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Exam 15: Distributing Products

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Question 101

True/False

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A key way for traditional retailers to compete with direct marketing is by providing outstanding service utility.

A) True
B) False

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Question 102

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Jessi ships various perishable flowers from her greenhouses near St. Louis to florists thousands of miles away in cities such as San Antonio, Seattle, and Hartford. Since the flowers must reach the florists as quickly as possible, the best mode of transportation for Jessi to use would be

A) railroads.
B) trucks.
C) air.
D) ships.

E) C) and D)
F) None of the above

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Question 103

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Marketing intermediaries have survived because they have been able to perform marketing functions more efficiently and effectively than a manufacturer or consumer could perform these functions.

________ put many small shipments together to create a single large shipment that can be transported more cost-efficiently to the final destination.

Annie, a marketing manager, is worried her firm is doing a poor job of managing the movement of finished products to the final consumer. If she is right, the company should work to improve its

Marketing costs make up less than 25 percent of the total cost of the goods consumers buy.

Marshall Manufacturing wants to ship a large quantity of its goods across the country. They have contacted Get Gone, Inc., to find out what the shipment would cost. Get Gone has shown Marshall how a combination of barges, trains, and trucks could be used to complete the shipment at low cost. Get Gone's strategy is an example of intermodal shipping.

A greeting card company, Tiny Texts, has been approached by Novel Teas, a producer of herbal teas and exotic spices. Novel Teas wants to sell its products in the Tiny Text stores under an administered distribution system. If Tiny Texts accepts Novel Teas' proposal, it will perform many marketing services for the tea maker in exchange for a flat fee.

Retailers are marketing intermediaries who sell to ultimate consumers.

An important reason for the popularity of direct marketing is that many people enjoy developing a personal relationship with a salesperson that comes directly to their home or place or work.

Logistics is concerned with the flow of information as well as with the flow of goods.

Agents are marketing intermediaries who do not take title to the goods they distribute and provide credit to customers who need it.

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

Currently, Spark Electrical sells directly to thousands of industrial customers. Spark could reduce the number of exchange relationships by including wholesalers in its channel of distribution.

Which of the following assessments of online retailing is most accurate?

Electronics Emporium, a chain of stores that specializes in devices and gadgets incorporating cutting-edge technologies, has over 150 stores in large cities throughout the Southeast and Midwest. Electronics Emporium picked the locations of its stores so that most customers living in upper middle class and wealthy neighborhoods can get to a location in under 15 minutes. Electronics Emporium is providing its customers with

In the distribution process, the largest percentage of the retail price goes to

________ is the term used to describe the use of outside firms to help move their goods through the supply chain.

Businesses are using ________ and other ways to track goods and control the flow of goods from point of origin to point of consumption. "Tracking" is an important part of the process of managing the flow of goods, an activity that marketers call ________.

According to the Spotlight on Small Business box, thredUP founders discovered their first distribution system, very similar to eBay's, was the best suited for their business.