Chapter 10: Distribution
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Questions and Answers

What defines a distribution channel?

  • A strategy for managing customer relationships.
  • A marketing strategy focusing solely on online platforms.
  • A centralized system for product manufacturing.
  • A group of interdependent firms transferring products and information from supplier to consumer. (correct)

    • Which model is utilized by firms to create websites, attract traffic, and sell advertising?

  • Infomediary Model
  • Online Retailer Model
  • Intermediary Model
  • Content Sponsorship Model (correct)

    • What type of model is characterized by organizations that aggregate and distribute information?

  • Content Sponsorship Model
  • Infomediary Model (correct)
  • Intermediary Models
  • Agent Models

    • How do buyers benefit from using brokers?

    <p>Convenience, speed of order execution, and decreased search time.</p> Signup and view all the answers

    Which option is an example of an online auction platform?

    <p>EBay</p> Signup and view all the answers

    What is the primary characteristic of virtual malls?

    <p>They operate as online entities mimicking offline shopping experiences.</p> Signup and view all the answers

    Which agent model represents a single firm in selling products?

    <p>Selling agents</p> Signup and view all the answers

    What is a key feature of online retailers distributing tangible products?

    <p>They use traditional channels for distribution.</p> Signup and view all the answers

    What describes the role of shopping agents?

    <p>They help buyers find the best prices across multiple retailers.</p> Signup and view all the answers

    What advantage do sellers gain from using brokers?

    <p>A wider pool of potential buyers.</p> Signup and view all the answers

    Which aspect is NOT a benefit for sellers using brokerage models?

    <p>Increased transaction complexity</p> Signup and view all the answers

    What characterizes the Infomediary Model in e-business?

    <p>Aggregation and distribution of consumer data</p> Signup and view all the answers

    Which of the following is a feature of online exchanges?

    <p>They allow buyers and sellers to negotiate and finalize deals.</p> Signup and view all the answers

    In which scenario is a shopping agent model most beneficial?

    <p>For consumers in search of the best price across multiple vendors.</p> Signup and view all the answers

    What differentiates virtual malls from traditional online retailers?

    <p>They host multiple merchants in a single platform.</p> Signup and view all the answers

    Which term refers to the e-business model where firms sell through a website but additionally offer advertising services?

    <p>Content Sponsorship Model</p> Signup and view all the answers

    What is the primary function of agent models that represent sellers in e-business?

    <p>To facilitate selling products for either single or multiple firms.</p> Signup and view all the answers

    Which of the following correctly describes the operation of online auctions?

    <p>They can operate across B2B, B2C, and C2C markets.</p> Signup and view all the answers

    What is a key disadvantage of using infomediary models for customers?

    <p>Potential privacy concerns regarding data sharing.</p> Signup and view all the answers

    Which factor is a major differentiator for direct distribution over traditional distribution channels?

    <p>Elimination of intermediaries in sales.</p> Signup and view all the answers

    What benefit do buyers gain from utilizing brokers in a distribution channel?

    <p>Convenience and speed of transaction processing</p> Signup and view all the answers

    Which model allows firms to generate revenue through targeted advertising by using consumer demographics?

    <p>Content Sponsorship Model</p> Signup and view all the answers

    What defines the function of a shopping agent in the e-business model?

    <p>It helps consumers compare prices and find deals</p> Signup and view all the answers

    In which scenario does an online exchange model operate most effectively?

    <p>Facilitating negotiations between multiple buyers and sellers</p> Signup and view all the answers

    Which statement best describes the role of virtual malls in the online retail environment?

    <p>They host multiple online merchants similar to an offline shopping mall.</p> Signup and view all the answers

    Study Notes

    Distribution Channel

    • A distribution channel is a network of companies that work together to move products from the supplier to the consumer.

    E-business Models

    • Content Sponsorship Model: Businesses generate revenue through advertising on their websites.

      • Examples: Google, Yahoo!
      • This model can be combined with others to create multiple revenue streams.

    • Infomediary Model: These businesses collect and distribute information.

      • Examples: Market Research firms
      • Some infomediaries offer incentives (like targeted ads) to consumers who share their information.

    • Intermediary Models:

      • Brokers: Connect buyers and sellers to facilitate transactions.

        • Benefits for Buyers: Convenience, fast order processing, lower prices, reduced search time.

        • Benefits for Sellers: Access to a large pool of buyers, lower customer acquisition costs.

        • Examples: Autobytel.com (vehicles), Alibaba.com (global marketplace).

