Marketing Chapter 11 Quiz

Intermediaries that do business with many different manufacturers and many different customers are most accurately referred to as ________. A) Interdependent intermediaries B) Dependent intermediaries C) Independent intermediaries D) Wholesalers E) Retail outlets

C) Independent intermediaries

Offering credit to buyers and providing refund services for products are both examples of ________ functions provided by channel intermediaries. A) Communication B) Marketing C) Promotional D) Facilitating E) Management

D) Facilitating

A new company called LidRock is prospering because it figured out a novel way to get music, video games, and movies into the hands of consumers: on mini-CDs tucked into the lids of soft drinks. LidRock is focusing on which one of the four Ps? A) Product B) Price C) Promotion D) Place E) Profit

D) Place

The owner of a grocery store wants to have non-food items delivered, priced, displayed, and inventoried by a wholesaler. Which type of wholesaler best fits the owner's needs? A) Drop shipper B) Cash-and-carry wholesaler C) Truck jobber D) Rack jobber E) Mail-order wholesaler

D) Rack jobber

Which of the following is most likely to force a manufacturer to pay a slotting allowance? A) A selling agent B) A merchandise broker C) A large retail chain D) A small retailer E) A rack jobber

C) A large retail chain

Which of the following should be the first step in distribution planning? A) Identifying the channel leader B) Determining a distribution budget C) Developing distribution objectives D) Evaluating the internal and external environments E) Determining the desired level of distribution intensity

C) Developing distribution objectives

Which of the following is the best example of a direct channel? A) J&L Manufacturing Company sells drapery hardware to The Home Depot's Design Center, and the Design Center then sells it to consumers. B) Family Dollar Store sells modeling clay to school-age children. C) A wholesaler sells candy to convenience stores, who then sell it to store patrons. D) Farmer Mintz sells corn to the Hughes household, who will eat it for supper. E) A farmer in Colombia sells flowers to an international broker, who makes sure the flowers reach consumers in the United States.

D) Farmer Mintz sells corn to the Hughes household, who will eat it for supper.

Wholesalers and retailers create efficiencies in the flow of goods from producer to end consumer by ________ when they provide a variety of products in one location. A) Creating assortments B) Just in time processing C) Third-party logistics D) Order processing E) Inventory control

A) Creating assortments

It is most accurate to say that channels of distribution provide which of the following? A) Time, place, and ownership utility B) Promotion, product, and place utility C) Time, place, and form utility D) Promotion and form utility E) Time and promotion utility

A) Time, place, and ownership utility

Wholesalers and retailers purchase large quantities of goods from manufacturers but sell only one or a few at a time to many different customers. This process is called ________. A) Creating assortments B) Breaking bulk C) Third-party logistics D) Order processing E) Inventory control

B) Breaking bulk

A ________ brings buyers and sellers together and facilitates transactions, typically charging a fee after a transaction is completed. A) Cash-and-carry wholesaler B) Broker C) Retailer D) Wholesaler E) Commission merchant

B) Broker

Which of the following statements about manufacturers' agents is true? A) Manufacturers' agents are also called manufacturers' brokers. B) Manufacturers' agents most typically work for only one manufacturer. C) Manufacturers' agents are compensated with commissions based on a percentage of what they sell. D) Manufacturers' agents have unlimited sales territories. E) Manufacturers' agents are entirely supervised by the manufacturer for whom they sell.

C) Manufacturers' agents are compensated with commissions based on a percentage of what they sell.

Once an organization has developed its distribution objectives, it should next ________. A) Identify the channel leader B) Determine a distribution budget C) Select the optimum number of channel levels D) Define the target market and articulate the market segmentation strategy E) Evaluate the internal and external environments

E) Evaluate the internal and external environments

Nita can visit her local supermarket and buy a dozen roses, a gallon of milk, two birthday cards, a bag of cat litter, and a pan for roasting a turkey. This illustrates how channels of distribution benefit consumers by ________. A) Creating atmospherics B) Creating assortments C) Directing logistics D) Managing knowledge E) Managing relationships

B) Creating assortments

5) Through a process of ________, traditional intermediaries are being eliminated as many companies question the value added by layers in the distribution channel. A) Knowledge management B) Disintermediation C) Horizontal marketing D) Vertical marketing E) Hybrid marketing

B) Disintermediation

Which of the following is an example of a dual distribution system? A) Walmart locating in several countries B) J.C. Penney's catalog and retail store sales C) Avon's door-to-door distribution D) Starbucks located inside a bookstore E) a hotel providing guest privileges at a nearby health spa

B) J.C. Penney's catalog and retail store sales

10) To a producer of goods, a greater number of channel levels means ________. A) Less distance between producer and end consumer B) Less control C) More creativity D) Higher taxes E) Multiple distribution systems

B) Less control

14) Proud Pets, a producer of clothing and accessories for pets, has recently partnered with a regional chain of pet stores. Which of the following would Proud Pets be LEAST likely to expect from its new channel member? THINK! A) Promoting its products through advertising B) Assembling and packaging its products for final sale C) Distributing relevant market information D) Identifying raw materials and other productive inputs E) Taking a risk that items may not sell

D) Identifying raw materials and other productive inputs