When the seller allows only certain outlets to carry its products, this strategy is called ________.

When the seller allows only certain outlets to carry its products, this strategy is called ________.

Chapter 10 - Marketing Channels and Supply Chain

Chapter 10

Marketing Channels and Supply Chain

True / False Questions

1. Supply chain activities are generally considered outside of the scope of marketing.

FALSE

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: Moderate

Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries.

Topic: 10-01 Nature and Importance of Marketing Channels

2. A marketing channel includes the individuals and firms involved in making products and

services available.

TRUE

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: Easy

Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries.

Topic: 10-02 What is a Marketing Channel?

3. Sporty Feet produces a special brand of footwear called FootTrekkers and sells it to

wholesalers. The wholesalers are intermediaries.

TRUE

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: Moderate

Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries.

Topic: 10-02 What is a Marketing Channel?

10- 1

Chapter 10 - Marketing Channels and Supply Chain

4. Shoppers' Galore issues credit cards to consumers so that they can buy now and pay later.

This is an example of a transactional function of an intermediary.

FALSE

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: Moderate

Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries.

Topic: 10-03 Value Is Created by Intermediaries

5. Form utility involves efforts by intermediaries to help buyers take possession of a product

or service, such as providing various ways for payment to be made for a product—by credit

card, debit card, cash, or cheque.

FALSE

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: Easy

Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries.

Topic: 10-03 Value Is Created by Intermediaries

6. User manuals are an example of information utility.

TRUE

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: Moderate

Learning Objective: 10-01 Explain what is meant by a marketing channel and the value created by intermediaries.

Topic: 10-03 Value Is Created by Intermediaries

7. Proctor & Gamble sells products to consumers utilizing only retailers in the channel. This

exemplifies a direct channel.

FALSE

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: Moderate

Learning Objective: 10-02 Define multichannel marketing and explain its advantages for consumers.

Topic: 10-05 Marketing Channels for Consumer Goods and Services

10- 2

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When the seller allows only some specific outlets for placing its products it is called?

Exclusive distribution involves selling a product through one or very few outlets.

Which type of distribution strategy is used when the producer wants more than one but fewer than all of the intermediaries who are willing to carry its products?

Selective distribution is used when selling to more than one but fewer than all of the intermediaries who are willing to carry a company's products in a given market.