Question 1

__________ may represent several producers in a specific territory, as long as they do not represent competing products.
A) Consignment brokers
B) Sales contractors
C) Manufacturer's agents
D) Freight forwarders

Accepted Answer

Manufacturer's agents represent multiple producers in a specific territory but do not represent competing products. Consignment brokers handle the sale of goods on behalf of the owner and take possession of the goods to sell them, while sales contractors work for a particular company and are responsible for achieving sales targets. Freight forwarders are responsible for arranging and tracking the shipment of goods from one place to another.

Question 2

The Knot is an online company that helps people with the complex task of planning a wedding. Multiple vendors are recommended for things like flowers, caterers, wedding gowns, and more. Through The Knot, a couple can establish a website that acts as a registry. Once the couple is married, the website directs them to another site having to do with beginning married life. What type of utility or utilities is this site providing to its users?
A) Form only
B) Service only
C) Service and information
D) Form and service

Accepted Answer

The Knot provides a service by recommending vendors for wedding planning and providing a website for couples to establish a registry. Additionally, the website directs couples to information about beginning married life. Therefore, the site provides both a service and information to its users.

Question 3

____________ wholesalers are independently owned and take title to the goods they handle.
A) Full service broker
B) Merchant
C) Agent
D) Primary

Accepted Answer

Merchants take title to the goods they handle and assume the risks and responsibilities associated with ownership. Full service brokers and agents do not take ownership of goods, and primary wholesalers are those who purchase goods directly from manufacturers.

Question 4

The two basic types of merchant wholesalers are:
A) full-service wholesalers and limited-function wholesalers.
B) functional wholesalers and distributive wholesalers.
C) independent wholesalers and subsidiary wholesalers.
D) capital wholesalers and full-value wholesalers.

Accepted Answer

The answer of The two basic types of merchant wholesalers...

Question 5

At Stockman's Butcher Shop the butchers will hand cut steaks to the thickness their customers specify and trim off the excess fat. This extra service provides ________ utility.
A) possession
B) form
C) secondary
D) alterational

Accepted Answer

Hand cutting steaks to a customer's specified thickness and trimming excess fat adds value to the product, transforming it into a specific form desired by the customer. This is an example of form utility.

Question 6

___________ are merchant wholesalers who perform all of the distribution functions.
A) Retailers
B) Intensive contact wholesalers
C) Total-capacity wholesalers
D) Full-service wholesalers

Accepted Answer

Full-service wholesalers perform all distribution functions, including warehousing, transportation, sales promotion, and credit. They provide a range of services to their customers, from product information to technical support.

Question 7

The main way __________ differ from agents is that they do not develop long-term relationships with the buyers or sellers they assist.
A) brokers
B) rack jobbers
C) wholesalers
D) sales discounters

Accepted Answer

Brokers are intermediaries who facilitate transactions between buyers and sellers, but they do not develop long-term relationships with them. In contrast, agents typically work on behalf of the buyer or seller and develop long-term relationships with them. Rack jobbers, wholesalers, and sales discounters may or may not develop long-term relationships with their customers, but this is not a defining characteristic of their role as intermediaries.

Question 8

Barbeau Heating and Cooling offers customers who buy air conditioners and furnaces free delivery and low installation charges. The company also offers a free follow-up inspection of the new equipment one month after it is installed. These services are ways that Barbeau provides its customers with __________ utility.
A) possession
B) time
C) marginal
D) situational

Accepted Answer

Barbeau is providing additional services to its customers beyond just selling air conditioners and furnaces. By offering free delivery and low installation charges, they are enhancing the value of owning the equipment. The free follow-up inspection also helps to ensure that the customer is satisfied with their purchase and that the equipment is working properly, which further enhances the possession utility.

Question 9

Marketing intermediaries that solicit orders from retailers or other wholesalers and have the products delivered directly from the producer to the buyer are known as:
A) drop shippers.
B) truck jobbers.
C) channel captains.
D) merchandise agents.

Accepted Answer

Drop shippers are marketing intermediaries that solicit orders from retailers or other wholesalers and have the products delivered directly from the producer to the buyer. They facilitate the process of getting products to customers without the need for physical handling, storage, or transportation of goods. The other options, truck jobbers, channel captains, and merchandise agents, refer to different types of intermediaries with different roles and responsibilities in the distribution process.

Question 10

Marketing intermediaries add ________ utility to products by having them available when consumers want them.
A) time
B) allocative
C) response
D) form

Accepted Answer

Marketing intermediaries add time utility by making products available at the right time and place for consumers to purchase. Allocative utility refers to the efficient allocation of goods and services to meet consumer demand, response utility refers to the ability to quickly adapt to changing consumer needs, and form utility refers to the physical characteristics and design of the product. While marketing intermediaries may contribute to these other types of utility, the most direct and important utility they provide is time.

Question 11

One way traditional retailers have maintained customers in the face of increasing competition from online sellers and other direct markers is to place more emphasis on providing _________ utility.
A) psychographic
B) place
C) service
D) form

Accepted Answer

The answer of One way traditional retailers have maintained customers...

Question 12

___________ are limited-function wholesalers who furnish shelves full of merchandise to retailers who sell these items on consignment.
A) Cash-and-carry wholesalers
B) Rack jobbers
C) Merchandise forwarders
D) Consignment agents

Accepted Answer

Rack jobbers are the limited-function wholesalers who furnish shelves full of merchandise to retailers who sell these items on consignment.

