Deck 10: Distribution Place

Question 1

Intermediaries in a distribution channel can include:

A) wholesalers.
B) retailers.
C) industrial buyers.
D) All of the options listed.
E) both b and c.

Answer 1

All of the options listed.

Question 2

Australian products such as honey, tea, wine and native bush foods can be found in markets like Singapore, Japan and the United States. The various individuals or organisations that assist in moving the products from producers to the end consumer (such as businesses or individuals) are called_________:

A) carriers.
B) distributors.
C) wholesalers.
D) marketing intermediaries.

Answer 2

marketing intermediaries.

Question 3

As an agent for Massey Ferguson tractors, you are classed as an intermediary. Other intermediaries in the distribution channel for tractors and farm equipment include:

A) wholesalers.
B) retailers.
C) industrial buyers.
D) Options a, b and c.
E) Both b and c.

Answer 3

Options a, b and c.

Question 4

The path from the __________ or service provider to the end user is known as the __________ channel or marketing channel.

A) distributor, wholesale
B) distributor, distribution
C) manufacturer, distribution
D) manufacturer, production

Question 5

When Hass avocados are delivered to Woolworths warehouse facilities by Linfox transport, this approach to marketing is known as:

A) intensive distribution.
B) direct distribution.
C) indirect distribution.
D) exclusive distribution.
E) selective distribution.

Question 6

Coca-Cola distributes its soft drinks via every suitable intermediary. This distribution strategy is an example of:

A) exclusive distribution.
B) intensive distribution.
C) selective distribution.
D) thorough distribution.

Question 7

Across Australia, there are multiple farmers markets and makers markets, whereby producers of a variety of goods sell their products. This is an example of a ____:

A) wholesale channel distribution.
B) agent channel distribution.
C) retailer channel distribution.
D) direct channel distribution.

Question 8

By definition, the supply chain consists of the producer and marketing intermediaries as well as all of the other parties that play direct or indirect roles in getting products to:

A) consumers.
B) retailers.
C) wholesalers.
D) manufacturers.

Question 9

Tesla, Chanel and Rolex often try to control the distribution of their products and customer experience, due to the time and financial investment involved in the purchase. This approach to market coverage is known as:

A) intensive distribution.
B) direct distribution.
C) indirect distribution.
D) exclusive distribution.
E) selective distribution.

Question 10

When different stages of the distribution channel are combined under one management structure, it is known as:

A) a vertical marketing system.
B) horizontal channel integration.
C) vertical channel integration.
D) franchising.

Question 11

Apple Macbooks are available from licensed retailers and distributors in Australia. Retailers are licensed based on reputation and service, adding value to the strong Apple brand. This approach to market coverage is known as:

A) intensive distribution.
B) direct distribution.
C) indirect distribution.
D) exclusive distribution.
E) selective distribution.

Question 12

You have a small outlet selling fresh juices and decide to license your business model, this is known as:

A) a vertical marketing system.
B) horizontal channel integration.
C) vertical channel integration.
D) franchising.

Question 13

Which of the following distribution channels is/are logical?

A) Producer, retailer, wholesaler, consumer.
B) Producer, wholesaler, retailer, consumer.
C) Producer, agent/broker, consumer.
D) Producer, consumer.
E) Options b, c and d.

Question 14

The supply chain for grocery items is responsible for getting products to the end consumers. Which of the following would NOT be considered a part of a manufacturer such as 'Tip Top' bread's supply chain?

A) Raw materials suppliers.
B) Transport companies.
C) Wholesalers.
D) Retailers.
E) All of the options listed would be considered part of a manufacturer's supply chain.

Question 15

Freedom Furniture recently bought out one of their competitors, Bay Swiss, to create one retail entity. This is an example of:

A) vertical channel integration.
B) horizontal channel integration.
C) a vertical marketing system.
D) a horizontal marketing system.
E) exclusive distribution.

Question 16

After completing your university degree, you decide to buy a Boost Juice franchise. The application for a franchise comes with an information pack which explains that:

A) the franchisee generally supplies labour and capital for the business.
B) the franchisor licences the right to use its business model, or sell its products, to the franchisee.
C) the franchisor stipulates standards and rules by which the franchise business must operate.
D) Options a, b and c.
E) Both b and c.

Question 17

Order processing does NOT involve which of the following?

A) Managing the information required to receive, handle and fill a sales order.
B) Minimising costs and ensuring customer satisfaction.
C) Managing stocks of products to ensure availability.
D) A customer or salesperson (on behalf of a customer) placing an order.

Question 18

Cross-docking is defined as:

A) the practice of expediting the movement of goods from receipt to shipping.
B) the practice of storing products.
C) inventory management that involves holding only that stock that is about to be used or sold.
D) the physical handling of goods.

Question 19

Which of the following is an example of e-distribution?

