Deck 11: Deliver the Goods: Determine the Distribution Strategy

Question 1

An intermediary who ________ legally owns the goods being handled.

A) breaks bulk
B) takes title
C) creates assortments
D) takes consignments
E) infringes on copyright

Answer 1

B

Question 2

At minimum, a channel of distribution consists of a producer and a(n) ________.

A) wholesaler
B) diverter
C) broker
D) intermediary
E) customer

Answer 2

E

Question 3

Truck jobbers are limited-service merchant wholesalers who would most likely handle which of the following?

A) building materials
B) fruits and vegetables
C) coal and lumber
D) cosmetics
E) magazines

Answer 3

B

Question 4

Channel members can help producers by identifying customer complaints, customer preferences, and new competitors in the market. These are all examples of the ________ function of channel intermediaries.

A) communication
B) marketing
C) facilitating
D) diverting
E) risk-taking

Question 5

Wholesalers and retailers create efficiencies in the flow of goods from producer to end consumer by ________ when they provide a variety of products in one location.

A) creating assortments
B) inventorying with just-in-time
C) breaking bulk
D) order processing
E) risk taking

Question 6

Drop shippers do all of the following EXCEPT which of the following?

A) take title to the merchandise
B) take actual possession of the merchandise
C) take orders from retailers and industry buyers
D) bill retailers and industry buyers
E) assume the same risks as other types of limited-service merchant wholesalers

Question 7

Through a process of ________, traditional intermediaries are being eliminated as many companies question the value added by layers in the distribution channel.

A) knowledge management
B) disintermediation
C) horizontal marketing
D) vertical marketing
E) hybrid marketing

Question 8

The owner of a grocery store wants to have non-food items delivered, priced, displayed, and inventoried by a wholesaler. Which type of wholesaler best fits the owner's needs?

A) drop shipper
B) cash-and-carry wholesaler
C) truck jobber
D) rack jobber
E) mail-order wholesaler

Question 9

It is most accurate to say that channels of distribution provide which of the following?

A) time, place, and possession utility
B) promotion, product, and place utility
C) time, place, and form utility
D) promotion and form utility
E) time and promotion utility

Question 10

Which of the following is the series of firms or individuals that facilitate(s) the movement of a product from the producer to the final customers?

A) the industrial network
B) the retailer chain
C) the multilevel network
D) the channel of distribution
E) the conventional marketing system

Question 11

The theft and unauthorized repurposing of intellectual material via the Internet is called ________.

A) subscription boxing
B) product diversion
C) online distribution piracy
D) disintermediation
E) taking title

Question 12

Offering credit to buyers and providing refund services for products are both examples of ________ functions provided by channel intermediaries.

A) diverting
B) marketing
C) breaking bulk
D) facilitating
E) creating assortment

Question 13

Which of the following is the term for the firms and individuals who help move a product to the consumer or the business user?

A) product managers
B) channel leaders
C) channel intermediaries
D) enterprise resource planners
E) franchisees

Question 14

Which group of independent intermediaries can be divided into the two broad types of full-service and limited-service?

A) brokers
B) agents
C) sales branches
D) specialty wholesalers
E) merchant wholesalers

Question 15

Intermediaries that do business with many different manufacturers and many different customers are most accurately referred to as ________.

A) interdependent intermediaries
B) dependent intermediaries
C) independent intermediaries
D) wholesalers
E) retail outlets

Question 16

Which of the following describes a comprehensive approach to collecting, organizing, storing, and retrieving a firm's information assets?

A) logistics
B) knowledge management
C) facilitation
D) enterprise resource planning
E) just-in-time techniques

Question 17

Mail-order wholesalers are associated with all of the following EXCEPT which one?

A) selling products to small retailers and other industrial customers
B) selling products to retailers in remote locations
C) allowing shipment prior to receiving payment
D) carrying products in inventory
E) selling through catalogs

Question 18

Limited-service merchant wholesalers are less likely than full-service merchant wholesalers to do which of the following?

A) set the prices of the merchandise they sell
B) take title to the merchandise they sell
C) suffer financial losses if the merchandise they sell is damaged or stolen
D) offer marketing assistance or delivery for the products they sell
E) use their own sales force

Question 19

A retailer that takes a loss on perishable items that do not sell before their expiration date is an example of the ________ function provided by channel intermediaries.

A) diverting
B) marketing
C) breaking bulk
D) facilitating
E) risk-taking

Question 20

Wholesalers and retailers purchase large quantities of goods from manufacturers but sell only one or a few at a time to many different customers. This process is called ________.

A) creating assortments
B) breaking bulk
C) third-party logistics
D) order processing
E) inventory control

Question 21

The producer-retailer-consumer channel is ________.

A) the most efficient channel
B) also referred to as a triple channel
C) the shortest indirect channel
D) the shortest direct channel
E) a rarely used channel form

Question 22

Through the practice of ________, a channel member sells a product through channels that the manufacturer did not authorize.

A) subscription boxing
B) slotting
C) hybrid marketing
D) dual distribution
E) product diversion

Question 23

Ed Barney owns a chain of small gift shops. Before buying merchandise to carry in his store, Barney can visit a ________ where he can examine a manufacturer's products before he stocks his stores.

A) sales office
B) manufacturer's showroom
C) commission merchandise mart
D) merchandise brokerage
E) manufacturer's office

Question 24

Which of the following are manufacturer-owned facilities that carry inventory and provide sales and services to customers?

A) sales offices
B) sales branches
C) manufacturers' showrooms
D) manufacturers' offices
E) merchandise brokerages

Question 25

Manufacturers' ________, also called manufacturers' representatives, represent a buyer or seller on an ongoing basis.

A) brokers
B) franchisers
C) agents
D) retailers
E) intermediaries

Question 26

Which of the following channel intermediaries have unlimited territory and control the pricing, promotion, and distribution of their products?

A) manufacturers' reps
B) selling agents
C) merchandise brokers
D) rack jobbers
E) sales branches

Question 27

Which of the following statements about manufacturers' agents is true?

A) Manufacturers' agents are also called manufacturers' brokers.
B) Manufacturers' agents most typically work for only one manufacturer.
C) Manufacturers' agents are paid with commissions based on a percentage of their sales.
D) Manufacturers' agents have unlimited sales territories.
E) Manufacturers' agents market one manufacturer's entire product line.

Question 28

To a producer of goods, a greater number of channel levels means ________.

A) less distance between producer and end consumer
B) less control
C) more creativity
D) higher taxes
E) fewer distribution systems

Question 29

Which of the following is a distribution system that uses different channels and communication methods to reach and serve a target market?

A) a vertical marketing system
B) a horizontal marketing system
C) a hybrid marketing system
D) a logistics system
E) an intensive distribution system

Question 30

In business-to-business channels, the functions of a merchant wholesaler are performed by a(n) ________.

A) sales office
B) commission merchant
C) merchant broker
D) business retailer
E) industrial distributor

Question 31

A commission merchant would most likely sell which of the following?

A) agricultural products
B) extractive materials such as coal and iron
C) convenience goods such as gum and candy
D) fresh fruits and vegetables
E) real estate

Question 32

Which of the following is in place when a producer, dealer, wholesaler, retailer, or customer interacts with more than one type of channel?

A) a dual or multiple distribution system
B) intermediation
C) knowledge management
D) disintermediation
E) a vertical marketing system

Question 33

Which of the following statements about merchandise brokers is true?

A) Brokers are paid salaries by the manufacturers for whom they work.
B) Brokers never take title to the merchandise they sell.
C) Brokers work for manufacturer-owned intermediaries.
D) Brokers typically represent sellers on an ongoing basis.
E) Brokers work in industries with only a few, very large buyers and sellers.

Question 34

Rack jobbers are limited-service merchant wholesalers who would most likely handle which of the following?

A) imported plants
B) precious minerals
C) agricultural products
D) perishable food items
E) magazines

Question 35

Which of the following is true about sales branches, sales offices, and manufacturers' showrooms?

A) They are all manufacturer-owned intermediaries.
B) They all determine the marketing strategy for the products they sell.
C) They are all independent intermediaries.
D) They all carry inventory and take title to the inventory they carry.
E) They perform the same functions as self-service wholesalers.

