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Exam 11: Distribution Decisions

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Question 1

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A shopping centre containing a Woolworths, a David Jones, and an Amcal Chemist, as well as dozens of specialty shops, restaurants and entertainment venues is most likely a:

A) regional shopping centre.
B) local shopping centre.
C) community shopping centre.
D) complete business district.
E) hypermarket.

F) A) and B)
G) A) and C)

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Question 2

Multiple Choice

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By locating its dealership in the same general vicinity as other car dealerships, Hartfield Honda can:

A) facilitate comparison shopping.
B) create form utility.
C) facilitate wholesale exchanges.
D) create possession utility.
E) create exchange utility.

F) D) and E)
G) A) and E)

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Question 3

Multiple Choice

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Compared with other types of retailers, department stores compete mainly on the basis of:

A discount house can store and transport merchandise that is purchased directly from the producer, thus eliminating the need for a wholesaler.This is an example of vertical channel integration.

Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume?

When buyers, sellers, marketing intermediaries and facilitating agencies work together, the cooperative relationship results in compromises and adjustments that meet customers' needs.

Only producers can be channel captains.

Direct selling is the most expensive form of retailing.

Merchant wholesalers who specialise in just a few functions and pass others along to intermediaries or customers are called:

The success or failure of a competitor's marketing channel may encourage or dissuade an organisation from considering a similar approach.

In what ways do retailers add value to products?

A retailer engaged in direct marketing would probably select television home shopping over online retailing to sell a new kitchen device because:

Warehouse showrooms are able to sell products at low prices by passing some of their marketing functions on to consumers.

Conflicts with the retailer may develop if the dealer decides to place too much emphasis on competing product lines.

Telemarketing is often combined with other marketing efforts.

Channel power is a characteristic related to influence over the goals of other channel members.

Based on what he has heard regarding the profitability of such items, Drew Goldstein is considering adding a fresh shellfish case in his grocery store.Drew knows very little about this product or the concerns of shoppers who buy shellfish.He is looking for help in display set-up and merchandising ideas.Which type of wholesalers should Drew contact?

Matt's girlfriend tells him that she wants a cashmere sweater for her birthday.Matt decides to go to a store that provides the best possible selection of sweaters.His best choice would be to shop at a __________ store.

Most marketing channels have marketing intermediaries.A marketing intermediary's role is to:

Warner Bros.sells biscuit jars, puzzles, photo albums and other items featuring its popular cartoon characters directly through its own retail outlets.This is an example of: