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Chapter 15 - Distributing Products
155. Railroads are an energy-efficient mode of transporting many types of goods.
156. Although air transport currently accounts for only a small percentage of all shipments,
it has become a critical mode in many industries.
157. The air freight industry is starting to focus on global distribution.
158. The use of multiple modes of transportation to complete a single long-distance
movement of freight is known as multi-carrier shipping.
159. Services that specialize in intermodal shipping are known as intermodal marketing
companies.
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177. Those organizations that assist in the movement of goods and services from producer
to industrial and consumer users are known as:
A. directed marketers.
B. distributive specialists.
C. marketing intermediaries.
D. supplementary marketers.
178. A(n) ____________ consists of the marketing intermediaries that transport and store
goods as they move through their path from producer to final user.
A. channel of distribution
B. marketing network
C. input-output matrix
D. mode of distribution
179. A _________ is a marketing intermediary that sells products to other organizations.
A. wholesaler
B. retailer
C. disintermediary
D. jobber
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194. Sharp Focus Cameras is facing intense competitive pressure. Top marketing managers
are looking for ways to cut costs. They are considering a plan to cut distribution costs by
eliminating marketing intermediaries from the channel of distribution. If Sharp Focus
carries out this plan, it is likely to find that:
A. most of the marketing functions performed by marketing intermediaries are helpful, but
they aren't really necessary.
B. as the producer of the products, it will be able to perform the same functions more
efficiently.
C. it will be unable to perform the functions as efficiently as they were performed by the
marketing intermediaries.
D. telemarketing will become the only viable means of distributing its products.
Feedback: Marketing intermediaries can be eliminated, but their functions still must be
performed. Manufacturers and final customers may be able to perform these functions without
intermediaries. However, because intermediaries specialize in the marketing functions they
perform, they often can provide them more efficiently and effectively than producers or
consumers, thus creating value. The elimination of marketing intermediaries will not only
eliminate the costs they add, it will also eliminate the value they create.
195. __________ is the value or want-satisfying ability that is added to products by
organizations that make the product more useful or accessible to consumers.
A. Utility
B. Applicability
C. Functionality
D. User friendliness
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205. Marketing intermediaries can provide _________ utility by offering customers
affordable credit, free delivery, and product guarantees.
A. possession
B. information
C. form
D. promotion
Feedback: Marketing intermediaries provide possession utility when they do what is
necessary to transfer ownership from one party to another such as providing credit. Other
activities that contribute to possession utility include delivery, installation, and follow-up
services.
206. Stores that remain open 24 hours a day, seven days a week are providing _________
utility to their customers.
A. possession
B. time
C. service
D. schedule
Feedback: Marketing intermediaries provide time utility by providing products at times that
are convenient to their customers.
