Chapter 12 of Introduction to Business Test Bank by OpenStax with verified questions and answers, fully updated for 2025–2026 academic use and exam preparation.

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Chapter 12 DISTRIBUTING AND PROMOTING PRODUCTS AND SERVICES


TRUE-FALSE QUESTIONS

Title: ANSWER: T REFERENCE: The Nature and Functions of Distribution LEARNING OUTCOME: 1
1. For most corporations, physical-distribution activities are usually the responsibility of the marketing
department.
a. True
b. False

Title: ANSWER: T REFERENCE: The Nature and Functions of Distribution LEARNING OUTCOME: 1
2. A distribution channel is a series of marketing entities through which goods and services pass on their
way from producers to end users.
a. True
b. False

Title: ANSWER: T REFERENCE: The Nature and Functions of Distribution LEARNING OUTCOME: 1
3. Agents are sales representatives for manufacturers or wholesalers and usually are hired on a
commission basis.
a. True
b. False

Title: ANSWER: T REFERENCE: Wholesaling LEARNING OUTCOME: 2
4. An intermediary that takes possession and title of goods is called a merchant wholesaler.
a. True
b. False

Title: ANSWER: T REFERENCE: The Competitive World of Retailing LEARNING OUTCOME: 3
5. An example of nonstore retailing is the vending machine from which you purchased a soda.
a. True
b. False

Title: ANSWER: T REFERENCE: The Competitive World of Retailing LEARNING OUTCOME: 3
6. Internet retailing is also called e-retailing.
a. True
b. False

Title: ANSWER: T REFERENCE: The Competitive World of Retailing LEARNING OUTCOME: 3
7. A retailer is showing concern for a store’s atmosphere when he considers the type of store fixtures to
have, the size and type of signage to use, the type of background music to play, and the number and type
of employees to hire.
a. True
b. False

,Title: ANSWER: T REFERENCE: Using Supply Chain Management to Increase Efficiency and Customer
Satisfaction LEARNING OUTCOME: 4
8. Supply chain management plays a dual role. Its first role is as a communicator of customer demand that
extends from the point of sale all the way back to the supplier. The second role is as a physical flow
process that engineers timely and effective movement of products.
a. True
b. False

Title: ANSWER: T REFERENCE: Promotional Goals LEARNING OUTCOME: 5
9. The goal of all promotion is to stimulate action.
a. True
b. False

Title: ANSWER: T REFERENCE: Promotional Goals LEARNING OUTCOME: 5
10. Information promotion is more common in the early stages of the product life cycle.
a. True
b. False

Title: ANSWER: T REFERENCE: Promotional Goals LEARNING OUTCOME: 5
11. Types of promotional goals include creating awareness, increasing the use of products, and identifying
potential customers.
a. True
b. False

Title: ANSWER: F REFERENCE: The Importance of Personal Selling LEARNING OUTCOME: 7
RATIONALE: Brainstorming is a process often used to develop new products. Prospecting is the term used
to describe the search for potential customers.
12. Salespeople typically use brainstorming to look for sales prospects, those people who are most likely to
buy the seller's offerings.
a. True
b. False

Title: ANSWER: F REFERENCE: The Importance of Personal Selling LEARNING OUTCOME: 7
13. The final stage of the selling process is closing the sale.
a. True
b. False

Title: ANSWER: T REFERENCE: Sales Promotion LEARNING OUTCOME: 8
14. Sales promotions are marketing events or sales efforts that stimulate consumer buying.
a. True
b. False

Title: ANSWER: F REFERENCE: Sales Promotion LEARNING OUTCOME: 8 RATIONALE: It is an example of
product placement
15. The frequent reference to Chili's restaurants on the television show The Office is probably an example
of co-marketing.
a. True
b. False
.
October 22, 2018 2

, Title: ANSWER: T REFERENCE: Public Relations Helps Build Goodwill LEARNING OUTCOME: 9
16. Public relations is the term used for any communication or activity designed to win goodwill or prestige
for a company or person.
a. True
b. False

Title: ANSWER: F REFERENCE: Public Relations Helps Build Goodwill LEARNING OUTCOME: 9
RATIONALE: Publicity is information about a company or product that appears in the news media and is not
directly paid for by the company.
17. Publicity is any information that a company issues to the media that is paid for by the company.
a. True
b. False

Title: ANSWER: T REFERENCE: Trends in Promotion and Distribution LEARNING OUTCOME: 10
18. Blogs provide marketers with a real-time dialogue with customers and an avenue to promote their
products.
a. True
b. False

REFERENCE: Trends in Promotion and Distribution LEARNING OUTCOME: 10 RATIONALE: Podcasts are
basically blogs with an audio element.
19. Podcasts are significantly different from blogs.
a. True
b. False
Title: ANSWER: F


MULTIPLE CHOICE QUESTIONS

Title: ANSWER: D REFERENCE: The Nature and Functions of Distribution LEARNING OUTCOME: 1
1. _____ is the efficient management of the acquisition of raw materials to the factory and the movement
of products from the producer to industrial users and consumers.
A. Material handling
B. Transportation
C. Exchange
D. Distribution
E. Intermediation

Title: ANSWER: A REFERENCE: The Nature and Functions of Distribution LEARNING OUTCOME: 1
RATIONALE: Physical distribution is the efficient management of the acquisition of raw materials to the
factory and the movement of products from the producer to industrial users and consumers.
2. Leon Georges works in the warehouse for a manufacturer of air-purification systems. He is responsible
for the transportation of metal components, preformed plastic, etc. used to manufacture the systems as
well as the efficient movement of the finished systems from the manufacturing facility to the warehouse to
distribution trucks. Georges is involved in:
A. distribution
B. intermediation
C. countertrading
October 22, 2018 3