Question 1

The number of intermediaries or levels in the channel of distribution is referred to as

Accepted Answer

Channel length refers to the number of intermediaries or levels in the distribution channel between the producer and the consumer.

Question 2

The number of intermediaries at any one level in the channel of distribution is referred to as

Accepted Answer

Channel width refers to the number of intermediaries at any one level in the channel of distribution.

Question 3

A type of distribution that employs different kinds of intermediaries at the same level in the channel of distribution is called

Accepted Answer

Multi-channeling involves using different types of intermediaries at the same level in the distribution channel.

Question 4

When a(n) ________ distribution strategy is used, the product is available in only a few outlets in a particular market.

Accepted Answer

A selective distribution strategy involves making a product available in only a few selected outlets within a particular market, allowing for more control over the brand and customer experience.

Question 5

Software companies sell their products online. They use a(n) ________ channel of distribution.

Accepted Answer

Software companies selling their products online use a direct channel of distribution, as they sell directly to the consumer without intermediaries.

Question 6

Xerox and IBM market their products to industrial, institutional, professional, and dealer network markets. Because of the variation in intermediaries at the same channel level, these firms use

Accepted Answer

Xerox and IBM use multi-channelling to reach different market segments through various intermediaries at the same channel level, allowing them to effectively target industrial, institutional, professional, and dealer network markets.

Question 7

Which of the following represents the most direct distribution channel?

Accepted Answer

In option A, the consumer buys directly from a corporate-owned retailer, which is part of the manufacturer, making it the most direct channel.

Question 8

Which of the following is a true statement about the channel of distribution selection process?

Accepted Answer

Large companies often have the resources and capability to employ their own sales force, allowing them to manage distribution more directly and efficiently.

Question 9

Intensive distribution is most likely to be used by a manufacturer of

Accepted Answer

Intensive distribution is used for products that are widely available and purchased frequently, such as household cleaning products, to maximize their availability and convenience for consumers.

Question 10

In the marketing of convenience goods, most manufacturers will use ________ distribution

Accepted Answer

Convenience goods are typically low-cost, frequently purchased items that consumers want to buy with minimal effort. Intensive distribution ensures these products are widely available in as many outlets as possible to maximize consumer access and convenience.

Question 11

Selective distribution is suitable for which of the following?

Accepted Answer

Selective distribution is suitable for products like photocopiers for large companies, where the product requires a certain level of expertise and service, and is not sold everywhere like mass-market products.

Question 12

The manufacturer of a high-priced specialty good like a baby grand piano that offers the purchaser a unique value is likely to use ________ distribution system.

Accepted Answer

An exclusive distribution system is often used for high-priced specialty goods like baby grand pianos to maintain a high level of control over the brand image and customer experience, often involving a limited number of retailers.

Question 13

In Calgary, Alberta, there is only one retailer that sells a certain brand of French perfume. In this town, the manufacturer is using ________ distribution.

Accepted Answer

Exclusive distribution is when a manufacturer grants a single retailer or distributor the exclusive rights to sell a product in a particular area.

Question 14

At one time, Kingston, Ontario, had only three Tim Hortons outlets to serve the 115,000 people of the community. Now there are 15 outlets strategically located to serve the same population. This is a good example of

Accepted Answer

Intensive distribution refers to a strategy where a product is made available at as many outlets as possible. The increase from three to fifteen Tim Hortons outlets in Kingston, Ontario, exemplifies this strategy by increasing the number of locations to maximize availability to the population.

Question 15

Which of the following products is likely to be marketed through the shortest distribution channel?

Accepted Answer

The answer of Which of the following products is likely...

Question 16

What gives retailers the balance of power in channel relationships?

Accepted Answer

When only a few retailers control the vast majority of sales, they have significant leverage over manufacturers and distributors, giving them the balance of power in channel relationships.

Question 17

Conflict that stems from competition between similar organizations at the same level in the channel of distribution is called

Accepted Answer

Horizontal conflict occurs between organizations at the same level in the distribution channel, such as between two retailers or two wholesalers.

Question 18

________ occurs when a channel member feels that another member at a different level of the channel is engaging in inappropriate conduct.

Accepted Answer

Vertical conflict occurs when a channel member feels that another member at a different level of the channel is engaging in inappropriate conduct.

Question 19

The Bay and Sears are selling the same make of kitchen knives. If The Bay constantly has the lower price, Sears may begin to question whether or not The Bay is getting a cost break from the manufacturer. This is an example of

Accepted Answer

This situation is an example of horizontal conflict, which occurs between businesses at the same level in the distribution channel, such as two retailers selling the same product.

Question 20

Which of the following is an example of horizontal conflict in distribution channels?

Accepted Answer

Horizontal conflict occurs between intermediaries at the same level in a distribution channel, such as two department stores competing for promotional allowances from the manufacturer.

Quiz 12: Distribution and Supply Chain Management