Exam 14: Channels of Distribution

When Loomis Hardware started carrying items that consumers do not expect to find in a hardware store, such as Rowe pottery, silk flower arrangements, pewter wind chimes, and ornate picture frames, the store's management was using:

In 1989, Seeds of Change started with a simple mission: "To preserve biodiversity and promote sustainable, organic agriculture." With its ever-expanding line of Certified Organic Foods, it has stayed True to its mission. It uses only the freshest, select, organic ingredients. All are great tasting and healthy and just as nature intended. Seeds of Change also seeks out unique ingredients such as quinoa, an ancient and little-known South American grain that is high in protein and a valuable source of many amino acids. By using quinoa, Seeds of Change is helping to preserve a nutritious food that might have otherwise been lost for future generations. In close collaboration with an extensive network of certified organic seed growers and plant breeders, Seeds of Change cultivates, studies, refines, and expands the products it provides to consumers. -About two years ago, the company decided to make its products available in the organic sections of large national supermarket chains. The recent decision to make its products available on the Internet could have led to _____ with the national supermarket chains.

Wendy's, Ford, Midas Muffler, and Avis car rentals are all examples of:

The Home Depot has _____ because when it agrees to buy from a vendor, it is rewarded with widespread distribution and a high probability of a large sales volume.

Ultimate consumers and business users are typically reached through similar distribution channels.

Each Christmas, Heritage Farm offers gift givers a chance to buy the yield of one pecan tree to give to someone on their gift lists. Heritage Farm sends the recipient a card at Christmas time and, as soon as the pecans are harvested in the fall, Heritage Farm sends them to the recipient. This is an example of _____ distribution.

The primary source of horizontal conflict is scrambled merchandising.

A peanut farmer who sells boiled and roasted peanuts to people who are attending the county fair is using direct distribution.

A tying contract may be legal if:

Horizontal conflict in channels of distribution occurs:

The leading producer in the U.S. of aluminum railings used in a variety of sites such as hospitals, stadiums, schools controls the channel of distribution through which its railings are sold by the force of its market power. This is an example of a(n):

Wal-Mart, Target, The Limited, and Morgan's Hardware Store are all examples of:

Wholesalers can improve their competitive position by developing middlemen's brands.

ArvinMeritor is a company that manufactures parts for the motor vehicle industry. It once used 15,000 different suppliers around the world. In 2002, the company announced plans to reduce its number of global suppliers to 1,000 by 2010. As ArvinMeritor determines which suppliers can meet or exceed its list of predetermined performance requirements, _____ is likely to occur.

When marketing its product, the manufacturer of _____ would most likely use intensive distribution.

An exclusive-territory policy may be acceptable when:

How many times have you been listening to the radio and heard a commercial for some performer who will be appearing in or near your community? Quite often tickets for the event are only available through the Internet. This is an example of _____ distribution.

Which of the following offers the greatest potential for horizontal channel conflict?

Chargebacks often lead to:

ArvinMeritor is a company that manufactures parts for the motor vehicle industry. It once used 15,000 different suppliers around the world. In 2002, the company announced plans to reduce its number of global suppliers to 1,000 by 2010. The remaining suppliers should be able to quickly collaborate with ArvinMeritor to improve quality, reduce prices, and solve problems. ArvinMeritor is planning to create: