Question 1

Taylor works for a company that buys snacks such as chips, cookies, and candy in bulk from manufacturers. Taylor's company then repackages them and sells them to vending companies who have vending machines at government institutions. Taylor most likely works for a(an)  ___, while the vending machine company is a(an)  _____.

Accepted Answer

A)  Wholesaler; retailer
B)  Wholesaler; broker
C)  Broker; retailer
D)  Broker; agent
E)  Agent; retailer

Question 2

Which of the following is not a factor used to classify wholesalers?

Accepted Answer

A)  Whether the wholesaler is owned by the producer
B)  Whether the wholesaler takes title to the products it handles
C)  The range of services offered by the wholesaler
D)  The price range of the products carried by the wholesaler
E)  The breadth and depth of the product lines carried by the wholesaler

Question 3

Cigarette manufacturer Philip Morris uses the services of Universal Corporation, the world's largest buyer and processor of leaf tobacco, which provides financing for its customers. This means that Universal is a

Accepted Answer

A)  cash-and-carry wholesaler.
B)  general merchandise wholesaler.
C)  limited-service wholesaler.
D)  rack jobber.
E)  full-service wholesaler.

Question 4

Walmart has its own fleet of trucks and works directly with producers to take care of the ordering, delivery, and handling of goods. In addition, Walmart works directly with suppliers through its advanced system of inventory control and data processing. Walmart is

Accepted Answer

A)  able to eliminate many of the functions typically performed by wholesalers.
B)  performing many of the critical functions of wholesalers through its own system.
C)  successfully using wholesalers to run its venerable chain of discount stores.
D)  using information technology to eliminate the need to perform typical wholesale functions.
E)  vertically integrated in order to produce and distribute all products itself.

Question 5

An arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration is

Accepted Answer

A)  selling products on consignment.
B)  retailing.
C)  wholesaling.
D)  licensing.
E)  franchising.

Question 6

Compare the services wholesalers provide for producers with the services they provide to retailers.

Accepted Answer

The answer of Compare the services wholesalers provide for producers...

Question 7

Malcolm Lewis has come up with the idea of a system for picking up people's cars while they are at work, washing and waxing them, and returning them for a fee. Having been a big success in his home city, Malcolm plans to expand his operation into other cities. The service described here seems best suited to

Accepted Answer

A)  party-plan retailing.
B)  franchising.
C)  vending.
D)  corporate chain retailing.
E)  off-price retailing.

Question 8

What is a store's image, and how does it affect retailing strategy decisions?

Accepted Answer

The answer of What is a store's image, and how...

Question 9

The primary function of most wholesalers is to

Accepted Answer

A)  support the needs of the manufacturers and provide them with market information.
B)  provide for the unique needs of the individual retailers buying their merchandise.
C)  provide information system tracking of inventory for the ultimate consumer.
D)  perform physical distribution of products from manufacturers to retailers.
E)  develop and share database information about customers.

Question 10

Hickory Village Shopping Center has two department stores and some specialty and convenience stores. It serves a large geographic area and holds special events to stimulate consumer traffic. Hickory is a ____ shopping center.

Accepted Answer

A)  community
B)  regional
C)  nontraditional
D)  neighborhood
E)  power

Question 11

What is a potential disadvantage of direct selling?

Accepted Answer

A)  Commissions for salespeople are usually low.
B)  Some customers view direct selling in a negative light.
C)  Personal attention is lacking.
D)  Product demonstrations are difficult in this type of selling.
E)  Consumers must go out of their way.

Question 12

Martin owns and operates a wholesale hardware business that supplies small hardware parts to various manufacturers in the area. He takes title to the hardware and assumes all risks associated with ownership. Martin is a

Accepted Answer

A)  rack jobber.
B)  merchant wholesaler.
C)  wholesaler agent.
D)  drop shipper.
E)  sales branch.

Question 13

When a retailer advertises a product and makes it available for purchase through telephone or mail orders, the retailer is using

Accepted Answer

A)  direct selling.
B)  television home shopping.
C)  telemarketing.
D)  automatic vending.
E)  direct-response marketing.

Question 14

A shopping center containing a Macy's, Sears, and JC Penney's as well as dozens of specialty shops, restaurants, and entertainment is most likely a

Accepted Answer

A)  regional shopping center.
B)  neighborhood shopping center.
C)  community shopping center.
D)  complete business district.
E)  lifestyle shopping center.

Question 15

A narrow product mix with a deep product line would most likely be carried by

Accepted Answer

A)  mass merchandisers.
B)  supermarkets.
C)  discount stores.
D)  specialty retailers.
E)  warehouse showrooms.

Question 16

By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform all of the following physical distribution activities except

Accepted Answer

A)  inventory planning.
B)  transportation.
C)  materials handling.
D)  unit pricing.
E)  communication.

Question 17

Dawn is concerned that there are not enough avid quilters in Centerville to support her Quilts Unlimited store. Her business adviser suggests that she not limit her promotion to the Centerville population but also consider outshoppers. This approach is most likely to work if her store is located in a

Accepted Answer

A)  free-standing location.
B)  traditional business district.
C)  strip center.
D)  community shopping center.
E)  regional shopping center.

