DISTRIBUTION DECISIONS

Front

What is a key characteristic of a Corporate Vertical Marketing System (VMS)?

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A single company owns and controls multiple stages of production and distribution, ensuring consistency and streamlined decision-making.

Front

Which of the following best describes a Pull Strategy in distribution? A) It focuses on offering trade discounts to intermediaries to stock products. B) It involves creating direct consumer demand through advertising and promotions, encouraging customers to seek out the product and pull it through the channel. C) It relies on intermediaries pushing products to consumers without consumer input. D) It uses a sales force to directly sell to business customers.

Back

It involves creating direct consumer demand through advertising and promotions, encouraging customers to seek out the product and pull it through the channel.

Front

What is an example of a Multichannel Distribution System? A clothing brand selling through its own stores, an e-commerce website, and third-party retailers to reach diverse customer segments and maximize market coverage.

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A clothing brand selling through its own stores, an e-commerce website, and third-party retailers to reach diverse customer segments and maximize market coverage.

Front

Which factor is NOT typically considered a constraint in channel design? A) Budget limitations restricting channel options. B) Logistical challenges like transportation or storage issues. D) The need for specialized handling of bulky or nonstandard products.

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The goal of maximizing market coverage for the business.

Front

Which of the following is an example of Intensive Distribution? A) A luxury brand limiting sales to a few exclusive boutiques. B) A company placing products in as many outlets as possible to maximize accessibility, such as convenience stores and supermarkets. C) A manufacturer partnering with a select group of trusted retailers. D) A tech firm selling directly through its website to maintain control.

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A company placing products in as many outlets as possible to maximize accessibility, such as convenience stores and supermarkets.

Front

What is the primary role of intermediaries known as "merchants" in a distribution channel?

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They purchase products from producers, manage inventory, and sell them to customers for a profit.

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What is a key benefit of a Brick-and-Click firm’s distribution approach?

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It uses both physical stores and online channels to cater to varied customer preferences effectively.

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In Coca-Cola’s distribution strategy, what is an example of a Push Strategy? Options: A) Launching social media campaigns to drive consumer demand for its beverages directly. B) Providing retailers with substantial discounts to encourage stocking and promotion of products. C) Partnering with major events like the Olympics to enhance brand visibility among consumers. D) Selling products through its own online store to bypass traditional retail channels.

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Providing retailers with substantial discounts to encourage stocking and promotion of products.

Front

What does "Spatial Convenience" refer to in channel service outputs?

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The accessibility of products in terms of location, making it easier for customers to buy them.

Front

Which of the following best defines Channel Conflict? A) Collaboration between channel members to achieve shared goals. B) Disagreements or disputes among channel members due to differing goals or competition, such as between two retailers or a manufacturer and a distributor. C) The influence one channel member has over others due to market power. D) The process of selecting intermediaries based on experience and reach.

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Disagreements or disputes among channel members due to differing goals or competition, such as between two retailers or a manufacturer and a distributor.