Question 1

Which of the following is NOT an added utility obtainable from distribution?&#10;A) Place utility.&#10;B) Ownership utility.&#10;C) Scale utility.

Accepted Answer

Scale utility is not a recognized form of utility obtained from distribution. The main forms of utility obtained from distribution include place utility (having a product where consumers want it), time utility (having a product when consumers want it), and ownership utility (the value derived from a customer being able to own a product and use it). Scale utility does not fit into the category of utilities derived from distribution processes.

Question 2

What is meant by time utility?&#10;A) Making goods available at a time which suits the customer's needs.&#10;B) Using time effectively in dealing with distributors.&#10;C) Making goods in the shortest time possible.

Accepted Answer

Time utility refers to the concept of making goods or services available when they are needed or desired by the customer, enhancing the value of those goods or services by aligning with the timing of consumer demand.

Question 3

Which of the following is NOT an influence on distribution channel design?&#10;A) Competitors.&#10;B) Culture.&#10;C) Pricing policy.

Accepted Answer

Pricing policy is a strategy related to how a product is priced, not directly an influence on how distribution channels are designed. Competitors and culture can influence distribution channel decisions.

Question 4

What is an A-type customer?&#10;A) One who is loyal.&#10;B) One who uses a specific distributor.&#10;C) One who is in the top 10% of customers, measured by the volume of goods bought.

Accepted Answer

An A-type customer is typically classified based on the volume of goods bought, often being in the top 10% of customers in terms of purchase volume. This classification helps businesses identify and prioritize their most valuable customers.

Question 5

Which of the following is an economic source of power?&#10;A) Control of resources.&#10;B) Expert power.&#10;C) Reward power.

Accepted Answer

Control of resources is an economic source of power as it involves the ability to influence others through the management and allocation of valuable resources.

Question 6

What is referent power?&#10;A) Power which derives from the ability to refer to a third party.&#10;B) Power which derives from attempts to copy the leader of the group.&#10;C) Power which derives from references to agreements made previously.

Accepted Answer

Referent power is based on followers' identification with, attraction to, or respect for the leader. It often involves a desire to emulate the leader, hence the connection to attempts to copy the leader of the group.

Question 7

What is co-marketing?&#10;A) Collaboration with competitors to secure distribution channels.&#10;B) Collaboration with members of the distribution chain to secure customers.&#10;C) Collaboration with customers to agree on distribution channels.

Accepted Answer

Co-marketing involves partnering with other companies to jointly market complementary products or services, which often includes collaboration with members of the distribution chain to secure and serve customers more effectively.

Question 8

What is a tying contract?&#10;A) One which prevents the distributor from carrying competing goods.&#10;B) One which requires the distributor to carry all the manufacturer's range.&#10;C) One which prevents the distributor from selling outside a specific territory.

Accepted Answer

The answer of What is a tying contract?&#10;A) One which...

Question 9

What is cross-docking?&#10;A) Co-ordinating the arrival of suppliers' and retailers' trucks at the distribution centre.&#10;B) Ensuring that supplies are stored effectively at dockyards.&#10;C) A failure to send supplies to the right docks.

Accepted Answer

Cross-docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with minimal to no handling or storage time. It involves the coordination of incoming and outgoing transportation modes to expedite the transfer of goods.

Question 10

What does ECR stand for?&#10;A) Effective cross-referencing.&#10;B) Efficient customer response.&#10;C) Effective customer relationships.

Accepted Answer

Efficient Customer Response (ECR) is a strategy aimed at improving the partnership between suppliers and retailers to bring products to consumers more efficiently.

Deck 12: Managing Distribution Channels