Question 1

Jake owns and operates a small store that sells relatively few items. His store is open 24 hours a day, and most of his customers live very close to the store. What type of store does Jake own?
A) supermarket
B) specialty store
C) convenience store
D) single-line retail store

Accepted Answer

Jake's store fits the description of a convenience store, which typically sells a limited variety of items and is open 24 hours a day to cater to customers in their immediate vicinity. A supermarket usually offers a wider variety of products, a specialty store focuses on a specific type of product, and a single-line retail store specializes in selling a single type of product.

Question 2

What is the main differentiation between a superstore like Walmart and a grocery store like Safeway?
A) the number of product categories
B) distribution intensity
C) size and selection
D) advertising

Accepted Answer

Superstores like Walmart offer a wider range of product categories beyond groceries, including electronics, clothing, and home goods, whereas grocery stores like Safeway primarily focus on food and related products.

Question 3

Lamps Plus is a retailer of lamps, chandeliers, ceiling fans, and outdoor lighting, with over 30 stores nationwide. Based on this description, Lamps Plus would likely be categorized as which type of retailer?
A) supermarket
B) department store
C) specialty store
D) warehouse club

Accepted Answer

Lamps Plus specializes in a specific category of products (lamps, chandeliers, ceiling fans, and outdoor lighting), making it a specialty store retailer.

Question 4

King Candy Manufacturing produces inexpensive candy bars. The company would probably choose which of the following to reach its target market?
A) exclusive distribution
B) selective distribution
C) intensive distribution
D) selective agents

Accepted Answer

King Candy Manufacturing produces inexpensive candy bars, implying that they are targeting a mass market with high demand for affordable candy bars. Hence, intensive distribution, where the products are made available in as many retail outlets as possible, would be the best choice for the company to reach its target market. This would increase the availability and accessibility of the candy bars, making them more likely to be purchased by the target market. Selective distribution would limit the availability of the candy bars, and exclusive distribution or selective agents would be unsuitable for a product that targets a wide mass market.

Question 5

Which type of distribution involves the use of all available outlets for a product to obtain the widest market exposure?
A) intentional
B) selective
C) patterned
D) intensive

Accepted Answer

Intensive distribution involves the use of all available outlets for a product to obtain the widest market exposure. This strategy is best suited for products that have high demand, are low-priced, and have low switching costs for consumers. By making the product readily available in as many outlets as possible, companies aim to increase their market share and reach more customers.

Question 6

A footwear wholesaler buys truckloads of athletic shoes from the manufacturer and sells smaller quantities to retailers throughout the Canadian Prairies, who then sell the athletic shoes to consumers in their stores. Which benefit of marketing intermediaries does this example illustrate?
A) efficiency and assortment of goods
B) instant sales infrastructure
C) breaking bulk
D) providing valuable marketing information

Accepted Answer

This example illustrates the benefit of breaking bulk, which is the process of dividing large quantities of products into smaller, more manageable units for retailers to purchase and sell to consumers.

Question 7

Ravenscroft, a producer of elite, custom-made, concert-quality grand pianos, would most likely choose which type of distribution for its products?
A) intensive
B) comprehensive
C) exclusive
D) selective

Accepted Answer

Ravenscroft pianos are high-end and custom-made, so an exclusive distribution strategy would be the best fit. This would limit the number of retailers that could sell Ravenscroft pianos and ensure that they are only sold in high-end, prestigious locations. This would maintain the brand's exclusive image and align with their target market's expectations.

Question 8

Convenience goods such as candy, gum, and cigarettes are normally distributed using which type of distribution?
A) intensive
B) patterned
C) intentional
D) selective

Accepted Answer

Convenience goods such as candy, gum, and cigarettes are considered intensive distribution as they are widely available in multiple outlets, including small grocery stores and gas stations.

