MKTG 406 “CONCEPT QUIZ” POOL

[From MKTG 300 “PLACE” Exam Items]

Marketing Channels)

MULTIPLE CHOICES
1. A _____ is a business structure of interdependent organizations that reaches from the point of product
origin to the consumer.
a. facilitating agency or place member
b. marketing mix intermediary
c. selective distribution channel
d. marketing channel or channel of distribution
e. transportation channel or channel of movement

The answer is D

2. Distribution channels aid in overcoming barriers to exchange that are created in the production process by
overcoming all of the following types of discrepancies EXCEPT:
a. Possession
b. Assortment
c. Quantity
d. Spatial
e. Temporal

The answer is A
3. A discrepancy of _____ is the difference between the amount of product produced and the amount an end
user wants to buy.
a. Space
b. Quantity
c. Assortment
d. accumulation
e. Possession
The answer is B

4. If a retail outlet does not offer all the items necessary in order for the buyer to use or to receive full
satisfaction from a product purchased there, there is a:
a. discrepancy of assortment
b. discrepancy of quantity
c. spatial discrepancy
d. temporal discrepancy
e. discrepancy of possession
The answer is A

5. The three basic functions channel intermediaries perform are:

a. transactional, logistical, and facilitating
b. contacting, negotiating, and ownership
c. promoting, distributing, and bulk-breaking
d. assorting, accumulating, and allocating
e. financing, mediating, and storing

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 MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]

The answer is A

6. Transactional channel functions include all of the following activities EXCEPT:

a. contacting buyers
b. promoting the products to be sold
c. taking the risks associated with product inventories
d. negotiating the sale
e. physical distribution and sorting

The answer is E
7. Marketing channels perform all of the following logistical activities EXCEPT:
a. Sorting
b. Storing
c. Grading
d. risk taking
e. assorting products into homogeneous or heterogeneous collections
The answer is D
8. _____ describes the process of strategically managing the efficient flow and storage of raw materials, in-
process inventory, and finished goods from point of origin to point of consumption.
a. Contract logistics
b. Logistics
c. Cross-docking
d. Disintermediation
e. Channel facilitation
The answer is B
9. Which of the following is NOT a sorting activity?
a. Assorting
b. accumulation
c. sorting out
d. Allocation
e. Possession

The answer is E
10. Which of the following are examples of facilitating functions performed by wholesaling intermediaries?
a. sorting and storing
b. risk taking and promotion
c. assorting, accumulating, grading, and allocating
d. researching and financing
e. financial management and storing
The answer is C
11. One configuration of a marketing channel entails producers selling to consumers with no intermediaries
involved. This is called a:
a. limited distribution system
b. conventional channel
c. vertical marketing system
d. reciprocal channel

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 MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]

e. direct channel

The answer is E
12. A channel typically used for industrial products is the _____ channel.
a. Direct
b. industrial distributor
c. Wholesaler
d. Retailer
e. Extended
The answer is B
13. Companies selling standardized items of moderate or low value to other businesses (not to consumers)
often use:
a. Retailers
b. industrial distributors
c. direct marketing organizations
d. agents and brokers
e. Disintermediation

The answer is B
14._____ distribution occurs when a producer selects two or more different channels to distribute the same
products to target markets.
a. Selective
b. Intensive
c. Multiple
d. Contractual
e. Cumulative
The answer is C
15. _____ coordinates and integrates all of the activities performed by channel members into a seamless
process, from the source to the point of consumption, resulting in enhanced customer and economic
value.
a. Yield management
b. Channel power
c. Materials handling
d. Supply chain management
e. Physical distribution
The answer is D

16. _____ is distribution aimed at maximum market coverage. It is used for many convenience goods and
supplies that need to be available in every outlet where the potential customer might want to buy them.
a. Selective distribution
b. Channel franchising
c. Intensive distribution
d. Horizontal channeling
e. Exclusive distribution

The answer is B

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 MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]

17. _____ distribution is achieved by screening dealers to eliminate all but a few in any single geographic
area. Shopping goods and some specialty products that consumers are willing to search for are sold this
way.
a. Intensive
b. Selective
c. Exclusive
d. Dual
e. Controlled
The answer is C
18.the most restrictive form of market coverage, _____ distribution, entails establishing only one or a few
dealers within a given geographic area. Because buyers need to be willing to search or travel to acquire
the product, this form of distribution is limited to consumer specialty goods, a few shopping goods, and
major industrial equipment.
a. Selective
b. Intensive
c. Exclusive
d. Dual
e. Premium
The answer is B

19. The mode of transportation that provides the most accessibility is:
a. Pipelines
b. Airfreight
c. truck freight
d. water transport
e. Railroad
The answer is C
20. One major advantage of pipelines over other modes of transportation is:
a. Availability
b. points served
c. Flexibility
d. Speed
e. dependability

The answer is B
21. Which of the following describes a disadvantage associated with water transportation?
a. cannot be used for international trade
b. high cost
c. Capability
d. lack of speed
e. product weight restrictions
The answer is D
22. Which of the following transportation modes can most easily determine the location of a package en route
between shipper and receiver?
a. Air
b. Truck
c. Rail
d. Pipe

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 MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]

e. Water
The answer is B
23 A _____ is a business structure of interdependent organizations that reaches from the point of
product origin to the consumer.
a. facilitating agency or place member
b. marketing mix intermediary
c. selective distribution channel
d. marketing channel or channel of distribution
e. transportation channel or channel of movement

The answer is D
24. /ones Soda is positioned as the anti-Coke. In the early years, few mainstream retailers sold
Jones Soda. Fans had to get their Jones fix in surf shops, tattoo parlors, and bookstores, adding to
the brand’s mystique. Jones Soda used it _____ to create a competitive advantage.
a. channel ascendancy
b. distribution channel
c. channel conflict
d. channel focus
e. vertical integration

The answer is B

25. Kayak.com is a company that allows customers to efficiently search databases to find the
best airline and hotel deals all over the Web. Kayak does not make bookings but rather provides
recommendations for the best travel plans. Travel providers pay Kayak a commission when
customers click through to their sites. Kayak.com, travelers, the airlines, and the hotels are all
part of a:
a. facilitating agency
b. marketing mix intermediary
c. selective promotion channel
d. marketing channel or channel of distribution
e. transportation channel or channel of movement

The answer is D

26. Marketing channels can achieve economies of scale through:

a. overcoming spatial discrepancies
b. contact expertise
c. specialization and division of labor
d. overcoming temporal discrepancies
e. overcoming discrepancies of quantity
The answer is C

27.Distribution channels aid in overcoming barriers to exchange that are created in the
production process by overcoming all of the following types of discrepancies EXCEPT:
a. possession

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 MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]

b. assortment
c. quantity
d. spatial
e. temporal

The answer is A

28. A discrepancy of _____ is the difference between the amount of product produced and
the amount an end user wants to buy.
a. Space
b. quantity
c. assortment
d. accumulation
e. possession

The answer is B

29. Which of the following is the lack of all the items a customer needs to receive full
satisfaction from a product or products?
a. Discrepancy of assortment
b. Discrepancy of quantity
c. Spatial discrepancy
d. Temporal discrepancy
e. Discrepancy of possession

The answer is A

30. .McKesson Wholesalers provides healthcare products to pharmacies. It purchases bandages,

gauze, antibacterial cream, and ointments from a variety of different manufacturers and resells
them to pharmacies so that many of the items a customer might need for a cut will be available in
the store. McKesson is aiding consumers by overcoming a:
a. spatial discrepancy
b. discrepancy of quantity
c. discrepancy of assortment
d. demand discrepancy
e. discrepancy of possession

The answer is C

31.A(n) _____ discrepancy is created when a product is produced but a consumer is not ready to
purchase it.
a. quantity
b. supply
c. possession
d. temporal
e. assortment

