Chapter 15 quiz

Selective distribution helps marketers reduce total marketing costs while establishing strong working relationships within the channel.

True

Unitizing combines as many packages as possible into each load that moves within or outside a facility.

True

A marketing intermediary is an organization that operates between producers and consumers or business users.

True

A wholesaler is an intermediary that takes the title to the goods it handles and then distributes these goods to retailers, other distributors, or sometimes end consumers.

True

Activities specifically related to the physical movement and management of raw materials or products are called logistics.

True

An example of vertical conflict within the clothing industry would be when a firm such as Jones, New York decides to sell its line of women's blazers directly to consumers via their website, as opposed to distributing them via its usual wholesale channels.

True

Direct selling is an important option for goods requiring extensive demonstrations in persuading customers to buy.

True

Dual distribution is the movement of products through more than one channel to reach the firm's target market.

True

High sales volume spreads selling costs over a large number of items, generating adequate returns from direct sales.

True

Horizontal conflict results from disagreements among channel members at the same level.

True

In exclusive distribution, producers and retailers cooperate closely in decisions concerning advertising and promotion, inventory carried by the retailers, and prices.

True

Lands' End products are sold through catalogs, the Internet, and Sears retail stores. The Lands' End brand practices dual distribution.

True

Large facilities offer economies of scale in facilities and materials handling systems; per-unit costs for these systems decrease as volume increases.

True

Product recalls and repairs are handled through reverse channels.

True

Railroads control the largest share of the freight business in the United States as measured by ton-miles.

True

When a producer decides to advertise products on its website and sell them online, while continuing to distribute products to its current retailer customer base, the decision is likely to result in horizontal channel conflict.

False

A storage warehouse assembles and redistributes goods, keeping them moving as much as possible.

False

Exclusive distribution allows greater market coverage than any other distribution strategy.

False

Pipelines can accommodate shipments of a large number of products.

False

Rising prices for raw materials, the increasing availability of recycling facilities, and a move toward increased environmental sustainability have all diminished the importance of reverse channels.

False

Service firms market primarily through long distribution channels.

False

Simple Foods, a breakfast cereal brand, has two wholesalers supplying to almost 100 retailers in California. Conflicts arising between the retailers and wholesalers within California will be referred to as horizontal conflicts.

False

The supply chain begins with the movement of finished products through the marketing channel to customers.

False

Water carriers continue to control the largest share of the freight business as measured by ton-miles.

False

When a producer grants exclusive rights to a wholesaler or retailer to sell its products in a specific geographic region it practices intensive distribution.

False