Question 1

Agents and brokers and wholesalers are types of marketing intermediaries.

Accepted Answer

A) True 
 B)False

Question 2

Companies who send salespeople to customers' homes or places of work are making use of ________ selling.

Accepted Answer

A)  direct 
B)  point of contact 
C)  downline 
D)  nonretail 
A)  direct 
B)  point of contact 
C)  downline 
D)  nonretail

Question 3

At Baumann's Fine Meats, 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 
A)  possession 
B)  form 
C)  secondary 
D)  alterational

Question 4

Sherwin Williams owns its manufacturing sites as well as over 3,000 retail stores in North America. Sherwin Williams exemplifies a

Accepted Answer

A)  selective distribution system. 
B)  contractual distribution system. 
C)  administered distribution system. 
D)  corporate distribution system. 
A)  selective distribution system. 
B)  contractual distribution system. 
C)  administered distribution system. 
D)  corporate distribution system.

Question 5

Inverted logistics is the term used for the activities involved in bringing products back to the producer due to defects or for recycling of materials.

Accepted Answer

A) True 
 B)False

Question 6

Producers of snack foods (such as candy bars or potato chips) are most likely to use a(n) ________ distribution strategy for their products.

Accepted Answer

A)  intensive 
B)  exclusive 
C)  selective 
D)  restrictive 
A)  intensive 
B)  exclusive 
C)  selective 
D)  restrictive

Question 7

Which of the following statements provides the most accurate distinction between an agent and a broker?

Accepted Answer

A)  Agents represent final buyers while brokers represent marketing intermediaries. 
B)  Agents represent one manufacturer in a large sales area, while brokers represent several different manufacturers in a smaller area. 
C)  Agents develop a long-term relationship with the people they represent, while brokers are usually hired on a temporary basis. 
D)  Agents take title to the goods they help distribute, while brokers never assume ownership of the products they distribute. 
A)  Agents represent final buyers while brokers represent marketing intermediaries. 
B)  Agents represent one manufacturer in a large sales area, while brokers represent several different manufacturers in a smaller area. 
C)  Agents develop a long-term relationship with the people they represent, while brokers are usually hired on a temporary basis. 
D)  Agents take title to the goods they help distribute, while brokers never assume ownership of the products they distribute.

Question 8

________ are limited-function wholesalers who furnish shelves full of merchandise to retailers who sell these items on consignment.

Accepted Answer

A)  Cash-and-carry wholesalers 
B)  Rack jobbers 
C)  Merchandise forwarders 
D)  Consignment agents 
A)  Cash-and-carry wholesalers 
B)  Rack jobbers 
C)  Merchandise forwarders 
D)  Consignment agents

Question 9

Home Helpers, Inc. produces a variety of reasonably-priced household appliances. To cut costs, the company has decided to eliminate all of the marketing intermediaries who help distribute its products. Home Helpers will be able to reduce its total marketing costs by eliminating the marketing functions these intermediaries perform.

Accepted Answer

A) True 
 B)False

Question 10

A broker can expect to earn a fixed amount of profit for her efforts regardless of the dollar value of the contract she negotiated.

Accepted Answer

A) True 
 B)False

Question 11

Water transportation is the least expensive way to send goods overseas.

Accepted Answer

A) True 
 B)False

Question 12

Unlike merchant wholesalers, ________ never actually own the goods they help to distribute.

Accepted Answer

A)  rack jobbers 
B)  retailers 
C)  cash-and-carry wholesalers 
D)  agents and brokers 
A)  rack jobbers 
B)  retailers 
C)  cash-and-carry wholesalers 
D)  agents and brokers

Question 13

In the terminology of multilevel marketing, which of the following statements about the relationship between upliners and downliners is most accurate?

Accepted Answer

A)  In multilevel marketing, upliners are intermediaries who deal directly with final customers, while downliners are intermediaries who coordinate the transportation and storage services the upliners need to move the goods they sell through the channel of distribution. 
B)  In multilevel marketing, upliners are salespeople who act as independent contractors, earning commissions on their own sales and also on the sales of downliners, who are additional salespeople that they recruit. 
C)  In multilevel marketing, upliners sell through electronic retailing arrangements, while downliners use more traditional methods of retail selling. 
D)  In multilevel marketing, upliners use intensive distribution strategies to sell a good, while downliners use either a selective or exclusive distribution strategy to sell the same type of good. 
A)  In multilevel marketing, upliners are intermediaries who deal directly with final customers, while downliners are intermediaries who coordinate the transportation and storage services the upliners need to move the goods they sell through the channel of distribution. 
B)  In multilevel marketing, upliners are salespeople who act as independent contractors, earning commissions on their own sales and also on the sales of downliners, who are additional salespeople that they recruit. 
C)  In multilevel marketing, upliners sell through electronic retailing arrangements, while downliners use more traditional methods of retail selling. 
D)  In multilevel marketing, upliners use intensive distribution strategies to sell a good, while downliners use either a selective or exclusive distribution strategy to sell the same type of good.

