CM-003 Posttest - (5.01) Channels of Distribution

Which of the following is an example of an industrial user?

a hairstylist buying new scissors to perform haircuts

Which of the following is an example of an ultimate consumer?

a teenager buying his/her first car

Quality distributors buys electrical equipment and supplies from ABC Electric and sells them to local electrical contractors. Quality Distributors is an example of a(n)

intermediary

Which of the following retailers would be most likely to be part of the producer to retailer to consumer channel:

large retail chain

What is the most common channel of distribution for large industrial goods?

producer to industrial user

Which of the following is a direct channel of distribution for consumer goods and services

producer to ultimate consumer

Intermediaries buy large quantities of goods from producers and sell smaller quantities to other intermediaries or to consumers. The result is that intermediaries ________ their per-unit costs of goods.

reduce

which of the following services would be distributed by a producer to agent to consumer channel:

travel planning

Top-Notch wheels buys mountain bike from The Great Colorado Mountain Bike Company and sells them to bike shops. Top-Notch Wheels is an example of a(n)

wholesaler

What type of intermediary would purchase baseball bats from one producer, mitts from another, and balls from still another, and then sell an assortment to sporting goods store?

wholesaler

An advantage of producers in using producer to wholesaler to retailer to consumer distribution channel is that...

wholesalers usually buy in large quantities

The use of intermediaries enables producers to make large profits because intermediaries...

may sell more than the producer could sell on its own

Which indirect channel of distribution is used to reach large retailers when the producer does not want responsibility for the selling activities?

producer to agent to retailer to consumer

What distribution channel is used for high-priced industrial goods when the producer does NOT have its own sale force?

producer to agent to user

Which of the following is a benefit of channels of distribution?

We can more easily obtain products from all over the world.

Producers are able to match their production to the needs of consumers or industrial users because intermediaries....

develop an assortment of goods

Walmart, dominos pizza, and avis rent-a-car are examples of

retailers

An intermediary function that makes goods available to consumers where they are wanted and needed is...

transporting and storing

Where does a channel of distribution begin?

with the producer

Which of the following intermediaries never actually owns the product it promotes and sells?

Agents