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Exam 15: Distributing Products

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Question 91

Multiple Choice

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In a(n) ___________, independently owned and managed stores sign an agreement to use the same name, participate in chain promotions, and cooperate as a unified system.

A) administered distribution system
B) corporate distribution system
C) wholesaler-sponsored chain
D) cash-and-carry chain

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

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Question 92

Multiple Choice

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___________ would probably be distributed using an intensive strategy.

A) iPads
B) High-def television sets
C) Men's suits
D) Popular magazines

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

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Question 93

Essay

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What is a wholesaler? Describe the difference between merchant wholesalers and agents and brokers. Identify three types of limited-function wholesalers.

According to the Seeking Sustainability box, IKEA found that even though paper pallets can only be used once, they can help reduce shipping costs and are easier to recycle.

A freight forwarder breaks one large shipment into multiple small shipments so that it can be transported by trucks or aircraft with limited cargo capacities.

A category killer is an extremely successful product that kills the sales of other products in its category in a retail store.

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

Vending machines are most often used to sell:

Which of the following statements identifies a key advantage of direct marketing? Direct marketing:

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

Logistics is concerned:

Chris Cole is a salesperson for Green Scene Lawn Care products. Chris's job requires him to sell Green Scene products, but he is also expected to recruit more salespeople for the company. He will earn a commission on all of the sales earned by the salespeople he recruits. Green Scene is using a retail distribution strategy known as multilevel marketing.

Those organizations that assist in the movement of goods and services from producer to industrial and consumer users are known as:

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.

Marketing intermediaries:

Firms that rely on electronic retailing are almost guaranteed success because they give companies easy access to literally millions of consumers all over the world.

A large number of traditional retailers have developed online sites in recent years, giving customers a choice of shopping techniques.

Kidder Manufacturing wants to ship a large quantity of its goods across the country. They have contacted Wayback Shipping, Inc., to find out what the shipment would cost. Wayback has shown Kidder how it can arrange to use a combination of barges, trains, and trucks to complete the shipment at a low cost. Wayback's strategy is an example of:

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

The main difference between agents and brokers is that agents perform a wide array of marketing functions while brokers only negotiate exchanges between buyers and sellers.