Question 1

Lenox china, Estee Lauder perfume, Oneida flatware, and Martex towels are sold in a number of department stores, but not in all that might like to carry these brands. This is an example of _____ distribution.
A) exclusive
B) intensive
C) direct
D) selective
E) dual

Accepted Answer

This is an example of selective distribution, where manufacturers supply their products to a limited number of retail outlets or dealers within a specific location or region. This allows brands to choose retailers that align with their image and ensures better control over how their products are marketed and sold.

Question 2

For which of the following products would its manufacturer most likely choose selective distribution?
A) Oreo single-serving packages
B) Armstrong flooring
C) Energizer batteries
D) Steinway pianos
E) Florida orange juice

Accepted Answer

Selective distribution is often used for products that require a certain level of service or expertise to sell, such as Armstrong flooring, which may need professional installation and advice.

Question 3

Avon products can be purchased through its sales force, at its retail operations, and on the Internet, but not at every outlet that might like to carry the Avon line of products. Avon uses ______ distribution.
A) exclusive
B) intensive
C) direct
D) selective
E) horizontal

Accepted Answer

Avon uses selective distribution, which means they carefully choose specific outlets to sell their products, rather than selling them everywhere. This approach allows for a controlled distribution, ensuring that their products are sold in environments that align with their brand image and strategy.

Question 4

The manufacturers of Delta brand faucets, Bosch brand appliances, and La-Z-Boy recliners most likely use ______ distribution because they are sold in a number of retail outlets but not in all that might like to carry them.
A) exclusive
B) intensive
C) direct
D) selective
E) scrambled

Accepted Answer

Selective distribution is used by manufacturers who sell their products in a number of outlets but not in all possible outlets. This strategy allows for a balance between reaching a wide audience and maintaining a certain level of control over the brand's image and positioning. Delta, Bosch, and La-Z-Boy are examples of brands that typically choose selective distribution to ensure their products are available in outlets that match their brand image and customer base, without saturating the market.

Question 5

A firm that wants to _____ may decide to use a selective distribution strategy.
A) become a channel leader
B) provide fewer customer services
C) enhance the image of its products
D) create a differential advantage which its competition cannot imitate
E) pay less attention to the other elements of the marketing mix

Accepted Answer

Selective distribution can enhance the image of a product by associating it with certain retailers, creating a perception of exclusivity and quality.

Question 6

Under a(n) _____ distribution strategy, the supplier agrees to sell its products only to a single wholesaling middleman and/or retailer in a given market.
A) exclusive
B) intensive
C) direct
D) selective
E) dual

Accepted Answer

An exclusive distribution strategy involves a supplier agreeing to sell its products only through a single wholesaling middleman and/or retailer in a specific market. This approach is often used for high-end products or when the supplier wants to maintain a high level of control over the distribution and sale of its products.

Question 7

When Hewlett-Packard began selling its computers to consumers, the only store that carried its line of computer products was Circuit City. What kind of distribution strategy was Hewlett-Packard using?
A) exclusive
B) intensive
C) direct
D) selective
E) dual

Accepted Answer

Hewlett-Packard was using an exclusive distribution strategy by selling its computers through only one retailer, Circuit City. This approach limits the number of outlets in order to create a more upscale image or control how the product is marketed and sold.

Question 8

How many times have you been listening to the radio and heard a commercial for some performer who will be appearing in or near your community? Quite often tickets for the event are only available through the Internet. This is an example of _____ distribution.
A) exclusive
B) intensive
C) media
D) selective
E) dual

Accepted Answer

Exclusive distribution is when a product or service is only available through a single or very limited channels, making it more exclusive or difficult to obtain. In this case, tickets being available only through the Internet is an example of exclusive distribution, as it limits the ways in which consumers can purchase tickets.

Question 9

The Olympics Store is the only place in Chicago where a collector of Olympic memorabilia can buy a set of eight Olympic pins priced at $300,000. (They are made of diamonds, rubies, and other precious stones.) What kind of distribution strategy is the Olympic Committee using with these pins?
A) exclusive
B) intensive
C) direct
D) selective
E) dual

Accepted Answer

The Olympic Committee is using an exclusive distribution strategy by making the pins available at only one location, thereby limiting access and enhancing the perceived value of the items.

