MGT 103 P2 EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026
Marketing channel - Answers Individuals and firms involved in making a product or service available
for use or consumption by consumers or industrial users.
Three basic functions performed by intermediaries - Answers Transactional, logistical, and facilitating
functions.
Direct channel - Answers A channel where producers and ultimate consumers or industrial users deal
directly with each other.
Indirect channel - Answers A channel where intermediaries are inserted between the producer and
ultimate consumers or industrial users.
Why business channels are shorter than consumer channels - Answers Business users are fewer,
more geographically concentrated, and buy in larger quantities.
Corporate vertical marketing system - Answers Successive stages of production and distribution are
combined under single ownership.
Administered vertical marketing system - Answers Coordination is achieved by the size and influence
of one channel member rather than ownership.
Three questions when choosing a marketing channel/intermediaries - Answers Best target market
coverage, best satisfaction of buying requirements, and highest profitability.
Three degrees of distribution density - Answers Intensive, exclusive, selective.
Marketing channel vs. supply chain - Answers A marketing channel focuses on distribution to final
users; a supply chain also includes suppliers of raw materials and other upstream partners.
Three steps in choosing a supply chain - Answers Understand the customer, understand the supply
chain, harmonize the supply chain with marketing strategy.
Four customer service factors in logistics - Answers Time, dependability, communication,
convenience.
Six logistics cost factors - Answers Transportation, materials handling/warehousing, inventory,
stockout, order processing, returns handling.
Form utility - Answers Production or alteration of a product to meet customer needs.
Two measures of retailing's global economic impact - Answers Total annual sales and number of
employees working at large retailers.
Ownership advantage with centralized decision making and purchasing - Answers Corporate chain
ownership.
Examples of new forms of self-service retailers - Answers Warehouse clubs, gas stations,
supermarkets, airlines, convenience stores, fast-food restaurants, coffee shops.
Deep product line - Answers A large assortment within one product category, like pants in many
sizes.
Broad product line - Answers A wide variety of different product categories.
Successful catalog retailers send - Answers Specialty catalogs to niche markets.
How retailers increase interest in online retailing - Answers By adding interactive experiences,
customization, and comparison tools.
Where direct-selling retail sales are growing - Answers In global markets outside the U.S. and among
consumers who prefer one-on-one service and social shopping.
Two dimensions of the retail positioning matrix - Answers Breadth of product line and value added.
Original markup - Answers Difference between retailer cost and initial selling price.
Maintained markup - Answers Difference between final selling price and retailer cost; also called
gross margin.
Huge shopping strip mall with multiple anchor stores - Answers Power center.
Wheel of retailing: new retail form characteristics - Answers Low-status, low-margin, low-price outlet.
Stage before market share is usually fought out in retail life cycle - Answers Maturity stage.
Influence effect - Answers The complementary role that different communication and delivery
channels have on sales.
Merchant wholesalers - Answers Independently owned firms that take title to the merchandise they
handle and profit from selling it.
Agents - Answers Intermediaries who do not take title to merchandise and earn commissions or fees.
When producers assume wholesaling functions - Answers When no intermediaries exist, customers
are few and concentrated, or orders are large and require attention.
Marketing channel - Answers Individuals and firms involved in making a product or service available
for use or consumption by consumers or industrial users.
Three basic functions performed by intermediaries - Answers Transactional, logistical, and facilitating
functions.
Direct channel - Answers A channel where producers and ultimate consumers or industrial users deal
directly with each other.
Indirect channel - Answers A channel where intermediaries are inserted between the producer and
ultimate consumers or industrial users.
Why business channels are shorter than consumer channels - Answers Business users are fewer,
more geographically concentrated, and buy in larger quantities.
Corporate vertical marketing system - Answers Successive stages of production and distribution are
combined under single ownership.
Administered vertical marketing system - Answers Coordination is achieved by the size and influence
of one channel member rather than ownership.
Three questions when choosing a marketing channel/intermediaries - Answers Best target market
coverage, best satisfaction of buying requirements, and highest profitability.
Three degrees of distribution density - Answers Intensive, exclusive, selective.
Marketing channel vs. supply chain - Answers A marketing channel focuses on distribution to final
users; a supply chain also includes suppliers of raw materials and other upstream partners.
Three steps in choosing a supply chain - Answers Understand the customer, understand the supply
chain, harmonize the supply chain with marketing strategy.
Four customer service factors in logistics - Answers Time, dependability, communication,
convenience.
Six logistics cost factors - Answers Transportation, materials handling/warehousing, inventory,
stockout, order processing, returns handling.
Form utility - Answers Production or alteration of a product to meet customer needs.
Two measures of retailing's global economic impact - Answers Total annual sales and number of
employees working at large retailers.
Ownership advantage with centralized decision making and purchasing - Answers Corporate chain
ownership.
Examples of new forms of self-service retailers - Answers Warehouse clubs, gas stations,
supermarkets, airlines, convenience stores, fast-food restaurants, coffee shops.
Deep product line - Answers A large assortment within one product category, like pants in many
sizes.
Broad product line - Answers A wide variety of different product categories.
Successful catalog retailers send - Answers Specialty catalogs to niche markets.
How retailers increase interest in online retailing - Answers By adding interactive experiences,
customization, and comparison tools.
Where direct-selling retail sales are growing - Answers In global markets outside the U.S. and among
consumers who prefer one-on-one service and social shopping.
Two dimensions of the retail positioning matrix - Answers Breadth of product line and value added.
Original markup - Answers Difference between retailer cost and initial selling price.
Maintained markup - Answers Difference between final selling price and retailer cost; also called
gross margin.
Huge shopping strip mall with multiple anchor stores - Answers Power center.
Wheel of retailing: new retail form characteristics - Answers Low-status, low-margin, low-price outlet.
Stage before market share is usually fought out in retail life cycle - Answers Maturity stage.
Influence effect - Answers The complementary role that different communication and delivery
channels have on sales.
Merchant wholesalers - Answers Independently owned firms that take title to the merchandise they
handle and profit from selling it.
Agents - Answers Intermediaries who do not take title to merchandise and earn commissions or fees.
When producers assume wholesaling functions - Answers When no intermediaries exist, customers
are few and concentrated, or orders are large and require attention.
