Question 1

A bundle of physical, service, and symbolic attributes designed to satisfy customer wants is called ______.
A) the marketing mix
B) packaging
C) a product
D) a brand name

Accepted Answer

A product is a bundle of physical, service, and symbolic attributes designed to satisfy customer wants. The other options are components of a product, but do not fully encompass the complete definition of a product.

Question 2

To reach a target market with a small number of buyers, a direct distribution channel is often the best choice.

Accepted Answer

A direct distribution channel, which involves selling directly to the target market, is efficient and cost-effective for reaching a small number of buyers. It eliminates the need for intermediaries and allows for personalized communication and sales strategies.

Question 3

According to the wheel of retailing, new types of retailers enter the market and gain a competitive foothold by offering superior service.

Accepted Answer

The wheel of retailing theory suggests that new types of retailers usually gain a competitive foothold by offering lower prices, not necessarily by offering superior service. Over time, as they become more established, they may move upmarket and increase prices and services.

Question 4

The first step towards developing a retail strategy is to select a pricing strategy in order to avoid making loss.

Accepted Answer

While pricing strategy is an important aspect of a retail strategy, it is not the first step. The first step should be to understand the target market, competitor analysis and identifying unique selling propositions. Only then can a pricing strategy be selected that aligns with the overall retail strategy.

Question 5

Complex, expensive products generally require long distribution channels.

Accepted Answer

Complex, expensive products often require shorter distribution channels to maintain control over the product quality, customer service, and pricing.

Question 6

Retailers base their pricing decisions on the costs of purchasing products from other channel members.

Accepted Answer

Retailers consider the costs of purchasing products from suppliers and other channel members as part of their pricing decisions.

Question 7

Furniture arriving from Denmark to Canada would most likely be shipped via water transportation.

Accepted Answer

Since Denmark is located across the Atlantic Ocean from Canada, it is likely that furniture would be shipped via ocean freight rather than air or land transportation.

Question 8

The most common market coverage for low-priced convenience items is intensive distribution.

Accepted Answer

Intensive distribution is the most common market coverage for low-priced convenience items as it aims at having the widest possible distribution of the product through as many channels or retailers as possible in order to make it easily available to customers.

Question 9

A firm's most important consideration in choosing a distribution channel is competition.

Accepted Answer

A firm's most important consideration in choosing a distribution channel is not solely competition. Other factors such as the nature of the product/service, target market, industry trends, and the firm's own resources and capabilities should also be taken into account.

Question 10

Because of their size, startup manufacturers are almost always forced to use the services of marketing intermediaries.

Accepted Answer

The answer of Because of their size, startup manufacturers are...

Question 11

Retailers are the final link-the so‐called "last three feet"-of the distribution channel.

Accepted Answer

This statement is true. Retailers are the final link of the distribution channel and are responsible for selling products to consumers in the last three feet of the transaction.

Question 12

The first step in developing a competitive retailing strategy is choosing a location.

Accepted Answer

The first step in developing a competitive retailing strategy is typically conducting a market analysis to understand the target market and competition, not choosing a location.

Question 13

The end of the supply chain is when goods or services are delivered to marketing intermediaries.

Accepted Answer

The answer of The end of the supply chain is...

Question 14

Transportation by truck is extremely economical.

Accepted Answer

Transportation by truck, while flexible and essential for door-to-door delivery, is often more expensive than other modes like rail or ship due to fuel costs, labor, and maintenance expenses.

Question 15

Speed is the major contributor to cost.

Accepted Answer

The faster a task or project is completed, the more labor and resources are required, thus increasing the cost. Time is money, and a faster speed means more money spent.

Question 16

The major goal of logistics management is to improve the speed at which goods, services, and information flow through the supply chain.

Accepted Answer

The major goal of logistics management is to efficiently and effectively manage the flow of goods, services, and information to meet customer requirements, which includes optimizing speed, cost, and quality.

Question 17

In a bid to reach a target market of a small number of buyers or customers within a small geographical area, it is recommended that a firm use a variety of marketing intermediaries instead of direct marketing.

Accepted Answer

Direct marketing would be more efficient and cost-effective in reaching a small number of buyers or customers within a small geographical area. Using marketing intermediaries would add unnecessary costs and complexity to the distribution process.

Question 18

All firms face two significant challenges of selecting a distribution channel and making a decision regarding the level of distribution intensity.

Accepted Answer

Selecting a distribution channel and determining the level of distribution intensity are key challenges faced by all firms.

Question 19

An exclusive distribution contract allows the retailer to carry an adequate inventory and provide service facilities.

Accepted Answer

An exclusive distribution contract typically grants the retailer exclusive rights to carry the product, and in turn, the retailer is expected to maintain a sufficient inventory and provide necessary service facilities to customers.

Question 20

Logistics is the process of coordinating the flow of goods, services, and information among all members of the supply chain.

Accepted Answer

Logistics is indeed the process of coordinating the flow of goods, services, and information among all members of the supply chain.

Quiz 12: Product and Distribution Strategies

A bundle of physical, service, and symbolic attributes designed to satisfy customer wants is called ______.