Marketing Channels | MCQ with Answer
What is the primary function of a marketing channel?
- A. Manufacturing products
- B. Making a product or service available for consumption
- C. Researching market needs
- D. Setting product prices
- Answer: B
Which of the following represents the earliest form of exchange before the discovery of money?
- A. Barter System
- B. Banking System
- C. Stock Market
- D. E-commerce
- Answer: A
In the context of marketing channels, what does a 'C&FA' stand for?
- A. Carrying and Forwarding Agent
- B. Channel and Franchise Agency
- C. Customer and Franchise Agent
- D. Consumer and Forwarding Authority
- Answer: A
Which type of distribution aims for product availability in as many outlets as possible?
- A. Selective Distribution
- B. Intensive Distribution
- C. Exclusive Distribution
- D. Indirect Distribution
- Answer: B
Which distribution strategy is most suitable for products that require high levels of customer interaction?
- A. Direct Distribution
- B. Intensive Distribution
- C. Selective Distribution
- D. Exclusive Distribution
- Answer: A
What is a core reason why marketing channels exist?
- A. To eliminate retail stores
- B. Producers cannot reach all consumers directly
- C. To centralize distribution in one location
- D. To reduce the number of product options available
- Answer: B
Which channel member typically operates with the highest margin?
- A. Retailers
- B. Distributors
- C. Agents
- D. Brokers
- Answer: A
A company using a "Producer – Customer Channel" is an example of which type of channel?
- A. Indirect Channel
- B. Electronic Channel
- C. Direct Channel
- D. Franchise Channel
- Answer: C
What is the role of a 'carrying and selling agent' (C&SA) in a marketing channel?
- A. To create a new market for products
- B. To buy and resell products at their own discretion
- C. To transport and sell goods on behalf of the company
- D. To manage customer relationships exclusively
- Answer: C
Which type of channel strategy is most common for FMCG products?
- A. Direct Channel
- B. Exclusive Distribution
- C. Intensive Distribution
- D. Selective Distribution
- Answer: C
What is the primary goal of selective distribution?
- A. To maximize market coverage
- B. To maintain high brand exclusivity
- C. To balance market coverage and brand control
- D. To reduce transportation costs
- Answer: C
Which intermediary is responsible for taking title to the goods and reselling them?
- A. Brokers
- B. Agents
- C. Wholesalers
- D. Facilitators
- Answer: C
Which of the following describes vertical integration in a marketing channel?
- A. A manufacturer acquiring a retailer
- B. A manufacturer acquiring a competitor
- C. A retailer starting a new brand
- D. A distributor expanding to other regions
- Answer: A
Which channel strategy involves only one intermediary that controls the entire distribution channel?
- A. Intensive Distribution
- B. Horizontal Marketing System
- C. Vertical Marketing System
- D. Multichannel Distribution
- Answer: C
In a dual distribution system, a company:
- A. Uses a single channel to distribute products
- B. Sells directly to consumers only
- C. Uses two or more channels to reach customers
- D. Relies exclusively on retailers
- Answer: C
What role do agents primarily play in a distribution channel?
- A. Buying products from producers
- B. Promoting products and negotiating sales
- C. Selling products directly to customers
- D. Stocking and warehousing goods
- Answer: B
Which marketing channel is most suited for high-value and complex industrial products?
- A. Retailer Channel
- B. Agent Channel
- C. Direct Channel
- D. Wholesaler Channel
- Answer: C
A horizontal marketing system is best described as:
- A. A channel that reaches customers directly
- B. Collaboration between two or more firms at the same channel level
- C. Distribution involving multiple channel levels
- D. A channel arrangement based solely on direct marketing
- Answer: B
Exclusive distribution is most commonly associated with:
- A. Low-cost consumer goods
- B. Perishable products
- C. Luxury goods and specialty products
- D. Packaged goods
- Answer: C
Which of the following is an example of a multichannel distribution system?
- A. Using only e-commerce for sales
- B. Selling products via both retail stores and online platforms
- C. Direct marketing only
- D. Selling products exclusively through wholesalers
- Answer: B
The term “drop shipping” refers to:
- A. Manufacturers directly shipping to customers
- B. Retailers stocking all items in their warehouses
- C. Intermediaries bypassing retailers
- D. Reduced pricing on large shipments
- Answer: A
In a supply chain, which function does a 'logistics provider' primarily perform?
