Question 1

_____ bring buyers and sellers together.

Accepted Answer

A)  Agents 
B)  Brokers 
C)  Wholesalers 
D)  Distributors

Question 2

By using a _____, retailers are creating a supply flow of goods that more closely approximates consumer purchase patterns and reduces inventory levels.

Accepted Answer

A)  electronic data exchange system (EDI) 
B)  hub-and-spoke distribution system (HS
D)  
C)  just-in-time inventory system (JIT) 
D)  quick response inventory system (QR)

Question 3

Merchant wholesalers are independent intermediaries who take title to and possession of products they distribute to resellers or organizational consumers.

Accepted Answer

A) True 
 B)False

Question 4

A direct channel of distribution has no intermediaries.

Accepted Answer

A) True 
 B)False

Question 5

A selective distribution is a strategy that has a goal of high control of the intermediaries handling the product, and thus of the marketing strategy, by limiting the number of distributors to just one or two per geographic area.

Accepted Answer

A) True 
 B)False

Question 6

Warehouses that are owned or leased, and operated by firms storing their own products are _________________________.

Accepted Answer

The answer of Warehouses that are owned or leased, and...

Question 7

In terms of channel power, referent power is based on the close match in terms of values and objectives that members of the channel share.

Accepted Answer

A) True 
 B)False

Question 8

The value chain, or supply chain, consists of the

Accepted Answer

A)  participants involved in the value chain 
B)  planning of the physical movement of products from the producer to individual or organizational consumers, and the transfer of ownership and risk; it involves transportation, warehousing, and all the exchanges taking place at each channel level 
C)  totality of organizations and individuals involved in the distribution process who take title to or assist in the transferring of title in the distribution process from the producer to the individual or organizational consumer 
D)  chain of activities performed in the process of developing, producing, marketing, delivering, and servicing a product for the benefit of the customer

Question 9

Warehousing is the

Accepted Answer

A)  marketing function whereby goods are stored, identified, and sorted in the process of transfer to an intermediary in the distribution channel or to the final consumer 
B)  specialized firm that collects shipments from different businesses and consolidates them into one shipment 
C)  computerized process of moving goods that are received to different destination points without physically storing the goods 
D)  movement of goods from producers through intermediaries to retailers and consumers

Question 10

A direct channel of distribution

Accepted Answer

A)  has no intermediaries between the producer and consumer 
B)  involves one or more intermediaries between the producer and consumer 
C)  is the number of levels of distribution in a distribution channel 
D)  is the number of independent intermediaries involved at a particular stage of distribution

Question 11

The U.S. Department of Commerce reported that 60 percent of all Fortune 500 companies' logistics costs are spent on

Accepted Answer

A)  warehousing 
B)  transportation 
C)  inventory control and order processing 
D)  wholesaling

Question 12

The planning of the physical movement of products from the producer to individual or organizational consumers, which involves transportation, warehousing, ownership, and risk, is called

Accepted Answer

A)  distribution planning 
B)  channels of distribution 
C)  supply value chain 
D)  value delivery chain

Question 13

Intermediaries can provide all of the following advantages except

Accepted Answer

A)  intermediaries can shorten the channel length 
B)  intermediaries can carry and store the product 
C)  intermediaries can buy products in bulk from manufacturers and then break them down into smaller quantities for retailers 
D)  intermediaries can provide a greater assortment of products to retailers, and ultimately to consumers

Question 14

_____ transportation is the primary method of transportation for long distances of high-weight, high-volume products that have a low per-pound value.

Accepted Answer

A)  Truck 
B)  Rail 
C)  Air 
D)  Water

Question 15

Channel width is the

Accepted Answer

A)  number of retailers involved in a particular channel of distribution 
B)  number of agents or brokers used by a particular manufacturer 
C)  number of levels of distribution in a distribution channel 
D)  number of independent intermediaries involved at a particular stage of distribution

Question 16

Match the definitions below with the type of wholesaler:
-Manages store shelves carrying manufacturers' products, assembles the point-of-purchase displays, and determines product prices.

Accepted Answer

A)  general merchandise wholesaler 
B)  speciality wholesaler 
C)  franchise wholesaler 
D)  wholesale cooperative 
E)  rack jobber
F) cash-and-carry wholesaler
G) truck wholesaler
H) drop shippers

Question 17

In terms of channel organization and administration, a contractual channel arrangement is a contract between intermediaries that defines all the tasks that each channel member must perform with regard to production, delivery strategy and terms of sale, territorial rights, promotional support, the price policies of each intermediary, and contract length.

Accepted Answer

A) True 
 B)False

Question 18

The organizations or individuals involved in the distribution process are called ____________________.

Accepted Answer

The answer of The organizations or individuals involved in the...

Question 19

A Keiretsu is a Japanese

Accepted Answer

A)  intermediary marketing system that consists of manufacturers, wholesalers, and retailers in the same channel acting as a unified whole 
B)  intermediary system at the same level of the distribution channel pooling resources and achieving economies of scale, thereby playing on their individual strengths 
C)  company that specializes in providing intermediary services, risk reduction through extensive information channels, and significant financial assistance to manufacturing firms 
D)  family of firms with interlocking stakes in one another

Question 20

More than half of all wholesalers are

Accepted Answer

A)  merchant wholesalers 
B)  full-service wholesalers 
C)  general merchandise wholesalers 
D)  rack jobbers

Exam 10: Distribution Strategies

_____ bring buyers and sellers together.

By using a _____, retailers are creating a supply flow of goods that more closely approximates consumer purchase patterns and reduces inventory levels.

Merchant wholesalers are independent intermediaries who take title to and possession of products they distribute to resellers or organizational consumers.

A direct channel of distribution has no intermediaries.

A selective distribution is a strategy that has a goal of high control of the intermediaries handling the product, and thus of the marketing strategy, by limiting the number of distributors to just one or two per geographic area.

Warehouses that are owned or leased, and operated by firms storing their own products are _________________________.

In terms of channel power, referent power is based on the close match in terms of values and objectives that members of the channel share.

The value chain, or supply chain, consists of the

Warehousing is the

A direct channel of distribution

The U.S. Department of Commerce reported that 60 percent of all Fortune 500 companies' logistics costs are spent on

The planning of the physical movement of products from the producer to individual or organizational consumers, which involves transportation, warehousing, ownership, and risk, is called

Intermediaries can provide all of the following advantages except

_____ transportation is the primary method of transportation for long distances of high-weight, high-volume products that have a low per-pound value.

Channel width is the

Match the definitions below with the type of wholesaler: -Manages store shelves carrying manufacturers' products, assembles the point-of-purchase displays, and determines product prices.

The organizations or individuals involved in the distribution process are called ____________________.

A Keiretsu is a Japanese

More than half of all wholesalers are