Question 1

Drop shippers are limited function wholesalers that typically put together many small shipments to form a single larger shipment.

Accepted Answer

A) True 
 B)False

Question 2

The costs added by marketing intermediaries usually outweigh the value they create.

Accepted Answer

A) True 
 B)False

Question 3

Retailers that participate in an exclusive distribution strategy will have a strong incentive to carry a large inventory of the good and provide exceptional service to customers.

Accepted Answer

A) True 
 B)False

Question 4

When firms manage the return of goods from consumers either because they are defective or for recycling purposes, they are involved in

Accepted Answer

A)  materials handling. 
B)  inbound logistics. 
C)  factory processes. 
D)  reverse logistics. 
A)  materials handling. 
B)  inbound logistics. 
C)  factory processes. 
D)  reverse logistics.

Question 5

One way a store selling HDTVs might add ________ utility is to provide convenient delivery and setup to customers.

Accepted Answer

A)  possession 
B)  distributive 
C)  conditional 
D)  time 
A)  possession 
B)  distributive 
C)  conditional 
D)  time

Question 6

Rack jobbers sell goods on consignment, splitting the profits from their sales with a retailer.

Accepted Answer

A) True 
 B)False

Question 7

Direct marketing involves having a salesperson visit the customer's home or place of business.

Accepted Answer

A) True 
 B)False

Question 8

Qwikship is a new delivery company that wants to compete against FedEx and UPS in the United States, Canada, and Mexico. One of the keys to Qwikship's success will be the ability to establish large storage warehouses at a few key locations throughout North America.

Accepted Answer

A) True 
 B)False

Question 9

The primary difference between retailers and wholesalers is that

Accepted Answer

A)  retailers sell consumer goods, while wholesalers sell industrial goods. 
B)  retailers operate in local areas, while wholesalers operate over a wide geographic area. 
C)  retailers sell to final consumers, while wholesalers sell to other organizations, such as retailers or manufacturers. 
D)  retailers have sales of less than $100 million, while wholesalers have sales of $100 million or more. 
A)  retailers sell consumer goods, while wholesalers sell industrial goods. 
B)  retailers operate in local areas, while wholesalers operate over a wide geographic area. 
C)  retailers sell to final consumers, while wholesalers sell to other organizations, such as retailers or manufacturers. 
D)  retailers have sales of less than $100 million, while wholesalers have sales of $100 million or more.

Question 10

Which of the following is an example of a consumer making a purchase through a direct marketing arrangement?

Accepted Answer

A)  Pete purchased a box of cereal at a local grocery store with a coupon on the box. 
B)  Pamela purchased a phone at a big-box retailer's special tech department. 
C)  Phoebe purchased a set of towels featured in a department store's lower level. 
D)  Patrick purchased a book on the history of the U.S. by sending in an order form attached to a pamphlet sent to the customer by the publisher. 
A)  Pete purchased a box of cereal at a local grocery store with a coupon on the box. 
B)  Pamela purchased a phone at a big-box retailer's special tech department. 
C)  Phoebe purchased a set of towels featured in a department store's lower level. 
D)  Patrick purchased a book on the history of the U.S. by sending in an order form attached to a pamphlet sent to the customer by the publisher.

Question 11

Items such as snow skis, lawnmowers, and other highly seasonal items are often held in ________ warehouses during the months they are not in demand.

Accepted Answer

A)  seasonal 
B)  distribution 
C)  set aside 
D)  storage 
A)  seasonal 
B)  distribution 
C)  set aside 
D)  storage

Question 12

Discount stores, supermarkets, and department stores are all common types of

Accepted Answer

A)  multilevel marketers. 
B)  full-service wholesalers. 
C)  retail stores. 
D)  category killers. 
A)  multilevel marketers. 
B)  full-service wholesalers. 
C)  retail stores. 
D)  category killers.

Question 13

Tony brings together buyers and sellers of used heavy construction equipment, and helps them negotiate the terms of the sale. However, he never takes title to any of the equipment himself, nor does he provide any financing for the buyer. Tony is acting as a

Accepted Answer

A)  channel captain. 
B)  broker. 
C)  wholesaler. 
D)  logistics specialist. 
A)  channel captain. 
B)  broker. 
C)  wholesaler. 
D)  logistics specialist.

Question 14

One drawback of kiosks is that their high overhead costs result in low profit margins.

Accepted Answer

A) True 
 B)False

Question 15

Most marketing intermediaries have survived in the past because consumers were unaware of how much these companies add to the cost of distributing goods.

Accepted Answer

A) True 
 B)False

Question 16

Cesar claims he found a definite way to save money, "Buy direct from the manufacturer. Any time intermediaries get involved, you'll pay a higher price. After all, every intermediary involved in the marketing process must charge enough to earn a profit." What do you make of Cesar's claim?

Accepted Answer

A)  It is entirely correct. Intermediaries must charge a high enough price for the activities they perform to earn a profit, so using intermediaries must result in a higher price. 
B)  It is impractical, because in most markets the distribution process is so complex that it is impossible to determine who the actual producer really is. 
C)  It is not valid in many cases. Intermediaries do add costs to products, but they also create value by performing marketing functions efficiently. In many cases the value they create more than offsets the costs they add. 
D)  It is never true. Markets that make use of intermediaries can always provide goods at lower cost than those that rely on direct distribution. 
A)  It is entirely correct. Intermediaries must charge a high enough price for the activities they perform to earn a profit, so using intermediaries must result in a higher price. 
B)  It is impractical, because in most markets the distribution process is so complex that it is impossible to determine who the actual producer really is. 
C)  It is not valid in many cases. Intermediaries do add costs to products, but they also create value by performing marketing functions efficiently. In many cases the value they create more than offsets the costs they add. 
D)  It is never true. Markets that make use of intermediaries can always provide goods at lower cost than those that rely on direct distribution.

Question 17

Explain why you agree or disagree with the following statement:
"Marketing intermediaries must charge a high enough price for the functions they perform to earn a profit. Therefore, the cost of distributing goods can almost always be reduced by eliminating marketing intermediaries from the channel of distribution."

Accepted Answer

It is True that marketing intermediaries

Question 18

A ________ offers a huge selection of one type of product (such as books, toys, or sporting goods) to dominate that category of goods.

Accepted Answer

A)  department store 
B)  category killer store 
C)  saturation retailer 
D)  cash-and-carry retailer 
A)  department store 
B)  category killer store 
C)  saturation retailer 
D)  cash-and-carry retailer

Question 19

The use of pipelines should decline in the future because this mode is suitable only for shipping petroleum.

Accepted Answer

A) True 
 B)False

Question 20

Dee's suggestion that the company needed more control over the way its products were displayed, priced, and promoted prompted a lot of discussion. Mark suggested that the company should manage these marketing functions for its products at the retail outlets. Mark appears to be suggesting that Lite Bite use a(n)

Accepted Answer

A)  corporate distribution system. 
B)  franchise arrangement. 
C)  manufacturer-sponsored marketing chain. 
D)  administered distribution system. 
A)  corporate distribution system. 
B)  franchise arrangement. 
C)  manufacturer-sponsored marketing chain. 
D)  administered distribution system.

Exam 15: Distributing Products

Drop shippers are limited function wholesalers that typically put together many small shipments to form a single larger shipment.

The costs added by marketing intermediaries usually outweigh the value they create.

Retailers that participate in an exclusive distribution strategy will have a strong incentive to carry a large inventory of the good and provide exceptional service to customers.

When firms manage the return of goods from consumers either because they are defective or for recycling purposes, they are involved in

One way a store selling HDTVs might add ________ utility is to provide convenient delivery and setup to customers.

Rack jobbers sell goods on consignment, splitting the profits from their sales with a retailer.

Direct marketing involves having a salesperson visit the customer's home or place of business.

Qwikship is a new delivery company that wants to compete against FedEx and UPS in the United States, Canada, and Mexico. One of the keys to Qwikship's success will be the ability to establish large storage warehouses at a few key locations throughout North America.

The primary difference between retailers and wholesalers is that

Which of the following is an example of a consumer making a purchase through a direct marketing arrangement?

Items such as snow skis, lawnmowers, and other highly seasonal items are often held in ________ warehouses during the months they are not in demand.

Discount stores, supermarkets, and department stores are all common types of

Tony brings together buyers and sellers of used heavy construction equipment, and helps them negotiate the terms of the sale. However, he never takes title to any of the equipment himself, nor does he provide any financing for the buyer. Tony is acting as a

One drawback of kiosks is that their high overhead costs result in low profit margins.

Most marketing intermediaries have survived in the past because consumers were unaware of how much these companies add to the cost of distributing goods.

Cesar claims he found a definite way to save money, "Buy direct from the manufacturer. Any time intermediaries get involved, you'll pay a higher price. After all, every intermediary involved in the marketing process must charge enough to earn a profit." What do you make of Cesar's claim?

A ________ offers a huge selection of one type of product (such as books, toys, or sporting goods) to dominate that category of goods.

The use of pipelines should decline in the future because this mode is suitable only for shipping petroleum.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Appendix: Working Within the Legal Environment

Appendix: Using Technology to Manage Information

Appendix: Managing Risk

Appendix: Managing Personal Finances

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