Question 1

Fredox Inc. manufactures confectionaries, cakes, and other packaged foods. The firm tries to reach both consumers and business customers by using a combination of both direct and indirect distribution channels. The company uses these channels to maximize its sales.
-Which of the following, if true, will weaken the chances that Fredox will sell more through direct distribution?
A)The company sells only to a few business customers.
B)Listing fees for confectionaries are relatively high.
C)The products that Fredox sells have relatively low-unit value.
D)Most of the firm's business comes from bulk selling.
E)The company's sales increased by 6 percent last year.

Accepted Answer

Direct distribution channels are usually more expensive than indirect channels because they involve direct contact with customers. Therefore, it makes sense for companies to use direct channels when their product has a high-unit value. Since the products sold by Fredox have a relatively low-unit value, it may not make financial sense for Fredox to use direct distribution channels.

Question 2

Fredox Inc. manufactures confectionaries, cakes, and other packaged foods. The firm tries to reach both consumers and business customers by using a combination of both direct and indirect distribution channels. The company uses these channels to maximize its sales.
-In which of the following instances is the company engaging in direct marketing?
A)Selling to a commercial firm through salespeople
B)Selling to retail stores in Canada
C)Selling to large shopping malls
D)Selling through a third-party website
E)Selling through a large exclusive dealer

Accepted Answer

Selling to a commercial firm through salespeople is an example of direct marketing as the company is directly reaching out to and communicating with its target customers without the involvement of any intermediaries.

Question 3

The marketing intermediaries provide Josfer information about its customers.This is an example of which function that intermediaries perform?
A)Transactional
B)Operational
C)Logistical
D)Facilitating
E)Risk transferring

Accepted Answer

Facilitating intermediaries help with communication and information exchange between buyers and sellers. In this scenario, the marketing intermediaries are providing information about Josfer's customers, which falls under the facilitating function of intermediaries.

Question 4

Floras's flower distribution in the United States is carried out entirely through Frag Flower, a U.S.flower retailer.Which of the following distribution strategies is the company using in the United States?
A)Intensive distribution strategy
B)Broad distribution strategy
C)Selective distribution strategy
D)Mass distribution strategy
E)Exclusive distribution strategy

Accepted Answer

Floras is using an exclusive distribution strategy where they have partnered with one particular retailer (Frag Flower) in the United States to distribute their flowers exclusively. This means that the flowers are only available through this retailer and not through any other channel.

Question 5

Intensive distribution is the best strategy for shopping products.

Accepted Answer

Intensive distribution is typically used for convenience products that require widespread availability, not for shopping products, which are selected more carefully by consumers and benefit from selective distribution.

Question 6

A soda manufacturing company sells its products to supermarkets and stores across Canada through its own distribution network.Which of the following is absent in this situation?
A)End consumer
B)Consumer
C)Retailer
D)Wholesaler
E)Manufacturer

Accepted Answer

The company sells directly to supermarkets and stores (retailers), bypassing wholesalers.

Question 7

Fredox Inc. manufactures confectionaries, cakes, and other packaged foods. The firm tries to reach both consumers and business customers by using a combination of both direct and indirect distribution channels. The company uses these channels to maximize its sales.
-Fredox stresses sales promotions and frequently gives volume discounts to retailers.Which strategy is the company using?
A)Personal selling
B)Push distribution
C)Direct marketing
D)Pull distribution
E)Demand generation

Accepted Answer

The company is using a push distribution strategy by giving volume discounts to retailers and stressing sales promotions. This strategy aims to push the product through the distribution channels to reach the end consumer.

Question 8

Charles Associates is a retail outlet that sells smartphones.The store provides its customers with convenient installment payment options to facilitate the purchase of high-end phones.Which of the following functions is most closely associated with providing installment options?
A)Financing
B)Risk taking
C)Buying
D)Promotion
E)Physical distribution

Accepted Answer

Providing installment payment options is a form of financing, as it involves the store providing credit to customers to purchase high-end phones.

Question 9

Retailers sell products directly to consumers.

Accepted Answer

Retailers are businesses that sell products directly to consumers through physical stores, online platforms, or other direct channels of distribution.

Question 10

A flow chart representing multichannel distribution

-Jacob visits Dell's website and places an online order for a personal computer.Jacob belongs to:
A)business segment 1.
B)business segment 2.
C)the sales force.
D)consumer segment 1.
E)consumer segment 2.

Accepted Answer

Jacob is an individual who is placing an order for a personal computer, which identifies him as part of the consumer segment 1.

Question 11

Drobex Manufacturing does not maintain stock in its warehouse and instead keeps stock in its retail outlets.Which of the following intermediary functions does Drobex Manufacturing expects its intermediaries to perform?
A)Financing
B)Risk taking
C)Buying
D)Promotion
E)Distribution

Accepted Answer

The answer of Drobex Manufacturing does not maintain stock in...

Question 12

Fredox Inc. manufactures confectionaries, cakes, and other packaged foods. The firm tries to reach both consumers and business customers by using a combination of both direct and indirect distribution channels. The company uses these channels to maximize its sales.
-Which of the following, if true, will strengthen the chances that Fredox will sell more through direct distribution?
A)Most of Fredox's target consumers make small-scale purchases.
B)Most retailers in Canada have increased listing fees recently.
C)The products that Fredox sells have relatively low value.
D)Most of the firm's business comes from retail selling.
E)Retail outlets in Canada have little shelf space for storing confectionaries.

