Module 13 - Distribution Channel Decisions

Question 1

1 In analysing physical distribution costs, one must be mindful of the direct trade-off between ____ costs and ____ costs.
A.inventory; order processing.
B.storage; order processing.
C.inventory; stockout.
D.transportation; stockout.
E.inventory; storage.

Answer 1

C

Question 2

2 What is the easiest way to enter a foreign market?
A.Sole ownership.
B.Franchising.
C.Exporting.
D.Overseas direct investment.
E.Contractual entry modes.

Answer 2

C

Question 3

3 The primary reason most marketers believe that a company-owned salesforce is more productive than an agent salesforce is that:
A.costs are lower for company salespeople than for other groups.
B.company salespeople can establish better relationships with customers than other channel members can.
C.the company can exercise more control over company salespeople.
D.it is easier and cheaper to train company salespeople than individuals working for other channel members.
E.salespeople feel more loyalty and therefore work harder for the company than do individuals who work for other channel members.

Answer 3

C

Question 4

4 The primary advantage of a corporate VMS is the:
A.high control over the system.
B.low capital investment.
C.flexibility of the system.
D.low risk to the firm.
E.high return on investment.

Answer 4

A

Question 5

5 A manufacturer-wholesaler franchise system would be exemplified by the ____ industry:
A.automotive.
B.petroleum.
C.fast-food.
D.soft-drink.
E.car-rental.

Answer 5

D

Question 6

6 When a manufacturer uses a pull strategy it tries to build ____ by focusing its promotional activities toward the ____.
A.brand loyalty; trade.
B.selective demand; trade.
C.wholesaler co-operation; trade.
D.selective demand; consumer.
E.None of the above.

Answer 6

D

Question 7

7 Channel conflicts are ____. They are usually ____ unless they ____.
A.avoidable; bad; motivate change.
B.avoidable; bad; increase profits.
C.unavoidable; good; become destructive.
D.unavoidable; good; become ongoing.
E.unavoidable; bad; increase profits

Answer 7

C

Question 8

8 Franchising is a ____ mode of market entry that gives the franchisee rights to the franchiser’s ____.
A.contractual; capital.
B.contractual; name.
C.non-contractual; capital.
D.non-contractual; name.
E.non-contractual; technology.

Answer 8

B

Question 9

9 When pursuing international distribution through foreign middlemen companies are likely to find:
A.similarities in the functions performed, service quality provided and margins demanded.
B.similarities in the functions performed and service quality provided, but not in the margins demand-ed.
C.similarities in the functions performed, but not in the service quality provided and margins demand-ed.
D.similarities in the degree of market coverage but not in the functions performed.
E.there are no categorical similarities.

Answer 9

C

Question 10

10 The international distribution of services such as movies and television programming are well suited to ____ while other services like tourism and legal assistance are more suited to ____.
A.export; direct investment.
B.export; import.
C.direct investment; franchising.
D.franchising; direct investment.
E.direct investment; export

Answer 10

A

Question 11

1 ____ sell to resellers and industrial or commercial customers, do not take title to the goods and usually concentrate solely on selling the product or service.
A. Merchant wholesalers.
B. Agent middlemen.
C. Retailers.
D. Jobbers.
E. Facilitating agencies.

Answer 11

B

Question 12

2 An appropriate strategy for low involvement consumer convenience goods is ____ distribution.
A. intensive
B. exclusive
C. preferred
D. effective
E. selective

Answer 12

A

Question 13

3 Sales agents:
A. represent only one manufacturer and are responsible for the full range of marketing activities.
B. are independent firms or individuals whose purpose is to bring buyers and sellers together for exchange.
C. work for several manufacturers and carry non-competitive, complementary merchandise for an exclusive territory.
D. perform a full range of wholesaling activities and also take over some retailing functions.
E. specialise in performing one or two functions.

Answer 13

A

Question 14

4 Exclusive distribution would probably be used to distribute:
A. Bold detergent.
B. Rolls-Royce Cars.
C. Timex Watches.
D. Polo sportswear.
E. Crest toothpaste.

Answer 14

B

Question 15

5 Which service requirement, that might be targeted to a member of the distribution channel, refers to obtaining full benefits over the life of the product?
A. Convenience.
B. Communication.
C. Order cycle time.
D. Post-sale services.
E. Dependability

Answer 15

D

Question 16

6 An example of the typical channel for a service is:
A. producer → user.
B. producer → retailer → user.
C. producer → agent → user.
D. producer → agent → retailer → user.
E. producer → retailer → agent → user.

