Question 1

Intermediaries in a distribution channel can include:
A) wholesalers.
B) retailers.
C) industrial buyers.
D) All of the options listed.
E) both b and c.

Accepted Answer

understand the concept of place and how distribution channels connect producers and consumers/organisational buyers. The main intermediaries making up the distribution channel are wholesalers, industrial buyers, agents or brokers, and retailers.

Question 2

Australian products such as honey, tea, wine and native bush foods can be found in markets like Singapore, Japan and the United States. The various individuals or organisations that assist in moving the products from producers to the end consumer (such as businesses or individuals) are called_________:
A) carriers.
B) distributors.
C) wholesalers.
D) marketing intermediaries.

Accepted Answer

understand the concept of place and how distribution channels connect producers and consumers/organisational buyers. The main organisations and individuals who act in the distribution chain between the producer and end user are known as marketing intermediaries.

Question 3

As an agent for Massey Ferguson tractors, you are classed as an intermediary. Other intermediaries in the distribution channel for tractors and farm equipment include:
A) wholesalers.
B) retailers.
C) industrial buyers.
D) Options a, b and c.
E) Both b and c.

Accepted Answer

understand the concept of place and how distribution channels connect producers and consumers/organisational buyers. The main intermediaries making up the distribution channel are wholesalers, industrial buyers, agents or brokers, and retailers.

Question 4

The path from the __________ or service provider to the end user is known as the __________ channel or marketing channel.
A) distributor, wholesale
B) distributor, distribution
C) manufacturer, distribution
D) manufacturer, production

Accepted Answer

understand the concept of place and how distribution channels connect producers and consumers/organisational buyers. The path from the manufacturer or service provider to the end user is known as the distribution channel or marketing channel.

Question 5

When Hass avocados are delivered to Woolworths warehouse facilities by Linfox transport, this approach to marketing is known as:
A) intensive distribution.
B) direct distribution.
C) indirect distribution.
D) exclusive distribution.
E) selective distribution.

Accepted Answer

understand the concept of place and how distribution channels connect producers and consumers/organisational buyers. Many producers, especially makers of physical products, rely on other organisations and individuals to help them get their product to end users. This approach is known as indirect distribution.

Question 6

Coca-Cola distributes its soft drinks via every suitable intermediary. This distribution strategy is an example of:
A) exclusive distribution.
B) intensive distribution.
C) selective distribution.
D) thorough distribution.

Accepted Answer

understand the concept of place and how distribution channels connect producers and consumers/organisational buyers. Intensive distribution is an approach to market coverage that distributes products through every suitable intermediary.

Question 7

Across Australia, there are multiple farmers markets and makers markets, whereby producers of a variety of goods sell their products. This is an example of a ____:
A) wholesale channel distribution.
B) agent channel distribution.
C) retailer channel distribution.
D) direct channel distribution.

Accepted Answer

understand the concept of place and how distribution channels connect producers and consumers/organisational buyers. In direct distribution the producer deals directly with the consumer. Farmers markets are an example of this.

Question 8

By definition, the supply chain consists of the producer and marketing intermediaries as well as all of the other parties that play direct or indirect roles in getting products to:
A) consumers.
B) retailers.
C) wholesalers.
D) manufacturers.

Accepted Answer

understand the concept of place and how distribution channels connect producers and consumers/organisational buyers. By definition, the supply chain consists of the producer and marketing intermediaries as well as all of the other parties that play direct or indirect roles in getting products to consumers; for example, raw materials suppliers, transport companies, wholesalers, and retailers.

Question 9

Tesla, Chanel and Rolex often try to control the distribution of their products and customer experience, due to the time and financial investment involved in the purchase. This approach to market coverage is known as:
A) intensive distribution.
B) direct distribution.
C) indirect distribution.
D) exclusive distribution.
E) selective distribution.

Accepted Answer

understand the concept of place and how distribution channels connect producers and consumers/organisational buyers. Exclusive distribution is generally used for products that are only purchased after a great deal of deliberation by the consumer or where exclusivity adds to the appeal of the product. Prestige cars and designer furniture are typical examples.

Question 10

When different stages of the distribution channel are combined under one management structure, it is known as:
A) a vertical marketing system.
B) horizontal channel integration.
C) vertical channel integration.
D) franchising.

Accepted Answer

understand the concept of place and how distribution channels connect producers and consumers/organisational buyers. Vertical channel integration occurs when different stages of the distribution channel are combined under one management structure. For example, vertical channel integration occurs when a wholesaler buys a retailer or a transport business.

Question 11

Apple Macbooks are available from licensed retailers and distributors in Australia. Retailers are licensed based on reputation and service, adding value to the strong Apple brand. This approach to market coverage is known as:
A) intensive distribution.
B) direct distribution.
C) indirect distribution.
D) exclusive distribution.
E) selective distribution.

Accepted Answer

understand the concept of place and how distribution channels connect producers and consumers/organisational buyers. Selective distribution is an approach to market coverage that distributes products through intermediaries chosen for some specific reason, often when the intermediary can provide some specific value-adding function to the producer's offering.

Question 12

You have a small outlet selling fresh juices and decide to license your business model, this is known as:
A) a vertical marketing system.
B) horizontal channel integration.
C) vertical channel integration.
D) franchising.

Accepted Answer

understand the concept of place and how distribution channels connect producers and consumers/organisational buyers. Franchising is a type of business where the right to sell products or rights to use the main elements of a business model are licensed by one party to another.

Question 13

Which of the following distribution channels is/are logical?
A) Producer, retailer, wholesaler, consumer.
B) Producer, wholesaler, retailer, consumer.
C) Producer, agent/broker, consumer.
D) Producer, consumer.
E) Options b, c and d.

