Question 1

Manufacturers' agents:

Accepted Answer

A)   don't cost the producer anything until something sells.
B)   aren't very useful for introducing new products.
C)   usually perform storing and transporting functions.
D)   usually handle the competing lines of several manufacturers.
E)   All of these alternatives are correct for manufacturers' agents.F) B) and C)
G) A) and C)

Question 2

Specialty wholesalers usually sell a very narrow range of products and compete with other wholesalers who have a broader range of products by offering expert technical help and/or service to their customers.

Accepted Answer

A) True 
 B)False

Question 3

Compared to conventional retailers, which of the following types of retailers offer a wider product assortment but less service?

Accepted Answer

A)   Convenience stores.
B)   Supermarkets.
C)   Telephone order retailers.
D)   Department stores.
E)   Limited-line stores.F) C) and E)
G) None of the above

Question 4

_________ covers all of the activities involved in the sale of products to final consumers.

Accepted Answer

A)   Distributing
B)   Retailing
C)   Manufacturing
D)   Wholesaling
E)   MarketingF) A) and E)
G) C) and D)

Question 5

Retailer life cycles (from introduction to maturity)  seem to be:

Accepted Answer

A)   getting longer.
B)   getting shorter.
C)   staying about the same.
D)   changing erratically.
E)   none of these is a good answer.F) D) and E)
G) A) and E)

Question 6

The "wheel of retailing" theory fails to explain some major retailing developments, such as vending machines and convenience food stores, which did not enter the market with a low-price emphasis.

Accepted Answer

A) True 
 B)False

Question 7

Truck wholesalers may provide almost the same services as full service wholesalers, but they usually specialize in perishable products that regular wholesalers prefer not to carry.

Accepted Answer

A) True 
 B)False

Question 8

Regarding types of wholesalers, which of the following has the HIGHEST costs as a percent of sales?

Accepted Answer

A)   Manufacturers' sales branches (with stock) 
B)   Merchant wholesalers
C)   Brokers
D)   Manufacturers' agents
E)   Agent wholesalersF) A) and B)
G) A) and C)

Question 9

A selling agent takes over the whole marketing job of producers, not just the selling function.

Accepted Answer

A) True 
 B)False

Question 10

Less than 6 percent of all retail sales are made by smaller stores--those with sales of less than $1 million a year.

Accepted Answer

A) True 
 B)False

Question 11

In the United States, warehouse clubs such as Sam's and Costco serve business customers as:

Accepted Answer

A)   Rack jobbers.
B)   Cash-and-carry wholesalers.
C)   Truck wholesalers.
D)   Specialty wholesalers.
E)   Manufacturers' agents.F) All of the above
G) B) and C)

Question 12

"Supercenters" are very large stores that specialize in selling a big variety of infrequently purchased products that would otherwise be hard for consumers to find.

Accepted Answer

A) True 
 B)False

Question 13

"Scrambled merchandising" refers to:

Accepted Answer

A)   retailers shifting from one product-market to another (e.g., a food retailer shifting to clothing) .
B)   limited-line retailers carrying wide assortments.
C)   retailers carrying any product lines they can sell profitably.
D)   displays of impulse products in supermarkets.
E)   incompatible price and promotion policies.F) A) and D)
G) C) and E)

Question 14

Regarding the future of wholesalers, which of the following statements is TRUE?

Accepted Answer

A)   Most high-cost wholesalers will disappear in the near future.
B)   Modern wholesalers are seeing that vertical integration with producers provides their only assurance of long-run survival.
C)   Some small high-cost wholesalers will probably survive due to the specialized services they offer some market segments.
D)   Net profit margins in wholesaling have been increasing in recent years.
E)   All of these statements are TRUE.F) A) and D)
G) A) and C)

Question 15

Compared to conventional retailers, which of the following types of retailers added more convenient service while reducing product assortment?

