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Exam 15: Distributing Products

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Question 21

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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

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

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Question 22

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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.

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

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Question 23

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Marcia Baker ships orchids and other perishable flowers from her greenhouses near San Francisco 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:

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

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

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

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

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

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

Small-Timers, Inc., is a small manufacturer of charm bracelets that include watches as well as keepsake items and trinkets. The company seldom has shipments large enough to be transported cost-efficiently by filling an entire truck or railcar. Small-timers could benefit by relying on a freight forwarder to help it distribute its goods.

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

Corinne is a marketing manager who specializes in logistical problems. In her position, Corrine 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.

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

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

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.

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

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

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

Henry Hart supplies shelves of inexpensive plastic toys to grocery stores, supermarkets, and drug stores. He keeps title to the goods until they are sold and then splits the profits with the retailer. Henry works as a drop shipper.

Which of the following assessments of electronic retailing is most accurate?