Nickels Test Bank Distributing Products Chapter 15

Understanding Business, 12e (Nickels)

Chapter 15 Distributing Products

1) Organizations that assist in moving goods and services from producers to business and consumer users are called supply-side transition specialists.

2) Agents and brokers and wholesalers are types of marketing intermediaries.

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

4) A channel of distribution consists of the marketing intermediaries who join together to transport and store goods in their path from producers to consumers.

5) Brokers are marketing intermediaries that take title to the goods they help distribute.

6) Retailers are marketing intermediaries who sell to ultimate consumers.

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

8) Agents are marketing intermediaries who do not take title to the goods they distribute and provide credit to customers who need it.

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

10) One way marketing intermediaries improve marketing efficiency is by reducing the number of exchange relationships necessary to move goods through the channel of distribution.

11) Some economists would say that intermediaries add costs to the channel of distribution and need to be eliminated.

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

13) The activities performed by most marketing intermediaries are not essential to the marketing process.

14) The best way to reduce the cost of goods is to eliminate marketing intermediaries from the distribution channel.

15) Marketing intermediaries have survived because they have been able to perform marketing functions more efficiently and effectively than a manufacturer or consumer could perform these functions.

16) The costs added by marketing intermediaries usually outweigh the value they create.

17) Most marketing intermediaries have survived in the past because consumers were unaware of how much these companies add to the cost of distributing goods.

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

19) Marketing intermediaries must charge a price for the functions they perform. Thus, a surefire way to reduce distribution costs is to eliminate marketing intermediaries from the channel of distribution.

20) Marketing costs make up less than 25 percent of the total cost of the goods consumers buy.

21) According to the Spotlight on Small Business box, thredUP founders discovered their first distribution system, very similar to eBay's, was the best suited for their business.

22) Brad Gordon, a real estate agent, brings together the buyers and sellers of houses as well as commercial property. Brad helps the parties negotiate the terms and conditions of real estate sales, but he does not take title to the property, provide credit, or assume any risks associated with the exchanges he helps negotiate. Because Brad provides only limited services, he is not a true marketing intermediary.

23) Groceries and More sells a wide range of foods and household supplies within a suburb of a large city. The store frequently advertises that its prices are much lower than the prices charged by larger supermarket chains in the area. This low-price approach means that Groceries and More is a classic example of a merchant wholesaler.

24) Although SellSmart brings together buyers and sellers and helps negotiate exchanges, it does not actually take title to any of the goods being traded. SellSmart would be classified as an agent or broker.

25) Currently, Spark Electrical sells directly to thousands of industrial customers. Spark could reduce the number of exchange relationships by including wholesalers in its channel of distribution.

26) Home Helpers, Inc. produces a variety of reasonably-priced household appliances. To cut costs, the company has decided to eliminate all of the marketing intermediaries who help distribute its products. Home Helpers will be able to reduce its total marketing costs by eliminating the marketing functions these intermediaries perform.

27) To marketers, the term utility refers to the value added to goods or services by organizations when they make the product more useful or accessible to consumers.

28) Marketers provide a total of four types of utility: primary, secondary, marginal, and total.

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

30) Marketing intermediaries concentrate on providing mainly form, time, and place utility, while producers focus on the provision of possession, information, and service utility.

31) Delivery, installation, and follow-up services are the most common ways that marketing intermediaries provide information utility.

32) One way that marketers can provide utility is by making sure the good is available at a location that is convenient for consumers.

33) Salespeople can be important providers of information utility.

34) Form utility has become the most important utility provided by retailers.

35) A key way for traditional retailers to compete with direct marketing is by providing outstanding service utility.

36) Marketers normally provide form, time, place, information, and service utility, but they are seldom involved in providing possession utility.

37) Providing buyers with credit terms such as "90 days same as cash" is a way marketing intermediaries can provide time utility to customers.

38) In today's competitive market environment, traditional retailers will need to put more emphasis on providing form and place utility, and less emphasis on service utility.

39) Once the final customer has taken title to a good, marketing intermediaries no longer are involved in providing utility to the customer.

40) Simon is a personal electronics salesperson for a major retail chain. When he makes recommendations to customers to help them select the product that will best meet their needs, Simon is providing information utility.

41) Devar was driving on Interstate 95 in eastern Florida when he noticed he was running low on gas. Devar was relieved when he found a gas station open at the next exit just 2 miles ahead. This is an example of the value place utility provides to a consumer.

42) Some marketing intermediaries make both wholesale and retail sales.

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

44) The sale of goods to a business purchasing the items for resale is a wholesale transaction.

45) A firm that makes wholesale sales cannot also legally make retail sales.

46) Merchant wholesalers do not take title to the goods they handle.

47) About 80 percent of all wholesalers are classified as merchant wholesalers.

48) The two main types of merchant wholesalers are storage wholesalers and distribution wholesalers.

49) Limited-function wholesalers are a type of merchant wholesaler.

50) Cash-and-carry wholesalers and drop shippers are both classified as limited-function wholesalers.

51) Rack jobbers furnish racks or shelves full of merchandise to retailers and keep title to these goods until they are sold.

52) Rack jobbers sell goods on consignment, splitting the profits from their sales with a retailer.

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

54) Drop shippers are wholesalers that stock heavy or bulky items and transport them to retail stores.

55) Drop shippers are limited function wholesalers that typically put together many small shipments to form a single larger shipment.

56) Cash-and-carry wholesalers are limited-function wholesalers that serve mostly smaller retailers with a limited assortment of products.

57) 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.

58) As long as they do not represent competing products, manufacturer's agents can represent more than one manufacturer in a given sales territory.

59) A key distinction between agents and brokers is that agents tend to maintain long-term relationships with the people they represent whereas brokers are hired on a temporary basis.

60) 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.

61) A full-service wholesaler will provide suppliers with market information.

62) Wholesalers may provide market information and business consulting services.

63) A broker can expect to earn a fixed amount of profit for her efforts regardless of the dollar value of the contract she negotiated.

64) Fernando and Mariana solicit orders for lumber from area wholesalers and retailers specializing in building supplies and arrange to have the orders shipped directly from nearby logging companies. Fernando and Mariana operate as drop shippers.

