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

A) True
B) False

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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

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

Correct Answer

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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) A) and B)

Correct Answer

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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.

A) True
B) False

Correct Answer

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

A) True
B) False

Correct Answer

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

A) True
B) False

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

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

Correct Answer

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

A) True
B) False

Correct Answer

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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.

A) True
B) False

Correct Answer

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

A) True
B) False

Correct Answer

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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.

A) True
B) False

Correct Answer

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

A) True
B) False

Correct Answer

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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

Correct Answer

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________ 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)

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

Correct Answer

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

A) True
B) False

Correct Answer

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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.

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

Correct Answer

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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.

A) True
B) False

Correct Answer

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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.

A) True
B) False

Correct Answer

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


A) possession
B) information
C) form
D) promotion

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

Correct Answer

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