Question 1

Distribution costs can be very low for digital products because there is often no physical good to distribute.

Accepted Answer

Distribution costs can be very low for digital products (music, video games, and software) because there is often no physical good to distribute.

Question 2

"Sorting" means separating products into grades and qualities desired by different target markets.

Accepted Answer

Sorting means separating products into grades and qualities desired by different target markets.

Question 3

A new channel is more likely to prompt conflict if it focuses on segments not already served by current channels.

Accepted Answer

To avoid channel conflicts, manufacturers often try to serve different market segments through each channel.

Question 4

Assorting activities involve putting together a variety of products to give a target market what it wants.

Accepted Answer

Assorting means putting together a variety of products to give a target market what it wants.

Question 5

Discrepancies of assortment occur because individual producers tend to specialize in producing a large assortment of products while individual consumers prefer to buy a small assortment of products.

Accepted Answer

Discrepancy of assortment means the difference between the lines a typical producer makes and the assortment final consumers or users want.

Question 6

The most important reason to use indirect channels is if intermediaries can help serve customers better and at lower cost.

Accepted Answer

The most important reason for using an indirect channel of distribution is that an intermediary can often help producers serve customer needs better and at lower cost.

Question 7

"Regrouping activities" involve adjusting the quantities or assortments of products handled at each level in a channel of distribution.

Accepted Answer

Regrouping activities adjust the quantities or assortments of products handled at each level in a channel of distribution.

Question 8

In an indirect channel of distribution,both vertical conflict and horizontal conflict may arise.

Accepted Answer

There are two basic types of conflict in indirect channel of distribution-vertical conflicts and horizontal conflicts.

Question 9

Digital products cost more to distribute than physical products.

Accepted Answer

Distribution costs can be very low for digital products (music, video games, and software) because there is often no physical good to distribute.

Question 10

Discrepancy of quantity means the difference between the lines a typical producer makes and the assortment final consumers want.

Accepted Answer

Discrepancy of quantity means the difference between the quantity of products it is economical for a producer to make and the quantity final consumers or users normally want.

Question 11

When a warehouse is rearranged to speed up order processing,"regrouping activities" are being performed.

Accepted Answer

Regrouping activities adjust the quantities or assortments of products handled at each level in a channel of distribution. It does not involve rearranging.

Question 12

Bulk-breaking means separating products into grades and qualities as desired by different target markets.

Accepted Answer

Bulk-breaking involves dividing larger quantities into smaller quantities as products get closer to the final market.

Question 13

Accumulating involves dividing larger quantities into smaller quantities as products get closer to the final market.

Accepted Answer

Accumulating involves collecting products from many small producers.

Question 14

Channel conflict often results when a manufacturer opens a new distribution channel,especially if it directly competes with its existing intermediaries.

Accepted Answer

Horizontal conflicts, one of the basic types of channel conflict, occur between firms at the same level in the channel of distribution.

Question 15

A "channel captain" is a manager who helps direct the activities of a whole channel.

Accepted Answer

A channel captain is a manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.

Question 16

Discrepancies of quantity and assortment occur because individual producers find it economical to produce and sell small quantities of a large assortment of products while individual consumers prefer to buy large quantities of a small assortment of products.

Accepted Answer

The assortment and quantity of products customers want may be different from the assortment and quantity of products companies produce leading to discrepancies of assortment and quantity.

Question 17

Assorting means separating products into grades and qualities desired by different target markets.

Accepted Answer

Assorting means putting together a variety of products to give a target market what it wants.

Question 18

Discrepancies of quantity occur because individual producers want to produce large quantities of products while individual consumers prefer to buy products in small quantities.

Accepted Answer

Discrepancy of quantity means the difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want.

Question 19

Accumulating involves collecting products from many small producers-often as a way to get lower transportation rates.

Accepted Answer

Accumulating involves collecting products from many small producers. Accumulating the small products into larger quantities is a way of getting the lowest transporting rate.

Question 20

One way for a producer to reduce conflict with channel partners is to offer different products in each different channel.

Accepted Answer

Some firms manage conflict by offering different products through each channel.

Quiz 12: Place and Development of Channel Systems

Distribution costs can be very low for digital products because there is often no physical good to distribute.

"Sorting" means separating products into grades and qualities desired by different target markets.

A new channel is more likely to prompt conflict if it focuses on segments not already served by current channels.

Assorting activities involve putting together a variety of products to give a target market what it wants.

Discrepancies of assortment occur because individual producers tend to specialize in producing a large assortment of products while individual consumers prefer to buy a small assortment of products.

The most important reason to use indirect channels is if intermediaries can help serve customers better and at lower cost.

"Regrouping activities" involve adjusting the quantities or assortments of products handled at each level in a channel of distribution.

In an indirect channel of distribution,both vertical conflict and horizontal conflict may arise.

Digital products cost more to distribute than physical products.

Discrepancy of quantity means the difference between the lines a typical producer makes and the assortment final consumers want.

When a warehouse is rearranged to speed up order processing,"regrouping activities" are being performed.

Bulk-breaking means separating products into grades and qualities as desired by different target markets.

Accumulating involves dividing larger quantities into smaller quantities as products get closer to the final market.

Channel conflict often results when a manufacturer opens a new distribution channel,especially if it directly competes with its existing intermediaries.

A "channel captain" is a manager who helps direct the activities of a whole channel.

Discrepancies of quantity and assortment occur because individual producers find it economical to produce and sell small quantities of a large assortment of products while individual consumers prefer to buy large quantities of a small assortment of products.

Assorting means separating products into grades and qualities desired by different target markets.

Discrepancies of quantity occur because individual producers want to produce large quantities of products while individual consumers prefer to buy products in small quantities.

Accumulating involves collecting products from many small producers-often as a way to get lower transportation rates.

One way for a producer to reduce conflict with channel partners is to offer different products in each different channel.