Business Essentials, 12e (Ebert/Griffin)
Chapter 13 Distributing and Promoting Products
1) Which of the following refers to the combination of channels that a firm selects to get a
product to end users?
A) Distribution mix
B) Transportation strategy
C) Merchandising system
D) Marketing plan
E) Retail system
2) Which distribution channel is used by companies that distribute their goods through their own
system of outlets?
A) Direct distribution
B) Retail distribution
C) Wholesale distribution
D) Distribution by agents
E) Distribution by brokers
3) Which of the following intermediaries matches numerous sellers and buyers as needed, often
without knowing in advance who they will be?
A) Producer representative
B) Retailer
C) Syndicated seller
D) Sales agent
E) Broker
4) Choosing a distribution network is a strategic decision in that the decision determines the
amount and cost of what?
A) Channel conflict
B) Market coverage
C) Online retailing
D) Retail coverage
E) Channel leadership
5) Convenience stores utilize which kind of distribution?
A) Direct distribution
B) Retail distribution
C) Wholesale distribution
D) Distribution by agents
E) Distribution by brokers
6) Which of the following helps producers distribute goods from sellers to customers?
A) Intermediaries
B) Sales agents
C) Direct wholesalers
D) Retailers
E) Brokers
7) In what type of distribution process does the product move from producer to consumer
without the use of intermediaries?
A) Wholesale
B) Direct channel
C) Agency
D) Brokerage
E) Retail
8) Which of the following acts as an intermediary by selling products to other businesses, who
then sells them to the final consumer?
A) Brokers
B) Agents
C) Wholesalers
D) Intermediaries
E) Retailers
9) Which of the following is an advantage to nondirect distribution?
A) They reduce the cost of items by making bulk purchases.
B) They do not charge commissions or markups.
C) They provide added value to the producers by preordering services.
D) They work with related product lines of very few producers.
E) They provide added value by saving buyers time.
10) Which type of market distribution strategy places low cost goods at as many distribution
points as possible?
A) Selective
B) Conflicted
C) Exclusive
D) Intensive
E) Channel captains
11) If a producer wants a product to have promotional advantage and increased attention in the
sales effort, what distribution process should they pursue?
A) Selective
B) Conflicted
C) Exclusive
D) Intensive
E) Channel captains
12) What is the potential result when one member of a channel receives preferential treatment?
A) Channel reward
B) Channel conflict
C) Channel leadership
D) Channel captain
E) Channel alienation
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13) When getting a good or service to market, who is most powerful in determining the roles and
rewards of others in the system?
A) Channel captain
B) Exclusive distributer
C) Selective distributer
D) Merchant wholesaler
E) Sales agent
14) Which component of the distribution mix do agents and brokers represent in exchange for
receiving commissions?
A) Producers
B) Consumers
C) Retailers
D) Industrial users
E) Other intermediaries
15) Which of the following takes place when a manufacturer grants the right to sell a product to a
very limited number of retailers or wholesalers?
A) Intensive distribution
B) Direct channel distribution
C) Sales agent distribution
D) Exclusive distribution
E) Selective distribution
16) When would a manufacturer use an exclusive distribution strategy to market a product?
A) When there is a need to create promotional advantage
B) When the manufacturer has a low-cost product that is new for the market
C) To build a strong relationship between the manufacturer and the wholesaler
D) When the manufacturer wants to break into a new geographic location
E) When the item is a high-cost or prestige product
17) The distribution mix is the combination of channels that a firm selects to get a product to end
users.
18) Most business products are distributed through direct channels.
19) Agents and brokers buy products from manufacturers and then sell them to other businesses.
20) One drawback of nondirect distribution is higher prices.
21) Intermediaries can expedite the delivery of products, but otherwise add no additional value to
a distributional system.
22) In the distribution process, the channel captain can be an influential wholesaler or large
retailer.
23) Explain the primary difference between a retailer and a wholesaler.
24) Explain the primary difference between a wholesaler and a sales agent.
25) What type of intermediary buys the product from the manufacturer then resells it to other
businesses?
A) Drop shippers
B) Merchant wholesalers
C) Agents
D) E-intermediaries
E) Brokers
26) What type of intermediary act as a storage firm allowing small operations to pick up the
goods desired?
A) Full-service merchant wholesalers
B) Drop shippers
C) Limited-function merchant wholesalers
D) Rack jobbers
E) Merchant wholesalers
27) What is the term for the wholesaler who sells directly to retail stores and provides services
such as pricing and shelf displays?
A) Full-service merchant wholesalers
B) Drop shippers
C) Limited-function merchant wholesalers
D) Rack jobbers
E) Merchant wholesalers
28) What is the advantage of using agents and brokers when a firm does not have its own sales
force?
A) Agents and brokers have extensive knowledge of the needs of consumers.
B) Agents and brokers gather and sort information for online consumers.
C) Agents and brokers can act as e-intermediaries for internet sales.
D) Agents and brokers have extensive knowledge of the markets and merchandise.
E) Agents and brokers encourage syndicated selling.
29) Which of the following occurs when one website gives a commission to another for referring
customers?
A) Business to business brokerage
B) E-intermediary selling
C) Drop shipping
D) Limited merchant wholesaling
E) Syndicated selling
30) What type of firm helps online consumers gather and sort information about products and
helps in the sale of the products by presenting the information in an easy to understand format?
