Question 1

Which of the following is used as an evaluative criterion for channel members?
A)Quality and position of display
B)Sales volume and value
C)New accounts opened
D)All of the above are used as evaluative criteria

Accepted Answer

All of the options can be used as evaluative criteria for channel members. The quality and position of display can impact the visibility and attractiveness of the product to customers. Sales volume and value can indicate the effectiveness of the channel member in selling the product. New accounts opened can show the ability of the channel member to attract new customers and expand the customer base.

Question 2

Which of the following is a method for reducing conflict within a channel?
A)Coercion
B)Purchase of other party
C)Partition of market
D)All of the above are methods

Accepted Answer

Partition of market involves dividing the market into segments and assigning them to different channel members to eliminate direct competition. This reduces conflict within the channel as each member has a specific role to play in the market. Coercion and purchase of other party are not effective methods for reducing conflict as they can create resentment and distrust within the channel.

Question 3

Most retailing is conducted in stores, but non-store retailing is also on the increase. Which of the following is an example of non-store retailing?
A)Discount houses
B)Category killers
C)Department stores
D)Automatic vending

Accepted Answer

Automatic vending is a form of non-store retailing where products are sold to consumers through vending machines without the need for a traditional brick-and-mortar retail space.

Question 4

The evaluation of channel members has an important bearing on which of the following?
A)Training decisions
B)Motivation decisions
C)Distributor retention decisions
D)All of the above are influenced by channel evaluation

Accepted Answer

The answer of The evaluation of channel members has an...

Question 5

Which of the following is used as an evaluative criterion for channel members?
A)Competitor control feedback
B)Quality of service provided to customers
C)Company capability
D)All of the above are used as evaluative criteria

Accepted Answer

Quality of service provided to customers is a commonly used evaluative criterion for channel members as it directly impacts the customer experience and satisfaction. Competitor control feedback and company capability may also be used as evaluative criteria, but they are not as directly related to customer satisfaction as the quality of service provided.

Question 6

Increasingly, retailers are opting for a dual online and offline channel, as they realize that as well as having an online presence, _______ stores play an important role in brand awareness and brand building.
A)intangible
B)physical
C)online
D)non

Accepted Answer

The context mentions that retailers are opting for a dual online and offline channel, which implies that they have both physical (offline) and online channels. The sentence further highlights that physical stores play an important role in brand awareness and brand building. Therefore, the best choice is B - physical.

Question 7

Mail order is a form of _______ retailing, whereby catalogues are employed as a promotional vehicle and the purchase transaction is normally conducted via the mail.
A)store
B)non-store
C)limited
D)secondary

Accepted Answer

Mail order is a form of non-store retailing, as it does not require a physical store for the purchase transaction to take place.

Question 8

Mail order retailing offers many advantages e.g. the prospect of pan-European catalogues, _______ warehousing and processing of cross-border orders.
A)central
B)dispersed
C)secondary
D)minor

Accepted Answer

Central warehousing is the most efficient and cost-effective option for mail order retailing as it allows for streamlined inventory management and processing. Centralized processing of cross-border orders also simplifies logistics and reduces the risk of errors or delays.

Question 9

Which of the following is distributed by means of automatic vending?
A)Soft drinks
B)Confectionery
C)Newspapers
D)All may be distributed by automatic vending

Accepted Answer

Soft drinks, confectionery, and newspapers can all be distributed by automatic vending machines.

Question 10

Mail order and automatic vending are examples of which of the following?
A)Non-store retailing
B)Online retailing
C)Development retailing
D)Discount retailing

Accepted Answer

Mail order and automatic vending are both examples of non-store retailing, which involve selling goods directly to consumers outside of a traditional brick-and-mortar store. Online retailing would involve a website or digital platform, while development retailing refers to the creation of new retail concepts or strategies. Discount retailing refers to offering products at a lower price point than traditional retail stores.

Question 11

Which of the following is an advantage of online retailing?
A)Relatively lower costs
B)Location is less important
C)Flexibility
D)All of these are advantages of online retailing

Accepted Answer

The answer of Which of the following is an advantage...

Question 12

Which of the following is a "category killer"?
A)Speciality stores which stock a deep product line to be sold in restricted shop space
B)Retail outlets with a narrow product focus but that sell products at low prices by bulk buying, accepting low margins and selling high volumes
C)Retail outlets with a wide product focus but with an unusually wide width and depth to that product range
D)Retail outlets with a narrow product focus but with an unusually wide width and depth to that product range

Accepted Answer

Category killers are retail outlets that focus on one type of product but offer a very wide range of items within that category, often dominating the market and making it difficult for smaller retailers to compete.

Question 13

Speciality shops have a _______.
A)narrow product line
B)wide product line
C)discount prices
D)none of the above

Accepted Answer

Speciality shops typically focus on a specific product category or niche, resulting in a narrow product line. This allows them to offer a more specialized and unique selection of products to their customers.

Question 14

Automatic vending offers many advantages and disadvantages to companies. No sales staff are required, although re-stocking, _______ and repair costs can be high.
A)servicing
B)financing
C)evaluating
D)budgeting

Accepted Answer

"Servicing" refers to the maintenance and repair of the vending machine, which could potentially be a high cost for the company. "Financing" and "budgeting" are not directly related to the issue of restocking and repair costs, and "evaluating" is vague and does not provide a clear answer.

Question 15

Why may conflict arise within a channel?
A)Over dependence on a particular channel member
B)Single distribution channels
C)Differences in goals
D)Performing to expectations

Accepted Answer

Differences in goals can lead to conflict within a channel because each member may have different objectives and priorities.

Question 16

Which of the following retail chains is an example of a "category killer" retailer?
A)B & Q
B)PC World
C)Debenhams
D)Top Shop

Accepted Answer

The answer of Which of the following retail chains is...

Question 17

Department stores are under increasing pressure due to which of the following?
A)The emergence of out of town shopping
B)The emergence of discount chains
C)The emergence of speciality stores
D)All of the above are reasons why department stores are facing greater pressure

Accepted Answer

All of the options mentioned (out of town shopping, discount chains, and speciality stores) have contributed to the increasing pressure on department stores. Out of town shopping centers offer a wider range of options and convenient parking. Discount chains provide low prices, and speciality stores offer more specialized and unique products. All of these factors have led to a decline in foot traffic and sales for department stores.

Question 18

Online retailing can take three forms: _______ online retailing, products can be ordered online and then distributed , or the company can develop an online presence.
A)uncontrolled
B)non-store
C)limited
D)pure

Accepted Answer

Pure online retailing involves selling products exclusively through an online platform, without any physical store presence.

Question 19

Discount houses are usually located in which of the following areas?
A)High street locations
B)Out of town retail centres
C)In city retail centres
D)Beside department stores

Accepted Answer

Discount houses are usually located in out of town retail centres where there is ample space for large stores with lower rent costs. This allows them to offer lower prices on their products.

Question 20

The power of supermarket chains is illustrated in their ability to extract "Guarantee of Margins" from manufacturers. This refers to a situation where _______.
A)a guaranteed percentage of sales is used as a promotional allowance
B)a fixed percentage of a product's price is returned to manufacturers in the form of an advertising rebate
C)a clause is inserted in the manufacturer's contract that states that a fixed amount of the manufacturer's product will be stocked for a specified time period
D)a clause is inserted in the contract that ensures a certain profit margin for the retailer irrespective of the retail price being charged to the customer

Accepted Answer

A "Guarantee of Margins" refers to a clause in a contract that ensures a certain profit margin for the retailer irrespective of the retail price being charged to the customer. This gives supermarket chains the power to dictate pricing for the manufacturer and can often result in the manufacturer being forced to reduce their margins in order to maintain their presence in the retailer's stores.

Quiz 9: Distribution: Delivering Customer Value

Which of the following is used as an evaluative criterion for channel members?

Which of the following is a method for reducing conflict within a channel?

Most retailing is conducted in stores, but non-store retailing is also on the increase. Which of the following is an example of non-store retailing?

The evaluation of channel members has an important bearing on which of the following?

Which of the following is used as an evaluative criterion for channel members?

Increasingly, retailers are opting for a dual online and offline channel, as they realize that as well as having an online presence, _______ stores play an important role in brand awareness and brand building.

Mail order is a form of _______ retailing, whereby catalogues are employed as a promotional vehicle and the purchase transaction is normally conducted via the mail.

Mail order retailing offers many advantages e.g. the prospect of pan-European catalogues, _______ warehousing and processing of cross-border orders.

Which of the following is distributed by means of automatic vending?

Mail order and automatic vending are examples of which of the following?

Which of the following is an advantage of online retailing?

Which of the following is a "category killer"?

Speciality shops have a _______.

Automatic vending offers many advantages and disadvantages to companies. No sales staff are required, although re-stocking, _______ and repair costs can be high.

Why may conflict arise within a channel?

Which of the following retail chains is an example of a "category killer" retailer?

Department stores are under increasing pressure due to which of the following?

Online retailing can take three forms: _______ online retailing, products can be ordered online and then distributed , or the company can develop an online presence.

Discount houses are usually located in which of the following areas?

The power of supermarket chains is illustrated in their ability to extract "Guarantee of Margins" from manufacturers. This refers to a situation where _______.