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Exam 15: Distributing Products

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Question 151

True/False

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Cash-and-carry wholesalers and drop shippers are both classified as limited-function wholesalers.

A) True
B) False

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Question 152

Multiple Choice

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Producers of snack foods such as candy bars or potato chips) are most likely to use an) _____________ distribution strategy for their products.

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

E) A) and D)
F) None of the above

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Question 153

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

Warehouse clubs compete with enhanced service to customers and seldom try to compete on price.

To marketers,the term utility refers to the value added to goods or services by organizations when they make the product more useful or accessible to consumers.

Jen Carter is trying to find ways to improve her firm's movement of materials and goods from its warehouse to the factory floor.Jen is looking into ways of making her firm's __________ more efficient.

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

Direct selling has all but disappeared as a major form of nonstore retailing because the trend toward two-income households means fewer opportunities for selling in the home.

Jessica Talmadge is a real estate agent who brings together the buyers and sellers of houses and commercial property.Jessica helps the parties negotiate the terms and conditions of real estate sales,but she does not take title to the property,provide credit,or assume any risks associated with the exchanges she helps negotiate.Because Jessica provides only limited services,she is not a true marketing intermediary.

Telemarketing,catalog sales,and online shopping are all examples of direct marketing.

Because so many people work outside the home and aren't at home during the day,companies that use direct selling are sponsoring parties at workplaces to sell their products.

In multilevel marketing "upliners" recruit "downliners" and receive a commission on the sales their downliners make.

__________ deals with moving finished products and information to business buyers and ultimate consumers.

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

Discount stores compete in the retail market mainly on the basis of price.

The main way __________ differ from agents is that they do not develop long-term relationships with the buyers or sellers they assist.

Mardelay Industries has discovered a defect in one of its products that may result in injury to users.The company believes it must quickly develop and implement a recall program.It is likely that Mardelay soon will be placing a great deal of emphasis on:

Specialty stores use a wide variety of products in one product category as their key competitive tool.

Rack jobbers furnish racks or shelves full of merchandise to retailers and keep title to these goods until they are sold.

In retail cooperatives,the members of the distribution system are bound to cooperate by a contractual agreement.