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Marshall Manufacturing has recently reached an agreement with an intermodal marketing company to significantly reduce the cost of shipping its finished goods to some major business customers. This agreement will help Marshall reduce the costs associated with outbound logistics.

A) True
B) False

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The part of logistics that is most concerned with the flow of goods as well as work in process within the manufacturing firm is


A) inbound logistics.
B) materials handling.
C) reverse logistics.
D) outbound logistics.

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

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

A) True
B) False

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Marketing intermediaries


A) add value that exceeds the cost of their services.
B) add cost that exceeds the value they provide.
C) increase the number of exchange relationships in the channel.
D) complicate the distribution process.

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

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For a supply chain to be efficient, all of the activities must be performed by organizations that are owned by the manufacturer.

A) True
B) False

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Currently, Lite Bite uses a lot of intermediaries to help distribute its products. Collectively, the organizations that participate in getting finished goods from Lite Bite to the ultimate consumers of its products are all part of the


A) marketing mix.
B) franchise system.
C) channel of distribution.
D) marketing network.

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

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Marketing managers at Focal Point Cameras are looking for ways to cut costs as the company is facing intense competitive pressure. They are considering a plan to cut distribution costs by eliminating marketing intermediaries from the channel of distribution. If Focal Point does this, it is likely to find that


A) most of the marketing functions performed by marketing intermediaries are helpful, but they aren't really necessary.
B) as the producer of the products, it will be able to perform the same functions more efficiently.
C) it will be unable to perform the functions as efficiently as they were performed by the marketing intermediaries.
D) telemarketing will become the only viable means of distributing its products.

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

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Discount stores owe much of their success to a competitive strategy based on


A) low prices.
B) extra service.
C) special credit arrangements.
D) a wide selection in a limited number of categories of goods.

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

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

A) True
B) False

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________ utility adds value to goods by having them available where people want them.


A) Spatial
B) Location specific
C) Place
D) Geographic

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

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A major advantage of direct marketing is that it is a very convenient way for consumers to shop.

A) True
B) False

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A(n) ________ distribution strategy distributes a product through only a preferred group of retailers in a given area.


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

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

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Mall owners like to have ________ located along the walkways of their malls, because they create a marketplace type of atmosphere.


A) cartels
B) storettes
C) kiosks
D) minimarts

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

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

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

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Retail organizations employ more than 40 million people in the U.S.

A) True
B) False

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Caitlin, owner of a card shop in a small shopping center, sells cards produced by a national company. Caitlin sells to final customers, so she is a


A) merchant wholesaler.
B) retailer.
C) rack jobber.
D) channel captain.

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

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Marketers claim that intermediaries add value to the channel of distribution that outweighs the cost.

A) True
B) False

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A retail sale is a sale to a consumer of products for his or her own use.

A) True
B) False

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Producers of shopping goods such as furniture, appliances, and clothing usually rely on an exclusive distribution strategy.

A) True
B) False

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