Question 1

One reason manufacturers' sales branches handle over 25 percent of wholesale sales is that they are located in the best market areas.

Accepted Answer

A) True 
 B)False

Question 2

Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby and craft supplies. She bought the store after working there for 7 years. Carol has just been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber of Commerce. The most active chamber members in her group are described below: Walden's Leather is part of a regional chain of stores that sells leather goods-mostly men's and women's clothing-with the upscale Walden's brand name. Walden's primarily relies on its own stores where knowledgeable salespeople offer great service. Walden products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks display racks for paperback books and magazines. Most retailers welcome the service Audrey provides, in part because she does her own research to determine which paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of merchandise. The company used to concentrate its product mix on small appliances-but now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed a contract with Games Unlimited and follows strict rules covering her store's operations and the Games Unlimited marketing strategy. She pays that company a fee for promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty products to retailers and salons throughout the greater Centerville area. It owns the goods it sells to these retailer customers, and it provides all the wholesaling functions they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer name are linked by contracts that include basic operating procedures, storefront designs, and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding in the Centerville area. It earns a commission from each manufacturer on the products it sells for that manufacturer, but it does not take ownership of the equipment it sells nor does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years ago. After some success, the company moved into a nicer storefront, raised prices, and now operates in the middle of the market.
___________ would be classified as an agent wholesaler.

Accepted Answer

A)   Reddy and Sons
B)   Publisher's Helper
C)   Johnson's Health and Beauty Supplies
D)   Valu Grocer
E)   None of these businesses would be classified as an agent wholesaler.F) A) and B)
G) A) and C) A

Question 3

Large sales volume and efficient operation are usually very important for supermarkets, since net profits usually run 1 percent of sales or less.

Accepted Answer

A) True 
 B)False

Question 4

Department stores:

Accepted Answer

A)   usually aim at customers seeking convenience products.
B)   have accounted for a larger share of retail sales every year since 1950.
C)   have no trouble holding their own against mass-merchandisers.
D)   are organized into separate departments.
E)   All of these alternatives are true for department stores.F) B) and E)
G) All of the above

Question 5

Many types of retailers are now establishing a presence on the Internet.

Accepted Answer

A) True 
 B)False

Question 6

Automatic vending accounts for 15 percent of total U.S. retail sales.

Accepted Answer

A) True 
 B)False

Question 7

Mass-merchandisers have proved to be effective competitors in taking away department store customers.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is an economic need which helps explain why consumers choose a particular retailer?

Accepted Answer

A)   Prestige
B)   Status
C)   Comfort
D)   Value
E)   SafetyF) D) and E)
G) C) and D)

Question 9

In which of the following countries would retailers be most likely to sell products in small quantities, to small numbers of consumers?

Accepted Answer

A)   Austria
B)   Nepal
C)   South Korea
D)   Japan
E)   IrelandF) A) and B)
G) C) and E)

Question 10

A retailer's "Place" may include:

Accepted Answer

A)   a physical store and/or an online store.
B)   store size and layout.
C)   number of stores.
D)   store hours.
E)   All of these are included in a retailer's "Place."F) A) and D)
G) C) and D)

Question 11

A retailer's "Promotion" may include:

Accepted Answer

A)   publicity.
B)   demonstrations and displays.
C)   online videos and reviews.
D)   number of salespeople.
E)   All of these are included in a retailer's "Promotion."F) A) and D)
G) B) and E) E

Question 12

Which of the following is NOT a full-service merchant wholesaler?

Accepted Answer

A)   Broker
B)   Single-line wholesaler
C)   General-line wholesaler
D)   General merchandise wholesaler
E)   Specialty wholesalerF) None of the above
G) A) and B)

Question 13

Business firms that sell to retailers and other merchants, and/or to industrial, institutional, and commercial users-but which do not sell in large amounts to final consumers-are:

Accepted Answer

A)   retailers.
B)   collaborators.
C)   producers.
D)   wholesalers.
E)   intermediaries.F) B) and E)
G) B) and C)

Question 14

The main difference between merchant wholesalers and other wholesalers is that they:

Accepted Answer

A)   are more aggressive at selling than agent wholesalers.
B)   offer fewer wholesaling functions.
C)   have the lowest operating expenses as a percent of sales.
D)   own (take title to)  the products they handle.
E)   are willing to perform retailing functions also.F) All of the above
G) A) and E)

Question 15

Limited-function wholesalers provide all of the basic wholesaling functions, except that they do not take title to the products they sell.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements about agent wholesalers is FALSE?

