Question 1

Mullin Inc. purchases supplies such as paper towels, soap, toilet paper, and toilet seat covers directly from manufacturers and then sells them to other firms. What is Mullin Inc.?
A) wholesaler
B) functional intermediary
C) agent
D) producer

Accepted Answer

Mullin Inc. purchases supplies from manufacturers and sells them to other firms, making them a wholesaler.

Question 2

Roots is a popular Canadian company that sells clothing, handbags, and footwear. Most of its sales come from company-owned stores. What type of distribution channel is Roots using?
A) direct channel
B) wholesaler
C) agent to wholesaler to retailer channel
D) two-step distribution

Accepted Answer

Roots is using a direct channel, as most of its sales come from company-owned stores.

Question 3

Which of the following is a sequence of organizations that directs a product from the producer to the ultimate user?
A) intermediary network
B) catalogue discount showroom
C) channel of distribution
D) distributorship

Accepted Answer

A channel of distribution refers to the sequence of organizations that directs a product from the producer to the ultimate user. The other options, such as intermediary network, catalog discount showroom, and distributorship, may be a part of the channel of distribution, but do not fully represent the entire sequence.

Question 4

The Kraft Heinz Company plans to introduce two new organic flavours after reviewing point of sale information from Walmart, which showed higher sales of the organic products than the non-organic juice drink. Which benefit of intermediaries is illustrated in this example?
A) breaking bulk
B) valuable marketing information
C) efficiency and assortment of goods
D) instant sales infrastructure

Accepted Answer

The benefit of intermediaries illustrated in this example is valuable marketing information, as Walmart provided point of sale data that influenced Kraft Heinz's decision to introduce new organic flavours.

Question 5

Which of the following refers to a marketing intermediary that buys from producers or other intermediaries and sells to consumers?
A) retailer
B) wholesaler
C) broker
D) agent.

Accepted Answer

Retailers are businesses that sell goods directly to consumers. They purchase products from manufacturers or wholesalers and then sell them to the end user, which distinguishes them from other types of intermediaries that do not sell directly to consumers.

Question 6

In choosing the right retailer for its products, the manufacturer must consider all of the following EXCEPT which one?
A) the types of stores frequented by its target customers
B) the level of distribution intensity
C) whether the retail environment is a fit for the manufacturer's brand
D) the number of retail salespersons available to service customers

Accepted Answer

The number of retail salespersons available to service customers is not a critical factor in choosing a retailer. While it may be important for the manufacturer's products to receive proper customer service, the manufacturer does not need to consider the number of salespersons available as a key factor in choosing a retailer. Instead, the manufacturer should focus on factors such as the target customers, distribution intensity, and brand fit when selecting the right retailer.

Question 7

The Spirit Connection buys team logo gear from various manufacturers and then sells the gear to consumers through its stores and website. What is the Spirit Connection?
A) wholesaler
B) agent
C) retailer
D) business user

Accepted Answer

The Spirit Connection buys team logo gear and sells the gear directly to consumers through its stores and website, making it a retailer.

Question 8

Everything Soccer is a "one-stop shop" for everything you need to play soccer, such as footwear, apparel, equipment, and coaching accessories. The retailer buys these products from various manufacturers and makes them all available to consumers in its physical stores or its online store. Which benefit of intermediaries is best illustrated in this example?
A) instant sales infrastructure
B) efficiency and assortment of goods
C) breaking bulk
D) providing valuable marketing information

Accepted Answer

Everything Soccer is able to offer a wide variety of soccer products from multiple manufacturers, providing customers with a more efficient shopping experience and a greater assortment of goods to choose from.

Question 9

A company that is starting out depends on wholesalers to call on retail stores to promote their product. Which benefit of intermediaries is illustrated in this example?
A) efficiency and assortment of goods
B) instant sales infrastructure
C) assumption of credit risks
D) valuable marketing information

Accepted Answer

Intermediaries like wholesalers provide a company, especially one that is just starting out, with an instant sales infrastructure. This means the company can leverage the wholesaler's existing relationships, distribution networks, and sales expertise without having to build these capabilities from scratch.

Question 10

While prepping for a zombie apocalypse, Caleb was glad the hardware store sold him 12 rolls of duct tape rather than making him buy all 200 rolls they had in stock. What benefit of intermediaries is illustrated in this example?
A) breaking bulk
B) assumption of credit risks
C) efficiency and assortment of goods
D) valuable marketing information

Accepted Answer

Breaking bulk refers to the process of buying products in relatively large quantities and selling them in smaller quantities. In this scenario, the hardware store allows Caleb to purchase a smaller, more manageable quantity of duct tape (12 rolls) instead of requiring him to buy the entire stock (200 rolls), thus demonstrating the breaking bulk function of intermediaries.

Question 11

Which of the following channels is known as the "consumer direct" channel?
A) producer to consumer
B) producer to intermediary to business user
C) producer to retailer to consumer
D) producer to wholesaler to retailer to consumer

Accepted Answer

The "consumer direct" channel refers to the direct sale of products from the producer to the consumer without any intermediaries, which is described by option A.

Question 12

HVAC (heating, ventilation, air conditioning) producers such as Naz and Omer, whose products are shipped to many different retail stores and independent HVAC contractors, are likely to use which type of distribution?
A) agent to wholesaler to retailer
B) retail
C) two-step
D) three-step

Accepted Answer

HVAC producers like Naz and Omer use a two-step distribution process because their products are shipped to both retail stores and independent contractors. In a two-step distribution process, the manufacturer sells to a wholesaler, who then sells to the retailer or independent contractor.

Question 13

Which marketing intermediary is an independent sales professional who brings buyers and sellers together and earns a commission on the sale?
A) retailer
B) wholesaler
C) jobber
D) agent

Accepted Answer

An agent is an independent sales professional who brings buyers and sellers together and earns a commission on the sale. Retailers are businesses that sell products directly to consumers, while wholesalers and jobbers purchase products from manufacturers and sell them to retailers or other businesses.

Question 14

The distribution channel MOST likely to be used for a new car is producer to which of the following?
A) wholesaler to retailer to consumer
B) consumer
C) business user
D) retailer to consumer

Accepted Answer

New cars are typically sold through dealerships, which act as retailers, directly to consumers. This eliminates the need for wholesalers in the distribution process.

Question 15

Which of the following statements is TRUE about marketing intermediaries?
A) Although intermediaries can be eliminated, the functions they provide cannot.
B) Eliminating a marketing intermediary will always decrease distribution costs.
C) Marketing intermediaries sell their products to end customers.
D) Most marketing channels have at least two marketing intermediaries involved in the distribution of goods.

Accepted Answer

Marketing intermediaries play important roles in distribution, such as providing market research, promotion, and transportation services. While intermediaries can be eliminated, the functions they provide cannot be completely removed from the distribution process. Eliminating intermediaries may sometimes result in higher distribution costs because the firm may have to perform all of the intermediary functions on its own. Choice B is not always true; eliminating intermediaries may increase distribution costs. Choice C is false; marketing intermediaries do not sell products to end customers, but instead facilitate the distribution of products from the manufacturer to the end customer. Choice D is not always true; some marketing channels may have only one intermediary or more than two intermediaries involved in the distribution of goods.

Question 16

You agreed to take your little brother shopping for his back-to-school supplies. You could not believe the number of things he needed-everything from folders and pencils to hand sanitizer and zip-top baggies! You were happy that Walmart carried everything he needed. What benefit of intermediaries is illustrated in this example?
A) valuable marketing information
B) instant sales infrastructure
C) breaking bulk
D) efficiency and assortment of goods

Accepted Answer

The efficiency and assortment of goods benefit of intermediaries is illustrated in this example as Walmart is able to carry a wide variety of school supplies in one location, making it easy for the shopper to find everything they need in one place, instead of having to go to multiple stores.

Question 17

Suppose you have been making your own soaps and lotions and selling them to friends and family. You would really like to expand your company and be able to sell your items in retail stores across Canada. Which is the best distribution channel for you to pursue?
A) consumer direct
B) retail channel
C) agent to wholesaler to retailer channel
D) two-step distribution

Accepted Answer

The answer of Suppose you have been making your own...

Question 18

You decide to host a Super Bowl party for your friends. You go to the nearest supermarket, where you buy frozen pizza, chips, salsa, beer, wine, paper plates and napkins, and even plastic tableware, all in one place. What benefit of intermediaries is illustrated in this example?
A) breaking bulk
B) instant sales infrastructure
C) efficiency and assortment of goods
D) valuable marketing information

Accepted Answer

The benefit of intermediaries illustrated in this example is efficiency and assortment of goods. The supermarket offers a wide variety of items needed for the party, making it more convenient and efficient for the host to find everything in one place. This is a key advantage of intermediaries, as they facilitate the flow of goods and services from producers to consumers by consolidating and distributing products through various channels. In this case, the supermarket serves as an intermediary, providing a range of products to meet the needs of the customer.

Question 19

Apple products are sold in Apple's retail stores and in other retail stores such as Best Buy and Walmart. Which types of distribution channels does Apple use?
A) consumer direct and retail distribution
B) retail and two-step distribution
C) two-step and agent to wholesaler to retailer distribution
D) consumer direct and two-step distribution

Accepted Answer

Apple uses consumer direct channels by selling products in their own retail stores, as well as retail distribution channels by selling products in third-party stores like Best Buy and Walmart.

Question 20

A retailer is a marketing intermediary who does which of the following?
A) brings buyers and sellers together and earns a commission on the sale
B) purchases products from the manufacturer or intermediary and then sells them to consumers
C) sells products to wholesalers, who then sell the goods to consumers
D) works on consignment

Accepted Answer

A retailer purchases products from the manufacturer or intermediary and then sells them to consumers.

Quiz 14: Managing Distribution and Pricing

Mullin Inc. purchases supplies such as paper towels, soap, toilet paper, and toilet seat covers directly from manufacturers and then sells them to other firms. What is Mullin Inc.?

Roots is a popular Canadian company that sells clothing, handbags, and footwear. Most of its sales come from company-owned stores. What type of distribution channel is Roots using?

Which of the following is a sequence of organizations that directs a product from the producer to the ultimate user?

The Kraft Heinz Company plans to introduce two new organic flavours after reviewing point of sale information from Walmart, which showed higher sales of the organic products than the non-organic juice drink. Which benefit of intermediaries is illustrated in this example?

Which of the following refers to a marketing intermediary that buys from producers or other intermediaries and sells to consumers?

In choosing the right retailer for its products, the manufacturer must consider all of the following EXCEPT which one?

The Spirit Connection buys team logo gear from various manufacturers and then sells the gear to consumers through its stores and website. What is the Spirit Connection?

A company that is starting out depends on wholesalers to call on retail stores to promote their product. Which benefit of intermediaries is illustrated in this example?

While prepping for a zombie apocalypse, Caleb was glad the hardware store sold him 12 rolls of duct tape rather than making him buy all 200 rolls they had in stock. What benefit of intermediaries is illustrated in this example?

Which of the following channels is known as the "consumer direct" channel?

HVAC (heating, ventilation, air conditioning) producers such as Naz and Omer, whose products are shipped to many different retail stores and independent HVAC contractors, are likely to use which type of distribution?

Which marketing intermediary is an independent sales professional who brings buyers and sellers together and earns a commission on the sale?

The distribution channel MOST likely to be used for a new car is producer to which of the following?

Which of the following statements is TRUE about marketing intermediaries?

Suppose you have been making your own soaps and lotions and selling them to friends and family. You would really like to expand your company and be able to sell your items in retail stores across Canada. Which is the best distribution channel for you to pursue?

You decide to host a Super Bowl party for your friends. You go to the nearest supermarket, where you buy frozen pizza, chips, salsa, beer, wine, paper plates and napkins, and even plastic tableware, all in one place. What benefit of intermediaries is illustrated in this example?

Apple products are sold in Apple's retail stores and in other retail stores such as Best Buy and Walmart. Which types of distribution channels does Apple use?

A retailer is a marketing intermediary who does which of the following?