Question 1

A manufacturers' representative is sometimes called a(n):

Accepted Answer

A manufacturers' representative is also known as a manufacturer's agent, acting as an intermediary between manufacturers and retailers or customers, without taking ownership of the goods sold.

Question 2

The process of packing 3 16-ounce bottles of Hershey chocolate syrup in super-sized packages like those sold at Sam's and Costco is an example of:

Accepted Answer

Accumulating involves gathering similar products together to create larger quantities, which is what happens when multiple bottles of Hershey chocolate syrup are packed together for sale in bulk at stores like Sam's and Costco.

Question 3

What is the primary difference between a merchant wholesaler and an agent?

Accepted Answer

Merchant wholesalers take title to the goods they sell, meaning they own the products they distribute. In contrast, agents do not take title to goods; they facilitate sales between buyers and sellers and earn a commission for their services.

Question 4

_____ are distribution channel members that buy finished products from manufacturers and sell them to retailers.

Accepted Answer

Wholesalers are the distribution channel members who purchase finished products from manufacturers and then sell these products to retailers. They act as intermediaries in the distribution process, facilitating the movement of goods from production to retail.

Question 5

How do distribution channels improve product distribution?

Accepted Answer

Distribution channels streamline the process of getting products from the manufacturer to the consumer by reducing the number of transactions required. This efficiency is achieved by consolidating purchases and sales through intermediaries, which simplifies the distribution process.

Question 6

A person who works as a sales representative for a manufacturer or wholesaler and gets paid a commission on any sales is classified a(n):

Accepted Answer

An agent in the context of sales and distribution typically represents a manufacturer or wholesaler and earns a commission based on sales. Unlike brokers who facilitate transactions between buyers and sellers, agents usually have a more direct and ongoing relationship with the entity they represent.

Question 7

Channels of distribution make distribution easier by performing all of the following functions EXCEPT:

Accepted Answer

Channels of distribution are involved in the process of moving goods from producers to consumers and perform functions such as sorting, accumulation, storage, and allocation. Production, however, is not a function of distribution channels; it is the responsibility of producers.

Question 8

American Pet Pro purchases pet grooming supplies from various manufacturers, sorts them, and resells them to retailers.American Pet Pro is a(n) _____ wholesaler.

Accepted Answer

American Pet Pro is a merchant wholesaler because it buys products from manufacturers and then resells them to retailers, which is the definition of a merchant wholesaler's role.

Question 9

Within the distribution channel, retailers and wholesalers are called:

Accepted Answer

Retailers and wholesalers are referred to as marketing intermediaries because they facilitate the movement of goods from producers to consumers, playing a crucial role in the distribution channel by making products available to the market and often providing value-added services such as customer support and product information.

Question 10

Roy Petrie is a flower wholesaler.He buys fresh flowers from countries in South America, divides the large batches into small bunches, and delivers them to independent florists.This process is called:

Accepted Answer

Breaking bulk involves dividing large quantities of goods into smaller lots for distribution, which is exactly what Roy Petrie does with the flowers he buys.

Question 11

A(n) _____ is an independent wholesaler who buys related product lines from many manufacturers and sells them to industrial users.

Accepted Answer

An industrial distributor is an independent wholesaler who purchases related product lines from various manufacturers and sells them to industrial users, acting as an intermediary in the supply chain.

Question 12

A(n) _____ are go-betweens that bring buyers and sellers together.

Accepted Answer

Brokers act as intermediaries between buyers and sellers, facilitating transactions without taking ownership of the goods or services being exchanged.

Question 13

Manufacturers' representatives usually:

Accepted Answer

Manufacturers' representatives typically do not take title to goods, meaning they do not own the inventory they sell. Instead, they earn commissions based on the sales they make. They act as independent agents rather than being direct employees of the manufacturers, allowing them flexibility in their operations. Additionally, they often represent noncompeting manufacturers to avoid conflicts of interest and to maximize their sales potential across different product lines. Therefore, all of the statements A through D are correct descriptions of what manufacturers' representatives usually do.

Question 14

Victorinox is the name of the company that manufacturers Swiss army knives.The _____ channel the company utilizes to get its knives to market is to wholesalers, than to retailers, and finally to consumers.

Accepted Answer

Victorinox uses a distribution channel to get its knives to market, which involves wholesalers, retailers, and finally consumers. This channel is focused on the movement of goods from the manufacturer to the end user.

Question 15

The chain of manufacturer, agent, wholesaler, and retailer through which items like x-ray machines, dental equipment, and safety goggles flow is called a(n) ______ channel.

Accepted Answer

A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the final consumer. In this case, the chain of manufacturer, agent, wholesaler, and retailer is a distribution channel for industrial products such as x-ray machines, dental equipment, and safety goggles.

Question 16

The two types of distribution channels are:

Accepted Answer

Distribution channels are broadly categorized into industrial channels, which focus on the supply of goods and services to industrial users, and consumer channels, which focus on the distribution of goods and services to individual consumers.

Question 17

Geraldine Fadsi's job in the entertainment industry is to bring together entertainers and organizations looking to hire entertainers.Fadsi is paid a commission, usually by the entertainer.Fadsi is acting as a:

Accepted Answer

Fadsi is acting as an agent because her role involves representing entertainers and facilitating deals between them and organizations looking to hire them, typically earning a commission for her services. Agents act as intermediaries in transactions without taking ownership of the goods or services being exchanged.

Question 18

Independent wholesalers that buy goods from manufacturers on their own account and then resell them to other businesses are:

Accepted Answer

Merchant wholesalers buy goods from manufacturers and then resell them to businesses, acting independently in the process. They take title to the goods they handle, differentiating them from brokers and agents who do not.

Question 19

A retailer would separate children's clothing purchased from Carter's into various sizes and types of clothing, such as size 6 shirts, size 2T shorts, and size 4T sun dresses.This process is called:

Accepted Answer

The process described is known as "sorting out," which involves organizing or separating items into different categories, sizes, or types, in this case, children's clothing by size and type.

Question 20

_____ is the breaking down of large shipments of similar merchandise into smaller, more usable quantities that can be sold to consumers and end users.

Accepted Answer

Breaking bulk refers to the process of taking large quantities of goods and breaking them down into smaller amounts that retailers or end users can purchase and utilize. This is a common practice in distribution and logistics to make products more accessible and manageable for sale.

Quiz 12: Distributing and Promoting Products and Services

A manufacturers' representative is sometimes called a(n) :