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The Newsville City Press is a daily newspaper serving a city with a population of just over 200,000. The publishers have placed vending machines for their paper throughout Newsville and its suburbs. They also sell their papers at most of the supermarkets, convenience stores, bookstores, and drug stores in the area. The Newsville City Press uses an intensive distribution strategy.

A) True
B) False

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Supply chain management not only deals with the movement of materials, parts, and finished goods, it also manages the return of goods and recycling of materials when appropriate.

A) True
B) False

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Rodney Halpern works in the marketing department of a major manufacturing firm. Much of his job involves managing the movement of materials, parts, and information from suppliers to his firm. He tries to coordinate these flows with his firm's factory processes and assists with the efficient movement of finished goods to final consumers. These activities suggest that Rodney's job responsibilities focus on:


A) merchant wholesaling.
B) multilevel marketing.
C) utility processing.
D) supply chain management.

E) B) and C)
F) A) and D)

Correct Answer

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Direct mail, telemarketing, and catalog sales are all common examples of:


A) direct marketing.
B) downline selling.
C) multilevel marketing.
D) direct selling.

E) B) and C)
F) A) and B)

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In the terminology of multilevel marketing, which of the following statements about the relationship between upliners and downliners is most accurate? In multilevel marketing,


A) upliners are intermediaries who deal directly with final customers, while downliners are intermediaries who coordinate the transportation and storage services the upliners need to move the goods they sell through the channel of distribution.
B) upliners are salespeople who act as independent contractors, earning commissions on their own sales and also on the sales of downliners, who are additional salespeople that they recruit.
C) upliners sell through electronic retailing arrangements, while downliners use more traditional methods of retail selling.
D) upliners use intensive distribution strategies to sell a good, while downliners use either a selective or exclusive distribution strategy to sell the same type of good.

E) All of the above
F) B) and C)

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The entire collection of organizations that move goods and services from the source of raw materials to the final consumer is referred to as the supply chain.

A) True
B) False

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Loundes Enterprises loads its products into truck trailers, then loads the trailers onto ships to transport long distances. Once the ship reaches the port nearest the final destination, the trailers are unloaded and hauled to their final destination by truck. Loundes' practice of transporting truck trailers on ships is known as shipping.


A) waterwheel
B) whitecap
C) fishyback
D) flexed-modal

E) A) and B)
F) All of the above

Correct Answer

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Firms that rely on electronic retailing are almost guaranteed success because they give companies easy access to literally millions of consumers all over the world.

A) True
B) False

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One drawback of kiosks is that their high overhead costs result in low profit margins.

A) True
B) False

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Warehouse clubs are usually smaller than supermarkets.

A) True
B) False

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Corinne is a marketing manager who specializes in logistical problems. In her position, Corrine is likely to focus mainly on managing the flow of goods, and leave issues about how to manage the flow of information to managers in other areas of marketing.

A) True
B) False

Correct Answer

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Discount stores owe much of their success to a competitive strategy based on:


A) low prices.
B) extra service.
C) special credit arrangements.
D) a wide selection in a limited number of categories of goods.

E) B) and C)
F) C) and D)

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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

E) A) and C)
F) A) and B)

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Retailers are marketing intermediaries who sell to ultimate consumers.

A) True
B) False

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In , salespeople are independent contractors who not only sell the product, but also recruit additional salespeople.


A) telemarketing
B) two-stage marketing
C) hierarchical marketing
D) multilevel marketing

E) B) and C)
F) None of the above

Correct Answer

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Telemarketing is the sale of goods and services by telephone.

A) True
B) False

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Marcia Baker ships orchids and other perishable flowers from her greenhouses near San Francisco, California to florists thousands of miles away in cities such as New York, Boston, and Philadelphia. Since the flowers must reach the florists as quickly as possible, the best mode of transportation for Marcia to use would be:


A) railroads.
B) trucks.
C) air.
D) ships.

E) B) and D)
F) A) and C)

Correct Answer

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Inverted logistics is the term used for the activities involved in bringing products back to the producer due to defects or for recycling of materials.

A) True
B) False

Correct Answer

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The main difference between agents and brokers is that agents perform a wide array of marketing functions while brokers only negotiate exchanges between buyers and sellers.

A) True
B) False

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Category killer stores tend to compete mainly on the basis of carrying a wide array of products, superior service, and low prices.

A) True
B) False

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