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Exam 15: Distributing Products

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Question 51

True/False

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Supply chain management not only deals with the movement of materials, parts, and finished goods, it also manages the return of goods and recycling of materials when appropriate.

A) True
B) False

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Question 52

Multiple Choice

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________ warehouses are used to gather and redistribute products.

A) Storage
B) Distribution
C) Wholesale
D) Merchandising

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

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Question 53

Multiple Choice

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Those organizations that assist in the movement of goods and services from producer to industrial and consumer users are known as

Suppliers to large retailers like Target and Walmart may soon be required to use RFID tags when shipping products to these companies.

The best way to reduce the cost of goods is to eliminate marketing intermediaries from the distribution channel.

Marketers normally provide form, time, place, information, and service utility, but they are seldom involved in providing possession utility.

Companies who send salespeople to customers' homes or places of work are making use of ________ selling.

After developing a new jewelry design, Christina and Julee were fortunate to get the attention of a large online retailer. The retailer was willing to fund the production of the jewelry abroad, as long as the designers agreed to sell their design through its outlets for the first two years. The retailer was asking Christina and Julee to agree to

Marketers claim that intermediaries add value to the channel of distribution that outweighs the cost.

Phoebe helps small farmers negotiate sales to food processing companies. However, once she has helped negotiate the transaction, she does not maintain a long-term relationship with the farmers. Phoebe is an example of a sales agent in this market.

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

An increase in energy prices would encourage shippers to rely more on rail transportation.

Qwikship is a new delivery company that wants to compete against FedEx and UPS in the United States, Canada, and Mexico. One of the keys to Qwikship's success will be the ability to establish large storage warehouses at a few key locations throughout North America.

A problem with the corporate distribution system is that the manufacturer has very little control over the operations of the retailers and other marketing intermediaries in the system.

In the terminology of multilevel marketing, which of the following statements about the relationship between upliners and downliners is most accurate?

Rack jobbers furnish racks or shelves full of merchandise to retailers and keep title to these goods until they are sold.

Playtime Toys, Inc. manufactures toys designed to inspire the imaginations of children. In order to control all of the marketing operations, Playtime owns all of the organizations in the channel of distribution for its toys, including the chain of Playtime retail stores. The approach taken by Playtime is known as an administered distribution system.

Freight forwarders are particularly useful to large firms who must ship very large quantities on short notice.

________ may represent several producers in a specific territory, as long as they do not represent competing products.

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