Question 1

U.S. banks provide their banking services through brick and mortar sites, by phone, and through on-line access. These various ways in which a customer can access their account information is called .

Accepted Answer

Place utility refers to making products or services available in locations convenient for consumers, such as through physical branches, phone, and online access.

Question 2

Which of the following is most likely to be a product stocked solely by an industrial distributor?

Accepted Answer

Wind turbines are typically specialized and large-scale products used in industries such as energy production. They would likely only be stocked and sold by industrial distributors who specialize in supplying products to companies in this industry. Tires, roofing nails, kitchen countertops, and office supplies are all products that can be commonly found in retail stores and are not necessarily exclusive to industrial distributors.

Question 3

When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a:

Accepted Answer

A retailer is a type of intermediary that buys goods from a wholesaler or producer and sells them directly to consumers for personal or household use. Therefore, if Sophie is buying organic produce for her household through a channel that has only one intermediary, that intermediary is most likely a retailer.

Question 4

Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. Which of the following marketing channels do these manufacturers most likely to use?

Accepted Answer

Manufacturers of convenience products like chewing gum typically use a channel that involves a wholesaler and a retailer to efficiently distribute their products to a wide range of consumers.

Question 5

If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are:

Accepted Answer

Channel decisions require long-term commitments as they involve selecting and developing relationships with specific intermediaries, such as distributors and retailers, who will carry and sell the product. Switching channels frequently can damage relationships and cause confusion among consumers. Therefore, it is crucial to carefully evaluate and plan channel decisions to ensure long-term success.

Question 6

Consumers receive the benefits of place utility when:

Accepted Answer

Place utility refers to the convenience of having products available in locations where consumers want to buy them. Therefore, the best choice is E. The other choices do not necessarily provide place utility - excessive travel (A), 24-hour retail (B), and card payments (D) provide other types of benefits, while stockpiling (C) may not necessarily be advantageous to consumers.

Question 7

Channel decisions are important to marketers mostly because:

Accepted Answer

Channel decisions involve long-term commitments and affect customer accessibility. Choosing the right channel is critical to a company's success because it determines how and where products will be sold and how customers will access them. The wrong channel can result in lost sales and missed opportunities. Therefore, channel decisions are highly important to marketers.

Question 8

Possession utility is best described as:

Accepted Answer

Possession utility refers to the availability of a product to the customer so they can use it or store it for future use.

Question 9

Netflix sells its movie services using its website, while Red Box sells its movie services using vending machines. From a customer's point of view, which of the following is true about Netflix and Red Box?

Accepted Answer

Netflix uses a direct-marketing channel by selling directly to consumers via its website, while Red Box uses vending machines, which act as a type of retailer.

Question 10

Jeff Wood's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces capital requirements for the producers. Jeff's company is an example of a(n) in a distribution channel.

Accepted Answer

An industrial distributor buys products from large producers and sells them to manufacturing companies. They also maintain an inventory of these products, which help reduce the capital requirements for the producers. This matches the description of Jeff's company.

Question 11

Which of the following describes a disadvantage of using industrial distributors?

Accepted Answer

Industrial distributors are less likely to handle bulky items or items that are slow sellers because these items can be costly to store and may not generate quick returns.

Question 12

Without wholesalers and other intermediaries:

Accepted Answer

Intermediaries, such as wholesalers and retailers, play a crucial role in the distribution channel by adding value through their expertise in logistics, inventory management, and marketing. Without them, manufacturers would have to take on these tasks themselves, which would likely be less efficient and increase costs. This would, in turn, result in higher prices for the final consumer.

Question 13

In a simple economy of five producers and five consumers, there would be transactions possible without an intermediary and ten transactions possible with one intermediary.

Accepted Answer

The answer of In a simple economy of five producers...

Question 14

Josh is the vice-president for the 20th Century Fox, a movie production company. He has the responsibility for managing the firm's marketing channels and its relationships with its marketing intermediaries. As a manager of its marketing intermediaries, part of Josh's role is to:

Accepted Answer

Josh's role as a manager of marketing intermediaries involves linking film producers to other middlemen, facilitating the distribution process.

Question 15

When three buyers purchase the products of three producers, nine transactions are required. If one intermediary serves both producers and buyers, the number of possible transactions is:

Accepted Answer

If there is one intermediary who serves both producers and buyers, then the intermediary needs to make the transaction with the producers first and then with the buyers. Therefore, there are only six transactions required:
1. Intermediary purchasing from producer 1
2. Intermediary purchasing from producer 2
3. Intermediary purchasing from producer 3
4. Intermediary selling to buyer 1
5. Intermediary selling to buyer 2
6. Intermediary selling to buyer 3

Therefore, the answer is D) six.

Question 16

Which of the following links producers to consumers through the purchase and reselling of products or contractual agreements?

Accepted Answer

The answer of Which of the following links producers to...

Question 17

Select Comfort, a producer of adjustable air mattresses, sells most of its products through direct mail sales and on its website. This channel would be classified as:

Accepted Answer

Select Comfort's distribution channel of selling through direct mail and website sales is an example of direct-marketing, where the company directly reaches out to the customers to promote and sell their products without involving any intermediaries like retailers or wholesalers.

Question 18

River City, Inc. is an independent business that takes title to products and carries inventories. River City, Inc. is most likely a(n):

Accepted Answer

The answer of River City, Inc. is an independent business...

Question 19

Caruthers Paint Manufacturing Company buys the chemicals it needs for producing its products from a chemical producer, Roth Chemicals. In this instance, through which of the following types of channels are the chemicals being distributed to Caruthers?

Accepted Answer

The answer of Caruthers Paint Manufacturing Company buys the chemicals...

Question 20

Eliminating a wholesaler from a marketing channel will:

Accepted Answer

The answer of Eliminating a wholesaler from a marketing channel...

Quiz 13: Marketing Channels and Supply-Chain Management