:

Agents are marketing intermediaries who take title to the goods they distribute and provide credit to customers who need it.

Wholesalers are marketing intermediaries who sell goods or services to ultimate consumers.

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

In retail cooperatives, the members of the distribution system are bound to cooperate by a contractual agreement.

Merchant wholesalers do not take title to the goods they handle.

Qwikship is a new delivery company that wants to compete against FedEx and UPS in the United States, Canada, and Mexico. One of the keys to Qwikship's success will be the ability to establish large storage warehouses at a few key locations throughout North America.

___________ is the sale of goods and services by telephone.

Nina Corby owns a card shop in a small shopping center where she sells cards produced by a national company. Nina sells to final customers, so she is a:

Railroads are an energy-efficient mode of transporting many types of goods.

The costs added by marketing intermediaries usually outweigh the value they create.

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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