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In a(n) __________ distribution system the producer manages all of the marketing functions at the retail level.


A) administered
B) contractual
C) conglomerate
D) master limited

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

Correct Answer

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Clay Gates is a distribution specialist who has been looking at ways to improve the flow of parts and materials from his company's warehouses to the production line, and the movement of work in process throughout the company's factories. These efforts suggest that Clay's primary interest is in improving his company's inbound logistics.

A) True
B) False

Correct Answer

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Marketers normally provide form, time, place, information and service utility, but they are seldom involved in providing possession utility.

A) True
B) False

Correct Answer

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____________ put many small shipments together to create a single large shipment that can be transported more cost-efficiently to the final destination.


A) Containerized shippers
B) Freight consolidators
C) Mixed merchandisers
D) Freight forwarders

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

Correct Answer

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In multilevel marketing upliners recruit downliners and receive a commission on the sales their downliners make.

A) True
B) False

Correct Answer

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Telemarketing is the sale of goods and services by telephone.

A) True
B) False

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Drop shippers are limited function wholesalers that typically put together many small shipments to form a single larger shipment.

A) True
B) False

Correct Answer

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_____________ shipping uses several different modes of transportation to complete a single long-distance movement of freight.


A) Intermodal
B) Multilevel
C) Flexmode
D) LAST (land-air-sea transport)

E) A) and D)
F) All of the above

Correct Answer

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Although drop shippers own merchandise they have shipped to buyers, they do not actually handle, stock, or deliver this merchandise themselves.

A) True
B) False

Correct Answer

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Which of the following statements about channels of distribution is most accurate?


A) Channels of distribution always begin with a manufacturer and end with consumers, and always have one or more marketing intermediaries in between.
B) Channels of distribution always include retailers, but they may or may not also include wholesalers.
C) The fewer the marketing intermediaries in a channel of distribution, the more efficient the channel is likely to be.
D) Some channels of distribution include marketing intermediaries, while in others a manufacturer sells directly to the final consumer.

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

Correct Answer

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Traditional retailers can stay competitive with online retailers by being part of a unified system of distribution.

A) True
B) False

Correct Answer

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Marketing intermediaries add ________ utility to products by having them available when consumers want them.


A) time
B) allocative
C) response
D) form

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

Correct Answer

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A distribution warehouse stores products for relatively long periods of time.

A) True
B) False

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Soundworthy Stereo is a producer of high-quality speakers. The company sells its products through a few preferred retailers in any geographic area. Soundworthy uses a selective distribution strategy.

A) True
B) False

Correct Answer

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

A) True
B) False

Correct Answer

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A full-service wholesaler will provide suppliers with market information they can't afford or can't obtain themselves.

A) True
B) False

Correct Answer

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Telemarketing, catalog sales, and online shopping are all examples of direct marketing.

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) All of the above
F) None of the above

Correct Answer

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Agents and brokers and wholesalers are types of marketing intermediaries.

A) True
B) False

Correct Answer

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__________ manages the movement of raw materials, parts, work in progress, finished goods and related information throughout the supply chain, as well as managing the return of goods when necessary and the recycling of goods when appropriate.


A) Distribution planning
B) Multilevel marketing
C) Supply chain management
D) Distributional strategy

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

Correct Answer

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