A) RFID (radio frequency identification technology).
B) Cross-docking.
C) Inventory management.
D) The physical handling of goods.

Question 20

Online skincare and beauty retailers like Adore Beauty and Sephora have experienced high sale volumes due to COVID-19 lockdown restrictions across Australia. The just-in-time issue/s include:

A) insufficient safety stock.
B) unpredictable lead times.
C) unpredictable usage rates
D) Only C
E) All of the above.

Question 21

Most companies will use a range of transport options for their products. For example airfreight may be used for urgent items, sea freight for heavy or bulky items and road transport may be used to deliver to retailers. When it comes to deciding between transport options, managers understand that:

A) road transport has the most extensive infrastructure of all of the modes of transport.
B) sea freight is a relatively expensive transport option.
C) air freight is a relatively inexpensive transport option.
D) Options a, b and c.
E) Both a and c.

Question 22

As a consumer, when you buy something online, it is reassuring to be able to track your products movement through the postal or courier system so that you know where it is at any point in time, and when you can expect it to be delivered to your door. Businesses such as Woolworths are also keen to have this level of visibility in their supply chain. Visibility can be enhanced by:

A) the use of RFID technology to electronically tag products so that their movement in the distribution channel can be tracked.
B) members of the distribution channel using scanning technology.
C) members of the distribution channel using databases and reporting software.
D) Options a, b and c.
E) Both b and c.

Question 23

In the distribution of services, the main aim of scheduling is to:

A) manage inventory.
B) minimise labour.
C) increase customers.
D) smooth demand.

Question 24

Which of the following statements is correct?

A) Physical distribution may be required for physical inputs used in delivering service products.
B) Some services are delivered using infrastructure.
C) Service businesses should ensure labour is available at the right time and in the right quantities for customers to be served.
D) Scheduling in service businesses is designed to smooth demand.
E) All of the options listed.

Question 25

If a service provider can schedule demand, they can predict the behaviour of their customers. They can then act on this information to ensure labour is available when needed; for example Woolworths will open more checkouts from 4-6pm than from 9-10pm. Jetstar and Virgin airlines offer cheaper flights during weekdays for example when demand is at its lowest. Which of the following services would be least likely to be able to schedule demand?

A) A restaurant.
B) An electricity supplier.
C) A cinema.
D) A hospital.
E) Both a and c.

Question 26

Centrelink often choose strategic locations for their retail stores, as part of the retailing strategy. The below location considerations is/are correct:

A) Geographic area.
B) Proximity to complementary retailers.
C) Customer access to public transport and public parking.
D) All the above.
E) None of the above.

Question 27

Retailers provide a number of benefits to customers including time utility, place utility, __________ utility, advice and __________ service and exchange efficiencies.

A) service, online.
B) product, personal.
C) form, personal.
D) form, after-sales.

Question 28

A type of specialty retailer that focuses on a particular product category and attracts customers with low prices and a very wide variety of products within that category is a:

A) super-store.
B) category killer.
C) off-price retailer.
D) specialty store.

Question 29

The theory that retailers enter the market with low costs, low margins and low prices, but move to high costs and high prices as they seek to compete with copiers, only to then have to compete with new low-price entrants, is known as:

A) the wheel of retailing.
B) marketing strategy.
C) the product life cycle.
D) market churn.

Question 30

While sitting at the bus stop, you use your mobile phone to purchase some concert tickets. This purchase is an example of:

A) telemarketing.
B) mobile e-commerce.
C) direct marketing.
D) direct-response marketing.

Question 31

Avon and Tupperware provide their customers with a brochure who then place orders by mail, telephone or on the internet. This form of direct marketing is known as:

A) telemarketing.
B) catalogue marketing.
C) automatic vending.
D) direct-response marketing.

Question 32

Bunnings provide customer assistance to customise a new kitchen fit out, cut timber or carpet to suit a customer's needs. This could best be described as providing a____:

A) time utility.
B) place utility.
C) form utility.
D) exchange efficiency.
E) None of the options listed.

Question 33

A benefit that retailers offer in the distribution channel is exchange efficiency. This means that:

A) the number of parties that producers and wholesalers must deal with is reduced.
B) the number of sellers that consumers must deal with is reduced.
C) both a and b.
D) the number of parties that producers and wholesalers must deal with is increased.
E) the number of sellers that consumers must deal with is increased.

Question 34

Red Dot and The Reject Shop can be regarded as discount stores. This classification as a 'discount store' means that they tend to be characterised by:

A) high turnover.
B) high levels of customer service.
C) low margins.
D) Options a, b and c.
E) Both a and c.

Question 35

Michael Hill Jeweller, a chain of retail stores in Australia and New Zealand offering a wide variety of jewellery items, could best be described as a:

A) a specialty retailer.
B) a category killer.
C) an off-price retailer .
D) a discount store.
E) a showroom.

