Question 1

The U.S. Department of Commerce reported that 60 percent of all Fortune 500 companies' logistics cost are spent on warehousing.

Accepted Answer

A) True 
 B)False

Question 2

In terms of channel organization and administration, an administered channel arrangement is an arrangement between intermediaries such that the retailer coordinates the tasks of each member in the channel.

Accepted Answer

A) True 
 B)False

Question 3

In terms of volume, the primary mode of transportation in the United States is

Accepted Answer

A)   truck
B)   rail
C)   water
D)   pipelineE) A) and B)
F) A) and C)

Question 4

The totality of organizations and individuals involved in the distribution process is called

Accepted Answer

A)   distribution planning
B)   the channels of distribution
C)   value delivery chain
D)   marketing supply chainE) A) and B)
F) C) and D)

Question 5

Full-service wholesalers sell primarily to

Accepted Answer

A)   manufacturers
B)   distributors
C)   retailers
D)   final consumersE) A) and D)
F) All of the above

Question 6

Wholesalers sell goods and services to manufacturers, to other wholesalers, to retailers, to the government, or to nongovernmental organizations.

Accepted Answer

A) True 
 B)False

Question 7

A ____________________ is where the manufacturer first focuses on consumer demand through extensive promotion, expecting that consumers will request the brand through the channel.

Accepted Answer

The answer of A ____________________ is where the manufacturer first...

Question 8

Channels of distribution adopting a(n) ____________________ channel arrangement spell out in a contract all of the tasks that must be performed by each channel member.

Accepted Answer

The answer of Channels of distribution adopting a(n) ____________________ channel...

Question 9

Limited-service wholesalers

Accepted Answer

A)   are independent intermediaries who take title to and possession of products they distribute to resellers or organizational consumers
B)   provide a wide range of distribution tasks, such as product delivery, warehousing, sales force assistance, credit, research, planning, and installation and repair assistance
C)   offer fewer services than full-service wholesalers, such as delivery and storage
D)   are independent intermediaries who carry a broad product assortment, but low depth, in any one product lineE) B) and C)
F) A) and C)

Question 10

Franchise wholesalers are

Accepted Answer

A)   independent intermediaries affiliated with a manufacturer or wholesaler through a franchise contract
B)   wholesalers who manage the store shelves carrying their products
C)   independent wholesalers who carry a narrow product assortment, but offer great depth in the product lines carried
D)   independent intermediaries who carry a broad product assortment, but low depth, in any one product lineE) B) and D)
F) All of the above

Question 11

The number of independent channel members involved at a particular level of the distribution channel is the

Accepted Answer

A)   channel depth
B)   channel width
C)   channel lengthD) B) and C)
E) All of the above

Question 12

Drop shippers are wholesalers who

Accepted Answer

A)   carry a limited line of fast-moving goods; they travel to a wholesaler's location, pay cash for merchandise, take physical possession of the product, and carry it directly to retailers
B)   take physical possession of the products and sell them from their trucks or wagons on their regular sales route
C)   take title to, but not possession of, the product; they buy goods from suppliers and arrange to have them shipped directly to the reseller or organizational user
D)   mail catalogs to businesses, take orders, and ship the product to the businessE) C) and D)
F) B) and C)

Question 13

Mail-order wholesalers are wholesalers who

Accepted Answer

A)   carry a limited line of fast-moving goods; they travel to a wholesaler's location, pay cash for merchandise, take physical possession of the product, and carry it directly to retailers
B)   take physical possession of the products and sell them from their trucks or wagons on their regular sales route
C)   take title to, but not possession of, the product; they buy goods from suppliers and arrange to have them shipped directly to the reseller or organizational user
D)   mail catalogs to businesses, take orders, and ship the product to the businessE) C) and D)
F) B) and C)

Question 14

In terms of channel power, expert power is based on

Accepted Answer

A)   an anticipation of special privileges, such as financial reward for a particular behavior
B)   experience and knowledge that a channel member possesses
C)   an intermediary's status or position in the channel
D)   the close match in terms of values and objectives that members of the channel shareE) All of the above
F) A) and D)

Question 15

All of the activities involved in buying and handling the goods intended for sale to resellers, retailers, or other organizational users is the definition of ____________________.