Accepted Answer

understand the concept of place and how distribution channels connect producers and consumers/organisational buyers. Options b, c and d are all logical distribution channels. In option b, producers sell to wholesalers, who then sell on to the retailers. This is a common choice for goods sold in high volumes through numerous retailers. Option c is often seen in the financial services industry, in which banks pay mortgage brokers a trailing commission to sell mortgages to consumers. In option d, the producer deals directly with the consumer, e.g. Apple sells computer products directly to consumers via a website.

Question 14

The supply chain for grocery items is responsible for getting products to the end consumers. Which of the following would NOT be considered a part of a manufacturer such as 'Tip Top' bread's supply chain?
A) Raw materials suppliers.
B) Transport companies.
C) Wholesalers.
D) Retailers.
E) All of the options listed would be considered part of a manufacturer's supply chain.

Accepted Answer

understand the concept of place and how distribution channels connect producers and consumers/organisational buyers. The supply chain consists of the producer and marketing intermediaries as well as all of the other parties that play roles in getting products to consumers.

Question 15

Freedom Furniture recently bought out one of their competitors, Bay Swiss, to create one retail entity. This is an example of:
A) vertical channel integration.
B) horizontal channel integration.
C) a vertical marketing system.
D) a horizontal marketing system.
E) exclusive distribution.

Accepted Answer

understand the concept of place and how distribution channels connect producers and consumers/organisational buyers. Horizontal channel integration occurs when organisations at the same level of operation are combined under one management structure, e.g. when a retailer buys out a competitor.

Question 16

After completing your university degree, you decide to buy a Boost Juice franchise. The application for a franchise comes with an information pack which explains that:
A) the franchisee generally supplies labour and capital for the business.
B) the franchisor licences the right to use its business model, or sell its products, to the franchisee.
C) the franchisor stipulates standards and rules by which the franchise business must operate.
D) Options a, b and c.
E) Both b and c.

Accepted Answer

understand the concept of place and how distribution channels connect producers and consumers/organisational buyers. A franchise is a type of business in which the right to sell products and/or the rights to use the main element of a business model are licensed by one party (franchisor) to another (franchisee). All of the options given are correct.

Question 17

Order processing does NOT involve which of the following?
A) Managing the information required to receive, handle and fill a sales order.
B) Minimising costs and ensuring customer satisfaction.
C) Managing stocks of products to ensure availability.
D) A customer or salesperson (on behalf of a customer) placing an order.

Accepted Answer

describe the major activities involved in the distribution of goods. Order processing is the term used to describe all of the activities involved in managing the information required to receive, handle and fill a sales order.

Question 18

Cross-docking is defined as:
A) the practice of expediting the movement of goods from receipt to shipping.
B) the practice of storing products.
C) inventory management that involves holding only that stock that is about to be used or sold.
D) the physical handling of goods.

Accepted Answer

describe the major activities involved in the distribution of goods. Cross-docking is the practice of expediting the movement of goods from receipt to shipping.

Question 19

Which of the following is an example of e-distribution?
A) RFID (radio frequency identification technology).
B) Cross-docking.
C) Inventory management.
D) The physical handling of goods.

Accepted Answer

describe the major activities involved in the distribution of goods. An example of e-distribution is RFID which involves attaching a small electronic tag to items or containers, enabling their movements to be tracked down to a matter of centimetres.

Question 20

Online skincare and beauty retailers like Adore Beauty and Sephora have experienced high sale volumes due to COVID-19 lockdown restrictions across Australia. The just-in-time issue/s include:
A) insufficient safety stock.
B) unpredictable lead times.
C) unpredictable usage rates
D) Only C
E) All of the above.

Accepted Answer

describe the major activities involved in the distribution of goods. Just-in-time (JIT). Just-in-time minimises inventory holding costs, but only works when order lead times and usage rates are predictable and when the supply chain is reliable.

Quiz 10: Distribution Place

Intermediaries in a distribution channel can include:

As an agent for Massey Ferguson tractors, you are classed as an intermediary. Other intermediaries in the distribution channel for tractors and farm equipment include:

The path from the or service provider to the end user is known as the channel or marketing channel.

When Hass avocados are delivered to Woolworths warehouse facilities by Linfox transport, this approach to marketing is known as:

Coca-Cola distributes its soft drinks via every suitable intermediary. This distribution strategy is an example of:

Across Australia, there are multiple farmers markets and makers markets, whereby producers of a variety of goods sell their products. This is an example of a ____:

By definition, the supply chain consists of the producer and marketing intermediaries as well as all of the other parties that play direct or indirect roles in getting products to:

Tesla, Chanel and Rolex often try to control the distribution of their products and customer experience, due to the time and financial investment involved in the purchase. This approach to market coverage is known as:

When different stages of the distribution channel are combined under one management structure, it is known as:

Apple Macbooks are available from licensed retailers and distributors in Australia. Retailers are licensed based on reputation and service, adding value to the strong Apple brand. This approach to market coverage is known as:

You have a small outlet selling fresh juices and decide to license your business model, this is known as:

Which of the following distribution channels is/are logical?

The supply chain for grocery items is responsible for getting products to the end consumers. Which of the following would NOT be considered a part of a manufacturer such as 'Tip Top' bread's supply chain?

Freedom Furniture recently bought out one of their competitors, Bay Swiss, to create one retail entity. This is an example of:

After completing your university degree, you decide to buy a Boost Juice franchise. The application for a franchise comes with an information pack which explains that:

Order processing does NOT involve which of the following?

Cross-docking is defined as:

Which of the following is an example of e-distribution?

Online skincare and beauty retailers like Adore Beauty and Sephora have experienced high sale volumes due to COVID-19 lockdown restrictions across Australia. The just-in-time issue/s include: