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Direct selling has all but disappeared as a major form of nonstore retailing because the trend toward two-income households means fewer opportunities for selling in the home.

A) True
B) False

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The two main types of merchant wholesalers are storage wholesalers and distribution wholesalers.

A) True
B) False

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________ brings raw materials, packaging, other goods and services, and information from suppliers to producers.


A) Freight forwarding
B) Inbound logistics
C) Materials handling
D) Supply side logistics

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

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What is a wholesaler? Describe the difference between merchant wholesalers and agents and brokers. Identify three types of limited-function wholesalers.

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A wholesaler makes business-to-business ...

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Which of the following firms would be most likely to use a selective distribution strategy for its products?


A) newspaper publisher
B) maker of designer men's suits
C) super luxury car manufacturer
D) maker of snack foods such as potato chips and pretzels

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

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One thing that franchise systems, wholesaler-sponsored chains, and retail cooperatives have in common is that they are all


A) distribution systems in which producers also act as intermediaries in the distribution process.
B) dependent on multilevel marketing strategies.
C) forms of distribution systems in which a single firm owns all of the organizations involved in distributing the product.
D) forms of contractual distribution systems.

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

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Delivery, installation, and follow-up services are the most common ways that marketing intermediaries provide information utility.

A) True
B) False

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Wholesaler-sponsored chains consist of stores that are all owned by a single corporation.

A) True
B) False

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Franchise systems are one type of ________ distribution system.


A) corporate
B) wholesale
C) contractual
D) administered

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

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The two basic types of warehouses are


A) public and private.
B) railside and portside.
C) storage and distribution.
D) seasonal and long term.

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

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Supply chain management manages the movement of relevant information as well as the movement of parts and finished goods through all organizations involved in the supply chain.

A) True
B) False

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

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Marketing intermediaries concentrate on providing mainly form, time, and place utility, while producers focus on the provision of possession, information, and service utility.

A) True
B) False

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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

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Although SellSmart brings together buyers and sellers and helps negotiate exchanges, it does not actually take title to any of the goods being traded. SellSmart would be classified as an agent or broker.

A) True
B) False

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Identify and describe the four basic types of distribution systems that are used to link firms in a formal relationship.

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The four basic types of systems used to ...

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Some websites are trying to improve their service by providing assistance from a real person, especially through social media.

A) True
B) False

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

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Currently, in the United States the greatest volume of goods and services is shipped by


A) trucks and vans.
B) pipelines.
C) rail.
D) water.

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

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A value of shipping by truck is that trucks can deliver small shipments to remote locations.

A) True
B) False

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