1)Which of the following firms would be most likely to use a selective distribution strategy for its products?
Newspaper publisher
Maker of name brand men's suits
Super luxury car manufacturer
Maker of snack foods such as potato chips and pretzels
2)Which of the following activities is most likely to be performed by someone responsible for supply chain management?
Developing an effective advertising campaign for a particular line of products
Establishing a budget for the firm's next fiscal year
Finding ways to handle the return of goods and recycled materials
Holding focus groups to learn what consumers want in new products
3)Producers who use an exclusive distribution strategy for their products can expect retailers who carry the products to do which of the following?
Carry a large inventory of their products
Provide limited service and delivery for their products
Sell their products at substantially discounted prices
Pay attention to the multiple competing brands that they carry
4)Which of the following activities would a drop shipper be most likely to perform?
Provide delivery services from a wholesaler's warehouse to a retailer's store
Solicit orders from a retailer and arrange for the producer to make the deliveries
Manage a large stock of items in a single product category, and make large volume shipments to other intermediaries using rail or truck
Provide brokerage services by helping other wholesalers negotiate deals
5)The primary difference between retailers and wholesalers is that:
retailers sell consumer goods, while wholesalers sell industrial goods.
retailers operate in local areas, while wholesalers operate over a wide geographic area.
retailers sell to final consumers, while wholesalers sell to other organizations, such as retailers or manufacturers.
retailers have sales of less than $100 million, while wholesalers have sales of $100 million or more.
6)Marketing intermediaries can provide _________ utility by offering customers affordable credit, free delivery, and product guarantees.
possession
information
form
promotion
7)Stores that remain open 24 hours a day, seven days a week are providing _________ utility to their customers.
possession
time
service
schedule
8)Retailers who have stores at convenient locations are trying to add value by:
using a horizontal distribution strategy.
using a broad resource allocation strategy.
providing place utility.
achieving market concentration.
9)Compared to rail transportation, one of the advantages of shipping by truck is that trucks:
are more energy efficient.
can carry a greater volume.
can reach more destinations.
are less expensive.
10)In multilevel marketing, salespeople have an incentive to:
recruit new salespeople, because they receive a commission on the sales made by the people they recruit.
perform as many of the marketing functions as possible, because each function they perform adds to their commission.
sell the product using both direct and indirect marketing methods in order to reach different types of customers.
limit the number of salespeople in their franchise area so that they can maximize their own sales.
11)Which of the following statements identifies a key advantage of direct marketing? Direct marketing:
enables sales people to close a non-refundable sale in the customer's home or place of work.
allows firms to expand their markets by selling to both ultimate consumers and other marketing intermediaries.
is popular with consumers because it is so convenient to shop from home or work.
creates a strong incentive for salespeople to recruit additional salespeople in order to gain the greatest possible market coverage.
12)Which of the following statements about channels of distribution is most accurate?
Channels of distribution always begin with a manufacturer and end with consumers, and always have one or more marketing intermediaries in between.
Channels of distribution always include retailers, but they may or may not also include wholesalers.
The fewer the marketing intermediaries in a channel of distribution, the more efficient the channel is likely to be.
Some channels of distribution include marketing intermediaries, while in others a manufacturer sells directly to the final consumer.
13)In the terminology of multilevel marketing, which of the following statements about the relationship between upliners and downliners is most accurate? 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.
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.
upliners sell through electronic retailing arrangements, while downliners use more traditional methods of retail selling.
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.