Question 1

A husband and wife have a small store that is located at a beach resort.The only products sold at this store are hand-dipped and sculptured candles made by this couple.Marketers would classify the channel of distribution for these candles as ________.

Accepted Answer

Since the candles are sold directly by the husband and wife from their store, the channel of distribution can be classified as direct.

Question 2

Tony Pool Chemical Co.purchased 144 buckets of chlorine tablets over the Internet from Chemical,Inc. ,then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store.Chemical,Inc.took title to the pool chemicals but never actually took possession of them.Chemical,Inc.is an example of a ________.

Accepted Answer

Chemical, Inc. is acting as a drop shipper, which is a type of wholesaler who takes orders from retailers and then arranges for the manufacturer to ship the product directly to the retailer's store or customer's location, without the wholesaler ever taking physical possession of the product.

Question 3

The producer and the final consumer are part of every type of channel of distribution.

Accepted Answer

The producer and the final consumer are both essential parts of any distribution channel, regardless of the length or complexity of the channel. The producer creates the product and begins the flow of goods or services, while the final consumer completes the flow by purchasing and using the product. Other intermediaries may be involved in between, but the producer and final consumer are always present.

Question 4

Proud Pets,a producer of clothing and accessories for pets,has recently partnered with a regional chain of pet stores.Which of the following would Proud Pets be LEAST likely to expect from its new channel member?

Accepted Answer

Identifying raw materials and other productive inputs is typically the responsibility of the producer, not the retailer. The other options, promoting through advertising, assembling and packaging products, distributing market information, and taking a risk that items may not sell, are all reasonable expectations for a channel member.

Question 5

A business buys candy and gum from many different manufacturers and then resells the items to a variety of different stores.The business is an example of a(n)________.

Accepted Answer

An independent intermediary is a business that buys products from manufacturers and resells them to retailers or other businesses, which fits the description given.

Question 6

Nita can visit her local supermarket and buy a dozen roses,a gallon of milk,two birthday cards,a bag of cat litter,and a pan for roasting a turkey.This illustrates how channels of distribution benefit consumers by ________.

Accepted Answer

Channels of distribution benefit consumers by creating assortments, which means offering a variety of products that are convenient for the consumer to purchase in one place. In this scenario, the supermarket is offering Nita a diverse assortment of products that she can purchase to meet her various needs.

Question 7

You own an independent store in your neighborhood and like to offer fresh seafood in your meat display case.Which type of wholesaler is likely to best serve you?

Accepted Answer

Cash-and-carry wholesalers typically cater to small retailers by offering a wide range of products, including perishable goods like seafood, without requiring minimum orders or deliveries, making them ideal for an independent store owner looking to stock fresh items.

Question 8

Due to the success of the Internet,few producers sell through intermediaries today.

Accepted Answer

The statement is not entirely true. While the Internet has enabled some producers to sell directly to consumers, many still rely on intermediaries such as wholesalers, distributors, and retailers to reach their target markets.

Question 9

Middlemen is an older term for intermediaries.

Accepted Answer

Middlemen and intermediaries are often used interchangeably to refer to a person or entity that acts as a mediator between two parties in a transaction.

Question 10

Burt can visit his local hardware store and buy one 4-inch paint brush and not the case of 24 brushes that the retailer had to buy.This is an example of how the channel of distribution facilitates ________.

Accepted Answer

Breaking bulk refers to the process of dividing larger quantities of goods into smaller lots in order to meet the needs of buyers. In this scenario, the retailer purchased a case of 24 brushes (larger quantity) and then sold just one brush to Burt (smaller quantity). The channel of distribution (the hardware store) facilitated this process by breaking bulk and making it possible for Burt to purchase only what he needed.

Question 11

Channels that contain intermediaries are indirect.

Accepted Answer

Indirect channels involve intermediaries who play a role in distributing a product or service to the end consumer. This can include wholesalers, retailers, agents, and brokers, among others.

Question 12

Rooms-To-Go furniture retailers perform a channel intermediary facilitating function by providing financing for customers' purchases.

Accepted Answer

Rooms-To-Go offers financing options to customers, making them a channel intermediary facilitating function.

Question 13

A new company called LidRock is prospering because it figured out a novel way to get music,video games,and movies into the hands of consumers: on mini-CDs tucked into the lids of soft drinks.LidRock is focusing on which one of the four Ps?

Accepted Answer

LidRock's strategy is focused on the "place" element of the marketing mix, as it involves distributing their products directly into the hands of consumers through a non-traditional channel (in this case, the lids of soft drinks).

Question 14

Tony Pool Chemical Co.purchased 144 buckets of chlorine tablets over the Internet from Chemical,Inc. ,which then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store.Chemical,Inc.is an example of which of the following?

Accepted Answer

Chemical, Inc. is acting as a wholesaling intermediary in this scenario by purchasing the product from the manufacturer and selling it to Tony Pool Chemical Co.

Question 15

There will always be a need for channel intermediaries that physically handle the product.

Accepted Answer

The answer of There will always be a need for...

Question 16

Steve's Physco Skates sells its products to Walmart,who then sells them to the consumer.This is an example of a(n)________.

Accepted Answer

This is an example of an indirect marketing channel as the products go through an intermediary (Walmart) before reaching the consumer.

Question 17

Which of the following is an example of a dual distribution system?

Accepted Answer

J.C. Penney uses both catalog sales and retail store sales as a form of dual distribution.

Question 18

Which of the following is NOT a channel intermediary?

Accepted Answer

A supplier of raw materials is not a channel intermediary because it is not involved in the movement or distribution of the final product to the end customer. The other options listed all play a role in the distribution process as channel intermediaries.

Question 19

Which of the following is the best example of a direct channel?

Accepted Answer

In a direct channel, the producer sells directly to the end user or consumer. Option D shows Farmer Mintz selling corn directly to the Hughes household, making it the best example of a direct channel.

Question 20

An independent hardware retail store 100 miles from the nearest city of more than 5,000 people but providing needed supplies for area ranchers would most likely buy its plumbing and electrical supplies through a ________.

Accepted Answer

Since the independent hardware retail store is located 100 miles away from any large city, it may not have easy access to local wholesalers or jobbers. Therefore, it would be more convenient for the store to purchase plumbing and electrical supplies through a mail-order wholesaler. This would allow the store to receive the necessary supplies without having to travel long distances or maintain a large inventory on-hand.

Quiz 11: Deliver Value Through Supply Chain Management,channels of Distribution,and Logistics