248. (p. 412) Producers of snack foods (such as candy bars) are most likely to use a(n) _____________
distribution strategy for their products.
D. restrictive
249. (p. 412) ___________ would probably be distributed using an intensive strategy.
A. Digital cameras
250. (p. 412) Which of the following firms would be most likely to use a selective distribution strategy for its
products?
D. maker of snack foods such as potato chips and pretzels
251. (p. 412) Producers who use an exclusive distribution strategy for their products can expect retailers who carry
the products to do which of the following?
D. pay less attention to their brand than to other brands
252. (p. 412, figure 15.5) Sportstors, Inc. operates a chain of very large stores that offer an incredible selection of
sporting goods at very competitive prices. When Sportstors opens its first store in a geographic area, smaller
sporting goods stores almost always experience a noticeable drop in sales. Sportstors stores are:
A. warehouse clubs.
253. (p. 412) Tammy Knowles is the publisher of “New Woman Magazine,” which is a publication targeted to Gen
Y women. Because it is a small, new publication, some of the larger book stores, convenience stores and
newsstands are not agreeing to distribute the magazine. Tammy is very concerned by this trend, because she
believes that her publication, like most magazines, needs ____________ distribution in order to succeed.
A. selective
254. (p. 412) Delacroix Shoes produces top-quality high-fashion shoes, designed for the person concerned about
style. Delacroix gives only a few preferred retailers in a given market area the right to market its product.
Delacroix Shoes uses:
D. limited function distribution.
255. (p. 412) Lazario Motor Car Company produces some of the most luxurious and expensive cars in the world.
The company typically authorizes only a single dealership to sell its cars in certain major metropolitan areas. In
less populous areas, Lazario authorizes a single dealer for an entire state or region. The manufacturer of Lazario
automobiles is using a(n) ___________ distribution strategy for its product.
A. intensive
256. (p. 413) ___________ means selling goods and services to ultimate consumers over the Internet.
D. Intercommerce
257. (p. 414) ___________ is the sale of goods and services by telephone.
A. Cel-tailing
D. inferior goods.
259. (p. 414-415) Mall owners like to have __________ located along the walkways of their malls, because they
create a marketplace type of atmosphere.
A. cartels
260. (p. 415) Companies who send salespeople to customers’ homes or places of work are making use of
__________ selling.
D. nonretail
261. (p. 415) In _____________, salespeople are independent contractors who not only sell the product, but also
recruit additional salespeople.
A. telemarketing
262. (p. 415) In multilevel marketing, independent contractors who sell a product can increase their own incomes
by recruiting _________ to also sell the product.
A. commissionaires
263. (p. 415) In the terminology of multilevel marketing, downliners:
D. are experienced salespeople who are allowed to sell in more than one franchise area by the distributor.
264. (p. 415) Direct mail, telemarketing, and catalog sales are all common examples of:
D. direct selling.
265. (p. 415) Any marketing method that directly links manufacturers or intermediaries with the ultimate consumer
could be classified as:
A. direct selling.
266. (p. 415) The characteristic that all forms of direct marketing have in common is that they:
A. are carried out by agents or brokers.
267. (p. 415) In multilevel marketing, salespeople have an incentive to:
D. limit the number of salespeople in their franchise area so that they can maximize their own sales.
268. (p. 415) In the terminology of multilevel marketing, which of the following statements about the relationship
between upliners and downliners is most accurate? In multilevel marketing,
D. upliners use intensive distribution strategies to sell a good, while downliners use either a selective or
exclusive distribution strategy to sell the same type of good.
269. (p. 415) Which of the following statements identifies a key advantage of direct marketing? Direct marketing:
A. enables sales people to close the sale in the customer’s home or place of work.
270. (p. 413) 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.
271. (p. 414-415) Which of the following statements about kiosks and carts is the most accurate?
D. Most mall owners would like to eliminate kiosks and carts from their walkways, but are barred by law from
doing so.
272. (p. 414) Sports Coasters sells good quality athletic wear by sending its customers a catalog nine times a year.
The company has no retail stores, but offers a toll free order number that operates 24 hours a day, 365 days a
year. Sports Coasters sells using a technique known as:
A. tel-tailing.
273. (p. 415-416) Which of the following is an example of a consumer making a purchase through a direct
marketing arrangement?
A. purchasing a box of cereal at a local grocery store with a coupon on the box
274. (p. 415) Bunny Babbett has just become an independent contractor selling the products of Tweethouse, a firm
that makes elaborate (and expensive) birdhouses and bird feeders. Bunny was recruited by Sylvester Katt, who
already sells the Tweethouse products. Sylvester told Bunny that both he and she would receive a commission
on every item she sold. He also pointed out that she could boost her income significantly by recruiting more
people to sell the products, because she would receive a commission on her recruits’ sales. The arrangement
described by Sylvester suggests that Tweethouse is using:
D. the Lorenzo method.
275. (p. 414, Reaching Beyond Our Borders box) According to information in the “Reaching Beyond Our Borders” box in
Chapter 15, one lesson other firms can learn from Zara’s success is that:
D. air transportation has finally come into its own as a way of getting goods distributed to distant customers in
foreign countries.
276. (p. 416) In a(n) ____________ distribution system all of the organizations in the channel of distribution are
owned by one firm.
A. administered
277. (p. 417) In a(n) __________ distribution system the producer manages all of the marketing functions at the
retail level.
D. master limited
278. (p. 416) Franchise systems are one type of __________ distribution system.
A. corporate
279. (p. 417) McDonald’s, KFC, Baskin-Robbins, and AAMCO all make use of the __________ form of
contractual distribution system.
D. horizontally administered
280. (p. 417) In a(n) ___________, independently owned and managed stores sign an agreement to use the same
name, participate in chain promotions, and cooperate as a unified system.
A. administered distribution system
281. (p. 417) Taken together, all of the organizations that move goods from the sources of raw materials to
ultimate consumers is known as a(n):
D. marketing priority network.
282. (p. 417) __________ manages the movement of raw materials, parts, work in progress, finished goods and
related information throughout the supply chain, as well as managing the return of goods when necessary and
the recycling of goods when appropriate.
A. Distribution planning
283. (p. 416-417) A common trait of corporate distribution systems, administered distribution systems, contractual
distribution systems and supply chains is that they all:
A. are arrangements which seek to distribute goods more efficiently by eliminating most functions performed
by marketing intermediaries.
284. (p. 416) One thing that franchise systems, wholesaler-sponsored chains and retail cooperatives have in
common is that they are all:
A. distribution systems in which producers also act as intermediaries in the distribution process.
285. (p. 417) In administered distribution systems, retailers:
D. sign a contract agreeing to cooperate with wholesalers in the channel of distribution.
286. (p. 417) Which of the following statements about wholesaler-sponsored chains is most accurate? In a
wholesaler-sponsored chain all stores:
D. share profits and losses according to a contractual arrangement.
287. (p. 417) Which of the following activities is most likely to be performed by someone responsible for supply
chain management?
288. (p. 416) Kumquat Computers is a major computer manufacturer that also owns all of the organizations in the
channel of distribution for its computers, including a chain of Kumquat Direct retail stores. Kumquat is using a:
D. retail cooperative system.
289. (p. 417) TasteBest Spice Company was unable to get retailers to agree to a contractual arrangement to
cooperate in the distribution process, so it took over all of the marketing functions for its products at grocery
stores. The grocers like this arrangement because TasteBest provides outstanding marketing support for its
products. TasteBest is using a(n) _________ system to distribute its products.
A. corporate distribution
290. (p. 417) Millie Woods owns and operates a World of Food grocery store. Although her store is independently
owned and operated, she has signed an agreement with over seventy stores in the Midwest to use a common
name, participate in chain promotions, and cooperate with other stores in the chain. Millie’s store is part of a(n):
D. horizontal distribution chain.
291. (p. 417) Rodney Halpern works in the marketing department of a major manufacturing firm. Much of his job
involves managing the movement of materials, parts, and information from suppliers to his firm. He tries to
coordinate these flows with his firm’s factory processes and assists with the efficient movement of finished
goods to final consumers. These activities suggest that Rodney’s job responsibilities focus on:
A. wholesaling.
292. (p. 419) _________ involves planning, implementing, and controlling the physical flow of materials, final
goods, and related information from points of origin to points of consumption to meet customer requirements at
a profit.
A. Export management