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Exam 15: Distributing Products

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Question 31

True/False

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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

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Question 32

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Discount stores, department stores, supermarkets, and specialty stores are all among the major types of retail stores.

A) True
B) False

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Question 33

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Which of the following statements about kiosks and carts is the most accurate?

The need for Lite Bite to recall its almond chocolate bars suggests that it had to be very concerned with

Seth supplies shelves of magazines to supermarkets and drug stores. He keeps title to the goods until they are sold and then splits the profits with the retailer. Seth is a drop shipper.

Rack jobbers furnish racks or shelves full of merchandise to retailers and keep title to these goods until they are sold.

A full-service wholesaler will provide suppliers with market information.

Zara is the publisher of "Luxe Ladies Magazine," which is a publication targeted to Millennial and Gen Z women. Because it is a small, new publication, some of the larger bookstores, convenience stores, and newsstands are not agreeing to distribute the magazine. Zara is very concerned by this trend, because she believes that her publication, like most magazines, needs ________ distribution in order to succeed.

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

In multilevel marketing, salespeople have little incentive to recruit new salespeople, because the new salespeople may compete against them and reduce their income.

Vandelay Industries has discovered a defect in one of its products that may result in injury to users. The company believes it must quickly develop and implement a recall program. It is likely that Vandelay soon will be placing a great deal of emphasis on

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

________ are merchant wholesalers who perform all of the distribution functions.

What is logistics? Describe the types of issues you might deal with if you specialized in logistics.

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

Some freight forwarders offer warehousing and customs assistance.

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

Fernando and Mariana solicit orders for lumber from area wholesalers and retailers specializing in building supplies and arrange to have the orders shipped directly from nearby logging companies. Fernando and Mariana operate as drop shippers.

Merchant wholesalers do not take title to the goods they handle.

Eastern Spice Company was unable to get retailers to agree to a contractual arrangement to cooperate in the distribution process, so it took over all of the marketing functions for its products at grocery stores. The grocers like this arrangement because Eastern Spice provides outstanding marketing support for its products. Eastern Spice is using a(n) ________ system to distribute its products.