Question 1

Distribution intensity refers to the number of channel members used at each level of the supply chain.

Accepted Answer

Distribution intensity refers to the number of channel members used at each level of the supply chain, ranging from intensive distribution (high number of intermediaries) to exclusive distribution (low number of intermediaries).

Question 2

Maintaining inventory on behalf of a manufacturer is an example of a facilitating function of intermediaries.

Accepted Answer

The answer of Maintaining inventory on behalf of a manufacturer...

Question 3

An exclusive distribution strategy is designed to get products into as many outlets as possible.

Accepted Answer

An exclusive distribution strategy is designed to limit the number of outlets that can sell a product, with the aim of creating a perception of exclusivity and higher value for the product.

Question 4

Floras Inc.has only eight distributors in China,which helps the firm control the flow of goods in the country.This is an example of a(n)_____ distribution strategy.
A) intensive
B) broad
C) selective
D) mass
E) exclusive

Accepted Answer

Selective distribution strategy involves a limited number of distributors who are carefully selected by the firm in order to maintain control over the flow of goods. This strategy is generally adopted by firms that offer specialized or high-quality products that require extensive consultation, servicing, or support. Since Floras Inc. has only eight distributors in China, it demonstrates a selective distribution strategy.

Question 5

A firm that adopts selective distribution will have only one retailer in a geographic area.

Accepted Answer

A firm that adopts selective distribution will have a limited number of retailers in a geographic area, not just one. The number of retailers chosen will vary based on the size of the market, the level of competition, and other factors.

Question 6

RS Industries is a manufacturer of commercial kitchen equipment.The firm uses personal selling techniques to market its products to small-scale firms.Which of the following target markets is RS Industries pursuing?
A) Business segment 2
B) Consumer segment 1
C) Business segment 1
D) Consumer segment 2
E) Distributor segment

Accepted Answer

The answer of RS Industries is a manufacturer of commercial...

Question 7

Jacob visits Dell's website and places an online order for a personal computer.Jacob belongs to:
A) business segment 1.
B) business segment 2.
C) the sales force.
D) consumer segment 1.
E) consumer segment 2.

Accepted Answer

According to the given information, Jacob is placing an online order for a personal computer, which suggests that he is a consumer. Therefore, the best choice is D, which represents consumer segment 1.

Question 8

One or more intermediaries work with manufacturers to provide goods and services to consumers with indirect distribution channels.

Accepted Answer

This statement is true. Intermediaries such as wholesalers, retailers, and distributors work with manufacturers to move products through indirect distribution channels to reach consumers.

Question 9

Retailers sell products directly to consumers.

Accepted Answer

Retailers are businesses that sell products directly to customers.

Question 10

Wholesalers do not take title to the products that they sell.

Accepted Answer

Wholesalers typically take title to the products that they sell, meaning they own the goods before selling them to retailers or other buyers.

Question 11

Exclusive distribution strategy refers to granting special rights to sell to one or very few retail customers so no other customers can sell a particular brand.

Accepted Answer

This is the definition of exclusive distribution strategy.

Question 12

A flow chart representing multichannel distribution 
-Jake walks into a store that has many cellphone brands and buys a phone for his personal use.Which of the following segments does Jake belong to?
A) Business segment 2
B) Consumer segment 1
C) Business segment 1
D) Consumer segment 2
E) Sales force

Accepted Answer

The answer of A flow chart representing multichannel distribution 
-Jake...

Question 13

Floras's flower distribution in the United States is carried out entirely through Frag Flower,a U.S.flower retailer.Which of the following distribution strategies is the company using in the United States?
A) Intensive distribution strategy
B) Broad distribution strategy
C) Selective distribution strategy
D) Mass distribution strategy
E) Exclusive distribution strategy

Accepted Answer

Floras is using an exclusive distribution strategy where they have partnered with one particular retailer (Frag Flower) in the United States to distribute their flowers exclusively. This means that the flowers are only available through this retailer and not through any other channel.

Question 14

A distribution channel is the set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption.

Accepted Answer

This is the definition of a distribution channel, which is a crucial component of any supply chain.

Question 15

Channel conflict results when supply chain members have similar goals,roles,or rewards.