Accepted Answer

A)   specialty shops
B)   category killers
C)   vending machines
D)   mass-merchandisers
E)   super warehousesF) A) and B)
G) C) and E)

Question 16

Retailers who follow a policy of "buy low and sell high" are practicing the "mass-merchandising concept."

Accepted Answer

A) True 
 B)False

Question 17

Internationally, door-to-door selling is growing in popularity and, in the U.S., it accounts for more than 15 percent of all retail sales.

Accepted Answer

A) True 
 B)False

Question 18

Cooperative chains:

Accepted Answer

A)   are sponsored by wholesalers to try to compete with corporate chains.
B)   are experiencing declining sales.
C)   are formed by independent retailers to run their own buying organizations and conduct joint promotion efforts.
D)   are consumer groups who run nonprofit buying associations.
E)   None of these alternatives is true for cooperative chains.F) A) and E)
G) A) and B)

Question 19

___________ stores are usually strong in customer services, including credit, merchandise return, delivery, and sales help.

Accepted Answer

A)   General
B)   Limited-line
C)   Department
D)   Specialty
E)   LuxuryF) None of the above
G) All of the above

Question 20

Which of the following is the best example of a conventional retailer?

Accepted Answer

A)   A limited-line store.
B)   A department store.
C)   A supermarket.
D)   A convenience (food)  store.
E)   None of these is a good example of a conventional retailer.F) None of the above
G) C) and D)

Exam 12: Retailers, Wholesalers, and Their Strategy Planning

The "wheel of retailing" theory fails to explain some major retailing developments, such as vending machines and convenience food stores, which did not enter the market with a low-price emphasis.

Correct AnswerverifiedShow Answer

___________ stores are usually strong in customer services, including credit, merchandise return, delivery, and sales help.

Correct AnswerverifiedShow Answer

Retailer life cycles (from introduction to maturity) seem to be:

Correct AnswerverifiedShow Answer

Compared to conventional retailers, which of the following types of retailers offer a wider product assortment but less service?

Correct AnswerverifiedShow Answer

Manufacturers' agents:

Correct AnswerverifiedShow Answer

"Supercenters" are very large stores that specialize in selling a big variety of infrequently purchased products that would otherwise be hard for consumers to find.

Correct AnswerverifiedShow Answer

Regarding the future of wholesalers, which of the following statements is TRUE?

Correct AnswerverifiedShow Answer

Compared to conventional retailers, which of the following types of retailers added more convenient service while reducing product assortment?

Correct AnswerverifiedShow Answer

"Scrambled merchandising" refers to:

Correct AnswerverifiedShow Answer

Less than 6 percent of all retail sales are made by smaller stores--those with sales of less than $1 million a year.

Correct AnswerverifiedShow Answer

Specialty wholesalers usually sell a very narrow range of products and compete with other wholesalers who have a broader range of products by offering expert technical help and/or service to their customers.

Correct AnswerverifiedShow Answer

Retailers who follow a policy of "buy low and sell high" are practicing the "mass-merchandising concept."

Correct AnswerverifiedShow Answer

Regarding types of wholesalers, which of the following has the HIGHEST costs as a percent of sales?

Correct AnswerverifiedShow Answer

Cooperative chains:

Correct AnswerverifiedShow Answer

_________ covers all of the activities involved in the sale of products to final consumers.

Correct AnswerverifiedShow Answer

Which of the following is the best example of a conventional retailer?

Correct AnswerverifiedShow Answer

Truck wholesalers may provide almost the same services as full service wholesalers, but they usually specialize in perishable products that regular wholesalers prefer not to carry.

Correct AnswerverifiedShow Answer

In the United States, warehouse clubs such as Sam's and Costco serve business customers as:

Correct AnswerverifiedShow Answer

A selling agent takes over the whole marketing job of producers, not just the selling function.

Correct AnswerverifiedShow Answer

Internationally, door-to-door selling is growing in popularity and, in the U.S., it accounts for more than 15 percent of all retail sales.

Correct AnswerverifiedShow Answer

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