1. In what ways do retailers add value to products?
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
2. What are the two categories of retail stores based on breadth of products offered, and what are the types of stores
in each category?
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
3. Compare and contrast department stores and discount stores.
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
4. What are superstores? How do they differ from supermarkets?
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
5. Identify and describe the three kinds of specialty stores.
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
6. What type of situation would provoke a conflict between department stores and manufacturers?
7. Why would any specific retail store, such as PetSmart, be considered a category killer?
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
8. What are the three types of nonstore retailing? Give examples of each.
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
9. What is a “party plan” with respect to nonstore retailing?
10. Discuss the advantages and disadvantages of catalog marketing.
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
11. What are the primary advantages and disadvantages of a franchise arrangement for a franchisee?
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
12. Why is a store’s location one of the most important strategic retailing decisions?
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
13. What is a store’s image, and how does it affect retailing strategy decisions?
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
14. What role does wholesaling play in the marketing channel? Is this role necessary?
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
15. Compare the services wholesalers provide to producers with the services they provide to retailers.
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
16. Discuss the role of merchant wholesalers. When is a producer most likely to use them?
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
17. Discuss some of the functions that full-service wholesalers provide. How do these differ from those that limited-
service wholesalers provide?
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
18. What are the wholesaling activities performed by selling agents and brokers?
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
19. What situations would benefit from using a selling agent?
20. Kate owns a refreshment-stand business at the community ballpark. ShegoestoawarehousestorelikeSam’sand
purchases snacks and canned soda that she will sell at her refreshment stand. Kate is considered a(n) _____.
a. wholesaler
b. broker
c. retailer
d. intermediary
e. agent
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
21. Walmart, Macy’s, Nordstrom, and Toys “R” Us are examples of _____.
a. manufacturers
b. merchant wholesalers
c. end-users
d. agents
e. retailers
22. Direct selling, direct marketing, and vending machines are all examples of _____.
a. producing
b. advertising
c. promoting
d. retailing
e. wholesaling
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
23. Retailing is best characterized as:
a. large organizations that carry wide and deep product mixes.
b. transactions in which a buyer intends to consume a product through personal, family, or household use.
c. arrangements whereby a supplier grants a dealer the right to sell its products.
d. the use of telephone, Internet, and nonpersonal media to communicate product and organizational information
to customers.
e. exchanges that take place only in a store or service establishment.
24. 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 wholesaler, and the vending machine company is a(n)
_____.
a. retailer
b. broker
c. wholesaler
d. agent
e. franchisee
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
25. A retailer is an organization that purchases products for the purpose of reselling them to _____.
a. other retail organizations.
b. the government.
c. the ultimate consumers.
d. the wholesalers.
e. nonprofit organizations.
26. By locating in the same general vicinity as other car dealerships, Hartfield Honda can
a. facilitate comparison shopping.
b. create form utility.
c. facilitate wholesale exchanges.
d. create possession utility.
e. create exchange utility.
Chapter 14 – Retailing, Direct Marketing, and Wholesaling