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Exam 15: Distributing Products

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Question 21

Multiple Choice

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____________ wholesalers are independently owned and take title to the goods they handle.

A) Full service broker
B) Merchant
C) Agent
D) Primary

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

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Question 22

Multiple Choice

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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

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

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Question 23

Multiple Choice

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

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.

Lazee Ladd 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,Lazee Ladd,its suppliers,and the marketing intermediaries are all part of a supply chain.

An) __________ sells general merchandise directly from the manufacturer at a discount;items may be discontinued or have certain product flaws.

Retailers are marketing intermediaries who sell to ultimate consumers.

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

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

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.

Soundworthy Stereo is a producer of high quality speakers and stereo components.The company sells its products through a few preferred retailers in any geographic are A.Soundworthy uses a selective distribution strategy.

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

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

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

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

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.

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

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

Marketing manager Connie Smythe is concerned that her firm is doing a poor job of managing the movement of finished products to the final consumer.If Connie is right,her firm should work to improve its:

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