EXERCISE FOR CHAPTER 8

1. What is the primary function of marketing intermediaries in a distribution channel?

• They increase the direct interaction between producers and customers.
• They reduce the efficiency of transactions between suppliers and customers.
• They bridge the time, place, and possession gaps that separate products from users.
• They eliminate the need for negotiation in the sales process.

2. Which of the following best describes a marketing channel?

• A system for producing goods and services.
• A set of independent organizations that aid in making a product available for consumption.
• A promotional technique used to create customer interest.
• A software tool for tracking customer data.

3. Which type of distribution is used to stock products in as many outlets as possible?

• Intensive distribution
• Selective distribution
• Exclusive distribution
• Retail distribution

4. A company like Toyota manages a large network of suppliers, distributors, and customers that work together to create value. This network is known as a:

• Marketing channel
• Distribution network
• Value delivery network
• Consumer channel

5. In a vertical marketing system (VMS), which of the following entities act as a unified system?

• Only producers
• Only retailers
• Producers, wholesalers, and retailers
• Independent intermediaries

6. Which type of retailer is specifically designed to meet consumers' total grocery needs?

• Specialty store
• Department store
• Supermarket
• Convenience store

7. Disintermediation occurs when:

• New types of intermediaries are introduced.
• Traditional intermediaries are removed or replaced by new types of intermediaries.
• Intermediaries bridge the gap between suppliers and consumers.
• Customers purchase directly from wholesalers.

8. Which of the following functions involves gathering and distributing information about consumers and competitors in the market?

• Promotion
• Contact
• Information
• Negotiation

9. Exclusive distribution is most often used for:

• High-demand, low-cost products.
• Luxury brands with limited distribution.
• Products requiring broad access in many stores.
• Common goods available in supermarkets.

10. Which of the following describes multichannel distribution systems?

• A firm uses multiple channels to reach different customer segments.
• A single firm uses one marketing channel exclusively to reach customers.
• A company eliminates the use of all marketing intermediaries.
• Two or more firms collaborate at a single level of the channel.