Distribution Management

1. In a particular economy, product prices have steadily declined, causing consumers to postpone purchases in anticipation of even lower prices. Retailers are forced to cut costs, and businesses are struggling to maintain profits. What economic condition does this describe?

• Inflation

• Deflation

• Recession

• Horizontal Competition

2. A furniture company produces high-end dining sets and sells them in bulk to a distributor, who then supplies multiple retail stores. In this scenario, the distributor plays the role of a?

• Manufacturer

• Retailer

• Wholesaler

• Consumer

3. A cosmetics brand partners with a third-party sales company to connect them with potential retail clients. This third-party company does not own the products but facilitates the deal. What role does this company fulfill?

• A. Retailer

• B. Wholesaler

• C. Consumer

• D. Agent/Broker

4. A high-end fashion brand faces competition from budget clothing stores that offer trendy alternatives at lower prices. What type of competition does this represent?

• Horizontal competition

• Vertical competition

• Intertype competition

• Channel system competition

5. A local electronics store is competing directly with another nearby electronics store that sells similar brands and products. Which type of competition is this scenario describing?

• Vertical competition

• Horizontal competition

• Intertype competition

• Intertype competition

6. What is the primary characteristic of dual distribution?

• Using multiple suppliers for the same product

• Using two or more different channel structures for the same product

• Selling products only to exclusive dealers

• Allowing channel members to set their own prices

7. A country imports significantly more goods and services than it exports over the course of a year. As a result, its economy faces challenges such as reduced local production and increased reliance on foreign suppliers. What economic condition does this describe?

• National Debt

• Trade Deficit

• Inflation

• Deflation

8. A government borrows large amounts of money to fund infrastructure projects and social programs. Over time, the accumulated borrowed funds create financial pressure, requiring higher tax rates to manage repayments. What economic condition is this an example of?

• Trade Deficit

• Recession

• National Debt

• High Interest Rates

9. Which practice involves selling products at different prices to the same class of channel members?

• Price Maintenance

• Price Discrimination

• Resale Restrictions

• Exclusive Dealing

10. What is the purpose of price maintenance?

• Allowing suppliers to set product prices for their channel members

• Encouraging competition between channel members

• Ensuring customers negotiate prices directly with suppliers

• Enabling discounts for bulk purchases