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Question 1

Intermediaries are most closely associated with the concept of:

a) Market targeting

b) Market segmentation

c) Channels of distribution

d) Marketing information systems

Question 2

Intermediaries typically perform all of the following functions, EXCEPT:

a) Breaking down bulk

b) Making goods locally available

c) Providing expert local market knowledge

d) Creating direct communication from the customer to manufacturer

Question 3

Which type of channel of distribution is most likely to be typical of specialised, highly variable product such as adventure holidays?

a) Distribution through franchised network

b) Direct sale from tour operator to consumer

c) Use of "High Street" travel agents

d) Sale through wholesaler

Question 4

A branded, high volume, low value consumer good is most likely to be sold through which of the following types of distribution channel?

a) Direct sale from the manufacturer to consumer

b) Sale through brokers

c) Sale through specialist retail outlets

d) Sale through many general retail outlets

Question 5

Which of the following statements is NOT true of franchisees?

a) They are always small owner managed businesses.

b) They generally agree to charge prices in accordance with the franchisor's guidelines.

c) They generally enter an agreement with a franchisor for a fixed period.

d) They create legal relationships between themselves and their customers.

Question 6

Which of the following services is LEAST likely to be franchised?

a) Industrialised services

b) Highly variable, customized, one-to-one services

c) Mass-market services

d) Low value services

Question 7

In general, as physical distribution systems develop, which of the following is most likely to be true?

a) Levels of stockholding increase more than proportionately

b) Goods travel longer overall distances

c) Goods travel shorter overall distances

d) The number of warehouses increases more than proportionately

Question 8

"Just-in-Time" systems of distribution are particularly dependent upon:

a) Low unit transport costs

b) Low unit warehousing costs

c) Information flow between channel members

d) Large numbers of suppliers

Question 9

Which of the following statements is generally true about the relationship between a franchisee and franchisor?

a) Franchisees are always small scale entrepreneurs, while, by contrast, franchisors are always rage corporations.

b) Franchising is completely irrelevant to the public sector, therefore it is not possible for the government to be a franchisor.

c) Franchisors are generally responsible for brand development and the maintenance of consistent output.

d) Compared to other forms of growth, franchising demands much more input of capital from the franchisor.

Question 10

Although not a conventional product, the UK National Lottery uses which type of distribution for the sale of its tickets?

a) Scatter distribution

b) Intensive distribution

c) Exclusive distribution

d) Selective distribution

Oxford University Press, Online Resource Centre, Chapter 10.

Chapter 10

Instructions