Question 1

All those activities concerned with the efficient movement of products from the producer to the ultimate user are called

Accepted Answer

A)  inventory management. 
B)  order processing. 
C)  physical distribution. 
D)  materials handling. 
E)  distribution planning. 
A)  inventory management. 
B)  order processing. 
C)  physical distribution. 
D)  materials handling. 
E)  distribution planning.

Question 2

____ shopping centers usually consist of several small convenience and specialty stores, such as small grocery stores, drugstores, gas stations, and fast-food restaurants.

Accepted Answer

A)  National 
B)  Regional 
C)  International 
D)  Community 
E)  Neighborhood 
A)  National 
B)  Regional 
C)  International 
D)  Community 
E)  Neighborhood

Question 3

According to the U.S. Bureau of the Census, a department store is a retail store that employs fifteen or more employees.

Accepted Answer

A) True 
 B)False

Question 4

Home Depot, Toys "R" Us, and Office Depot are examples of

Accepted Answer

A)  discount stores. 
B)  specialty stores. 
C)  superstores. 
D)  department stores. 
E)  category killers. 
A)  discount stores. 
B)  specialty stores. 
C)  superstores. 
D)  department stores. 
E)  category killers.

Question 5

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. When the XYZ management feels that it should use all available outlets for its furniture, what type of distribution is the company interested in using?

Accepted Answer

A)  Exclusive distribution 
B)  Intensive distribution 
C)  Internal distribution 
D)  Selective distribution 
E)  Inclusive distribution 
A)  Exclusive distribution 
B)  Intensive distribution 
C)  Internal distribution 
D)  Selective distribution 
E)  Inclusive distribution

Question 6

A retailer is a middleman who

Accepted Answer

A)  transfers products from the manufacturer to the consumer without taking ownership of the goods. 
B)  transfers products from the manufacturer to the consumer and takes ownership of the goods. 
C)  sells products to wholesalers, who then sell the goods to consumers. 
D)  works on consignment. 
E)  does not interact directly with the consumer. 
A)  transfers products from the manufacturer to the consumer without taking ownership of the goods. 
B)  transfers products from the manufacturer to the consumer and takes ownership of the goods. 
C)  sells products to wholesalers, who then sell the goods to consumers. 
D)  works on consignment. 
E)  does not interact directly with the consumer.

Question 7

Gap Inc., Radio Shack, and Foot Locker are examples of

Accepted Answer

A)  convenience stores. 
B)  off-price retailers. 
C)  department stores. 
D)  specialty stores. 
E)  independent retailers. 
A)  convenience stores. 
B)  off-price retailers. 
C)  department stores. 
D)  specialty stores. 
E)  independent retailers.

Question 8

Direct marketing is the marketing of products to customers through face-to-face sales presentations at home or in the workplace.

Accepted Answer

A) True 
 B)False

Question 9

The three types of vertical marketing systems are

Accepted Answer

A)  contractual, corporate, and authoritative. 
B)  corporate, administered, and contractual. 
C)  administered, contractual, and combination. 
D)  administered, corporate, and legal. 
E)  legal, corporate, and consensual. 
A)  contractual, corporate, and authoritative. 
B)  corporate, administered, and contractual. 
C)  administered, contractual, and combination. 
D)  administered, corporate, and legal. 
E)  legal, corporate, and consensual.

Question 10

The Lakeview Coal Mine processes its coal and delivers it across a river to its end customer, Lakeview Power and Light. The most effective transportation mode of the processed coal would be by ship.

Accepted Answer

A) True 
 B)False

Question 11

A clothing retailer has been striving to reduce the costs of its inventory, but many of its customers are switching to competitors because they do not want to wait for the retailer to order the items. This retailer is experiencing

Accepted Answer

A)  customer satisfaction. 
B)  stock-out costs. 
C)  production concerns. 
D)  holding costs. 
E)  just-in-time inventory. 
A)  customer satisfaction. 
B)  stock-out costs. 
C)  production concerns. 
D)  holding costs. 
E)  just-in-time inventory.

Question 12

Marketing that occurs when a retailer advertises a product and makes it available through mail or telephone or online orders is called

Accepted Answer

A)  telemarketing. 
B)  online retailing. 
C)  direct-response marketing. 
D)  automatic vending. 
E)  direct selling. 
A)  telemarketing. 
B)  online retailing. 
C)  direct-response marketing. 
D)  automatic vending. 
E)  direct selling.

