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Taken together,all of the organizations that move goods from the sources of raw materials to ultimate consumers is known as a:


A) multifunction network.
B) supply chain.
C) critical distribution path.
D) marketing priority network.

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

Correct Answer

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A sales agent is an agent who represents the interests of the consumer in a particular territory when negotiating terms of purchases made directly from a producer.

A) True
B) False

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The primary difference between retailers and wholesalers is that:


A) retailers sell consumer goods,while wholesalers sell industrial goods.
B) retailers operate in local areas,while wholesalers operate over a wide geographic area.
C) retailers sell to final consumers,while wholesalers sell to other organizations,such as retailers or manufacturers.
D) retailers have sales of less than $100 million,while wholesalers have sales of $100 million or more.

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

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Electronic retailing is selling goods and services over the Internet to the final consumer.

A) True
B) False

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Companies who send salespeople to customers' homes or places of work are making use of __________ selling.


A) direct
B) point of contact
C) downline
D) nonretail

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

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___________ means selling goods and services to ultimate consumers over the Internet.


A) Electronic retailing
B) B2B distribution
C) E-selling
D) Intercommerce

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

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At Stockman's Butcher Shop the butchers will hand cut steaks to the thickness their customers specify and trim off the excess fat.This extra service provides ________ utility.


A) possession
B) form
C) secondary
D) alterational

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

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Services that specialize in intermodal shipping are known as intermodal marketing companies.

A) True
B) False

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__________ deals with moving finished products and information to business buyers and ultimate consumers.


A) Inbound logistics
B) Outbound logistics
C) Final stage logistics
D) Wholesale distribution

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

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Compared to railroads and trucks,the biggest advantage offered by air transport is that it is:


A) faster.
B) more dependable.
C) lower in cost.
D) able to reach more destinations.

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

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Lara and Caitlin developed a new jewelry design.They were fortunate to get the attention of a large online retailer who was willing to fund the production of the jewelry abroad,as long as the designers agreed to sell their design through its outlets for the first two years.The retailer was asking the designers to agree to _________________.


A) intensive distribution
B) exclusive distribution
C) multi-level distribution
D) selective distribution

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

Correct Answer

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Marcia Baker ships orchids and other perishable flowers from her greenhouses near San Francisco,California to florists thousands of miles away in cities such as New York,Boston,and Philadelphia.Since the flowers must reach the florists as quickly as possible,the best mode of transportation for Marcia to use would be:


A) railroads.
B) trucks.
C) air.
D) ships.

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

Correct Answer

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Items such as snow skis,lawnmowers,and other highly seasonal items are often held in ___________ warehouses during the months they are not in demand.


A) seasonal
B) distribution
C) set aside
D) storage

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

Correct Answer

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Hartselle Home Products,Inc. ,manufactures a variety of inexpensive household gadgets.The company has decided to cut costs by eliminating all of the marketing intermediaries who help distribute its products.Hartselle will be able to reduce its total marketing costs by eliminating the marketing functions these intermediaries perform.

A) True
B) False

Correct Answer

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Wholesalers may provide market information and business consulting services.

A) True
B) False

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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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Comstock Coal Distributors does not mine coal itself.In fact,the firm does not even store or handle coal.Instead,Comstock solicits orders for low sulfur coal from other firms,then purchases the required amount from suppliers and directs them to ship the coal to its customers.Comstock is a:


A) drop shipper.
B) resource delivery facilitator.
C) cash-and-carry wholesaler.
D) limited distribution broker.

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

Correct Answer

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Direct selling is a distribution strategy that makes extensive use of the Internet and telephone.

A) True
B) False

Correct Answer

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Which of the following activities would be most closely associated with inbound logistics?


A) Arranging equipment on the factory floor so that materials move smoothly and efficiently from one work station to the next
B) Evaluating various shipping methods to find the most efficient way to transport goods to the final customer
C) Establishing a program to encourage customers to return used products to the manufacturer so materials can be recycled
D) Working with suppliers to establish a more frequent delivery system that will enable the manufacturing firm to hold smaller inventories of parts and materials

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

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Barbara Dixon operates a small business out of her home.She makes a trip to a local Riteprice Office Supply about once a month to buy computer and office supplies for her business.The prices at the Riteprice are very low,but it does not offer credit or delivery services.Riteprice is a cash-and-carry wholesaler.

A) True
B) False

Correct Answer

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