QUESTION Bridget owns a manufacturer-owned wholesaler. Which of the following is a benefit that she has in this role? A) She can maintain full control over the selling and distribution of her products. B) She needn’t worry about storage because she has no physical custody of the products. C) She is able to share profits […]
QUESTION Personal selling is put to its best advantage for more-expensive items. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Because personal selling is face-to-face communication and promotion to influence customers to buy goods or services, it works best when the product is somewhat expensive, somewhat complex, and aimed at […]
QUESTION If Bentley Motors chooses to distribute its cars to just a very few targeted places, what is it practicing? A) intensive distribution B) selective distribution C) exclusive distribution D) direct distribution E) expensive distribution ANSWER Answer: C Explanation: C) By distributing ITS automobiles to just a few targeted places, Bentley is utilizing exclusive […]
QUESTION If Super Shop Market sells apples directly to you, the customer, then what role is Super Shop playing in the distribution channel? A) retailer B) wholesaler C) agent D) producer E) consumer ANSWER Answer: A Explanation: A) In this scenario, Super Shop Market is playing the role of retailer in the distribution channel.
QUESTION Tyrone runs a small retail store and buys his goods from an intermediary from whom he picks them up directly. What kind of intermediary does Tyrone use? A) manufacturer’s branch office B) manufacturer’s sales office C) drop shipper D) cash-and-carry wholesaler E) rack jobber ANSWER Answer: D Explanation: D) Cash-and-carry wholesalers are limited-function […]
QUESTION What is the name given to intermediaries who sell products to other businesses for resale to ultimate customers or to institutions and businesses for use in their operations? A) producers B) agents C) wholesalers D) brokers E) retailers ANSWER Answer: C Explanation: C) Wholesalers, also known as middlemen, are intermediaries who sell products […]
QUESTION Which of the following products is MOST likely to be handled by a drop shipper? A) breakfast cereal B) automobiles C) gravel D) clothing E) racks of snacks and candy ANSWER Answer: C Explanation: C) A drop shipper is a limited-function wholesaler who owns the products but does not have physical custody of […]
QUESTION Which of the following is NOT an example of intermediaries? A) agents B) brokers C) wholesalers D) producers E) retailers ANSWER Answer: D Explanation: D) Intermediaries are the people or firms that move products between producer and customers. Agents, brokers, retailers, and wholesalers are all intermediaries. Producers and consumers are NOT intermediaries. If […]
QUESTION Which of the following is the BEST example of a rack jobber? A) a candy vendor who puts racks of candy inside gas stations and shares the profits B) an automobile dealer who sells the cars that are sold to him from the manufacturer C) a large discount wholesaler, such as Costco, that sells […]
QUESTION Which of the following is NOT an example of a distribution channel? A) farmstand tomatoes being sold directly to consumers from the producer B) T-shirts moving from producer to wholesaler to retailer to consumer C) canned beef moving from producer to packager to wholesaler to restaurant to consumer D) a producer using unpaid coverage […]
