Question 1

If a firm is consumer-oriented, the channels of distribution for its products should be determined by:

Accepted Answer

A)  the financial strength of the producer. 
B)  consumer buying behavior patterns. 
C)  the volume of business done by its middlemen. 
D)  whether the retailer or the producer controls the channel. 
E)  none of the above.

Question 2

Which of the following is a possible source of channel power for a manufacturer?

Accepted Answer

A)  the ability to provide financial benefits to cooperative channel members 
B)  federal legislation 
C)  scrambled merchandising 
D)  the ability to charge a slotting fee 
E)  stocking products without brand equity

Question 3

Which of the following offers the best example of horizontal channel conflict?

Accepted Answer

A)  JCPenney department store and the producer of Calvin Klein jeans 
B)  a restaurant and a wholesale food distributor 
C)  a funeral home and a florist that both sell burial caskets 
D)  a manufacturer of wood stoves and a retailer of bundles of firewood 
E)  a hog farmer and a sausage manufacturer

Question 4

For which of the following products will its manufacturer most likely choose intensive distribution?

Accepted Answer

A)  vacuum cleaners 
B)  silk ties 
C)  mountain bikes 
D)  soft drinks 
E)  latex paint for painting the inside and outside of homes

Question 5

For which of the following products is a manufacturer very unlikely to use a wholesaler for product distribution?

Accepted Answer

A)  farm equipment 
B)  ergonomically-designed furniture 
C)  strawberry jam 
D)  digital cameras 
E)  made-to-order bridal gowns

Question 6

If Teresa sent her husband Patrick to buy a BellSouth portable telephone, he could find it at a BellSouth store, at an electronics store, and at The Home Depot. He would not find a BellSouth portable phone for sale at department stores even though he might expect to find phones being sold there. From this information, you can surmise that BellSouth uses _____ distribution.

Accepted Answer

A)  exclusive 
B)  intensive 
C)  direct 
D)  selective 
E)  twofold

Question 7

ArvinMeritor is a company that manufactures parts for the motor vehicle industry. It once used 15,000 different suppliers around the world. In 2002, the company announced plans to reduce its number of global suppliers to 1,000 by 2010. The ability to determine which suppliers meet or exceed its performance requirements indicates ArvinMeritor has:

Accepted Answer

A)  channel shrinkage. 
B)  channel power. 
C)  a disintermediation policy. 
D)  oligopolitic control. 
E)  tying contracts with its suppliers.

Question 8

A(n) _____ coordinates distribution activities through the marketing and/or economic power of one channel member or the shared power of two channel members.

Accepted Answer

A)  contractual VMS 
B)  administered VMS 
C)  voluntary chain 
D)  corporate VMS 
E)  franchise system

Question 9

Under a(n) _____ distribution strategy, the supplier agrees to sell its products only to a single wholesaling middleman and/or retailer in a given market.

Accepted Answer

A)  exclusive 
B)  intensive 
C)  direct 
D)  selective 
E)  dual

Question 10

In a(n) _____, a firm at one level of a channel owns the firms at the next level or owns the entire channel.

Accepted Answer

A)  contractual VMS 
B)  administered VMS 
C)  voluntary chain 
D)  corporate VMS 
E)  franchise system

Question 11

_____ 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.

Accepted Answer

A)  Channel empowerment 
B)  Channel conflict 
C)  Distribution discord 
D)  Channel power hogging 
E)  Channel vision

Question 12

When Donna purchased five pounds of tomatoes from her neighbor who gardens, _____ distribution occurred.

Accepted Answer

A)  flexible 
B)  inflexible 
C)  intensive 
D)  direct 
E)  indirect

Question 13

A _____ consists of the set of people and firms involved in the transfer of title to a product as it moves from producer to ultimate consumer or business user.

Accepted Answer

A)  logistics network 
B)  production channel 
C)  distribution channel 
D)  middlemen hierarchy 
E)  marketing program

Question 14

A _____ _____ always includes both the producer and the final customer for the product in its present  form as well as any middlemen such as retailers and wholesalers.

Accepted Answer

The answer of A _____ _____ always includes both the...

Question 15

When the retailer received box of expensive collectible ornaments, it rattled. Upon opening the box, the retailer found pieces of ornaments because the manufacturer had improperly packed the ornaments and not used sufficient padding. The retailer would likely demand a _____ from the manufacturer.

Accepted Answer

A)  chargeback 
B)  functional allowance 
C)  reinforcement allowance 
D)  payback expense 
E)  tangible penalty

Question 16

The manufacturers of Delta brand faucets, Bosch brand appliances, and La-Z-Boy recliners most likely use ______ distribution because they are sold in a number of retail outlets but not in all that might like to carry them.

Accepted Answer

A)  exclusive 
B)  intensive 
C)  direct 
D)  selective 
E)  scrambled

Question 17

Which of the following statements about channel partnerships is True?

Accepted Answer

A)  Developing and sustaining partnerships in a distribution channel requires communication beyond a salesperson and a purchasing agent. 
B)  Potential benefits of a distribution channel partnership are improved quality of goods and services and lower inventory and operating costs. 
C) To facilitate partnerships within channels, many large firms have reduced the number of suppliers with which they do business. 
D)  Many channel partnerships are really part of a broader, more significant trend called relationship marketing. 
E)  All of the above statements about channel partnerships are True

Question 18

Direct distribution is advantageous when the product:

Accepted Answer

A)  is in the medium to low price range. 
B)  has low brand recognition. 
C)  requires installation and technical service. 
D)  is not subject to perishability. 
E)  is mass-produced.

Question 19

Century 21 Real Estate Agency, Target Department Store, and Leisure Time Travel Agency are all examples of agent middlemen.

Accepted Answer

A) True 
 B)False

Question 20

An effective weapon for a retailer to use in its conflict with manufacturers is to:

Accepted Answer

A)  form a retail cooperative. 
B)  stop selling products under its own brand. 
C)  adopt a policy of scrambled merchandising. 
D)  enter into a franchise agreement with the manufacturer. 
E)  bypass the wholesaler.

Exam 14: Channels of Distribution