      • Online Auctions: Operate in B2B, B2C and C2C markets (eBay).

      • Agent Models:

        • Selling agents: Represent one company to promote their products (Amazon).

        • Manufacturer's agents: Represent multiple companies (Expedia).

        • Intermediaries: Represent a group of manufacturers, retailers, and content providers (Edmunds.com – cars).

        • Virtual malls: Host multiple online merchants (like a physical shopping mall).

        • Shopping agents: Help buyers find the best deals (CNET shopper).

        • Reverse auctions: Allow buyers to set bids (eBay).

        • Buyer Cooperatives: A group of buyers negotiating with sellers to secure better deals.

    • Online Retailer:

      • Tangible products: Distributed through traditional channels combined with online platforms.

      • Digital products: Distributed directly through the internet.

      • Direct distribution: Manufacturers sell directly to consumers (B2B and B2C) without intermediaries.

    Distribution Channels

    • Interdependent firms that transfer products/services and information from supplier to consumer.

    Online Channel Members (E-business model)

    • Content Sponsorship Model:
      • Firms create websites, attract traffic, and sell advertising.
      • Examples include Google and Yahoo!
      • Often used in combination with other models to generate multiple revenue streams.
    • Infomediary Model:
      • Aggregates and distributes information.
      • Examples include market research firms.
    • Intermediary Models:
      • Brokers:
        • Create a market where buyers and sellers negotiate and complete transactions.
        • Benefits for buyers: convenience, speed of order execution, low prices, decreased search time, and saved effort.
        • Benefits for sellers: creation of a pool of buyers, reduced customer acquisition costs, and lowered transaction costs.
        • Examples include Autobytel.com (vehicles) and Alibaba.com (global marketplace).
      • Online Auctions:
        • Available in the B2B, B2C, and C2C markets.
      • Agent Models:
        • Representing Sellers:
          • Selling Agents: Represent a single firm, helping them sell products (e.g., Amazon).
          • Manufacturer's Agents: Represent multiple sellers (e.g., Expedia).
          • Intermediaries: Represent a group of manufacturers, online retailers, and content providers (e.g., Edmunds.com for cars).
          • Virtual Malls: Host multiple online merchants (similar to offline shopping malls).
        • Representing Buyers:
          • Shopping Agents: Help buyers find products (e.g., CNET Shopper).
          • Reverse Auctions: Seller bids on buyer's requests (e.g., eBay).
          • Buyer Cooperatives: Groups of buyers negotiate with sellers.
    • Online Retailer:
      • Tangible Products: Distributed through traditional channels.
      • Digital Products: The internet is the medium for distribution.
      • Direct Distribution: Manufacturer sells directly to B2B and B2C markets.

    Distribution Channel

    • A distribution channel is a network of interconnected companies responsible for moving products and information from the supplier to the consumer.

    E-business Models

    • Content Sponsorship Model: Firms build websites, attract visitors, and sell advertising space. Examples include Google and Yahoo!
    • Infomediary Model: Online organizations that gather and distribute information, often market research firms. Consumers are compensated for sharing personal data and targeted advertising.
    • Intermediary Models:
      • Brokers: Facilitate transactions between buyers and sellers. Benefits include convenience, speed, lower prices, and reduced search time.
      • Online Exchanges: Platforms for buyers and sellers to interact, examples include Autobytel.com and Alibaba.com.
      • Online Auctions: Available between businesses, businesses and consumers, and consumers.
      • Agent Models:
        • Selling agents: Represent a single firm to help them sell products, like Amazon.
        • Manufacturer's agents: Represent multiple sellers, such as Expedia.
        • Intermediaries: Represent a group of manufacturers, retailers, and content providers, such as Edmunds.com.
        • Virtual malls: Host multiple online merchants, similar to physical malls.
        • Shopping agents: Help buyers find products, like CNET shopper.
        • Reverse auctions: Buyers submit bids for products and services, such as EBay.
        • Buyer Cooperatives: Groups of buyers negotiate with sellers for better prices.
    • Online Retailer:
      • Tangible products: Distributed through traditional channels.
      • Digital products: The Internet serves as the distribution medium.
      • Direct distribution: Manufactures sell directly to businesses or consumers.

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    Description

    This quiz explores the various models of e-business, including content sponsorship, infomediary, and intermediary models. It also highlights the role of distribution channels in moving products from suppliers to consumers. Test your knowledge on these concepts and their practical applications.

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