MKTG 3340 Exam 3 Questions With Complete Solutions

How do intermediaries create value? correct answer: Transactional Function: buying/selling/risk taking Logistical Function: storing/assorting (mix of products)/sorting(lots of a single product)/bulk breaking(one large item broken down)/transporting Facilitating: financing/grading/marketing info and research We use intermediaries to: correct answer: make a product or service available by consumers or industrial use be more efficient: reduce # of contacts allow firms to focus on core competencies reduce financial risk and investment Different types of intermediaries correct answer: Merchant Wholesalers Agents and Brokers Middlemen (intermediary between manufacturer and end-user) Retailer (sells to consumers) Distributor (variety of distribution functions) Dealer (can be a distributor, wholesaler, retailer, etc) Merchant Wholesalers correct answer: Independently owned firms take title to own the merchandise -Full service: general or specialty -limited service: Rack jobbers (stock racks), cash and carry wholesalers (sell to those who call, provide transportation and pay cash), drop shippers (desk jobbers- solicit orders and