Channels of Distribution 2024

A _______ is a system of people, organizations, and activities that work together to make goods and services available to consumers to purchase.

• final consumer
• marketing system
• marketing channel
• distribution

Which of the following is false about marketing channels?

• The goal of a marketing channel is to create and deliver value for final consumers.
• Ownership of goods and services is transferred from one channel member to the next.
• The final consumer is the end user of the product or service being delivered.
• Only tangible products can be distributed via a marketing channel.

Which of the following is not a type of intermediary in the marketing channel?

• Retailer
• Broker
• Distributor
• Manufacturer

The intermediary activities of buying, selling, and temporary risk-bearing relate to which intermediary function?

• Transactional function
• Logistical function
• Facilitating function
• Distribution function

Which of the following statements about how intermediaries add value is false?

• Marketing intermediaries add value by reducing the number of transactions between manufacturers and consumers.
• Marketing intermediaries add value by increasing the number of transactions between manufacturers and consumers.
• Marketing intermediaries provide pertinent information about products and services throughout the distribution channel.
• Marketing intermediaries adjust for discrepancy of quantity and assortment.

Lights-to-You provides all types of internal and external lighting systems to consumers for holiday decorating. Consumers can only buy decorative lights from Lights-to-You by shopping on its website. Lights-to-You uses a(n) _______ marketing channel.

• indirect
• parallel
• direct
• unimodal

Airplane manufacturer Airbolt sells its Zoom Model X12 to airline companies that fly consumers all over the United States. The relationship between Airbolt and the airlines represents a(n) _______ marketing channel in the _______ market.

• direct; B2B
• indirect; B2B
• producer; B2C
• direct; B2C

Which of the following is not a type of vertical marketing system?

• Corporate vertical marketing system
• Administered vertical marketing system
• Conventional vertical marketing system
• Contractual vertical marketing system

Athleisure brand Athlean sells its activewear through its physical stores and through its e-commerce site online. Athlean uses which type of marketing system to distribute its products?

• Horizontal marketing system
• Multichannel marketing system
• Omnichannel marketing system
• Vertical marketing system

As a factor that influences channel choice in distribution, _______ is defined as having the resources and capabilities to reach and serve consumers in a company’s target market.

• target market coverage
• fulfillment of buyer requirements
• product-related factors
• profitability