Exam 11: Place and Development of Channel Systems

Sony manufactures clock radios in quantities of more than 100,000 in a given time period -- but the average consumer wants only one clock radio at a time. This difference is an example of

Josh Adams runs a large cattle farm in Texas. In order to take advantage of higher prices for beef in Europe compared to the United States, he has started selling cattle overseas by using an agent wholesaler who specializes in finding European customers for U. S. firms. He ships the cattle to Europe by water transport. Josh is involved in:

A channel of distribution:

Any contractual channel system--by definition--is also an administered channel system.

Consumers usually want to shop for milk, meat, vegetables, and fruits at one convenient location. Grocery stores that offer all of these products help to alleviate this ___________.

Which of the following is a function that an intermediary is likely to provide for customers?

Traditional channel systems:

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.

A disadvantage of direct-to-customer channels is that

The regrouping activity which involves collecting products from many small producers so that the products can be handled more economically further along in the channel is called:

A producer who wants to reach certain customers may have no choice about which wholesaler to use.

Which of the following is NOT a benefit that an intermediary is likely to provide for producer-suppliers?

Which of the following is typically the lowest risk approach for moving into international markets?

Administered and contractual channel systems are vertical marketing systems which depend on informal agreements--or contracts between channel members--to cooperate.

"Exclusive distribution" means selling through:

Selective distribution:

In "traditional channel systems"

When Amazon.com collects products from many small producers, the company is involved in _____.

Discrepancies of quantity occur because:

A common "product-market commitment" in a channel system helps to eliminate: