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Retail organizations employ more than 11 million people in the U.S.

A) True
B) False

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Chris Cole is a salesperson for Green Scene Lawn Care products.Chris' job requires him to sell Green Scene products,but he is also expected to recruit more salespeople for the company.He will earn a commission on all of the sales earned by the salespeople he recruits.Green Scene is using a retail distribution strategy known as multilevel marketing.

A) True
B) False

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Producers who use an exclusive distribution strategy for their products can expect retailers who carry the products to do which of the following?


A) Carry a large inventory of their products
B) Provide limited service and delivery for their products
C) Sell their products at substantially discounted prices
D) Pay attention to the multiple competing brands that they carry

E) All of the above
F) B) and C)

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The part of logistics that is most concerned with the flow of goods as well as work in process within the manufacturing firm is:


A) inbound logistics.
B) materials handling.
C) reverse logistics.
D) outbound logistics.

E) None of the above
F) All of the above

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Water transportation is the least expensive way to send goods overseas.

A) True
B) False

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Water transportation has benefits and drawbacks;for example it is inexpensive but slow.

A) True
B) False

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Those organizations that assist in the movement of goods and services from producer to industrial and consumer users are known as:


A) directed marketers.
B) distributive specialists.
C) marketing intermediaries.
D) supplementary marketers.

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

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In the terminology of multilevel marketing,which of the following statements about the relationship between upliners and downliners is most accurate? In multilevel marketing,


A) upliners are intermediaries who deal directly with final customers,while downliners are intermediaries who coordinate the transportation and storage services the upliners need to move the goods they sell through the channel of distribution.
B) upliners are salespeople who act as independent contractors,earning commissions on their own sales and also on the sales of downliners,who are additional salespeople that they recruit.
C) upliners sell through electronic retailing arrangements,while downliners use more traditional methods of retail selling.
D) upliners use intensive distribution strategies to sell a good,while downliners use either a selective or exclusive distribution strategy to sell the same type of good.

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

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

A) True
B) False

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Some marketing intermediaries make both wholesale and retail sales.

A) True
B) False

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In the distribution process,the largest percentage of the retail price goes to:


A) profits.
B) warehouse costs.
C) labor.
D) transportation.

E) A) and B)
F) A) and C)

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Direct selling is a distribution strategy that makes extensive use of the Internet and telephone.

A) True
B) False

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At Stockman's Butcher Shop the butchers will hand cut steaks to the thickness their customers specify and trim off the excess fat.This extra service provides ________ utility.


A) possession
B) form
C) secondary
D) alterational

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

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An) ______________ distribution strategy uses only one retail outlet in a given geographic are A.


A) selective
B) restrictive
C) exclusive
D) solitary

E) B) and D)
F) A) and B)

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Cash-and-carry wholesalers are limited-function wholesalers that serve mostly smaller retailers with a limited assortment of products.

A) True
B) False

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The main difference between storage warehouses and distribution warehouses is that storage warehouses are relatively small,specialized facilities used to store one particular type of good for short periods while distribution warehouses are large facilities used to store a wide variety of goods for longer periods of time.

A) True
B) False

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A common trait of corporate distribution systems,administered distribution systems,contractual distribution systems and supply chains is that they all:


A) are arrangements which seek to distribute goods more efficiently by eliminating most functions performed by marketing intermediaries.
B) seek to consolidate and control the distribution system by having one firm own all of the distribution functions.
C) attempt to improve the efficiency of distribution systems by linking the firms together in a formal relationship.
D) have been replaced by more efficient distribution systems relying heavily on online linkages.

E) B) and C)
F) A) and C)

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Marketers claim that intermediaries add value to the channel of distribution that outweighs the cost.

A) True
B) False

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Marketing intermediaries:


A) add value that exceeds the cost of their services.
B) add cost that exceeds the value they provide.
C) increase the number of exchange relationships in the channel.
D) complicate the distribution process.

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

Correct Answer

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In an) ___________,independently owned and managed stores sign an agreement to use the same name,participate in chain promotions,and cooperate as a unified system.


A) administered distribution system
B) corporate distribution system
C) wholesaler-sponsored chain
D) cash-and-carry chain

E) A) and B)
F) A) and C)

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