Answer 16

A

Question 17

7 When a company measures a supermarket’s display of its product in terms of the percentage of available shelf space devoted to the product weighted by the importance of the store, it is measuring:
A. coverage.
B. effective P-O-P promotion.
C. in-store positioning.
D. marketing costs as a percentage of sales.
E. customer service.

Answer 17

C

Question 18

8 An exclusive distribution strategy would most likely be used to distribute:
A. Sony VCR equipment.
B. Honda motorcycles.
C. Levi’s jeans.
D. Pioneer compact disc players.
E. Ferrari automobiles.

Answer 18

E

Question 19

9 If Lever Bros. were to develop and market a new laundry detergent, it would be most likely to select a(n)____ distribution strategy.
A. retail.
B. intensive.
C. exclusive.
D. selective.
E. target market.

Answer 19

B

Question 20

10 The major disadvantage of using an exclusive distribution strategy from the viewpoint of the manufacturer is the:
A. risk involved in relying on a single retailer for success of the product’s distribution.
B. high cost of maintaining customer service in this strategy.
C. lack of market coverage.
D. lack of co-operation between retailer and manufacturer once the relationship has been established.
E. cost of promoting the product to the ultimate consumer.

Answer 20

A

Question 21

Define a marketing channel.

Answer 21

A marketing channel is the set of interdependent organizations involved in the process of making product or service available for consumption or use by consumers

Question 22

Define each of the institutions found in marketing channels.

Answer 22

Four main types

• merchant wholesalers – take title to the goods they handle
• agent middlemen – manufacturers representatives and brokers, do not take title to goods and are usually specialists e.g. manufacturers agents (carry several manufactures), sales agents (one manufacturer), brokers (independent), ehubs (flight websites)
• retailer – low margin/high turnover or high margin/low turnover, also jml and amazon.com
• facilitating agents – ad agencies, fee for service to help clients perform functions more effectively and efficiently

Question 23

Define the following:

a. Manufacturer’s agent.
b. Broker.

Answer 23

a. These usually work for several manufacturers, carry noncompetitive, complementary merchandise in an exclusive territory, and concentrate only on the selling function.
They are important where a manufacturer’s sales are not sufficient to support a company salesperson in a particular territory. Manufacturer’s reps are common in the industrial equipment, automotive supply, footwear, and toy industries.

b. These are independent firms whose purpose is to bring buyers and sellers together
for an exchange. Unlike agents, brokers usually have no continuing relationship with a particular buyer or seller. The producers of seasonal products such as fruits and
vegetables and the real estate industry use brokers extensively.

Question 24

What are the major types of retailer?

Answer 24

Retail stores can be categorised in many different ways, such as by the type of merchandise carried (supermarkets, drugstores), breadth of product assortments (speciality or department stores), pricing policies (discount or speciality stores), or nature of the business’s premises (e-tailers, mail-order retailers, vending-machine operators, traditional stores). One useful classification scheme groups stores according to their method of operation – low margin/high turnover versus high margin/low turnover.

Question 25

What are the major types of nonstore retailing?

Answer 25

These institutions fit the definition of a retailer, but we discuss them separately because they don’t have a fixed brick-and-mortar physical location and most do not enable customers to personally inspect the merchandise or take immediate posses- sion. This category includes direct selling (as in the case of door-to-door sales and telemarketing), mail-order catalogues, TV shopping, vending machines, and web- sites. There are several varieties of retail websites, including start-ups (Amazon.com, CDNow) that exist solely on the Web and do not have any physical stores, websites developed by large catalogue retailers (Lands’ End, L.L. Bean) to leverage their direct-delivery operations, and websites developed by established bricks-and-mortar retailers (like Target and Tesco) to leverage their brand names and customer service skills.

Question 26

Describe each of the five alternative consumer goods channels.

Answer 26

five channel designs are commonly used to distribute consumer goods and services

1. producer to consumer
2. producers to retailers to consumers – when retailers are large enough to act as warehouses or when goods are high value low volume, like watches
3. producer to wholesaler to retailer to consumer – low cost fmcg
4. producer to agent to wholesaler to retailer to consumer – manufacturer is too small to justify sales force
5. producer agents retailer consumer – small producers sell to retailers who are large enough to act as wholesalers

Question 27

Describe each of the four alternative industrial goods channels.

Answer 27

four alternative channel designs for industrial goods are

• producer to industrial buyer – more common for complex high value
• producer wholesaler buyer – good for standardized product and low value
• producer agent buyer - small manufacturers
• producer agent wholesaler buyer - small manufacturers

Question 28

Firms design channels to accomplish one or more objectives? What are they?

Answer 28

following objectives: (1) increase the availability of the good or service to potential customers, (2) satisfy customer requirements by providing high levels of service, (3) ensure promotional effort, (4) obtain timely and detailed market information, (5) increase cost-effectiveness, and (6) maintain flexibility.

Question 29

Describe the three basic strategies of retail coverage.

Answer 29

Question 30

Describe the various types of vertical marketing system

Answer 30

firms attempt to develop and manage integrated distribution systems in one of four ways

• a corporate vms – involving a vertical integrated system. Forward or backward integration can provide tight control but are expensive
• a contractual vms – wholesaler-sponsored voluntary chains, franchise systems such as
  
  • manufacturer retailer e.g. car dealers
  • manufacturer wholesaler e.g. coke
  • wholesaler retailers - supervalue
  • service sponsor retailer - mcdonalds
• an administered vms – one firm uses its economic position or expertise to provide inducement to other members for cooperation
• Relational vms – rely on economic rewards and often contractual agreements as well. – dynamic relationships – requires trust

Question 31

What are the major sources of channel power?

Answer 31

the sources of power include

• economic power – giving economic rewards
• coercive power – withholding economic rewards
• expert power
• referent power – the belief that benefits generated historically are likely to continue
• legitimate power flows from the belief that one channel member has the right to make certain decisions or demands and to expect compliance from other members – contractual or moral authority

Question 32

Under what conditions should a manufacturer use a pull strategy? A push strategy?

Answer 32

• when pursuing this strategy, a manufacturer focuses primarily on building selective demand and brand loyalty amongst customers thus triggering large sales volumes to be shared with channel partners
• used by large companies with plenty of money that can be invested in pull strategy when launching new products

Question 33

Discuss briefly the various purposes channel incentives are used for.

Answer 33

Question 34

Discuss the three major ways of entering a foreign country.

Answer 34

• exporting – simplest and least expensive, it can be direct or indirect
• contractual entry modes – are non equity arrangement that involve the transfer of technology and/or skills to another country e.g. licensing
• franchising grants the right to use the company’s name, trademarks and technology
• contract manufacturing
• overseas direct investment – joint ventures or sole ownership

Question 35

The set of interdependent organisations involved in the process of making a product or service available for consumption or use by consumers or industrial users is known as a(n):
A. retail market.
B. wholesale channel.
C. marketing channel.
D. intermediary stream.
E. distribution function.

Answer 35

C

Question 36

What percentage of the marketing costs associated with consumer goods can be attributed to the manufacturer and wholesale middlemen?
A. 20 per cent.
B. 33 per cent.
C. 40 per cent.
D. 50 per cent.
E. 66 per cent.

Answer 36

D

Question 37

The marketing expenses for industrial goods such as sheet steel account for about what percentage of the final selling price for this type of product?
A. 3 to 5 per cent.
B. 6 to 10 per cent.
C. 10 to 15 per cent.
D. 20 to 25 per cent.
E. 30 to 35 per cent.

Answer 37

C

Question 38

The idea that wholesalers can spread their costs across different manufacturers and, therefore, perform the selling function at a lower cost than can these manufacturers is known as:
A. scale efficiency.
B. functional efficiency.
C. transactional efficiency.
D. service efficiency.
E. agent efficiency

Answer 38

B

Question 39

The idea that retailers such as department stores make it possible for customers to purchase a wide variety of goods at a single source is known as:
A. service efficiency.
B. agent efficiency.
C. scale efficiency.
D. transactional efficiency.
E. functional efficiency

Answer 39

D

Question 40

____ specialise in the selling function and represent client manufacturers on a commission basis.
A. Merchant wholesalers
B. Agent middlemen
C. Retailers
D. Jobbers
E. Facilitating agencies

Answer 40

B

Question 41

The most common type of middleman found in an industry like OEM automotive parts, where manufacturers typically do not produce broad enough product lines to support a company salesperson in a particular territory, would be a:
A. broker.
B. sales agent.
C. full-service wholesaler.
D. limited-service wholesaler.
E. manufacturer’s agent.

