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Unlike merchant wholesalers, ________ never actually own the goods they help to distribute.


A) rack jobbers
B) retailers
C) cash-and-carry wholesalers
D) agents and brokers

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

Correct Answer

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________ is the sale of goods and services by telephone.


A) Multilevel marketing
B) Teleselling
C) Telemarketing
D) Direct marketing

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

Correct Answer

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________ deals with moving finished products and information to business buyers and ultimate consumers.


A) Inbound logistics
B) Outbound logistics
C) Final stage logistics
D) Wholesale distribution

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

Correct Answer

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

A) True
B) False

Correct Answer

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Which of the following statements about service utility is most accurate? Service utility is


A) becoming less important to retailers in this age of self-service marketing.
B) the one type of utility that online firms provide more efficiently than traditional retailers.
C) more likely to be provided by wholesalers than by retailers.
D) becoming crucial to traditional retailers as they try to prevent their customers from defecting to firms using direct marketing.

E) B) and C)
F) C) and D)

Correct Answer

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Logistics involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption.

A) True
B) False

Correct Answer

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Electronics Emporium, a chain of stores that specializes in devices and gadgets incorporating cutting-edge technologies, has over 150 stores in large cities throughout the Southeast and Midwest. Electronics Emporium picked the locations of its stores so that most customers living in upper middle class and wealthy neighborhoods can get to a location in under 15 minutes. Electronics Emporium is providing its customers with


A) form utility.
B) time utility.
C) place utility.
D) information utility.

E) C) and D)
F) B) and C)

Correct Answer

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

A) True
B) False

Correct Answer

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Candy, gum, and popular magazines are usually distributed using a selective distribution strategy.

A) True
B) False

Correct Answer

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The entire collection of organizations that move goods and services from the source of raw materials to the final consumer is referred to as the supply chain.

A) True
B) False

Correct Answer

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

A) True
B) False

Correct Answer

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According to the Connecting Through Social Media box, McDonalds's team of social media professionals used to field constant complaints about the lack of breakfast options on the all-day menu. Upon hearing of the large demand for all-day breakfast, McDonald changed its menu and added to its ________ utility.


A) time
B) possession
C) form
D) information

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

Correct Answer

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Producers normally provide form utility, but retailers sometimes also provide this type of utility.

A) True
B) False

Correct Answer

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________ would probably be distributed using an intensive strategy.


A) Tablets
B) HDTVs
C) Men's suits
D) Magazines

E) B) and D)
F) B) and C)

Correct Answer

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Pipelines move liquid products very efficiently and can even move products like coal.

A) True
B) False

Correct Answer

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A(n) ________ distribution strategy distributes a product through only a preferred group of retailers in a given area.


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

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

Correct Answer

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


A) form utility.
B) possession utility.
C) time utility.
D) information utility.

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

Correct Answer

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Most marketing intermediaries have survived in the past because consumers were unaware of how much these companies add to the cost of distributing goods.

A) True
B) False

Correct Answer

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Marshall Manufacturing wants to ship a large quantity of its goods across the country. They have contacted Get Gone Shipping, Inc., to find out what the shipment would cost. Get Gone has shown Marshall how it can arrange to use a combination of barges, trains, and trucks to complete the shipment at a low cost. Get Gone's strategy is an example of


A) online shipping.
B) intermodal shipping.
C) supply chain shipping.
D) multilevel distribution.

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

Correct Answer

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Though Hammer's Hardware stores are independently owned, operated, and managed, they have signed an agreement to participate in chain promotions, and cooperate as a unified system of stores. The Hammer's Hardware stores are using a distribution system known as a wholesaler-sponsored chain.

A) True
B) False

Correct Answer

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