Distribution Channels In Marketing! Trivia Questions
.
Questions and Answers
- 1.
The goal of channels of distribution is to move products from producers to
- A.
Intermediaries
- B.
Industrial users
- C.
Final consumers
- D.
Middlemen
Correct Answer
C. Final consumersExplanation
The goal of channels of distribution is to move products from producers to final consumers. This means that the products are intended to reach the end users or individuals who will actually use or consume the products. Intermediaries and middlemen may be involved in the distribution process, but the ultimate aim is to ensure that the products reach the final consumers.Rate this question:
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- 2.
Channels of Distribution benefit consumers by
- A.
Making a variety of products available to them
- B.
Lowering the prices of all consumer products
- C.
Raising quality of all consumer products
- D.
Increasing profits for business
Correct Answer
A. Making a variety of products available to themExplanation
Channels of distribution benefit consumers by making a variety of products available to them. This is because channels of distribution involve the process of getting products from manufacturers to consumers, which includes activities such as transportation, warehousing, and retailing. Through these channels, consumers have access to a wide range of products from different manufacturers and suppliers. This allows them to choose from various options and find products that best meet their needs and preferences.Rate this question:
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- 3.
Channels of Distribution benefit businesses by
- A.
Lowering the prices of all industrial goods
- B.
Getting their products to consumers more efficiently
- C.
Raising their profits each year
- D.
Allowing them to avoid all channel tasks
Correct Answer
B. Getting their products to consumers more efficientlyExplanation
Channels of distribution benefit businesses by getting their products to consumers more efficiently. This means that businesses can reach their target audience in a faster and more effective way, resulting in increased sales and customer satisfaction. Efficient distribution channels ensure that products are available at the right place and time, reducing delays and improving overall customer experience. By reaching consumers efficiently, businesses can also reduce costs associated with storage and transportation, ultimately leading to higher profits.Rate this question:
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- 4.
Providing marketing information is an important channel activity. Businesses rely on marketing information to determine
- A.
How intermediaries are performing
- B.
How much to charge for their products
- C.
What to name their products
- D.
Their target markets needs and wants
Correct Answer
D. Their target markets needs and wantsExplanation
Businesses rely on marketing information to determine their target markets' needs and wants. This information helps businesses understand what their customers are looking for, what problems they need solutions for, and what features or benefits they value in a product or service. By understanding their target markets' needs and wants, businesses can tailor their marketing strategies, product development, pricing, and branding efforts to effectively meet customer demands and stay competitive in the market.Rate this question:
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- 5.
The costs of promoting products are often
- A.
Avoidable in certain channels
- B.
Very inexpensive, especially for new products
- C.
Paid for entirely by one channel member
- D.
Shared by channel members
Correct Answer
D. Shared by channel membersExplanation
The costs of promoting products are often shared by channel members. This means that multiple entities within the distribution channel, such as manufacturers, wholesalers, and retailers, contribute to the expenses associated with promoting products. By sharing the costs, the financial burden is distributed among the different channel members, allowing for a more equitable distribution of expenses and potentially reducing the individual costs for each member. This cooperative approach to promoting products can help to maximize the reach and effectiveness of promotional efforts while minimizing the financial strain on any one member.Rate this question:
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- 6.
Retailers perform an important channel activity by negotiating with consumers on issues such as
- A.
Risk taking
- B.
Delivery
- C.
Promotion
- D.
Manufacturing
Correct Answer
B. DeliveryExplanation
Retailers perform an important channel activity by negotiating with consumers on issues such as delivery. This means that retailers are responsible for ensuring that products are delivered to the consumers in a timely manner. They negotiate with consumers to determine the most convenient and efficient delivery methods, such as home delivery or in-store pickup. By taking on this responsibility, retailers enhance the overall customer experience and satisfaction, as timely delivery is a crucial aspect of the purchasing process.Rate this question:
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- 7.
A wholesaler breaks down a large shipment of a product and sells portions of it to several retailers. The wholesaler is reducing a discrepancy of
- A.
Quantity
- B.
Assortment
- C.
Installation
- D.
Promotion
Correct Answer
A. QuantityExplanation
The wholesaler is reducing a discrepancy of quantity by breaking down the large shipment of a product and selling portions of it to several retailers. This means that the wholesaler is ensuring that the quantity of the product is distributed correctly among the retailers, thus reducing any differences or inconsistencies in the quantity of the product available to each retailer.Rate this question:
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- 8.
A retailer buys a variety of toys from a number of different producers and makes them all available for sale in the same place. The retailer is reducing a discrepancy of
- A.
Quantity
- B.
Assortment
- C.
Installation
- D.
Promotion
Correct Answer
B. AssortmentExplanation
The correct answer is assortment. The retailer is reducing a discrepancy in the variety of toys available for sale. By buying toys from different producers and making them all available in the same place, the retailer ensures a wide assortment of toys for customers to choose from. This helps to meet the diverse preferences and demands of the customers, ultimately increasing the chances of making a sale.Rate this question:
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- 9.
Channels of Distribution allow channel members to share
- A.
Profits
- B.
Equipment
- C.
Risk
- D.
Employees
Correct Answer
C. RiskExplanation
Channels of Distribution allow channel members to share risk. This means that by collaborating and working together in the distribution process, channel members can distribute and mitigate the potential risks associated with the production, marketing, and selling of products or services. This can include risks such as fluctuations in demand, changes in market conditions, or unforeseen events that may impact the supply chain. By sharing the risk, channel members can collectively strategize and implement measures to minimize potential losses and ensure the overall success of the distribution channel.Rate this question:
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- 10.
Channel members add value to a product by
- A.
Performing certain channel activities expertly
- B.
Making the product more costly
- C.
Making the product difficult for consumers to find
- D.
Pursuing individual goals
Correct Answer
A. Performing certain channel activities expertlyExplanation
Channel members add value to a product by performing certain channel activities expertly. This means that they have the knowledge, skills, and experience to effectively carry out tasks such as distribution, promotion, and customer service. By doing so, they ensure that the product reaches the right target market, is properly marketed and advertised, and meets customer expectations. This expertise ultimately enhances the overall value of the product and improves the customer experience.Rate this question:
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- 11.
Which of the following is NOT a condition that must exist for channels to be effective
- A.
They must be properly managed
- B.
They must have at least five members
- C.
Channel members must share common goals
- D.
Channel members must share tasks appropriately
Correct Answer
B. They must have at least five membersExplanation
The number of members in a channel is not a condition that must exist for channels to be effective. The effectiveness of a channel depends on factors such as proper management, shared common goals among channel members, and appropriate task sharing. The number of members does not determine the effectiveness of a channel; it can vary depending on the specific requirements and goals of the channel.Rate this question:
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- 12.
Channel members should share an equal commitment to the products
- A.
Price
- B.
Name
- C.
Packaging
- D.
Quality
Correct Answer
D. QualityExplanation
Channel members should share an equal commitment to the quality of the products. This means that all members involved in the distribution channel, such as manufacturers, wholesalers, and retailers, should prioritize and maintain high-quality standards for the products being sold. By ensuring that all channel members are dedicated to delivering products of excellent quality, the overall reputation and customer satisfaction of the brand can be enhanced. This commitment to quality helps build trust among channel members and ultimately leads to a successful and efficient distribution channel.Rate this question:
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- 13.
The first decision that marketers must make when managing channels is
- A.
Setting channel objectives
- B.
Determining distribution patterns
- C.
Selecting channel members
- D.
Determining channel responsibilities
Correct Answer
A. Setting channel objectivesExplanation
When managing channels, the first decision that marketers must make is setting channel objectives. This involves determining the goals and targets that the channel should achieve, such as increasing sales, expanding market reach, or improving customer satisfaction. By setting clear objectives, marketers can align the channel strategy with overall business objectives and ensure that all channel activities are focused towards achieving these goals. This decision lays the foundation for other channel management activities, such as determining distribution patterns, selecting channel members, and assigning channel responsibilities.Rate this question:
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- 14.
Producers who eliminate all middlemen in the channel are said to be using ______ distribution
- A.
Consumer
- B.
Industrial
- C.
Direct
- D.
