Question 1

Prime Stores is located in Prince Albert,Saskatchewan.The store displays different types of home furniture,and most of the store's business comes from individual consumers.The firm displays products of many manufacturers.Prime Stores is a(n):

Accepted Answer

Prime Stores is a retailer as it directly sells products to individual consumers from various manufacturers.

Question 2

AK Associates is a firm that buys products from various manufacturing companies and resells the goods to other businesses.AK Associates is an example of a:

Accepted Answer

AK Associates fits the definition of a wholesaler, as they purchase goods in large quantities from manufacturers and sell them to other businesses, rather than directly to consumers.

Question 3

Logistics was traditionally the responsibility of:

Accepted Answer

Logistics is primarily concerned with the movement of goods and ensuring that they are delivered to the right place at the right time. This responsibility falls under the purview of operations departments, which are responsible for managing the production and delivery of goods and services. While other departments may play a supporting role in logistics, operations is the primary driver of logistics activities.

Question 4

Distribution channels add value for customers because they:

Accepted Answer

Distribution channels help to get products to buyers quickly and at a lower cost by reducing the number of intermediaries involved in the process, streamlining the logistics and transportation, and optimizing inventory management. This added value is particularly important for customers who prioritize speed and cost-effectiveness in their purchases.

Question 5

Most U.S.companies pay listing fees to get shelf space in retail outlets.Which of the following factors has contributed the most to the advent of listing fees?

Accepted Answer

The primary reason for the advent of listing fees is the significant increase in the number of new products being introduced daily. This surge in new products creates a competitive environment for shelf space, leading retailers to charge listing fees as a way to manage the demand for their limited shelf space.

Question 6

The set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption is called the:

Accepted Answer

The answer of The set of institutions that transfer the...

Question 7

The integration of two or more activities to plan,implement,and control the efficient flow of raw materials,in-process inventory,and finished goods from the point of origin to the point of consumption is called:

Accepted Answer

Logistics management involves the coordination of various activities including transportation, warehousing, inventory management, and production planning to ensure the efficient and effective movement of goods from the point of origin to the point of consumption. It focuses on enhancing customer satisfaction by meeting their demands for timely delivery of quality goods at a reasonable cost. Therefore, option C is the best choice.

Question 8

Which of the following is an example of a transactional function that intermediaries perform?

Accepted Answer

Intermediaries perform transactional functions such as purchasing goods for resale, which involves buying products from manufacturers to sell to consumers.

Question 9

A retail store that sells multiple brands helps brands obtain competitive intelligence about the customers.Which of the following intermediary functions does this relate to?

Accepted Answer

Gathering information is the intermediary function that relates to a retail store selling multiple brands and helping those brands obtain competitive intelligence about the customers.

Question 10

A retailer displays a huge billboard of the products of a manufacturer to attract consumers.This is an example of the retailer's:

Accepted Answer

The answer of A retailer displays a huge billboard of...

Question 11

Firms that buy products from manufacturers and resell them to firms that sell products directly to consumers are called:

Accepted Answer

Firms that buy products from manufacturers and resell them to firms that sell products directly to consumers are called wholesalers.

Question 12

Firms that sell products directly to consumers are called:

Accepted Answer

Retailers are the firms that sell products directly to consumers.

Question 13

Value Inc.is a manufacturer of high-definition televisions.The firm sells its products through external resellers.The resellers transport the products to the buyers' location and take care of the installation.The functions performed by the reseller exemplify which function performed by intermediaries?

Accepted Answer

The resellers are responsible for the physical movement and storage of the products, which is a logistical function performed by intermediaries.

Question 14

Novelty Stores is a small firm that sells its products directly to consumers.The company stores many brands of consumer goods and other low-value items.Novelty Stores is a(n):

Accepted Answer

Novelty Stores sells its products directly to consumers, which means it is a retailer. It stores many brands of consumer goods and low-value items, which are typically sold to end consumers in small quantities, further supporting the idea that Novelty Stores is a retailer.

Question 15

Furntech Inc.sells office furniture.The firm procures merchandise from different manufacturers in Canada and sells it to smaller sellers in Lethbridge.Furntech is an example of a:

Accepted Answer

Furntech Inc. is a wholesaler as it purchases merchandise from different manufacturers and sells it to smaller sellers in Lethbridge.

Question 16

Fine Computers Inc.is a manufacturer of personal computers and computer parts.The company sells all its products by allowing customers to select specific products they want and place orders online.This distribution system is an example of which type of distribution?

Accepted Answer

The described distribution system is an example of direct distribution, as Fine Computers Inc. sells its products directly to customers through online orders, without the involvement of intermediaries or third-party retailers.

Question 17

Which of the following is an example of a facilitating function that intermediaries perform?

Accepted Answer

The answer of Which of the following is an example...

Question 18

Which of the following is an example of a logistical function that intermediaries perform?

Accepted Answer

Maintaining inventory is a key logistical function that intermediaries perform, as they must manage and store the products they have purchased for resale. Options A, D, and E are examples of marketing functions, while B corresponds to purchasing.

Question 19

Wills Cycles is the largest seller of Rober Bicycles in Manitoba.The firm ships products directly from Rober's manufacturing plant and sells the products to smaller firms across Manitoba.Wills Cycles is a:

Accepted Answer

Wills Cycles is purchasing products directly from the manufacturer and selling them to smaller firms, which makes them a wholesaler.

Question 20

The logistical function performed by intermediaries that involves maintaining inventory and protecting goods of manufacturers is called:

Accepted Answer

The answer of The logistical function performed by intermediaries that...

Quiz 12: Services: The Intangible Product

Prime Stores is located in Prince Albert,Saskatchewan.The store displays different types of home furniture,and most of the store's business comes from individual consumers.The firm displays products of many manufacturers.Prime Stores is a(n) :