Question 36

Which of the following are manufacturer-owned facilities that do not carry inventory but provide selling functions for the manufacturer in a specific geographic area?

A) commission merchandise marts
B) merchandise brokerages
C) sales offices
D) sales branches
E) manufacturers' showrooms

Question 37

Which of the following statements about business-to-business channels is true?

A) Direct channels are more common in business-to-business markets than consumer markets.
B) Business-to-business channels have few parallels with consumer channels.
C) The size of business markets makes indirect channels more efficient.
D) Indirect channels are more common in business-to-business markets than consumer markets.
E) When an industrial distributor is included in a business-to-business channel, the channel is by definition direct.

Question 38

A ________ brings buyers and sellers together and facilitates transactions, typically charging a fee after a transaction is completed.

A) cash-and-carry wholesaler
B) broker
C) retailer
D) wholesaler
E) commission merchant

Question 39

Which of the following is most likely to force a manufacturer to pay a slotting allowance?

A) a selling agent
B) a merchandise broker
C) a large retail chain
D) a small retailer
E) a rack jobber

Question 40

Which of the following are intermediaries that receive fees for facilitating transactions in markets such as real estate, food, and used equipment in which there are a lot of small buyers and sellers?

A) manufacturers' agents
B) selling agents
C) commission merchants
D) merchandise brokers
E) sale mediators

Question 41

When rooms-To-Go furniture retailers provide financing for customers' purchases, they are performing a channel intermediary facilitating function.

Question 42

Channels that contain intermediaries are indirect.

Question 43

The producer and the final consumer are part of every type of channel of distribution.

Question 44

Steve's Physco Skates sells its products to Walmart, who then sells them to the consumer. This is an example of a(n) ________.

A) direct marketing channel
B) producer channel
C) indirect marketing channel
D) horizontal marketing system
E) corporate vertical marketing system

Question 45

Which of the following is an example of a dual distribution system?

A) Walmart locating in several countries
B) Athleta's catalog and retail store sales
C) Avon's door-to-door distribution
D) Starbucks located inside a bookstore
E) a hotel providing guest privileges at a nearby health spa

Question 46

Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from Chemical, Inc., then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store. Chemical, Inc. took title to the pool chemicals but never actually took possession of them. Chemical, Inc. is an example of a ________.

A) drop shipper
B) truck jobber
C) rack jobber
D) mail-order wholesaler
E) cash-and-carry wholesaler

Question 47

Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from Chemical, Inc., which then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store. Chemical, Inc. is an example of which of the following?

A) a diverter
B) a truck jobber
C) a warehouser
D) a hybrid marketer
E) a wholesaling intermediary

Question 48

You own an independent store in your neighborhood and like to offer fresh seafood in your meat display case. Which type of wholesaler is likely to best serve you?

A) cash-and-carry wholesaler
B) drop shipper
C) rack jobber
D) selling agent
E) commission merchant

Question 49

An independent hardware retail store 100 miles from the nearest city of more than 5,000 people provides needed supplies for area ranchers. The store would most likely buy its plumbing and electrical supplies through a ________.

A) truck jobber
B) commission merchant
C) mail-order wholesaler
D) rack jobber
E) merchandise broker

Question 50

Nita can visit her local supermarket and buy a dozen roses, a gallon of milk, two birthday cards, a bag of cat litter, and a pan for roasting a turkey. This illustrates how channels of distribution benefit consumers by ________.

A) creating atmospherics
B) creating assortments
C) diverting products
D) managing knowledge
E) managing relationships

Question 51

A husband and wife have a small store that is located at a beach resort. The only products sold at this store are hand-dipped and sculptured candles made by this couple. Marketers would classify the channel of distribution for these candles as ________.

A) indirect
B) direct
C) logistic
D) reverse
E) inbound

Question 52

Which of the following is NOT a channel intermediary?

A) the supplier of the raw materials used to make glass windows
B) the distributor who sells stained glass windows
C) the wholesaler who buys the stained glass window from its creator
D) the showroom that displays glass windows for customers to see
E) the manufacturers' agent who sells the stained glass windows

Question 53

Traditional record labels are now able to control the online distribution piracy problems that had plagued the music industry in the past.

Question 54

Due to the success of the Internet, few producers sell through intermediaries today.

Question 55

In the B2B market, knowledge management can be facilitated through the use of an intranet by channel partners.

Question 56

Middlemen is an older term for intermediaries.

Question 57

Proud Pets, a producer of clothing and accessories for pets, has recently partnered with a regional chain of pet stores. Which of the following would Proud Pets be LEAST likely to expect from its new channel member?

A) promoting its products through advertising
B) assembling and packaging its products for final sale
C) distributing relevant market information
D) identifying raw materials and other productive inputs
E) taking the risk that items may not sell

Question 58

A business buys candy and gum from many different manufacturers and then resells the items to a variety of different stores. The business is an example of a(n) ________.

A) independent intermediary
B) manufacturer-owned intermediary
C) disintermediation
D) diverter
E) brokerage company

Question 59

Which of the following is the best example of a direct channel?

A) J&L Manufacturing Company sells drapery hardware to The Home Depot's Design Center, and the Design Center then sells it to consumers.
B) Family Dollar Store sells modeling clay to school-age children.
C) A wholesaler sells candy to convenience stores, who then sell it to store patrons.
D) Farmer Mintz sells corn to the Hughes household, who will eat it for supper.
E) A farmer in Colombia sells flowers to an international broker, who makes sure the flowers reach consumers in the United States.

Question 60

Burt can visit his local hardware store and buy one 4-inch paint brush and not the case of 24 brushes that the retailer had to buy. This is an example of how the channel of distribution facilitates ________.

A) assortment creation
B) risk taking
C) breaking bulk
D) relationship management
E) logistics

Question 61

How might the Internet affect the distribution channel of an artisan who makes handmade dolls that had previously been sold only at craft shows?

Question 62

Once an organization has developed its distribution objectives, it should next ________.

A) identify the channel leader
B) determine a distribution budget
C) select the optimum number of channel levels
D) define the target market and articulate the market segmentation strategy
E) evaluate the internal and external environments

Question 63

Marketers of subscription boxes provide the distribution channel function of creating assortments.

Question 64

Sales branches are independent wholesalers that are allowed to operate only in specific geographical territories.

Question 65

Which of the following is the first step in distribution planning?

A) identify the channel leader
B) determine a distribution budget
C) develop distribution objectives
D) evaluate the internal and external environments
E) determine the desired level of distribution intensity

Question 66

A major manufacturer of bread sells its finished products to a grocery store chain. This grocery store then sells the bread to its customers. What type of channel of distribution is this, and what are the levels of distribution?

Question 67

Rack jobbers are important to both the producers and the customers of bulky products such as coal, oil, or lumber.

Question 68

A U.S. wool producer that wants to export its product to Europe could use a selling agent or a merchandise broker.

Question 69

How do merchant wholesalers and agents/brokers differ?

Question 70

Why are direct channels of distribution common in business-to-business markets dealing with high-dollar, high-profit items?

Question 71

Explain the concept of a hybrid marketing system. What might be the advantages of a company implementing this type of marketing system?

Question 72

An appliance, television, and stereo dealer serves as an authorized repair center, provides maintenance contracts, and sells essential supplies to customers. What types of channel functions are being implemented by this dealer?

Question 73

To combat piracy, Netflix uses the strategy of making legal access to content easier and more convenient.

Question 74

A restaurant that features a serve-yourself buffet, which eliminates the need for a full wait staff, is using disintermediation.

Question 75

Compare the responsibilities assumed by a full-service merchant wholesalers to those taken on by limited-service merchant wholesalers.

Question 76

What are the similarities and differences between manufacturers' agents and selling agents?

Question 77

Always Fresh Produce Company has a route selling to more than 100 groceries, schools, and restaurants at wholesale prices. Last week the owners opened up a walk-in discounted consumer produce outlet. Always Fresh is now using a dual distribution system.

Question 78

How do channel members add value to a distribution channel?

Question 79

What are some advantages of a farmer selling strawberries grown on his farm directly to consumers instead of using channel intermediaries?

Question 80

Limited-service wholesalers do not take title to the merchandise they handle.