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Exam 15: Distributing Products

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Question 41

Multiple Choice

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Franchise systems are one type of __________ distribution system.

A) corporate
B) wholesale
C) contractual
D) administered

E) B) and C)
F) None of the above

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Question 42

Multiple Choice

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Marketing manager Connie Smythe is concerned that her firm is doing a poor job of managing the movement of finished products to the final consumer. If Connie is right, her firm should work to improve its:

A) outbound logistics.
B) administered support system.
C) materials handling.
D) coordination of its freight forwarders.

E) A) and D)
F) None of the above

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Question 43

True/False

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Zintelle, Inc. is a large manufacturing firm. It has recently reached an agreement with an intermodal marketing company to significantly reduce the cost of shipping its finished goods to some major business customers. This agreement will help Zintelle reduce the costs associated with outbound logistics.

Materials handling is that part of logistics that deals with moving goods within the warehouse, from the warehouse to the production floor, and to various work stations along the production process.

Identify and describe the four basic types of distribution systems that are used to link firms in a formal relationship.

Inverted logistics is the term used for the activities involved in bringing products back to the producer due to defects or for recycling of materials.

Jack Deck is a computer salesperson for a major retail electronics chain. When he advises customers to help them select a computer that will meet their needs, Jack is providing information utility.

Rack jobbers furnish racks or shelves full of merchandise to retailers and keep title to these goods until they are sold.

The Knot is an online 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 The Knot, 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 or utilities is this site providing to its users?

The use of pipelines should decline in the future because this mode is suitable only for shipping petroleum.

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:

Third-party logistics is the term used to describe the use of outside firms to help move goods from here to there.

Which of the following activities would a drop shipper be most likely to perform?

Barbara Dixon operates a small business out of her home. She makes a trip to a local Riteprice Office Supply about once a month to buy computer and office supplies for her business. The prices at the Riteprice are very low, but it does not offer credit or delivery services. Riteprice is a cash-and-carry wholesaler.

Paper 'N More sells a variety of office supplies to small businesses and local offices. The fact that it sells only to other firms and not consumers indicates that Paper 'N More engages only in:

In a(n) ____________ distribution system all of the organizations in the channel of distribution are owned by one firm.

In the terminology of multilevel marketing, downliners:

The best way to reduce the cost of goods is to eliminate marketing intermediaries from the distribution channel.

Logistics involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption.

The highest-cost transportation method is: