Name: 
 

Chapter 11 - Managing Distribution Channels



Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
 

 1. 

Which of the following is NOT an added utility obtainable from distribution?
a.
Place utility.
c.
Scale utility.
b.
Ownership utility.
 

 2. 

What is meant by time utility?
a.
Making goods available at a time which suits the customer’s needs.
c.
Making goods in the shortest time possible.
b.
Using time effectively in dealing with distributors.
 

 3. 

Which of the following is NOT an influence on distribution channel design?
a.
Competitors.
c.
Pricing policy.
b.
Culture.
 

 4. 

What is an A-type customer?
a.
One who is loyal.
c.
One who is in the top 10% of customers, measured by the volume of goods bought.
b.
One who uses a specific distributor.
 

 5. 

Which of the following is an economic source of power?
a.
Control of resources.
c.
Reward power.
b.
Expert power.
 

 6. 

What is referent power?
a.
Power which derives from the ability to refer to a third party.
c.
Power which derives from references to agreements made previously.
b.
Power which derives from attempts to copy the leader of the group.
 

 7. 

What is co-marketing?
a.
Collaboration with competitors to secure distribution channels.
c.
Collaboration with customers to agree on distribution channels.
b.
Collaboration with members of the distribution chain to secure customers.
 

 8. 

What is a tying contract?
a.
One which prevents the distributor from carrying competing goods.
c.
One which prevents the distributor from selling outside a specific territory.
b.
One which requires the distributor to carry all the manufacturer’s range.
 

 9. 

What is cross-docking?
a.
Co-ordinating the arrival of suppliers’ and retailers’ trucks at the distribution centre.
c.
A failure to send supplies to the right docks.
b.
Ensuring that supplies are stored effectively at dockyards.
 

 10. 

What does ECR stand for?
a.
Effective cross-referencing.
c.
Effective customer relationships.
b.
Efficient customer response.
 



 
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