Question 1

Apple makes its computers available through its own stores, its website, and some major retailers. This is an example of

Accepted Answer

Dual distribution is when a company uses more than one channel or method to distribute its products or services. In the case of Apple, the company distributes its computers through its own stores, website as well as major retail stores. Therefore, this is a clear example of dual distribution. Vertical integration means a company owns or controls all aspects of the supply chain. Horizontal integration involves a company acquiring or merging with its competitors. Tying agreements are when customers are required to purchase one product to be able to purchase another. Exclusive dealing occurs when a supplier requires a distributor to only sell their products and not those of their competitors. None of these descriptions are a good fit for Apple's distribution strategy.

Question 2

The Fisher-Price company produces toys and baby-related products. For the introduction of its line of nursery furniture for infants and small children, the Fisher Company will most likely use ____ distribution for the products.

Accepted Answer

Selective distribution allows for the company to carefully choose which retailers they partner with to carry their products. This would be the most appropriate choice for nursery furniture as Fisher-Price would want to ensure their products are being sold in stores that specialize in child-related items and have a reputation for quality and safety. Intensive distribution would not be necessary as the products are not everyday consumables, and exclusive distribution would limit the reach and availability of the products. Horizontal and priority distribution are not relevant to this scenario.

Question 3

Which of the following is least likely to be a factor affecting the selection of marketing channels?

Accepted Answer

Product packaging is least likely to be a factor affecting the selection of marketing channels. While product packaging may affect the visual appeal and perceived value of a product, it typically does not have a significant impact on the channels through which products are distributed. Factors such as customer characteristics, product attributes, competition, and environmental forces (such as economic conditions and regulations) are much more likely to influence channel selection.

Question 4

Sales are most likely to have a direct relationship to product availability for products that use ____ distribution.

Accepted Answer

Intensive distribution is a strategy where a company makes its products available in as many outlets as possible. As a result, this increases the chances of consumers finding the product they want, which leads to higher sales. Thus, sales are likely to have a direct relationship with product availability for products that use intensive distribution.

Question 5

When considering the best channel to use, all of the following are true with regard to larger firms except they

Accepted Answer

The statement "may be better suited to serve customers in a particular region" is not true with regard to larger firms. In fact, larger firms may have the ability to serve customers in multiple regions due to their extensive resources and distribution channels.

Question 6

Fragile products that require special handling are more likely to be distributed through

Accepted Answer

Fragile products require special handling and may be easily damaged during transportation. To minimize the risk of damage, it is best to distribute such products through shorter channels. This ensures that the product moves through fewer intermediaries, reducing the risk of damage to the product. Shorter channels also allow for more control over the handling and transportation of the product. Therefore, option B (shorter channels) is the best choice for fragile products.

Question 7

When Amazon.com introduced its Kindle FireHD, it was available through Amazon.com, Staples office supplies store, and a few other retailers. The Kindle FireHD was most likely distributed through the _____ of distribution.

Accepted Answer

The Kindle FireHD was only available through a select few retailers, indicating a selective level of distribution. This approach allows for more control over the product and its distribution, as well as the ability to target specific markets.

Question 8

Product and target market characteristics usually determine the type of coverage a product receives. For which of the following products is selective distribution most appropriate?

Accepted Answer

The answer of Product and target market characteristics usually determine...

Question 9

Expensive, high-quality products that are purchased infrequently often reach consumers through

Accepted Answer

Exclusive distribution is the most appropriate choice for expensive, high-quality products that are purchased infrequently. Exclusive distribution limits the number of retailers who carry the product, ensuring that the product remains exclusive and high-quality. Additionally, exclusive distribution allows for more control over the marketing and branding of the product.

Question 10

When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most likely used ____ distribution.

Accepted Answer

Anheuser-Busch most likely used intensive distribution for Busch Light Beer because it is a mass-market product that is widely available in many different types of retail outlets. Intensive distribution involves distributing a product through as many channels and outlets as possible in order to make it easily accessible to consumers.

Question 11

Honey Farms is a maker of fine chocolates. The company's latest product, Fudge-Dipped Strawberries, is the premier product in its Fudge-Dipped line. The product is very expensive and targeted to upscale consumers. Which form of distribution would Honey Farms be likely to use for its new product?

Accepted Answer

Because the product is expensive and targeted to upscale consumers, Honey Farms will likely use exclusive distribution. This means they will limit the number of retailers that can sell their product in order to maintain a high level of control over the product's positioning and image.

Question 12

Durable goods such as television sets and appliances generally reach their target markets through ____; goods such as car batteries and tires generally reach their target markets through _____.

Accepted Answer

The answer of Durable goods such as television sets and...

Question 13

Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks' coffee drink, Frappucino, to grocery stores and other retail outlets. This is an example of

Accepted Answer

The agreement between Starbucks and Pepsi Co. for distribution of Frappucino to grocery stores is an example of a strategic channel alliance, where two companies come together to distribute a product or service.

Question 14

Using only some of the available outlets to distribute a product is called

Accepted Answer

Selective distribution involves using a limited number of outlets to distribute a product, often based on criteria such as geographic location or customer demographics. This approach can help a company maintain control over their brand image and ensure their product is sold in the most appropriate setting. Additionally, selective distribution can help minimize channel conflict and allow for closer relationships with distributors. Therefore, selective distribution is the best choice among the options provided.

Question 15

Paper towels and trash-can bags are most likely to be distributed through ____ and ____.

Accepted Answer

Paper towels and trash-can bags are everyday convenience products that are typically distributed through intensive distribution and dual distribution to ensure they are widely available to consumers in various locations.

Question 16

For which of the following products would exclusive distribution be most appropriate?

Accepted Answer

Exclusive distribution is appropriate for products that are high-end, luxury, or premium products. Rolls Royce automobile falls under this category, and it is necessary to have a selective distribution strategy that ensures that the product is sold in limited and exclusive outlets.

Question 17

Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using

Accepted Answer

Del Monte is using dual distribution by selling its ketchup products to different types of customers through different marketing channels. It sells to households through supermarkets and grocery wholesalers, and to institutions through industrial distributors and food brokers.

Question 18

The major levels of intensity at which a company can choose to distribute its products are ____ distribution.

Accepted Answer

The correct terminology to describe the major levels of intensity at which a company can choose to distribute its products is selective, cooperative, and intensive distribution. Selective distribution involves limited distribution of a product in a few of the most appropriate channels. Cooperative distribution is where two or more businesses, working together as channel partners, supply a product or service through a shared distribution channel. Intensive distribution is where a product is distributed through as many outlets as possible, usually over a wide geographic area to maximize exposure to potential customers. Therefore, the best choice from the options listed is E.

Question 19

Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called

Accepted Answer

Dual distribution refers to when a company uses more than one distribution channel to reach the same target market. This allows the company to increase its reach and visibility while also potentially providing consumers with more options for purchasing their products. Dual distribution is different from multiple channeling, which refers to using multiple channels for different target markets. Strategic channel alliance and intensive distribution are also valid tactics but do not specifically refer to using multiple channels to reach the same market. Market splitting is not a recognized term in marketing.

Question 20

What is a primary difference between an industrial distributor and a manufacturers' agent?

Accepted Answer

The primary difference between an industrial distributor and a manufacturers' agent lies in the fact that a manufacturers' agent does not acquire title nor usually take possession of the products, while an industrial distributor does.

Quiz 14: Marketing Channels and Supply-Chain Management