Accepted Answer

The answer of Fredox Inc. manufactures confectionaries, cakes, and other...

Question 13

A flow chart representing multichannel distribution

-RS Industries is a manufacturer of commercial kitchen equipment.The firm uses personal selling techniques to market its products to small-scale firms.Which of the following target markets is RS Industries pursuing?
A)Business segment 2
B)Consumer segment 1
C)Business segment 1
D)Consumer segment 2
E)Distributor segment

Accepted Answer

The answer of  A flow chart representing multichannel distribution

-RS...

Question 14

Which of the following companies follow direct distribution?
A)RSS Associates, a firm that sells through exclusive distribution
B)BS Manufacturing, a firm that uses intense distribution
C)Albex, which sells agricultural machinery through agencies
D)Dell, which sells to customers through independent vendors
E)DX Textiles, which sells apparel through company-owned showrooms

Accepted Answer

DX Textiles sells apparel through company-owned showrooms, indicating a direct distribution model where the manufacturer sells directly to the consumer without intermediaries.

Question 15

A distribution channel is the set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption.

Accepted Answer

This is the definition of a distribution channel.

Question 16

Floras Inc.has only eight distributors in China, which helps the firm control the flow of goods in the country.This is an example of a(n)_____ distribution strategy.
A)intensive
B)broad
C)selective
D)mass
E)exclusive

Accepted Answer

Floras Inc. has a selective distribution strategy since it has only eight distributors in China. This allows the firm to have some degree of control over the flow of its goods in the country, while also limiting the number of distributors it works with. This strategy is typically used for products that require more specialized handling, and that are sold through certain channels or locations.

Question 17

A flow chart representing multichannel distribution

-Jake walks into a store that has many cellphone brands and buys a phone for his personal use.Which of the following segments does Jake belong to?
A)Business segment 2
B)Consumer segment 1
C)Business segment 1
D)Consumer segment 2
E)Sales force

Accepted Answer

The answer of  A flow chart representing multichannel distribution

-Jake...

Question 18

Floras's major revenue generators are Canada and Mexico.The company attempts to get products into as many outlets as possible in these countries.Which of the following distribution strategies is the company using in Canada and Mexico?
A)Intensive distribution strategy
B)Restricted distribution strategy
C)Selective distribution strategy
D)Specialized distribution strategy
E)Exclusive distribution strategy

Accepted Answer

Intensive distribution strategy is the strategy where the company attempts to get its products into as many outlets as possible. As Floras is trying to get its products into as many outlets as possible in Canada and Mexico, the company is using an intensive distribution strategy. Restricted distribution strategy, selective distribution strategy, specialized distribution strategy, and exclusive distribution strategy all involve limiting the number of outlets that offer the product, which is not the case with Floras. Therefore, A) Intensive distribution strategy is the best choice.

Question 19

Wholesalers do not take title to the products that they sell.

Accepted Answer

Wholesalers typically take title to the products that they sell, meaning they own the goods before selling them to retailers or other buyers.

Question 20

A flow chart representing multichannel distribution

-Fred owns a small retail showroom.He buys merchandise from a larger dealer that sells to most of the retailers in the area.Fred belongs to:
A)business segment 1.
B)business segment 2.
C)the sales force.
D)consumer segment 1.
E)consumer segment 2.

Accepted Answer

Fred, as a retail showroom owner who buys merchandise from a larger dealer, belongs to a business segment, specifically business segment 1, which typically includes retailers and other businesses that purchase goods for resale.

Quiz 12: Distribution Channels

The marketing intermediaries provide Josfer information about its customers.This is an example of which function that intermediaries perform?

Floras's flower distribution in the United States is carried out entirely through Frag Flower, a U.S.flower retailer.Which of the following distribution strategies is the company using in the United States?

Intensive distribution is the best strategy for shopping products.

A soda manufacturing company sells its products to supermarkets and stores across Canada through its own distribution network.Which of the following is absent in this situation?

Charles Associates is a retail outlet that sells smartphones.The store provides its customers with convenient installment payment options to facilitate the purchase of high-end phones.Which of the following functions is most closely associated with providing installment options?

Retailers sell products directly to consumers.

A flow chart representing multichannel distribution -Jacob visits Dell's website and places an online order for a personal computer.Jacob belongs to:

Drobex Manufacturing does not maintain stock in its warehouse and instead keeps stock in its retail outlets.Which of the following intermediary functions does Drobex Manufacturing expects its intermediaries to perform?

A flow chart representing multichannel distribution -RS Industries is a manufacturer of commercial kitchen equipment.The firm uses personal selling techniques to market its products to small-scale firms.Which of the following target markets is RS Industries pursuing?

Which of the following companies follow direct distribution?

A distribution channel is the set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption.

Floras Inc.has only eight distributors in China, which helps the firm control the flow of goods in the country.This is an example of a(n) _____ distribution strategy.

A flow chart representing multichannel distribution -Jake walks into a store that has many cellphone brands and buys a phone for his personal use.Which of the following segments does Jake belong to?

Floras's major revenue generators are Canada and Mexico.The company attempts to get products into as many outlets as possible in these countries.Which of the following distribution strategies is the company using in Canada and Mexico?

Wholesalers do not take title to the products that they sell.

A flow chart representing multichannel distribution -Fred owns a small retail showroom.He buys merchandise from a larger dealer that sells to most of the retailers in the area.Fred belongs to: