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Exam 15: Distributing Products

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Question 131

True/False

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Franchise systems, wholesaler-sponsored chains, and retail cooperatives are all forms of contractual distribution systems.

A) True
B) False

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Question 132

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In multilevel marketing, salespeople not only sell the product, they also recruit other people to sell the product.

A) True
B) False

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Question 133

Multiple Choice

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Which of the following statements identifies a key advantage of direct marketing?

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

________ warehouses are used to hold products for a relatively long time.

Retail distribution strategies can take three different forms. Identify the three forms and give examples of products that would be marketed using each strategy.

Third-party logistics is the term used to describe the use of outside firms to help move goods from here to there.

Freight forwarders are particularly useful to large firms who must ship very large quantities on short notice.

One way marketing intermediaries improve marketing efficiency is by reducing the number of exchange relationships necessary to move goods through the channel of distribution.

Foot Friends, a high-quality socks and stockings company, makes sales by sending catalogs to customers and offering them a toll-free telephone number so that they can call in their orders 24-hours-a-day, any day of the year. Foot Friends uses telemarketing.

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

________ 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.

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

Morgner Heating and Cooling offers customers who buy air conditioners and furnaces free delivery and low installation charges. The company also offers a free follow-up inspection of the new equipment one month after it is installed. These services are ways that Morgner provides its customers with ________ utility.

A key distinction between agents and brokers is that agents tend to maintain long-term relationships with the people they represent whereas brokers are hired on a temporary basis.

There are three major types of warehouses: centralized, dispersed, and mode-specific.

Wholesalers are marketing intermediaries who sell goods or services to ultimate consumers.

There are four specific types of channel systems available to companies that tie firms together in a unified way.

Direct selling is a distribution strategy that makes extensive use of websites and phone sales.

The most expensive mode of transportation is