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Distribution Channels and Value Addition Quiz

#1

Which of the following is a primary function of distribution channels?

Facilitating the flow of goods from producers to consumers
Explanation

Distribution channels primarily facilitate the movement of goods from producers to consumers.

#2

What is the term used to describe intermediaries who sell products directly to consumers?

Retailers
Explanation

Retailers are intermediaries that sell products directly to consumers.

#3

Which of the following is NOT a common channel member in a distribution network?

Consumer
Explanation

Consumers are not considered channel members in a distribution network.

#4

Which of the following is NOT a function of distribution channels?

Manufacturing
Explanation

Manufacturing is not a function of distribution channels.

#5

What is the primary goal of a distribution channel?

To deliver products to the right place, at the right time, and in the right condition
Explanation

The primary goal of a distribution channel is to deliver products to the right place, at the right time, and in the right condition.

#6

Which of the following is NOT a common channel arrangement?

Reverse channel
Explanation

A reverse channel is not a common channel arrangement.

#7

What is value addition in the context of distribution channels?

Enhancing the product or service to make it more valuable to customers
Explanation

Value addition in distribution channels involves enhancing the product or service to increase its value to customers.

#8

What is the term for a distribution channel that involves multiple intermediaries, each passing the product along the chain until it reaches the consumer?

Indirect channel
Explanation

An indirect channel involves multiple intermediaries passing the product along the chain to reach the consumer.

#9

In distribution channel management, what does 'channel conflict' refer to?

Competition between different distribution channels
Explanation

Channel conflict refers to competition between different distribution channels.

#10

What is the primary goal of supply chain management?

To enhance overall customer satisfaction
Explanation

The primary goal of supply chain management is to enhance overall customer satisfaction.

#11

Which of the following is a strategy for improving value addition in distribution channels?

Implementing efficient logistics and inventory management systems
Explanation

Implementing efficient logistics and inventory management systems is a strategy for improving value addition in distribution channels.

#12

Which of the following is NOT a characteristic of an effective distribution channel?

High level of intermediation
Explanation

A high level of intermediation is not a characteristic of an effective distribution channel.

#13

What is meant by the term 'gray marketing' in distribution channels?

The unauthorized distribution of products outside official channels
Explanation

Gray marketing refers to the unauthorized distribution of products outside official channels.

#14

Which of the following is NOT a benefit of using intermediaries in distribution channels?

Enhanced control over the distribution process
Explanation

Enhanced control over the distribution process is not a benefit of using intermediaries in distribution channels.

#15

What is the primary purpose of 'channel differentiation'?

To create distinctions between different distribution channels based on factors such as pricing, services, and product assortment
Explanation

The primary purpose of channel differentiation is to create distinctions between different distribution channels based on factors such as pricing, services, and product assortment.

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