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Exam 15: Distributing Products

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Question 51

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Even though all of the hardware stores that operate under the name of Hardie's Hardware are independently owned and managed,they have signed an agreement to participate in chain promotions,and cooperate as a unified system of stores.The Hardie's Hardware stores are using a distribution system known as a wholesaler-sponsored chain.

A) True
B) False

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Question 52

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Imaginex Toys,Inc.produces toys designed to stimulate the imaginations of young children.In order to control all of the marketing operations,Imaginex owns all of the organizations in the channel of distribution for its toys,including a chain of Imaginex retail stores.The approach taken by Imaginex is known as an administered distribution system.

A) True
B) False

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Question 53

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Rack jobbers sell goods on consignment,splitting the profits from their sales with a retailer.

Candy,gum,cigarettes,and popular magazines are usually distributed using a selective distribution strategy.

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

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

In today's competitive market environment,traditional retailers will need to put more emphasis on providing form and place utility,and less emphasis on service utility.

An advantage of a selective distribution strategy is that consumers are able to find a popular product at a wide variety of retailers.

Logistics is concerned:

Suppose that eight bakeries each tried to sell their products directly to seven supermarkets.The total number of exchange relationships that would be established is:

What is utility? What are the major types of utility? Give an example of how marketing intermediaries can provide each type of utility.

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

A problem with the corporate distribution system is that the manufacturer has very little control over the operations of the retailers and other marketing intermediaries in the system.

A common trait of corporate distribution systems,administered distribution systems,contractual distribution systems and supply chains is that they all:

Jessica Talmadge is a real estate agent who brings together the buyers and sellers of houses and commercial property.Jessica helps the parties negotiate the terms and conditions of real estate sales,but she does not take title to the property,provide credit,or assume any risks associated with the exchanges she helps negotiate.Because Jessica provides only limited services,she is not a true marketing intermediary.

Marketing costs make up less than 25 percent of the total cost of the goods consumers buy.

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

In multilevel marketing,independent contractors who sell a product can increase their own incomes by recruiting _________ to also sell the product.

Once the final customer has taken title to a good,marketing intermediaries no longer are involved in providing utility to the customer.

In retail cooperatives,the members of the distribution system are bound to cooperate by a contractual agreement.