Accepted Answer

A)   Agent wholesalers based in a foreign market can be helpful in working through government red tape because they know the local business customs.
B)   Export and import brokers bring together buyers and sellers from different countries.
C)   Manufacturers' agents can call on international customers at no cost to the producer until something sells.
D)   Export and import agents are basically selling agents who specialize in international trade.
E)   Agent wholesalers are common in international trade.F) C) and E)
G) A) and B) D

Question 17

Specialty shops:

Accepted Answer

A)   offer fewer services than the typical limited-line store.
B)   have trouble deciding what to carry because it's hard for them to get to know what their customers want.
C)   rely heavily on knowledgeable salesclerks.
D)   usually sell convenience products.
E)   None of these alternatives are correct for specialty shops.F) A) and D)
G) B) and D)

Question 18

A full-service wholesaler in Santa Fe takes title to the products it stocks-a full line of home repair products for independent hardware stores. This wholesaler is a:

Accepted Answer

A)   selling agent.
B)   broker.
C)   specialty wholesaler.
D)   rack jobber.
E)   single-line wholesaler.F) All of the above
G) A) and D)

Question 19

Rack jobbers

Accepted Answer

A)   specialize in hard-to-handle assortments of products that a retailer does not want to manage.
B)   own the products they sell but they do not actually handle, stock, or deliver them.
C)   promptly deliver perishable products that regular wholesalers prefer not to carry.
D)   sell out of catalogs that may be distributed widely to smaller industrial customers or retailers.
E)   are basically manufacturers' agents who specialize in international trade.F) C) and D)
G) A) and D)

Question 20

Of all service wholesalers, specialty wholesalers carry the narrowest range of products and offer the most service.

Accepted Answer

A) True 
 B)False

Exam 12: Retailers, Wholesalers, and Their Strategy Planning

One reason manufacturers' sales branches handle over 25 percent of wholesale sales is that they are located in the best market areas.

Correct Answer
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Correct Answer
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A

Large sales volume and efficient operation are usually very important for supermarkets, since net profits usually run 1 percent of sales or less.

Correct Answer
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Department stores:

Correct Answer
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Many types of retailers are now establishing a presence on the Internet.

Correct Answer
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Automatic vending accounts for 15 percent of total U.S. retail sales.

Correct Answer
verified

Mass-merchandisers have proved to be effective competitors in taking away department store customers.

Correct Answer
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Which of the following is an economic need which helps explain why consumers choose a particular retailer?

Correct Answer
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In which of the following countries would retailers be most likely to sell products in small quantities, to small numbers of consumers?

Correct Answer
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A retailer's "Place" may include:

Correct Answer
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A retailer's "Promotion" may include:

Correct Answer
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E

Which of the following is NOT a full-service merchant wholesaler?

Correct Answer
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Business firms that sell to retailers and other merchants, and/or to industrial, institutional, and commercial users-but which do not sell in large amounts to final consumers-are:

Correct Answer
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The main difference between merchant wholesalers and other wholesalers is that they:

Correct Answer
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Limited-function wholesalers provide all of the basic wholesaling functions, except that they do not take title to the products they sell.

Correct Answer
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Which of the following statements about agent wholesalers is FALSE?

Correct Answer
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D

Specialty shops:

Correct Answer
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A full-service wholesaler in Santa Fe takes title to the products it stocks-a full line of home repair products for independent hardware stores. This wholesaler is a:

Correct Answer
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Rack jobbers

Correct Answer
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Of all service wholesalers, specialty wholesalers carry the narrowest range of products and offer the most service.

Correct Answer
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Exam 12: Retailers, Wholesalers, and Their Strategy Planning

One reason manufacturers' sales branches handle over 25 percent of wholesale sales is that they are located in the best market areas.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA

Large sales volume and efficient operation are usually very important for supermarkets, since net profits usually run 1 percent of sales or less.

Correct AnswerverifiedShow Answer

Department stores:

Correct AnswerverifiedShow Answer

Many types of retailers are now establishing a presence on the Internet.

Correct AnswerverifiedShow Answer

Automatic vending accounts for 15 percent of total U.S. retail sales.

Correct AnswerverifiedShow Answer

Mass-merchandisers have proved to be effective competitors in taking away department store customers.

Correct AnswerverifiedShow Answer

Which of the following is an economic need which helps explain why consumers choose a particular retailer?

Correct AnswerverifiedShow Answer

In which of the following countries would retailers be most likely to sell products in small quantities, to small numbers of consumers?

Correct AnswerverifiedShow Answer

A retailer's "Place" may include:

Correct AnswerverifiedShow Answer

A retailer's "Promotion" may include:

Correct AnswerverifiedE

Which of the following is NOT a full-service merchant wholesaler?

Correct AnswerverifiedShow Answer

Business firms that sell to retailers and other merchants, and/or to industrial, institutional, and commercial users-but which do not sell in large amounts to final consumers-are:

Correct AnswerverifiedShow Answer

The main difference between merchant wholesalers and other wholesalers is that they:

Correct AnswerverifiedShow Answer

Limited-function wholesalers provide all of the basic wholesaling functions, except that they do not take title to the products they sell.

Correct AnswerverifiedShow Answer

Which of the following statements about agent wholesalers is FALSE?

Correct AnswerverifiedD

Specialty shops:

Correct AnswerverifiedShow Answer

A full-service wholesaler in Santa Fe takes title to the products it stocks-a full line of home repair products for independent hardware stores. This wholesaler is a:

Correct AnswerverifiedShow Answer

Rack jobbers

Correct AnswerverifiedShow Answer

Of all service wholesalers, specialty wholesalers carry the narrowest range of products and offer the most service.

Correct AnswerverifiedShow Answer

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A

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E

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D

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