Answer 41

E

Question 42

In the oil industry, the function of ____ is to bring buyers and sellers of oil together so that an exchange can take place.
A. sales agents.
B. manufacturers’ agents.
C. brokers.
D. jobbers.
E. intermediaries.

Answer 42

C

Question 43

Middlemen who sell goods directly to final consumers for their or their family’s personal use are known as:
A. wholesalers.
B. agent middlemen.
C. sales agents.
D. retailers.
E. full-service merchandisers.

Answer 43

D

Question 44

IBM would be most likely to use a ____ channel to distribute its mainframe computers.
A. producer → wholesaler → industrial buyer.
B. producer → agent → industrial buyer.
C. producer → wholesaler → wholesaler → industrial buyer.
D. producer → industrial buyer.
E. producer → agent → wholesaler → industrial buyer.

Answer 44

D

Question 45

Which of the following is NOT an objective of a distribution channel?
A. Obtaining market information.
B. Ensuring promotional effort.
C. Specifying who the end user is.
D. Maintaining flexibility.
E. Increasing cost effectiveness

Answer 45

C

Question 46

The most important objective of any distribution channel is to:
A. ensure that promotional effort is devoted to the product.
B. provide a high level of customer service.
C. make the product available.
D. attain feedback on market information.
E. provide cost effectiveness.

Answer 46

C

Question 47

The primary advantage of an intensive distribution strategy is that:
A. shipping and handling costs are lower than with other strategies.
B. there is better retailer support because more retailers are involved in the channel.
C. the company does not rely on a single channel member for success.
D. product availability is maximised.
E. promotional effort is reduced because more retailers carry the cost of promotion

Answer 47

D

Question 48

An appropriate strategy for shopping goods that customers buy infrequently and compare for differences in price and product features, such as television sets, is ____ distribution.
A. intensive.
B. exclusive.
C. preferred.
D. effective.
E. selective

Answer 48

E

Question 49

Selective distribution would probably be used to distribute:
A. Bold detergent.
B. Rolls-Royce cars.
C. Timex watches.
D. Polo sportswear.
E. Crest toothpaste

Answer 49

D

Question 50

For industrial goods and services what objective is most important for keeping customers satisfied?
A. Delivery dependability.
B. Order cycle time.
C. Product availability.
D. All of the above.
E. Only A and B above.

Answer 50

E

Question 51

The theory of transaction cost analysis (TCA) argues that when substantial transaction specific assets are involved:
A. the cost of using independent channel members is lower than the cost of managing a company salesforce.
B. the cost of using independent channel members is higher than the cost of managing a company salesforce.
C. the cost of using independent channel members is about the same as the cost of managing a company salesforce.
D. cost is not a consideration.
E. cost should be evaluated for each individual transaction

Answer 51

B

Question 52

Which of the following functions would a manager need to evaluate in order to determine a channel design?
A. Selling.
B. Storage.
C. Order processing.
D. Transportation.
E. All of the above.

Answer 52

E

Question 53

Channel power is best defined as:
A. A’s ability to get B to do what A wants.
B. A’s ability to deliver what B wants relative to B’s alternative sources of fulfilment.
C. A’s ability to reward B so B will do what A wants.
D. A’s ability to find what it wants independent of B’s ability to deliver it.
E. A’s ability to use C and bypass B.

Answer 53

B

Question 54

When a supermarket charges a manufacturer $20 000 to ‘rent’ shelf space for its new product in that supermarket, this is known as:
A. push money.
B. pull money.
C. a slotting allowance.
D. price lining.
E. odd pricing.

Answer 54

C

Question 55

One incentive used to increase personal selling effort in the channel is to: A. increase promotional allowances.
B. provide display racks and signs.
C. ensure exclusive territories.
D. institute push money.
E. provide more instructional materials

Answer 55

E

Question 56

When a manufacturer requires that an independent retailer sell only the manufacturer’s products it is called:
A. refusal to deal.
B. a tying contract.
C. exclusive dealing.
D. offering incentives to the retailer’s employees.
E. a promotional allowance.

