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Exam 15: Distributing Products

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Question 81

Multiple Choice

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

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

E) C) and D)
F) B) and D)

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Question 82

True/False

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Hi! Notes Card Shops has been approached by Novel Teas,a producer of herbal teas and exotic spices.Novel Teas wants to sell its products in the Hi! Notes stores under an administered distribution system.If Hi! Notes accepts Novel Teas proposal,it will perform many marketing services for the tea maker in exchange for a flat fee.

A) True
B) False

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Question 83

True/False

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Franchise systems,wholesaler-sponsored chains,and retail cooperatives are all forms of contractual distribution systems.

Traditional retailers that have begun using the Internet to supplement their physical stores are finding that the Internet not only provides a new way to sell goods,it also requires a new system to distribute goods.

When marketing intermediaries perform the steps necessary to transfer ownership from one party to another,they are providing _________ utility.

A distribution warehouse stores products for relatively long periods of time.

Explain why you agree or disagree with the following statement:

One thing that franchise systems,wholesaler-sponsored chains and retail cooperatives have in common is that they are all:

One way a store selling high-def televisions might add ________ utility is to provide convenient delivery and set up to customers.

Although drop shippers own merchandise they have shipped to buyers,they do not actually handle,stock,or deliver this merchandise themselves.

A key distinction between agents and brokers is that agents tend to maintain long-term relationships with the people they represent whereas brokers are hired on a temporary basis.

Some freight forwarders offer warehousing and customs assistance.

The types of utility commonly provided by marketing intermediaries include:

Tammy Knowles is the publisher of "New Woman Magazine," which is a publication targeted to Gen Y women.Because it is a small,new publication,some of the larger bookstores,convenience stores and newsstands are not agreeing to distribute the magazine.Tammy is very concerned by this trend,because she believes that her publication,like most magazines,needs ____________ distribution in order to succeed.

Marketing intermediaries concentrate on providing mainly form,time and place utility,while producers focus on the provision of possession,information,and service utility.

Millie Woods owns and operates a World of Food grocery store.Although her store is independently owned and operated,she has signed an agreement with over seventy stores in the Midwest to use a common name,participate in chain promotions,and cooperate with other stores in the chain.Millie's store is part of an) :

Dee's comments about the need to get Lite Bite products into additional retail outlets suggests the company wants to use an) :

Mall owners tend to like kiosks because they create a marketplace atmosphere.

Marketing intermediaries can provide _________ utility by offering customers affordable credit,free delivery,and product guarantees.

Pipelines move liquid products very efficiently and can even move products like coal.