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Merrill helps growers of fresh fruits and vegetables negotiate sales to food processing companies.However,once he has helped negotiate the transaction,he does not maintain a long-term relationship with the growers.Merrill is an example of a sales agent in this market.

A) True
B) False

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Items such as snow skis,lawnmowers,and other highly seasonal items are often held in ___________ warehouses during the months they are not in demand.


A) seasonal
B) distribution
C) set aside
D) storage

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

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Marketers normally provide form,time,place,information and service utility,but they are seldom involved in providing possession utility.

A) True
B) False

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In the battle between electronic retailers and traditional "bricks and mortar" retailers,the electronic retailers seem to have all of the advantages needed to emerge as the clear winners.

A) True
B) False

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


A) possession
B) information
C) form
D) promotion

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

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Which of the following statements about marketing intermediaries is true?


A) All channels of distribution must contain at least one marketing intermediary.
B) Marketing intermediaries and their functions can be eliminated.
C) Marketing intermediaries survive because they can perform marketing functions faster and more cheaply than producers and consumers.
D) The costs added to products by marketing intermediaries usually exceed the value they add to products.

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

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


A) time
B) allocative
C) response
D) form

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

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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.

A) True
B) False

Correct Answer

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Limited-function wholesalers are a type of merchant wholesaler.

A) True
B) False

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What is utility? What are the major types of utility? Give an example of how marketing intermediaries can provide each type of utility.

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Utility is the value,or want-satisfying ...

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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.

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

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Imaginex Toys,Inc.produces toys designed to stimulate the imaginations of young children.In order to control all of the marketing operations,Imaginex owns all of the organizations in the channel of distribution for its toys,including a chain of Imaginex retail stores.The approach taken by Imaginex is known as an administered distribution system.

A) True
B) False

Correct Answer

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

A) True
B) False

Correct Answer

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A large number of traditional retailers have developed online sites in recent years,giving customers a choice of shopping techniques.

A) True
B) False

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

A) True
B) False

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Merchant wholesalers do not take title to the goods they handle.

A) True
B) False

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Hottaire 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 Hottaire provides its customers with __________ utility.


A) possession
B) time
C) marginal
D) situational

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

Correct Answer

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A major advantage of direct marketing is that it is a very convenient way for consumers to shop.

A) True
B) False

Correct Answer

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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:


A) tel-tailing.
B) indirect marketing.
C) telemarketing.
D) multilevel marketing.

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

Correct Answer

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Although air transport currently accounts for only a small percentage of all shipments,it has become a critical mode in many industries.

A) True
B) False

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