Question 1

The regrouping activity that involves collecting products from many small producers so that the products can be handled more economically further along in the channel is called

Accepted Answer

Accumulating involves collecting products from many small producers.Accumulating the small products into larger quantities is a way of getting the lowest transporting rate and making it more convenient to handle.

Question 2

Since music,movies,books,and TV programs now exist in digital form,such products

Accepted Answer

Since music,television programs,movies,books,and more now exist in digital form,their distribution costs can be very low,as there is often no physical good to distribute.Even without a physical form,distribution remains an important marketing strategy decision for firms with digital products.

Question 3

To help producers manage discrepancies between what gets produced and what customers need,channel specialists perform ________ activities,such as accumulating,bulk-breaking,sorting,and assorting.

Accepted Answer

Regrouping activities by channel specialists adjust the quantities or assortments of products handled at each level in a channel of distribution.There are four regrouping activities: accumulating,bulk-breaking,sorting,and assorting.

Question 4

Channel specialists use the regrouping activities of sorting and assorting to resolve discrepancies of

Accepted Answer

Specialists adjust assortment discrepancies through the regrouping activities of sorting and assorting.

Question 5

Discrepancy of quantity means

Accepted Answer

Discrepancy of quantity means the difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want.

Question 6

Channel specialists provide value to producers in which of the following circumstances?

Accepted Answer

Specialists exist to resolve discrepancies and separations between producers and customers,such as when producers are located far from their customers and do not know how best to reach them.

Question 7

Discrepancy of assortment means

Accepted Answer

Discrepancy of assortment means the difference between the lines a typical producer makes and the assortment final consumers or users want.

Question 8

Discrepancies of quantity occur because

Accepted Answer

Discrepancy of quantity means the difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want.

Question 9

An indirect channel is probably a better choice than a direct channel if a producer wants to

Accepted Answer

Producers are often located far from their customers and may not know how best to reach and serve them.Specialists develop to adjust these discrepancies of quantity and assortment.

Question 10

Sofia Martin sells Mary Kay cosmetics.She hosts parties,provides product knowledge,and places orders for her customers with Mary Kay.Mary Kay considers Sofia to be an independent dealer of their product.Regarding this situation,which of the following statements is accurate?

Accepted Answer

When companies use non-employee dealers,distributors,or agents to sell products directly to consumers where they live and work,it is not,in a strict technical sense,direct producer-to-consumer distribution because these "salespeople" are not company employees.

Question 11

Direct marketing is

Accepted Answer

Direct marketing involves direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling.

Question 12

Which of the following is among the benefits an intermediary is likely to provide for producer-suppliers?

Accepted Answer

Intermediaries may further reduce a producer's need for working capital by buying the producer's output and carrying it in inventory until it's sold.A wholesaler who knows local customers can help reduce credit risks.Intermediaries may also reduce a producer's need for market research.

Question 13

Which of the following is a function that an intermediary is likely to provide for customers?

Accepted Answer

An intermediary can reduce inventory costs,regroup products,provide delivery,grant credit,and serve customer needs better.

Question 14

Indirect channels are probably a better choice than direct channels when

Accepted Answer

Indirect channels are best when customers often have established buying patterns,a company has limited financial resources,the product is a consumer product,and retailers are conveniently located where consumers shop.

Question 15

Yakima Valley Produce,Inc.buys artichokes from many small farmers,assembles them into larger quantities,and ships in carload quantities to a central market where they are sold to large food processors.This regrouping activity is called

Accepted Answer

Accumulating involves collecting products from many small producers.Accumulating the small products into larger quantities is a way of getting the lowest transporting rate and making it more convenient to handle.

Question 16

When Fresh Produce Wholesaler Inc.buys fruits and vegetables from a variety of different farmers and then takes large bushels and breaks them into smaller package sizes,Fresh Produce is addressing discrepancies of

Accepted Answer

Specialists adjust quantity discrepancies through the regrouping activities of accumulating and bulk-breaking.

Question 17

Which of the following is true of direct distribution?

Accepted Answer

Direct distribution usually requires a significant investment in facilities,people,and information technology.

Question 18

Intermediaries in indirect channels of distribution

Accepted Answer

Even if a producer wants to handle the whole distribution job,sometimes it's simply not possible.In such situations,intermediaries are required.

Question 19

Dividing large quantities into smaller quantities as products get closer to the final market is called

Accepted Answer

Dividing larger quantities into smaller quantities as products get closer to the final market is called bulk-breaking.For example,wholesalers may sell smaller quantities to other wholesalers or directly to retailers.Retailers continue breaking bulk as they sell individual items to their customers.

Question 20

A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time.But a bookstore orders only a few copies of each book,since its customers want to select from a wide variety.This example shows

Accepted Answer

The assortment and quantity of products customers want may be different from the assortment and quantity of products companies produce,leading to discrepancies of assortment and quantity.

Quiz 10: Place and Development of Channel Systems