1. Organizations who facilitate the distribution of products to customers are called which of the following?
A) Transport providers
B) Retailers
C) Channel intermediaries
D) Channel agents
E) Wholesalers
2. Service channels tend to be shorter in length than consumer markets, because of:
A) Intangibility
B) Perishibility
C) Separability
D) Variability
E) For all of the above reasons
3. Which of the following is a disadvantage associated with using an agent in a channel of distribution?
A) Length of channel
B) Costly
C) Lack of control
D) Speed of distribution
E) Lack of market knowledge
4. Which of the following factors influences channel selection?
A) Producer factors
B) Product factors
C) Competitive factors
D) Market factors
E) All of the above factors influence channel selection
5. How may a company control a channel of distribution?
A) Vertical marketing system
B) Franchising
C) An exclusive dealing arrangements
D) Vertical integration
E) All of the above are methods of control
6. Distribution in which a producer uses a limited number of outlets in a geographical area to sell its products is called which of the following?
A) Exhaustive distribution
B) Exclusive distribution
C) Intensive distribution
D) Selective distribution
E) Segmented distribution
7. Exclusive distribution is an extreme form of which of the following?
A) Exhaustive distribution
B) Extensive distribution
C) Intensive distribution
D) Selective distribution
E) Segmented distribution
8. In recent times, the power in marketing channels has transferred to which of the following?
A) The distributor
B) The manufacturer
C) The retailer
D) The wholesaler
E) The consumer
9. Which of the following is strength associated with franchising?
A) Reduces marketing promotional and administration costs
B) Goal conflict does not arise
C) Reduces levels of channel conflict within the channel, compared to other channel systems
D) Combine the strengths of a large sophisticated marketing-oriented organization with the energy and motivation of a locally owned outlet
E) All of the above are strengths associated with franchising
10. When firms purchase retail outlets, and producers control their purchasing, production and marketing activities, this is called which of the following?
A) Administered vertical marketing system
B) Central vertical marketing system
C) Corporate vertical marketing system
D) Contractual vertical marketing system
E) Franchising
11. Which of the following is not a criterion used in the selection of potential channel members?
A) Reputation among customers
B) Amount of leverage needed for control
C) Market, product and customer knowledge
D) Managerial competence
E) Financial standing
12. Which of the following is a "category killer"?
A) These are products which are must have products that need to be stocked by retailers due to consumer demand (e.g. Coca Cola & Kellogg's)
B) These are speciality stores which stock a deep product line to be sold in restricted shop space
C) These are retail outlets with a narrow product focus but sell products at low prices by bulk buying, accepting low margins and selling high volumes
D) These are retail outlets with a wide product focus but with an unusually wide width and depth to that product range
E) These are retail outlets with a narrow product focus but with an unusually wide width and depth to that product range