Question 1

The marketing channel of producer-retailer-consumer is most likely to be used by producers of which of the following products?

Accepted Answer

The answer of The marketing channel of producer-retailer-consumer is most...

Question 2

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 is a company that buys industrial products from manufacturers and sells them to industrial users, such as manufacturing companies. They typically maintain inventories of the products they sell, which can help to reduce capital requirements for manufacturers. This matches the description of Jeff's company, which buys machine tools and sells them to Midwestern manufacturing companies while carrying inventories of the tools. Therefore, the best choice is C) industrial distributor.

Question 3

Which of the following is the most commonly used channel for distributing business products?

Accepted Answer

The most direct and commonly used channel for distributing business products is from the producer directly to the organizational buyers. This channel is preferred for its efficiency and direct communication between the producer and the final buyer.

Question 4

Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following channels?

Accepted Answer

The answer of Large retailers such as J.C. Penney's and...

Question 5

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

Accepted Answer

Wind turbines are a specialized product that is typically used in the industrial sector. It is unlikely that a retail store would stock wind turbines, which makes it a product that is more likely to be exclusively found at an industrial distributor.

Question 6

Rob Stevens is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ____ to maintain contact with the firms using its products.

Accepted Answer

Agents are individuals or firms who represent a company in a sales capacity without necessarily having the authority to sell the product outright. They maintain contact with the firms using the products and provide market information to the producing company. Given that the firm is small and presently does not generate enough volume to justify hiring a sales force, using agents would be the most cost-effective way to maintain contact with their customers.

Question 7

Which of the following is an advantage of using an industrial distributor?

Accepted Answer

The answer of Which of the following is an advantage...

Question 8

Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) ____ channel.

Accepted Answer

Steelcase, Inc. markets its furniture directly to businesses, which means that it follows a producer-to-business buyer channel where the producer (Steelcase) directly sells its products to the business buyer.

Question 9

After direct-marketing, the next slightly longer marketing channel adds a(n)

Accepted Answer

The answer of After direct-marketing, the next slightly longer marketing...

Question 10

A producer is not likely to receive ____ from an industrial distributor.

Accepted Answer

An industrial distributor typically promotes its own brand and products, rather than the producer's brand. Therefore, a producer is not likely to receive aggressive promotion of its brand from an industrial distributor.

Question 11

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

Accepted Answer

Since Caruthers Paint Manufacturing Company buys its chemicals directly from the producer, Roth Chemicals, this is an example of direct distribution. There is no intermediary involved in the transaction.

Question 12

An independent businessperson who is paid a commission to sell complementary products of different producers in an assigned territory without actually taking title of the merchandise is a(n)

Accepted Answer

A manufacturers' agent is an independent businessperson who sells complementary products of different producers in an assigned territory without taking title of the merchandise. They are paid a commission for their sales and act as intermediaries between the producers and the end-users.

Question 13

Organizational buyers are especially partial to direct marketing channels when

Accepted Answer

Organizational buyers are especially partial to direct marketing channels when expensive and/or complex equipment is involved as it allows for in-depth product information and direct communication with the manufacturer or supplier.

Question 14

All of the following products are likely to use the producer-retailer-consumer marketing channel except for _____

Accepted Answer

U-Pick farm produce is typically sold directly to consumers without the involvement of a retailer, so it would not use the producer-retailer-consumer marketing channel. The other products listed are typically sold through retailers to reach consumers.

Question 15

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 channel intermediary that sells products directly to the end-user or consumer. In this scenario, Sophie is the end-user or consumer, and the intermediary she is using is selling organic produce directly to her household. Therefore, the intermediary is classified as a retailer.

Question 16

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

Accepted Answer

Industrial distributors may be hesitant to handle products that are bulky or slow-selling, as these items will tie up their inventory and take up valuable warehouse space. This can create difficulties for manufacturers who need assistance in distributing these types of products.

Question 17

A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances?

Accepted Answer

When a marketer wishes to enter a new geographic market but does not wish to expand the existing sales force, a channel that includes both a manufacturers' agent and an industrial distributor may be appropriate. The manufacturer's agent can provide specialized personnel to follow up on the work of the sales force, while the distributor can help to reach customers in the new market without the need for a large, expensive sales force. This can be particularly beneficial when customers are highly concentrated in one geographic area or when only one or two channels of distribution are available for products. However, if the sales force is already large and the marketer is thinking of cutting it down, it may not be necessary to add a distributors or agents to the channel.

Question 18

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, Netflix is using ____ and Red Box is using ___.

Accepted Answer

The answer of Netflix sells its movie services using its...

Question 19

Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channel are these manufacturers most likely to use?

Accepted Answer

Manufacturers of convenience products typically use a marketing channel that involves a producer, a wholesaler, a retailer, and a consumer. The manufacturer sells to a wholesaler, who then sells to a retailer, who ultimately sells to the consumer. This allows the manufacturer to reach a larger customer base through the retailers.

Question 20

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...

Quiz 13: Marketing Channels and Supply-Chain Management