A) Shopping agents
B) Drop shippers
C) Business-to-business brokers
D) Syndicated sellers
E) E-agents
31) Shopping agents allow consumers to purchase products directly from their site.
32) E-intermediaries include syndicated sellers and shopping agents.
33) Drop shippers carry inventory for retailers.
34) Shopping agents (e-agents) help people shop from factory outlet stores.
35) Describe the services provided by merchant wholesalers.
36) Describe the services provided by e-intermediaries.
37) Which of the following denotes small retail stores carrying only one product line or category
of related products?
A) Department stores
B) Bargain retailers
C) Supermarkets
D) Convenience stores
E) Specialty stores
38) Which of the following gives examples of bargain retailers?
A) Bakery outlet, athletic shoe store
B) Local bakery, discount shoe chain
C) Bakery thrift shop, athletic shoe store
D) Bakery thrift shop, shoe factory outlet
E) Local bakery, shoe factory outlet
39) Which of the following bargain retailers generate large sales volume by offering a wide
variety of new products at substantial price reductions?
A) Discount houses
B) Catalog showrooms
C) Second-hand stores
D) Factory outlets
E) Direct-response bargain marketing
40) Which of the following represents a popular form of direct-response retailing?
A) E-retailing
B) Specialty store retailing
C) Catalog showroom retailing
D) Mail-order retailing
E) Brokered retailing
41) What are the three major classifications of retail outlets in the United States?
A) Large-sized outlets, medium-sized specialty shops, small-sized convenience stores
B) Product-based retailers, bargain-based retailers, convenience-based retailers
C) Quality-based retailers, quantity-based retailers, specialty-based retailers
D) Producer-owned retailers, franchised retailers, independently owned retailers
E) Brick-and-mortar retailers, e-retailers, hybrid retailers
42) Which of the following describes the function of search engines that act as collections of
business websites representing diverse products?
A) Internet service providers
B) Electronic storefronts
C) Cybermalls
D) E-catalogs
E) Interactive retailing
43) Home Shopping Club and QVC are examples of which of the following retail sales outlet?
A) Direct selling
B) Video retailing
C) Electronic shopping
D) Virtual selling
E) Telemarketing
44) In which type of store would you MOST likely find specialized departments based on types
of products?
A) A supermarket
B) A discount house
C) A department store
D) A convenience store
E) A specialty store
45) In which of the following bargain retailers do the customers view display samples, place
orders, and wait briefly while clerks retrieve orders from attached warehouses?
A) Off-price store
B) Catalog showroom
C) Factory outlet
D) Wholesale club
E) Discount house
46) Which of the following BEST describes department stores?
A) A department store is a large product-line retailer organized into smaller, convenience-
focused components.
B) A department store is a large product-line retailer organized into smaller, bargain-focused
components.
C) A department store is a large product-line retailer organized into smaller, producer-focused
components.
D) A department store is a large product-line retailer organized into smaller, product-focused
components.
E) A department store is a large product-line retailer organized into smaller specialty stores.
47) Which of the following allows firms to contact customers directly to inform them about
products that can be purchased immediately?
A) Direct-response retailing
B) Catalog showrooms
C) Wholesale clubs
D) Product-line retailers
E) Bargain retailers
48) Which of the following is an advantage for a retailer who is using e-catalogs?
A) Inventory in the store does not have to match the catalog.
B) The cost to maintain and access the catalog is minimal.
C) Specialty products reach a better defined target market.
D) Several virtual storefronts can be represented in the catalog.
E) The e-catalog is not dependent on search engines such as Yahoo! or Google.
49) Which of the following represents the use of online displays of products, allowing customers
instant access to information and purchasing options?
A) Cybermalls
B) Virtual storefronts
C) E-catalogs
D) Video retailing
E) Electronic storefronts
50) Which of the following is a form of direct-response retailing?
A) Online
B) Mail order
C) Promotion
D) Department stores
E) Wholesale clubs
51) What type of retailing is mail order or catalog marketing considered to be?
A) Warehousing
B) Telemarketing
C) Nonstore
D) Direct selling
E) Online
52) As a product-line retailer, what services do supermarkets emphasize?
A) Specialized departments for different products
B) Wide variety of services, credit, and delivery options
C) Low prices, self-service, and wide selection
D) Full product line within a narrow product field
E) Knowledgeable sales people and product specialist
53) What is the advantage of shopping at a wholesale club?
A) There is a large discount on a wide range of merchandise.
B) Customers can view samples and place orders.
C) There are a wide variety of products at competitive prices.
D) The manufacturer owns the store and prices are discounted.
E) Merchandise is sold directly from the factory to the consumer.
54) What type of retailer requires customers to pay an annual membership fee?
A) Catalog showrooms
B) Wholesale clubs
C) Factory outlets
D) Discount houses
E) Direct-response firms
55) Discount houses, catalog showrooms, and factory outlets are examples of product-line
retailers.
56) Once an online catalog is in place, there are high costs in maintaining and accessing it.
57) Effective, knowledgeable sales personnel can often be found in the sales force of specialty
stores.
58) Among the bargain retail operations, convenience stores, in general, provide the most
substantial price reductions to the products.
59) Explain direct-response retailing.
60) Why would one expect a product sold at a specialty store to cost more than the same product
at a department store?
61) Explain the difference between an electronic storefront and a cybermall.
62) Discuss the differences in the three types of product-line retailers.