Question 1

Department stores are distinctly service-oriented. Along with the goods they sell, they provide

Accepted Answer

A)  lower markups. 
B)  quality discounts. 
C)  personal assistance. 
D)  warehouse merchandising. 
E)  very low prices. 
A)  lower markups. 
B)  quality discounts. 
C)  personal assistance. 
D)  warehouse merchandising. 
E)  very low prices.

Question 2

The slowest but least expensive means of transportation is by ship and barges.

Accepted Answer

A) True 
 B)False

Question 3

Simpson Micro owns warehouses that stock computer software. It offers net terms to retail stores, offers specials and promotions, and provides customer service. Simpson Micro is a(n) ____ wholesaler.

Accepted Answer

A)  general-specialty 
B)  general-merchandise 
C)  rare-service 
D)  specialty-line 
E)  agent 
A)  general-specialty 
B)  general-merchandise 
C)  rare-service 
D)  specialty-line 
E)  agent

Question 4

XYZ & ABC
XYZ Furniture is a manufacturer of contemporary furniture that sells its products through retail stores throughout the country. XYZ management wants to explore different channels of distribution and feels that the company should use all available outlets to sell its products. ABC Distributors has brought a proposal to the company to be its wholesaler. As a wholesaler, ABC represents many different companies and sells various products to many different retailers. ABC hopes that, with such a wide variety, the company will be able to keep profits high if one product or manufacturer should fail.
-Refer to XYZ & ABC. Which of the following is not an option for channels of distribution for XYZ?

Accepted Answer

A)  Producer―wholesaler―retailer―consumer 
B)  Producer―agent―wholesaler―retailer―consumer 
C)  Producer―consumer 
D)  Producer―retailer―consumer 
E)  Producer―wholesaler―consumer―agent 
A)  Producer―wholesaler―retailer―consumer 
B)  Producer―agent―wholesaler―retailer―consumer 
C)  Producer―consumer 
D)  Producer―retailer―consumer 
E)  Producer―wholesaler―consumer―agent

Question 5

Mayflower, which operates a large system of long-distance trucking, is available for business or individual shipping needs. Mayflower is a ____ carrier.

Accepted Answer

A)  private 
B)  contract 
C)  mail 
D)  parcel 
E)  common 
A)  private 
B)  contract 
C)  mail 
D)  parcel 
E)  common

Question 6

The tradition of rising early and rushing out to retailers who have drastically marked down prices for Black Friday, the day after Thanksgiving, may be dwindling as ___ take over a larger portion of that market.

Accepted Answer

A)  wholesale purchasing 
B)  automatic vending 
C)  telemarketing 
D)  direct marketing 
E)  online sales 
A)  wholesale purchasing 
B)  automatic vending 
C)  telemarketing 
D)  direct marketing 
E)  online sales

Question 7

____ refers to the set of activities involved in receiving and storing goods and preparing them for reshipment.

Accepted Answer

A)  Transportation 
B)  Physical inventory 
C)  Warehousing 
D)  Order processing 
E)  Materials handling 
A)  Transportation 
B)  Physical inventory 
C)  Warehousing 
D)  Order processing 
E)  Materials handling

Question 8

Neighborhood shopping centers often promote the center and the tenants as a group.

Accepted Answer

A) True 
 B)False

Question 9

The U.S. Postal Service offers

Accepted Answer

A)  common carrier service. 
B)  parcel post delivery. 
C)  freight forward delivery. 
D)  contract carrier service. 
E)  private carrier service. 
A)  common carrier service. 
B)  parcel post delivery. 
C)  freight forward delivery. 
D)  contract carrier service. 
E)  private carrier service.

Question 10

An independent retailer is a firm that operates more than one outlet and generally provides personal service.

Accepted Answer

A) True 
 B)False

Question 11

Jessica decides to order smaller amounts of inventory at a time for her arts and crafts store. She is obviously concerned about ____ costs.

Accepted Answer

A)  processing 
B)  stock-out 
C)  warehousing 
D)  stocking 
E)  holding 
A)  processing 
B)  stock-out 
C)  warehousing 
D)  stocking 
E)  holding

Question 12

A channel of distribution is a sequence of marketing organizations that directs a product from the producer to the ultimate user.

Accepted Answer

A) True 
 B)False

Question 13

Supply-chain management primarily focuses on two or more stages of the marketing channel under one management.

