Question 1

Order processing involves preparing orders for shipment and receiving orders when shipments arrive.

Accepted Answer

A) True 
 B)False

Question 2

Merchant wholesalers differ from brokers in that merchant wholesalers ________.

Accepted Answer

A)  are generally paid a commission for arranging sales 
B)  never actually own the products they handle 
C)  take legal title to goods they distribute 
D)  sell various noncompeting products to customers in a specific region 
E)  offer a limited range of convenience goods, long service hours, and quick checkouts 
A)  are generally paid a commission for arranging sales 
B)  never actually own the products they handle 
C)  take legal title to goods they distribute 
D)  sell various noncompeting products to customers in a specific region 
E)  offer a limited range of convenience goods, long service hours, and quick checkouts

Question 3

Weaver & Sharpe,Inc.,a firm that manufactures home and kitchen appliances,uses an intensive distribution strategy.However,the firm finds that the retailers in the same marketing area compete with each other for greater market share,which negatively affects the sale of Weaver & Sharpe products.Which of the following can help Weaver & Sharpe,Inc.to resolve the problem of channel conflict?

Accepted Answer

A)  decentralization 
B)  disintermediation 
C)  centralization 
D)  diversification 
E)  product development 
A)  decentralization 
B)  disintermediation 
C)  centralization 
D)  diversification 
E)  product development

Question 4

Exclusive distribution differs from intensive distribution in that exclusive distribution ________.

Accepted Answer

A)  involves offering products in a limited number of outlets in each market area 
B)  requires wholesalers and retailers of many types 
C)  refer to producers who sell directly to customers 
D)  tries to place a product in as many outlets as possible 
E)  offers products in only one outlet in each market area 
A)  involves offering products in a limited number of outlets in each market area 
B)  requires wholesalers and retailers of many types 
C)  refer to producers who sell directly to customers 
D)  tries to place a product in as many outlets as possible 
E)  offers products in only one outlet in each market area

Question 5

Consumers who practice showrooming visit full-service retailers to view products and talk to sales personnel,but then they buy at lower prices from discounters or online stores.

Accepted Answer

A) True 
 B)False

Question 6

Intensive distribution differs from selective distribution in that intensive distribution ________.

Accepted Answer

A)  offers products in only one outlet in each market area 
B)  tries to place a product in as many outlets as possible 
C)  refers to producers that sell directly to consumers 
D)  involves selling through a limited number of outlets 
E)  involves retailers that give the product adequate sales and service support 
A)  offers products in only one outlet in each market area 
B)  tries to place a product in as many outlets as possible 
C)  refers to producers that sell directly to consumers 
D)  involves selling through a limited number of outlets 
E)  involves retailers that give the product adequate sales and service support

Question 7

Natural resources such as lumber,grain and coal are usually marketed through ________ who take ownership but not physical possession of the goods.

Accepted Answer

A)  manufacturers' representatives 
B)  brokers 
C)  rack jobbers 
D)  drop shippers 
E)  agents 
A)  manufacturers' representatives 
B)  brokers 
C)  rack jobbers 
D)  drop shippers 
E)  agents

Question 8

What is disintermediation? What are the similarities and differences between disintermediation and unbundling of services?

Accepted Answer

The threat of disintermediation and the

Question 9

________ refers to a type of specialty store that focuses on specific products on a massive scale and dominates retail sales in respective products categories.

Accepted Answer

A)  Warehouse club 
B)  Department store 
C)  Category killer 
D)  Off-price store 
E)  Hypermarket 
A)  Warehouse club 
B)  Department store 
C)  Category killer 
D)  Off-price store 
E)  Hypermarket

Question 10

Which of the following is a defining characteristic of manufacturers' representatives?

Accepted Answer

A)  They take ownership, but not physical possession, of the goods they handle. 
B)  They sell various noncompeting products to customers in a specific region. 
C)  They set up displays in retail outlets, stock inventory, and perform other services such as marking prices on merchandise. 
D)  They sort, standardize, and divide bulk quantities into smaller packages. 
E)  They complete or customize solutions for customers. 
A)  They take ownership, but not physical possession, of the goods they handle. 
B)  They sell various noncompeting products to customers in a specific region. 
C)  They set up displays in retail outlets, stock inventory, and perform other services such as marking prices on merchandise. 
D)  They sort, standardize, and divide bulk quantities into smaller packages. 
E)  They complete or customize solutions for customers.

Question 11

The ________ is a combination of intermediaries and channels that producers use to reach its target customers.

Accepted Answer

A)  marketing mix 
B)  trading channel 
C)  distribution mix 
D)  wheel of retailing 
E)  market segmentation 
A)  marketing mix 
B)  trading channel 
C)  distribution mix 
D)  wheel of retailing 
E)  market segmentation

Question 12

Retailers differ from wholesalers in that retailers ________.

Accepted Answer

A)  sell products to small-business owners 
B)  sell products to wholesalers, government agencies, and educational institutions 
C)  primarily sell products to consumers for personal use 
D)  receive bulk shipments from producers 
E)  create possession utility 
A)  sell products to small-business owners 
B)  sell products to wholesalers, government agencies, and educational institutions 
C)  primarily sell products to consumers for personal use 
D)  receive bulk shipments from producers 
E)  create possession utility

Question 13

Which of the following statements is TRUE about physical distribution and logistics?

