Question 1

A computer manufacturer sells computers through a variety of methods which include telemarketing,catalog selling,cable selling,and online selling.Which of the following channels is the manufacturer using?
A) Horizontal channel
B) Direct channel
C) Peer-to-peer marketing
D) Administered marketing

Accepted Answer

Some manufacturers use direct channels, selling directly to a market without the use of other intermediaries. The use of a direct channel, called direct marketing, increased in popularity as marketers found that products could be sold directly using a variety of methods. These include direct mail, telemarketing, direct-action advertising, catalog selling, cable selling, online selling, and direct selling through demonstrations at home or place of work.

Question 2

As in the consumer markets,_____ are used in organizational markets when manufacturers do not wish to have their own sales force.
A) wholesalers
B) distributors
C) agents
D) retailers

Accepted Answer

As in the consumer market, agents are used in organizational markets in cases where manufacturers do not wish to have their own sales forces.

Question 3

Which of the following products is most likely to require a direct channel of distribution?
A) Coal
B) Lighting fixtures
C) Tropical flowers
D) Wooden picture frames

Accepted Answer

Highly perishable products generally require a direct channel of distribution.

Question 4

A _____ is the combination of institutions through which a seller markets products to the user.
A) marketing node
B) distribution channel
C) sales consortium
D) logistics organization

Accepted Answer

A channel of distribution is the combination of institutions through which a seller markets products to the user or ultimate consumer.

Question 5

If a product has low unit value and high frequency of purchase with customer expectation of convenience,it is most likely to require a(n)_____ form of distribution.
A) focused
B) intensive
C) exclusive
D) selective

Accepted Answer

Most convenience goods require intensive distribution based on the characteristics of the product (low unit value) and the needs and expectations of the buyer (high frequency of purchase and convenience).

Question 6

The primary role of all marketing intermediaries is to:
A) bring supply and demand together in an efficient and orderly fashion.
B) gather information from consumers in order to help manufactures design products better.
C) produce goods and services efficiently to meet the demands of customers.
D) prevent customers from making poor buying decisions.

Accepted Answer

The primary role of intermediaries is to bring supply and demand together in an efficient and orderly fashion.

Question 7

Which among the following requires a direct channel of distribution?
A) Cream dessert
B) Beer cans
C) Laundry detergent
D) Designer footwear

Accepted Answer

Highly perishable products generally require direct channels for distribution.

Question 8

Under which of the following conditions may a manufacturer wish to have its own sales force?
A) The manufacturer is a small player in its category.
B) The market for its products is geographically concentrated.
C) The products require minimal presale and postsale services.
D) The market consists of many small customers.

Accepted Answer

The direct channel is often used in the distribution of organizational goods as most organizational markets often have relatively few but extremely large customers. Also, many organizational products need a great deal of presale and postsale service. Agents are used in cases where manufacturers do not wish to have their own sales forces. Such an arrangement may be used by small manufacturers, when the market is geographically dispersed, or when the market consists of many small customers. Under such conditions, it may not be economical for sellers to have their own sales organization.

Question 9

Most convenience goods require _____ form of distribution.
A) focused
B) intensive
C) exclusive
D) selective

Accepted Answer

Most convenience goods require intensive distribution based on the characteristics of the product (low unit value) and the needs and expectations of the buyer (high frequency of purchase and convenience).

Question 10

In contrast to consumer products,organizational goods are often distributed through _____.
A) the direct channel
B) the horizontal channel
C) peer-to-peer marketing
D) administered marketing

Accepted Answer

In contrast to consumer products, the direct channel is often used in the distribution of organizational goods. The reason for this stems from the structure of most organizational markets, which often have relatively few but extremely large customers. Also, many organizational products need a great deal of presale and postsale service.

Question 11

Channels with one or more intermediaries are referred to as _____.
A) administered channels
B) customer-centric channels
C) indirect channels
D) centralized channels

Accepted Answer

Channels with one or more intermediaries are referred to as indirect channels.

Question 12

During the channel selection process,a manufacturer should consider all of the following EXCEPT:
A) distribution coverage required by its product.
B) preferences of the intermediaries.
C) degree of control the manufacturer wants to have over the channel.
D) total distribution cost.

Accepted Answer

Choice of channels can be further refined in terms of (1) distribution coverage required, (2) degree of control desired, (3) total distribution cost, and (4) channel flexibility.

Question 13

Which of the following is most likely to be distributed through the indirect channel?
A) Smartphones
B) Complex medical equipments
C) Tropical flowers
D) Computer systems

Accepted Answer

In contrast to consumer products such as smartphones which use the indirect channel, the direct channel is often used in the distribution of organizational goods. The reason for this is that many organizational products, such as computer systems, need a great deal of presale and postsale services. Complex medical equipments are also mostly distributed through direct channels to hospitals. Highly perishable products like tropical flowers generally require direct channels as well.