65) Seth supplies shelves of magazines to supermarkets and drug stores. He keeps title to the goods until they are sold and then splits the profits with the retailer. Seth is a drop shipper.

66) Keira owns and operates a home business. Once a month she heads to OfficePRO to buy office supplies for her business. The prices at the OfficePRO are very low, but it does not offer credit or delivery services. OfficePRO is a cash-and-carry wholesaler.

67) Phoebe helps small farmers negotiate sales to food processing companies. However, once she has helped negotiate the transaction, she does not maintain a long-term relationship with the farmers. Phoebe is an example of a sales agent in this market.

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

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

70) Department stores offer a wide variety of products that are sold in separate departments.

71) Warehouse clubs compete with enhanced service to customers and seldom try to compete on price.

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

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

74) Specialty stores use a wide variety of products in one product category as their key competitive tool.

75) Category killer stores tend to compete mainly on the basis of carrying a wide array of products, superior service, and low prices.

76) Warehouse clubs are usually smaller than supermarkets.

77) Discount stores and department stores sell different brands of products that are usually priced about the same.

78) Exclusive distribution is the use of only one retail outlet in a given geographic area.

79) Candy, gum, and popular magazines are usually distributed using a selective distribution strategy.

80) A distribution strategy that puts the product into as many retail outlets as possible is known as an intensive distributive strategy.

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

82) An advantage of a selective distribution strategy is that consumers are able to find a popular product at a wide variety of retailers.

83) Retailers that participate in an exclusive distribution strategy will have a strong incentive to carry a large inventory of the good and provide exceptional service to customers.

84) In order to succeed in today's market, all retailers must compete with low prices.

85) The main difference between selective distribution and exclusive distribution is the number and type of market segments the firm chooses. In a selective strategy, a variety of profitable niche markets are selected, while in an exclusive strategy one specific market segment is targeted, and all others are excluded.

86) Book Binders is a nationwide chain of stores that offers such a huge selection of books at such competitive prices that small, local bookstores struggle to compete with them. Book Binders is best classified as a discount store.

87) Cheapo Depot is a new chain of discount stores. A major part of Cheapo Depot's competitive strategy is likely to be based on keeping its prices lower than those of other types of retailers.

88) Soundwave Specialties is a manufacturer of high-quality speakers. The company sells its products through a few preferred retailers in any geographic area. Soundwave Specialties uses a selective distribution strategy.

89) The City Dispatch, a daily newspaper serving a city with a population of just over 200,000, is placed in vending machines throughout the city and surrounding suburbs. City Dispatch is also sold at most of the local supermarkets, convenience stores, bookstores, and pharmacies. The City Dispatch uses an intensive distribution strategy.

90) The Galleria Mall contains many types of shops, including six different jewelers; however, only one jeweler carries the very expensive TimeStamp brand of watch that appeals to customers who are looking for status in their jewelry. TimeStamp is practicing exclusive distribution by placing its brand in only one store in a given area.

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

92) Online retailing is selling goods and services to ultimate consumers online.

93) Some websites are trying to improve their service by providing assistance from a real person, especially through social media.

94) A large number of traditional retailers have developed online stores, giving customers a choice of shopping techniques.

95) Traditional retailers that have begun using online stores to supplement their physical stores are finding that the Internet not only provides a new way to sell goods, it also requires a new system to distribute goods.

96) Social commerce is a form of electronic commerce that involves social media.

97) Telemarketing is the sale of goods and services by telephone.

98) Vending machines are used primarily to sell goods where consumers have little interest in convenience.

99) Mall owners tend to like kiosks because they create a marketplace atmosphere.

100) One drawback of kiosks is that their high overhead costs result in low profit margins.

101) Direct selling is a distribution strategy that makes extensive use of websites and phone sales.

102) Because so many people work outside the home and aren't at home during the day, companies that use direct selling are sponsoring parties at workplaces to sell their products.

103) In multilevel marketing, salespeople not only sell the product, they also recruit other people to sell the product.

104) In multilevel marketing, upliners recruit downliners and receive a commission on the sales their downliners make.

105) Although there have been some unethical firms involved in multilevel marketing, this form of retailing remains quite successful for some.

106) Direct marketing involves having a salesperson visit the customer's home or place of business.

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

108) Telemarketing, catalog sales, and online shopping are all examples of direct marketing.

109) In the battle between online and traditional brick-and-mortar retailers, the online retailers seem to have all of the advantages needed to emerge as the clear winners.

110) Many firms that want to use an intensive distribution strategy would find vending machines an attractive method of selling their goods.

111) Direct selling has all but disappeared as a major form of nonstore retailing because the trend toward two-income households means fewer opportunities for selling in the home.

112) In multilevel marketing, salespeople have little incentive to recruit new salespeople, because the new salespeople may compete against them and reduce their income.

113) An important reason for the popularity of direct marketing is that many people enjoy developing a personal relationship with a salesperson that comes directly to their home or place or work.

114) Foot Friends, a high-quality socks and stockings company, makes sales by sending catalogs to customers and offering them a toll-free telephone number so that they can call in their orders 24-hours-a-day, any day of the year. Foot Friends uses telemarketing.

115) Brendan is a salesperson for Garden Gnomes Lawn Care products. His job requires him to sell Garden Gnomes' 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. Garden Gnomes is using a retail distribution strategy known as multilevel marketing.

116) Traditional retailers can stay competitive with online retailers by being part of a unified system of distribution.

117) There are four specific types of channel systems available to companies that tie firms together in a unified way.

118) In a corporate distribution system one firm owns all of the organizations in the distribution.

119) Corporate distribution systems consist of several independently owned intermediaries, all of them organized as multinational corporations.

120) A problem with the corporate distribution system is that the manufacturer has very little control over the operations of the retailers and other marketing intermediaries in the system.

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

122) One advantage of a franchise system of distribution is that it results in a consistent level of quality and service.

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

124) Wholesaler-sponsored chains consist of stores that are all owned by a single corporation.

125) In an administered distribution system, retail stores manage all of the marketing functions at the retail level.

126) The entire collection of organizations that move goods and services from the source of raw materials to the final consumer is referred to as the supply chain.

