Question 1

All of the people and organizations that buy,resell,and promote a product "downstream" as it makes it to the end user is referred to as the _____.
A) distribution channel
B) retail channel
C) supply channel
D) communication channel
E) business channel

Accepted Answer

A distribution channel refers to the path that a product takes from the manufacturer to the end user, which includes all of the intermediaries along the way such as wholesalers, distributors, and retailers. Other options such as retail channel and supply channel would only refer to specific parts of the distribution channel, and communication channel and business channel are not accurate terms to describe the entities involved in the physical movement of the product.

Question 2

Organizations that are involved in the process of producing,promoting,and delivering company products to its user but are not active participants in selling of the products are referred to as _____.
A) supply chains
B) marketing channels
C) mail-order wholesalers
D) drop shippers
E) off-price retailers

Accepted Answer

A

Question 3

A company may partner with intermediaries because:
A) the consumer needs marketing expertise.
B) the producer needs the ability to lend the consumer credit.
C) the producer needs shipping and handling capabilities.
D) the producer needs to contact other producers.
E) the consumer needs the right producers.

Accepted Answer

The producer may partner with intermediaries, such as shipping and handling companies or logistics providers, to ensure efficient and cost-effective delivery of their products to the consumers.

Question 4

Cash-and-carry wholesalers are an example of _____.
A) full-service wholesalers
B) brokers
C) manufacturer's agents
D) drop shippers
E) limited-service wholesalers

Accepted Answer

Cash-and-carry wholesalers are limited-service wholesalers, meaning they offer a limited range of services compared to full-service wholesalers. They typically only sell products directly to customers who visit their warehouse or showroom, rather than delivering products or providing additional services like marketing or credit.

Question 5

The firms that a company partners with to actively promote and sell a product as it travels through its marketing channel to users are referred to by the firm as its _____.
A) supply members
B) channel members
C) marketing partners
D) corporate members
E) B2B partners

Accepted Answer

Channel members are the firms that a company partners with to actively promote and sell its products as it travels through the marketing channel to reach users.

Question 6

Mary ran into a store dedicated to the newest cat foods offered by her favorite pet food provider.She has so much fun interacting with the free samples and toys,that she brings her cat Fluffy to the store the next week,but finds that the store is no longer there.Mary had most likely found a(n)_____.
A) convenience store
B) specialty store
C) pop-up store
D) category killer
E) off-price retailer

Accepted Answer

The store was likely a pop-up store, which are temporary retail spaces that are open for a short period of time to promote a product or brand. This would explain why the store was not there the next week when Mary returned with her cat.

Question 7

A business that purchases products in large quantities from producers and then sells it to another entity is known as a _____.
A) broker
B) retailer
C) distributor
D) wholesaler
E) consumer

Accepted Answer

A wholesaler is a business that purchases products in large quantities from producers and then sells it to another entity, such as a retailer or another wholesaler. Brokers do not physically handle the products but instead connect buyers and sellers. Retailers sell products directly to the end consumers, while distributors can refer to both wholesalers and businesses that work directly with the producers to get their products to market. Lastly, consumers are the end-users of the products.

Question 8

A category killer is a type of specialty store that sells a high volume of a particular product.

Accepted Answer

A category killer is a store that specializes in a particular product or product category and carries a vast selection of products within that category. They are known for offering low prices and a wide range of options, making them a popular choice for consumers seeking a specific product.

Question 9

The simplest marketing channel consists of just three parties.

Accepted Answer

The simplest marketing channel consists of two parties: the producer and the consumer, with no intermediaries involved.

Question 10

How companies sell is just as important as what they sell.

Accepted Answer

How companies sell, through marketing, advertising, and other tactics, can greatly impact their success in reaching and engaging customers.

Question 11

Companies strive to choose not only the best marketing channels,but the best channel partners.

Accepted Answer

Channel partners play a crucial role in a company's distribution strategy and can greatly impact the success of their marketing efforts, so it is important for companies to carefully select the right partners to work with.

Question 12

Brokers take title to the products they sell.

Accepted Answer

Brokers act as intermediaries between buyers and sellers and do not take title to the products they sell. They facilitate the transaction while the products remain in the possession of the seller until they are handed over to the buyer.

Question 13

_____ sell specialty products that they display on their own racks in stores.
A) Rack jobbers
B) Truck jobbers
C) Truck wholesalers
D) Mail-order wholesalers
E) Dealers

Accepted Answer

Rack jobbers sell specialty products that they display on their own racks in stores. Truck jobbers sell a variety of products from their trucks, truck wholesalers sell to retailers from their trucks, and mail-order wholesalers sell products through mail-order catalogs. Dealers can refer to individuals or businesses that sell products, but this term is not specific to the practice of displaying specialty products on racks in stores.

Question 14

Outlet stores are oversized department stores that carry a broad array of general merchandise as well as groceries.

Accepted Answer

Outlet stores typically specialize in selling discounted or clearance merchandise from a specific brand or retailer, and do not typically carry groceries or a broad array of general merchandise.

Question 15

_____ are characterized as having a wide variety of household and personal types of merchandise such as clothing and jewelry.
A) Off-price retailers
B) Drugstores
C) Supermarkets
D) Department stores
E) Warehouse clubs

Accepted Answer

Department stores typically offer a wide variety of household and personal merchandise, including clothing and jewelry. Off-price retailers may also offer a variety of merchandise, but their focus is on offering discounts on brand-name items. Drugstores and supermarkets typically have a more limited selection of household and personal merchandise, and warehouse clubs typically focus on bulk purchases of a narrower range of items.

Question 16

_____ are characterized by selling products at a discount to people who pay an annual membership fee to join them.
A) Off-price retailers
B) Drugstores
C) Supermarkets
D) Department stores
E) Warehouse clubs

Accepted Answer

Warehouse clubs are characterized by selling products at a discount to people who pay an annual membership fee to join them. They offer bulk buying options to their members, which further leads to cost savings.

Question 17

Wholesalers resell goods to other companies without transforming the goods.

Accepted Answer

Wholesalers purchase goods in bulk from manufacturers or suppliers and resell them to retailers or other businesses without altering or transforming the goods in any way.

Question 18

Door-to-door sales and telemarketing are examples of direct marketing.

Accepted Answer

Direct marketing refers to promoting goods or services to potential customers through direct communication without any intermediaries. Door-to-door sales and telemarketing are considered examples of direct marketing as they involve direct communication between the seller and the consumer.

Question 19

The lines between retailers,wholesalers,and producers are very easy to distinguish.

Accepted Answer

The lines between retailers, wholesalers, and producers can sometimes be blurred, especially with the rise of e-commerce and direct-to-consumer models. Many producers now sell directly to consumers, and some retailers and wholesalers also produce their own products. Additionally, some businesses may operate as both a retailer and a wholesaler, buying products in bulk from producers to sell to other retailers or directly to consumers.

Question 20

A product's supply chain includes transportation companies such as railroads.

Accepted Answer

Transportation companies such as railroads are typically part of a product's supply chain, as they are responsible for moving goods from one location to another.

Quiz 8: Using Marketing Channels to Create Value for Customers

All of the people and organizations that buy,resell,and promote a product "downstream" as it makes it to the end user is referred to as the _____.

Organizations that are involved in the process of producing,promoting,and delivering company products to its user but are not active participants in selling of the products are referred to as _____.

A company may partner with intermediaries because:

Cash-and-carry wholesalers are an example of _____.

The firms that a company partners with to actively promote and sell a product as it travels through its marketing channel to users are referred to by the firm as its _____.

A business that purchases products in large quantities from producers and then sells it to another entity is known as a _____.