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Exam 15: Distributing Products

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Question 21

True/False

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Retail organizations employ more than 11 million people in the U.S.

A) True
B) False

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Question 22

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

A) True
B) False

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Question 23

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__________ brings raw materials,packaging,other goods and services,and information from suppliers to producers.

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

Discount stores,supermarkets,and department stores are all common types of:

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.

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

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

Marketing intermediaries:

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

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

Sharp Focus Cameras is facing intense competitive pressure.Top marketing managers are looking for ways to cut costs.They are considering a plan to cut distribution costs by eliminating marketing intermediaries from the channel of distribution.If Sharp Focus carries out this plan,it is likely to find that:

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

Traditional retailers that have begun using the Internet 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.

Agents are marketing intermediaries who take title to the goods they distribute and provide credit to customers who need it.

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

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

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

Jen Carter is trying to find ways to improve her firm's movement of materials and goods from its warehouse to the factory floor.Jen is looking into ways of making her firm's __________ more efficient.

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.