Question 13

_________ utility adds value to goods by having them available where people want them.
A) Spatial
B) Location specific
C) Place
D) Geographic

Accepted Answer

The answer of _________ utility adds value to goods by...

Question 14

Which of the following statements about service utility is most accurate? Service utility is:
A) becoming less important to retailers in this age of self-service marketing.
B) the one type of utility that online firms provide more efficiently than traditional retailers.
C) more likely to be provided by wholesalers than by retailers.
D) becoming crucial to traditional retailers as they try to prevent their customers from defecting to firms using direct marketing.

Accepted Answer

Service utility refers to the added value of customer service, such as providing information, special ordering, and after-sales support, that traditional retailers can offer to prevent customers from defecting to firms using direct marketing, which may offer lower prices but less service utility. Therefore, D, becoming crucial to traditional retailers as they try to prevent their customers from defecting to firms using direct marketing, is the most accurate statement.

Question 15

Marketing intermediaries can provide _________ utility by offering customers affordable credit, free delivery, and product guarantees.
A) possession
B) information
C) form
D) promotion

Accepted Answer

Marketing intermediaries can have several roles in providing utility to customers, but the examples listed (affordable credit, free delivery, and product guarantees) all relate to possession utility, which is the utility created by making goods and services available to customers in a way that is convenient for them to access and use. Affordable credit can make it easier for customers to purchase goods they want but can't afford to pay for upfront, while free delivery can save customers time and effort by bringing the products directly to them. Product guarantees can increase customers' confidence in the quality of the product, which can make them more willing to buy it.

Question 16

Limited-function wholesalers that mainly serve small businesses by selling them a limited assortment of goods are known as:
A) backdoor wholesalers.
B) consolidated wholesalers.
C) cash-and-carry wholesalers.
D) agency wholesalers.

Accepted Answer

Limited-function wholesalers that mainly serve small businesses by selling them a limited assortment of goods are known as cash-and-carry wholesalers. Backdoor wholesalers typically sell goods illegally, consolidated wholesalers offer a wider range of products and services, and agency wholesalers act as intermediaries between manufacturers and retailers.

Question 17

Stores that remain open 24 hours a day, seven days a week are providing _________ utility to their customers.
A) possession
B) time
C) service
D) schedule

Accepted Answer

Stores that remain open 24 hours a day, seven days a week are providing time utility to their customers as they are giving customers the opportunity to shop at their convenience, regardless of the time of day.

Question 18

E-Gadgets is a chain of electronics stores that specializes in devices and gadgets incorporating cutting-edge technologies. The company has more than 170 stores located in large cities throughout the Southeast and Midwest. E-Gadgets has chosen the locations of its stores so that most customers living in upper middle class and wealthy neighborhoods can get to an E-Gadgets store in less than 15 minutes. E-Gadgets is providing its customers with:
A) scrambled merchandising.
B) allocative utility.
C) place utility.
D) saturation marketing.

Accepted Answer

E-Gadgets is providing place utility by strategically locating its stores in areas where its target customers can easily access them.

Question 19

Retailers who have stores at convenient locations are trying to add value by:
A) using a horizontal distribution strategy.
B) using a broad resource allocation strategy.
C) providing place utility.
D) achieving market concentration.

Accepted Answer

Providing place utility means making sure the product or service is available at the right locations for customers, which can add convenience and value. Horizontal distribution strategy pertains to having multiple outlets at the same level in the distribution chain, while broad resource allocation strategy refers to allocating resources across many different areas. Achieving market concentration involves dominating a particular market niche.

Question 20

Unlike merchant wholesalers, ___________ never actually own the goods they help to distribute.
A) rack jobbers
B) retailers
C) cash-and-carry wholesalers
D) agents and brokers

Accepted Answer

Agents and brokers act as intermediaries between buyers and sellers and earn a commission for their services. They do not take ownership of the goods they distribute.

Quiz 15: Distributing Products

__________ may represent several producers in a specific territory, as long as they do not represent competing products.

____________ wholesalers are independently owned and take title to the goods they handle.

The two basic types of merchant wholesalers are: A) full-service wholesalers and limited-function wholesalers. B) functional wholesalers and distributive wholesalers. C) independent wholesalers and subsidiary wholesalers. D) capital wholesalers and full-value wholesalers.

At Stockman's Butcher Shop the butchers will hand cut steaks to the thickness their customers specify and trim off the excess fat. This extra service provides ________ utility.

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

The main way __________ differ from agents is that they do not develop long-term relationships with the buyers or sellers they assist.

Marketing intermediaries that solicit orders from retailers or other wholesalers and have the products delivered directly from the producer to the buyer are known as:

Marketing intermediaries add ________ utility to products by having them available when consumers want them.

One way traditional retailers have maintained customers in the face of increasing competition from online sellers and other direct markers is to place more emphasis on providing _________ utility.

___________ are limited-function wholesalers who furnish shelves full of merchandise to retailers who sell these items on consignment.

_________ utility adds value to goods by having them available where people want them.

Which of the following statements about service utility is most accurate? Service utility is:

Marketing intermediaries can provide _________ utility by offering customers affordable credit, free delivery, and product guarantees.

Limited-function wholesalers that mainly serve small businesses by selling them a limited assortment of goods are known as:

Stores that remain open 24 hours a day, seven days a week are providing _________ utility to their customers.

Retailers who have stores at convenient locations are trying to add value by:

Unlike merchant wholesalers, ___________ never actually own the goods they help to distribute.