Answer 56

C

Question 57

One example of direct overseas investment is:
A. joint venture.
B. countertrade.
C. franchising.
D. cooperative exporting.
E. coproduction.

Answer 57

A

Question 58

What are firms referring to when they reengineer their distribution processes in ways that increase customer service levels while simultaneously reducing costs?
A. Supply chain management.
B. Efficient consumer response.
C. Distribution management.
D. All of the above.
E. Only A and B above.

Answer 58

E

Question 59

The Hallmark example illustrates the problems facing a manufacturer when a new and potentially dominating channel emerges, thereby setting up a conflict with the company’s traditional channel. What could Hallmark have done to help its Hallmark card shops cope with this problem, given that the company had to sell its cards to the large drug, supermarket and general merchandise discount chains? Part of Hallmark’s problem may have been of its own making because of its failure to recognise the growing importance of mass merchandisers in selling its cards. What kind of a monitoring system would have alerted the company to the emerging problem? How could Hallmark have taken advantage of the early warning?

Answer 59

Hallmark actually has few options for salvaging relations with its stores. It could try to develop another line or brand of cards with high margins – but they would not have the same acceptance, given the power of the Hallmark brand name. Another possibility would be to develop ‘niche’ cards under the Hallmark name – a limited line for certain holidays as well as for anniversaries, birthdays, etc. These could be high-quality cards sold at a competitive price with good margins. Further, they would not be sold to the large chains. An early warning system would have discovered the actions of competitors in selling to discount chains and the decision by discount chains to sell items similar to cards, such as stationery as well as boxes of seasonal cards (e.g. Christmas cards). But even if Hallmark executives had received an early alert, there was no way the tide could be reversed. But with advance notice, the company would have had more time to develop its strategy as well as its action plans. Further, the company could have started an orderly downsizing.

Question 60

The president of a carpet manufacturer has asked you to look into the possibility of bypassing the firm’s wholesalers (who sell to carpet, furniture and department stores) and using company salespeople to sell directly to these stores. What caution would you voice on this matter and what information would you gather before making a recommendation?

Answer 60

The key issue is selling effort. There is a trade-off between control, which the company would have with its own salesforce, and costs, which would be higher with a salesforce. Salespeople are not necessarily more productive than wholesalers and are almost guaranteed to generate higher costs, so the company needs to study the benefits of additional control over the channel as against higher costs. Information which would be helpful in making a decision include: (1) costs; (2) estimated sales under new plan; (3) profit margins under current and proposed plans; (4) estimated overhead for new plan; and (5) commission proposal for new plan as well as current structure.

Question 61

Under what conditions is a manufacturer most likely to consider the use of multiple distribution channels for marketing a product? Describe an example of multiple channels involving a consumer good or service.

Answer 61

A firm is most likely to consider the use of multiple distribution channels when it is trying to reach several markets simultaneously and each market has unique charac- teristics which require different levels of performance from channel members. IBM has its own direct salesforce and also sells via retailers.

Question 62

A Swedish manufacturer of home entertainment equipment such as stereos and VCRs is interested in entering the US market. What kinds of institutions should it consider including in its distribution channel in the United States? Why?

Answer 62

Probably the best approach would be for the manufacturer to use an agent in the USA who is familiar with the industry. In this channel there would be the following parties: manufacturer–agent–wholesaler–retailer–consumer. The agent would be familiar with the industry and would know how most efficiently to get the product into the ultimate consumers’ hands.

Question 63

Calvin Klein jeans are selectively distributed through a limited number of fashionable department and speciality stores. Is this an appropriate channel design for such a product? Why or why not?

Answer 63

In the case of Calvin Klein jeans this is an appropriate channel design, since the jeans are considered shopping goods that customers buy infrequently and compare on price and product features. It is also appropriate since certain retailers such as mass-merchandisers (Kmart) do not fit the image set by Klein for their jeans.

Question 64

One of a number of trends affecting wholesalers in the United States, Europe and Japan is just-in-time. Describe what this term means and explain what forces are making it a more and more important business practice. For a wholesaler to adopt this practice, what must it be able to do?

Answer 64

Just-in-time has to do with inventory control. It programmes the delivery of a component by a supplier to a customer at literally the moment when the last component in stock has been used. The objective of a just-in-time system is zero inventory which would imply not only a unique physical logistics system, but products with zero quality defects. In order to be able to make such a system work, a wholesaler must be able to work closely with a client, develop and constantly update a decision-support system and stock error-free products.

