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100 Cards in this Set
- Front
- Back
A firm that brings in outside companies to accomplish supply chain activities is using ________.
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A) insourcing |
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Which of the following includes all the activities necessary to convert raw materials into a good or service and put it in the hands of the consumer or business customer?
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A) the supply chain |
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Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials to components to final products that are delivered to final buyers.
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A) supply chain management |
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When a company uses ________, it brings in an external company to run some of its essential operations.
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B) insourcing |
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Which of the following is the series of firms or individuals that facilitate(s) the movement of a product from the producer to the final customers?
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D) the channel of distribution |
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Through the practice of insourcing, a company brings in an external company to run its ________.
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C) essential operations |
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Producers benefit from using intermediaries because they ________.
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A) offer greater efficiency in making goods available to target markets |
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At minimum, a channel of distribution consists of a producer and a(n) ________.
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E) customer |
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Which of the following is the term for the firms and individuals who help move a product to the consumer or the business user?
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C) channel intermediaries |
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Channels of distribution provide which of the following?
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A) time, place, and ownership utility |
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Wholesalers and retailers purchase large quantities of goods from manufacturers but sell only one or a few at a time to many different customers. This process is called ________.
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B) breaking bulk |
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Wholesalers and retailers create efficiencies in the flow of goods from producer to end consumer by ________ when they provide a variety of products in one location.
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A) creating assortments |
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Functions provided by channel intermediaries that make the purchase process easier for customers and manufacturers are referred to as ________ functions.
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B) facilitating |
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Offering credit to buyers and providing refund services for products are both examples of ________ functions provided by channel intermediaries.
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D) facilitating |
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Channel members can help producers by identifying customer complaints, customer preferences, and new competitors in the market. These are all examples of the ________ function of channel intermediaries.
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A) communication |
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Retailers handle the financial exchange when a customer pays for a product. This is an example of the ________ function of channel intermediaries.
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D) transaction |
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Through a process of ________, traditional intermediaries are being eliminated as many companies question the value added by layers in the distribution channel.
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B) disintermediation |
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Which of the following describes a comprehensive approach to collecting, organizing, storing, and retrieving a firm's information assets?
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B) knowledge management |
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The theft and unauthorized repurposing of intellectual material via the Internet is called ________.
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C) online distribution piracy |
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Intermediaries that do business with many different manufacturers and many different customers are most accurately referred to as ________.
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A) interdependent intermediaries |
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Limited-service merchant wholesalers are less likely than full-service merchant wholesalers to do which of the following?
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D) offer marketing assistance or delivery for the products they sell |
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Which group of independent intermediaries can be divided into the two broad types of full-service and limited-service?
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E) merchant wholesalers |
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An intermediary who ________ legally owns the goods being handled.
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B) takes title |
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The owner of a grocery store wants to have non-food items delivered, priced, displayed and inventoried by a wholesaler. Which type of wholesaler best fits the owner's needs?
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D) rack jobber |
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Truck jobbers are limited-service merchant wholesalers who would most likely handle which of the following?
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B) fruits and vegetables |
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Mail-order wholesalers are associated with all of the following EXCEPT which one?
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C) allowing shipment prior to receiving payment |
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Drop shippers do all of the following EXCEPT which one?
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B) take actual possession of the merchandise |
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Rack jobbers are limited-service merchant wholesalers who would most likely handle which of the following?
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E) magazines |
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A(n) ________ brings buyers and sellers together and facilitates transactions, typically charging a fee after a transaction is completed.
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B) broker |
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Which of the following are intermediaries that receive fees for facilitating transactions in markets such as real estate, food, and used equipment in which there are a lot of small buyers and sellers?
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D) merchandise brokers |
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Manufacturers' ________, also called manufacturers' representatives, represent a buyer or seller on an ongoing basis.
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C) agents |
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Which of the following statements about merchandise brokers is true?
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B) Brokers never take title to the merchandise they sell. |
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Which of the following statements about manufacturers' agents is true?
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C) Manufacturers' agents are compensated with commissions based on a percentage of what they sell. |
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A commission merchant would most likely sell which of the following?
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A) agricultural products |
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Which of the following is true about sales branches, sales offices, and manufacturers' showrooms?
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A) They are all manufacturer-owned intermediaries. |
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Which of the following are manufacturer-owned facilities that carry inventory and provide sales and services to customers?
