Question 1

An electronics store buys electronic products from a manufacturer.It reaches out to retailers through promotional activities.However, the store is unable to sell some of the stock, and suffers a loss.Which of the following functions is the electronic store performing as an intermediary?

Accepted Answer

The company is performing a transactional function.Intermediaries perform a transactional function when they buy and sell goods or services.But an intermediary such as a wholesaler also performs the function of sharing risk with the producer when it stocks merchandise in anticipation of sales.

Question 2

Rob stops at the supermarket to purchase a package of Oreo cookies and other items on his grocery list.He is the ultimate buyer in a chain that starts from the producer through intermediaries such as the grocery store.This chain is called the _____.

Accepted Answer

This is an example of a marketing channel.Marketing channels can be compared with a pipeline through which water flows from a source to an endpoint.Marketing channels make possible the flow of goods from a producer, through intermediaries, to a buyer.

Question 3

Which of the following is true about intermediaries?

Accepted Answer

Intermediaries are individuals or firms performing a role in the marketing channel, involved in making a product available.

Question 4

For marketers, the value of the supply chain is

Accepted Answer

A successful supply chain performs the activities needed to get products or services to targeted customers.

Question 5

Brad often buys Nestlé products for his family from Seven Eleven Supermarket.Seven Eleven can be termed as a(n) _____.

Accepted Answer

Seven Eleven is a retailer.A retailer is an intermediary who sells to customers.

Question 6

Intermediaries make selling goods and services more efficient because the intermediaries minimize the number of sales contacts necessary to reach a target market.This highlights the:

Accepted Answer

Few consumers appreciate the value created by intermediaries.However, producers recognize that intermediaries make selling goods and services more efficient because the intermediaries minimize the number of sales contacts necessary to reach a target market.

Question 7

Vertical conflict occurs between intermediaries at the same level in a marketing channel, such as between two or more retailers or two or more wholesalers that handle the same manufacturer's brands.

Accepted Answer

Vertical conflict occurs between different levels of the same channel, for example, between a manufacturer and its retailers or wholesalers, not between entities at the same level.

Question 8

The set of individuals and firms involved in the process of making a product available for use by consumers and business users together make a(n) _____.

Accepted Answer

A marketing channel consists of individuals and firms involved in the process of making a product or service available for use by consumers and business users.

Question 9

Shop 'N' Hop has introduced a convenient payment mode for its customers.Customers can buy merchandise and pay for it at a later date.Which of the following functions is the store performing as an intermediary?

Accepted Answer

Intermediaries perform facilitating functions that make the purchase easier for buyers.Providing credit is a facilitating function.

Question 10

Gathering, sorting, and dispersing products are some of the _____ functions of the intermediary.

Accepted Answer

Gathering, sorting, and dispersing products are some of the logistical functions of the intermediary.

Question 11

Intermediaries performing a transactional function in distribution are engaged in buying, selling, and _____.

Accepted Answer

Transactional functions involve buying, selling, and risk taking.

Question 12

When a channel member bypasses another member and sells directly to consumers, disintermediation occurs.

Accepted Answer

Disintermediation refers to the process in which a channel member bypasses another member and sells directly to the end consumer. This can occur when a manufacturer sells its products directly to customers, bypassing its distributors, wholesalers, or retailers. Disintermediation can have a significant impact on the channel, as the intermediary that is bypassed loses sales and revenue, and may even be cut out of the channel altogether.

Question 13

Het Providers sell goods to other businesses and intermediaries in the marketing channel on credit.Het maintains inventories of goods and is authorized by the manufacturers.Het Providers can be classified as a _____.

Accepted Answer

A distributor is an intermediary who performs a variety of functions, including selling, maintaining inventories, extending credit, and others-usually used for those in business markets.

Question 14

TrendyJeans sells its jeans through a few retail outlets in a specific geographical location.This is an example of exclusive distribution.

Accepted Answer

Exclusive distribution involves limiting the availability of a product to a single retailer or a very limited number of outlets in a particular area. Selling through a few retail outlets is more indicative of selective distribution, not exclusive.

Question 15

Channel choice typically depends upon market, company and product factors.

Accepted Answer

Channel choice is influenced by multiple factors such as the market the company operates in, the company's overall strategy, and the characteristics of the product being sold. Therefore, the statement is true.

Question 16

Logistics is concerned only with the flow of finished goods to the consumer.

Accepted Answer

Logistics encompasses the entire process of planning, implementing, and controlling the movement of goods, including raw materials, work-in-progress, and finished products, throughout the supply chain. It involves activities such as transportation, warehousing, inventory management, and order fulfillment.

Question 17

Manufacturer-sponsored wholesale franchise systems are prominent where a manufacturer licenses dealers to sell its cars subject to various sales and service conditions.

Accepted Answer

The answer of Manufacturer-sponsored wholesale franchise systems are prominent where...

Question 18

A supermarket chain buys fruits and vegetables from different sources, transfers them to its stores, and arranges them for its customers.Which of the following functions is the store performing as an intermediary?

Accepted Answer

The store is performing the logistical function.Gathering, sorting, and dispersing products are some of the logistical functions of the intermediary.

Question 19

Electronic data interchange is the computer-to-computer exchange of business documents from a retailer to a supplier and back.

Accepted Answer

Electronic data interchange (EDI) is indeed the computer-to-computer exchange of business documents such as purchase orders, invoices, and shipment notices between trading partners, typically a retailer and a supplier.

Question 20

Gordon Brothers buys electronic goods from manufacturers, and sells them to stores like E-Land, Freid Electronics, and TechnoTouch Electronics.Gordon Brothers can be classified as a(n) _____.

Accepted Answer

Gordon Brothers can be classified as a wholesaler in this scenario.Wholesaler is any intermediary who sells to other intermediaries, usually to retailers.This term usually applies to intermediaries who deal in consumer goods.

Quiz 10: Marketing Channels and Supply Chain