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QUICK QUIZ

2. How do channel members add value to a product?
By performing certain channel activities expertly
By making the product more costly
By making the product available in all locations
By pursuing individual goals

3. What do marketers want to achieve by determining distribution intensity?
Ideal market exposure
Complete market coverage
Perfect market balance
Total market saturation

4. When is it best for a business to use an exclusive distribution pattern?
It prefers to have its intermediaries promote the product.
It needs to maintain tight control over a product.
It chooses to eliminate intermediaries.
It wants the product to be available in all possible locations.

5. Which of the following is an aspect of channel management that impacts customer service?
Advertising
Taxes
Protectionism
Timeliness

6. What is one action that customer service can take to facilitate order processing?
Negotiate aggressively
Oversee assembly
Communicate effectively
Monitor inventory

7. Which situation hinders a business's ability to provide quality customer service?
Supply channel has high flexibility levels.
Vendor consistently has back orders.
Post-sale support is responsive.
Distribution patterns are operational.

8. What is an advantage for producers in using the producer to wholesaler to retailer to consumer distribution channel?
It enables them to control channel activities.
Wholesalers do not take title to the goods.
Wholesalers usually buy in large quantities..
It enables them to reach large retailers directly.

9. What indirect channel of distribution is used to reach large retailers when the producer does not want responsibility for the selling activities?
Producer to wholesaler to retailer to consumer
Producer to agent to retailer to consumer
Producer to consumer
Producer to retailer to consumer

10. What example demonstrates the use of satellite tracking within a distribution channel?
An inventory specialist enters product status information into a handheld electronic device.
A computer system performs warehouse functions that are usually executed by humans.
A technological system creates an efficient routing plan for transportation companies.
A dispatcher has current knowledge of a delivery truck's location and destination.

11. What statement is true about technology in relation to channel management?
Some businesses have the capacity to distribute most or all of their products through the internet.
Because technology continues to evolve, vertical conflict among channel members is occurring less often.
Technological advancements generally require businesses to increase the number of intermediaries they use.
For most businesses, technology makes it more difficult to monitor the channel members' activities.

12. What factor could determine legal ownership of goods in the distribution process?
Country in which the product is produced
Availability of the product
Involvement of agents
Physical characteristics of the product

13. Restricted sales territories Exclusive dealing Tying agreements
What legal example is represented by a manufacturer selling its products through a toll-free phone system, a company web site, and several retailers?
Restricted sales territories
Exclusive dealing
Tying agreements
Dual distribution

14. In which situation might exclusive distribution be considered a legal arrangement?
A business prevents a competitor's product from entering the market.
A franchisor requires a franchisee to sell only the franchisor's products.
A distributor requires a customer to buy all of its products to obtain one product.
A manufacturer assigns an exclusive territory to restrict competition.

15. Which of the following is an example of distributing goods through a gray-market strategy?
An Asian-based company establishes an Internet website to sell its cleaning products directly to European consumers.
A franchisee obtains a license to sell a well-recognized brand of tires through her/his dealership.
A pharmacy sells brand medications to customers in foreign countries for a lower price than they can get domestically.
A local jewelry store has exclusive distribution rights to sell expensive wristwatches for a Swiss manufacturer.

16. What is an example of a large business using coercion in the distribution channel?
Buying products from unauthorized intermediaries
Requiring a specific type of packaging material
Threatening to stop using a supplier unless given major concessions
Returning shipments without proper authorization