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Exam 15: Distributing Products

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Question 71

True/False

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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.

A) True
B) False

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Question 72

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Department stores offer a wide variety of products that are sold in separate departments.

A) True
B) False

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Question 73

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__________ manages the movement of raw materials,parts,work in progress,finished goods and related information throughout the supply chain,as well as managing the return of goods when necessary and the recycling of goods when appropriate.

___________ are merchant wholesalers who perform all of the distribution functions.

After listening to all of the challenges and issues,Rhea said she wanted to propose a more sweeping change."Mark has already suggested doing some of the retailer's job for them.I say go even further-let's just do away with all of the intermediaries.We can perform all of their functions ourselves," she said.She went on to explain that,"Since we won't have to deal with intermediaries,my suggestion is bound to simplify the distribution process and cut costs dramatically." Rhea's suggestion:

Kumquat Computers is a major computer manufacturer that also owns all of the organizations in the channel of distribution for its computers,including a chain of Kumquat Direct retail stores.Kumquat is using a:

One advantage of a franchise system of distribution is that it results in a consistent level of quality and service.

The sale of goods to a business purchasing the items for resale is a wholesale transaction.

Supply chain management manages the movement of relevant information as well as the movement of parts and finished goods through all organizations involved in the supply chain.

Sports Coasters sells good quality athletic wear by sending its customers a catalog nine times a year.The company has no retail stores,but offers a toll free order number that operates 24 hours a day,365 days a year.Sports Coasters sells using a technique known as:

In the terminology of multilevel marketing,downliners:

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 are A.

The activities performed by most marketing intermediaries are not essential to the marketing process.

What is logistics? Describe the types of issues you might deal with if you specialized in logistics.

Fancy Feet sells high quality socks and stockings by sending catalogs to customers and offering them a toll-free telephone number so that they can call in their orders 24 hours a day any day of the year.Fancy Feet uses telemarketing.

The primary difference between retailers and wholesalers is that:

Logistics is concerned:

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.

Kidder Manufacturing wants to ship a large quantity of its goods across the country.They have contacted Wayback Shipping,Inc.to find out what the shipment would cost.Wayback has shown Kidder how it can arrange to use a combination of barges,trains,and trucks to complete the shipment at a low cost.Wayback's strategy is an example of:

In the U.S.the largest percentage of goods is shipped by truck.