Question 1

A problem with the corporate distribution system is that the manufacturer has very little control over the operations of the retailers and other marketing intermediaries in the system.

Accepted Answer

A) True 
 B)False

Question 2

In multilevel marketing "upliners" recruit "downliners" and receive a commission on the sales their downliners make.

Accepted Answer

A) True 
 B)False

Question 3

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 4

The use of multiple modes of transportation to complete a single long-distance movement of freight is known as multi-carrier shipping.

Accepted Answer

A) True 
 B)False

Question 5

When truck trailers are placed on rail cars to travel long distances, the process is known as leapfrogging.

Accepted Answer

A) True 
 B)False

Question 6

Jen Carter is trying to find ways to improve her firm's movement of materials and goods from its warehouse to the factory floor. Jen is looking into ways of making her firm's more efficient.

Accepted Answer

A) internal logistics 
B) outbound logistics 
C) materials handling 
D) factory processes

Question 7

A sales agent is an agent who represents the interests of the consumer in a particular territory when negotiating terms of purchases made directly from a producer.

Accepted Answer

A) True 
 B)False

Question 8

brings raw materials, packaging, other goods and services, and information from suppliers to producers.

Accepted Answer

A) Freight forwarding 
B) Inbound logistics 
C) Materials handling 
D) Supply side logistics

Question 9

Which type of wholesale organization would be most useful to a small manufacturer that has shipments that are too small to fill a truck or railcar?

Accepted Answer

A) Rack jobbers 
B) Cash-and-carry wholesalers 
C) Piggy-backers 
D) Freight forwarders

Question 10

Inbound logistics is concerned with the flow of finished products from the manufacturer to the final consumer.

Accepted Answer

A) True 
 B)False

Question 11

The main difference between storage warehouses and distribution warehouses is that storage warehouses are relatively small, specialized facilities used to store one particular type of good for short periods while distribution warehouses are large facilities used to store a wide variety of goods for longer periods of time.

Accepted Answer

A) True 
 B)False

Question 12

Marketing intermediaries can provide utility by offering customers affordable credit, free delivery, and product guarantees.

Accepted Answer

A) possession 
B) information 
C) form 
D) promotion

Question 13

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

Question 14

Delacroix Shoes produces top-quality high-fashion shoes, designed for the person concerned about style. Delacroix gives only a few preferred retailers in a given market area the right to market its product. Delacroix Shoes uses:

Accepted Answer

A) intensive distribution. 
B) selective distribution. 
C) exclusive distribution. 
D) limited function distribution.

Question 15

In the Spotlight on Small Business box in the chapter, Copart has found a ready market for its salvaged cars in the United States but has been unable to find a market globally due to distribution problems.

Accepted Answer

A) True 
 B)False

Question 16

At Stockman's Butcher Shop the butchers will hand cut steaks to the thickness their customers specify and trim off the excess fat. This extra service provides utility.

Accepted Answer

A) possession 
B) form 
C) secondary 
D) alterational

Question 17

utility adds value to goods by having them available where people want them.

Accepted Answer

A) Spatial 
B) Location specific 
C) Place 
D) Geographic

Question 18

A key distinction between agents and brokers is that agents tend to maintain long-term relationships with the people they represent whereas brokers are hired on a temporary basis.

Accepted Answer

A) True 
 B)False

Question 19

Some freight forwarders offer warehousing and customs assistance.

Accepted Answer

A) True 
 B)False

Question 20

McDonald's, KFC, Baskin-Robbins, and AAMCO all make use of the form of contractual distribution system.

Accepted Answer

A) wholesale-sponsored chain 
B) franchise 
C) retail cooperative 
D) horizontally administered

Exam 15: Distributing Products

A problem with the corporate distribution system is that the manufacturer has very little control over the operations of the retailers and other marketing intermediaries in the system.

In multilevel marketing "upliners" recruit "downliners" and receive a commission on the sales their downliners make.

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

The use of multiple modes of transportation to complete a single long-distance movement of freight is known as multi-carrier shipping.

When truck trailers are placed on rail cars to travel long distances, the process is known as leapfrogging.

Jen Carter is trying to find ways to improve her firm's movement of materials and goods from its warehouse to the factory floor. Jen is looking into ways of making her firm's more efficient.

A sales agent is an agent who represents the interests of the consumer in a particular territory when negotiating terms of purchases made directly from a producer.

brings raw materials, packaging, other goods and services, and information from suppliers to producers.

Which type of wholesale organization would be most useful to a small manufacturer that has shipments that are too small to fill a truck or railcar?

Inbound logistics is concerned with the flow of finished products from the manufacturer to the final consumer.

Marketing intermediaries can provide utility by offering customers affordable credit, free delivery, and product guarantees.

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

Delacroix Shoes produces top-quality high-fashion shoes, designed for the person concerned about style. Delacroix gives only a few preferred retailers in a given market area the right to market its product. Delacroix Shoes uses:

In the Spotlight on Small Business box in the chapter, Copart has found a ready market for its salvaged cars in the United States but has been unable to find a market globally due to distribution problems.

At Stockman's Butcher Shop the butchers will hand cut steaks to the thickness their customers specify and trim off the excess fat. This extra service provides utility.

utility adds value to goods by having them available where people want them.

A key distinction between agents and brokers is that agents tend to maintain long-term relationships with the people they represent whereas brokers are hired on a temporary basis.

Some freight forwarders offer warehousing and customs assistance.

McDonald's, KFC, Baskin-Robbins, and AAMCO all make use of the form of contractual distribution system.