Deck 13: Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Question 1

In the context of nonstore retailers, vending machines are a key element of multilevel marketing.

Answer 1

False

Question 2

One core role of distributors is to reduce the number of transactions for goods to flow from producers to consumers.

Answer 2

True

Question 3

When merchant wholesalers take legal title to the goods they distribute, they reduce the risk of producers' products being damaged or stolen.

Answer 3

True

Question 4

Agents and brokers facilitate transactions in exchange for commissions.

Question 5

In the context of the supply chain for a product, vendor-managed inventory is a strategy that allows suppliers to determine buyer needs and automatically ship product.

Question 6

Plateus Inc., a warehouse club, is considered a channel intermediary because it purchases chocolates from Chocodelight chocolatiers and sells it to customers.

Question 7

In the context of the distribution strategy of a product, no one stands between the producer and the customer in a direct distribution channel.

Question 8

Drop shippers are common in industries with bulky products, such as coal or timber.

Question 9

In the context of the key distribution strategies, the wheel of retailing accounts for stores that retain their niche as deep discounters.

Question 10

A supermarket sells a complete selection of food and general merchandise at a steep discount in a single enormous location.

Question 11

In the context of the various modes of transportation, sending products by ship is the most expensive option available to producers.

Question 12

In the context of retail store categories, an outlet store is a producer-owned store that sells directly to the public at a huge discount.

Question 13

Railroads are the slowest mode of transportation.

Question 14

Place utility satisfies customer needs by providing the right products in the right location.

Question 15

Supply chain management is a subset of logistics that focuses more on tactics than on strategy.

Question 16

In the context of modes of transportation, trucks have the lowest on-time dependability.

Question 17

In the context of modes of transportation, ships have limited availability.

Question 18

Selective distribution tends to work best for medium- and higher-priced products or stores that consumers don't expect to find on every street corner.

Question 19

In the context of pricing strategies, companies usually express volume goals in terms of profitability.

Question 20

Information utility boosts customer satisfaction by providing helpful data.

Question 21

Which of the following statements is true of ownership utility?

A) It boosts customer satisfaction by providing helpful information.
B) It satisfies customer needs by providing the right products in the right place.
C) It adds value by making products available at a convenient time for consumers.
D) It adds value by making it easier for customers to possess the goods that they purchase.

Question 22

Hansel owns and runs a fruit juice manufacturing company. He decides that the company will sell packaged fruit juices through wholesalers and retailers. In this scenario, which of the following distribution strategies is Hansel planning to use?

A) Channel intermediaries
B) Direct channel
C) Voice mail marketing
D) Direct mail

Question 23

Sales above the breakeven point will generate a profit.

Question 24

Gas stations and fast food that often cluster conveniently at the bottom of freeway ramps are examples of:

A) information utility.
B) ownership utility.
C) form utility.
D) place utility.

Question 25

Which of the following statements is true of service utility?

A) It provides customer satisfaction by converting inputs into finished products.
B) It satisfies customer needs by providing the right products in the right place.
C) It adds value by providing fast, friendly, personalized assistance.
D) It adds value by making it easier for customers to possess the goods that they purchase.

Question 26

Marketers can evaluate odd pricing strategy by examining its response in the target market.

Question 27

No firm can determine upfront how much money it needs to make for each item it sells.

Question 28

Which of the following statements is true of distributors in a channel of distribution?

A) They increase the number of transactions for goods to flow from producers to consumers.
B) They are always owned by producers.
C) They add value in a number of different ways to products.
D) They make distribution channels more complex.

Question 29

Allied Corp. is redesigning its path through which its products reach its consumers. The path involves producers, wholesalers, retailers, and customers. In the given scenario, it can be said that Allied Corp. is redesigning its _____.

A) channel of distribution
B) production operations
C) customer relationship channels
D) ABC system

Question 30

Everyday-low pricing (EDLP) means pricing a handful of items temporarily below cost to drive traffic.

Question 31

Ziffcorp, a laptop manufacturing company, is working on a strategy to deliver its laptops to the students of a university before their new term begins. It is evident that Ziffcorp is working on its _____.

A) advertisement strategy
B) distribution strategy
C) pricing strategy
D) product strategy

Question 32

Which of the following statements best defines a channel of distribution?

A) It is the network of regulatory agencies that regulate production strategies.
B) It is the network of organizations and processes that links producers to consumers.
C) It is a theory that suggests retail firms and retail categories become more upscale as they go through their life cycles.
D) It is the path through which products are produced and packaged in an assembly line.

Question 33

Most skateboard stores hire skater salespeople who gladly help customers find the best board for them. This means that most skateboard stores provide _____.

