Question 1

How might the Internet affect the distribution channel of an artisan who makes handmade dolls that had previously been sold only at craft shows?

Accepted Answer

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Question 2

Which of the following is the first step in distribution planning?

Accepted Answer

A)  identify the channel leader 
B)  determine a distribution budget 
C)  develop distribution objectives 
D)  evaluate the internal and external environments 
E)  determine the desired level of distribution intensity

Question 3

Which of the following is NOT a channel intermediary?

Accepted Answer

A)  the supplier of the raw materials used to make glass windows 
B)  the distributor who sells stained glass windows 
C)  the wholesaler who buys the stained glass window from its creator 
D)  the showroom that displays glass windows for customers to see 
E)  the manufacturers' agent who sells the stained glass windows

Question 4

Through ________, a company receives materials it needs to manufacture its products.

Accepted Answer

A)  inbound logistics 
B)  operations 
C)  outbound logistics 
D)  marketing and sales 
E)  service

Question 5

Which of the following is most likely exclusively distributed?

Accepted Answer

A)  BMW automobiles 
B)  Diesel blue jeans 
C)  Bazooka bubble gum 
D)  Prairie Farms yogurt 
E)  Coca-Cola beverages

Question 6

Which of the following is the series of firms or individuals that facilitate(s) the movement of a product from the producer to the final customers?

Accepted Answer

A)  the industrial network 
B)  the retailer chain 
C)  the multilevel network 
D)  the channel of distribution 
E)  the conventional marketing system

Question 7

What are some advantages of a farmer selling strawberries grown on his farm directly to consumers instead of using channel intermediaries?

Accepted Answer

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Question 8

What types of products are exclusively distributed?

Accepted Answer

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Question 9

The supply chain only includes components dealing with the flow of materials internal to the firm.

Accepted Answer

A) True 
 B)False

Question 10

Ed Barney owns a chain of small gift shops. Before buying merchandise to carry in his store, Barney can visit a ________ where he can examine a manufacturer's products before he stocks his stores.

Accepted Answer

A)  sales office 
B)  manufacturer's showroom 
C)  commission merchandise mart 
D)  merchandise brokerage 
E)  manufacturer's office

Question 11

A commission merchant would most likely sell which of the following?

Accepted Answer

A)  agricultural products 
B)  extractive materials such as coal and iron 
C)  convenience goods such as gum and candy 
D)  fresh fruits and vegetables 
E)  real estate

Question 12

To a producer of goods, a greater number of channel levels means ________.

Accepted Answer

A)  less distance between producer and end consumer 
B)  less control 
C)  more creativity 
D)  higher taxes 
E)  fewer distribution systems

Question 13

Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from Chemical, Inc., then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store. Chemical, Inc. took title to the pool chemicals but never actually took possession of them. Chemical, Inc. is an example of a ________.

Accepted Answer

A)  drop shipper 
B)  truck jobber 
C)  rack jobber 
D)  mail-order wholesaler 
E)  cash-and-carry wholesaler

Question 14

Manufacturers' ________, also called manufacturers' representatives, represent a buyer or seller on an ongoing basis.

Accepted Answer

A)  brokers 
B)  franchisers 
C)  agents 
D)  retailers 
E)  intermediaries

Question 15

How might a channel leader stimulate channel cooperation?

Accepted Answer

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Question 16

A brand of variety stores is part of a wholesaler-sponsored voluntary chain. This means these retailers are members of a(n) ________ vertical marketing system (VMS).

Accepted Answer

A)  administered 
B)  conventional 
C)  corporate 
D)  horizontal 
E)  contractual

Question 17

Which of the following is in place when a producer, dealer, wholesaler, retailer, or customer interacts with more than one type of channel?

Accepted Answer

A)  a dual or multiple distribution system 
B)  intermediation 
C)  knowledge management 
D)  disintermediation 
E)  a vertical marketing system

Question 18

What types of products are selectively distributed?

Accepted Answer

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Question 19

Sales branches are independent wholesalers that are allowed to operate only in specific geographical territories.

Accepted Answer