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Chapter 11:
The Internet for Distribution
Review Questions
1. What is a distribution channel?
A distribution channel is a group of interdependent firms that work together to
transfer product and information from the supplier to the consumer. It is composed of
the following participants:
▪ Producers, manufacturers, or originators of the product or service;
2. What are the types of intermediaries in a distribution channel?
3. What are the three major functions of a distribution channel?
4. What is supply chain management (SCM) and why is it important?
The more inclusive definition of the supply chain is used to describe the emerging
5. Why are e-marketers concerned with the last mile problem?
6. What is disintermediation? Give an example.
Disintermediation describes the process of eliminating traditional intermediaries.
Eliminating an intermediary can potentially reduce costs since each intermediary
must add to the price of the product in order to profit. Taken to its extreme,
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7. What is an infomediary? Give an example.
8. What is multichannel marketing? Give an example. Omni-channel marketing?
Give examples.
Multichannel marketing is a business offering customers more than one way to buy
something. For example, a retail store that also offers the ability to purchase online
and sends out catalogs with an 800 number to order over the phone.
9. How do brokers and agents differ?
Brokers facilitate transactions between buyers and sellers without representing either
agents represent the buyer.
10. What types of distribution channel metrics are used in the B2C market?
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11. Name five ways to keep consumers from abandoning online shopping carts.
● Show inventory availability on the product page—don’t wait until the checkout
page.
● Make it obvious where to click next for a smooth checkout process.
12. Compare and contrast social commerce, m-commerce, and F-commerce.
Discussion Questions
13. The Zappos Story. Do you think it is viable for Zappos to move to m-commerce,
social commerce, and F-commerce? If yes, how could they do this? If no, why
not?
Student answers will vary, since this is an opinion-based question. That said, it
appears that Zappos could easily move into mobile commerce, social commerce, and
Facebook commerce. This could be accomplished by targeting existing users from
14. The Zappos Story. This company uses a direct marketing distribution model,
selling to customers directly. Review the functions channel intermediaries
perform and explain what extra tasks Zappos has undertaken by eliminating
intermediaries.
By eliminating wholesalers, Zappos has chosen to buy its shoes directly from
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15. How does the value of distribution channel functions change when they become
Internet based?
16. Do you agree with the more inclusive definition of the supply chain to include
the entire value chain? Support your position.
17. Although direct distribution often results in lower prices, does it have
disadvantages for buyers?
18. Each intermediary in the channel has to mark up a product’s price to make a
profit. Some retailers sell products for almost double the wholesale cost. What
would a retailer have to do to add enough value to justify such a markup?
19. How would you suggest e-marketers solve the last-mile problem?
The last mile problem is the added expense of delivering small quantities to
individual homes or businesses. It is much less expensive to send cases of product to
20. What is the future of e-commerce, in your opinion? Will it continue to increase?
Will it ever become larger in terms of sales than off-line retailing? Explain your
answer.
21. Which social commerce tactics are the best, from a user perspective? Explain.
22. What is your opinion of F-commerce? Do you think it is appropriate for
companies to sell on Facebook? Why or why not and what tactics are
appropriate, if any?
Student answers will vary, since this is an opinion-based. However, the class should
23. What digital content do you think will bring the most revenue online in 5 years?