QUESTION If Volkswagen sells cars to a dealer, who, in turn, sells to you, which of the following correctly describes the distribution strategy for this process? A) No intermediaries were involved. B) One intermediary was involved. C) Three intermediaries were involved. D) This was a direct channel. E) There was no distribution strategy. ANSWER […]
QUESTION A craftsman sells his products to customers at a local fair. What type of distribution is this an example of? A) a direct channel B) wholesaling C) one intermediary D) two intermediaries E) three intermediaries ANSWER Answer: A Explanation: A) A direct channel is a distribution channel in which a producer sells directly […]
QUESTION Which of the following is NOT one of the direct ways in which intermediaries add value to products? A) providing information about products B) making products more available to consumer C) changing products into more valuable products D) increasing the number of competitors for a type of product E) providing services for the product […]
QUESTION EasyGo is an intermediary that gives customers information on how to use the products they’ve purchased. What kind of value is added in this case? A) ownership B) location C) form D) service E) time ANSWER Answer: D Explanation: D) When intermediaries show customers how to use the products they’ve purchased, they are […]
QUESTION Which of the following is MOST likely to be intensively distributed? A) Porsche automobiles B) Starbucks coffee beans C) Cartier diamonds D) organic ostrich meat E) Gucci handbags ANSWER Answer: B Explanation: B) Of the list above, Starbucks coffee beans appeal to by far the biggest number of consumers. Therefore, they are the […]
QUESTION When intermediaries bring flowers from greenhouses to stores, which of the following are they affecting? A) form B) time C) location D) information E) ownership ANSWER Answer: C Explanation: C) When intermediaries move flowers from the greenhouses to the stores, making it easier for people to shop for them, they are affecting location—that […]
QUESTION When a company such as Home Depot offers financing and delivery of household appliances, what is it affecting? A) form B) location C) ownership D) time E) information ANSWER Answer: C Explanation: C) By offering financing and delivery, Home Depot and other similar companies that sell appliances are affecting ownership because they help […]
QUESTION Mark, an owner of a small food retailer, goes to Simons Foods every week to buy food products that he sells at his store. What type of wholesaler is Simons Foods? A) rack jobber B) full-service C) cash-and-carry D) drop shipper E) manufacturer’s sales office ANSWER Answer: C Explanation: C) A cash-and-carry wholesaler […]
QUESTION Bridget owns a manufacturer-owned wholesaler. Which of the following is a benefit that she has in this role? A) She can maintain full control over the selling and distribution of her products. B) She needn’t worry about storage because she has no physical custody of the products. C) She is able to share profits […]
QUESTION Personal selling is put to its best advantage for more-expensive items. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Because personal selling is face-to-face communication and promotion to influence customers to buy goods or services, it works best when the product is somewhat expensive, somewhat complex, and aimed at […]