- A. Manufacturing goods
- B. Warehousing and transporting goods
- C. Selling goods to final consumers
- D. Conducting market research
- Answer: B
Which channel strategy focuses on high product availability in selected stores?
- A. Exclusive Distribution
- B. Intensive Distribution
- C. Retail Distribution
- D. Selective Distribution
- Answer: D
Which type of intermediary typically works on commission and does not take title to the goods?
- A. Wholesaler
- B. Broker
- C. Retailer
- D. Distributor
- Answer: B
A conventional marketing channel differs from a vertical marketing system because:
- A. Each member operates independently in a conventional channel
- B. A vertical channel only uses direct sales
- C. Conventional channels involve contract-based collaboration
- D. Each member shares ownership in a conventional channel
- Answer: A
Which of the following best describes a “channel conflict”?
- A. Competition between products
- B. Disagreement between channel members
- C. A dispute over customer feedback
- D. Direct competition with new entrants
- Answer: B
Which of the following is true about wholesalers?
- A. They exclusively sell to end customers
- B. They buy products from producers to sell to retailers or other businesses
- C. They handle advertising for manufacturers
- D. They do not maintain inventory
- Answer: B
Franchising is an example of which type of marketing system?
- A. Vertical Marketing System
- B. Horizontal Marketing System
- C. Dual Distribution System
- D. Conventional Marketing System
- Answer: A
Which type of channel is commonly used for complex machinery sales?
- A. Retail Channel
- B. Broker Channel
- C. Direct Channel
- D. Wholesaler Channel
- Answer: C
A “pull strategy” in marketing channels primarily focuses on:
- A. Pushing the product to intermediaries
- B. Generating demand among consumers
- C. Setting up direct sales channels
- D. Reducing distribution costs
- Answer: B
Channel members in a supply chain add value by performing which of the following functions?
- A. Manufacturing products only
- B. Processing sales data only
- C. Transforming products and facilitating transactions
- D. Decreasing consumer choice
- Answer: C
Retailers in a distribution channel are primarily responsible for:
- A. Manufacturing products
- B. Distributing products to other retailers
- C. Selling goods directly to final consumers
- D. Conducting market analysis for suppliers
- Answer: C
Which strategy might a company use if it wants to ensure high-end product positioning through limited store availability?
- A. Intensive Distribution
- B. Exclusive Distribution
- C. Dual Distribution
- D. Digital-Only Distribution
- Answer: B
In which type of marketing channel do companies collaborate to reach customers through joint ventures?
- A. Horizontal Marketing System
- B. Vertical Marketing System
- C. Conventional Distribution System
- D. Indirect Channel
- Answer: A
Which factor is most likely to increase channel conflict?
- A. Clear communication among members
- B. Shared marketing goals
- C. Overlapping market territories
- D. Consistent pricing strategies
- Answer: C
Which type of distribution is best suited for convenience goods?
- A. Exclusive distribution
- B. Intensive distribution
- C. Selective distribution
- D. Franchising
- Answer: B
In a direct marketing channel, the manufacturer:
- A. Sells products through intermediaries
- B. Sells products directly to consumers
- C. Uses wholesalers exclusively
- D. Focuses on intensive distribution
- Answer: B
What is a major advantage of using intermediaries in a distribution channel?
- A. Directly reaching more customers
- B. Lower distribution costs
- C. Enhanced market reach and expertise
- D. Greater control over brand image
- Answer: C
Which of the following best describes a “channel intermediary”?
- A. An individual purchasing products directly
- B. An entity facilitating the distribution of goods
- C. A consumer buying in bulk
- D. A factory worker assembling goods
- Answer: B
When two or more channel members are in conflict over roles, goals, or rewards, it is called:
- A. Channel synergy
- B. Channel conflict
- C. Channel cooperation
- D. Channel alignment
- Answer: B
Which type of channel arrangement involves independent businesses at different levels of the supply chain joining together?
- A. Corporate VMS
- B. Administered VMS
- C. Contractual VMS
- D. Franchise system
- Answer: C
In a push strategy, a company directs its promotional efforts towards:
- A. Retail customers only
- B. Final consumers
- C. Channel members such as wholesalers and retailers
- D. Social media platforms exclusively
- Answer: C
A reverse distribution channel is designed to:
- A. Help products reach consumers faster
- B. Return unwanted or defective products to manufacturers
- C. Increase the number of intermediaries in a channel
- D. Enhance service levels in retail stores
- Answer: B
The primary benefit of a multichannel distribution system is:
- A. Better inventory management
- B. Higher exclusivity
- C. Broader market coverage
- D. Reduced channel conflict
- Answer: C
What is a potential drawback of exclusive distribution?
- A. Limited brand control
- B. Reduced product availability
- C. Lower product quality
- D. Increased market saturation
- Answer: B
Which of the following entities is primarily responsible for promoting and selling the manufacturer’s goods in a contractual VMS?
- A. Independent retailer
- B. Franchisee
- C. Wholesaler
- D. Direct sales team
- Answer: B
In selective distribution, the manufacturer:
- A. Sells through only one retailer
- B. Allows all retailers to sell their products
- C. Limits the number of intermediaries
- D. Sells exclusively online
- Answer: C
Horizontal channel conflict typically occurs between:
- A. Producers and wholesalers
- B. Different retailers at the same level
- C. Manufacturers and customers
- D. Wholesalers and consumers
- Answer: B
Which term describes the process of designing a supply chain that moves a product from production to consumption?
- A. Channel control
- B. Channel alignment
- C. Channel design
- D. Channel audit
- Answer: C
Retailers primarily add value by:
- A. Storing products
- B. Breaking bulk and providing customer service
- C. Manufacturing goods
- D. Providing raw materials
- Answer: B
Which of the following is a key feature of a vertical marketing system?
- A. Channel members act independently
- B. Channel members are linked by contract or ownership
- C. Intermediaries are eliminated
- D. Each channel level serves as an independent profit center
- Answer: B
The purpose of disintermediation is to:
- A. Add more intermediaries to the channel
- B. Eliminate intermediaries to reduce costs
- C. Increase reliance on physical stores
- D. Create new channel conflicts
- Answer: B
What is a primary function of a broker in the marketing channel?
- A. Taking title to goods
- B. Facilitating sales without taking title
- C. Providing after-sales service
- D. Warehousing goods
- Answer: B
When a retailer establishes its own private label brand, this is an example of:
- A. Vertical integration
- B. Horizontal integration
- C. Diversification
- D. Franchising
- Answer: A
Administered VMS typically works best when:
- A. A single channel member has strong influence
- B. There is little coordination between channel members
- C. Multiple channel members are weakly linked
- D. Control is shared equally
- Answer: A
Which type of distribution strategy focuses on limiting intermediaries to reduce competition and enhance brand exclusivity?
- A. Intensive distribution
- B. Selective distribution
- C. Exclusive distribution
- D. Wholesale distribution
- Answer: C
A channel conflict that occurs when one channel member bypasses another to sell directly to customers is known as:
- A. Horizontal conflict
- B. Vertical conflict
- C. Bypassing conflict
- D. Multichannel conflict
- Answer: B
Which term refers to a supply chain that includes suppliers, manufacturers, and intermediaries?
- A. Distribution chain
- B. Production chain
- C. Value chain
- D. Channel system
- Answer: C
Which channel strategy is best for products that require extensive customization?
- A. Intensive distribution
- B. Indirect distribution
- C. Direct distribution
- D. Contractual VMS
- Answer: C
A benefit of using wholesalers as intermediaries is:
- A. Reducing competition
- B. Allowing direct sales
- C. Facilitating bulk breaking
- D. Maintaining higher prices
- Answer: C
Which of the following types of conflict arises from disagreements between retailers in different regions?
- A. Horizontal channel conflict
- B. Vertical channel conflict
- C. Intertype conflict
- D. Multi-level conflict
- Answer: A
In the context of marketing channels, RFID technology is primarily used to:
- A. Improve inventory tracking
- B. Advertise products
- C. Manage customer relationships
- D. Reduce production costs
- Answer: A
Which of the following is a characteristic of a franchise channel system?
- A. Loose contractual relationships
- B. Higher risk for the franchisor
- C. Tight control and uniformity
- D. Limited market reach
- Answer: C
In which of the following does a retailer sell goods directly to consumers without a middleman?
- A. Retail distribution
- B. Direct-to-consumer (DTC) channel
- C. Wholesale distribution
- D. Intensive distribution
- Answer: B
Which term describes an arrangement in which multiple companies at the same level of a channel combine to maximize resources?
- A. Multichannel integration
- B. Channel synergy
- C. Horizontal marketing system
- D. Vertical marketing system
- Answer: C
Which type of retailer is known for selling a wide variety of goods in a single location at discount prices?
- A. Department store
- B. Discount retailer
- C. Specialty store
- D. Convenience store
- Answer: B
What is the primary goal of a pull strategy in marketing channels?
- A. To reduce channel costs
- B. To create customer demand that “pulls” products through the channel
- C. To incentivize wholesalers
- D. To minimize marketing costs
- Answer: B
When one company owns multiple stages of production or distribution within a channel, it is called:
- A. Horizontal integration
- B. Forward integration
- C. Backward integration
- D. Vertical integration
- Answer: D
Which of the following is an example of backward integration?
- A. A retailer opening its own stores
- B. A manufacturer acquiring its supplier
- C. A wholesaler becoming a retailer
- D. A distributor selling directly to consumers
- Answer: B
Drop shipping is most commonly used by:
- A. Wholesalers to reduce costs
- B. Manufacturers to expand market reach
- C. Online retailers to avoid inventory costs
- D. Franchise owners to grow stores
- Answer: C
Which term best describes the process of selling a product across multiple channels?
- A. Channel expansion
- B. Multichannel distribution
- C. Channel alignment
- D. Omni-channel distribution
- Answer: B
The purpose of just-in-time (JIT) inventory systems in a marketing channel is to:
- A. Increase inventory levels
- B. Reduce stockouts
- C. Minimize storage costs by delivering inventory as needed
- D. Simplify the production process
- Answer: C
Which entity within a channel is most likely to engage in bulk-breaking?
- A. Retailer
- B. Manufacturer
- C. Wholesaler
- D. Consumer
- Answer: C
When a single distributor is given exclusive rights to sell a product in a certain geographic area, it is an example of:
- A. Horizontal integration
- B. Exclusive distribution
- C. Intensive distribution
- D. Channel diversification
- Answer: B
Which of the following is an emerging trend in marketing channels focused on a seamless customer experience across all channels?
- A. Multi-channel marketing
- B. Omni-channel marketing
- C. Cross-channel marketing
- D. Channel diversification
- Answer: B
Forward integration occurs when:
- A. A company merges with a competitor
- B. A company acquires a retailer to distribute its products
- C. A company merges with its suppliers
- D. A wholesaler purchases a manufacturing plant
- Answer: B
Which marketing channel strategy involves reaching customers through indirect methods such as e-commerce and physical stores?
- A. Omni-channel strategy
- B. Direct distribution strategy
- C. Exclusive distribution strategy
- D. Intensive distribution strategy
- Answer: A
What is a key advantage of using an administered vertical marketing system (VMS)?
- A. Ownership of multiple channel levels
- B. Efficient control over all channel operations
- C. Improved collaboration due to strong market influence
- D. Independent channel members with no influence
- Answer: C
In marketing channels, trade promotions are primarily targeted at:
- A. Consumers
- B. Wholesalers and retailers
- C. Manufacturers
- D. Online audiences
- Answer: B
What type of retailer specializes in narrow product lines but with deep assortments?
- A. Discount store
- B. Convenience store
- C. Specialty store
- D. Department store
- Answer: C
What is a primary role of agents or brokers in a distribution channel?
- A. Taking ownership of the products
- B. Negotiating sales without owning the products
- C. Providing storage facilities
- D. Offering after-sales service
- Answer: B
A key purpose of channel alignment is to:
- A. Introduce new intermediaries
- B. Ensure effective and efficient collaboration among channel members
- C. Increase competition within the channel
- D. Reduce inventory costs only
- Answer: B
Which distribution intensity is commonly used for luxury brands to maintain exclusivity?
- A. Intensive distribution
- B. Selective distribution
- C. Exclusive distribution
- D. Multichannel distribution
- Answer: C
When a business chooses a few intermediaries in each market area, it is using:
- A. Exclusive distribution
- B. Selective distribution
- C. Intensive distribution
- D. Inclusive distribution
- Answer: B
A “drop shipper” is a type of wholesaler that:
- A. Holds no inventory but arranges delivery to customers
- B. Manufactures goods for retailers
- C. Stores large volumes of goods
- D. Directly sells to end consumers
- Answer: A