Question 14

A shoe manufacturer sells high-end designer shoes to wholesalers who,in turn,sell a variety of shoes and other leather accessories to various retail outlets.Which of the following channels of distribution is the shoe manufacturer using?
A) Matrix channel
B) Indirect channel
C) Peer-to-peer channel
D) Maker to user channel

Accepted Answer

Channels with one or more intermediaries are referred to as indirect channels. The shoe manufacturer is using an indirect channel as there are multiple intermediaries involved in the process.

Question 15

In which of the following forms of distribution coverage does the manufacturer limit the use of intermediaries to the ones believed to be the best available in the geographic area?
A) Exclusive distribution
B) Geodemographic distribution
C) Intensive distribution
D) Selective distribution

Accepted Answer

A manufacturer utilizing a selective form of distribution coverage limits the use of intermediaries to the ones believed to be the best available in the geographic area.

Question 16

In which of the following forms of distribution coverage does the manufacturer attempt to gain exposure through as many wholesalers and retailers as possible?
A) Focused distribution
B) Intensive distribution
C) Exclusive distribution
D) Selective distribution

Accepted Answer

A manufacturer utilizing an intensive form of distribution coverage attempts to gain exposure through as many wholesalers and retailers as possible.

Question 17

In contrast to organizational goods,consumer products are often distributed through the _____ channel.
A) matrix
B) indirect
C) peer-to-peer
D) maker to user

Accepted Answer

A common channel for consumer goods is one in which the manufacturer sells through wholesalers and retailers. Channels with one or more such intermediaries are referred to as indirect channels.

Question 18

Which of the following is most likely to be distributed through the direct channel?
A) Smartphones
B) Staplers
C) Hair dryers
D) Computer systems

Accepted Answer

In contrast to consumer products, such as smartphones, staplers, or hair dryers, the direct channel is often used in the distribution of organizational goods. The reason for this is that many organizational products, such as computer systems, need a great deal of presale and postsale services.

Question 19

Which of the following is a reason for organizations to use the direct channel for distributing organizational goods?
A) Structure of most organizational markets often have relatively few and small customers.
B) Manufacturers' lack of economic power for hiring intermediaries.
C) Their markets are geographically dispersed.
D) Many organizational products need a great deal of presale and postsale services.

Accepted Answer

In contrast to consumer products, the direct channel is often used in the distribution of organizational goods. The reason for this is that many organizational products, such as computer systems, need a great deal of presale and postsale services.

Question 20

A manufacturer decides to utilize intensive distribution for his products.Which of the following parameters of channel selection decision does this choice illustrate?
A) Total distribution cost
B) Degree of control desired
C) Channel flexibility
D) Distribution coverage required

Accepted Answer

The choice of channels can be refined in terms of (1) distribution coverage required, (2) degree of control desired, (3) total distribution cost, and (4) channel flexibility. Distribution coverage can be viewed along a continuum ranging from intensive to selective to exclusive distribution. A manufacturer utilizing an intensive form of distribution coverage attempts to gain exposure through as many wholesalers and retailers as possible.

Quiz 10: Distribution Strategy

A computer manufacturer sells computers through a variety of methods which include telemarketing,catalog selling,cable selling,and online selling.Which of the following channels is the manufacturer using?

As in the consumer markets,_____ are used in organizational markets when manufacturers do not wish to have their own sales force.

Which of the following products is most likely to require a direct channel of distribution?

A _____ is the combination of institutions through which a seller markets products to the user.

If a product has low unit value and high frequency of purchase with customer expectation of convenience,it is most likely to require a(n) _____ form of distribution.

The primary role of all marketing intermediaries is to:

Which among the following requires a direct channel of distribution?

Under which of the following conditions may a manufacturer wish to have its own sales force?

Most convenience goods require _____ form of distribution.

In contrast to consumer products,organizational goods are often distributed through _____.

Channels with one or more intermediaries are referred to as _____.

During the channel selection process,a manufacturer should consider all of the following EXCEPT:

Which of the following is most likely to be distributed through the indirect channel?

A shoe manufacturer sells high-end designer shoes to wholesalers who,in turn,sell a variety of shoes and other leather accessories to various retail outlets.Which of the following channels of distribution is the shoe manufacturer using?

In which of the following forms of distribution coverage does the manufacturer limit the use of intermediaries to the ones believed to be the best available in the geographic area?

In which of the following forms of distribution coverage does the manufacturer attempt to gain exposure through as many wholesalers and retailers as possible?

In contrast to organizational goods,consumer products are often distributed through the _____ channel.

Which of the following is most likely to be distributed through the direct channel?

Which of the following is a reason for organizations to use the direct channel for distributing organizational goods?

A manufacturer decides to utilize intensive distribution for his products.Which of the following parameters of channel selection decision does this choice illustrate?