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Exam 15: Distributing Products

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Question 81

Multiple Choice

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Soles Shoes produces top-quality designer shoes, created for the person concerned about style. Soles gives only a few preferred retailers in a given market area the right to market its product. Soles Shoes uses

A) intensive distribution.
B) selective distribution.
C) exclusive distribution.
D) limited function distribution.

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

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Question 82

True/False

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In the battle between online and traditional brick-and-mortar retailers, the online retailers seem to have all of the advantages needed to emerge as the clear winners.

A) True
B) False

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Question 83

True/False

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Retail organizations employ more than 40 million people in the U.S.

The activities performed by most marketing intermediaries are not essential to the marketing process.

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?

Form utility has become the most important utility provided by retailers.

Marketing intermediaries add ________ utility to products by having them available when consumers want them.

Eastern Spice Company was unable to get retailers to agree to a contractual arrangement to cooperate in the distribution process, so it took over all of the marketing functions for its products at grocery stores. The grocers like this arrangement because Eastern Spice provides outstanding marketing support for its products. Eastern Spice is using a(n) ________ system to distribute its products.

Any marketing method that directly links manufacturers or intermediaries with the ultimate consumer could be classified as

Keira owns and operates a home business. Once a month she heads to OfficePRO to buy office supplies for her business. The prices at the OfficePRO are very low, but it does not offer credit or delivery services. OfficePRO is a cash-and-carry wholesaler.

Brendan is a salesperson for Garden Gnomes Lawn Care products. His job requires him to sell Garden Gnomes' products, but he is also expected to recruit more salespeople for the company. He will earn a commission on all of the sales earned by the salespeople he recruits. Garden Gnomes is using a retail distribution strategy known as multilevel marketing.

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

Fernando and Mariana solicit orders for lumber from area wholesalers and retailers specializing in building supplies and arrange to have the orders shipped directly from nearby logging companies. Fernando and Mariana operate as drop shippers.

Marketing intermediaries that solicit orders from retailers or other wholesalers and have the products delivered directly from the producer to the buyer are known as

Pipelines are used primarily to transport

Discount stores, department stores, supermarkets, and specialty stores are all among the major types of retail stores.

OfficePRO sells a variety of supplies to small businesses and local offices. The fact that it sells only to other firms and not consumers indicates that OfficePRO engages only in

The use of pipelines should decline in the future because this mode is suitable only for shipping petroleum.

Water transportation has benefits and drawbacks; for example, it is inexpensive but slow.

Because so many people work outside the home and aren't at home during the day, companies that use direct selling are sponsoring parties at workplaces to sell their products.