Question 14

________ wholesalers are independently owned and take title to the goods they handle.

Accepted Answer

A)  Full service broker 
B)  Merchant 
C)  Agent 
D)  Primary 
A)  Full service broker 
B)  Merchant 
C)  Agent 
D)  Primary

Question 15

About ________ of the costs of things we buy are marketing costs that go to pay for distribution costs of intermediaries.

Accepted Answer

A)  25 percent 
B)  30 percent 
C)  75 percent 
D)  90 percent 
A)  25 percent 
B)  30 percent 
C)  75 percent 
D)  90 percent

Question 16

Which of the following activities is most likely to be performed by someone responsible for supply chain management?

Accepted Answer

A)  developing an effective advertising campaign for a particular line of products 
B)  establishing a budget for the firm's next fiscal year 
C)  finding ways to handle the return of goods and recycled materials 
D)  holding focus groups to learn what consumers want in new products 
A)  developing an effective advertising campaign for a particular line of products 
B)  establishing a budget for the firm's next fiscal year 
C)  finding ways to handle the return of goods and recycled materials 
D)  holding focus groups to learn what consumers want in new products

Question 17

The Galleria Mall contains many types of shops, including six different jewelers; however, only one jeweler carries the very expensive TimeStamp brand of watch that appeals to customers who are looking for status in their jewelry. TimeStamp is practicing exclusive distribution by placing its brand in only one store in a given area.

Accepted Answer

A) True 
 B)False

Question 18

Stores that remain open 24 hours, seven days a week are providing ________ utility to their customers.

Accepted Answer

A)  possession 
B)  time 
C)  service 
D)  schedule 
A)  possession 
B)  time 
C)  service 
D)  schedule

Question 19

McDonald's, Planet Fitness, Baskin-Robbins, and Dunkin Donuts all make use of the ________ form of contractual distribution system.

Accepted Answer

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

Question 20

Compared to rail transportation, one of the advantages of shipping by truck is that trucks

Accepted Answer

A)  are more energy efficient. 
B)  can carry a greater volume. 
C)  can reach more destinations. 
D)  are less expensive. 
A)  are more energy efficient. 
B)  can carry a greater volume. 
C)  can reach more destinations. 
D)  are less expensive.

Exam 15: Distributing Products

Agents and brokers and wholesalers are types of marketing intermediaries.

Companies who send salespeople to customers' homes or places of work are making use of ________ selling.

At Baumann's Fine Meats, the butchers will hand cut steaks to the thickness their customers specify and trim off the excess fat. This extra service provides ________ utility.

Sherwin Williams owns its manufacturing sites as well as over 3,000 retail stores in North America. Sherwin Williams exemplifies a

Inverted logistics is the term used for the activities involved in bringing products back to the producer due to defects or for recycling of materials.

Producers of snack foods (such as candy bars or potato chips) are most likely to use a(n) ________ distribution strategy for their products.

Which of the following statements provides the most accurate distinction between an agent and a broker?

________ are limited-function wholesalers who furnish shelves full of merchandise to retailers who sell these items on consignment.

A broker can expect to earn a fixed amount of profit for her efforts regardless of the dollar value of the contract she negotiated.

Water transportation is the least expensive way to send goods overseas.

Unlike merchant wholesalers, ________ never actually own the goods they help to distribute.

In the terminology of multilevel marketing, which of the following statements about the relationship between upliners and downliners is most accurate?

________ wholesalers are independently owned and take title to the goods they handle.

About ________ of the costs of things we buy are marketing costs that go to pay for distribution costs of intermediaries.

Which of the following activities is most likely to be performed by someone responsible for supply chain management?

Stores that remain open 24 hours, seven days a week are providing ________ utility to their customers.

McDonald's, Planet Fitness, Baskin-Robbins, and Dunkin Donuts all make use of the ________ form of contractual distribution system.

Compared to rail transportation, one of the advantages of shipping by truck is that trucks

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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