Explain traditional channels of distribution


Response the below in a true or false:

1) You can eliminate middlemen from traditional channels of distribution.

True

False

2) Insurance companies, finance firms, and trucking companies are not formally included in the distribution channel.

True

False

3) A peanut farmer who sells his boiled and roasted peanuts to people who are attending the county fair is using direct distribution.

True

False

4) Ultimate consumers and business users are typically reached through similar distribution channels.

True

False

5) All services (because they are intangible) are sold through a direct distribution channel.

True

False

6) Multiple channels of distribution benefit both producers and middlemen.

True

False

7) Agent wholesaling middlemen do not take title to the products they distribute.

True

False

8) A full-service wholesaler will buy, create assortments, subdivide, and transport products for its customers.

True

False

9) Manufacturers of business goods such as newspaper printing presses, platforms for oil wells, and smelting furnaces would be likely to use a direct distribution channel.

True

False

10) Vertical conflict occurs when firms at one level of the channel argue with firms at another level.

True

False

11) The exchange of a collection of thirty Pokemon cards for the newest CD by Justin Timberlake is an example of barter.

True

False

12) Value is a basic regulator of the economic system because it influences the allocation of the factors of production.

True

False

13) The pricing goal of increasing sales volume is typically adopted to maintain the firm's profit levels while increasing its sales.

True

False

14) Status quo-oriented pricing goals are the most aggressive of all pricing objectives.

True

False

15) Cost-plus pricing is the most widely used of all pricing tools.

True

False

16) Pricing above the competition works only when the product is distinctive or when the seller has acquired prestige in its field.

True

False

17) Value pricing is a form of nonprice competition in which benefits are emphasized instead of price.

True

False

18) Market-skimming pricing is suitable when a large mass market exists for the new product, and the demand for the product is highly elastic.

True

False

19) Penetration pricing would be appropriate for a company introducing a new arthritis drug that was intended to capture at least 15 percent of the target market during its first 18 months of availability.

True

False

20) The Robinson-Patman Act prohibits all forms of price discrimination.

True

False

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