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Exam 15: Distributing Products

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Question 71

Multiple Choice

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

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Question 72

True/False

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Chris Cole is a salesperson for Green Scene Lawn Care products.Chris' 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.

A) True
B) False

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Question 73

True/False

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

Retailers who have stores at convenient locations are trying to add value by:

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

Words 4 Hire is a nationwide chain of stores that offers such a huge selection of paperback and hardback books at such competitive prices that small local bookstores have a hard time competing with them.Words 4 Hire is best classified as a discount store.

Unlike merchant wholesalers,___________ never actually own the goods they help to distribute.

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

An increase in energy prices would encourage shippers to rely more on rail transportation.

Water transportation is the least expensive way to send goods overseas.

Delacroix Shoes produces top-quality high-fashion shoes,designed for the person concerned about style.Delacroix gives only a few preferred retailers in a given market area the right to market its product.Delacroix Shoes uses:

___________ are merchant wholesalers who perform all of the distribution functions.

When firms manage the return of goods from consumers either because they are defective or for recycling purposes,they are involved in:

Limited-function wholesalers are a type of merchant wholesaler.

In order to succeed in today's tough economic times all retailers must compete with low prices.

Producers normally provide form utility,but retailers sometimes also provide this type of utility.

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

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:

Lazario Motor Car Company produces some of the most luxurious and expensive cars in the world.The company typically authorizes only a single dealership to sell its cars in certain major metropolitan areas.In less populous areas,Lazario authorizes a single dealer for an entire state or region.The manufacturer of Lazario automobiles is using a(n) ___________ distribution strategy for its product.

An effective channel of distribution does more than simply ensure that goods are transported efficiently from producer to buyer.