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 MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]

The answer is D

32. Cutter & Buck is a high-end fashion sportswear company. Even though swimwear is a
product category that does not sell year-round, its sales remain steady all year because Cutter &
Buck sells to wholesale distributors that stock the product. Its wholesale distributors are helping
to overcome a(n) _____ discrepancy.
a. assortment
b. spatial
c. possession
d. quantity
e. temporal

The answer is E

33. Marketing channels make distribution simpler by reducing the number of transactions
required to get products from manufacturers to consumers. This is called:
a. forward integration
b. contact efficiency
c. elimination of temporal discrepancies
d. sorting
e. reciprocity

The answer is B

34. When an intermediary in the channel of distribution owns the merchandise and controls the
terms of the sale, this is referred to as:
a. complete control
b. exclusive distribution
c. taking title
d. contact efficiency
e. economies of scale

The answer is C

35. Retailers and merchant wholesalers are examples of intermediaries that:

a. take title to a product
b. create temporal and spatial discrepancies
c. use consumer promotions
d. do not benefit from any economies of scale
e. are accurately described by all of these statements
The answer is A

36. Which of the following intermediaries sell mainly to consumers?

a. Retailers
b. Merchant wholesalers
c. Agents
d. Brokers

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 MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]

e. Specialists

The answer is A

37.A(n) _____ is an institution that buys goods from manufacturers, takes title to these goods,
and resells them to businesses, government agencies, and/or other wholesalers or retailers.
a. merchant wholesaler
b. agent
c. drop shipper
d. channel cooperative
e. marketing cooperative

The answer is A

38. Long Island Lefty provides retailers and other businesses with the latest and the best products
for left-handed consumers. It buys all types of products from a variety of manufacturers and
stores the merchandise in its New York warehouse until purchased by buyers. Long Island Lefty
does not sell to end users and is an example of a(n):
a. agent or broker
b. merchant wholesaler
c. retailer
d. consumer market
e. hypermarket intermediary

The answer is B

39. Agents and brokers:

a. have a great deal of control and risk invested in the goods
b. only represent manufacturers in sales situations
c. have a great deal of input on the terms of the sale
d. generally are on salary with the manufacturer
e. do not take title to merchandise

The answer is E

40. _____ are intermediaries who facilitate the sales of a product from producer to end user
by representing retailers, wholesalers, or manufacturers and providing little input as to the terms
of the sale.
a. Marketing facilitators
b. Channel cooperatives
c. Agents and brokers
d. Merchant wholesalers
e. Channel functionaries

The answer is C

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 MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]

41. Generally, _____ determine what type of intermediary a manufacturer should use:
a. product characteristics, buyer consideration, and market characteristics
b. only internal environmental characteristics
c. competitive conditions and government regulations
d. all controllable marketing factors
e. only no controllable environmental factors

The answer is A

42. The three basic functions channel intermediaries perform are:

a. transactional, logistical, and facilitating
b. contacting, negotiating, and ownership
c. promoting, distributing, and bulk-breaking
d. assorting, accumulating, and allocating
e. financing, mediating, and storing

The answer is A

43. All of the following are sorting activities EXCEPT:

a. assorting
b. accumulation
c. sorting out
d. allocation
e. possession

The answer is E

44. Breaking bulk at the wholesale level is called:

a. allocating
b. accumulation
c. storing
d. downsizing
e. grading

The answer is A

45. With respect to the sorting logistical function, _____ is the combining of similar stocks into a
larger homogeneous supply.
a. sorting out
b. accumulating
c. allocating
d. breaking bulk
e. assorting

The answer is B

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 MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]

46. Which of the following are examples of facilitating functions performed by wholesaling
intermediaries?
a. Sorting and storing
b. Risk taking and promotion
c. Assorting, accumulating, grading, and allocating
d. Researching and financing
e. Financial management and storing

The answer is D

47._____ is the efficient and cost-effective forward and reverse flow and storage of goods,
services, and related information into, though, and out of channel member companies.
a. Disintermediation
b. Logistics
c. Materials handling
d. Intermodal transportation
e. Contract logistics

The answer is B

48. The only way that Jim Keeler in New Mexico can get a box of Carolyn Popwell’s Festive
Holiday Truffles from Washington is to order it through the mail. Popwell, who makes the candy
by hand, uses a(n) _____ exclusively.
a. exclusive distribution system
b. conventional channel
c. vertical marketing system
d. reciprocal channel
e. direct channel

The answer is E

49. All of the following are typical channel members in marketing channels for consumer
products EXCEPT:
a. Retailers
b. agent/brokers
c. industrial distributors
d. producers
e. wholesalers
The answer is C

50. Centigon is a manufacturer of customized armored vehicles for military, private, presidential,
and commercial uses. Each armored vehicle is designed to deliver security on the road while also
achieving optimum levels of performance and comfort. For distribution, you would expect
Centigon to use a:
a. network of facilitating agents
b. horizontally integrated channel

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 MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]

c. reciprocal channel
d. direct channel
e. vertical marketing system

The answer is D

51. Companies selling standardized items of moderate or low value to other businesses (not to
consumers) often use:
a. retailers
b. industrial distributors
c. wholesalers
d. bulk breakers
e. industrial resellers

The answer is B

52. _____ distribution occurs when a producer selects two or more different channels to
distribute the same products to target markets.
a. Selective
b. Intensive
c. Dual
d. Contractual
e. Cumulative

The answer is C

53. Which of the following enables a company to use another manufacturer’s already established
channel?
a. Strategic channel alliances
b. Relationship channels
c. Reverse channels
d. Multiple distribution systems
e. Nontraditional channelization

The answer is A

54. Which of the following statements concerning how market factors affect channel decisions is
true?
a. Industrial customers tend to buy in larger quantities and require more customer
service.
b. Geographically concentrated target markets should be served with an indirect sales
force.
c. Widely dispersed markets require fewer intermediaries.
d. New firms in extremely competitive markets will be more successful if they use
indirect channels.
e. A very large market requires fewer intermediaries.

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 MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]

The answer is A

55. Which level of distribution intensity is the most restrictive and entails establishing only one
or a few dealers within a given geographic area?
a. Selective
b. Intensive
c. Exclusive
d. Dual
e. Premium

The answer is C

56. Rolex is an expensive brand of watches. The company has a policy of only having one or two
dealers within a given large geographic area. Buyers of Rolex watches will travel extensively to
acquire just the right watch. This is an illustration of which level of distribution intensity?
a. Exclusive
b. Intensive
c. Selective
d. Reciprocal
e. Premium

The answer is A

57. The capacity of a particular marketing channel member to control or influence the behavior
of other channel members is known as:
a. channel power
b. channel conflict
c. channel control
d. channel dominance
e. channel inversion

The answer is A
58. Wal-Mart is the largest retailer in the world, and many consumer packaged-goods
manufacturers like Kraft have offices in Bentonville, Arkansas, where Wal-Mart is
headquartered. Wal-Mart has the ability to influence manufacturers to lower their prices so that it
can deliver on its low-price guarantee to consumers. Wal-Mart possesses:
a. channel influence
b. channel supremacy
c. channel power
d. channel exclusivity
e. channel clout

The answer is C

59. A channel leader is also called a(n):

a. intermediary leader
b. channel captain

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 MKTG 406 “CONCEPT QUIZ” POOL
[From MKTG 300 “PLACE” Exam Items]

c. channel facilitator
d. distribution supervisor
e. channel gatekeeper

The answer is B

60. Channel conflict:

a. always has an adverse effect on the members of the channel
b. is not caused by ideological differences, because such differences would prevent
the members from ever operating as a channel
c. is often caused by an inability of some channel members to keep up with the
changing times
d. can appear as either internal or external
e. does not occur when multiple distribution channels are used

The answer is C

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