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Exam 15: Distributing Products

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Question 121

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When truck trailers are placed on rail cars to travel long distances,the process is known as leapfrogging.

A) True
B) False

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Question 122

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In administered distribution systems,retailers:

A) are reluctant to cooperate because they must perform many marketing functions for an uncertain payment.
B) receive a great deal of marketing help from producers.
C) are really subsidiaries of a manufacturer.
D) sign a contract agreeing to cooperate with wholesalers in the channel of distribution.

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

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Question 123

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Limited-function wholesalers are a type of merchant wholesaler.

_________ utility adds value to goods by having them available where people want them.

Marketing intermediaries:

Frank Crimmins was driving on Interstate 85 in eastern Alabama when he noticed he was running low on fuel.Frank was relieved when he found a gas station open at the next exit just 2 miles ahead.This is an example of the value place utility provides to a consumer.

A channel of distribution consists of the marketing intermediaries who join together to transport and store goods in their path from producers to consumers.

Small-timers,Incorporated is a small manufacturer of charm bracelets that include watches as well as keepsake items and trinkets.The company seldom has shipments large enough to be transported cost-efficiently by filling an entire truck or railcar.Small-timers could benefit by relying on a freight forwarder to help it distribute its goods.

Which of the following activities would a drop shipper be most likely to perform?

A category killer is an extremely successful product that kills the sales of other products in its category in a retail store.

An) ____________ consists of the marketing intermediaries that transport and store goods as they move through their path from producer to final user.

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

An) ___________ distribution strategy distributes a product through only a preferred group of retailers in a given are A.

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.

Clay Gates is a distribution specialist who has been looking at 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 Clay's primary interest is in improving his company's inbound logistics.

In order to succeed in today's tough economic times all retailers must compete with low prices.

In multilevel marketing,salespeople not only sell the product,they also recruit other people to sell the product.

Discount stores owe much of their success to a competitive strategy based on:

About 80 percent of all wholesalers are classified as merchant wholesalers.

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