Indirect
Correct Answer
C. DirectExplanation
Producers who eliminate all middlemen in the channel are said to be using direct distribution. This means that the producers sell their products directly to the end consumers without involving any intermediaries. By bypassing middlemen, producers have more control over the distribution process, can establish direct relationships with their customers, and potentially reduce costs. Direct distribution allows for a more efficient and streamlined supply chain, enabling producers to have a better understanding of their customers' needs and preferences.Rate this question:
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- 15.
Marketers determine distribution intensity so they can achieve
- A.
Complete market coverage
- B.
Ideal market exposure
- C.
Perfect market balance
- D.
Total market saturation
Correct Answer
B. Ideal market exposureExplanation
Marketers determine distribution intensity to achieve ideal market exposure. This means they aim to reach the right level of product availability and visibility in the market, ensuring that their target customers can easily find and access their products. By achieving ideal market exposure, marketers can maximize their brand's reach and potential sales, ultimately leading to greater market share and profitability.Rate this question:
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- 16.
When marketers are trying to reach the greatest number of consumers possible, they use a __________ distribution pattern
- A.
Selective
- B.
Exclusive
- C.
Inclusive
- D.
Intensive
Correct Answer
D. IntensiveExplanation
When marketers are trying to reach the greatest number of consumers possible, they use an intensive distribution pattern. This strategy involves making the product available in as many outlets as possible, such as supermarkets, convenience stores, and online platforms. By having widespread distribution, marketers aim to maximize the product's availability and accessibility to a wide range of consumers, increasing the chances of reaching a larger market share. This approach is particularly effective for products with high demand and low price points.Rate this question:
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- 17.
Which of the following products would likely use an exclusive distribution pattern
- A.
A large piece of farm machinery
- B.
A gallon of milk
- C.
A home decorating magazine
- D.
A silk necktie
Correct Answer
A. A large piece of farm machineryExplanation
A large piece of farm machinery would likely use an exclusive distribution pattern because it is a specialized and expensive product that requires specific expertise for installation and maintenance. By using exclusive distribution, the manufacturer can control the distribution channels and ensure that the product is only available through authorized dealers or directly from the company. This allows for better customer support, technical assistance, and after-sales service, which are crucial for such complex and high-value products. Additionally, exclusive distribution helps maintain the brand's reputation and prevents unauthorized reselling or counterfeit products in the market.Rate this question:
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- 18.
The total number of members in a channel is called
- A.
Distribution intensity
- B.
Distribution pattern
- C.
Channel length
- D.
Channel width
Correct Answer
C. Channel lengthExplanation
The term "channel length" refers to the total number of members in a channel. This means it represents the size or extent of the channel in terms of the number of individuals or entities that are part of it. The other options, such as distribution intensity, distribution pattern, and channel width, do not accurately describe the concept of the total number of members in a channel.Rate this question:
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- 19.
A channel task should be performed by the channel member who
- A.
Has the least money
- B.
Has the most money
- C.
Performs it best
- D.
Wants to perform it
Correct Answer
C. Performs it bestExplanation
The correct answer is "performs it best." This is because a channel task should be carried out by the member who has the highest level of competence or skill in performing that specific task. By assigning the task to the member who performs it best, the channel can ensure that the task is executed efficiently and effectively, leading to better outcomes for the channel as a whole.Rate this question:
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- 20.
A producer feels that a retailer is not marketing its product to final consumers aggressively enough. This is an example of
- A.
Charge-backs
- B.
Vertical conflict
- C.
Horizontal conflict
- D.
Sanctions
Correct Answer
B. Vertical conflictExplanation
Vertical conflict refers to a disagreement or tension between different levels of the distribution channel, such as a producer and a retailer. In this scenario, the producer believes that the retailer is not actively promoting or advertising the product to the end consumers, which can lead to a conflict of interest. The producer wants the retailer to market the product more aggressively to increase sales, while the retailer may have different priorities or strategies in place. This misalignment of goals and actions between the producer and retailer represents a vertical conflict.Rate this question:
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- 21.
Which of the following is a benefit of channels of distribution
- A.
We can more easily obtain products from all over the world
- B.
Producers must spend more money
- C.
Retailers must spend more money
- D.
