Question 1

________ exists when producers and ultimate consumers deal one-on-one with each other.

Accepted Answer

A direct channel exists when producers and ultimate consumers deal directly with each other without intermediaries.

Question 2

A commonly used indirect channel moves product from producer to retailer to consumer. Companies like Target and The Home Depot buy directly from manufacturers rather than wholesalers. This channel is used when

Accepted Answer

Large retailers like Target and The Home Depot can purchase directly from manufacturers because they have the capacity to buy in large quantities, which allows them to bypass wholesalers and reduce costs.

Question 3

Extending credit to customers is an example of a ________ function performed by channel intermediaries.

Accepted Answer

Extending credit to customers is a facilitating function because it helps ease the purchase process and supports the transaction by providing financial assistance.

Question 4

A direct channel exists when

Accepted Answer

A direct channel exists when producers and end users deal with each other directly without intermediaries.

Question 5

A textile artist can buy fabric, thread, and batting, create an heirloom quilt, and then sell the finished work to customers in a kiosk decorated with some of the quilts produced to entice customers who shop at the local mall. By designing the quilts and kiosk with aesthetic value, the artist creates ________ utility.

Accepted Answer

Form utility is created when a product is designed or altered to add value, such as the aesthetic design of quilts and kiosks by the artist.

Question 6

Marketing channels help create value for consumers through four utilities. These utilities are

Accepted Answer

Marketing channels create value for consumers through time, place, form, and possession utilities by ensuring products are available when and where consumers want them, in the desired form, and facilitating ownership transfer.

Question 7

In a direct channel, all channel functions are performed by

Accepted Answer

Producers are responsible for all channel functions in a direct channel.

Question 8

As the number of intermediaries between a producer and buyer increases, the channel is viewed as increasing in

Accepted Answer

As more intermediaries are added between the producer and the buyer, the distribution channel is considered to increase in "length," referring to the number of levels or steps in the distribution process.

Question 9

The Schwan's Company of Marshall, Minnesota, the largest direct-to-home provider of foods in the United States, uses route sales representatives who sell to consumers from refrigerated trucks. This particular method of distribution is referred to as

Accepted Answer

A direct channel involves the company selling its products directly to consumers without intermediaries, which is what Schwan's does by using route sales representatives to sell directly from refrigerated trucks to consumers.

Question 10

Having a product or service where consumers want it is ________ utility.

Accepted Answer

The answer of Having a product or service where consumers...

Question 11

Inspecting, testing, or judging products and assigning them quality grades is an example of a ________ function performed by channel intermediaries.

Accepted Answer

Facilitating functions performed by channel intermediaries include activities like inspecting, testing, or judging products and assigning them quality grades. These activities help in making the product more marketable and easier to sell.

Question 12

An example of ________ utility involves intermediaries shipping goods directly to buyers of a product.

Accepted Answer

The answer of An example of ________ utility involves intermediaries...

Question 13

Though uninformed consumers focus largely on the extra markups from channel members, the four utilities each provide opportunities for

Accepted Answer

Channel intermediaries create value by providing utilities such as time, place, form, and possession, which enhance the overall value of the product or service to the consumer.

Question 14

A snack vending machine located in a university building creates both ________ utility.

Accepted Answer

Place utility is created when a product is made available to consumers in a convenient location. Time utility is created when a product is made available to consumers when they need it. A snack vending machine located in a university building creates both place and time utility because it makes snacks available to students in a convenient location and at a time when they need them.

Question 15

When Dell Computer sells made-to-order PCs to customers online via its website, it is an example of which type of marketing channel?

Accepted Answer

Dell selling made-to-order PCs directly to customers through its website is an example of a direct channel, as there are no intermediaries involved in the transaction.

Question 16

Enhancing a product or service to make it more appealing to buyers is ________ utility.

Accepted Answer

Form utility refers to the enhancement of a product or service to make it more appealing or useful to consumers, often through changes in design, features, or packaging.

Question 17

Members of a high-school glee club sold home-baked cupcakes at school to raise money. The students selling their cupcakes to classmates would be an example of

Accepted Answer

A direct channel of distribution involves the producer selling directly to the consumer without using any intermediaries. In this case, the students are selling the cupcakes directly to their classmates, so it is an example of a direct channel of distribution.

Question 18

Indirect channels for consumer products

Accepted Answer

Indirect channels for consumer products involve intermediaries between the producer and consumer, performing various channel functions such as distribution, sales, and customer service.

Question 19

Southern pine lumber is visually inspected and placed into categories like "Select Structural," "No. 1," and "No. 2." These categories reflect characteristics of the wood and are related to its suggested uses. This rating system is most closely related to which facilitating function activity performed by marketing intermediaries?

Accepted Answer

Grading involves categorizing products based on quality and characteristics, which aligns with the process of visually inspecting and categorizing lumber.

Question 20

A channel that includes intermediaries that are between the producer and consumers and perform numerous channel functions is referred to as

Accepted Answer

An indirect channel involves intermediaries between the producer and consumers, performing various channel functions.

Quiz 15: Managing Marketing Channels and Supply Chains