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Exam 15: Distributing Products

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Question 61

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Small-timers,Incorporated is a small manufacturer of charm bracelets that include watches as well as keepsake items and trinkets.The company seldom has shipments large enough to be transported cost-efficiently by filling an entire truck or railcar.Small-timers could benefit by relying on a freight forwarder to help it distribute its goods.

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B) False

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Question 62

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Some freight forwarders offer warehousing and customs assistance.

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Question 63

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

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

Producers of snack foods (such as candy bars or potato chips) are most likely to use a(n) _____________ distribution strategy for their products.

McDonald's,KFC,Baskin-Robbins,and AAMCO all make use of the __________ form of contractual distribution system.

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.

Some manufacturers sell directly to consumers or businesses rather than relying on marketing intermediaries.

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

A firm that makes wholesale sales cannot also legally make retail sales.

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.

The main difference between selective distribution and exclusive distribution is the number and type of market segments the firm chooses.In a selective strategy,a variety of profitable niche markets are selected,while in an exclusive strategy one specific market segment is targeted,and all others are excluded.

Because of delivery issues and problems with communication,Internet sales declined to $150 billion in 2008 and are expected to keep falling.

Railroads are an energy-efficient mode of transporting many types of goods.

Wholesaler-sponsored chains consist of stores that are all owned by a single corporation.

As long as they do not represent competing products,manufacturer's agents can represent more than one manufacturer in a given sales territory.

Jessica Talmadge is a real estate agent who brings together the buyers and sellers of houses and commercial property.Jessica helps the parties negotiate the terms and conditions of real estate sales,but she does not take title to the property,provide credit,or assume any risks associated with the exchanges she helps negotiate.Because Jessica provides only limited services,she is not a true marketing intermediary.

Which of the following would be classified as a limited-function wholesaler?

Marcia Baker ships orchids and other perishable flowers from her greenhouses near San Francisco,California to florists thousands of miles away in cities such as New York,Boston,and Philadelphia.Since the flowers must reach the florists as quickly as possible,the best mode of transportation for Marcia to use would be:

In order to succeed in today's tough economic times all retailers must compete with low prices.