Question

Intensive distribution is typically associated with low-cost ________.

		Convenience goods
		Durable goods
		Impulse goods
		High-technology goods
		Shopping goods

2 points   

It is said that customers do not buy goods or services: They buy ________.

		Offerings that render services that create value
		Products that come with some services
		Technology that is a service orientation
		Services that come in a variety of sizes and shapes
		All of these

2 points   

It is said that services are ________ rather than produced.

		Rationed
		Performed
		Separable
		Intangible
		All of these

Answer 1

The correct answer is "convinience goods".

Intensive distribution is nothing but but the distribution strategy that covers every possible intermediary from small vendor to big store. Convinience goods refers to the goods that can be purchased immediately. For example - chewing gum, newspaper, etc. These goods have high replacement rate, require no service, and are of very less price so intensive distribution is suitable for such goods.

The correct answer is "Offerings that render services that create value".

Value creation is nothing but the primary objective of any business to create value for customers, employees, investors etc. by using different business strategies. It is nothing but the action that increase the worth of the goods, services or the organization. Primary activities in value creation in Porter value chain include inbound Logistics, Operations, Outbound Logistics, Marketing and Sales, and services. The secondary activities include human resource management, technology, infrastructure and procurement. Companies focus on building brand value by using different strategies and business practices that cannot be gained through incremental approach.

The correct answer is "performed".

Service refers to the support and assistance provided to the prospect or existing customers in a highly professional and helpful way by the company in order achieve customer satisfaction and customer delight.. This include pre-sale service, service during sale, after sale service, complaint handling, resolving queries, etc. Service is produced and consumed simultaneously so service is being performed rather than produced.