Question 1

A manufacturer that forbids its dealers from carrying its competitors' products is engaged in _____  _____.

Accepted Answer

The answer of A manufacturer that forbids its dealers from...

Question 2

When a manufacturer sells a product to a middleman only under the condition that the middleman also buys another (possibly unwanted) product from the manufacturer, the two companies have entered into a  _____ _____.

Accepted Answer

The answer of When a manufacturer sells a product to...

Question 3

In 1989, Seeds of Change started with a simple mission: "To preserve biodiversity and promote sustainable, organic agriculture." With its ever-expanding line of Certified Organic Foods, it has stayed True to its mission. It uses only the freshest, select, organic ingredients. All are great tasting and healthy and just as nature intended. Seeds of Change also seeks out unique ingredients such as quinoa, an ancient and little-known South American grain that is high in protein and a valuable source of many amino acids. By using quinoa, Seeds of Change is helping to preserve a nutritious food that might have otherwise been lost for future generations. In close collaboration with an extensive network of certified organic seed growers and plant breeders, Seeds of Change cultivates, studies, refines, and expands the products it provides to consumers.
-For the first years of its existence, the only place you could buy Seeds of Change products was at Whole Food Markets. Recently, Seeds of Change established its own Web site from which consumers can purchase its entire product line. In other words, Seeds of Change has engaged in:
A) multiple sourcing.
B) disintermediation.
C) cross-selling.
D) collaborative selling.
E) relationship marketing.

Accepted Answer

By establishing its own website to sell products directly to consumers, Seeds of Change has engaged in disintermediation, which means removing intermediaries from the distribution chain.

Question 4

In 1989, Seeds of Change started with a simple mission: "To preserve biodiversity and promote sustainable, organic agriculture." With its ever-expanding line of Certified Organic Foods, it has stayed True to its mission. It uses only the freshest, select, organic ingredients. All are great tasting and healthy and just as nature intended. Seeds of Change also seeks out unique ingredients such as quinoa, an ancient and little-known South American grain that is high in protein and a valuable source of many amino acids. By using quinoa, Seeds of Change is helping to preserve a nutritious food that might have otherwise been lost for future generations. In close collaboration with an extensive network of certified organic seed growers and plant breeders, Seeds of Change cultivates, studies, refines, and expands the products it provides to consumers.
-The network of organic seed growers and plants breeders that supply Seeds of Change, and the retailers that sell Seeds of Change products are part of its:
A) logistics network.
B) production channel.
C) distribution channel.
D) middlemen hierarchy.
E) marketing program.

Accepted Answer

The network of organic seed growers and plant breeders that supply Seeds of Change, along with the retailers that sell its products, form its distribution channel. This channel encompasses all the processes and intermediaries involved in getting the product from the manufacturer to the consumer.

Question 5

In 1989, Seeds of Change started with a simple mission: "To preserve biodiversity and promote sustainable, organic agriculture." With its ever-expanding line of Certified Organic Foods, it has stayed True to its mission. It uses only the freshest, select, organic ingredients. All are great tasting and healthy and just as nature intended. Seeds of Change also seeks out unique ingredients such as quinoa, an ancient and little-known South American grain that is high in protein and a valuable source of many amino acids. By using quinoa, Seeds of Change is helping to preserve a nutritious food that might have otherwise been lost for future generations. In close collaboration with an extensive network of certified organic seed growers and plant breeders, Seeds of Change cultivates, studies, refines, and expands the products it provides to consumers.
-Seeds of Change uses a(n) _____ channel of distribution when it sells to consumers through its Web site.
A) flexible
B) inflexible
C) intensive
D) direct
E) indirect

Accepted Answer

Seeds of Change uses a direct channel of distribution when it sells to consumers through its website, as it involves selling products directly to the consumer without an intermediary.

Question 6

In 1989, Seeds of Change started with a simple mission: "To preserve biodiversity and promote sustainable, organic agriculture." With its ever-expanding line of Certified Organic Foods, it has stayed True to its mission. It uses only the freshest, select, organic ingredients. All are great tasting and healthy and just as nature intended. Seeds of Change also seeks out unique ingredients such as quinoa, an ancient and little-known South American grain that is high in protein and a valuable source of many amino acids. By using quinoa, Seeds of Change is helping to preserve a nutritious food that might have otherwise been lost for future generations. In close collaboration with an extensive network of certified organic seed growers and plant breeders, Seeds of Change cultivates, studies, refines, and expands the products it provides to consumers.
-When Seeds of Change sells in products in Whole Food Markets is using a(n) _____ channel.
A) flexible
B) inflexible
C) intensive
D) direct
E) indirect

Accepted Answer

Seeds of Change selling its products in Whole Food Markets indicates the use of an intermediary (the store) to reach its consumers, which is characteristic of an indirect channel.

Question 7

In 1989, Seeds of Change started with a simple mission: "To preserve biodiversity and promote sustainable, organic agriculture." With its ever-expanding line of Certified Organic Foods, it has stayed True to its mission. It uses only the freshest, select, organic ingredients. All are great tasting and healthy and just as nature intended. Seeds of Change also seeks out unique ingredients such as quinoa, an ancient and little-known South American grain that is high in protein and a valuable source of many amino acids. By using quinoa, Seeds of Change is helping to preserve a nutritious food that might have otherwise been lost for future generations. In close collaboration with an extensive network of certified organic seed growers and plant breeders, Seeds of Change cultivates, studies, refines, and expands the products it provides to consumers.
-When the company first started marketing its brand of products, it used _____ distribution.
A) exclusive
B) intensive
C) direct
D) selective
E) scrambled

Accepted Answer

The answer of In 1989, Seeds of Change started with...

Question 8

In 1989, Seeds of Change started with a simple mission: "To preserve biodiversity and promote sustainable, organic agriculture." With its ever-expanding line of Certified Organic Foods, it has stayed True to its mission. It uses only the freshest, select, organic ingredients. All are great tasting and healthy and just as nature intended. Seeds of Change also seeks out unique ingredients such as quinoa, an ancient and little-known South American grain that is high in protein and a valuable source of many amino acids. By using quinoa, Seeds of Change is helping to preserve a nutritious food that might have otherwise been lost for future generations. In close collaboration with an extensive network of certified organic seed growers and plant breeders, Seeds of Change cultivates, studies, refines, and expands the products it provides to consumers.
-About two years ago, the company decided to make its products available in the organic sections of large national supermarket chains. The recent decision to make its products available on the Internet could have led to _____ with the national supermarket chains.
A) horizontal channel empowerment
B) vertical conflict
C) horizontal integration
D) vertical integration
E) horizontal conflict

Accepted Answer

Selling products directly to consumers online can lead to vertical conflict with existing retail partners like supermarket chains, as it introduces competition between the manufacturer and its retailers.

Question 9

In 1989, Seeds of Change started with a simple mission: "To preserve biodiversity and promote sustainable, organic agriculture." With its ever-expanding line of Certified Organic Foods, it has stayed True to its mission. It uses only the freshest, select, organic ingredients. All are great tasting and healthy and just as nature intended. Seeds of Change also seeks out unique ingredients such as quinoa, an ancient and little-known South American grain that is high in protein and a valuable source of many amino acids. By using quinoa, Seeds of Change is helping to preserve a nutritious food that might have otherwise been lost for future generations. In close collaboration with an extensive network of certified organic seed growers and plant breeders, Seeds of Change cultivates, studies, refines, and expands the products it provides to consumers.
-To get its products on the shelves of national supermarket chains, Seeds of Change most likely had to pay a:
A) termination fee.
B) distribution fee.
C) service charge.
D) slotting fee.
E) failure-protection fee.

Accepted Answer

To get its products on the shelves of national supermarket chains, Seeds of Change most likely had to pay a slotting fee, which is a common practice for securing shelf space in retail stores.

Quiz 14: Channels of Distribution

A manufacturer that forbids its dealers from carrying its competitors' products is engaged in _ _.

When a manufacturer sells a product to a middleman only under the condition that the middleman also buys another (possibly unwanted) product from the manufacturer, the two companies have entered into a _ _.