127) Because supply chains are so complex, firms have found it difficult to outsource supply chain management.

128) The process of managing the movement of raw materials, parts, work in progress, finished goods, and related information through all of the organizations involved in the supply chain in a timely manner is called multi-modal management.

129) Supply chain management manages the movement of relevant information as well as the movement of parts and finished goods through all organizations involved in the supply chain.

130) Supply chain management not only deals with the movement of materials, parts, and finished goods, it also manages the return of goods and recycling of materials when appropriate.

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

132) Playtime Toys, Inc. manufactures toys designed to inspire the imaginations of children. In order to control all of the marketing operations, Playtime owns all of the organizations in the channel of distribution for its toys, including the chain of Playtime retail stores. The approach taken by Playtime is known as an administered distribution system.

133) Though Hammer's Hardware stores are independently owned, operated, and managed, they have signed an agreement to participate in chain promotions, and cooperate as a unified system of stores. The Hammer's Hardware stores are using a distribution system known as a wholesaler-sponsored chain.

134) A greeting card company, Tiny Texts, has been approached by Novel Teas, a producer of herbal teas and exotic spices. Novel Teas wants to sell its products in the Tiny Text stores under an administered distribution system. If Tiny Texts accepts Novel Teas' proposal, it will perform many marketing services for the tea maker in exchange for a flat fee.

135) Cozy Corner Furniture obtains materials from several suppliers and uses these materials to produce its goods. It relies on several marketing intermediaries to help it distribute the furniture. Together, Cozy Corner, its suppliers, and the marketing intermediaries are all part of a supply chain.

136) As she works in the marketing department of a major manufacturing firm, Cassidy spends most of her time trying to coordinate the movement of materials, parts, finished goods, and information through all of the organizations involved in the distribution process. These activities suggest that Cassidy's job responsibilities focus on supply chain management.

137) Logistics involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption.

138) With the current emphasis on product development, pricing, branding, and promotion, the physical distribution of materials and goods is no longer a major concern of marketing.

139) Materials handling is that part of logistics that deals with moving goods within the warehouse, from the warehouse to the production floor, and to various work stations along the production process.

140) Inbound logistics is concerned with the flow of finished products from the manufacturer to the final consumer.

141) Inverted logistics is the term used for the activities involved in bringing products back to the producer due to defects or for recycling of materials.

142) Third-party logistics is the term used to describe the use of outside firms to help move goods from here to there.

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

144) The basic transportation service criteria are speed, cost, dependability, flexibility, frequency, and reach.

145) In the U.S. the largest percentage of goods (by volume) is shipped by truck.

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

147) Water transportation has declined to the point where it now accounts for a very small part of transporting goods.

148) Water transportation has benefits and drawbacks; for example, it is inexpensive but slow.

149) A value of shipping by truck is that trucks can deliver small shipments to remote locations.

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

151) Pipelines move liquid products very efficiently and can even move products like coal.

152) Railroads are an energy-efficient mode of transporting many types of goods.

153) Although air transport currently accounts for only a small percentage of all shipments, it has become a critical mode in many industries.

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

155) The use of multiple modes of transportation to complete a single long-distance movement of freight is known as multi-carrier shipping.

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

157) 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.

158) Some freight forwarders offer warehousing and customs assistance.

159) There are three major types of warehouses: centralized, dispersed, and mode-specific.

160) A distribution warehouse stores products for relatively long periods of time.

161) Seasonal goods are kept in storage warehouses.

162) Suppliers to large retailers like Target and Walmart may soon be required to use RFID tags when shipping products to these companies.

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

164) Freight forwarders are particularly useful to large firms who must ship very large quantities on short notice.

165) The use of pipelines should decline in the future because this mode is suitable only for shipping petroleum.

166) The main difference between storage warehouses and distribution warehouses is that storage warehouses are relatively small, specialized facilities used to store one particular type of good for short periods while distribution warehouses are large facilities used to store a wide variety of goods for longer periods of time.

167) Epic Electronics has had to shut down its manufacturing plant for several hours twice in the past week. Some of its key suppliers have been late with their shipments of materials and parts. These difficulties indicate that Epic has done a poor job in managing its inbound logistics.

168) Keegan, a distribution specialist, has been looking for ways to improve the flow of parts and materials from his company's warehouses to the production line, and the movement of work in process throughout the company's factories. These efforts suggest that Keegan's primary interest is in improving his company's inbound logistics.

169) Specializing in logistics, Miriam, a marketing manager, is likely to focus mainly on managing the flow of goods, and leave issues about how to manage the flow of information to managers in other areas of marketing.

170) 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.

171) Charmers is a small manufacturer of charm bracelets that include watches as well as other keepsake items. Rarely are Charmers' shipments large enough to be transported cost-efficiently by filling an entire truck or railcar. The company could benefit by relying on a freight forwarder to help it distribute its goods.

172) Marshall Manufacturing wants to ship a large quantity of its goods across the country. They have contacted Get Gone, Inc., to find out what the shipment would cost. Get Gone has shown Marshall how a combination of barges, trains, and trucks could be used to complete the shipment at low cost. Get Gone's strategy is an example of intermodal shipping.

173) Qwikship is a new delivery company that wants to compete against FedEx and UPS in the United States, Canada, and Mexico. One of the keys to Qwikship's success will be the ability to establish large storage warehouses at a few key locations throughout North America.

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

A) directed marketers.

B) distributive specialists.

C) marketing intermediaries.

D) supplementary marketers.

175) A(n) ________ consists of the marketing intermediaries that transport and store goods as they move through their path from producer to final user.

A) channel of distribution

B) marketing network

C) input-output matrix

D) mode of distribution

176) A ________ is a marketing intermediary that sells products to other organizations.

A) wholesaler

B) retailer

C) disintermediary

D) jobber

177) A ________ is a marketing intermediary that sells to ultimate consumers.

A) channel captain

B) wholesaler

C) secondary marketer

D) retailer

178) A(n) ________ is one type of marketing intermediary that brings together buyers and sellers and assists in negotiating an exchange, but does not take title to the goods.

A) agent

B) retailer

C) drop shipper

D) merchant wholesaler

179) Marketing intermediaries

A) are unlikely to survive in a competitive global economy.

