QUESTION Intermediaries consist of agents, brokers, wholesalers, and retailers. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Intermediaries, or marketing intermediaries, are the people or firms that move products between producer and customers. They consist of agents or brokers, wholesalers, and retailers.
QUESTION Distributing a product in a few choice locations is a way to practice intensive distribution. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Intensive distribution means the product is distributed among as many locations as possible.
QUESTION Luxury automobile makers are likely to use an intensive distribution strategy. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Luxury automobile makers are likely to use an exclusive distribution strategy, that is, one that distributes their cars in only a few choice locations.
QUESTION The main difference between wholesalers and retailers is that retailers sell products directly to consumers. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: While wholesalers sell products to other businesses and institutions for resale to consumers, retailers sell these products directly to consumers.
QUESTION A rack jobber is a type of wholesaler who delivers goods directly to store displays. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: A rack jobber is a limited-function wholesaler who furnishes products and display racks or shelves in retail stores and shares profits with retailers.
QUESTION Which of the following, if true, weakens the senior manager’s argument? A) Producing a stripped-down model would alter high-end domestic customers’ view of the Personal Devices brand. B) A premium auto manufacturer who came out with economy cars suffered in the market. C) India recently blocked low-priced Chinese phones that did not have the […]
QUESTION Agents and brokers help negotiate transactions between buyers and sellers. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Agents and brokers are specialists who bring sellers and buyers together and help negotiate a transaction.
QUESTION Which of the following, if true, strengthens the argument for adopting a price skimming strategy? A) Existing operating systems satisfy most customer requirements. B) Two competitors are expected to release new versions of their operating systems in the coming weeks. C) Large organizations are eager to adopt the new version because of improved enterprise […]
QUESTION Sand, coal, lumber, and other bulky goods are often handled by drop shippers. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Drop shippers are limited-function wholesalers who own the products but do not have physical custody of them. Rather, the drop shipper takes orders and has the producer ship […]
QUESTION Which of the following, if true, suggests that the less expensive clothing lines would damage the sales of the designers’ high-end fashions? A) Some designers of less expensive furniture have done business under a different name when producing high-end furniture. B) The clothing lines designed for women are, on average, more expensive than those […]
