Channels of Distribution

Which of the following is an example of an ultimate consumer

• A teenager buying her/his first car
• A manager buying office supplies
• A farmer buying seed for crop that will be sold at market
• A restaurant owner buying a new oven for the restaurant’s kitchen

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 stores

• Agent
• Producer
• Retailer
• Wholesaler

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 
• retailer
• producer
• agent 

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

• Health care
• Income tax preparation
• Travel planning
• Vehicle repair

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

• Agents 
• Retailers 
• Industrial users
• Wholesalers

Producers are able to match their production to the needs of consumers or industrial users be-cause intermediaries

• develop an assortment of goods
• enable producers to promote goods.
• increase distribution costs
• extend credit services to consumers

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 cost for goods

• stabilize
• control 
• increase
• reduce 

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
• Producer to industrial distributor to user
• Producer to industrial user
• Producer to agent to industrial distributor to user

Wal-Mart, Domino’s Pizza, and Avis Rent-a-Car are examples of

• agents
• industrial distributors
• retailers
• wholesalers

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

• Producer to retailer to consumer
• Producer to wholesaler to retailer to consumer
• Producer to agent to industrial distributor to user
• Producer to industrial user