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Exam 15: Distributing Products

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Question 21

Multiple Choice

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In the Thinking Green box in the chapter, news stories reporting the benefits of keeping the carbon footprint low clearly show:

A) that buying locally produced products is the best way to support green causes.
B) the process used in growing food has little to do with reducing our carbon footprint.
C) methods of transportation used can have a major effect on lowering the carbon footprint.
D) until Americans quit relying on foreign made goods like French wine there is little we can do to reduce our carbon footprint.

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Question 22

Multiple Choice

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Which of the following statements identifies a key advantage of direct marketing? Direct marketing:

A) enables sales people to close a non-refundable sale in the customer's home or place of work.
B) allows firms to expand their markets by selling to both ultimate consumers and other marketing intermediaries.
C) is popular with consumers because it is so convenient to shop from home or work.
D) creates a strong incentive for salespeople to recruit additional salespeople in order to gain the greatest possible market coverage.

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Question 23

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A value of shipping by truck is that trucks can deliver small shipments to remote locations.

Wholesaler-sponsored chains consist of stores that are all owned by a single corporation.

The highest-cost transportation method is:

Which of the following firms would be most likely to use a selective distribution strategy for its products?

Because of delivery issues and problems with communication, Internet sales are predicted to decline to $150 billion by 2008.

One advantage of a franchise system of distribution is that it results in a consistent level of quality and service.

Providing buyers with credit terms such as "90 days same as cash" is a way marketing intermediaries can provide time utility to customers.

A retail sale is a sale to a consumer of products for his or her own use.

The two basic types of warehouses are:

About of the cost of things we buy are marketing costs that go to pay for distribution costs of intermediaries.

Producers of snack foods (such as candy bars or potato chips) are most likely to use a(n) distribution strategy for their products.

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

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

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

Pipelines are used primarily to transport:

Some Web sites are trying to improve their service by providing assistance from a real person.

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.

Some economists would say that intermediaries add costs to the channel of distribution and need to be eliminated.