Delivering Value - Quiz

1. Wholesaling refers to:

Manufacturing products in bulk

Distribution of products to retail stores only

Selling directly to end consumers

Activities involved in selling goods to retailers or businesses that buy for resale or business use

2. Administered VMS occurs when:

All channel members act independently

One dominant channel member has the power to coordinate the activities of other channel members

No member has control over other members

There is ownership of the entire channel by one firm

3. Channel management focuses on:

Selecting, managing, and motivating intermediaries to ensure effective product distribution

Developing advertising campaigns

Setting production schedules

Pricing products for different markets

4. Exclusive distribution is used when:

A company wants its products available everywhere

The product is sold directly to consumers

A company uses multiple wholesalers

A company gives a limited number of dealers the exclusive right to distribute its products in their territories

5. Off-price retailers specialize in:

Selling high-end, premium goods at full price

Direct-to-consumer sales

Offering only luxury services

Selling brand-name merchandise at reduced prices due to excess inventory, discontinued items, or irregulars

6. A vertical marketing system (VMS) consists of:

Independent firms operating separately

Channel members (producer, wholesaler, retailer) acting as a unified system

Companies focusing only on online sales

A direct-to-consumer strategy

7. A pull strategy focuses on:

Using fewer distribution outlets

Creating customer demand so consumers actively seek out the product

Reducing product quality

Pushing products to retailers to promote

8. Channel design refers to:

Determining the pricing strategy

Creating marketing messages

Developing new products

Structuring a company’s marketing channels to best meet customer needs

9. Franchising is:

Limited to online sales

A type of retail strategy where a parent company allows an independent operator to use its business model and brand for a fee

Wholesaling to large retailers only

A direct sales approach

10. A marketing channel is:

A pricing strategy

A product development process

A set of interdependent organizations that help make a product or service available for use by consumers or businesses

An advertising medium

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