CHAPTER 11

Which of the following is the series of firms or individuals that facilitate(s) the movement of a product from the producer to the final customers?

• the industrial network

• the retailer chain

• the multilevel network

• the channel of distribution

• the conventional marketing system

Producers benefit from using intermediaries because they ________.

• offer greater efficiency in making goods available to target markets

• bring a fresh point of view to strategy development

• eliminate risk

• are rarely backlogged with orders

• will store products indefinitely

At minimum, a channel of distribution consists of a producer and a(n) ________.

• wholesaler

• diverter

• broker

• intermediary

• customer

Which of the following is the term for the firms and individuals who help move a product to the consumer or the business user?

• product managers

• channel leaders

• channel intermediaries

• enterprise resource planners

• franchisees

It is most accurate to say that channels of distribution provide which of the following?

• time, place, and possession utility

• promotion, product, and place utility

• time, place, and form utility

• promotion and form utility

• time and promotion utility

Wholesalers and retailers purchase large quantities of goods from manufacturers but sell only one or a few at a time to many different customers. This process is called ________.

• creating assortments

• breaking bulk

• third-party logistics

• order processing

• inventory control

Wholesalers and retailers create efficiencies in the flow of goods from producer to end consumer by ________ when they provide a variety of products in one location.

• creating assortments

• just in time processing

• breaking bulk

• order processing

• risk taking

Functions provided by channel intermediaries that make the purchase process easier for customers and manufacturers are referred to as ________ functions.

• distributing

• facilitating

• risk-taking

• marketing

• wholesaling

Offering credit to buyers and providing refund services for products are both examples of ________ functions provided by channel intermediaries.

• diverting

• marketing

• breaking bulk

• facilitating

• creating assortment

Channel members can help producers by identifying customer complaints, customer preferences, and new competitors in the market. These are all examples of the ________ function of channel intermediaries.

• communication

• marketing

• promotional

• diverting

• management