Distribution Channels Quiz

Which of the following is a benefit to a manufacturer of using a national retailer as a channel of distribution?

• A higher price can be charged

• Profit margins will be increased

• Product sales will be guaranteed

• A wider audience may be reached

A direct channel of distribution has:

• Three intermediaries

• Two intermediaries

• One intermediary

• No intermediaries

Which of the following best describes the term e-tailer? A business that:

• Buys goods from a producer and sells them via a physical shop

• Manufactures goods and sells them through physical stores

• Buys goods from a wholesaler and sells them via both physical outlets and online

• Sells goods online only, as its customers buy electronically

Which of the following is true in relation to a producer distributing products through a retail chain?

• Products are sold directly by the producer to the end user

• Full control of distribution is kept by the producer

• A large number of potential customers can see the product

• The producer makes more profit per unit sold in comparison to the business selling directly to the public

Which of the following elements of the marketing mix best describes the different channels of distribution used by businesses?

• Place

• Promotion

• Price

• Product

A physical shop/store that buys its products from a wholesaler, or directly from the business that makes the goods, and then sells these products to customers is known as a:

• Producer

• E-tailer

• Retailer

• Manufacturer

Which of the following is a benefit to a business of distributing products via e-commerce?

• Website will require frequent updating

• Customer expectations of timely deliveries will need to be met

• Large market can be accessed 24 hours a day

• Intense competition can increase sales

Which of the following statements is true?

• Most grocery sales in the UK are made online

• Most grocery sales in the UK are made in physical stores

• All stores that sell groceries offer an online service

• All grocery stores offer a click and collect service

Which of the following is an example of indirect selling?

• E-commerce

• Retailer

• E-tailer

• M-commerce

The diagram below shows the different methods of distribution used by businesses. Which of the following accurately completes the diagram above?

• 1.E-tailer 2.Consumer 3.Retailer

• 1.E-tailer 2.Retailer 3.Consumer

• 1.Retailer 2.E-tailer 3.Consumer

• 1.Retailer 2.Consumer 3.E-tailer