Question 9

Consumers who strongly feel that the distribution channel should be made as short as possible assume that fewer intermediaries has which of the following results?
A) lower prices for consumers
B) higher costs for manufacturers
C) more product selection
D) higher prices for consumers

Accepted Answer

When there are fewer intermediaries in the distribution channel, the costs associated with their services are eliminated, resulting in lower prices for consumers.

Question 10

Which of the following are self-service, general-merchandise outlets that sell goods at lower than usual prices?
A) discount
B) department
C) specialty
D) shopping

Accepted Answer

Discount stores are self-service, general-merchandise outlets that sell goods at lower than usual prices. Department stores are typically larger and offer wider selections of goods at higher prices, while specialty stores focus on specific types of products and may sell at higher prices. Shopping centers may contain a mix of different types of stores.

Question 11

Which of the following is MOST likely to be considered a supermarket?
A) Hudson's Bay
B) Walmart
C) Circle K
D) Safeway

Accepted Answer

Of the given options, Safeway is the most likely to be considered a supermarket as it is a grocery store chain that sells food and household items in large quantities, typically with a wide variety of options available. Hudson's Bay is a department store, Walmart is a hypermarket that sells a range of products beyond just groceries, and Circle K is a convenience store that typically has a smaller selection of items overall.

Question 12

Loblaws is a retailer that sells a wide variety of fresh, frozen, and canned grocery products, as well as pet food, kitchen and bath supplies, and some personal care products like toothpaste, shampoo, and cosmetics. Based on this information, Loblaws would be categorized as which type of retailer?
A) department store
B) category killer
C) supermarket
D) convenience store

Accepted Answer

Loblaws is a retailer that specializes in selling a variety of fresh, frozen, and canned grocery products, which falls under the definition of a supermarket. Department stores typically sell a wider variety of products, including clothing, furniture, and home goods, while category killers focus on one specific product category such as electronics or sports equipment. Convenience stores typically sell small, ready-to-eat items and basic household supplies.

Question 13

All of the following are services provided by marketing intermediaries EXCEPT which one?
A) buying in large quantities and selling in smaller quantities
B) supplying marketing information
C) producing a wide selection of products
D) facilitating efficiency and assortment of goods

Accepted Answer

Production of a wide selection of products is not a service provided by marketing intermediaries. It is the role of manufacturers to produce a wide selection of products. Marketing intermediaries such as wholesalers and retailers fulfill the other services mentioned - buying in large quantities and selling in smaller quantities, supplying marketing information, and facilitating efficiency and assortment of goods.

Question 14

Doug is a sales representative who works for a wholesaler. He calls on retailers in his territory on a regular basis and gathers their reactions and experiences with the products Doug's firm distributes. He shares that information with the manufacturer of the products so that they can make necessary improvements in the quality or features of the products. What benefit of intermediaries is best illustrated in this example?
A) instant sales infrastructure
B) assumption of credit risks
C) valuable market information
D) efficiency and assortment of goods

Accepted Answer

Doug's role as a sales representative of a wholesaler allows him to gather valuable market information from the retailers in his territory. This information is then shared with the manufacturer to improve the quality or features of the products. This illustrates the benefit of intermediaries in providing market information that can be used for product improvement or development.

Question 15

Which of the following is a large, self-service store that sells primarily food and household products?
A) specialty store
B) discount store
C) supermarket
D) convenience store

Accepted Answer

A supermarket is a large, self-service store that sells primarily food and household products. Specialty stores sell a narrow range of products, discount stores offer lower prices on a wide range of products, and convenience stores are small, quick-stop shops that sell a limited selection of products.

Question 16

What is the main differentiation between a category killer like Home Depot and a small, family-owned hardware store like Home Hardware?
A) pricing
B) distribution intensity
C) size and selection
D) advertising

Accepted Answer

The main differentiation between a category killer like Home Depot and a small, family-owned hardware store like Home Hardware is the size and selection. Category killers like Home Depot have significantly larger stores with a wider selection of products and brands, while small hardware stores like Home Hardware have limited space and selection. Pricing, distribution intensity, and advertising may also differ, but they are not the main differentiation between the two types of stores.

Question 17

Products such as very expensive Rolex wristwatches are typically sold using which type of distribution?
A) exclusive
B) patterned
C) selective
D) intensive

Accepted Answer

Exclusive distribution is used for luxury and premium products, such as expensive watches like Rolex, which are sold through a limited number of retail outlets. This creates an image of exclusivity and high-end status for the brand, which attracts and retains high-end customers.

Question 18

Whirlpool Appliances would most likely use which type of distribution to sell washers, dryers, refrigerators, and other major appliances to consumers?
A) intensive
B) selective
C) exclusive
D) comprehensive

Accepted Answer

Whirlpool Appliances would most likely use selective distribution to sell their products. This is because they want to maintain control over how their products are sold and who sells them, but also want to reach a broad range of consumers through a limited number of retailers or dealers.

Question 19

Moderately priced clothing manufacturers typically prefer which type of distribution?
A) selective
B) exclusive
C) intensive
D) direct

Accepted Answer

Moderately priced clothing manufacturers typically prefer selective distribution because it allows them to control the number and types of retailers that carry their products. This helps them maintain their brand image and ensure that their products are not overexposed or devalued by being sold in too many places. Selective distribution also allows them to maintain closer relationships with their retailers and provide better support and training.

Question 20

What is the largest retailer in Canada based on sales revenues?
A) Shoppers Drug Mart
B) Canadian Tire
C) Loblaws
D) Metro

Accepted Answer

According to the latest available data, Loblaws is the largest retailer in Canada based on sales revenues, with annual revenues of over $52 billion CAD. Shoppers Drug Mart, Canadian Tire, and Metro are also major retailers in Canada, but their sales revenues are lower than Loblaws.

Quiz 14: Managing Distribution and Pricing

Jake owns and operates a small store that sells relatively few items. His store is open 24 hours a day, and most of his customers live very close to the store. What type of store does Jake own?

What is the main differentiation between a superstore like Walmart and a grocery store like Safeway?

Lamps Plus is a retailer of lamps, chandeliers, ceiling fans, and outdoor lighting, with over 30 stores nationwide. Based on this description, Lamps Plus would likely be categorized as which type of retailer?

King Candy Manufacturing produces inexpensive candy bars. The company would probably choose which of the following to reach its target market?

Which type of distribution involves the use of all available outlets for a product to obtain the widest market exposure?

A footwear wholesaler buys truckloads of athletic shoes from the manufacturer and sells smaller quantities to retailers throughout the Canadian Prairies, who then sell the athletic shoes to consumers in their stores. Which benefit of marketing intermediaries does this example illustrate?

Ravenscroft, a producer of elite, custom-made, concert-quality grand pianos, would most likely choose which type of distribution for its products?

Convenience goods such as candy, gum, and cigarettes are normally distributed using which type of distribution?

Consumers who strongly feel that the distribution channel should be made as short as possible assume that fewer intermediaries has which of the following results?

Which of the following are self-service, general-merchandise outlets that sell goods at lower than usual prices?

Which of the following is MOST likely to be considered a supermarket?

Loblaws is a retailer that sells a wide variety of fresh, frozen, and canned grocery products, as well as pet food, kitchen and bath supplies, and some personal care products like toothpaste, shampoo, and cosmetics. Based on this information, Loblaws would be categorized as which type of retailer?

All of the following are services provided by marketing intermediaries EXCEPT which one?

Which of the following is a large, self-service store that sells primarily food and household products?

What is the main differentiation between a category killer like Home Depot and a small, family-owned hardware store like Home Hardware?

Products such as very expensive Rolex wristwatches are typically sold using which type of distribution?

Whirlpool Appliances would most likely use which type of distribution to sell washers, dryers, refrigerators, and other major appliances to consumers?

Moderately priced clothing manufacturers typically prefer which type of distribution?

What is the largest retailer in Canada based on sales revenues?