Question 1

Since music,movies,books,and TV programs now exist in digital form,such products:
A) have the same distribution methods as physical products.
B) have lower distribution costs.
C) do not require "intermediaries."
D) do not need distribution.
E) do not face discrepancies of quantity or assortment.

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 2

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 ________.
A) bulk-breaking
B) assorting
C) sorting
D) wholesaling
E) accumulating

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 3

Channel specialists use the regrouping activities of sorting and assorting to resolve ________.
A) discrepancies of time
B) discrepancies of quantity
C) discrepancies of assortment
D) discrepancies of place
E) discrepancies of need

Accepted Answer

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

Question 4

Discrepancy of quantity is
A) the difference between the lines a typical producer makes and the assortment final consumers or users want.
B) adjusting the quantities of products handled at each level in a channel of distribution.
C) collecting products from many small producers.
D) the difference between the quantities of products that it is economical for a producer to make and the quantity final users or consumers normally want.
E) usually seen with producers who specialize by product.

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 5

Intermediaries in indirect channels of distribution:
A) Often perform functions that producers cannot perform efficiently by themselves.
B) Do not provide additional convenience to consumers.
C) Increase the need for producers to make large investments in distribution facilities and personnel.
D) Make it necessary for producers to carry more inventories.
E) None of these alternatives is correct.

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 6

Dividing large quantities into smaller quantities as products get closer to the final market is called ________.
A) accumulating
B) bulk-breaking
C) sorting
D) assorting
E) dividing

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 7

Channel specialists provide value to producers in the following circumstance ________.
A) when producers are located far from their customers and may not know how best to reach them
B) when the assortment and quantity of products customers want matches the assortment and quantity of products companies produce
C) when customers are well informed about their product choices
D) when producers and customers exist in the same location
E) when customers prefer online purchasing

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 8

"Discrepancies of quantity" means ________.
A) there are more producers than consumers
B) there are more consumers than producers
C) the difference between the product lines the typical producer makes and the assortment wanted by consumers or final users
D) consumers want more products than producers can make
E) the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers or users

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

Sony manufactures clock radios in quantities of more than 100,000 in a given time period-but the average consumer wants only one clock radio at a time.This difference is an example of
A) a regrouping activities.
B) a discrepancy of assortment.
C) a discrepancy of quantity.
D) a sorting error.
E) re-assorting.

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 10

"Discrepancies of quantity" means:
A) some consumers buy more products than others.
B) there are more consumers than producers.
C) some manufacturers can produce more products than others.
D) the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers or users.
E) that demand is greater than what a company can supply.

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 11

"Discrepancies of quantity" means:
A) there are more producers than consumers.
B) there are more consumers than producers.
C) the difference between the product lines the typical producer makes and the assortment wanted by consumers or final users.
D) consumers want more products than producers can make.
E) the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers or users.

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 12

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.
A) channel
B) regrouping
C) direct marketing
D) promotion
E) selective distribution

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 13

"Discrepancies of assortment" means ________.
A) some producers can produce more products than others
B) some consumers buy more products than others
C) consumers want more output than producers can make
D) there are more producers than wholesalers
E) the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users

Accepted Answer

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

Question 14

Which of the following best illustrates "discrepancies of quantity"?
A) Michelin makes tires, but most consumers also want a large selection of car-care services.
B) Some stores sell large quantities of Michelin tires, but only small quantities of tires made by other companies.
C) There are over 310 million consumers in the U.S. but only a small portion buy tires in any given year.
D) Four firms make over 90 percent of all the tires sold in the United States.
E) Michelin made millions of tires last year-but most customers bought only one set.

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 15

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 ________.
A) why discrepancies of quantity occur
B) why both discrepancies of quantity and assortment occur
C) neither discrepancies of assortment or quantity
D) why discrepancies of assortment occur
E) multichannel distribution

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.

Question 16

"Discrepancies of quantity" occur because
A) producers seek economies of scale.
B) most intermediaries specialize in selected product lines and buy in large enough quantities to get a good price.
C) adding intermediaries in a channel of distribution increases the cost of getting products to consumers.
D) consumers want the convenience of buying many different types of products at one time.
E) all of these reasons are correct.

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 17

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 ________.
A) discrepancies of time
B) discrepancies of quantity
C) discrepancies of assortment
D) discrepancies of place
E) discrepancies of need

Accepted Answer

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

Question 18

The regrouping activity which involves collecting products from many small producers so that the products can be handled more economically further along in the channel is called ________.
A) sorting
B) wholesaling
C) accumulating
D) assorting
E) bulk-breaking

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 19

Choosing an indirect channel probably will be better than a direct channel if a producer wants to ________.
A) provide special technical service
B) make it easier to do marketing research
C) be more sensitive to coming changes in customer needs and attitudes
D) obtain a very aggressive selling effort
E) adjust large discrepancies of quantity and assortment

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 20

Which of the following is not a benefit that an intermediary is likely to provide for producer-suppliers?
A) reduce credit risk
B) reduce the need to store inventory
C) reduce the need for marketing research
D) reduce the need for working capital
E) All of these are likely benefits provided to 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.

Quiz 12: Place and Development of Channel Systems

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

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 ________.

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

Discrepancy of quantity is

Intermediaries in indirect channels of distribution:

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

Channel specialists provide value to producers in the following circumstance ________.

"Discrepancies of quantity" means ________.

Sony manufactures clock radios in quantities of more than 100,000 in a given time period-but the average consumer wants only one clock radio at a time.This difference is an example of

"Discrepancies of quantity" means:

"Discrepancies of quantity" means:

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.

"Discrepancies of assortment" means ________.

Which of the following best illustrates "discrepancies of quantity"?

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 ________.

"Discrepancies of quantity" occur because

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 ________.

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

Choosing an indirect channel probably will be better than a direct channel if a producer wants to ________.

Which of the following is not a benefit that an intermediary is likely to provide for producer-suppliers?