Chapter 15 – Distributing Products
211. At Stockman’s Butcher Shop the butchers will hand cut steaks to the thickness their
customers specify and trim off the excess fat. This extra service provides ________
utility.
A. possession
B. form
C. secondary
D. alterational
Feedback: Form utility is provided when products or raw materials are changed so that they
are in a more desirable or useful form for consumers. Producers normally provide form utility,
but marketing retailers, such as a retail butcher, can also provide this type of utility.
212. ____________ wholesalers are independently owned and take title to the goods they
handle.
A. Full service broker
B. Merchant
C. Agent
D. Primary
213. The two basic types of merchant wholesalers are:
A. full-service wholesalers and limited-function wholesalers.
B. functional wholesalers and distributive wholesalers.
C. independent wholesalers and subsidiary wholesalers.
D. capital wholesalers and full-value wholesalers.
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223. Which of the following statements provides the most accurate distinction between an
agent and a broker? Agents:
A. represent final buyers while brokers represent marketing intermediaries.
B. represent one manufacturer in a large sales area, while brokers represent several
different manufacturers in a smaller area.
C. develop a long-term relationship with the people they represent, while brokers are
usually hired on a temporary basis.
D. take title to the goods they help distribute, while brokers never assume ownership of
the products they distribute.
Feedback: Both agents and brokers help negotiate exchanges between buyers and sellers.
Agents and brokers are also similar in that neither takes title to the goods they distribute. The
major difference is that agents maintain long-term relationships, while brokers are used on a
temporary basis.
224. Rita Sauer stocks several local supermarkets and discount stores with Luminaire
Cosmetics. She sets up displays of various cosmetic products carrying the Luminaire
brand name, and sells the goods on consignment, sharing any profits on the sales with the
retailer. Rita is a:
A. cash-and-carry wholesaler.
B. truck jobber.
C. broker.
D. rack jobber.
Feedback: A rack jobber is a wholesaler that furnishes racks or shelves of merchandise to
retailers, handles the display, and splits the profits with the retailer.
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230. The most likely type of utility that’s provided by convenience stores is:
A. form.
B. place.
C. information.
D. service.
231. Discount stores owe much of their success to a competitive strategy based on:
A. low prices.
B. extra service.
C. special credit arrangements.
D. a wide selection in a limited number of categories of goods.
232. Retailers such as jewelry stores, shoe stores, and bicycle shops are:
A. department stores.
B. discount stores.
C. warehouse clubs.
D. specialty stores.
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239. Which of the following firms would be most likely to use a selective distribution
strategy for its products?
A. Newspaper publisher
B. Maker of name brand men’s suits
C. Super luxury car manufacturer
D. Maker of snack foods such as potato chips and pretzels
Feedback: Newspapers and snack foods are convenience goods, so their producers would use
intensive distribution. Makers of luxury cars normally have a single dealership in a local area,
so they tend to use exclusive distribution. Manufacturers of shopping goods, such as name
brand suits, often employ a selective distribution strategy.
240. Producers who use an exclusive distribution strategy for their products can expect
retailers who carry the products to do which of the following?
A. Carry a large inventory of their products
B. Provide limited service and delivery for their products
C. Sell their products at substantially discounted prices
D. Pay attention to the multiple competing brands that they carry
Feedback: A retailer that has the exclusive right to sell a manufacturer’s products has an
incentive to carry a larger inventory, provide exceptional service, and pay more attention to
that manufacturer’s brand than to other brands.
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246. ___________ is the sale of goods and services by telephone.
A. Cel-tailing
B. Teleselling
C. Telemarketing
D. Direct marketing
247. Vending machines are most often used to sell:
A. shopping goods.
B. convenience goods.
C. specialty goods.
D. inferior goods.
248. Mall owners like to have __________ located along the walkways of their malls,
because they create a marketplace type of atmosphere.
A. cartels
B. storettes
C. kiosks
D. minimarts
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259. Which of the following assessments of electronic retailing is most accurate?
A. Electronic retailing has two major advantages over traditional businesses: simplicity
and very low startup costs.
B. One of the reasons electronic retailing firms have been so successful has been their
ability to deal with customer complaints and provide personalized services more
efficiently than traditional firms.
C. Traditional retailers seldom find much success when they attempt to incorporate online
selling into their businesses.
D. The line between electronic retailing and traditional retailing is blurring as traditional
retailers go online.
Feedback: Established retailers are seeing advantages to supplementing their traditional
approach with an online presence. One way they have done this is by using a “brick and click”
approach that allows customers to choose the options they want.
260. Which of the following statements about kiosks and carts is the most accurate?
A. Kiosks and carts are popular with mall owners because their sales are exempt from
sales taxes.
B. Mall owners often want kiosks and carts to be located along their walkways because
they create a marketplace atmosphere.
C. Kiosks and carts have struggled in recent years because of their high overhead costs.
D. Most mall owners would like to eliminate kiosks and carts from their walkways, but
are barred by law from doing so.
Feedback: Having colorful kiosks and carts staffed by friendly, helpful workers line a mall’s
walk ways is one way to create an appealing marketplace atmosphere.