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B) sales branches |
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Which of the following are manufacturer-owned facilities that do NOT carry inventory but provide selling functions for the manufacturer in a specific geographic area?
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C) sales offices |
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Ed Barney owns a chain of small gift shops. Before buying merchandise to carry in his store, Barney can visit a ________ where he can examine a manufacturer's products before he stocks his stores.
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B) manufacturer's showroom |
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To a producer of goods, a greater number of channel levels means ________.
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B) less control |
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The producer-retailer-consumer channel is ________.
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C) the shortest indirect channel |
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In business-to-business channels, the functions of a merchant wholesaler are performed by a(n) ________.
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E) industrial distributor |
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Which of the following statements about business-to-business channels is true?
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A) Direct channels are more common in business-to-business markets than consumer markets. |
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Which of the following is in place when a producer, dealer, wholesaler, retailer, or customer interacts with more than one type of channel?
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A) dual or multiple distribution system |
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Which of the following is a distribution system that uses different channels and communication methods to reach and serve a target market?
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C) a hybrid marketing system |
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Which of the following is most likely to force a manufacturer to pay a slotting allowance?
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C) a large retail chain |
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Which of the following should be the first step in distribution planning?
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C) developing distribution objectives |
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Once an organization has developed its distribution objectives, it should next ________.
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E) evaluate the internal and external environments |
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Conventional distribution channels consist of one or more ________ producers, wholesalers, and retailers.
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A) independent |
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Which of the following is NOT a true statement about conventional marketing systems?
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D) Members of conventional marketing systems do not work toward the same broad goals. |
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A channel consisting of one or more independent producers, wholesalers, or retailers, each seeking to maximize its own profits with little concern for other channel members, is a(n) ________.
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B) conventional marketing system |
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A corporate VMS has the advantage of controlling the entire distribution chain under ________.
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B) single ownership |
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What are the three major types of vertical marketing systems?
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C) corporate, contractual, and administered |
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Leadership in which type of marketing system is assumed not through common ownership or contractual ties but through the size and power of a single dominant channel member?
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B) an administered vertical marketing system |
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Which of the following statements about a vertical marketing system (VMS) is true?
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A) A VMS is a channel in which there is cooperation among channel members at two or more different levels of the channel. |
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A retailer cooperative is a form of a(n) ________ vertical marketing system (VMS).
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E) contractual |
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Burger King, Holiday Inn, Avis, and H&R Block tax service are all franchises, which means they are also members of a(n) ________ vertical marketing system (VMS).
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E) contractual |
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In a ________, two or more companies at the same channel level join together to develop a new marketing opportunity.
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C) horizontal marketing system |
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When determining the number of channel members to use at each level, three strategies are available: intensive, exclusive, and ________ distribution.
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B) selective |
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Which type of distribution is used when the producer wants to place its products with more than one, but fewer than all, of the intermediaries who are willing to carry its products?
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C) selective |
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Which type of distribution means limiting distribution of a product to a single outlet in a particular region?
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A) exclusive |
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Selective distribution strategy is most suitable for which consumer product category?
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C) shopping products |
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Which of the following is another name for the channel leader?
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D) channel captain |
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Which of the following is the process of designing, managing, and improving the movement of products through the supply chain?
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A) logistics |
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Marketing logistics involves which of the following types of distribution flows?
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B) outbound, inbound, and reverse |
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During the stage of ________ activities, the company receives materials it needs to manufacture its products.
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A) inbound logistics |
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Which stage of activity in logistics involves shipping the product out to customers?
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C) outbound logistics |
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Physical distribution activities include all of the following EXCEPT which one?
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E) order getting |
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The difference between distribution centers and storage warehouses is that distribution centers are designed to ________.
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C) perform other functions, such as breaking bulk |
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What type of utility does warehousing provide to consumers by holding onto products until consumers need them?
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A) time |
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Which of the following do manufacturers typically NOT use as a factor in deciding which mode of transportation to use for a product?
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D) responsiveness |
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The fastest and most expensive mode of transportation is ________.
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E) air |
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Which of the following is a logistics activity that involves developing and implementing a process to ensure the firm always has sufficient goods available to meet customers' demands--no more and no less?
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B) inventory control |
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To reduce inventory management costs, many companies use a system called ________, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation.
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A) just in time (JIT) |
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Through the use of ________, a company is able to know exactly where a product is located within the distribution channel.
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B) RFID |
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The perfect order measurement calculates which of the following?
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E) the error-free rate of each stage of a purchase order |
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A new company called LidRock is prospering because it figured out a novel way to get music, video games, and movies into the hands of consumers: on mini-CDs tucked into the lids of soft drinks. LidRock is focusing on which one of the four Ps?
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D) place |
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Which of the following is the best example of a direct channel?
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D) Farmer Mintz sells corn to the Hughes household who will eat it for supper. |
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A husband and wife have a small store that is located at a beach resort. The only products sold at this store are hand-dipped and sculptured candles made by this couple. Marketers would classify the channel of distribution for these candles as ________.
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B) direct |
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Steve's Physco Skates sells its products to Walmart, who then sells them to the consumer. This is an example of a(n) ________.
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C) indirect marketing channel |
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Proud Pets, a producer of clothing and accessories for pets, has recently partnered with a regional chain of pet stores. Which of the following would Proud Pets be LEAST likely to expect from its new channel member?
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D) identifying raw materials and other productive inputs |
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Burt can visit his local hardware store and buy one 4-inch paint brush and not the case of 24 brushes that the retailer had to buy. This is an example of how the channel of distribution facilitates ________.
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C) breaking bulk |
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Nita can visit her local supermarket and buy a dozen roses, a gallon of milk, two birthday cards, a bag of cat litter, and a pan for roasting a turkey. This illustrates how channels of distribution benefit consumers by ________.
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B) creating assortments |
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Which of the following is NOT a channel intermediary?
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A) the supplier of the raw materials used to make glass windows |
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Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from Chemical, Inc., which then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store. Chemical, Inc. is an example of which of the following?
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E) a wholesaling intermediary |
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A business buys candy and gum from many different manufacturers and then resells the items to a variety of different stores. The business is an example of a(n) ________.
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A) independent intermediary |
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You own an independent store in your neighborhood and like to offer fresh seafood in your meat display case. Which type of wholesaler is likely to best serve you?
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A) cash-and-carry wholesaler |
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Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from Chemical, Inc., then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store. Chemical, Inc. took title to the pool chemicals but never actually took possession of them. Chemical, Inc. is an example of a ________.
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A) drop shipper |
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An independent hardware retail store 100 miles from the nearest city of more than 5,000 people but providing needed supplies for area ranchers would most likely buy its plumbing and electrical supplies through a ________.
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C) mail-order wholesaler |
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Which of the following is an example of a dual distribution system?
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B) J.C. Penney's catalog and retail store sales |
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Increasingly commonplace today is the appearance of two different franchise chains under the same roof, such as Pizza-Hut and Taco Bell. This is an example of a(n) ________ marketing system.
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E) horizontal |
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Chewing gum is stocked in many outlets in the same market or community; in fact, it is placed in as many outlets as possible. This is an example of ________ distribution.
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D) intensive |
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Which of the following is most likely intensively distributed?
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D) Coca-Cola |
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Which of the following is most likely exclusively distributed?
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A) BMW automobiles |
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Tiffany & Co jewelry can only be found in a limited number of intermediaries. This is an example of ________ distribution.
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A) exclusive |
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Which type of vertical marketing system (VMS) gives an organization more control over both supply sources and resale of its products, while at the same time increasing the organization's capital investment and its fixed costs?
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D) corporate |
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A brand of variety stores is part of a wholesaler-sponsored voluntary chain. This means these retailers are members of a(n) ________ vertical marketing system (VMS).
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E) contractual |
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At some catalog retailers, employees on roller skates called pickers are handed a printout of the products a customer wants, and then the pickers skate through large warehouses accumulating the desired products into one central location. The pickers are engaged in ________.
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C) materials handling |
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Jewels for the Rich and Famous sells very exclusive jewelry with a minimum price of $25,000 to customers around the world. Speed of delivery to distant markets is a must. Management should use ________ as its main carrier.
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B) air |
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Grayville Rock and Gravel, located in a seaport town, sells rock, gravel, and sand to local markets. It has just been awarded a contract with a company 500 miles down the coast. Management should consider switching from truck to ________ transport to save money.
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B) railroads |
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Which of the following modes of transportation would most likely be used to quickly haul lettuce from California, where it was grown, to markets in Nevada?
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A) trucks |