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Exam 15: Distributing Products

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Question 71

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The two main types of merchant wholesalers are storage wholesalers and distribution wholesalers.

A) True
B) False

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Question 72

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A is a marketing intermediary that sells products to other organizations.

A) wholesaler
B) retailer
C) disintermediary
D) jobber

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

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Question 73

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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.

One way traditional retailers have maintained customers in the face of increasing competition from online sellers and other direct markers is to place more emphasis on providing utility.

Marketing intermediaries that solicit orders from retailers or other wholesalers and have the products delivered directly from the producer to the buyer are known as:

Zintelle, Inc. is a large manufacturing firm. It has recently reached an agreement with an intermodal marketing company to significantly reduce the cost of shipping its finished goods to some major business customers. This agreement will help Zintelle reduce the costs associated with outbound logistics.

Cash-and-carry wholesalers and drop shippers are both classified as limited-function wholesalers.

Because some of its key suppliers have been late with their shipments of materials and parts, Marnex Enterprises has had to shut down its manufacturing plant for several hours twice in the past week. These difficulties indicate that Marnex has done a poor job in managing its inbound logistics.

Water transportation has declined to the point where it now accounts for a very small part of transporting goods.

Pipelines are used primarily to transport water, petroleum, and petroleum products.

Placing ads in newspapers and having knowledgeable salespeople to answer customers' questions are ways marketing intermediaries can provide:

Organizations that assist in moving goods and services from producers to business and consumer users are called supply-side transition specialists.

Millie Woods owns and operates a World of Food 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. Millie's store is part of a(n) :

The sale of goods to a business purchasing the items for resale is a wholesale transaction.

Kumquat Computers is a major computer manufacturer that also owns all of the organizations in the channel of distribution for its computers, including a chain of Kumquat Direct retail stores. Kumquat is using a:

Warehouse clubs compete with enhanced service to customers and seldom try to compete on price.

The major disadvantage of multilevel marketing is that the high entry cost for most sellers means that only relatively wealthy individuals can use this approach.

A is a marketing intermediary that sells to ultimate consumers.

Nina Corby owns a card shop in a small shopping center where she sells cards produced by a national company. Nina sells to final customers, so she is a(n) :

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