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Which of the following statements about channels of distribution is most accurate?


A) Channels of distribution always begin with a manufacturer and end with consumers, and always have one or more marketing intermediaries in between.
B) Channels of distribution always include retailers, but they may or may not also include wholesalers.
C) The fewer the marketing intermediaries in a channel of distribution, the more efficient the channel is likely to be.
D) Some channels of distribution include marketing intermediaries, while in others a manufacturer sells directly to the final consumer.

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

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________ utility is usually provided by producers rather than marketers.


A) Possession
B) Time
C) Place
D) Form

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

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The Knot is an online company that helps people with the complex task of planning a wedding. Multiple vendors are recommended for things like flowers, caterers, wedding gowns, and more. Through The Knot, a couple can establish a website that acts as a registry. Once the couple is married, the website directs them to another site having to do with beginning married life. What type of utility or utilities is this site providing to its users?


A) form and service
B) service and time
C) service and information
D) form and information

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

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Because supply chains are so complex, firms have found it difficult to outsource supply chain management.

A) True
B) False

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Marketing intermediaries


A) are unlikely to survive in a competitive global economy.
B) have survived because they can often perform marketing functions faster and at lower cost than producers.
C) create value, but this value is seldom great enough to justify the added cost they charge for their services.
D) tend to increase the number of exchange relationships producers and consumers must deal with in order to buy and sell goods.

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

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Ariel stocks several local supermarkets and discount stores with Shimmer Cosmetics. At the stores, she sets up displays of products carrying the Shimmer brand name, and sells the goods on consignment, sharing any profits on the sales with the retailer. What is Ariel?


A) cash-and-carry wholesaler
B) truck jobber
C) broker
D) rack jobber

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

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Marketers provide a total of four types of utility: primary, secondary, marginal, and total.

A) True
B) False

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Though vending machines can sell just about anything, they are most often used to sell


A) shopping goods.
B) convenience goods.
C) specialty goods.
D) inferior goods.

E) None of the above
F) All of the above

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Suppose that nine bakeries each tried to sell their products directly to eight supermarkets. The total number of exchange relationships that would be established is


A) 22.
B) 56.
C) 72.
D) 96.

E) B) and D)
F) B) and C)

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Services that specialize in intermodal shipping are known as intermodal marketing companies.

A) True
B) False

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Which of the following statements about service utility is most accurate? Service utility is


A) becoming less important to retailers in this age of self-service marketing.
B) the one type of utility that online firms provide more efficiently than traditional retailers.
C) more likely to be provided by wholesalers than by retailers.
D) becoming crucial to traditional retailers as they try to prevent their customers from defecting to firms using direct marketing.

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

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Marketing intermediaries can provide ________ utility by offering customers affordable credit, free delivery, and product guarantees.


A) possession
B) information
C) form
D) promotion

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

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Diamond Motor Car Company produces some of the most luxurious and expensive cars in the world. Typically, only a single dealership is authorized to sell its cars in certain major cities. In less populous areas, Diamond authorizes a single dealer for an entire state or region. The manufacturer of Diamond automobiles is using a(n) ________ distribution strategy for its product.


A) intensive
B) primary
C) extrinsic
D) exclusive

E) None of the above
F) A) and B)

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Some manufacturers sell directly to consumers or businesses rather than relying on marketing intermediaries.

A) True
B) False

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Compared to railroads and trucks, the biggest advantage offered by air transport is that it is


A) faster.
B) more dependable.
C) lower in cost.
D) able to reach more destinations.

E) None of the above
F) A) and B)

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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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When marketing intermediaries perform the steps necessary to transfer ownership from one party to another, they are providing ________ utility.


A) marginal
B) title
C) possession
D) registration

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

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Selena owns and operates a Global Goods grocery store. Although her store is independently owned and operated, she has signed an agreement with over seventy stores in the Midwest to use a common name, participate in chain promotions, and cooperate with other stores in the chain. What is Selena's store a part of?


A) administered chain
B) wholesaler-sponsored chain
C) corporate distribution system
D) horizontal distribution chain

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

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Edwin, an employee at an auto assembly plant for a U.S. auto manufacturer, manages a group of employees who measure the quality of parts that arrive on rail cars from Mexico and other countries. As a receiver of auto parts from other suppliers, Edwin works in


A) third-party logistics.
B) supply chain management.
C) a corporate distribution system.
D) direct mail operations.

E) B) and C)
F) All of the above

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Charmers is a small manufacturer of charm bracelets that include watches as well as other keepsake items. Rarely are Charmers' shipments large enough to be transported cost-efficiently by filling an entire truck or railcar. The company could benefit by relying on a freight forwarder to help it distribute its goods.

A) True
B) False

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