IB Business Management MCQ QuizIB_Business_Management_4_5 Place_

Place refers to what aspect of a firm’s marketing?

• Chain of production

• Communication channels

• Distribution channels

• Physical location

Identify the name given the middle-people or organizations in the chain between the manufacturer and the consumer.

• Agents

• Intermediaries

• Retailers

• Wholesalers

Which intermediaries purchase large quantities from a manufacturer and then resell these in smaller batches further down the distribution channel?

• Agents

• Retailers

• Vending machines

• Wholesalers and distributors

Identify the factor least likely to influence the choice of distribution channel.

• Costs

• Market size

• Location of customers

• Stock control systems

Identify a limitation of choosing a long distribution channel.

• The perishability of certain goods, such as fresh produce

• The price of the good

• The popularity of the good

• The stage of the good in the product life cycle

A manufacturer authorises an agent to negotiate sales, who agrees terms with wholesalers, who resell the goods to retailers, who then sell the products to consumers. This firm has a ____________________.

• One-level channel chain

• Multi-level channel chain

• Two-level channel chain

• Zero-level channel chain

A producer that directly sells its products to the final consumer uses a _______ level channel chain.

• One

• Three

• Two

• Zero

Identify the distribution channel most used in the services sector.

• Multi-level channel chain

• One-level channel chain

• Two-level channel chain

• Zero-level channel chain

Identify the difference between a distributor and a wholesaler.

• A distributor has competition, whereas wholesalers have exclusive rights to a product

• A distributor works closely with the manufacturer, whereas a wholesaler works closely with retailers

• A wholesaler is responsible for marketing a product, whereas a distributor has no responsibility for the marketing

• Distributors deal in larger quantities of a product than wholesalers

Identify the intermediary commonly used by property sellers, hotels, and airline companies.

• Agents

• Distributors

• Retailers

• Wholesalers