FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 15: Distributing Products

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

Cesar claims he found a definite way to save money, "Buy direct from the manufacturer. Any time intermediaries get involved, you'll pay a higher price. After all, every intermediary involved in the marketing process must charge enough to earn a profit." What do you make of Cesar's claim?

A) It is entirely correct. Intermediaries must charge a high enough price for the activities they perform to earn a profit, so using intermediaries must result in a higher price.
B) It is impractical, because in most markets the distribution process is so complex that it is impossible to determine who the actual producer really is.
C) It is not valid in many cases. Intermediaries do add costs to products, but they also create value by performing marketing functions efficiently. In many cases the value they create more than offsets the costs they add.
D) It is never true. Markets that make use of intermediaries can always provide goods at lower cost than those that rely on direct distribution.

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

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

Tony brings together buyers and sellers of used heavy construction equipment, and helps them negotiate the terms of the sale. However, he never takes title to any of the equipment himself, nor does he provide any financing for the buyer. Tony is acting as a

A) channel captain.
B) broker.
C) wholesaler.
D) logistics specialist.

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

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

When firms manage the return of goods from consumers either because they are defective or for recycling purposes, they are involved in

One way a store selling HDTVs might add ________ utility is to provide convenient delivery and setup to customers.

Rack jobbers sell goods on consignment, splitting the profits from their sales with a retailer.

Qwikship is a new delivery company that wants to compete against FedEx and UPS in the United States, Canada, and Mexico. One of the keys to Qwikship's success will be the ability to establish large storage warehouses at a few key locations throughout North America.

Items such as snow skis, lawnmowers, and other highly seasonal items are often held in ________ warehouses during the months they are not in demand.

The costs added by marketing intermediaries usually outweigh the value they create.

Retailers that participate in an exclusive distribution strategy will have a strong incentive to carry a large inventory of the good and provide exceptional service to customers.

Explain why you agree or disagree with the following statement: "Marketing intermediaries must charge a high enough price for the functions they perform to earn a profit. Therefore, the cost of distributing goods can almost always be reduced by eliminating marketing intermediaries from the channel of distribution."

Discount stores, supermarkets, and department stores are all common types of

Direct marketing involves having a salesperson visit the customer's home or place of business.

One drawback of kiosks is that their high overhead costs result in low profit margins.

Drop shippers are limited function wholesalers that typically put together many small shipments to form a single larger shipment.

Which of the following is an example of a consumer making a purchase through a direct marketing arrangement?

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

A ________ offers a huge selection of one type of product (such as books, toys, or sporting goods) to dominate that category of goods.

Most marketing intermediaries have survived in the past because consumers were unaware of how much these companies add to the cost of distributing goods.

Dee's suggestion that the company needed more control over the way its products were displayed, priced, and promoted prompted a lot of discussion. Mark suggested that the company should manage these marketing functions for its products at the retail outlets. Mark appears to be suggesting that Lite Bite use a(n)

The primary difference between retailers and wholesalers is that