Question 65

A few years ago, large manufacturers with well-known brands – General Foods and Procter & Gamble – held substantial power over even the largest retailers in their distribution channels. Today, large retailers such as Tesco have the power to demand more rewards and support from major manufacturers. What has caused this change in the balance of power? What are the bases (or sources) of retailers’ power over their suppliers?

Answer 65

Information and the technology to supply it quickly are the primary reasons for the increased power of retailers. Expert power is supplied by the ability of retailers to have access to up-to-the-minute information on sales of products.

Question 66

Why would an independent hardware store owner agree to become a member of a cooperative chain? What benefits would the store owner receive? How would the development and growth of the cooperative chain affect the balance of power in hardware distribution channels?

Answer 66

A cooperative chain gives the individual retailer greater power in dealing with suppliers, economies of scale in advertising, lower prices and special promotional materials. The benefits are: (1) ability to compete with national chains more effectively; (2) better, more profitable relationship with suppliers. The growth of a cooperative chain would shift power towards the retail end of the channel.

Question 67

A small and relatively unknown manufacturer of valves and fittings wants to induce large plumbing wholesalers to carry and promote its products. Which strategy should it pursue? Which specific incentives might it offer to wholesalers to gain their support?

Answer 67

A push strategy would be most appropriate in the situation described. Specifically, the company should: (1) offer higher margins on some of its products than its competitors; (2) provide sales training programmes to the sales staff of each of the wholesalers; (3) develop a cooperative advertising programme with the wholesaler to subsidise its advertising programme; (4) provide in-store display racks or demonstrations; and (5) enhance product return and replacement policies to make the product more attractive.

Question 68

A cereal manufacturer is considering using a pull strategy to gain extensive retail coverage for a new cereal brand targeted at health-conscious adults. Which characteristics and capabilities of the manufacturer can help determine its ability to successfully implement such a strategy?

Answer 68

If the cereal manufacturer is the market leader and its other products hold strong market shares, the manufacturer has a better opportunity to make a pull strategy work successfully. Specifically, the manufacturer should: (1) have substantial resources to devote to the product’s marketing programme; (2) be perceived to have a great deal of marketing expertise; and (3) have an extensive track record of past new-product successes.

Question 69

There is often conflict between manufacturers and the retailers who distribute their products. What are some major causes of such conflicts? What can a manufacturer do to minimise or resolve these conflicts?

Answer 69

Disagreements among channel members centre on incompatible goals (margins, services and costs), unclear rights and responsibilities, poor communications, inconsistent handling by manufacturers of problems (complaints) and mispercep- tions. Firms can help minimise channel conflict by recognising and resolving potential conflicts early, involving channel members in policy decisions, increasing interaction among all levels of personnel, focusing/emphasising common goals and using mediation and arbitration.

Question 70

In establishing and maintaining a channel system in the developing countries in Africa, what problems might the manufacturer of small electrical appliances expect to encounter? For each such problem, what can be done to solve it?

Answer 70

In many parts of Africa, the manufacturer would find no channels suitable for the sale and servicing of a line of small electrical appliances – or, at best, inadequate ones. If the latter, the manufacturer could try to augment the channel’s effort – e.g. by providing inventory items on a consignment basis, providing credit at the retail level and helping retailers to open new accounts with company salespersons. If no channels are available, the manufacturer can either set up its own channel or locate a wholesaler who is willing to work with the manufacturer in selling and servicing retail accounts.

Question 71

As a consultant to a small chain of supermarkets, you have been asked by the president to list, in outline form, what ethical subject areas the company should discuss internally before writing an ethical manifesto, which would be distributed to suppliers, staff and stockholders

Answer 71

A small chain of supermarkets should consider incorporating the following subjects in its ethical manifesto:

(a) Control over the level of slotting allowances so as not to inhibit the stocking of new products as well as the providing of adequate shelf facings.
(b) Consider locating one or more stores in or near poor neighbourhoods.
(c) Not advertising specially priced merchandise which does not have an adequate retail inventory.
(d) Not using the ‘to meet competition’ argument with a seller to obtain a special concession when such is not the case.
(e) Not discriminating against customers residing in poor neighbourhoods in times of product shortages.