We spend more time looking for products we want
Correct Answer
A. We can more easily obtain products from all over the worldExplanation
Channels of distribution allow us to more easily obtain products from all over the world. This is because channels of distribution involve the process of getting products from the producer to the consumer, and these channels often involve multiple intermediaries such as wholesalers and retailers. These intermediaries help in sourcing products from different parts of the world and making them available to consumers in a convenient manner. Therefore, having channels of distribution in place facilitates access to a wider variety of products from different geographical locations.Rate this question:
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- 22.
Where does a channel of distribution begin
- A.
With the industrial user
- B.
With the ultimate consumer
- C.
With the producer
- D.
With the intermediary
Correct Answer
C. With the producerExplanation
A channel of distribution begins with the producer because it is the producer who creates the product or service and initiates the process of getting it to the market. The producer is responsible for manufacturing, packaging, and promoting the product, and then making it available to intermediaries or directly to the ultimate consumer. Without the producer, there would be no product or service to distribute, making them the starting point of the distribution channel.Rate this question:
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- 23.
Which of the following is an example of an ultimate consumer?
- A.
A teenager buying his/her first car
- B.
A farmer buying seeds for crops that will be sold at market
- C.
A manager buying office supplies
- D.
A restaurant owner buying a new oven for the restaurants kitchen
Correct Answer
A. A teenager buying his/her first carExplanation
An ultimate consumer refers to the end user who purchases a product or service for personal use. In this case, a teenager buying his/her first car is an example of an ultimate consumer as they are purchasing the car for their personal use and not for any business or resale purposes.Rate this question:
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- 24.
Which of the following is an example of an industrial user?
- A.
A parent buying a picture frame for his/her desk
- B.
A hairstylist buying new scissors to perform haircuts
- C.
A family buying a new home computer
- D.
A teacher buying a book to read on vacation
Correct Answer
B. A hairstylist buying new scissors to perform haircutsExplanation
The correct answer is a hairstylist buying new scissors to perform haircuts. This is an example of an industrial user because the hairstylist is purchasing a tool for their profession. Industrial users are individuals or businesses that buy products or services to use in their own business operations or production processes. In this case, the scissors are essential tools for the hairstylist to perform their job, making them an industrial user.Rate this question:
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- 25.
Quality Distributors buys electrical equipment and supplies from ABC Electric and sells them to local electrial contractors. Quality Distributors is an example of?
- A.
Retailer
- B.
Intermediary
- C.
Agent
- D.
Producer
Correct Answer
B. IntermediaryExplanation
Quality Distributors acts as a middleman between ABC Electric and local electrical contractors, buying goods from the producer (ABC Electric) and selling them to the end consumers (electrical contractors). Therefore, it serves as an intermediary in the distribution channel, facilitating the flow of goods from the producer to the final consumers.Rate this question:
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- 26.
Wal-Mart, Domino's pizza, and Avis Rent-A-Car are examples of?
- A.
Agents
- B.
Industrial distributors
- C.
Retailers
- D.
Wholesalers
Correct Answer
C. RetailersExplanation
Wal-Mart, Domino's pizza, and Avis Rent-A-Car are examples of retailers because they directly sell products or services to consumers. These companies operate stores or outlets where customers can purchase goods or rent vehicles. They do not act as intermediaries or distributors, but rather engage in direct sales to end consumers.Rate this question:
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- 27.
Top Notch Wheels buys mountain bikes from The Great Colorado Mountain Bike Company and sells them to bike shops. Top Notch Wheels is an example of an?
- A.
Agent
- B.
Retailer
- C.
Producer
- D.
Wholesaler
Correct Answer
D. WholesalerExplanation
Top Notch Wheels acts as a middleman between The Great Colorado Mountain Bike Company and bike shops, buying mountain bikes in bulk from the manufacturer and selling them to retailers. As a wholesaler, their primary role is to distribute goods to retailers in large quantities, allowing for economies of scale and providing a convenient one-stop-shop for retailers to source their inventory.Rate this question:
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- 28.
An advantage for producers in using the producer to wholesaler to retailer to consumer distribution channel is that?
- A.
Wholesalers do not take title to goods
- B.
It enables them to control channel activities
- C.
Wholesalers usually buy in large quantities
- D.
It enables them to reach large retailers directly
Correct Answer
C. Wholesalers usually buy in large quantitiesExplanation
An advantage for producers in using the producer to wholesaler to retailer to consumer distribution channel is that wholesalers usually buy in large quantities. This means that producers can sell their products in bulk to wholesalers, which can result in cost savings and increased efficiency in the supply chain. Additionally, selling in large quantities to wholesalers allows producers to reach a wider market and distribute their products more effectively.Rate this question:
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- 29.
Which indirect channel of distribution is used to reach large retailers when the producer does not want responsibility for the selling activities?
- A.
Producer to retailer to consumer
- B.
Producer to wholesaler to retailer to consumer
- C.
Producer to consumer
- D.
Producer to agent to retailer to consumers
Correct Answer
D. Producer to agent to retailer to consumersExplanation
The correct answer is "producer to agent to retailer to consumers". In this distribution channel, the producer utilizes an agent who acts as an intermediary between the producer and the retailer. The agent takes on the responsibility of selling the products to the retailer, allowing the producer to avoid direct involvement in the selling activities. This indirect channel is commonly used when the producer wants to focus on production and manufacturing rather than sales and distribution.Rate this question:
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- 30.
What is the most common channel of distribution for large industrial goods?
- A.
Producer to retailer to consumer
- B.
Producer to wholesaler to retailer to consumer
- C.
Producer to agent to industrial distributor to use
- D.
Producer to industrial user
Correct Answer
D. Producer to industrial userExplanation
The most common channel of distribution for large industrial goods is from the producer directly to the industrial user. This is because large industrial goods typically require specialized knowledge and expertise to handle and install, and the producer is best equipped to provide these services directly to the industrial user. By bypassing intermediaries such as retailers, wholesalers, and agents, the producer can ensure a more efficient and cost-effective distribution process for these goods.Rate this question:
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- 31.
What distribution channel is used for high-priced industrial goods when the producer does not have its own sale force?
- A.
Producer to agent to user
- B.
Producer to industrial distributor to user
- C.
Producer to industrial user
- D.
Producer to agent to industrial distributor to user
Correct Answer
A. Producer to agent to userExplanation
When a producer does not have its own sales force, it can use the distribution channel of producer to agent to user. In this channel, the producer sells the high-priced industrial goods to an agent who acts as an intermediary between the producer and the end user. The agent then sells the goods directly to the user. This distribution channel allows the producer to reach the target market and sell their goods efficiently without the need for a dedicated sales force.Rate this question:
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- 32.
Which of the following services would be distributed by a producer to agent to consumer channel?
- A.
Health care
- B.
Vehicle repair
- C.
Income tax preparation
- D.
Travel planning
Correct Answer
D. Travel planningExplanation
Travel planning would be distributed by a producer to agent to consumer channel. This means that a travel planning service would be provided by a producer (such as a travel agency) to an agent (such as a travel agent or tour operator) who would then distribute the service to the consumer (the person or group seeking travel planning assistance). This distribution channel allows for a more efficient and streamlined process in delivering travel planning services to consumers.Rate this question:
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- 33.
What type of intermediary would purchase baseball bats from one producer, mitts from another, and balls from still another, then sells an assortment to sporting goods stores?
- A.
Agent
- B.
Wholesaler
- C.
Producer
- D.
Retailer
Correct Answer
B. WholesalerExplanation
A wholesaler would be the type of intermediary that purchases baseball bats from one producer, mitts from another, and balls from still another, and then sells an assortment of these products to sporting goods stores. Wholesalers typically buy goods in bulk from different producers and then distribute them to retailers in smaller quantities. They act as a middleman between the producers and the retailers, helping to streamline the supply chain and provide convenience for both parties involved.Rate this question:
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- 34.
Which of the following intermediaries never actually owns the products it promotes and sells?
- A.
Retailers
- B.
Wholesalers
- C.
Agents
- D.
Industrial users
Correct Answer
C. AgentsExplanation
Agents never actually own the products they promote and sell. Unlike retailers who purchase products from wholesalers or manufacturers and sell them to consumers, agents act as intermediaries between buyers and sellers. They help facilitate transactions but do not take ownership of the products. Instead, they earn a commission or fee for their services. Agents can be individuals or companies that represent multiple sellers and promote their products to potential buyers.Rate this question:
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- 35.