Question 36

Which of the following statements relating to the wheel of retailing theory is incorrect?

A) Retailers usually enter the market with low prices and low margins on their products.
B) Retailers usually enter the market with high margins on their products.
C) As a retailer's costs rise over time they are vulnerable to low cost competitors
D) As a retailer's prices rise over time they are vulnerable to low price, low margin competitors.
E) The wheel of retailing theory is similar to the product life cycle concept.

Question 37

With the rise of busier lifestyles, many consumers are buying a range of products such as fruit, alcohol, hot meals, coffee and snacks through dispensing machines at convenient locations like train stations, universities and student housing. This is an example of _________:

A) Telemarketing.
B) Catalogue marketing.
C) Door-to-door selling.
D) Automatic vending machines.
E) All of the options listed.

Question 38

As the marketing manager for Vodafone, you decide to embark on a direct marketing campaign with the objective of increasing your customer base. The direct marketing options available to you include:

A) telemarketing.
B) catalogue marketing.
C) door-to-door selling.
D) automatic vending machines.
E) All of the options listed.

Question 39

Retailers that sell manufacturers' 'seconds' or superseded products are best described as:

A) category killers.
B) off-price retailers.
C) discount stores.
D) specialty stores.
E) None of the options listed.

Question 40

Not for profits seeking donations to their cause or government health initiatives encouraging people to participate will often cold call individuals. This is an example of______:

A) online retailing.
B) telemarketing.
C) direct selling.
D) direct response marketing.
E) None of the options listed.

Question 41

Agents are engaged by buyers or sellers on an ongoing basis to represent them in negotiations with other marketing channel participants. Which type of agent is most commonly used by a small producer who cannot afford a sales force or marketing department?

A) Manufacturers' agent.
B) Commission merchant.
C) Buying agent.
D) Selling agent.

Question 42

Your company decides to engage someone on a short-term basis to negotiate on their behalf. This person has specialist knowledge and well established contacts in your industry. Your company is engaging a(n):

A) Manufacturers' agent.
B) Broker.
C) Buying agent.
D) Selling agent.

Question 43

Which of the following statements is correct?

A) Agents are intermediaries engaged on a short term or one-off basis to represent buyers or sellers in negotiations.
B) Brokers are intermediaries engaged on a long term basis to represent buyers or sellers in negotiations.
C) Brokers are intermediaries engaged on a short term or one-off basis to represent buyers or sellers in negotiations.
D) Both a and b.
E) None of the options listed.

Question 44

As an intermediary, which of the following could potentially be a benefit that a broker may be able to offer a business or consumer?

A) Specialist product or industry knowledge.
B) Help in identifying the most suitable product to meet a customer or business's needs.
C) A high level of service.
D) All of the options listed.
E) Both b and c.

Question 45

Which of the following statements is correct?

A) Agents and brokers can operate on behalf of buyers.
B) Agents and brokers can operate on behalf of sellers.
C) Agents and brokers can operate on behalf of both buyers and sellers.
D) Agents and brokers can act as intermediaries to connect members of the marketing channel.
E) All of the options listed.

Question 46

Full-service wholesalers are NOT which of the following?

A) Cash and carry wholesalers.
B) -merchandise wholesalers.
C) Limited-line wholesalers.
D) Specialty-line wholesalers.

Question 47

A wholesaler which is owned by the producer is known as a:

A) general-merchandise wholesaler.
B) limited-line wholesaler.
C) manufacturers' wholesaler.
D) specialty-line wholesaler.

Question 48

You are a wholesaler who purchases bananas from growers in Queensland and sells them to retailers throughout Australia. Your business never takes possession of the banana's because the growers ship directly to the retailers. Your service is an example of:

A) cash and carry wholesaling.
B) limited-line wholesaling.
C) drop shipping.
D) specialty-line wholesaling.

Question 49

Which of the following statements is incorrect?

A) Wholesaling does not include transactions with end consumers.
B) Wholesalers deal with businesses in the distribution channel.
C) Wholesalers tend to deal with large volumes of products in their transactions.
D) Wholesalers ly advertise in the mass media.
E) Wholesalers act as the connection between producers and retailers.

Question 50

Which of the following is a potential benefit provided by wholesalers?

A) A wholesaler can promote and sell a manufacturer's products to retailers.
B) A wholesaler can hold and manage a manufacturer's inventory.
C) A wholesaler can have bulk buying power with manufacturers and are able to pass on savings to retailers.
D) All of the options listed.
E) Both a and c.

Question 51

Campbells and European Food Wholesalers supply a limited number of lines of high-turnover products to small businesses, which pay in cash and transport the products themselves. This is an example of___:

A) merchant wholesaler.
B) cash and carry wholesaler.
C) general merchandise wholesaler.
D) speciality line wholesaler.
E) None of the above.