Question 10

For which of the following products will its manufacturer most likely choose exclusive distribution?
A) mystery novels
B) charcoal
C) a brand of luxury automobile
D) knee pads
E) gardening magazines

Accepted Answer

Manufacturers of luxury automobiles often choose exclusive distribution to maintain a high level of service quality and to control the brand image closely. Exclusive distribution limits the number of places where a product can be sold, which is suitable for high-end products that require a specific buying experience.

Question 11

Which of the following products is LEAST likely to be marketed using an exclusive distribution strategy?
A) one-of-a-kind designer gowns
B) custom-designed belt buckles
C) computer diskettes
D) machines to bale hay
E) road graders

Accepted Answer

Computer diskettes are common, standardized products with a broad market, making them least likely to be marketed through exclusive distribution, which is typically used for unique, high-value, or specialty products.

Question 12

The phrase "to have all your eggs in one basket" relates most directly to _____ distribution.
A) exclusive
B) selective
C) indirect
D) multiple
E) intensive

Accepted Answer

The phrase "to have all your eggs in one basket" suggests putting all resources or efforts into one option, which aligns with "exclusive" distribution where a product is sold through a single or very limited number of outlets.

Question 13

Levi Strauss's low-priced Signature line of jeans for men, women, and children can only be purchased at Wal-Mart. This is an example of _____ distribution.
A) selective
B) single-sourcing
C) dyadic
D) exclusive
E) one-way

Accepted Answer

Exclusive distribution is when a product is sold through a single retailer. In this case, Levi Strauss's Signature line being available only at Wal-Mart is an example of exclusive distribution.

Question 14

_____ exists when one channel member perceives another channel member to be acting in a way that prevents the first member from achieving its distribution objectives.
A) Channel empowerment
B) Channel conflict
C) Distribution discord
D) Channel power hogging
E) Channel vision

Accepted Answer

Channel conflict occurs when one channel member believes another member is hindering its ability to meet its distribution goals. This can arise from disagreements on roles, responsibilities, or the distribution of resources within the channel.

Question 15

Clothing manufacturer Tommy Hilfiger, a brand sold at Wal-Mart stores, sued the giant retailer for selling counterfeit Hilfiger clothing. This suit produced:
A) channel empowerment
B) channel conflict
C) distribution discord
D) channel power hogging
E) channel vision

Accepted Answer

The lawsuit between Tommy Hilfiger and Wal-Mart over the sale of counterfeit Hilfiger clothing would lead to channel conflict, as it represents a dispute between a manufacturer and a retailer in the distribution channel.

Question 16

ArvinMeritor is a company that manufactures parts for the motor vehicle industry. It once used 15,000 different suppliers around the world. In 2002, the company announced plans to reduce its number of global suppliers to 1,000 by 2010. As ArvinMeritor determines which suppliers can meet or exceed its list of predetermined performance requirements, _____ is likely to occur.
A) channel empowerment
B) channel conflict
C) distribution discord
D) channel power hogging
E) channel vision

Accepted Answer

Channel conflict is likely to occur as ArvinMeritor reduces its number of suppliers. This reduction process can lead to competition among existing suppliers and disagreements on the distribution of roles and resources, causing conflicts within the supply channel.

Question 17

ArvinMeritor is a company that manufactures parts for the motor vehicle industry. It once used 15,000 different suppliers around the world. In 2002, the company announced plans to reduce its number of global suppliers to 1,000 by 2010. All of its suppliers have access to a Web site that shows suppliers how they rate in quality, delivery, and management. This Web site could lead to ____ among ArvinMeritor's suppliers.
A) scrambled merchandising
B) horizontal conflict
C) the development of indirect distribution channels
D) vertical conflict
E) channel discord.

Accepted Answer

Horizontal conflict occurs when two or more firms at the same level of the supply chain compete for the same customers. In this case, ArvinMeritor's suppliers are competing for the company's business. The Web site that ArvinMeritor has created could lead to horizontal conflict among its suppliers because it allows them to see how they rate in quality, delivery, and management. This information could lead to suppliers competing with each other to improve their ratings and win more business from ArvinMeritor.

