175. The primary purpose of a(n) _____ is to bring buyers and sellers together.
a. commission merchant
b. selling agent
c. manufacturers’ agent
d. intermediary
e. broker
176. Chandra has extensive contacts in the real estate business and brings together buyers and sellers. Although she
assumes no risks, she can offer specialized knowledge about real estate. Chandra is a _____.
a. commission merchant
b. selling agent
c. broker
d. specialty salesperson
e. sales branch agent
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
177. Intermediaries owned by manufacturers that sell products and provide support services to the manufacturers’ sales
forces are known as _____.
a. manufacturers’ agents
b. sales branches
c. selling agents
d. sales offices
e. commission merchants
178. The management at Kohler Inc., a manufacturer of sinks, tubs, and other plumbing products, thinks that there will
soon be a major growth in home remodeling due to rising interest rates. The management decides to use _____ in
several key cities to provide support services for its sales force in those areas, carry inventory, and offer credit and
other services to its retail plumbing customers.
a. sales agents
b. commission merchants
c. broker offices
d. sales branches
e. facilitating agencies
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
179. A manufacturer-owned operation that provides services usually associated with agents is a _____.
a. facilitating agency
b. wholesaler
c. sales office
d. sales branch
e. public warehouse
180. Veronica Montez works for Bicardi at a location away from the manufacturing plants. She provides wholesale
services to wholesale and retail customers, but her facility does not carry inventory. Veronica works at a _____.
a. sales branch
b. manufacturers’ agency
c. sales office
d. retail outlet
e. commission brokerage
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
Scenario 14.1
Use the following to answer the questions.
Landry Restaurants Inc. owns a number of different franchised restaurants, including the Rain Forest Cafe and
their recent addition, the T-Rex Cafe. Both the Rain Forest and T-Rex restaurants differentiate themselves from
their competitors by offering a unique dining experience. At the Rain Forest Cafe, you can dine under a ceiling of
lush tropical forest plants, while you are viewing the enormous aquarium with exotic fish. Periodically, the rain
forest explodes with the sound of waterfalls and birds. Giant stuffed monkeys, parrots, and other jungle creatures
are planted within the landscape. The Rain Forest Cafe also contains a gift shop, where customers can purchase t-
shirts, hats, and other items emblazoned with the Rain Forest logo. The newer T-Rex Cafe has a similar approach
to the uniqueness of the dining experience. The T-Rex Cafe offers guests a hands-on prehistoric experience,
including educational, interactive computer screens. Customers can also pan for precious gems and fossils in
Discovery Creek or feast on food from the Kitchen of Fire. The T-Rex Cafe also has a gift shop, where customers
can purchase items with the T-Rex logo or build their very own stuffed dinosaur, through “Build-a-Dino” by the
“Build-a-Bear” franchise.
181. Refer to Scenario 14.1. The unique dining experiences offered by the Rain Forest Cafe and T-Rex Cafe represent
the strategic issue of _____ addressed by the restaurants.
a. retail location
b. product mix
c. retail positioning
d. the wheel of retailing
e. customer segmentation
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
182. Refer to Scenario 14.1. The lush tropical plants and aquarium represent the _____ of the Rain Forest Cafe.
a. atmospherics
b. retail positioning
c. scrambled merchandising
d. location
e. category management
183. Refer to Scenario 14.1. The Rain Forest Cafe and T-Rex Cafe are usually located in tourist-dense areas or large
shopping malls. Since the restaurants’ primary focus is to obtain customers who are walking by, they would
definitely not want _____ as their locations.
a. strip centers
b. free-standing buildings
c. regional shopping centers
d. the Mall of America
e. a traditional business district
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
Scenario 14.2
Use the following to answer the questions.
Lands’ End offers clothing and accessories for all members of a typical household. For many years, the products
were sold only through catalogs. Later, they were available through the company on its Internet website. In the past
fewyears,Lands’EndhaspartneredwithSearstoofferselectedLands’EndproductsinsidetheSears’retail
stores. This move by Lands’ End has been criticized by some marketers because it was thought that the Lands’ End
productsweresuperiorinqualitytothosethatareavailableinSears’stores.Additionally,theproductsavailablein
Sears’storesincludecraftsmantools,lawncareequipment,andhouseholdappliances,whicharenotLands’End
types of product lines. This may create mixed messages about Lands’ End to prospective customers.
184. Refer to Scenario 14.2. When Lands’ End sells its products through a catalog or the Internet, it is most likely a
retailer selling through _____.
a. off-price retailers
b. mass merchandisers
c. direct marketing
d. retail outlets
e. category killers
185. Refer to Scenario 14.2. In comparison to Lands’ End, Sears has a product mix that is most likely
a. wider but not deeper.
b. deeper but not wider.
c. wider and deeper.
d. narrower and deeper.
e. narrower, but not deeper.
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
186. Refer to Scenario 14.2. The move to sell Land’s End products inside the Sears’ stores may lead to potential
problemswithcustomers’perceptionofLands’Endquality,inpartduetothefunctionalandpsychologicalpicturein
theconsumers’mindofSears’stores.Thispictureiscalledthe_____ofSears.
a. store location
b. atmospherics
c. product depth
d. store image
e. interior persona
187. Refer to Scenario 14.2. By locating in the Sears’ stores, Lands’ End can do all of the following, except:
a. facilitate comparison shopping.
b. facilitate wholesale exchanges.
c. create place utility.
d. create time utility.
e. facilitate consumer exchanges.
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
188. A retailer is an organization that purchases products for the purpose of reselling them to ultimate consumers.
a. True
b. False
189. Manufacturers can facilitate comparison shopping to allow customers to evaluate different options.
a. True
b. False
190. Wholesalers play a major role in creating time, place, and possession utility and, in some cases, form utility.
a. True
b. False
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
191. Department stores are distinctly service-oriented.
a. True
b. False
192. Convenience stores are self-service, general-merchandise outlets that regularly offer brand-name and private-brand
products at low prices.
a. True
b. False
193. Consumers make the majority of all their grocery purchases in supermarkets.
a. True
b. False
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
194. Convenience stores combine features of discount stores and supermarkets and generally carry about four times as
many items as supermarkets.
a. True
b. False
195. Despite their name, specialty retailers do not sell specialty items except when specialty goods complement the
overall product mix.
a. True
b. False
196. Categorykillersarestoresthatbuymanufacturers’seconds,overruns,returns,andoffseasonproductionrunsat
below-wholesale prices for resale to consumers at deep discounts
a. True
b. False
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
197. Retailers should look for compatibility with nearby retailers, because stores that complement one another draw
more customers with similar product needs for everyone.
a. True
b. False
198. Community shopping centers usually consist of several small convenience and specialty stores, such as small
grocery stores, gas stations, and fast-food restaurants.
a. True
b. False
199. Neighborhood shopping centers usually have the largest department stores, widest product mixes, and deepest
product lines of all shopping centers.
a. True
b. False
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
200. Lifestyle shopping centers are often located near affluent neighborhoods and may have fountains, benches, and
otheramenitiesthatencourage“casualbrowsing.”
a. True
b. False
201. Retail positioning involves identifying an unserved or underserved market segment.
a. True
b. False
202. Interior atmospheric elements include the appearance of the storefront, display windows, store entrances, and
degree of traffic congestion.
a. True
b. False
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
203. The advantages of catalog retailing include efficiency and convenience for customers because they do not have to
visit a store.
a. True
b. False
204. A franchiser supplies labor and capital, operates a franchised business, and agrees to abide by the provisions of a
franchise agreement.
a. True
b. False
205. Direct marketing enables a franchisee to start a business with limited capital and benefit from the business
experience of others.
a. True
b. False
Chapter 14 – Retailing, Direct Marketing, and Wholesaling
206. A retailer is an individual or organization that sells products that are bought for resale, making other products, or
general business operations.
a. True
b. False
207. Wholesalers help retailers select inventory.
a. True
b. False
Chapter 14 – Retailing, Direct Marketing, and Wholesaling