Question 18

Walmart, Macy's, Nordstrom's, and Toys "R" Us are examples of

Accepted Answer

A)  manufacturers.
B)  merchant wholesalers.
C)  end-users.
D)  agents.
E)  retailers.

Question 19

If a retailer needed help with store design and training sales personnel, it would most likely use the services of a

Accepted Answer

A)  full-service wholesaler.
B)  full-price wholesaler.
C)  rack jobber.
D)  cash-and-carry wholesaler.
E)  technical wholesaler.

Question 20

A(n)  ____ is a very large specialty store that competes on the basis of lower prices and enormous product availability.

Accepted Answer

A)  warehouse club
B)  off-price retailer
C)  category killer
D)  traditional specialty store
E)  super center

Exam 16: Retailing, Direct Marketing, and Wholesaling

Which of the following is not a factor used to classify wholesalers?

Correct Answer
verified

A(n) ____ is a very large specialty store that competes on the basis of lower prices and enormous product availability.

Correct Answer
verified

Walmart has its own fleet of trucks and works directly with producers to take care of the ordering, delivery, and handling of goods. In addition, Walmart works directly with suppliers through its advanced system of inventory control and data processing. Walmart is

Correct Answer
verified

Walmart, Macy's, Nordstrom's, and Toys "R" Us are examples of

Correct Answer
verified

What is a store's image, and how does it affect retailing strategy decisions?

Correct Answer
verified

By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform all of the following physical distribution activities except

Correct Answer
verified

The primary function of most wholesalers is to

Correct Answer
verified

Correct Answer
verified

Martin owns and operates a wholesale hardware business that supplies small hardware parts to various manufacturers in the area. He takes title to the hardware and assumes all risks associated with ownership. Martin is a

Correct Answer
verified

Cigarette manufacturer Philip Morris uses the services of Universal Corporation, the world's largest buyer and processor of leaf tobacco, which provides financing for its customers. This means that Universal is a

Correct Answer
verified

When a retailer advertises a product and makes it available for purchase through telephone or mail orders, the retailer is using

Correct Answer
verified

If a retailer needed help with store design and training sales personnel, it would most likely use the services of a

Correct Answer
verified

A shopping center containing a Macy's, Sears, and JC Penney's as well as dozens of specialty shops, restaurants, and entertainment is most likely a

Correct Answer
verified

Compare the services wholesalers provide for producers with the services they provide to retailers.

Correct Answer
verified

An arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration is

Correct Answer
verified

Hickory Village Shopping Center has two department stores and some specialty and convenience stores. It serves a large geographic area and holds special events to stimulate consumer traffic. Hickory is a ____ shopping center.

Correct Answer
verified

What is a potential disadvantage of direct selling?

Correct Answer
verified

A narrow product mix with a deep product line would most likely be carried by

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Exam 16: Retailing, Direct Marketing, and Wholesaling

Which of the following is not a factor used to classify wholesalers?

Correct AnswerverifiedShow Answer

A(n) ____ is a very large specialty store that competes on the basis of lower prices and enormous product availability.

Correct AnswerverifiedShow Answer

Walmart has its own fleet of trucks and works directly with producers to take care of the ordering, delivery, and handling of goods. In addition, Walmart works directly with suppliers through its advanced system of inventory control and data processing. Walmart is

Correct AnswerverifiedShow Answer

Walmart, Macy's, Nordstrom's, and Toys "R" Us are examples of

Correct AnswerverifiedShow Answer

What is a store's image, and how does it affect retailing strategy decisions?

Correct AnswerverifiedShow Answer

By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform all of the following physical distribution activities except

Correct AnswerverifiedShow Answer

The primary function of most wholesalers is to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Martin owns and operates a wholesale hardware business that supplies small hardware parts to various manufacturers in the area. He takes title to the hardware and assumes all risks associated with ownership. Martin is a

Correct AnswerverifiedShow Answer

Cigarette manufacturer Philip Morris uses the services of Universal Corporation, the world's largest buyer and processor of leaf tobacco, which provides financing for its customers. This means that Universal is a

Correct AnswerverifiedShow Answer

When a retailer advertises a product and makes it available for purchase through telephone or mail orders, the retailer is using

Correct AnswerverifiedShow Answer

If a retailer needed help with store design and training sales personnel, it would most likely use the services of a

Correct AnswerverifiedShow Answer

A shopping center containing a Macy's, Sears, and JC Penney's as well as dozens of specialty shops, restaurants, and entertainment is most likely a

Correct AnswerverifiedShow Answer

Compare the services wholesalers provide for producers with the services they provide to retailers.

Correct AnswerverifiedShow Answer

An arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration is

Correct AnswerverifiedShow Answer

Hickory Village Shopping Center has two department stores and some specialty and convenience stores. It serves a large geographic area and holds special events to stimulate consumer traffic. Hickory is a ____ shopping center.

Correct AnswerverifiedShow Answer

What is a potential disadvantage of direct selling?

Correct AnswerverifiedShow Answer

A narrow product mix with a deep product line would most likely be carried by

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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