Channel Management 4.01

Which of the following is a benefit of channels of distribution:

• We can more easily obtain products from all over the world.

• Producers must spend more money.

• Retailers must spend more money.

• We spend more time looking for products we want.

Where does a channel of distribution begin?

• With the industrial user

• With the ultimate consumer

• With the producer

• With the intermediary

Which of the following is an example of an ultimate consumer:

• A teenager buying her/his first car

• A farmer buying seed for crops that will be sold at market

• A manager buying office supplies

• A restaurant owner buying a new oven for the restaurant’s kitchen

Which of the following is an example of an industrial user:

• A parent buying a picture frame for his/her desk

• A hairstylist buying new scissors to perform haircuts

• A family buying a new home computer

• A teacher buying a book to read on vacation

Quality Distributors buys electrical equipment and supplies from ABC Electric and sells them to local electrical contractors. Quality Distributors is an example of a(n)

• retailer.

• intermediary.

• agent.

• producer.

Walmart, Domino’s, and Avis Rent-a-Car are examples of

• agents

• industrial distributors.

• retailers.

• wholesalers.

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 a(n)

• agent.

• retailer.

• producer.

• wholesaler.

What type of intermediary would purchase baseball bats from one producer, mitts from another, and balls from still another, and then sell an assortment to sporting goods stores?

• Agent

• Wholesaler

• Producer

• Retailer

Which of the following intermediaries never actually owns the products they promote and sell:

• Retailers

• Wholesalers

• Agents

• Industrial users

The use of intermediaries enables producers to make larger profits because intermediaries

• help to reduce the per-unit costs of goods

• enable producers to use direct distribution.

• increase the number of retailer-to-producer contacts.

• may sell more than the producer could sell on its own.