Accepted Answer

A)  Physical distribution refers to the planning, movement, and flow of goods and related information throughout the supply chain. 
B)  Forecasting includes a number of activities, such as recording the sale, making the appropriate accounting entries, and billing the customer. 
C)  Containerized shipping restricts flexibility in transportation. 
D)  Air transport tends to be the cheapest method of transportation. 
E)  In a typical distribution center, goods produced at a variety of locations are collected, sorted, coded, and redistributed to fill customer orders. 
A)  Physical distribution refers to the planning, movement, and flow of goods and related information throughout the supply chain. 
B)  Forecasting includes a number of activities, such as recording the sale, making the appropriate accounting entries, and billing the customer. 
C)  Containerized shipping restricts flexibility in transportation. 
D)  Air transport tends to be the cheapest method of transportation. 
E)  In a typical distribution center, goods produced at a variety of locations are collected, sorted, coded, and redistributed to fill customer orders.

Question 14

Sam's Club sells sports apparel to individual consumers for their personal use and to small businesses that resell those goods to consumers.Therefore,Sam's Club functions as both a retailer and a wholesaler.

Accepted Answer

A) True 
 B)False

Question 15

Compare and contrast order processing with warehousing.

Accepted Answer

Order processing involves preparing orde

Question 16

________ refers to a market coverage strategy that tries to place a product in as many outlets as possible.

Accepted Answer

A)  Intensive distribution 
B)  Selective distribution 
C)  Exclusive distribution 
D)  Disintermediation 
E)  Strategic sourcing 
A)  Intensive distribution 
B)  Selective distribution 
C)  Exclusive distribution 
D)  Disintermediation 
E)  Strategic sourcing

Question 17

________ are full-service merchant wholesalers that set up displays in retail outlets,stock inventory,and perform other services such as marking prices on merchandise.

Accepted Answer

A)  Rack jobbers 
B)  Agents 
C)  Brokers 
D)  System integrators 
E)  Value-added resellers 
A)  Rack jobbers 
B)  Agents 
C)  Brokers 
D)  System integrators 
E)  Value-added resellers

Question 18

What are slotting allowances?

Accepted Answer

In some industries,channel capacity is a

Question 19

All activities required to move products from producer to consumer comprise the logistics function.

Accepted Answer

A) True 
 B)False

Question 20

M&K Wholesalers,owned by Jonathan McCloud,sells rough lumber to furniture manufacturers.M&K Wholesalers take ownership,but not physical possession,of the goods they handle.The firm does not keep goods in stock,but instead transfers customer orders and shipment details to American Timber and Lumber Inc.,a producer and manufacturer of quality hardwood lumber.M&K Wholesalers can be classified as ________.

Accepted Answer

A)  brokers 
B)  drop shippers 
C)  agents 
D)  value-added resellers 
E)  manufacturers representatives 
A)  brokers 
B)  drop shippers 
C)  agents 
D)  value-added resellers 
E)  manufacturers representatives

Order processing involves preparing orders for shipment and receiving orders when shipments arrive.

Merchant wholesalers differ from brokers in that merchant wholesalers ________.

Exclusive distribution differs from intensive distribution in that exclusive distribution ________.

Consumers who practice showrooming visit full-service retailers to view products and talk to sales personnel,but then they buy at lower prices from discounters or online stores.

Intensive distribution differs from selective distribution in that intensive distribution ________.

Natural resources such as lumber,grain and coal are usually marketed through ________ who take ownership but not physical possession of the goods.

What is disintermediation? What are the similarities and differences between disintermediation and unbundling of services?

________ refers to a type of specialty store that focuses on specific products on a massive scale and dominates retail sales in respective products categories.

Which of the following is a defining characteristic of manufacturers' representatives?

The ________ is a combination of intermediaries and channels that producers use to reach its target customers.

Retailers differ from wholesalers in that retailers ________.

Which of the following statements is TRUE about physical distribution and logistics?

Sam's Club sells sports apparel to individual consumers for their personal use and to small businesses that resell those goods to consumers.Therefore,Sam's Club functions as both a retailer and a wholesaler.

Compare and contrast order processing with warehousing.

________ refers to a market coverage strategy that tries to place a product in as many outlets as possible.

________ are full-service merchant wholesalers that set up displays in retail outlets,stock inventory,and perform other services such as marking prices on merchandise.

What are slotting allowances?

All activities required to move products from producer to consumer comprise the logistics function.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters

Exam 15: Distribution and Marketing Logistics

Order processing involves preparing orders for shipment and receiving orders when shipments arrive.

Merchant wholesalers differ from brokers in that merchant wholesalers ________.

Exclusive distribution differs from intensive distribution in that exclusive distribution ________.

Consumers who practice showrooming visit full-service retailers to view products and talk to sales personnel,but then they buy at lower prices from discounters or online stores.

Intensive distribution differs from selective distribution in that intensive distribution ________.

Natural resources such as lumber,grain and coal are usually marketed through ________ who take ownership but not physical possession of the goods.

What is disintermediation? What are the similarities and differences between disintermediation and unbundling of services?

________ refers to a type of specialty store that focuses on specific products on a massive scale and dominates retail sales in respective products categories.

Which of the following is a defining characteristic of manufacturers' representatives?

The ________ is a combination of intermediaries and channels that producers use to reach its target customers.

Retailers differ from wholesalers in that retailers ________.

Which of the following statements is TRUE about physical distribution and logistics?

Sam's Club sells sports apparel to individual consumers for their personal use and to small businesses that resell those goods to consumers.Therefore,Sam's Club functions as both a retailer and a wholesaler.

Compare and contrast order processing with warehousing.

________ refers to a market coverage strategy that tries to place a product in as many outlets as possible.

________ are full-service merchant wholesalers that set up displays in retail outlets,stock inventory,and perform other services such as marking prices on merchandise.

What are slotting allowances?

All activities required to move products from producer to consumer comprise the logistics function.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters