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Exam 15: Distributing Products

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Question 111

True/False

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Drop shippers are wholesalers that stock heavy or bulky items and transport them to retail stores.

A) True
B) False

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Question 112

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In the distribution process, the largest percentage of the retail price goes to:

A) profits.
B) warehouse costs.
C) labor.
D) transportation.

E) C) and D)
F) All of the above

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Question 113

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In multilevel marketing, independent contractors who sell a product can increase their own incomes by recruiting to also sell the product.

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.

Lazee Ladd Furniture obtains materials from several suppliers and uses these materials to produce its goods. It relies on several marketing intermediaries to help it distribute the furniture. Together, Lazee Ladd, its suppliers, and the marketing intermediaries are all part of a supply chain.

The part of logistics that is most concerned with the flow of goods as well as work in process within the manufacturing firm is:

An important reason for the popularity of direct marketing is that many people enjoy developing a personal relationship with a salesperson that comes directly to their home or place or work.

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.

Marketing intermediaries must charge a price for the functions they perform. Thus, a surefire way to reduce distribution costs is to eliminate marketing intermediaries from the channel of distribution.

Sav-U-More Grocery Store sells a wide range of foods and household supplies to households in Miller's Creek, a suburb of a large city. The store advertises that its prices are much lower than the prices charged by larger supermarket chains in the area. This low price approach means that Sav-U-More is a classic example of a merchant wholesaler.

are limited-function wholesalers who furnish shelves full of merchandise to retailers who sell these items on consignment.

The owners of the TriCities Mall recently renovated the mall's interior. Much of the interior of the Mall was made to look like scenes from famous movies. The mall also hired employees to dress like characters from these movies. There are many types of shops in the mall, including six different jewelers, however only one jeweler carries the very expensive Romex brand of watch that appeals to customers who are looking for status in their jewelry. Romex is practicing exclusive distribution by placing its brand in only one store in a given area.

Which of the following activities would be most closely associated with inbound logistics?

One way a store selling high-def televisions might add utility is to provide convenient delivery and set up to customers.

Unlike merchant wholesalers, never actually own the goods they help to distribute.

Cash-and-carry wholesalers are limited-function wholesalers that serve mostly smaller retailers with a limited assortment of products.

Direct marketing involves having a salesperson visit the customer's home or place of business.

Marketing costs make up less than 25 percent of the total cost of the goods consumers buy.

Candy, gum, cigarettes, and popular magazines are usually distributed using a selective distribution strategy.

Trade compliance systems help marketers manage problems with the process of moving goods through customs.