Delivering Value - Quiz

1. E-commerce has transformed distribution by:

Reducing global market opportunities

Limiting the number of distribution channels

Reducing the need for physical stores and enabling direct-to-consumer sales

Increasing the reliance on wholesalers

2. A contractual VMS involves:

A single company owning the distribution system

Independent firms at different levels of production and distribution joining together through contracts

A lack of formal agreements between channel members

Companies focusing only on direct marketing

3. 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

4. A direct marketing channel is:

A communication channel between consumers and marketers

A digital marketing strategy

A channel that includes wholesalers and retailers

A channel that includes no intermediaries

5. Off-price retailers specialize in:

Direct-to-consumer sales

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

Selling high-end, premium goods at full price

Offering only luxury services

6. A pull strategy focuses on:

Using fewer distribution outlets

Reducing product quality

Pushing products to retailers to promote

Creating customer demand so consumers actively seek out the product

7. Selective distribution involves:

Using fewer intermediaries than intensive distribution but more than exclusive distribution

Selling only through one exclusive retailer

Direct-to-consumer sales

Offering a product only through e-commerce channels

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

Independent firms operating separately

A direct-to-consumer strategy

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

Companies focusing only on online sales

9. Exclusive distribution is used when:

A company uses multiple wholesalers

A company wants its products available everywhere

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

The product is sold directly to consumers

10. Franchising is:

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

A direct sales approach

Wholesaling to large retailers only

Limited to online sales

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