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| 1 | |
Which of the following statements about marketing intermediaries is true? |
| | A) | A middleman is an intermediary who sells only to consumers. |
| | B) | The terms agent and broker are often used interchangeably. |
| | C) | The term dealer is a more precise term than intermediary for describing distributors, retailers, and wholesalers. |
| | D) | A wholesaler is an intermediary who sells primarily to consumers. |
| | E) | Distributors are not typically found in business markets. |
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| 2 | |
Rob stops at the supermarket to purchase a package of Oreos and other groceries. He is the ultimate consumer in a pipeline from the producer through intermediaries including the grocery store. This pipeline is actually a: |
| | A) | consumer market. |
| | B) | marketing intermediary. |
| | C) | marketing channel. |
| | D) | transactional function. |
| | E) | logistical function. |
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| 3 | |
Which of the following is an example of a transactional function that would be performed by a marketing intermediary? |
| | A) | assorting and sorting |
| | B) | financing |
| | C) | grading |
| | D) | transporting |
| | E) | risk taking |
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| 4 | |
In terms of distribution, when marketing channel members are engaged in financing, grading, marketing information and research, they are performing __________ functions. |
| | A) | logistical |
| | B) | transformational |
| | C) | facilitating |
| | D) | implementing |
| | E) | transactional |
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| 5 | |
The most common indirect channel moves product from producer to retailer to consumer. This type of channel is most likely to exist when: |
| | A) | the retailer is large and can buy in large quantities. |
| | B) | the cost of inventory makes it too expensive to use a wholesaler. |
| | C) | there are so many product variations that a wholesaler could not carry them all in sufficient quantity. |
| | D) | the cost of maintaining inventory is high. |
| | E) | all of the above conditions exist. |
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| 6 | |
Which of the following statements about electronic marketing channels are true? |
| | A) | Electronic marketing channels combine create possession utility. |
| | B) | Electronic intermediaries are incapable of performing many of the logistical functions that traditional intermediaries can. |
| | C) | Electronic marketing channels cannot create time and place utility. |
| | D) | Services cannot be distributed through electronic marketing channels. |
| | E) | Electronic marketing channels cannot perform transactional functions. |
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| 7 | |
Gazoontite is a company that sells specialty products to allergy sufferers through its website and offline retailer stores. Gazoontite uses: |
| | A) | bilateral distribution. |
| | B) | dual distribution. |
| | C) | vertical integration. |
| | D) | two-tiered placement. |
| | E) | franchising. |
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| 8 | |
Abbott Laboratories, a manufacturer of several popular over-the-counter medications, warehouses and delivers all of 3M's medical and surgical products to hospitals across the nation. The agreement between Abbott Laboratories and 3M is an example of: |
| | A) | multi-channel distribution. |
| | B) | a direct marketing channel. |
| | C) | a cooperative distribution channel. |
| | D) | a strategic channel alliance. |
| | E) | a dual distribution agreement. |
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| 9 | |
Fingerhut contracted to be the drop shipper for e-toys.com, an Internet toy retailer. This means that Fingerhut: |
| | A) | shipped the toys directly from their manufacturer to the buyer. |
| | B) | sold only to buyers that came to its website. |
| | C) | stocked and delivered the toys. |
| | D) | is responsible for storage, but not getting merchandise delivered to buyers. |
| | E) | acted as a full-service wholesaler. |
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| 10 | |
There are four major types of limited-service wholesalers. They are: |
| | A) | cash and carry wholesalers, rack jobbers, drop shippers, and truck jobbers. |
| | B) | selling agents, brokers, rack jobbers and drop shippers. |
| | C) | manufacturer's agents, selling agents, full-line wholesalers, and desk jobbers. |
| | D) | full-line wholesalers, rack jobbers, selling agents, and food brokers. |
| | E) | desk jobbers, rack jobbers, truck jobbers, and selling agents. |
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| 11 | |
The small display of audiotapes and CD selections in many convenience stores are not owned by the convenience store owners, but rather by __________ who sell on consignment through the retailers. |
| | A) | cash and carry wholesalers |
| | B) | rack jobbers |
| | C) | truck jobbers |
| | D) | general merchandise wholesalers |
| | E) | drop shippers |
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| 12 | |
Originally, filters for Mr. Coffee electric-drip coffee makers were sold through appliance and mass merchandise stores. When the company decided to sell the filters in stores where customers purchased their coffee, what type of intermediaries would the company most likely have hired? |
| | A) | rack jobbers |
| | B) | drop shippers |
| | C) | truck jobbers |
| | D) | manufacturer's reps |
| | E) | food brokers |
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| 13 | |
Lighting-One is a national __________ that allows its members, retailers of lighting fixtures, to concentrate their buying power through it and more importantly plan collaborative promotional and pricing activities. |
| | A) | service-sponsored retail system |
| | B) | retailer-sponsored cooperative |
| | C) | administered cooperative system |
| | D) | manufacturer-sponsored cooperative |
| | E) | wholesaler-sponsored voluntary chain |
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| 14 | |
Which of the following statements about franchising is true? |
| | A) | Franchising is a type of corporate system. |
| | B) | Franchising is a form of backward integration. |
| | C) | Franchising is used to achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership. |
| | D) | Franchising is a type of administered vertical marketing system. |
| | E) | Franchising is the most visible variation of contractual systems. |
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| 15 | |
The density of distribution whereby a firm tries to place its products or services in as many outlets as possible is called __________ distribution. |
| | A) | intensive |
| | B) | extensive |
| | C) | selective |
| | D) | exclusive |
| | E) | concentrated |
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| 16 | |
Demeter is a line of perfumes that are not mixed scents as most perfumes are, but rather are one single scent. Users often have emotionally attachments to single scents and with the Demeter brand they can wear the scent that makes them feel happy. Originally. Demeter fragrances were only available at Henri Bendel department stores. This is an example of the use of: |
| | A) | disintermediation. |
| | B) | dual distribution. |
| | C) | horizontal integration. |
| | D) | direct distribution. |
| | E) | exclusive distribution. |
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| 17 | |
Keiretsu is the term for: |
| | A) | a full-line wholesaler in Korea. |
| | B) | a producer-customer direct channel in Japan. |
| | C) | selling agents and brokers in Japan. |
| | D) | vertical integration and a social and economic bond between producers and intermediaries in Japan. |
| | E) | a vertical integration of as well as a social and economic bond between producers and intermediaries in Hong Kong. |
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| 18 | |
Lab Safety Supply is a large distributor of MRO items and a channel captain. It requires its suppliers to meet strict quality standards. It now wants greater price breaks from its suppliers so it can promote lower prices in its newest catalog. The source of Lab Safety Supply's power is: |
| | A) | its economic influence. |
| | B) | its expertise. |
| | C) | its identification with a particular channel member. |
| | D) | its legitimate rights through contracts. |
| | E) | all of the above. |
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| 19 | |
In which of the following businesses are you most likely to find the channel members using tying arrangements? |
| | A) | a department store chain |
| | B) | an independent movie theater |
| | C) | a construction company |
| | D) | a fast-food franchise |
| | E) | a real estate agency |
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| 20 | |
Full-line forcing is a special kind of: |
| | A) | vertical marketing system. |
| | B) | dual distribution. |
| | C) | horizontal integration. |
| | D) | disintermediation. |
| | E) | tying arrangement. |
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