182. (p. 422-423) The main difference between storage warehouses and distribution warehouses is that storage
warehouses are relatively small, specialized facilities used to store one particular type of good for short periods
while distribution warehouses are large facilities used to store a wide variety of goods for longer periods of
time.
183. (p. 422) Childress Manufacturing wants to ship a large quantity of its goods across the country. They have
contacted Grunwell Shipping, Inc. to find out what the shipment would cost. Grunwell has shown Childress
how a combination of barges, trains, and trucks could be used to complete the shipment at low cost. Grunwell’s
strategy is an example of intermodal shipping.
184. (p. 422-423) Qwikship is a new delivery company that wants to compete against FedEx and UPS in the United
States, Canada, and Mexico. One of the keys to Qwikship’s success will be the ability to establish large storage
185. (p. 404) Those organizations that assist in the movement of goods and services from producer to industrial
and consumer users are known as:
A. directed marketers.
186. (p. 404) A(n) ____________ consists of the marketing intermediaries that transport and store goods as they
move through their path from producer to final user.
D. mode of distribution
187. (p. 404) A _________ is a marketing intermediary that sells to other organizations.
D. jobber
188. (p. 404) A __________ is a marketing intermediary that sells to ultimate consumers.
A. channel captain
189. (p. 404) A (n) _________ is one type of marketing intermediary that brings together buyers and sellers and
assists in negotiating an exchange, but does not take title to the goods.
D. merchant wholesaler
190. (p. 407) Marketing intermediaries:
buy and sell goods.
191. (p. 404) Marketing intermediaries perform which of the following tasks?
D. discovering
192. (p. 404-405) Marketing intermediaries:
C. increase the number of exchange relationships in the channel.
D. complicate the distribution process.
193. (p. 407, figure 15.3) About __________ of the cost of things we buy are marketing costs that go to pay for
distribution costs of intermediaries.
194. (p. 407, figure 15.3) In the distribution process, the largest percentage of the retail price goes to:
A. profits.
195. (p. 405, figure 15.1) Which of the following statements about channels of distribution is most accurate?
A. Channels of distribution always begin with a manufacturer and end with consumers, and always have one or
more marketing intermediaries in between.
196. (p. 404) The primary difference between retailers and wholesalers is that:
A. retailers sell consumer goods, while wholesalers sell industrial goods.
197. (p. 407) Which of the following statements about marketing intermediaries is true?
A. All channels of distribution must contain at least one marketing intermediary.
198. (p. 404) Nina Corby owns a card shop in a small shopping center where she sells cards produced by a national
company. Nina sells to final customers, so she is a(n):
D. channel captain.
199. (p. 404) Patrick Bolger is convinced that his product idea has tremendous potential. He has decided to
produce the product himself, but plans to use other firms who specialize in storing and transporting the product
to help him move the product along its path to the final consumer. These specialists Patrick uses will be part of
his:
A. wheel of retailing.
200. (p. 405) 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:
A. 14.
201. (p. 407) Mark A. Teer believes he has found a surefire way to save money. He advises his friends, “Buy direct
from the manufacturer. Any time intermediaries get involved, you’ll pay a higher price. After all, every
intermediary involved in the marketing process must charge enough to earn a profit.” Mark’s advice:
A. is entirely correct. Intermediaries must charge a high enough price for the activities they perform to earn a
profit, so using intermediaries must result in a higher price.
202. (p. 404) Robbie Veath brings together buyers and sellers of used heavy construction equipment, and helps
them negotiate the terms of the sale. However, Robbie never actually takes title to any of the equipment
himself, nor does he provide any financing for the buyer. Robbie is acting as a(n):
D. logistics specialist.
203. (p. 407) 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.
204. (p. 407) __________ is the value or want-satisfying ability that is added to products by organizations that
make the product more useful or accessible to consumers.
D. User friendliness
205. (p. 407) __________ utility is usually provided by producers.
A. Possession
206. (p. 408-409) The types of utility commonly provided by marketing intermediaries include:
D. cost, value, flexibility, use, and resale.
207. (p. 408) When marketing intermediaries perform the steps necessary to transfer ownership from one party to
another, they are providing _________ utility.
A. marginal
208. (p. 408-409) Placing ads in newspapers and having knowledgeable salespeople to answer customers’ questions
are ways marketing intermediaries can provide:
A. form utility.
209. (p. 408) One way a store selling big screen televisions might add ________ utility is to provide convenient
delivery and set up to customers.
D. time
210. (p. 408) Marketing intermediaries add ________ utility to products by having them available when consumers
want them.
D. form
211. (p. 408) _________ utility adds value to goods by having them available where people want them.
A. Spatial
212. (p. 408) Retailers who have stores at convenient locations are trying to add value by:
A. using a horizontal distribution strategy.
213. (p. 409) One way traditional retailers have maintained customers in the face of increasing competition from
online sellers and other direct markers is to place more emphasis on providing _________ utility.
A. psychographic
214. (p. 408) Marketing intermediaries can provide _________ utility by offering customers affordable credit, free
delivery, and product guarantees.