Accepted Answer

A) True 
 B)False

Question 14

____ are firms that offer transportation services for shippers.

Accepted Answer

A)  Conveyors 
B)  Transporters 
C)  Truckers 
D)  Freighters 
E)  Carriers 
A)  Conveyors 
B)  Transporters 
C)  Truckers 
D)  Freighters 
E)  Carriers

Question 15

Jake owns and operates a small store that sells relatively few items. His store is open 24 hours a day, and most of his customers live very close to the store. Jake owns a

Accepted Answer

A)  supermarket. 
B)  discount store. 
C)  specialty store. 
D)  convenience store. 
E)  single-line retail store. 
A)  supermarket. 
B)  discount store. 
C)  specialty store. 
D)  convenience store. 
E)  single-line retail store.

Question 16

Which of the following is becoming common for mass merchandisers and involves asking a supplier in a particular area of specialty how to stock shelves?

Accepted Answer

A)  Exclusive distribution 
B)  Selective distribution 
C)  Category management 
D)  Inventory management 
E)  Chain management 
A)  Exclusive distribution 
B)  Selective distribution 
C)  Category management 
D)  Inventory management 
E)  Chain management

Question 17

The use of all available outlets for a product to obtain the widest market exposure is called ____ distribution.

Accepted Answer

A)  exclusive 
B)  intentional 
C)  selective 
D)  patterned 
E)  intensive 
A)  exclusive 
B)  intentional 
C)  selective 
D)  patterned 
E)  intensive

Question 18

Middlemen between the producer and the consumer in the chain of marketing organizations are called marketing intermediaries.

Accepted Answer

A) True 
 B)False

Question 19

Discount stores are self-service merchandise outlets that sell goods at lower prices than usual and

Accepted Answer

A)  locate their showrooms in high-rent districts. 
B)  offer a wide variety of customer services. 
C)  operate on lower markups. 
D)  offer narrow but deep product mixes. 
E)  provide numerous services to customers. 
A)  locate their showrooms in high-rent districts. 
B)  offer a wide variety of customer services. 
C)  operate on lower markups. 
D)  offer narrow but deep product mixes. 
E)  provide numerous services to customers.

Question 20

All of the following are services provided by wholesalers to retailers except

Accepted Answer

A)  buying in large quantities and selling in smaller quantities. 
B)  promoting the product. 
C)  supplying marketing information. 
D)  manufacturing a wide selection of products. 
E)  helping finance purchases. 
A)  buying in large quantities and selling in smaller quantities. 
B)  promoting the product. 
C)  supplying marketing information. 
D)  manufacturing a wide selection of products. 
E)  helping finance purchases.

Exam 14: Wholesaling, Retailing, and Physical Distribution

Department stores are distinctly service-oriented. Along with the goods they sell, they provide

The slowest but least expensive means of transportation is by ship and barges.

Simpson Micro owns warehouses that stock computer software. It offers net terms to retail stores, offers specials and promotions, and provides customer service. Simpson Micro is a(n) ____ wholesaler.

Mayflower, which operates a large system of long-distance trucking, is available for business or individual shipping needs. Mayflower is a ____ carrier.

The tradition of rising early and rushing out to retailers who have drastically marked down prices for Black Friday, the day after Thanksgiving, may be dwindling as ___ take over a larger portion of that market.

____ refers to the set of activities involved in receiving and storing goods and preparing them for reshipment.

Neighborhood shopping centers often promote the center and the tenants as a group.

The U.S. Postal Service offers

An independent retailer is a firm that operates more than one outlet and generally provides personal service.

Jessica decides to order smaller amounts of inventory at a time for her arts and crafts store. She is obviously concerned about ____ costs.

A channel of distribution is a sequence of marketing organizations that directs a product from the producer to the ultimate user.

Supply-chain management primarily focuses on two or more stages of the marketing channel under one management.

____ are firms that offer transportation services for shippers.

Jake owns and operates a small store that sells relatively few items. His store is open 24 hours a day, and most of his customers live very close to the store. Jake owns a

Which of the following is becoming common for mass merchandisers and involves asking a supplier in a particular area of specialty how to stock shelves?

The use of all available outlets for a product to obtain the widest market exposure is called ____ distribution.

Middlemen between the producer and the consumer in the chain of marketing organizations are called marketing intermediaries.

Discount stores are self-service merchandise outlets that sell goods at lower prices than usual and

All of the following are services provided by wholesalers to retailers except

Exploring the World of Business and Economics

A: Being Ethical and Socially Responsible

B: Being Ethical and Socially Responsible

A: Exploring Global Business

B: Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Enhancing Union-Management Relations

Building Customer Relationships Through Effective Marketing

A: Creating and Pricing Products That Satisfy Customers

B: Creating and Pricing Products That Satisfy Customers

Developing Integrated Marketing Communications

Social Media, E-Business, and Accounting

Using Management and Accounting Information

Understanding Money, Banking, and Credit

Mastering Financial Management

A: Understanding Personal Finances and Investments

B: Understanding Personal Finances and Investments

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