Question 13

Regional shopping centers sometimes contain hotels.

Accepted Answer

A) True 
 B)False

Question 14

The cost of storing products until they are purchased or shipped to customers is called ____ cost.

Accepted Answer

A)  overhead 
B)  dispatching 
C)  sorting 
D)  holding 
E)  processing 
A)  overhead 
B)  dispatching 
C)  sorting 
D)  holding 
E)  processing

Question 15

In order to purchase Longaberger baskets or Pampered Chef kitchen items, you must buy it from a friend or coworker who is acting as a host. These three companies use

Accepted Answer

A)  catalog marketing. 
B)  direct-response marketing. 
C)  telemarketing. 
D)  the party plan. 
E)  pyramid marketing. 
A)  catalog marketing. 
B)  direct-response marketing. 
C)  telemarketing. 
D)  the party plan. 
E)  pyramid marketing.

Question 16

Anheuser-Busch Brewing purchases Lone Star Distribution, a beer distribution company in San Antonio, Texas. This is an example of a(n) ____ VMS.

Accepted Answer

A)  agency 
B)  corporate 
C)  contractual 
D)  administered 
E)  cooperative 
A)  agency 
B)  corporate 
C)  contractual 
D)  administered 
E)  cooperative

Question 17

A neighborhood shopping center usually has at least one large department store to attract customers to the center.

Accepted Answer

A) True 
 B)False

Question 18

All of the following are basic factors in the selection of a channel of distribution except the

Accepted Answer

A)  firm's production capability and marketing resources. 
B)  target market. 
C)  type of transportation to be used. 
D)  buying patterns of potential customers. 
E)  product itself. 
A)  firm's production capability and marketing resources. 
B)  target market. 
C)  type of transportation to be used. 
D)  buying patterns of potential customers. 
E)  product itself.

Question 19

An arcade within a restaurant that has various video games customers must pay to play is an example of

Accepted Answer

A)  direct selling. 
B)  direct-response marketing. 
C)  automatic vending. 
D)  a specialty retailer. 
E)  the party plan. 
A)  direct selling. 
B)  direct-response marketing. 
C)  automatic vending. 
D)  a specialty retailer. 
E)  the party plan.

Question 20

A retail outlet that sells a single category of merchandise is known as a

Accepted Answer

A)  convenience store. 
B)  catalog discount showroom. 
C)  supermarket. 
D)  department store. 
E)  specialty store. 
A)  convenience store. 
B)  catalog discount showroom. 
C)  supermarket. 
D)  department store. 
E)  specialty store.

Exam 14: Wholesaling, Retailing, and Physical Distribution

All those activities concerned with the efficient movement of products from the producer to the ultimate user are called

____ shopping centers usually consist of several small convenience and specialty stores, such as small grocery stores, drugstores, gas stations, and fast-food restaurants.

According to the U.S. Bureau of the Census, a department store is a retail store that employs fifteen or more employees.

Home Depot, Toys "R" Us, and Office Depot are examples of

A retailer is a middleman who

Gap Inc., Radio Shack, and Foot Locker are examples of

Direct marketing is the marketing of products to customers through face-to-face sales presentations at home or in the workplace.

The three types of vertical marketing systems are

The Lakeview Coal Mine processes its coal and delivers it across a river to its end customer, Lakeview Power and Light. The most effective transportation mode of the processed coal would be by ship.

A clothing retailer has been striving to reduce the costs of its inventory, but many of its customers are switching to competitors because they do not want to wait for the retailer to order the items. This retailer is experiencing

Marketing that occurs when a retailer advertises a product and makes it available through mail or telephone or online orders is called

Regional shopping centers sometimes contain hotels.

The cost of storing products until they are purchased or shipped to customers is called ____ cost.

In order to purchase Longaberger baskets or Pampered Chef kitchen items, you must buy it from a friend or coworker who is acting as a host. These three companies use

Anheuser-Busch Brewing purchases Lone Star Distribution, a beer distribution company in San Antonio, Texas. This is an example of a(n) ____ VMS.

A neighborhood shopping center usually has at least one large department store to attract customers to the center.

All of the following are basic factors in the selection of a channel of distribution except the

An arcade within a restaurant that has various video games customers must pay to play is an example of

A retail outlet that sells a single category of merchandise is known as a

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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