D. promotion
215. (p. 408) Stores that remain open 24 hours a day, seven days a week are providing _________ utility to their
customers.
D. schedule
216. (p. 408-409) WeddingChannel.com is an internet company that helps people with the complex task of planning
a wedding. Multiple vendors are recommended for things like flowers, caterers, wedding gowns, and more.
Through Wedding Channel a couple can establish a website that acts as a registry. Once the couple is married,
the website directs them to another site having to do with beginning married life. What type of utility is this
website providing to its users?
A. form only
217. (p. 408) E-Gadgets is a chain of electronics stores that specializes in devices and gadgets incorporating
cutting-edge technologies. The company has more than 170 stores located in large cities throughout the
Southeast and Midwest. E-Gadgets has chosen the locations of its stores so that most customers living in upper
middle class and wealthy neighborhoods can get to an E-Gadgets store in less than15 minutes. E-Gadgets is
providing its customers with:
A. scrambled merchandising.
218. (p. 408) Hottaire Heating and Cooling offers customers who buy air conditioners and furnaces free delivery
and low installation charges. The company also offers a free follow-up inspection of the new equipment one
month after it is installed. These services are ways that Hottaire provides its customers with __________
utility.
D. situational
219. (p. 409) Which of the following statements about service utility is most accurate? Service utility is:
A. becoming less important to retailers in this age of self-service marketing.
220. (p. 408) 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.
D. alterational
221. (p. 410) About ____ percent of all wholesalers are classified as merchant wholesalers.
A. 25
222. (p. 410) ____________ wholesalers are independently owned and take title to the goods they handle.
D. Primary
223. (p. 410) The two basic types of merchant wholesalers are:
D. capital wholesalers and full-value wholesalers.
224. (p. 410) ___________ are merchant wholesalers who perform all of the distribution functions.
A. Retailers
225. (p. 410) Marketing intermediaries that solicit orders from retailers or other wholesalers and have the products
delivered directly from the producer to the buyer are known as:
D. merchandise agents.
226. (p. 410) ___________ are limited-function wholesalers who furnish shelves full of merchandise to retailers
who sell these items on consignment.
D. Consignment agents
227. (p. 410) Limited-function wholesalers that mainly serve small businesses by selling them a limited assortment
of goods are known as:
A. backdoor wholesalers.
228. (p. 410) Unlike merchant wholesalers, ___________ never actually own the goods they help to distribute.
A. rack jobbers
229. (p. 411) __________ may represent several producers in a specific territory, as long as they do not represent
competing products.
A. Consignment brokers
230. (p. 411) The main way __________differ from agents is that they do not develop long-term relationships with
the buyers or sellers they assist.
C. wholesalers
D. sales discounters
231. (p. 410) Paper ‘N More sells a variety of office supplies to small businesses and local offices. The fact that it
sells only to other firms indicates that Paper ‘N More engages only in:
D. second-tier retailing.
232. (p. 410) Which of the following activities would a drop shipper be most likely to perform?
D. provide brokerage services by helping other wholesalers negotiate deals
233. (p. 411) 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.
234. (p. 410) 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.
235. (p. 410) Comstock Coal Distributors does not mine coal itself. In fact, the firm does not even store or handle
coal. Instead, Comstock solicits orders for low sulfur coal from other firms, then purchases the required amount
from suppliers and directs them to ship the coal to its customers. Comstock is a:
D. limited distribution broker.
236. (p. 410) Which of the following would be classified as a limited-function wholesaler?
D. Sav-A-Bundle sells discontinued merchandise, floor samples, and open-box items at heavy discounts to the
general public.
237. (p. 410-411) Which of the following would be the best example of a broker?
D. Spence Coker is employed by a vacuum cleaner company, and goes door-to-door selling products produced
by his company.
238. (p. 412, figure 15.5) Discount stores, supermarkets, and department stores are all common types of:
A. multilevel marketers.
239. (p. 411) Approximately __________ retail stores operate in the United States.
A. 70 thousand
240. (p. 412, figure 15.5) A(n) __________ sells general merchandise directly from the manufacturer at a discount;
items may be discontinued or have flaws.
A. department store
241. (p. 412, figure 15.5) The most likely type of utility provided by convenience stores is:
D. service.
242. (p. 412, figure 15.5) Discount stores owe much of their success to a competitive strategy based on:
D. a wide selection in a limited number of categories of goods.
243. (p. 412, figure 15.5) Retailers such as jewelry stores, shoe stores, and bicycle shops are:
A. department stores.
244. (p. 412, figure 15.5) A __________ offers a huge selection of one type of product (such as books, toys, or
sporting goods) to dominate that category of goods.
D. cash-and-carry retailer
245. (p. 412) A firm that wants to distribute its products as widely as possible would use a(n) ___________
distribution strategy.
A. extensive
246. (p. 412) A(n) ___________ distribution strategy distributes a product through only a preferred group of
retailers in a given area.
D. restrictive
247. (p. 412) A(n) ______________ distribution strategy uses only one retail outlet in a given geographic area.
A. selective