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The air freight industry is starting to focus on global distribution.

A) True
B) False

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Some manufacturers sell directly to consumers or businesses rather than relying on marketing intermediaries.

A) True
B) False

Correct Answer

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Wholesalers are marketing intermediaries who sell goods or services to ultimate consumers.

A) True
B) False

Correct Answer

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Discount stores,department stores,supermarkets,and specialty stores are all among the major types of retail stores.

A) True
B) False

Correct Answer

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Patrick Bolger is convinced that his product idea has tremendous potential.He has decided to produce the product himself,but plans to use other firms who specialize in storing and transporting to help him move the product along its path to the final consumer.These specialists Patrick uses will be part of his:


A) wheel of retailing.
B) market network.
C) channel of distribution.
D) franchise system.

E) A) and D)
F) A) and C)

Correct Answer

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In an) __________ distribution system the producer manages all of the marketing functions at the retail level.


A) administered
B) contractual
C) conglomerate
D) master limited

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

Correct Answer

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Loundes Enterprises loads its products into truck trailers,then loads the trailers onto ships to transport long distances.Once the ship reaches the port nearest the final destination,the trailers are unloaded and hauled to their final destination by truck.Loundes' practice of transporting truck trailers on ships is known as ____________ shipping.


A) waterwheel
B) whitecap
C) fishyback
D) flexed-modal

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

Correct Answer

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__________ is the value or want-satisfying ability that is added to products by organizations that make the product more useful or accessible to consumers.


A) Utility
B) Applicability
C) Functionality
D) User friendliness

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

Correct Answer

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Suppliers to large retailers like Target and Wal-Mart may soon be required to use RFID tags when shipping products to these companies.

A) True
B) False

Correct Answer

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Currently,in the United States the greatest volume of goods and services is shipped by:


A) trucks and vans.
B) pipelines.
C) rail.
D) water.

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

Correct Answer

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Pipelines are used primarily to transport water,petroleum,and petroleum products.

A) True
B) False

Correct Answer

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Logistics is concerned with the flow of information as well as with the flow of goods.

A) True
B) False

Correct Answer

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Suppose that eight bakeries each tried to sell their products directly to seven supermarkets.The total number of exchange relationships that would be established is:


A) 14.
B) 25.
C) 56.
D) 72.

E) C) and D)
F) All of the above

Correct Answer

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Exclusive distribution is the use of only one retail outlet in a given geographic are A.

A) True
B) False

Correct Answer

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Sav-U-More Grocery Store sells a wide range of foods and household supplies to households in Miller's Creek,a suburb of a large city.The store advertises that its prices are much lower than the prices charged by larger supermarket chains in the are A.This low price approach means that Sav-U-More is a classic example of a merchant wholesaler.

A) True
B) False

Correct Answer

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Bunny Babbett has just become an independent contractor selling the products of Tweethouse,a firm that makes elaborate and expensive) birdhouses and bird feeders.Bunny was recruited to the firm by Sylvester Katt,who already sells the Tweethouse products as an independent contractor.Sylvester told Bunny that both he and she would receive a commission on every item she sold.He also pointed out that she could boost her income significantly by recruiting more people to sell the products,because she would receive a commission on her recruits' sales.The arrangement described by Sylvester suggests that Tweethouse is using:


A) multilevel marketing.
B) hierarchical distribution.
C) line and staff selling.
D) the Lorenzo method.

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

Correct Answer

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Sportstors,Inc.operates a chain of very large stores that offer an incredible selection of sporting goods at very competitive prices.When Sportstors opens its first store in a geographic area,smaller sporting goods stores almost always experience a noticeable drop in sales.Sportstors stores can be classified as:


A) warehouse clubs.
B) department stores.
C) category killers.
D) full-service wholesalers.

E) A) and D)
F) A) and B)

Correct Answer

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The most likely type of utility that's provided by convenience stores is:


A) form.
B) place.
C) information.
D) service.

E) A) and B)
F) A) and C)

Correct Answer

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__________ may represent several producers in a specific territory,as long as they do not represent competing products.


A) Consignment brokers
B) Sales contractors
C) Manufacturer's agents
D) Freight forwarders

E) B) and D)
F) A) and B)

Correct Answer

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Manufacturers are usually able to perform marketing functions such as transporting,advertising,and storing,faster and more cheaply than marketing intermediaries.

A) True
B) False

Correct Answer

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