QUESTION A craftsman sells his products to customers at a local fair. What type of distribution is this an example of? A) a direct channel B) wholesaling C) one intermediary D) two intermediaries E) three intermediaries ANSWER Answer: A Explanation: A) A direct channel is a distribution channel in which a producer sells directly […]
QUESTION Which of the following is NOT one of the direct ways in which intermediaries add value to products? A) providing information about products B) making products more available to consumer C) changing products into more valuable products D) increasing the number of competitors for a type of product E) providing services for the product […]
QUESTION EasyGo is an intermediary that gives customers information on how to use the products they’ve purchased. What kind of value is added in this case? A) ownership B) location C) form D) service E) time ANSWER Answer: D Explanation: D) When intermediaries show customers how to use the products they’ve purchased, they are […]
QUESTION Which of the following is MOST likely to be intensively distributed? A) Porsche automobiles B) Starbucks coffee beans C) Cartier diamonds D) organic ostrich meat E) Gucci handbags ANSWER Answer: B Explanation: B) Of the list above, Starbucks coffee beans appeal to by far the biggest number of consumers. Therefore, they are the […]
QUESTION When intermediaries bring flowers from greenhouses to stores, which of the following are they affecting? A) form B) time C) location D) information E) ownership ANSWER Answer: C Explanation: C) When intermediaries move flowers from the greenhouses to the stores, making it easier for people to shop for them, they are affecting location—that […]
QUESTION When a company such as Home Depot offers financing and delivery of household appliances, what is it affecting? A) form B) location C) ownership D) time E) information ANSWER Answer: C Explanation: C) By offering financing and delivery, Home Depot and other similar companies that sell appliances are affecting ownership because they help […]
QUESTION Mark, an owner of a small food retailer, goes to Simons Foods every week to buy food products that he sells at his store. What type of wholesaler is Simons Foods? A) rack jobber B) full-service C) cash-and-carry D) drop shipper E) manufacturer’s sales office ANSWER Answer: C Explanation: C) A cash-and-carry wholesaler […]
QUESTION Supply-chain management is mainly concerned with the tactics of moving materials and products. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Supply-chain management is mainly concerned with the strategy of moving materials and products, whereas logistics is concerned with the tactics.
QUESTION What is the name given to the total of all the techniques that companies use to motivate consumers to buy their products? B) distribution C) placement D) advertising E) selling ANSWER Answer: A Explanation: A) Promotion consists of all the techniques that companies use to motivate consumers to buy their products.
QUESTION Freight forwarders bundle many small shipments together into a single large shipment for more cost-effective transportation. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: A single container may be made up of several different, smaller cargos put together by a freight forwarder, an organization that bundles many small shipments […]
