Question 1

When shipping large amounts of bulk products such as forest products, coal, sand, or rock over large distances, a company should choose large trucks because of their low cost per ton shipped.

Accepted Answer

A) True 
 B)False

Question 2

When determining the number of channel members to use at each level, three strategies are available: intensive, exclusive, and ________ distribution.

Accepted Answer

A)  multiple 
B)  selective 
C)  international 
D)  direct 
E)  extensive

Question 3

What types of products are selectively distributed?

Accepted Answer

The answer of What types of products are selectively distributed?...

Question 4

There will always be a need for channel intermediaries that physically handle the product.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is most likely intensively distributed?

Accepted Answer

A)  Olympus digital cameras 
B)  BMW automobiles 
C)  Diesel blue jeans 
D)  Coca-Cola beverages 
E)  Nike running shoes

Question 6

To balance inventory capabilities and production capacity constraints, some companies use a practice called ________, which involves the use of a consistent production schedule, both during and beyond times of peak demand.

Accepted Answer

A)  just in time (JIT) 
B)  level loading 
C)  stock outing 
D)  logistics management 
E)  enterprise resource planning (ERP)

Question 7

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

Accepted Answer

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 8

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

Accepted Answer

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

Question 9

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) ________.

Accepted Answer

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

Question 10

Compare and contrast the three distribution strategies, giving examples of products that might be distributed through each strategy.

Accepted Answer

The answer of Compare and contrast the three distribution strategies,...

Question 11

Selective distribution strategies are most suitable for convenience products.

Accepted Answer

A) True 
 B)False

Question 12

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 ________.

Accepted Answer

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

Question 13

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.

Accepted Answer

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

Question 14

Compare and contrast a conventional marketing system with a vertical marketing system (VMS).

Accepted Answer

The answer of Compare and contrast a conventional marketing system...

Question 15

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?

Accepted Answer

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

Question 16

In a conventional marketing system, no channel member has much control over the other members, and no formal means exists for assigning roles and resolving channel conflict.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  Walmart locating in several countries 
B)  J.C. Penney'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 18

Through the practice of insourcing, a company brings in an external company to run its ________.

Accepted Answer

A)  human resource management 
B)  nonessential operations 
C)  essential operations 
D)  value proposition 
E)  facilitating functions

Question 19

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

Accepted Answer

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

Question 20

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

Accepted Answer

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

Exam 11: Deliver the Goods: Determine the Distribution Strategy

When shipping large amounts of bulk products such as forest products, coal, sand, or rock over large distances, a company should choose large trucks because of their low cost per ton shipped.

When determining the number of channel members to use at each level, three strategies are available: intensive, exclusive, and ________ distribution.

What types of products are selectively distributed?

There will always be a need for channel intermediaries that physically handle the product.

Which of the following is most likely intensively distributed?

To balance inventory capabilities and production capacity constraints, some companies use a practice called ________, which involves the use of a consistent production schedule, both during and beyond times of peak demand.

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

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

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) ________.

Compare and contrast the three distribution strategies, giving examples of products that might be distributed through each strategy.

Selective distribution strategies are most suitable for convenience products.

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 ________.

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.

Compare and contrast a conventional marketing system with a vertical marketing system (VMS).

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?

In a conventional marketing system, no channel member has much control over the other members, and no formal means exists for assigning roles and resolving channel conflict.

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

Through the practice of insourcing, a company brings in an external company to run its ________.

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

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