Question 18

A(n) _____ is a penalty that a retailer or wholesaler assesses to a vendor that actually or allegedly has violated an agreed-upon distribution policy or procedure.
A) chargeback
B) functional allowance
C) reinforcement allowance
D) payback expense
E) tangible penalty

Accepted Answer

A chargeback is a financial penalty imposed on a vendor by a retailer or wholesaler for not adhering to agreed-upon distribution policies or procedures. This can include issues like late shipments, incorrect product labeling, or failure to meet specified product standards. Chargebacks are used as a way to enforce compliance and recover costs associated with the vendor's failure to meet contractual obligations.

Question 19

When the retailer received box of expensive collectible ornaments, it rattled. Upon opening the box, the retailer found pieces of ornaments because the manufacturer had improperly packed the ornaments and not used sufficient padding. The retailer would likely demand a _____ from the manufacturer.
A) chargeback
B) functional allowance
C) reinforcement allowance
D) payback expense
E) tangible penalty

Accepted Answer

A chargeback is appropriate in this scenario because it is a financial penalty for non-compliance with agreed terms, such as inadequate packaging leading to damaged goods.

Question 20

Chargebacks often lead to:
A) the abandonment of disintermediation plans.
B) the use of a more creative promotional strategy.
C) channel conflict.
D) a reduction in fixed costs.
E) an increase in employee pilferage.

Accepted Answer

Chargebacks can lead to channel conflict as they often involve disputes between merchants and their financial institutions or between different parties in the supply chain over the responsibility for covering the cost of fraudulent or disputed transactions. This can strain relationships and cause conflicts within the distribution channel.

Quiz 14: Channels of Distribution

Lenox china, Estee Lauder perfume, Oneida flatware, and Martex towels are sold in a number of department stores, but not in all that might like to carry these brands. This is an example of _____ distribution.

For which of the following products would its manufacturer most likely choose selective distribution?

Avon products can be purchased through its sales force, at its retail operations, and on the Internet, but not at every outlet that might like to carry the Avon line of products. Avon uses ______ distribution.

The manufacturers of Delta brand faucets, Bosch brand appliances, and La-Z-Boy recliners most likely use ______ distribution because they are sold in a number of retail outlets but not in all that might like to carry them.

A firm that wants to _____ may decide to use a selective distribution strategy.

Under a(n) _____ distribution strategy, the supplier agrees to sell its products only to a single wholesaling middleman and/or retailer in a given market.

When Hewlett-Packard began selling its computers to consumers, the only store that carried its line of computer products was Circuit City. What kind of distribution strategy was Hewlett-Packard using?

How many times have you been listening to the radio and heard a commercial for some performer who will be appearing in or near your community? Quite often tickets for the event are only available through the Internet. This is an example of _____ distribution.

The Olympics Store is the only place in Chicago where a collector of Olympic memorabilia can buy a set of eight Olympic pins priced at $300,000. (They are made of diamonds, rubies, and other precious stones.) What kind of distribution strategy is the Olympic Committee using with these pins?

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

Which of the following products is LEAST likely to be marketed using an exclusive distribution strategy?

The phrase "to have all your eggs in one basket" relates most directly to _____ distribution.

Levi Strauss's low-priced Signature line of jeans for men, women, and children can only be purchased at Wal-Mart. This is an example of _____ distribution.

_____ exists when one channel member perceives another channel member to be acting in a way that prevents the first member from achieving its distribution objectives.

Clothing manufacturer Tommy Hilfiger, a brand sold at Wal-Mart stores, sued the giant retailer for selling counterfeit Hilfiger clothing. This suit produced:

A(n) _____ is a penalty that a retailer or wholesaler assesses to a vendor that actually or allegedly has violated an agreed-upon distribution policy or procedure.

When the retailer received box of expensive collectible ornaments, it rattled. Upon opening the box, the retailer found pieces of ornaments because the manufacturer had improperly packed the ornaments and not used sufficient padding. The retailer would likely demand a _____ from the manufacturer.

Chargebacks often lead to: