BrainTok
ENESIT

Sales and Distribution Channel Management: Why Middlemen Can Lower Prices

How products travel from factory to customer, who holds the power along the way, and what really wins a sale.

Sales and Distribution Channel Management · 50 questions

Try 3 questions

1. Five producers sell to five buyers. How many separate transactions are needed with one intermediary, compared with none?

  1. 10 instead of 25
  2. 5 instead of 25
  3. 25 instead of 10
Show the answer

Answer: 10 instead of 25

Without an intermediary each producer deals with each buyer (5 x 5 = 25); with one in the middle there are only 5 + 5 = 10 contacts, which cuts costs.

2. When a company 'cuts out the middleman,' what happens to the work the middleman used to do?

  1. Customers simply stop needing it
  2. Someone else must still perform it
  3. It vanishes along with its cost
Show the answer

Answer: Someone else must still perform it

Channel functions such as storage, transport, financing and selling cannot be eliminated, only shifted to the producer, the customer or a new party.

3. A farmer selling directly to shoppers at a weekly market is using what kind of channel?

  1. A two-level channel
  2. A zero-level channel
  3. A one-level channel
Show the answer

Answer: A zero-level channel

Channel levels count the intermediaries between producer and final customer; direct selling has none.

The whole quiz comes before your apps

BrainTok asks a few questions like these before the apps you choose open, so your screen time turns into learning. For iPhone.

Join the beta