The use of intermediaries enables producers to make larger profits because intermediaries?
- A.
Help to reduce the per-unit costs of goods
- B.
Enables producers to use direct distribution
- C.
Increase the number of retailer-to-producer contacts
- D.
May sell more than the producer could sell on its own
Correct Answer
D. May sell more than the producer could sell on its ownExplanation
Intermediaries play a crucial role in the distribution process by reaching out to a larger customer base and selling more products than the producer could on its own. By leveraging their expertise, networks, and resources, intermediaries can effectively promote and distribute products, resulting in increased sales and profits for the producer. This is why the use of intermediaries enables producers to make larger profits.Rate this question:
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- 36.
Intermediaries buy larger quantities of goods from producers and sell smaller quantities to other intermediaries or to consumers. The result is that intermediaries ______ their per - unit costs for goods?
- A.
Reduce
- B.
Increase
- C.
Control
- D.
Stabilize
Correct Answer
A. ReduceExplanation
Intermediaries are able to buy goods in larger quantities from producers, which allows them to take advantage of economies of scale. This means that they can negotiate lower prices and reduce their per-unit costs for goods. By selling smaller quantities to other intermediaries or consumers, they are able to pass on some of these cost savings and offer competitive prices. Therefore, the correct answer is reduce.Rate this question:
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- 37.
Producers are able to match their production to the needs of consumers or industrial users because intermediaries?
- A.
Develop an assortment of goods
- B.
Increase distribution costs
- C.
Enable producers to promote goods
- D.
Extend credit services to consumers
Correct Answer
A. Develop an assortment of goodsExplanation
Intermediaries play a crucial role in developing an assortment of goods for producers. They bridge the gap between producers and consumers by identifying the specific needs and preferences of consumers or industrial users. By understanding the market demand, intermediaries can work closely with producers to tailor their production accordingly. This ensures that the right products are manufactured in the right quantities, preventing overproduction or underproduction. Ultimately, intermediaries enable producers to match their production to the needs of consumers or industrial users, leading to better sales and customer satisfaction.Rate this question:
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- 38.
An intermediary function that makes goods available to consumers where they are wanted and needed is?
- A.
Extending credit
- B.
Transporting and storing
- C.
Servicing sales
- D.
Providing management services
Correct Answer
B. Transporting and storingExplanation
Transporting and storing refers to the process of moving goods from the production location to the desired location where consumers can access them. This function ensures that goods are available to consumers in the right place and at the right time. By transporting goods, they are moved from the production site to distribution centers or retail stores. Storing involves keeping the goods in warehouses or storage facilities until they are needed. This intermediary function plays a crucial role in the supply chain by facilitating the availability of goods to consumers in the most efficient and convenient manner.Rate this question:
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- 39.
Which of the following is a direct channel of distribution for consumer goods and services?
- A.
Producer to industrial user
- B.
Producer to retailer to consumer
- C.
Producer to ultimate consumer
- D.
Producer to distributor to consumer
Correct Answer
C. Producer to ultimate consumerExplanation
The direct channel of distribution for consumer goods and services is when the producer sells the products directly to the ultimate consumer. This means that there are no intermediaries involved in the distribution process, such as retailers or distributors. The producer is able to have a direct relationship with the consumer, allowing for better control over pricing, marketing, and customer feedback. This channel is often used for products that require a high level of customization or personalization, as well as for products that are sold online or through company-owned stores.Rate this question:
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- 40.
Which of the following retailers would be most likely to be part of the producer to retailer to consumer channel?
- A.
Small boutique
- B.
Large retail chain
- C.
Specialty shop
- D.
Locally owned pharmacy
Correct Answer
B. Large retail chainExplanation
A large retail chain is most likely to be part of the producer to retailer to consumer channel because they have the resources and infrastructure to directly purchase products from producers or manufacturers, store them in their warehouses or distribution centers, and then sell them to consumers through their various retail outlets. They have the capacity to handle large volumes of products and have established relationships with multiple producers, allowing them to offer a wide range of products to consumers.Rate this question:
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Nov 16, 2023Quiz Edited by
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Apr 22, 2012Quiz Created by
SchlenkerJ
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