A) information utility
B) ownership utility
C) form utility
D) time utility

Question 34

Which of the following are the elements of distribution strategy?

A) Recruitment and performance appraisals
B) Channels of distribution and physical distribution
C) Pricing strategy and credit standards
D) Normal distribution and probability distribution

Question 35

Brendon Steels, a steel manufacturer, sells its steel rods and steel slabs to Widget Corp. that, in turn, sells them to various construction companies. In this scenario, Widget Corp. is a _____.

A) retailer
B) channel intermediary
C) direct producer
D) broker

Question 36

Providing credit, cashing checks, delivering goods, and installing products are all examples of _____.

A) information utility
B) ownership utility
C) form utility
D) place utility

Question 37

Single Tone, a local music and video store, consistently offers music CDs and movie DVDs at lower prices than its competitors. The pricing strategy that Single Tone uses is high/low pricing.

Question 38

_____ are distribution organizations that facilitate the movement of products from the producer to the consumer.

A) Stakeholders
B) Financial intermediaries
C) Marketers
D) Channel intermediaries

Question 39

Placing a special order for a part you need to customize your computer is an example of _____.

A) information utility
B) ownership utility
C) place utility
D) service utility

Question 40

Elvish Toys is a small-scale toy manufacturer. The company sells its products to customers at its own retail shops. In this scenario, it is evident that Elvish Toys sells its products to its customers through a _____.

A) direct channel
B) channel intermediary
C) merchant wholesaler
D) independent distributor

Question 41

Dash-N-Dee is an independent distributer that distributes cosmetics to various retailers. The company takes legal possession of the goods it distributes. The company warehouses the products but does not ship them to the retailers. It is evident that Dash-N-Dee is a(n) _____.

A) full-service merchant wholesaler
B) limited-service merchant wholesaler
C) broker
D) agent

Question 42

Neptune Corp. buys a wide range of products from automobile parts manufacturers, motorcycle riding gear manufacturers, and commercial paint manufacturers. It then sells these products to a wide range of different customers. It is evident that Neptune Corp. is a(n) _____.

A) independent store retailer
B) independent wholesaling business
C) broker
D) producer

Question 43

_____ service customers who are too small to merit in-person sales calls from wholesaler reps.

A) Truck jobbers
B) Cash and carry wholesalers
C) Drop shippers
D) Full-service merchant wholesalers

Question 44

Delvry Inc. is a solid fuel supplier. It supplies coal to different thermal power plants. The company takes legal possession of the coal, and they hire outside transporters to aid the delivery process. In this scenario, Delvry Inc. is a(n) _____.

A) agent
B) drop shipper
C) broker
D) full-service merchant wholesaler

Question 45

Merchant wholesalers can develop their own marketing strategies, including pricing strategies, because they:

A) facilitate transactions in exchange for commissions.
B) take legal title to the goods they distribute.
C) are the producers of the goods they distribute.
D) are the least common form of independent wholesalers.

Question 46

Techilex delivers timber directly to furniture manufacturers. The company takes legal possession of the timber it distributes. The company does not physically process timber but it facilitates timber's safe delivery to the clients. In this scenario, Techilex is a(n) _____.

A) agent
B) broker
C) drop shipper
D) truck Jobber

Question 47

Spade Archer buys surgical knives, scissors, forceps, needle holders, and retractors from a surgical equipment manufacturer and sells them to local hospitals. In this scenario, Spade Archer is a _____.

A) broker
B) producer
C) retailer
D) wholesaler

Question 48

In the context of limited-service merchant wholesalers, which of the following statements is true of cash and carry wholesalers?

A) They simply organize and facilitate product shipments directly from the producer to their customers.
B) They require customers to make the trip to the wholesaler themselves and cart their own products back to their stores.
C) They do not take legal title of the merchandise they distribute, but they can physically process it.
D) They provide a complete array of services to the retailers or business users who typically purchase their goods.

Question 49

Mars is an independent distributer that distributes goods, such as keyboards, monitors, and computer cabinets to various business users. The company takes legal possession of the goods it distributes. The company warehouses the products, ships them to its customers, provides promotional assistance to the manufacturers, provides product repairs, and credit to customers. It is evident that Mars Inc. is a _____.

A) full-service merchant wholesaler
B) cash and carry wholesaler
C) limited-service merchant wholesaler
D) truck jobber

Question 50

Which of the following statements is true of the members of a distribution channel?

A) All channels have at least five channel intermediaries.
B) Producers follow a single channel of distribution.
C) Some distributors act as both wholesalers and retailers.
D) Retailers buy products from the producer and sell them to businesses.

Question 51

Rosy's Sweet Treats is a small-scale restaurant that gets its supplies from Widget Suppliers that takes legal possession of the goods it distributes. The employees of Rosy's Sweet Treats make a monthly trip to Widget Suppliers to cart their own products back to the restaurant because Rosy's Sweet Treats is too small to merit in-person sales calls from customer care reps. In this scenario, Widget Suppliers is a(n) _____.

A) agent
B) broker
C) drop shipper
D) cash and carry wholesaler

Question 52

Plut Enterprise is an independent distributor that distributes paper cups, pens, pencils, and notepads to other firms on a large scale and takes legal possession of the goods it distributes. In this scenario, it can be said that Plut Enterprise is a(n) _____.

A) store retailer
B) broker
C) merchant wholesaler
D) agent

Question 53

JEMS Enterprise buys wooden furniture, such as tables and chairs, from a furniture manufacturer and sells them to government schools. In this scenario, JEMS Enterprise is a _____.

A) broker
B) producer
C) wholesaler
D) retailer

Question 54

Newzon Coal Supply takes possession of coal from local mining companies. However, it does not store a single ounce of coal on its premises. Instead, it simply arranges for the coal to be shipped directly from the mining companies to their customers. This type of arrangement suggests that Newzon Coal Supply is a _____.

A) drop shipper
B) full-service merchant wholesaler
C) cash and carry wholesaler
D) truck jobber

Question 55

Merc Enterprise is an independent distributor that distributes coffee machines and water purifiers to firms on a large scale. In addition to taking legal possession of the goods it distributes, the company also provides a complete array of services that includes warehousing, shipping, product repairs, and credit to its business buyers. In this scenario, it can be said that Merc Enterprises is a(n) _____.

A) store retailer
B) broker
C) agent
D) merchant wholesaler

Question 56

Transcone is an independent distributer that distributes home décor related products to various retailers. The company takes legal possession of the goods it distributes. It warehouses the products and ships them to the retailers, but it does not provide credit or marketing assistance. It is evident that Transcone is a(n) _____.

A) full-service merchant wholesaler
B) agent
C) broker
D) limited-service merchant wholesaler

Question 57

Saturn Systems, an electronic goods manufacturer, sells its LED bulbs to Shockwave Enterprise, which in turn sells those bulbs to final consumers. In this scenario, Shockwave Enterprise is a _____.

A) wholesaler
B) producer
C) retailer
D) broker

Question 58

Shell Enterprise is a soft toy manufacturer. It sells its toys to ToySpot, a company that sells a wide range of toys to the public at a single location. In this scenario, ToySpot is a _____.

A) wholesaler
B) producer
C) broker
D) retailer

Question 59

Which of the following statements is true of independent wholesalers?

A) Merchant wholesalers comprise about 80 percent of all wholesalers.
B) Merchant wholesalers do not take legal ownership of the goods they distribute.
C) Agents take legal possession, or title, of the goods they distribute.
D) Brokers do not handle real estate and seasonal products.

Question 60

Distributors that provide service utility typically:

A) convert inputs into finished products.
B) do not undertake post-delivery maintenance.
C) make it easier for customers to own their products.
D) create a loyal base of customers.

Question 61

The responsibilities of _____ often include checking the stock, suggesting reorder quantities, and removing out-of-date goods.

A) statutory auditors
B) legal brokers
C) drop shippers
D) truck jobbers

Question 62

Fit & Flare is a fitness equipment manufacturer. It sells its equipment directly to the public through its own stores at a huge discount. From the given scenario, it can be concluded that Fit & Flare is a(n) _____.

A) outlet store
B) discount store
C) convenience store
D) independent wholesaler

Question 63

Allied Bakeries sells processed food and beverages manufactured by Winston Corp. to the public. In this scenario, Allied Bakeries is a _____.

A) wholesaler
B) truck jobber
C) retailer
D) drop shipper

Question 64

Dominic's Store offers a wide variety of clothes, furniture, cosmetics, and office supplies at significantly lower prices and provides less service than most department stores. In this scenario, Dominic's Store most likely is a(n) _____.

A) outlet store
B) discount store
C) convenience store
D) specialty store

Question 65

Which of the following statements is true of a supercenter?

A) It offers a small range of everyday and impulse products at easy-to-access locations with long hours and quick checkout.
B) It is a producer-owned store that sells directly to the public at a huge discount.
C) It sells a wide selection of merchandise within a narrow category.
D) It sells a complete selection of food and general merchandise at a steep discount in a single enormous location.

Question 66

Plezion Corp. is an independent distributor that connects furniture sellers to its buyers. The company distributes furniture made of plastic, wood, and carbon fiber on a large scale. The company does not take legal ownership of the goods it distributes. In this scenario, it can be said that Plezion Corp. is a(n) _____.

A) retailer
B) agent
C) merchant wholesaler
D) end user

Question 67

In the context of marketers selling their products, _____ means encouraging consumers to buy through different venues.

A) multichannel retailing
B) independent wholesaling
C) merchant wholesaling
D) independent retailing

Question 68

Crystal Corp. is an independent distributor that distributes cosmetics, apparels, shoes, and bags to other business customers on a large scale. It does not take legal title to the goods it distributes. In this scenario, it can be said that Crystal Corp. is a(n) _____.

A) retailer
B) broker
C) merchant wholesaler
D) end user

Question 69

Which of the following statements is true of a supermarket?

A) It offers a small range of everyday and impulse products at easy-to-access locations.
B) It offers a wide range of food products, plus limited nonfood items.
C) It sells a wide selection of merchandise within a narrow category.
D) It sells discounted food and general merchandise to club members in a large warehouse format.

Question 70

A-n-Y dominates its market section by offering a wide range of toys that includes soft toys, plastic construction toys, electronic toys, and board games to the public. It is evident that A-n-Y is a _____.

A) supermarket
B) department store
C) category killer
D) supercenter

Question 71

Teri Bake delivers fresh cakes, breads, pies, and muffins to several small grocery stores in Central Radisova. In addition to delivering baked goods, Teri Bake's employees help the small store owners keep track of what they need to order, and they even remove outdated baked goods from the store shelves. Teri Bake is a _____.

A) truck jobber
B) drop shipper
C) cash and carry wholesaler
D) full-service merchant wholesaler

Question 72

In the context of retail stores, which of the following statements is true of a convenience store?

A) It sells a small range of everyday and impulse products at easy-to-access locations with long hours and quick checkout.
B) It sells a wide selection of merchandise within a narrow category, such as auto parts.
C) It dominates its category by offering a huge variety of one type of product.
D) It sells discounted food and general merchandise to club members in a large warehouse format.

Question 73

Daquip is a baseball kit manufacturer. It sells its products to final consumers through its own stores at a huge discount. From the given scenario, it can be concluded that Daquip is a(n) _____.

A) outlet store
B) discount store
C) convenience store
D) independent wholesaler

Question 74

Nicoloss is a store that sells clothes, cosmetics, travel bags, and furniture to final consumers. Customer reviews indicate that the store offers a high level of service. In this scenario, Nicoloss is an example of a(n) _____.

A) outlet store
B) discount store
C) department store
D) specialty store

Question 75

Donton Inc. dominates its market section by offering a wide range of office supplies that includes printers, furniture, and cleaning supplies to final consumers. It is evident that Donton Inc. is a _____.

A) category killer
B) department store
C) supermarket
D) supercenter

Question 76

Aubosh Body Works is a retailer that exclusively sells a wide selection of personal care products, such as deodorants, lip balms, eye masks, perfumes, moisturizers, and wet wipes. It is evident that Aubosh Body Works is a(n) _____.

A) outlet store
B) discount store
C) convenience store
D) specialty store

Question 77

Which of the following statements is true of a specialty store?

A) It offers a small range of everyday and impulse products at easy-to-access locations.
B) It offers a wide range of food products, plus limited nonfood items.
C) It sells a wide selection of merchandise within a narrow category.
D) It sells a complete selection of food and general merchandise at a steep discount in a single enormous location.

Question 78

Lynk Corp. drives perishable goods, such as eggs, bread, and muffins to small grocery stores. In addition to taking legal title of the goods it distributes, Lynk Corp. also checks the stock and suggests reorder quantities to the grocery stores. It is evident that Lynk Corp. is a(n) _____.

A) agent
B) broker
C) drop shipper
D) truck jobber

Question 79

TrinkCan is a soda manufacturing company. People can buy the company's soda from grocery stores, restaurants, vending machines, and online. In this scenario, it is evident that TrinkCan has adopted _____.

A) multichannel retailing
B) independent wholesaling
C) merchant wholesaling
D) independent retailing

Question 80

Nexi 10 is a store retailer that offers a wide range of food products, such as meat, vegetables, dairy products, and baked goods at a single location. In addition to food products, it also offers a variety of household products and personal care items. In this scenario, it is evident that Nexi 10 is a _____.

A) supermarket
B) discount store
C) convenience store
D) supercenter