Marketing Objective 5.02 Review Quizizz Assignment

The goal of channels of distribution is to move products from producers to

• intermediaries.

• industrial distributors.

• final consumers.

• middlemen.

Answer explanation

The goal of channels of distribution is to move products from producers to final consumers. Along the way, products may go through channel members known as intermediaries or middlemen. Industrial distributors are a type of intermediary.

Channels of distribution benefit consumers by

• making a variety of products available to them.

• lowering the prices of all consumer products.

• raising the quality of all consumer products.

• increasing profits for businesses.

Answer explanation

Channels of distribution benefit consumers by making a variety of products available to them. Without these channels, consumers could only buy products directly from producers, which would be impractical. Channels may lower some but not all consumer product prices. They may raise the quality of some but not all consumer products. Increased profits for businesses is not a benefit for
consumers.

Channels of distribution benefit businesses by

• lowering the prices of all industrial goods.

• getting their products to consumers more efficiently.

• raising their profits each year.

• allowing them to avoid all channel tasks.

Answer explanation

Channels of distribution benefit businesses by getting their products to consumers more efficiently. This may help to raise profits, but it is not a guarantee. Channels may lower the prices of some but not all industrial goods. Channels allow businesses to share channel tasks, but they will not be able to avoid all channel tasks—every channel member contributes.

The costs of promoting products are often (5 points)

• a. avoidable in certain channels.

• b. very inexpensive, especially for new products.

• c. paid for entirely by one channel member.

• d. shared by channel members.

Answer explanation

The costs of promoting products are often shared by channel members instead of being paid for entirely by one channel member. All products need to be promoted. Promotion costs are unavoidable and are often expensive, especially for new products.

Retailers perform an important channel activity by negotiating with consumers on issues such as

• risk-taking.

• delivery.

• promotion.

• manufacturing.

Answer explanation

Retailers perform an important channel activity by negotiating with customers on issues such as delivery, installation, and price. Consumers are not involved in risk-taking, promotion, or manufacturing.

A wholesaler breaks down a large shipment of a product and sells portions of it to several retailers. The wholesaler is reducing a discrepancy of

• quantity.

• assortment.

• installation.

• promotion.

Answer explanation

The wholesaler is reducing a discrepancy of quantity by breaking down a large quantity of a product into smaller quantities for retailers to buy and sell to final consumers. Reducing a discrepancy of assortment means making a variety of related products available in one place. There is no such thing as a discrepancy of installation or a discrepancy of promotion.

Channel members add value to a product by

• performing certain channel activities expertly.

• making the product more costly.

• making the product difficult for consumers to find.

• pursuing individual goals.

Answer explanation

Channel members add value to a product by performing certain channel activities expertly. Moving the product smoothly through the channel benefits all channel members. Channels are not meant to make products more costly or more difficult for consumers to find. Channels work best and deliver value-added products when channel members work together toward common goals.

Which of the following is a condition that must exist for channels to be effective: (5 points)

• They must be properly managed.

• They must have at least five members.

• Channel members must have varying goals.

• Channel members must not share tasks.

Answer explanation

To be effective, channels must be properly managed. Channel members must share common goals, and channel members must share tasks appropriately. Channels can be effective no matter how many members they have.

Channel members should share an equal commitment to the product’s

• many price.

• poor name image.

• expensive packaging.

• quality.

Answer explanation

Channel members should share an equal commitment to the product’s quality. Channels are effective only when channel members share this common goal. Channel members may not have an equal commitment to a product’s price, name, or packaging.

The first decision that marketers must make when managing channels is

• setting channel objectives.

• determining distribution patterns.

• selecting channel members.

• determining channel responsibilities.

Answer explanation

The first decision that marketers must make when managing channels is setting channel objectives. They can’t make any further decisions until they’ve determined what they’re trying to achieve. After channel objectives have been set, marketers can move on to decisions such as determining distribution patterns, selecting channel members, and determining channel responsibilities.