Question 1

A _____ is the combination of institutions through which a seller markets products to the user.

Accepted Answer

A channel of distribution is the combination of institutions through which a seller markets products to the user or ultimate consumer.

Question 2

Which intermediary is an independent concern that operates as a link between producers and ultimate consumers or organizational buyers?

Accepted Answer

A middleman is an independent organization that operates as a link between producers and ultimate consumers or organizational buyers. A representative is a type of intermediary that works with producers to promote and sell products, but may not handle the actual distribution of the products. A retailer is a type of intermediary that sells products directly to consumers, but may not handle the distribution from producers. A jobber is a type of intermediary that purchases products from producers and sells them to retailers or other intermediaries.

Question 3

The _____ provide(s) the ultimate consumer or organizational buyer with time, place, and possession utility.

Accepted Answer

Channels of distribution provide the ultimate consumer or organizational buyer with time, place, and possession utility.

Question 4

The primary role of all marketing intermediaries is to

Accepted Answer

The primary role of intermediaries is to bring supply and demand together in an efficient and orderly fashion.

Question 5

Jason sells Hanes flannel pajamas and nightgowns, London Fog all-weather coats in the summer, Jantzen bathing suits and Gloria Vanderbilt linen shorts and silk tank tops to the same retailers in the winter. Jason has limited control over prices or the terms of sale. Jason can be best described as a

Accepted Answer

Jason sells products on behalf of multiple manufacturers, but he does not take ownership of the products himself. Therefore, he can be classified as a manufacturers' agent.

Question 6

Providing information to customers and suppliers, including competitive conditions and trends belongs to which category of facilitating function?

Accepted Answer

Providing information to customers and suppliers, including competitive conditions and trends is a part of marketing information and research, which helps to facilitate communication and improve decision-making.

Question 7

Which of the following observations concerning channels of distribution is true?

Accepted Answer

Channel of distribution decisions involve numerous interrelated variables that must be integrated into the total marketing mix. Because of the time and money required to set up an efficient channel, and since channels are often hard to change once they are set up, these decisions are critical to the success of the firm.

Question 8

_____ is a facilitating function of channels of distribution.

Accepted Answer

Financing is a facilitating function of channels of distribution because it provides funds to enable channel members to carry out their roles, such as buying inventory, storing it, or promoting the product. Without financing, channel members may not be able to operate effectively, which could lead to delays or even interruptions in the flow of goods and services through the channel.

Question 9

The need for _____ in the delivery of goods is sometimes questioned, particularly since the profits they make are viewed as adding to the cost of the product.

Accepted Answer

The need for other institutions or intermediaries in the delivery of goods is sometimes questioned, particularly since the profits they make are viewed as adding to the cost of the product.

Question 10

Abby Brown buys consumer food products, tobacco products, and paper products; brings these products to its distribution center in Georgia, and then sells these products to convenience stores all over the southeastern U.S. Abby Brown is an example of

Accepted Answer

Abby Brown is purchasing products directly from manufacturers and then reselling them to convenience stores, making them a merchant middleman. They are taking title and ownership of the products during the transaction.

Question 11

A(n) _____ is a middleman who buys from manufacturers and sells to retailers and wholesalers.

Accepted Answer

The answer of A(n) _____ is a middleman who buys...

Question 12

______ is an agent who generally operates on an extended contractual basis, often sells within an exclusive territory, handles noncompeting but related lines of goods, and possesses limited authority with regard to prices and terms of sale.

Accepted Answer

This description matches that of a manufacturer's agent, who works on behalf of a manufacturer to sell their products within a specific territory and is limited in their authority to set prices and terms of sale.

Question 13

Major functions performed in the channels of distribution include all of the following, except

Accepted Answer

Channels of distribution do not include the function of producing, as that is typically the role of the manufacturer or producer. The major functions include buying, selling, and financing.

Question 14

Which of the following is not a function performed by the channels of distribution?

Accepted Answer

The channels of distribution perform logistical, facilitating, and transactional functions. However, they do not perform a designing function, which is typically the responsibility of the manufacturer or producer.

Question 15

A broker

Accepted Answer

A broker does not usually have physical custody of products, and is not looked upon as a permanent representative of either the buyer or the seller.

Question 16

Transactional functions performed by channels of distribution include buying, selling and

Accepted Answer

Risk taking is a transactional function performed by channels of distribution, as it involves assuming the risks associated with carrying out the channel work, such as holding inventory.

Question 17

All of the following observations about the distribution channel are true except

Accepted Answer

An efficient channel is one that delivers the product when and where it is wanted at a minimum total cost.

Question 18

In transactional functions of channels of distribution, contacting potential customers, promoting products, and soliciting orders is concerned with

Accepted Answer

Contacting potential customers, promoting products, and soliciting orders are all activities involved in the selling function of channels of distribution.

Question 19

Identify the merchant establishment operated by a concern primarily engaged in buying, taking title to, usually storing and physically handling goods in large quantities, and reselling the goods to retailers or to organizational buyers.

Accepted Answer

A wholesaler is a concern primarily engaged in buying, taking title to, usually storing and physically handling goods in large quantities, and reselling the goods to retailers or to organizational buyers. Brokers are middlemen who facilitate transactions between buyers and sellers, but do not take title to the goods. Middlemen and facilitating agents are broad terms that can encompass both wholesalers and brokers, but do not specifically refer to the type of merchant establishment described in the question.

Question 20

Which of the following is not a logistical function performed by channels of distribution?

Accepted Answer

Grading is not a logistical function performed by channels of distribution. Grading refers to the process of evaluating and classifying products based on quality or size, which is typically done before the products enter the distribution channel. The logistical functions of channels of distribution are assorting (creating product assortments from a variety of sources), storing (holding inventory for future use), and sorting (dividing products into groups based on specific criteria).

Quiz 10: Distribution Strategy