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Freight carriers often charge class rates as a reward for either regular business or a large shipment.

A) True
B) False

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Which of the following best represents the complete sequence of suppliers and activities that contribute to creating and delivery of merchandise?


A) Supply chain
B) Warehousing
C) Direct channeling
D) Materials handling system

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

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A wholesaler is an intermediary that takes title to the goods it handles and then distributes these goods to retailers,other distributors,or sometimes end consumers.

A) True
B) False

Correct Answer

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Peach,a cosmetic company,sells its products only through some independent representatives.To buy a Peach product,customers will have to contact a representative and place an order for the products they need.This information indicates that Peach:


A) uses a direct selling strategy.
B) relies on channel captains to sell its products.
C) employs category managers to sell its products.
D) uses truck jobbers to sell its products.

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

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Exclusive distribution allows greater market coverage than any other distribution strategy.

A) True
B) False

Correct Answer

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Business products tend to move through longer marketing channels than consumer products.

A) True
B) False

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Discuss the three types of vertical marketing system.

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The three types of vertical marketing sy...

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The dominant and controlling member of a marketing channel is called the channel captain.

A) True
B) False

Correct Answer

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Which of the following modes of transportation offers the most flexibility in handling?


A) Pipelines
B) Air freight
C) Water freight
D) Motor carriers

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

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The number of intermediaries through which a manufacturer distributes its goods in a particular market is referred to as _____.


A) distribution probability
B) distribution inertia
C) distribution intensity
D) distribution utility

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

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A VMS in which a single owner operates the entire marketing channel is called a(n) _____.


A) distribution channel
B) forward integration
C) logistics
D) dual distribution
E) direct selling
F) intensive distribution
G) selective distribution
H) exclusive distribution
I) tying agreement
J) backward integration
K) administered marketing system
L) corporate marketing system
M) contractual marketing system
N) private carriers
O) materials handling system
P) franchise
Q) common carriers
R) upstream management
S) suboptimization
T) downstream management

U) K) and P)
V) O) and Q)

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Which of the following categories of organizations is most likely to have the longest distribution channel?


A) Firms producing B2B products
B) Not-for-profit organizations
C) Firms producing nonperishable consumer goods
D) Service firms

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

Correct Answer

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Which of the following factors is most likely to be associated with a short marketing channel?


A) The products require little or no technical knowledge and servicing.
B) Manufacturer lacks adequate resources to perform channel functions.
C) The products are perishable.
D) Manufacturer serves a geographically dispersed potential trade area.

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

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Which of the following products is most likely to have a long distribution channel?


A) Mining equipments
B) Bars of soap
C) Dairy products
D) Drinks sold in a vending machine

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

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A distribution warehouse holds goods for moderate to long periods in an attempt to balance supply and demand for producers and purchasers.

A) True
B) False

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The term industrial distributor commonly refers to intermediaries in the business market that take title to the goods.

A) True
B) False

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Closed sales territories are exclusive geographic selling region of a distributor.

A) True
B) False

Correct Answer

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Which of the following distribution strategies seeks to distribute a product through a limited number of channels?


A) Discriminative distribution
B) Associative distribution
C) Selective distribution
D) Intensive distribution

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

Correct Answer

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A standard rate for a specific commodity moving between any pair of destinations is known as a _____ rate.


A) going
B) class
C) special
D) repo

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

Correct Answer

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The traditional channel for consumer goods proceeds from producer to wholesaler to retailer to user.

A) True
B) False

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