MGT 103 - Chapters 15-16, 20 Exam
Questions and Answers with Verified
Solutions | Latest Updated 2026
Marketing Channel of Distribution Which consists of individuals and firms
involved in
the process of making a product or service
available for use or consumption by -
consumers or
industrial users.
Middleman Any intermediary between the
manufacturer and
end-user market
Agent (Broker) Any intermediary with legal authority to act
on
behalf of the manufacturer
Wholesaler An intermediary who sells to other
intermediaries,
usually to retailers; term usually applies to
consumer markets
Retailer An intermediary who sells to consumers
,Distributor Intermediaries who perform a variety of
distribution functions, including selling,
maintaining
inventories, extending credit, and so on; a
more
common term in business markets but may
also be
used to refer to wholesalers
Dealer A more imprecise term than distributor that
can
mean the same as distributor, retailer,
wholesaler,
and so forth
Transactional Function - Buying: Purchasing products for resale or
as an
agent for supply of a product
- Selling: Contacting potential customers,
promoting products, and seeking orders
- Risk taking: Assuming business risks in
the
ownership of inventory that can become
obsolete
or deteriorate
, Logistical Function - Assorting: Creating product assortments
from
several sources to serve customers
- Storing: Assembling and protecting
products at a
convenient location to offer better
customer
service
- Sorting: Purchasing in large quantities
and
breaking into smaller amounts desired by
customers
- Transporting: Physically moving a
product to
customer
Facilitating Function - Financing: Extending credit to customers
- Grading: Inspecting, testing, or judging
products
and assigning them quality grades
- Marketing information and research:
Providing
information to customers and suppliers,
including
competitive conditions and trends
Direct channel Producer and the ultimate consumers deal
directly
with each other
Questions and Answers with Verified
Solutions | Latest Updated 2026
Marketing Channel of Distribution Which consists of individuals and firms
involved in
the process of making a product or service
available for use or consumption by -
consumers or
industrial users.
Middleman Any intermediary between the
manufacturer and
end-user market
Agent (Broker) Any intermediary with legal authority to act
on
behalf of the manufacturer
Wholesaler An intermediary who sells to other
intermediaries,
usually to retailers; term usually applies to
consumer markets
Retailer An intermediary who sells to consumers
,Distributor Intermediaries who perform a variety of
distribution functions, including selling,
maintaining
inventories, extending credit, and so on; a
more
common term in business markets but may
also be
used to refer to wholesalers
Dealer A more imprecise term than distributor that
can
mean the same as distributor, retailer,
wholesaler,
and so forth
Transactional Function - Buying: Purchasing products for resale or
as an
agent for supply of a product
- Selling: Contacting potential customers,
promoting products, and seeking orders
- Risk taking: Assuming business risks in
the
ownership of inventory that can become
obsolete
or deteriorate
, Logistical Function - Assorting: Creating product assortments
from
several sources to serve customers
- Storing: Assembling and protecting
products at a
convenient location to offer better
customer
service
- Sorting: Purchasing in large quantities
and
breaking into smaller amounts desired by
customers
- Transporting: Physically moving a
product to
customer
Facilitating Function - Financing: Extending credit to customers
- Grading: Inspecting, testing, or judging
products
and assigning them quality grades
- Marketing information and research:
Providing
information to customers and suppliers,
including
competitive conditions and trends
Direct channel Producer and the ultimate consumers deal
directly
with each other