Accepted Answer

The answer of All of the activities involved in buying...

Question 16

In terms of channel organization and administration, a channel captain is

Accepted Answer

A)   the dominant member of a channel of distribution
B)   the retailer that sells the products and has access to consumers
C)   the manufacturer that has a high level of product quality and prestige
D)   the largest member of the channelE) A) and C)
F) A) and D)

Question 17

_____ are specialized firms that collect shipments from different businesses, consolidate them for part of the distance, and deliver them to a destination.

Accepted Answer

A)   Freight forwarders
B)   Inter-modal transports
C)   Distribution specialists
D)   KeiretsusE) All of the above
F) A) and D)

Question 18

The best mode of transportation for perishable items such as flowers is

Accepted Answer

A)   truck
B)   rail
C)   air
D)   waterE) A) and B)
F) B) and C)

Question 19

Using two or more channels of distribution to appeal to different markets is ___________________________________.

Accepted Answer

dual channel of distribution
...

Question 20

Channel length is the

Accepted Answer

A)   number of retailers involved in a particular channel of distribution
B)   number of agents or brokers used by a particular manufacturer
C)   number of levels of distribution in a distribution channel
D)   number of independent intermediaries involved at a particular stage of distributionE) A) and B)
F) B) and C)

Exam 10: Distribution Strategies

Wholesalers sell goods and services to manufacturers, to other wholesalers, to retailers, to the government, or to nongovernmental organizations.

Correct AnswerverifiedShow Answer

In terms of channel organization and administration, an administered channel arrangement is an arrangement between intermediaries such that the retailer coordinates the tasks of each member in the channel.

Correct AnswerverifiedShow Answer

In terms of volume, the primary mode of transportation in the United States is

Correct AnswerverifiedShow Answer

The U.S. Department of Commerce reported that 60 percent of all Fortune 500 companies' logistics cost are spent on warehousing.

Correct AnswerverifiedShow Answer

A ____________________ is where the manufacturer first focuses on consumer demand through extensive promotion, expecting that consumers will request the brand through the channel.

Correct AnswerverifiedShow Answer

The best mode of transportation for perishable items such as flowers is

Correct AnswerverifiedShow Answer

In terms of channel organization and administration, a channel captain is

Correct AnswerverifiedShow Answer

Full-service wholesalers sell primarily to

Correct AnswerverifiedShow Answer

All of the activities involved in buying and handling the goods intended for sale to resellers, retailers, or other organizational users is the definition of ____________________.

Correct AnswerverifiedShow Answer

Channels of distribution adopting a(n) ____________________ channel arrangement spell out in a contract all of the tasks that must be performed by each channel member.

Correct AnswerverifiedShow Answer

Using two or more channels of distribution to appeal to different markets is ___________________________________.

Correct Answerverifieddual channel of distribution ...View AnswerShow Answer

Franchise wholesalers are

Correct AnswerverifiedShow Answer

The totality of organizations and individuals involved in the distribution process is called

Correct AnswerverifiedShow Answer

_____ are specialized firms that collect shipments from different businesses, consolidate them for part of the distance, and deliver them to a destination.

Correct AnswerverifiedShow Answer

Channel length is the

Correct AnswerverifiedShow Answer

In terms of channel power, expert power is based on

Correct AnswerverifiedShow Answer

Limited-service wholesalers

Correct AnswerverifiedShow Answer

The number of independent channel members involved at a particular level of the distribution channel is the

Correct AnswerverifiedShow Answer

Drop shippers are wholesalers who

Correct AnswerverifiedShow Answer

Mail-order wholesalers are wholesalers who

Correct AnswerverifiedShow Answer

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dual channel of distribution
...
View Answer

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