Exam 14: Channels of Distribution

The only place in the entire United States where you can buy one-of-a-kind decorative art pieces created by Lord and Lockridge is at the Birmingham Frame and Art Company. This is an extreme example of _____ distribution.

What is the final decision a producer must make in order to design a suitable distribution channel for its product?

Toys "R" Us and Wal-Mart can experience _____ conflict, but a toy manufacturer and a toy distribution center cannot.

Clothing manufacturer Tommy Hilfiger, a brand sold at Wal-Mart stores, sued the giant retailer for selling counterfeit Hilfiger clothing. This suit produced:

When Gourmet Concepts, a company that makes and sells specialty desserts to restaurant chains, began operations, it had to design its distribution strategy very carefully. Once its management had decided exactly what role distribution would play in its overall marketing program, it was next necessary to:

When is a manufacturer most likely to bypass middlemen as much as possible and use a short channel of distribution?

In 1989, Seeds of Change started with a simple mission: "To preserve biodiversity and promote sustainable, organic agriculture." With its ever-expanding line of Certified Organic Foods, it has stayed True to its mission. It uses only the freshest, select, organic ingredients. All are great tasting and healthy and just as nature intended. Seeds of Change also seeks out unique ingredients such as quinoa, an ancient and little-known South American grain that is high in protein and a valuable source of many amino acids. By using quinoa, Seeds of Change is helping to preserve a nutritious food that might have otherwise been lost for future generations. In close collaboration with an extensive network of certified organic seed growers and plant breeders, Seeds of Change cultivates, studies, refines, and expands the products it provides to consumers. -To get its products on the shelves of national supermarket chains, Seeds of Change most likely had to pay a:

Vertical channel conflict occurs when:

Which of the following statements about slotting fees is True?

Manufacturers of business goods such as newspaper printing presses, platforms for oil wells, and smelting furnaces would be likely to use a direct distribution channel.

Which of the following is LEAST likely to have a significant influence on the selection of distribution channels?

The slotting fee trend occurs most commonly with new products that are trying to get shelf space in supermarkets.

If the manufacturer of Hot & Spicy Pickled Asparagus is deciding whether to limit product sales to local Kroger supermarkets or sell the snack at every appropriate outlet, she is involved in:

The _____ for Uncle Donald's Pecan Pralines includes the company that manufactures the candy, the wholesaler who buys that brand of candy and many other brands, and the convenience stores where the ultimate consumer can purchase the candy.

Casket Royale sells caskets to funeral homes and to florists who also want to put together a burial package for their customers. Casket Royale uses:

When a manufacturer sells a product to a middleman only under the condition that the middleman also buys another (possibly unwanted) product from the manufacturer, the two companies have entered into a _____ _____.

_____ _____ actually take title to the products they help to market.

______ _____ exists when one channel member perceives another channel member to be acting in a way that prevents the first member from achieving its distribution objectives.

When Hewlett-Packard began selling its computers to consumers, the only store that carried its line of computer products was Circuit City. What kind of distribution strategy was Hewlett-Packard using?

Because they are perishable, orchids, azalea bushes, and fresh pineapples should not be distributed through a channel with many levels of middlemen.