B) have survived because they can often perform marketing functions faster and at lower cost than producers.

C) create value, but this value is seldom great enough to justify the added cost they charge for their services.

D) tend to increase the number of exchange relationships producers and consumers must deal with in order to buy and sell goods.

180) 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.

181) In the distribution process, the largest percentage of the retail price goes to

A) profits.

B) warehouse costs.

C) labor.

D) transportation.

182) Which of the following statements about channels of distribution is most accurate?

A) Channels of distribution always begin with a manufacturer and end with consumers, and always have one or more marketing intermediaries in between.

B) Channels of distribution always include retailers, but they may or may not also include wholesalers.

C) The fewer the marketing intermediaries in a channel of distribution, the more efficient the channel is likely to be.

D) Some channels of distribution include marketing intermediaries, while in others a manufacturer sells directly to the final consumer.

183) About ________ of the costs of things we buy are marketing costs that go to pay for distribution costs of intermediaries.

A) 25 percent

B) 30 percent

C) 75 percent

D) 90 percent

184) 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.

185) Which of the following statements about marketing intermediaries is true?

A) All channels of distribution must contain at least one marketing intermediary.

B) Marketing intermediaries and their functions can be eliminated.

C) Marketing intermediaries survive because they can perform marketing functions faster and more cheaply than producers and consumers.

D) The costs added to products by marketing intermediaries usually exceed the value they add to products.

186) 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.

187) Colin 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 Colin uses will be part of his

A) wheel of retailing.

B) market network.

C) channel of distribution.

D) franchise system.

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

A) 22.

B) 56.

C) 72.

D) 96.

189) Cesar claims he found a definite way to save money, "Buy direct from the manufacturer. Any time intermediaries get involved, you'll pay a higher price. After all, every intermediary involved in the marketing process must charge enough to earn a profit." What do you make of Cesar's claim?

A) It is entirely correct. Intermediaries must charge a high enough price for the activities they perform to earn a profit, so using intermediaries must result in a higher price.

B) It is impractical, because in most markets the distribution process is so complex that it is impossible to determine who the actual producer really is.

C) It is not valid in many cases. Intermediaries do add costs to products, but they also create value by performing marketing functions efficiently. In many cases the value they create more than offsets the costs they add.

D) It is never true. Markets that make use of intermediaries can always provide goods at lower cost than those that rely on direct distribution.

190) Tony brings together buyers and sellers of used heavy construction equipment, and helps them negotiate the terms of the sale. However, he never takes title to any of the equipment himself, nor does he provide any financing for the buyer. Tony is acting as a

A) channel captain.

B) broker.

C) wholesaler.

D) logistics specialist.

191) 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.

192) ________ 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

193) ________ utility is usually provided by producers rather than marketers.

A) Possession

B) Time

C) Place

D) Form

194) The types of utility commonly provided by marketing intermediaries include

A) product, price, place, and promotion.

B) time, place, possession, information, and service.

C) retailing, wholesaling, brokering, and financing.

D) cost, value, flexibility, use, and resale.

195) When marketing intermediaries perform the steps necessary to transfer ownership from one party to another, they are providing ________ utility.

A) marginal

B) title

C) possession

D) registration

196) Placing ads in newspapers and having knowledgeable salespeople to answer customers' questions are ways marketing intermediaries can provide

A) form utility.

B) possession utility.

C) time utility.

D) information utility.

197) One way a store selling HDTVs might add ________ utility is to provide convenient delivery and setup to customers.

A) possession

B) distributive

C) conditional

D) time

198) Marketing intermediaries add ________ utility to products by having them available when consumers want them.

A) time

B) allocative

C) response

D) form

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

A) Spatial

B) Location specific

C) Place

D) Geographic

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

A) using a horizontal distribution strategy.

B) using a broad resource allocation strategy.

C) providing place utility.

D) achieving market concentration.

201) One way traditional retailers have maintained customers in the face of increasing competition from online sellers and other direct markers is to place more emphasis on providing ________ utility.

A) psychographic

B) place

C) service

D) form

202) Marketing intermediaries can provide ________ utility by offering customers affordable credit, free delivery, and product guarantees.

A) possession

B) information

C) form

D) promotion

203) Stores that remain open 24 hours, seven days a week are providing ________ utility to their customers.

A) possession

B) time

C) service

D) schedule

204) Which of the following statements about service utility is most accurate? Service utility is

A) becoming less important to retailers in this age of self-service marketing.

B) the one type of utility that online firms provide more efficiently than traditional retailers.

C) more likely to be provided by wholesalers than by retailers.

D) becoming crucial to traditional retailers as they try to prevent their customers from defecting to firms using direct marketing.

205) According to the Connecting Through Social Media box, McDonalds's team of social media professionals used to field constant complaints about the lack of breakfast options on the all-day menu. Upon hearing of the large demand for all-day breakfast, McDonald changed its menu and added to its ________ utility.

A) time

B) possession

C) form

D) information

206) The Knot is an online company that helps people with the complex task of planning a wedding. Multiple vendors are recommended for things like flowers, caterers, wedding gowns, and more. Through The Knot, a couple can establish a website that acts as a registry. Once the couple is married, the website directs them to another site having to do with beginning married life. What type of utility or utilities is this site providing to its users?

A) form and service

B) service and time

C) service and information

D) form and information

207) Electronics Emporium, a chain of stores that specializes in devices and gadgets incorporating cutting-edge technologies, has over 150 stores in large cities throughout the Southeast and Midwest. Electronics Emporium picked the locations of its stores so that most customers living in upper middle class and wealthy neighborhoods can get to a location in under 15 minutes. Electronics Emporium is providing its customers with

A) form utility.

B) time utility.

C) place utility.

D) information utility.

208) Morgner Heating and Cooling offers customers who buy air conditioners and furnaces free delivery and low installation charges. The company also offers a free follow-up inspection of the new equipment one month after it is installed. These services are ways that Morgner provides its customers with ________ utility.

A) possession

B) time

C) marginal

D) situational

209) At Baumann's Fine Meats, 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

210) ________ wholesalers are independently owned and take title to the goods they handle.

A) Full service broker

B) Merchant

C) Agent

D) Primary

211) The two basic types of merchant wholesalers are

A) full-service wholesalers and limited-function wholesalers.

B) functional wholesalers and distributive wholesalers.

C) independent wholesalers and subsidiary wholesalers.

D) capital wholesalers and full-value wholesalers.

212) ________ are merchant wholesalers who perform all of the distribution functions.

A) Retailers

B) Intensive contact wholesalers

C) Total-capacity wholesalers

D) Full-service wholesalers

213) Marketing intermediaries that solicit orders from retailers or other wholesalers and have the products delivered directly from the producer to the buyer are known as

A) drop shippers.

B) truck jobbers.

C) channel captains.

D) merchandise agents.

214) ________ are limited-function wholesalers who furnish shelves full of merchandise to retailers who sell these items on consignment.

A) Cash-and-carry wholesalers

B) Rack jobbers

C) Merchandise forwarders

D) Consignment agents

215) Limited-function wholesalers that mainly serve small businesses by selling them a limited assortment of goods are known as

A) backdoor wholesalers.

B) consolidated wholesalers.

C) cash-and-carry wholesalers.

D) agency wholesalers.

216) Unlike merchant wholesalers, ________ never actually own the goods they help to distribute.

A) rack jobbers

B) retailers

C) cash-and-carry wholesalers

D) agents and brokers

217) ________ 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

218) The main way ________ differ from agents is that they do not develop long-term relationships with the buyers or sellers they assist.

A) brokers

B) rack jobbers

C) wholesalers

D) sales discounters

219) Which of the following activities would drop shippers be most likely to perform?

A) provide delivery services from a wholesaler's warehouse to a retailer's store

B) solicit orders from a retailer and arrange for the producer to make the deliveries

C) manage a large stock of items in a single product category, and make large volume shipments to other intermediaries using rail or truck

D) provide brokerage services by helping other wholesalers negotiate deals

220) Which of the following statements provides the most accurate distinction between an agent and a broker?

A) Agents represent final buyers while brokers represent marketing intermediaries.

B) Agents represent one manufacturer in a large sales area, while brokers represent several different manufacturers in a smaller area.

C) Agents develop a long-term relationship with the people they represent, while brokers are usually hired on a temporary basis.

D) Agents take title to the goods they help distribute, while brokers never assume ownership of the products they distribute.

221) OfficePRO sells a variety of supplies to small businesses and local offices. The fact that it sells only to other firms and not consumers indicates that OfficePRO engages only in

A) wholesale sales.

B) mass marketing.

C) pure retailing.

D) second-tier retailing.

222) Ariel stocks several local supermarkets and discount stores with Shimmer Cosmetics. At the stores, she sets up displays of products carrying the Shimmer brand name, and sells the goods on consignment, sharing any profits on the sales with the retailer. What is Ariel?

A) cash-and-carry wholesaler

B) truck jobber

C) broker

D) rack jobber

223) Miner's Coal Distributors does not mine coal itself, nor does it even store or handle the coal. Instead, Miner's 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. What is Miner's?

A) drop shipper

B) resource delivery facilitator

C) cash-and-carry wholesaler

D) limited distribution broker

224) Which of the following would be the best example of a broker?

A) Woody's Lumber Supply does not actually store, handle, or deliver lumber, but rather solicits orders from retail hardware and home improvement stores, takes title to the lumber, then arranges for it to be shipped directly from sawmills to the retail stores.

B) Dennis McGowan helps buyers and sellers of used heavy construction equipment negotiate the terms and conditions of their transactions, but does not actually take title to any of the equipment, nor does he develop long-term relationships with the buyers or sellers.

C) Chipper Sheid is not an employee of Tee Time Golf Clubs, but he solicits sales for their products at golf and sporting goods stores in a fairly large sales territory.

D) Hal Harrison is employed by a vacuum cleaner company, and goes door-to-door selling products produced by his company.

225) Discount stores, supermarkets, and department stores are all common types of

A) multilevel marketers.

B) full-service wholesalers.

C) retail stores.

D) category killers.

226) A(n) ________ sells general merchandise directly from the manufacturer at a discount; items may be discontinued or have certain product flaws.

A) department store

B) discount store

C) outlet store

D) specialty store

227) 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.

228) Retailers such as jewelry stores, shoe stores, and bicycle shops are

A) department stores.

B) discount stores.

C) warehouse clubs.

D) specialty stores.

229) A ________ offers a huge selection of one type of product (such as books, toys, or sporting goods) to dominate that category of goods.

A) department store

B) category killer store

C) saturation retailer

D) cash-and-carry retailer

230) A firm that wants to distribute its products as widely in a market as possible would use a(n) ________ distribution strategy.

A) extensive

B) shotgun

C) universal

D) intensive

231) 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

232) A(n) ________ distribution strategy uses only one retail outlet in a given geographic area.

A) selective

B) restrictive

C) exclusive

D) solitary

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

A) intensive

B) exclusive

C) selective

D) restrictive

234) ________ would probably be distributed using an intensive strategy.

A) Tablets

B) HDTVs

C) Men's suits

D) Magazines

235) Which of the following firms would be most likely to use a selective distribution strategy for its products?

A) newspaper publisher

B) maker of designer men's suits

C) super luxury car manufacturer

D) maker of snack foods such as potato chips and pretzels

236) Producers who use an exclusive distribution strategy for their products can expect retailers who carry the products to do which of the following?

A) carry a large inventory of their products

B) provide limited service and delivery for their products

C) sell their products at substantially discounted prices

D) pay attention to the multiple competing brands that they carry

237) After developing a new jewelry design, Christina and Julee were fortunate to get the attention of a large online retailer. The retailer 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 Christina and Julee to agree to

A) intensive distribution.

B) exclusive distribution.

C) multi-level distribution.

D) selective distribution.

238) Outdoor Adventures, Inc. operates a chain of very large stores that offer an incredible selection of sporting goods at very competitive prices. When Outdoor Adventures opens its first store in a new region, smaller sporting goods stores almost always experience a noticeable drop in sales. Outdoor Adventures stores can be classified as

A) warehouse clubs.

B) department stores.

C) category killers.

D) full-service wholesalers.

239) Having just finalized its new tablet design, Epic Electronics's marketing team plans to begin a rollout with ________ to only one traditional retailer for the first two months. This strategy will give consumers the perception of the product's stand-out personality and increase demand. Epic will continue with ________ for the next four months, where it plans to distribute to three other retailers, as well. For the last six months of the year, it will initiate distribution agreements with discount retailers and online retailers, and any other electronics store that wants to carry it. The marketing team is confident that the tablet will cycle through the first three stages of its product life cycle quickly. As the tablet reaches maturity during the second half of its first year in the market, it is good strategy to proceed with ________, as described above.

A) mono-level distribution; secondary level distribution; tertiary level distribution

B) intensive distribution; selective distribution; exclusive distribution

C) tertiary level distribution; secondary level distribution; mono-level distribution

D) exclusive distribution; selective distribution; intensive distribution

240) Zara is the publisher of "Luxe Ladies Magazine," which is a publication targeted to Millennial and Gen Z women. Because it is a small, new publication, some of the larger bookstores, convenience stores, and newsstands are not agreeing to distribute the magazine. Zara is very concerned by this trend, because she believes that her publication, like most magazines, needs ________ distribution in order to succeed.

A) selective

B) exclusive

C) intensive

D) exhaustive

241) Soles Shoes produces top-quality designer shoes, created for the person concerned about style. Soles gives only a few preferred retailers in a given market area the right to market its product. Soles Shoes uses

A) intensive distribution.

B) selective distribution.

C) exclusive distribution.

D) limited function distribution.

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

A) intensive

B) primary

C) extrinsic

D) exclusive

243) ________ means selling goods and services to ultimate consumers over the Internet.

A) Online retailing

B) B2B distribution

C) E-selling

D) Intercommerce

244) ________ is the sale of goods and services by telephone.

A) Multilevel marketing

B) Teleselling

C) Telemarketing

D) Direct marketing

245) Though vending machines can sell just about anything, they are most often used to sell

A) shopping goods.

B) convenience goods.

C) specialty goods.

D) inferior goods.

246) 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

247) 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

248) In ________, salespeople are independent contractors who not only sell the product, but also recruit additional salespeople.

A) telemarketing

B) two-stage marketing

C) hierarchical marketing

D) multilevel marketing

249) In multilevel marketing, independent contractors who sell a product can increase their own incomes by recruiting ________ to also sell the product.

A) commissionaires

B) front-men

C) merchant wholesalers

D) downliners

250) In the terminology of multilevel marketing, downliners

A) are the intermediaries who are responsible for handling the shipping of goods down the channel of distribution from the producer to the retailer.

B) are salespeople who have been recruited by other salespeople known as upliners to market the product.

C) sell through a telemarketing arrangement, while upliners use direct selling.

D) are experienced salespeople who are allowed to sell in more than one franchise area by the distributor.

251) Direct mail, telemarketing, and catalog sales are all common examples of

A) direct marketing.

B) downline selling.

C) multilevel marketing.

D) direct selling.

252) Any marketing method that directly links manufacturers or intermediaries with the ultimate consumer could be classified as

A) direct selling.

B) online marketing.

C) direct marketing.

D) kiosk-based.

253) The characteristic that all forms of direct marketing have in common is that they

A) are carried out by agents or brokers.

B) involve face-to-face or teleconferencing sessions with the customer.

C) include some type of activity that directly links manufacturers to the ultimate consumer.

D) make use of exclusive distribution systems with a network of traditional "bricks and mortar" stores.

254) In the terminology of multilevel marketing, which of the following statements about the relationship between upliners and downliners is most accurate?

A) In multilevel marketing, upliners are intermediaries who deal directly with final customers, while downliners are intermediaries who coordinate the transportation and storage services the upliners need to move the goods they sell through the channel of distribution.

B) In multilevel marketing, upliners are salespeople who act as independent contractors, earning commissions on their own sales and also on the sales of downliners, who are additional salespeople that they recruit.

C) In multilevel marketing, upliners sell through electronic retailing arrangements, while downliners use more traditional methods of retail selling.

D) In multilevel marketing, upliners use intensive distribution strategies to sell a good, while downliners use either a selective or exclusive distribution strategy to sell the same type of good.

255) Which of the following statements identifies a key advantage of direct marketing?

A) Direct marketing enables salespeople to close a non-refundable sale in the customer's home or place of work.

B) Direct marketing allows firms to expand their markets by selling to both ultimate consumers and other marketing intermediaries.

C) Direct marketing is popular with consumers because it is so convenient to shop from home or work.

D) Direct marketing creates a strong incentive for salespeople to recruit additional salespeople in order to gain the greatest possible market coverage.

256) Which of the following assessments of online retailing is most accurate?

A) Online retailing has two major advantages over traditional businesses: simplicity and very low start-up costs.

B) One of the reasons online retailing firms have been so successful has been their ability to deal with customer complaints and provide personalized services more efficiently than traditional firms.

C) Traditional retailers seldom find much success when they attempt to incorporate online selling into their businesses.

D) The line between online retailing and traditional retailing is blurring as traditional retailers go online.

257) Which of the following statements about kiosks and carts is the most accurate?

A) Kiosks and carts are popular with mall owners because their sales are exempt from sales taxes.

B) Mall owners often want kiosks and carts to be located along their walkways because they create a marketplace atmosphere.

C) Kiosks and carts have struggled in recent years because of their high overhead costs.

D) Most mall owners would like to eliminate kiosks and carts from their walkways, but are barred by law from doing so.

258) Athleisure, Inc. sells athletic gear by sending customers a catalog nine times a year. The company has no retail stores or website, but offers a toll-free order number that operates 24 hours a day, 365 days a year. Athleisure, Inc. sells using a technique known as

A) teletailing.

B) indirect marketing.

C) telemarketing.

D) multilevel marketing.

259) Which of the following is an example of a consumer making a purchase through a direct marketing arrangement?

A) Pete purchased a box of cereal at a local grocery store with a coupon on the box.

B) Pamela purchased a phone at a big-box retailer's special tech department.

C) Phoebe purchased a set of towels featured in a department store's lower level.

D) Patrick purchased a book on the history of the U.S. by sending in an order form attached to a pamphlet sent to the customer by the publisher.

260) In a(n) ________ distribution system all of the organizations in the channel of distribution are owned by one firm.

A) administered

B) contractual

C) supply-based

D) corporate

261) In a(n) ________ distribution system the producer manages all of the marketing functions at the retail level.

A) administered

B) contractual

C) conglomerate

D) master limited

262) Franchise systems are one type of ________ distribution system.

A) corporate

B) wholesale

C) contractual

D) administered

263) McDonald's, Planet Fitness, Baskin-Robbins, and Dunkin Donuts all make use of the ________ form of contractual distribution system.

A) wholesale-sponsored chain

B) franchise

C) retail cooperative

D) horizontally administered

264) 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

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

A) multifunction network.

B) supply chain.

C) critical distribution path.

D) marketing priority network.

266) ________ manages the movement of raw materials, parts, work in progress, finished goods, and related information throughout the supply chain, as well as managing the return of goods when necessary and the recycling of goods when appropriate.

A) Distribution planning

B) Multilevel marketing

C) Supply chain management

D) Distributional strategy

267) A common trait of corporate distribution systems, administered distribution systems, contractual distribution systems, and supply chains is that they all

A) are arrangements which seek to distribute goods more efficiently by eliminating most functions performed by marketing intermediaries.

B) seek to consolidate and control the distribution system by having one firm own all of the distribution functions.

C) attempt to improve the efficiency of distribution systems by linking the firms together in a formal relationship.

D) have been replaced by more efficient distribution systems relying heavily on online linkages.

268) One thing that franchise systems, wholesaler-sponsored chains, and retail cooperatives have in common is that they are all

A) distribution systems in which producers also act as intermediaries in the distribution process.

B) dependent on multilevel marketing strategies.

C) forms of distribution systems in which a single firm owns all of the organizations involved in distributing the product.

D) forms of contractual distribution systems.

269) In administered distribution systems, retailers

A) are reluctant to cooperate because they must perform many marketing functions for an uncertain payment.

B) receive a great deal of marketing help from producers.

C) are really subsidiaries of a manufacturer.

D) sign a contract agreeing to cooperate with wholesalers in the channel of distribution.

270) Which of the following statements about wholesaler-sponsored chains is most accurate?

A) In a wholesaler-sponsored chain, all stores are independently owned, but cooperate as a unified system of stores.

B) In a wholesaler-sponsored chain, all stores act independently except for an agreement to share the costs associated with distribution.

C) In a wholesaler-sponsored chain, all stores are owned by a single wholesaler, but operate under separate management.

D) In a wholesaler-sponsored chain, all stores share profits and losses according to a contractual arrangement.

271) Which of the following activities is most likely to be performed by someone responsible for supply chain management?

A) developing an effective advertising campaign for a particular line of products

B) establishing a budget for the firm's next fiscal year

C) finding ways to handle the return of goods and recycled materials

D) holding focus groups to learn what consumers want in new products

272) Sherwin Williams owns its manufacturing sites as well as over 3,000 retail stores in North America. Sherwin Williams exemplifies a

A) selective distribution system.

B) contractual distribution system.

C) administered distribution system.

D) corporate distribution system.

273) Eastern Spice Company was unable to get retailers to agree to a contractual arrangement to cooperate in the distribution process, so it took over all of the marketing functions for its products at grocery stores. The grocers like this arrangement because Eastern Spice provides outstanding marketing support for its products. Eastern Spice is using a(n) ________ system to distribute its products.

A) corporate distribution

B) franchise

C) retail cooperative distribution

D) administered distribution

274) Selena owns and operates a Global Goods grocery store. Although her store is independently owned and operated, she has signed an agreement with over seventy stores in the Midwest to use a common name, participate in chain promotions, and cooperate with other stores in the chain. What is Selena's store a part of?

A) administered chain

B) wholesaler-sponsored chain

C) corporate distribution system

D) horizontal distribution chain

275) Edwin, an employee at an auto assembly plant for a U.S. auto manufacturer, manages a group of employees who measure the quality of parts that arrive on rail cars from Mexico and other countries. As a receiver of auto parts from other suppliers, Edwin works in

A) third-party logistics.

B) supply chain management.

C) a corporate distribution system.

D) direct mail operations.

276) Anderson works in the marketing department at Marshall Manufacturing. Much of his job involves managing the movement of materials, parts, and information from suppliers to his firm. He tries to coordinate these flows with his firm's factory processes and assists with the efficient movement of finished goods to final consumers. These activities suggest that Anderson's job responsibilities focus on

A) merchant wholesaling.

B) multilevel marketing.

C) utility processing.

D) supply chain management.

277) ________ involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.

A) Export management

B) Multilevel marketing

C) Logistics

D) Shipping control management

278) ________ brings raw materials, packaging, other goods and services, and information from suppliers to producers.

A) Freight forwarding

B) Inbound logistics

C) Materials handling

D) Supply side logistics

279) ________ 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

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

A) materials handling.

B) inbound logistics.

C) factory processes.

D) reverse logistics.

281) ________ is the term used to describe the use of outside firms to help move their goods through the supply chain.

A) Third-party logistics

B) Multilevel distribution

C) External logistics

D) Mediated distribution

282) 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.

283) ________ put many small shipments together to create a single large shipment that can be transported more cost-efficiently to the final destination.

A) Containerized shippers

B) Freight consolidators

C) Mixed merchandisers

D) Freight forwarders

284) Pipelines are used primarily to transport

A) coal slurry.

B) hazardous wastes.

C) ammonia and acids.

D) water, petroleum, and petroleum products.

285) ________ shipping uses several different modes of transportation to complete a single long-distance movement of freight.

A) Intermodal

B) Multilevel

C) Flexmode

D) LAST (land-air-sea transport)

286) The most expensive mode of transportation is

A) railroad.

B) truck.

C) ship.

D) air.

287) The two basic types of warehouses are

A) public and private.

B) railside and portside.

C) storage and distribution.

D) seasonal and long term.

288) ________ warehouses are used to gather and redistribute products.

A) Storage

B) Distribution

C) Wholesale

D) Merchandising

289) ________ warehouses are used to hold products for a relatively long time.

A) Storage

B) Public

C) Seasonal

D) Distribution

290) Logistics is concerned

A) with flows of materials, finished products, and information.

B) only with the flow of information, not the flow of materials and products.

C) with the flow of materials to the manufacturer and with the flow of finished products to the consumer, but not with the flow of information.

D) only with the flow of finished goods from the producer to the final consumer.

291) 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.

292) Compared to rail transportation, one of the advantages of shipping by truck is that trucks

A) are more energy efficient.

B) can carry a greater volume.

C) can reach more destinations.

D) are less expensive.

293) 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.

294) 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

295) Businesses are using ________ and other ways to track goods and control the flow of goods from point of origin to point of consumption. "Tracking" is an important part of the process of managing the flow of goods, an activity that marketers call ________.

A) tag team identification (TTI); materials handling

B) radio frequency identification (RFID); intermediation

C) radio frequency identification (RFID); logistics

D) Reverse logistics; materials handling

296) 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

297) According to the box, Online Grocery Shopping, what is Amazon's greatest challenge when it comes to competing against companies offering curbside pickup for online grocery orders at Walmart and Kroger?

A) figuring out the most efficient ways to get groceries to customers' homes

B) figuring out which local grocery stores to buy AmazonFresh products from

C) figuring out where to set up curbside pickups at Amazon distribution centers

D) figuring out where to build Amazon grocery stores around the U.S.

298) Vandelay Industries has discovered a defect in one of its products that may result in injury to users. The company believes it must quickly develop and implement a recall program. It is likely that Vandelay soon will be placing a great deal of emphasis on

A) inbound logistics.

B) materials handling.

C) reverse logistics.

D) third-party logistics.

299) Annie, a marketing manager, is worried her firm is doing a poor job of managing the movement of finished products to the final consumer. If she is right, the company should work to improve its

A) outbound logistics.

B) administered support system.

C) materials handling.

D) coordination of its freight forwarders.

300) Jordan is working to find ways to better her company's movement of materials and goods from the warehouse to the factory floor. Jordan is looking into ways of making her firm's ________ more efficient.

A) internal logistics

B) outbound logistics

C) materials handling

D) factory processes

301) Jessi ships various perishable flowers from her greenhouses near St. Louis to florists thousands of miles away in cities such as San Antonio, Seattle, and Hartford. Since the flowers must reach the florists as quickly as possible, the best mode of transportation for Jessi to use would be

A) railroads.

B) trucks.

C) air.

D) ships.

302) Which type of wholesale organization would be most useful to a small manufacturer that has shipments that are too small to fill a truck or railcar?

A) rack jobbers

B) cash-and-carry wholesalers

C) piggy-backers

D) freight forwarders

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

A) online shipping.

B) intermodal shipping.

C) supply chain shipping.

D) multilevel distribution.

304) Explain why you agree or disagree with the following statement:

"Marketing intermediaries must charge a high enough price for the functions they perform to earn a profit. Therefore, the cost of distributing goods can almost always be reduced by eliminating marketing intermediaries from the channel of distribution."

305) What is utility? What are the major types of utility? Give an example of how marketing intermediaries can provide each type of utility.

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

307) Retail distribution strategies can take three different forms. Identify the three forms and give examples of products that would be marketed using each strategy.

308) Identify and describe the four basic types of distribution systems that are used to link firms in a formal relationship.

309) What is logistics? Describe the types of issues you might deal with if you specialized in logistics.

Mini-Case

"We've got a number of important issues to discuss today," began Dee Stribyute as she opened the weekly marketing manager's meeting for Lite Bite Foods. Lite Bite is a producer of low fat, low calorie snack foods. The other managers attending the meeting were her two top assistants, Mark Etter and Rhea Taylor.

"First, sales were hurt last year when we had to recall our almond chocolate bars because of concerns about contaminated ingredients. We've got our work cut out for us to recover from that setback. Many stores quit carrying our products, and even the ones that continued to do so put less emphasis on displaying and promoting them. We've got to get our products into as many stores as possible. Consumers shouldn't have to go all over town trying to find our snacks. We also need to make sure that our products are displayed and promoted in a way that attracts attention." Dee looked at her assistants, and saw that they seemed ready to make some proposals. However, she decided to get another important issue out on the table before stopping to discuss solutions, so she continued with her comments. "The other big concern is the cost of moving our goods. Distribution costs are a major part of the overall cost of selling our goods. What can we do to make the flow of products from our kitchens to our ultimate consumers more efficient?" Having laid out her concerns, Dee sat down at the head of the table, saying to her assistants, "O.K. guys, I'm ready for suggestions."

310) The need for Lite Bite to recall its almond chocolate bars suggests that it had to be very concerned with

A) outbound logistics.

B) reverse logistics.

C) administered distribution.

D) drop shipping.

311) Dee's comments about the need to get Lite Bite products into additional retail outlets suggests the company wants to use a(n)

A) intensive distribution strategy.

B) multilevel marketing strategy.

C) intermodal distribution network.

D) selective distribution strategy.

312) Dee's suggestion that the company needed more control over the way its products were displayed, priced, and promoted prompted a lot of discussion. Mark suggested that the company should manage these marketing functions for its products at the retail outlets. Mark appears to be suggesting that Lite Bite use a(n)

A) corporate distribution system.

B) franchise arrangement.

C) manufacturer-sponsored marketing chain.

D) administered distribution system.

313) 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.

314) After listening to all of the challenges and issues, Rhea said she wanted to propose a more sweeping change. "Mark has already suggested doing some of the retailer's job for them. I say go even further—let's just do away with all of the intermediaries. We can perform all of their functions ourselves," she said. She went on to explain that, "Since we won't have to deal with intermediaries, my suggestion is bound to simplify the distribution process and cut costs dramatically." What do you think of Rhea's suggestion?

A) It is truly radical because it calls for the elimination of the entire supply chain.

B) It is an example of an administered and contractual distribution system.

C) It should be viewed with some skepticism, because it ignores the fact that intermediaries usually create enough value to justify their inclusion in the distribution process.

D) It is not really very radical, since most manufacturing firms in recent years have used this approach to bring about dramatic reductions in their costs of distribution.