Question 1

Ralston-Purina, with its lines of cereal, snack food, and pet food, has such brand equity and market position that it is able to coordinate distribution activities through its market power. It uses a(n): _____ for distribution.

Accepted Answer

Ralston-Purina's ability to coordinate distribution activities through its market power without the need for formal contracts or ownership of the distribution channels indicates the use of an administered vertical marketing system (VMS). This system relies on the size and power of one dominant player to control the activities of other members in the distribution channel.

Question 2

If a firm is consumer-oriented, the channels of distribution for its products should be determined by:

Accepted Answer

Consumer-oriented firms focus on meeting the needs and preferences of their customers. Therefore, understanding consumer buying behavior patterns is crucial in determining the most effective channels of distribution. This approach ensures that products are available in the right places and in the manner that consumers prefer, enhancing customer satisfaction and loyalty.

Question 3

_____ can have a significant influence on the selection of distribution channels.

Accepted Answer

All of the factors listed - geographic concentration of the market, order size, type of market, and number of potential customers - can significantly influence the selection of distribution channels. Each factor affects how products are best delivered to the target market efficiently and effectively.

Question 4

Which of the following is LEAST likely to have a significant influence on the selection of distribution channels?

Accepted Answer

Processes required in the product's manufacture are least likely to directly influence the selection of distribution channels, as distribution concerns the delivery of the product to the consumer rather than how the product is made.

Question 5

Which of the following products is most likely to have an indirect channel of distribution?

Accepted Answer

A $15 case of paper towels is most likely to have an indirect channel of distribution because it is a low-cost, mass-market consumer good that is typically sold through intermediaries like retailers or wholesalers, rather than directly from the producer to the consumer.

Question 6

Which of the following products is most likely to have a direct or short channel of distribution?

Accepted Answer

Fresh orchids are highly perishable items that require quick delivery to maintain their quality, making a direct or short channel of distribution most likely to ensure they reach consumers in the best condition.

Question 7

Management consulting services, tutoring, and a medical examination would:

Accepted Answer

These services typically involve direct interaction between the service provider and the customer, without intermediaries, which is characteristic of a direct channel of distribution.

Question 8

Before choosing a distribution channel for a product, a company should consider:

Accepted Answer

Before choosing a distribution channel, a company should consider all these factors: the services needed for buyers, control over the channel, internal marketing capabilities, and financial resources for a direct channel. These considerations help in selecting the most effective and efficient distribution strategy.

Question 9

When is a manufacturer most likely to bypass middlemen as much as possible and use a short channel of distribution?

Accepted Answer

When a manufacturer wants to control the distribution of its products, it is more likely to bypass middlemen to have greater control over how its products are sold and presented to the end consumers. This allows the manufacturer to maintain a consistent brand image, manage pricing more effectively, and directly manage the customer experience.

Question 10

Which of the following statements about the intensity of distribution is True?

Accepted Answer

The degrees of intensity span an entire continuum, meaning that distribution intensity can vary widely from exclusive to intensive, depending on the product and market strategy.

Question 11

A manufacturer that uses a(n) _____ strategy of distribution wants to sell its product through every outlet in a market where a consumer might reasonably look for it.

Accepted Answer

An intensive distribution strategy aims to distribute a product through as many outlets as possible, ensuring that it is available wherever potential customers might look for it.

Question 12

When marketing its product, the manufacturer of _____ would most likely use intensive distribution.

Accepted Answer

Flashlight batteries are low-cost, high-demand items that benefit from being available in as many locations as possible, which is the goal of intensive distribution.

Question 13

A producer-supplier of _____ would be most likely to use an intensive distribution strategy.

Accepted Answer

Intensive distribution strategies are typically used for products that are bought frequently and with minimal buying effort, such as snack crackers. These are common, low-cost items that benefit from being widely available to consumers in a variety of retail locations.

Question 14

The manufacturer of LifeSavers candy will most likely use _____ distribution.

Accepted Answer

LifeSavers candy, being a widely consumed and low-cost product, is best suited for intensive distribution. This strategy aims to place the product in as many outlets as possible to maximize consumer accessibility.

Question 15

The manufacturers of light bulbs, nail clippers, chewing gum, and sodas would most likely want to use _____ distribution.

Accepted Answer

Intensive distribution is used for products that require widespread availability to ensure that consumers encounter the product almost everywhere they shop, such as light bulbs, nail clippers, chewing gum, and sodas. This strategy maximizes product availability and visibility.

Question 16

For which of the following products will its manufacturer most likely choose intensive distribution?

Accepted Answer

Soft drinks are typically distributed intensively to ensure they are available in as many locations as possible, such as supermarkets, convenience stores, and vending machines, to maximize consumer access and sales.

Question 17

A manufacturer that uses selective distribution:

Accepted Answer

Selective distribution involves limiting the number of outlets in each market to maintain a certain level of exclusivity or control over the product's presentation and sales practices.

Question 18

In _____ distribution, a producer sells its products though multiple, but not all possible, wholesalers and/ or retailers in a market where a consumer might reasonably look for it

Accepted Answer

Selective distribution involves a producer selling its products through multiple, but not all possible, wholesalers or retailers in a market where a consumer might reasonably look for it. This approach allows for a balance between too wide and too narrow a distribution.

Question 19

If Teresa sent her husband Patrick to buy a BellSouth portable telephone, he could find it at a BellSouth store, at an electronics store, and at The Home Depot. He would not find a BellSouth portable phone for sale at department stores even though he might expect to find phones being sold there. From this information, you can surmise that BellSouth uses _____ distribution.

Accepted Answer

BellSouth uses selective distribution because its products are available in specific stores (BellSouth store, electronics stores, and The Home Depot) but not in department stores, indicating a deliberate choice of certain outlets to reach its market.

Question 20

Barbie Collectibles are sold in a number of retail stores, but not by all the stores that would like to carry the product line. Mattel is using _____ distribution for its Barbie lines.

Accepted Answer

Selective distribution is used by Mattel for its Barbie lines, as it involves choosing a limited number of retail outlets in specific locations to sell the product, rather than making it available in every possible store. This strategy allows for better control over the brand's image and distribution.

Quiz 14: Channels of Distribution

Ralston-Purina, with its lines of cereal, snack food, and pet food, has such brand equity and market position that it is able to coordinate distribution activities through its market power. It uses a(n) : _____ for distribution.