Accepted Answer

Channel conflict often arises from having differing goals, roles, or rewards among supply chain members, leading to disagreements or competition.

Question 16

Charles Associates is a retail outlet that sells smartphones.The store provides its customers with convenient installment payment options to facilitate the purchase of high-end phones.Which of the following functions is most closely associated with providing installment options?
A) Financing
B) Risk taking
C) Buying
D) Promotion
E) Physical distribution

Accepted Answer

Providing installment options requires financing, as the store is essentially offering customers a loan to pay for the product over time.

Question 17

A chart representing direct and indirect distribution 
-Which of the following companies follow direct distribution?
A) RSS Associates,a firm that sells through exclusive distribution
B) BS Manufacturing,a firm that uses intense distribution
C) Albex,which sells agricultural machinery through agencies
D) Dell,which sells to customers through independent vendors
E) DX Textiles,which sells apparel through company-owned showrooms

Accepted Answer

DX Textiles follows direct distribution as they sell their apparel through company-owned showrooms.

Question 18

A soda manufacturing company sells its products to supermarkets and stores across Canada through its own distribution network.Which of the following is absent in this situation?
A) End consumer
B) Consumer
C) Retailer
D) Wholesaler
E) Manufacturer

Accepted Answer

The company sells directly to supermarkets and stores (retailers), bypassing wholesalers.

Question 19

Drobex Manufacturing does not maintain stock in its warehouse and instead keeps stock in its retail outlets.Which of the following intermediary functions does Drobex Manufacturing expects its intermediaries to perform?
A) Financing
B) Risk taking
C) Buying
D) Promotion
E) Distribution

Accepted Answer

The answer of Drobex Manufacturing does not maintain stock in...

Question 20

Fred owns a small retail showroom.He buys merchandise from a larger dealer that sells to most of the retailers in the area.Fred belongs to:
A) business segment 1.
B) business segment 2.
C) the sales force.
D) consumer segment 1.
E) consumer segment 2.

Accepted Answer

The answer of Fred owns a small retail showroom.He buys...

Quiz 12: Services: The Intangible Product

Distribution intensity refers to the number of channel members used at each level of the supply chain.

Maintaining inventory on behalf of a manufacturer is an example of a facilitating function of intermediaries.

An exclusive distribution strategy is designed to get products into as many outlets as possible.

Floras Inc.has only eight distributors in China,which helps the firm control the flow of goods in the country.This is an example of a(n) _____ distribution strategy.

A firm that adopts selective distribution will have only one retailer in a geographic area.

RS Industries is a manufacturer of commercial kitchen equipment.The firm uses personal selling techniques to market its products to small-scale firms.Which of the following target markets is RS Industries pursuing?

Jacob visits Dell's website and places an online order for a personal computer.Jacob belongs to:

One or more intermediaries work with manufacturers to provide goods and services to consumers with indirect distribution channels.

Retailers sell products directly to consumers.

Wholesalers do not take title to the products that they sell.

Exclusive distribution strategy refers to granting special rights to sell to one or very few retail customers so no other customers can sell a particular brand.

A flow chart representing multichannel distribution -Jake walks into a store that has many cellphone brands and buys a phone for his personal use.Which of the following segments does Jake belong to?

Floras's flower distribution in the United States is carried out entirely through Frag Flower,a U.S.flower retailer.Which of the following distribution strategies is the company using in the United States?

A distribution channel is the set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption.

Channel conflict results when supply chain members have similar goals,roles,or rewards.

Charles Associates is a retail outlet that sells smartphones.The store provides its customers with convenient installment payment options to facilitate the purchase of high-end phones.Which of the following functions is most closely associated with providing installment options?

A chart representing direct and indirect distribution -Which of the following companies follow direct distribution?

A soda manufacturing company sells its products to supermarkets and stores across Canada through its own distribution network.Which of the following is absent in this situation?

Drobex Manufacturing does not maintain stock in its warehouse and instead keeps stock in its retail outlets.Which of the following intermediary functions does Drobex Manufacturing expects its intermediaries to perform?

Fred owns a small retail showroom.He buys merchandise from a larger dealer that sells to most of the retailers in the area.Fred belongs to: